Public Investments in African Agriculture COUNTRY CAADP IMPLEMENTATION: Public Investments in African Agriculture Martin Bwalya NEPAD Agency

High and sustainable Agriculture Performance Food Security and Income Generation (Poverty Alleviation) Wealth creation and support to industrialization Socio-economic growth and improved standard of living and clean environment Organizational development and Institutional reforms Target goal of 6% annual growth rate in agriculture productivity Partnerships and coalitions and collective responsibility Capacity development and alignment/harnes sing Policy reforms and policy review structures Knowledge; analysis and evidence based planning 10% Public Expenditure allocation to Agriculture

CAADP: MAIN PRINCIPLES AND TARGETS Country-led Comprehensive - cross-sector/ cross-government Multi-stakeholder engagement - CSOs, Private sector, Govt, Farmers, DPs Evidence-based planning Peer review, mutual accountability and M&E Regional complementarities

CAADP: MAIN PRINCIPLES AND TARGETS Principle of agriculture led growth as a main strategy to eradicate extreme poverty and hunger (MDG1) Pursuit of 6% annual average growth for sector at the national level Allocation of at least 10% of national budgets to the agriculture sector Exploitation of regional complementarities and cooperation to boost growth Application of the principles of policy efficiency, dialogue, peer review, and accountability at all levels Application of the principle of inclusiveness

Post Compact Roadmap Compact Signing Detailed Investment plan formulation Technical Review/Evaluation undertaking (due diligence process)  Details on the general country specific strategy and roadmap discussed, agreed and annexed to the Compact  Specifying what actions, how and by whom, plus timeline for investment plan preparation and review and high level business meeting date Implementation readiness confirmed and funding levels and modalities agreed Government–led negotiations on financing and financing plan, and implementation arrangements Submission of investment plan to RECs and CAADP Secretariat Managed and implemented by Gov and local DWG; coordinated by RECs Participation of key stakeholders, including, farmers organizations -private sector institutions, CSO, etc… Review by AUC/NEPAD, RECs, PLIs, IFPRI, ReSAKSS, FAO Investment Center, independent consultants, where required Circulation of investment plans and review report Business Meeting to validate and finance investment plans Further work on resource mobilization Programmes with finance committed Non-financed programmes

Countries actively engaging in CAADP July 2010

RECCountries that have signed CompactsDates when Compacts signed Countries whose National Agriculture and Food Security Investment Plans have been developed and Reviewed COMESA 1.Burundi August Ethiopia September 2009Reviewed 1.Malawi 19 th April 2010Reviewed 1.Rwanda March 2007Reviewed 1.Uganda March 2010Reviewed 1.Kenya July 2010Reviewed ECOWAS 1.Burkina Faso 22 nd July 2010To be reviewed 17-25/10 1.Gambia October 2009Reviewed 1.Ghana October 2009Reviewed 1.Benin October 2009Reviewed 1.Cape Verde December 2009Reviewed 1.Guinea 6-7 April 2010Reviewed 1.Liberia 5-6 October 2009Reviewed 1.Mali October 2009Reviewed 1.Niger September 2009Reviewed 1.Nigeria October 2009Reviewed 1.Togo July 2009Reviewed 1.Seirra Leone September 2009Reviewed 1.Senegal 9-10 February 2010Reviewed 1.Ivory Coast th July 2010 SAD C 1.Swaziland 3-4 March Tanzania6-8 July 2010November Table 1: Countries with compacts /Investment Plans

Overview of the investment areas and budget Financing Country CAADP Investment Plan Implementation: STATUS REPORTS (Source: NPCA Website as at 12 April 2010) COUNTRYPriority Investment Areas Total Budget ( ) US$ Budget Sources (US$) GovtGapPvt SectorDevpt Partners The Gambia Improvement of water management 63,044,0006,304,40056,739,600 Improved management Fishery, Forestry,Wildlife 15,633,6001,563,36014,070,240 Development of agricultural chains and market promotion 106,130,00010,613,00095,517,000 Prevention, Management of Food Crisis & Natural Disasters 40,458,0004,045,80036,412,200 Sustainable Farm Management 22,230,0002,223,00020,007,000 Institutional capacity building for implementation 14,275,8351,427,58412,848,252 Totals 261,771,43526,177,144235,594,292 Ghana Food Security and Emergency Preparedness 2,374,300,000 Promoting commodity development 414,600,000 Increased competitiveness markets integration 96,900,000 Sustainable management of land and water 24,700,000 Science and technology applied in food and agriculture 92,200,000 Enhanced institutional coordination 106,700,000 Totals 3,109,400,000 Liberia Land and water management 35,000,000 Food and Nutrition security 60,000,000 Competitive value chain and market linkage 115,000,000 Institiutinal Development 67,500,000 Totals 277,500,000

Share of countries meeting the 10% target In 2003, only 5.9% of African countries were spending at least 10% of their total budget allocations on agriculture This figure increased to 15.2% in 2007 and to 35.7% in 2008 Sources: Based on ReSAKSS data collected from various national government sources and IMF There are 2 components to MDG1: hunger and poverty Great progress has been made in many countries that are meeting one or the other, but only one – Ghana – is currently meeting both Burkina Faso Cameroon C. African Rep. Egypt Ethiopia Guinea Kenya Lesotho Mali Senegal Swaziland Tanzania Countries on track towards halving poverty by 2015 Countries on track towards halving hunger by 2015 Countries on track towards achieving MDG1 Algeria Angola Benin Botswana Burundi Gambia Guinea Bissau Mauritania Namibia Sao Tome & Principe Ghana

Fact Fact: Agriculture = providing for best returns on Investments – both in (i) Profits and (ii) impact Highest potential to directly translate into incomes for poorer sections of community Found on Africa’s own strength – natural resource Africa = raise public expenditure into agriculture to at l0% annually Toward Enhancing Public Investments in Agriculture Challenges/Opportunities:  Population growth / Urbanization  Climate change  Political Stability and Government inclusiveness

Toward Enhancing Public Investments in Agriculture  Triggering the demand side  Investment in base infrastructure and services  Off-farm / industrialization Investment (Storage, Processing, Industrial use, etc…)  Support to regional and local trade (infrastructure, information, etc…)  Align to /complement Public Sector and ODA financing

THANKS !!!

Share of countries meeting the 10% target In 2003, only 5.9% of African countries were spending at least 10% of their total budget allocations on agriculture This figure increased to 15.2% in 2007 and to 35.7% in 2008 Sources: Based on ReSAKSS data collected from various national government sources and IMF There are 2 components to MDG1: hunger and poverty Great progress has been made in many countries that are meeting one or the other, but only one – Ghana – is currently meeting both Burkina Faso Cameroon C. African Rep. Egypt Ethiopia Guinea Kenya Lesotho Mali Senegal Swaziland Tanzania Countries on track towards halving poverty by 2015 Countries on track towards halving hunger by 2015 Countries on track towards achieving MDG1 Algeria Angola Benin Botswana Burundi Gambia Guinea Bissau Mauritania Namibia Sao Tome & Principe Ghana