Dialogue of the Executive Secretaries of the Regional Commissions with the Second Committee Moving From Short-term Measures: A regional alternative to Addressing Africas Structural Food Crisis New York, 17 October 2008 Abdoulie Janneh Under-Secretary-General, and Executive Secretary Economic Commission for Africa

70 The current world food crisis is driven by a myriad of interlinked factors. Many African countries are among the hardest hit and face a pressing need for emergency assistance and long- term support for the development of their agriculture. This obviously a serious new challenge for a continent that is just recovering from the poor economic performance of the last two decades as many of the countries were implementing structural adjustment programmes. This crisis also offer many opportunities for African agriculture as more attention, both from national government and the international community, is now given to the support of agricultural development Africas Food Crisis in the context of global food crisis

Presentation is organized as follows: Introduction – Africas Food crisis in the context of global food crisis-Linkages, opportunities and challenges Impact of the Food Crisis on Poverty and food Insecurity in Africa Domestic and International drivers of Africas Food Crisis Framework for Coordinated Policy Response to Food Crisis in Africa ECAs Contribution: A Regional approach Concluding Remarks Structure of Presentation

Before the crisis it was estimated that 40 per cent of the African population was undernourished, which represent about 240 million people; Recent studies have revealed that the number of malnourished people around the world will increase by 44 million as the result of food crisis; Africa will continue to host the largest number of these undernourished people; It can be expected that 25 to 30 million more African will join the group of hunger people due to the decline of their purchasing power; and The poor will become poorer. Impact of Food crisis on Poverty and Food Insecurity in Africa

The poor are the hardest hit, thus put at risk progress on perverty and reduction, social cohesion, and the broader development agenda; Recurrent social unrest and food riots; More panic-buying to secure domestic stocks by large importers countries; Adoption of export restriction measures by exporting countries to protect supply of domestic market, with negative impact on neighboring countries. Deterioration of balance of payments due to higher food import bills. Socio economic and Political impacts of the Food Crisis in Africa

Undercapitalization and Poor African agricultural Performance Due to past inconsistency in degree and direction of priority African agriculture is today severely undercapitalize; only 65 of arable land is irrigated compared to 40% in Asia; Fertilizer use in SSA is 8kg/ha, representing 9% of the world average of 93kg/ha; African institution of agricultural education, research, and extension are poorly staffed, ill equipped and underfunded. Domestic and International Drivers of Africas Food crisis

Poor Performance of African Agriculture Due to undercalitalization there has been a stagnating or declining agricultural productivity; At about 1.0 ton/ha, average agricultural yields in Africa represent only 25 to 30 % of the comparable regions. Africas agriculture labor productivity represents 60% of Asia or Latin America. The continents share of global agricultural export has fallen sharply. Domestic and International Factors driving Africas food Crisis 2

Poor Natural Resources Development and management Untapped or poorly managed abundant natural resources; Severe land degradation over the 3 decades; 500 million hectares are severely or moderately degraded An average deforestation rate of 0.85 per year, the highest in the world; Only 3.8% of the region water resources are withdrawn; Domestic and International Factors driving Africas food Crisis 3

Demand dynamics led by population growth and urbanization Agricultural production in SSA has failed to keep pace with the population growth rate There is a rapid urban population growth estimated a 5% per years Improved income has led not only to increase food demand but also to changes in consumers preferences in urban areas. Policies of Africas Agricultural trading Partners Production and export subsidies; Tariff and non-tariff barriers; Dumping of food stuff. Domestic and International Factors driving Africas food Crisis 4

Energy crisis o These changes have resulted in the reduced supply of crops for food; o World grain stocks have reached their record lows; o High oil prize has trigger a policy focus on biofuel including subsidy for the production; o Freight cost and fertilizers prices have more than doubled due to fuel prices increase; Climate Change o African agriculture is mostly rain fed and lower precipitations have resulted in lower productivity; o Climate change is a threat to food security and overall development in Africa. Domestic and International Factors driving Africas food Crisis 4

UNSGs Global initiative has led to the preparation of the Comprehensive Framework for Action (CFA) AU/NEPAD workshop was organized to build consensus on a coordinated African response to the food crisis within the CAADP framework. During the high level FAO Conference on World food security, the international community pledged to provide more finance to the development of African agriculture. Framework for Coordinated policy Response to Food Crisis in Africa

Linking Short, and medium/long-term policy responses for Africa Region The food crisis is not a new phenomenon in Africa region; There is a serious structural problem of the African agriculture sector; Short term emergency measure are necessary to mitigate the impact of the food crisis; At the same time Medium and long-term programmes to trigger the structural transformation of african agriculture. Framework for Coordinated policy Response to Food Crisis in Africa

Addressing NEPAD/CAADP implementation challenges at regional level Owing to the extreme fragmentation of African Agricultural market, promoting agricultural transformation within the CAADP framework requires an effective public private partnership to capture economies of complementarities between African ecological zones, and economies of scale based on comparative and competitive advantage beyond national boundaries

The ECA contribution will focus on the development of strategic agricultural commodity value chain with a regional perspective; Assisting African countries to establish center of excellence for agricultural research for the strategic commodity; Design programmes to link small farmers to market through innovative contractual arrangements; Promote the emergence of regional agribusiness joint venture and international cooperation, especially south-south cooperation in developing streategic commodity value chains. ECAs Contribution: A regional approach To agricultural transformation in Africa

Concluding Remarks The heavy reliance of the region on food imports need to be reduce to make the continent less vulnerable to external chocks; There is a need to achieve the African Green Revolution through the structural transformation of agriculture; More financial support is therefore needed to promote the development of African agriculture while at the same time putting in place social safety nets.

Concluding Remarks 2 The efforts must be consistent with the objectives and goals of sustainable development for long-term solution to the problem; Development cooperation is important for success; African leadership and ownership of the efforts is essential and critical for success.

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