CHALLENGES AND OPPORTUNITIES IN POVERTY/HUNGER REDUCTION IN EASTERN AND SOUTHERN AFRICA ERASTUS J. O. MWENCHA, MBS COMESA SECRETARY GENERAL BEIJING, CHINA, October 17-19, 2007

OUTLINE OF PRESENTATION INTRODUCTION SUMMARY OF CHALLENGES SUMMARY OF OPPORTUNITIES CONCLUSION

INTRODUCTION: AGRICULTURE - KEY TO POVERTY REDUCTION IN E &S AFRICA ABOUT 85% of the POPULATION DERIVE LIVELIHOOD DIRECTLY FROM AGRICULTURE ABOUT 85% of the POPULATION DERIVE LIVELIHOOD DIRECTLY FROM AGRICULTURE CONTRIBUTES ABOUT 32% of GDP CONTRIBUTES ABOUT 32% of GDP CONTRIBUTES ABOUT 65% of FOREX CONTRIBUTES ABOUT 65% of FOREX 50% of RAW MATERIALS FOR INDUSTRIAL DEVELOPMENT 50% of RAW MATERIALS FOR INDUSTRIAL DEVELOPMENT

SUMMARY OF CHALLENGES TECHNOLOGICAL CONSTRAINTS/ CLIMATE CHANGE MARKET / INFRASTRUCTURE CONSTRAINTS POLICY (LAND/TRADE) RELATED CONSTRAINTS Low Productivity CONFLICT

SPECIFIC AGRICULTURAL SUPPLY SIDE CONSTRAINTS  Lack of capacity to manage land/water resources (only 6% cultivated land is irrigated; inconsistent agro-input policies)  Under developed market/trade related infrastructure (high cost of doing business)  Gender disparities  Weak capacity to disseminate technologies  Macroeconomic challenges/High cost of finance  Inconsistencies in trade/investment policies

OPPORTUNTIES SUMMARY CAADP PILLARS: COMPREHENSIVE APPROACH TO DEVELOPING AGRICULTURE (LAND/WATER, MARKETS/INFRASTRUCTURE, EMERGENCIES/FOOD SUPPLY, SCIENCE/TECHNOLOGY (6% GROWTH TARGET, 10% PUBLIC BUDGET, LINKED TO MDG attainment) CAADP PILLARS: COMPREHENSIVE APPROACH TO DEVELOPING AGRICULTURE (LAND/WATER, MARKETS/INFRASTRUCTURE, EMERGENCIES/FOOD SUPPLY, SCIENCE/TECHNOLOGY (6% GROWTH TARGET, 10% PUBLIC BUDGET, LINKED TO MDG attainment) EMERGING MARKETS: WFP, URBAN DEMAND, COMMODITY EXCHANGES EMERGING MARKETS: WFP, URBAN DEMAND, COMMODITY EXCHANGES ORGANIZED FARMER GROUPS: SACAU, EAFF, EAGC, etc ORGANIZED FARMER GROUPS: SACAU, EAFF, EAGC, etc FOOD ENHANCING AREAs: HIGH RAINFALL AREAS FOOD ENHANCING AREAs: HIGH RAINFALL AREAS REGIONAL INTEGRATION: WIDER MARKETS REGIONAL INTEGRATION: WIDER MARKETS MULTILATERAL NEGOTIATIONS: AID FOR TRADE; GLOBAL MARKETS MULTILATERAL NEGOTIATIONS: AID FOR TRADE; GLOBAL MARKETS

CONCLUSION KEY FACTORS TO OVERCOMING POVERTY: (i) CAADP: COMPREHENSIVE SECTOR APPROACH TO ADDRESSING SUPPLY/DEMAND SIDE CHALLENGES (ii) REGIONAL INTEGRATION / HARMONIZATION (iii) GLOBAL TRENDS/ TRADE LIBERALIZATION: SUBSIDIES; BIOFUELS; URBAN DEMAND (v) SMART PARTNERSHIPS IN PROGRAM IMPLEMENTATION

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