1. New trends in agro-industrialization and perspectives beyond 3ADI
Frank HARTWICH Agribusiness Development Department UNIDO

2. What’s new in Agroindustry Development?
Increasing value of agricultural commodities.
Increasing importance of processing/value addition segment of the value chain. Effects of population growth, urbanization, economic growth.
Development only to be realized in value chain / market system context.
Partnerships with lead companies in global value chains.
Appearance of China and others as investors and joint-venture partners in primary agricultural production and processing.
Push for agro-industrial parks as a vehicle for dev.
New technologies:Industry 4.0, ICTs, Bioeconomy.
Increasing importance through SDG and beyond.
Comes with

3. Challenges to Agro-industrial Development
Immanent challenges:
Scale and level of development
High investment costs
Weak financing, especially for SMEs & smallholders
Sourcing of primary products (EoS, Quality)
Lack of coordination of value chain actors
Targeting markets
Broader challenges:
Social and environmental sustainability,
Climate change effects,
Women/youth inclusion
Migration
Identifying niches in global value chains
Regional value chain development 

4. Entry Points into Agroindustry Development
Value chain development
Technology transfer
Business incubation
Product development
Standards compliance
Agro-industrial parks dev.
Rural enterprise development
Youth &entrepreneurship dev.
Women in businesses
Areas
Food-processing
Leather
Forest products
Textiles and fibers
Agro-machinery
Food safety
Quality
Biotechnology
Post-harvest losses

5. Background on
Accelerated Agribusiness and Agro-industries Development Initiative (3ADI)
Crafted at the Abuja Conference, Nigeria in March 2010
Joint initiative of AfDB, FAO, IFAD and UNIDO to share knowledge and harmonize programmes in ways that capture synergies, avoid fragmented efforts, and enhance developmental impacts.
Goal: have an agriculture sector in Africa which consists of highly productive and profitable agricultural value chains.
Four main areas of support:
(i) Skills and technologies needed for the production and post-production segments of agriculture value chains;
(ii) Innovative institutions and services;
(iii) Financing and risk mitigation mechanisms;
(iv) Enabling policies and provision of public goods.
Towards an integrated programme framework for agriculture and agroindustry development – 3ADI+
To accelerate the development of the agribusiness and agro-industries sectors ( food and non food) in Africa, 3ADI supports an investment programme to significantly increase the proportion of agricultural produce in Africa that is transformed into differentiated high-value products: to move from commodities to products.
 The initiative highlights the critical role of agribusinesses in the process of economic development, increased food security and improved nutrition and sustainable reduction of poverty in target countries. It also defines priority areas where support is needed to foster sustained poverty reduction through human capital development, highly productive and profitable agro-value chains and greater agribusiness participation in domestic and international markets.

6. (joint, if possible) field missions to target countries
UNIDO team
FAO team
AfDB, IFAD, Dev. Bank team
(joint, if possible) field missions to target countries
(joint, if possible) programme development
Public Investment
IFAD, Dev. Banks
GAFSP
Private Investment
GAFSP\IFC
AFD TA
EC, multi-bi
grant portion of IFAD, Dev Banks
inputs: FAO-IFAD-UNIDO teams
value chain analysis
outputs: country strategy papers , VC development support programmes
The global agriculture and food security programme

7. Lessons learned from the 3ADI
3ADI remains relevant: comprehensive, innovative, with pertinent guiding principles ….weaves together diverse technical competences and finance.
Early reliance on partnerships with private firms, investment funds and IFIs.
Benefitted initially from strong political engagement, but lost momentum.
After Abuja, each organization took different approaches.
Cooperation in some UN agencies was left to goodwill of individual project managers which looked at it within their traditional incentive structures.
Mutual synergies in several fields, but mixed performance.
Integrated approach in TA? No joint funding for formulation/implementation.
Scope remains for much and deeper collaboration – link to other initiatives.
Link to African Agriculture Fund (&related AAF Technical Assistance Facility)?
When creating investment funds/mechanisms funding rules crowd out technical assistance including join planning of project
without which agroindustrial development challenges could not be overcome and opportunities be seized.
other initiatives meanwhile developed (with similar agendas) seem to have more political cloud and receive at present more attention and financial support.

8. Lessons learned – the necessary but not sufficient
Joint planning methodology (VC analysis)
– needs to be used by all partners and with substantial funding
Progamme documents
– need to be endorsed by all partners
Joint implementation
– needs more substantial funding (rebranding of existing projects is not enough)
High level commitment
– needs to be institutionalized and transformed into incentive structures for individual programme managers
Channelling investment to agribusinesses
– need for systemic perspective, need for TA
Funding mechanisms / institutional setup
– needs to combine investment with TA to ensure the more complex development of value chains and market systems
– Donors need to ensure coherent funding for integrated cross-agency programmes
without which agroindustrial development challenges could not be overcome and opportunities be seized.
other initiatives meanwhile developed (with similar agendas) seem to have more political cloud and receive at present more attention and financial support.

9. Lessons learned: 3ADI Technical Assistance Facility
Purpose: Promote public and private investment in African agribusiness sector and enable local stakeholders to benefit directly or indirectly.
TA for pre-investment, post investment and address enabling policies
Bias towards “sure investments”, example: Palm oil plantations
Social benefits of investments rank secondary to IRR
Need for technical assistance (TA) not always obvious to investors
TA budget too low to spur investment
TA conducted by others than the ones with systemic approach

10. Perspectives for a renewed joint programme for agricultural and agribusiness development
Great opportunity to upscale 3ADI in view of changing global and local agendas.
Upscale to 3ADI+ : strong, functioning partnership ensuring SDG compliance.
Expand geographic coverage (LDCs, LLDCs and SIDs) and technical content.
Address key global developments/challenges: population increase, migration, urbanization, climate change, infrastructure, structural underdevelopment, etc.
Work partnership: capture synergies, avoid fragmented efforts, enhance impacts.
Use market systems/value chain approach as tool for planning/implemention.
Set up technical assistance facility accompanying public and private investment.
Set up pool for technical assistance and local knowledge hubs – local capacity
Set up of fund for co-financing private investments – coordinate co-financing.
Take stock of progress of joint activities – comprehensive M&E (market systems).
Individual budgets to promote framework actively/continuously via focal points.
Link with other initiatives (African Union, ECA, ACP, EU-Africa, China-Africa, G20).
Donors need to coordinate – explore new funding options
Tool for SDG compliance