1. Opportunities for Agro-industries and Agri-enterprises in the EAC
EALA-FES Dialogue on FDI in Agriculture
Opportunities for Agro-industries and Agri-enterprises in the EAC
Lake Tanganyika with its 7 “Victoria Lakes of water”; 670 km of “God-given” transportation corridor – is – truly an overflowing resource
Map from Jorgensen, Ntakimazi & Kayombo
Presentation at
the 1st EAC Lake Tanganyika Basin Development Conference by
Nuhu Hatibu - CEO – Kilimo Trust
Bujumbura,
The Kilimo Trust: regional solutions to local problems

2. EALA-FES Dialogue on FDI in Agriculture
With respect to agriculture… 8 Of the top 12 Commodities in the EAC are also the leading in the L. Tanganyika Basin
Commodity
Rank in the EAC
Importance in LTB
Maize 1
√√√
Cassava
Dairy Cattle 3
Plantains/ Bananas 4
Beef cattle 5
Sweet potatoes 6
Dry Beans 7
Irish potatoes 8
Sorghum 9
Groundnut 10
Rice 11
Fish culture 12
Bujumbura,
The Kilimo Trust: regional solutions to local problems

3. EALA-FES Dialogue on FDI in Agriculture
Therefore … Great opportunities in linking the production in LTB to agro-processing and agribusiness value chains in the EAC Common Market … and beyond
Bujumbura,
The Kilimo Trust: regional solutions to local problems

4. BUT, Agro-processing within LTB is…
EALA-FES Dialogue on FDI in Agriculture
BUT, Agro-processing within LTB is…
Very critical because most of the key Commodities have Short Shelf Life if not processed
Recall the Chinese proverb:
“Give a man a fish and you feed him for a day”
“Teach a man to fish and you feed him for a lifetime”
... and add
Support the man to preserve and process his fish and you feed the world while creating wealth for generations.
Bujumbura,
The Kilimo Trust: regional solutions to local problems

5. EALA-FES Dialogue on FDI in Agriculture
For Example Beef …
Bujumbura,
The Kilimo Trust: regional solutions to local problems

6. EALA-FES Dialogue on FDI in Agriculture
For Example Cassava …
Bujumbura,
The Kilimo Trust: regional solutions to local problems

7. EALA-FES Dialogue on FDI in Agriculture
Therefore, ….
Great opportunity for investment in primary agro-processing as part of regional value chains; through:
Contract farming;
Out-grower schemes
Major Estates, or
Mini Estates
Bujumbura,
The Kilimo Trust: regional solutions to local problems

8. Turning the state of being “Land Locked” to an opportunity…
EALA-FES Dialogue on FDI in Agriculture
Turning the state of being “Land Locked” to an opportunity…
Through agro-processing for import substitution in the local LTB and nearby markets – where imported products are a common phenomenon – such as in:
Palm oil and its secondary products
Bujumbura,
The Kilimo Trust: regional solutions to local problems

9. BUT Note … agro-industries in the EAC follows Transport Corridors
EALA-FES Dialogue on FDI in Agriculture
BUT Note … agro-industries in the EAC follows Transport Corridors
Figure : Location of agro-industries in the EAC Region
BUT, L. Tanganyika which is
670 km long with a 1,900 km shoreline, is a natural
transportation corridor
Bujumbura,
The Kilimo Trust: regional solutions to local problems

10. EALA-FES Dialogue on FDI in Agriculture
Therefore …
To Unlock the Overflowing Trade and Investment Opportunities in the LTB, highest priority should be given to:
The full development of the transportation potential of the lake; and
Critical level of power supply
Bujumbura,
The Kilimo Trust: regional solutions to local problems

11. EALA-FES Dialogue on FDI in Agriculture
E3ADP
East African Agri-industries and Agro-enterprises Development Programme
Programme of the EAC;
Supported by: Kilimo Trust; and FAO (AGS & SFE)
VISION: an agriculture sector in the EAC partner states, which supply high-valued and differentiated food, fibre, feed and other agricultural products for local, regional and international markets.
PURPOSE: to expand agro-industries and agri-enterprises in the EAC for value addition processing, preservation and marketing of agricultural commodities and products.
Bujumbura,
The Kilimo Trust: regional solutions to local problems

12. E3ADP Thrust 1: Accelerate the Development of Agro-industries
EALA-FES Dialogue on FDI in Agriculture
E3ADP Thrust 1: Accelerate the Development of Agro-industries
By “value addition processing smartness” in:
Public agriculture 4 development programmes; and
Private sector agricultural investments
Requiring investment to build:
A critical mass of highly skilled experts and technicians;
Strong regional agricultural value chains;
Regional clusters of agro-industries and supporting services;
Centres of excellence for regionally coordinated R&D and BDS
Bujumbura,
The Kilimo Trust: regional solutions to local problems

13. E3ADP Thrust 2: Getting Markets and Trade Right
EALA-FES Dialogue on FDI in Agriculture
E3ADP Thrust 2: Getting Markets and Trade Right
Requiring investment to:
Finish the work on harmonized and/or regional standards for agro-processed products;
Operate a robust Market Information System;
Eliminate NTBs - with agro-processing itself making a contribution;
Support development of vibrant advocacy for agro-industries and regional value chains;
Support the development of regional commodity exchange.
Most of these are already tackled by other programmes
Bujumbura,
The Kilimo Trust: regional solutions to local problems

14. … on thrust 2 - one key element is to
EALA-FES Dialogue on FDI in Agriculture
… on thrust 2 - one key element is to
Support SME Producers to Organize – so as:
To guarantee high and consistent volumes to processors and markets;
To consolidate, bulk, and exploit economies of scale to reduce transaction costs;
To build strong negotiation positions to extract best deals from value chain partners; and
To share the capital cost for appropriate technology for value addition processing.
Bujumbura,
The Kilimo Trust: regional solutions to local problems

15. E3ADP Thrust 3: Enhance Infrastructure Support 4 Agro-industries
EALA-FES Dialogue on FDI in Agriculture
E3ADP Thrust 3: Enhance Infrastructure Support 4 Agro-industries
but …it is the “Last Mile” that matters
Requiring:
Improved coordination and synergy of investment in infrastructure and agro-industries; and
Expansion of last-mile infrastructure for stable flow of raw materials; and
In LTB – making the lake a vibrant transportation corridor
Bujumbura,
The Kilimo Trust: regional solutions to local problems

16. E3ADP Thrust 4: “+ve Business Climate” in Policy and Institutions
EALA-FES Dialogue on FDI in Agriculture
E3ADP Thrust 4: “+ve Business Climate” in Policy and Institutions
Focused on three things: Implementation; Implementation; and Implementation.
Requiring accelerated efforts towards:
Strong PPPs;
Regionally supported manufacturing of agro-processing equipment;
Mechanism for strong coordination among government ministries and EAC departments.
Bujumbura,
The Kilimo Trust: regional solutions to local problems

17. E3ADP Thrust 5: Attracting Financing and Investment
EALA-FES Dialogue on FDI in Agriculture
E3ADP Thrust 5: Attracting Financing and Investment
Strategic Public Sector Investment;
Public Sector Procurement;
Dedicated Investment Vehicles to absorb FDIs;
Challenge Funds; and
Risk Insurance
Bujumbura,
The Kilimo Trust: regional solutions to local problems

18. regional solutions to local problems in the EAC
EALA-FES Dialogue on FDI in Agriculture
regional solutions to local problems in the EAC
Support to developing an EAC Regional Common Strategy 4 Food Security;
Comprehensive diagnosis and analysis of EAC-wide strategic food commodities;
Graduating smallholders to “investable” agri-SMEs;
Building Private–Private–Partnerships -between- organized smallholder farmers and agri-SMEs –and- large scale firms (agribusiness and processors) and commercial banks
Bujumbura,
The Kilimo Trust: regional solutions to local problems

19. Development of Inclusive Markets in Agriculture and Trade
EALA-FES Dialogue on FDI in Agriculture
Development of Inclusive Markets in Agriculture and Trade
Designed to:
Build Private–Private–Partnerships:
Functional business linkages ESTABLISHED; and
Fully operational pro-poor business innovations by corporate multinationals IN PLACE
Graduate smallholders to “investable” agri-SMEs:
Capacity of SMEs of producers and supporting BDS providers STRENGTHENED; and
Access by SMEs of producers to the assets necessary and sufficient to participate in inclusive markets ENHANCED
Bujumbura,
The Kilimo Trust: regional solutions to local problems

20. EALA-FES Dialogue on FDI in Agriculture
Take home message…
EALA-FES Dialogue on FDI in Agriculture
Value-addition processing is key to food security and wealth creation;
Lake Tanganyika is a God-given transportation corridor; and
Strategic Public investment and Public Procurement locally are vitally important.
Bujumbura,
The Kilimo Trust: regional solutions to local problems

21. THANK YOU! For more information & follow-up … Please visit: Or
Map from Jorgensen, Ntakimazi & Kayombo 21