1. Agriculture Sector Strategy
AFRICAN DEVELOPMENT BANK GROUP
Agriculture Sector Strategy
(Major Highlights) By
Dr. Chiji OJUKWU
Manager
Agriculture and Agro-Industry Department
AFRICAN DEVELOPMENT BANK GROUP

2. Context Global Financial Crises 2008 World Development Report (WB)
At a time when Africa was building foundation for higher growth and poverty reduction
2008 World Development Report (WB)
Agriculture remains the main source of growth for the agriculture-based countries and can reduce poverty and improve the environment
Global Food Crisis
Africa’s recent gains in economic growth and macroeconomic and political stability risk being jeopardized by the 2008 food price increase - Response
Climate Change
Undesirable effect of climate change on agriculture sector
AfDB/IFAD Joint Evaluation
Concludes AfDB should remain engaged in the Sector, but should be more focused, selective and innovative

3. Strategic Framework for the Bank AgSS
Millennium Development Goals
Goal of eradicating poverty (by 2015) and hunger and ensuring environmentally sustainability
NEPAD-CAADP:
Framework for accelerating agricultural growth in the Africa: at least 6% annual rate of growth
Platform for collaboration, partnership and alliance building.
CAADP compacts guides country policy and investment response - allocation 10% of Budget to Agriculture
ADB Medium Term Strategy, 2008 – 2012
Vision: To be recognized as preferred partner in Africa, providing high- impact, well-focused development assistance and solutions
Priority Areas: Infrastructure, Governance, Private Sector, Higher Education
Investment Support: Poverty Reduction, Agriculture, Regional Integration, Human Development

4. Bank Group Approvals, 1967-08 (% Distribution by Sector)

5. Bank Group Approvals, 2008: Distribution by Sector
The 2008 figures include private sector investments which is skewed against agriculture

6. Trend of Bank Group Agricultural Portfolio Performance, 2006 2009
Improving trends due to: more supervision, delegation of authority to Field Offices, and better staff skill mix

7. Lessons and Best Practices
Strategic Financing of the Sector: ADB to remain engage in the sector, but in a more focused, selective and innovative manner
Adequate Policy & Political Framework necessary for agricultural development: Bank to support increased capacity of RMCs for analytical work in the area of policy development
Purposeful Partnership based on comparative advantage adds value to agricultural interventions in RMCs; to engage more with the private sector
Agricultural Water Development contributes to growth and Poverty Reduction
Capacity building sustainability of ARD initiatives needs Support RMCs capacity needs assessment and institutional building

8. Guiding Principles for Implementation of the AgSS
Selectivity and Complementarities
Country Ownership / Alignment
RESULTS FOCUSED
Stronger Partnership
Knowledge Generation and Dissemination
Gender Focus
Environmental Accountability

9. AgSS – Bank Focus

10. AgSS Pillars and Areas of Intervention – Pillars 1 & 2 of the four CAADP Pillars
Pillar I: Agricultural Infrastructure
RURAL AND COMMUNITY ROADS
MARKET/STORAGE INFRASTRUCTURE AND AGRO-PROCESSING
AGRICULTURE WATER AND WATER STORAGE
OTHER INFRASTUCTURE (Supporting Fisheries, Livestock, etc)
Pillar II: Renewable Natural Resources
RENEWABLE NATURAL RESOURCES MANAGEMENT (including Forestry)
CLIMATE CHANGE (Mitigation & Adaptation)

11. AgSS Value Chain – Objectives, Purpose and Strategic Goal
Strategic Objectives
To improve agricultural production and marketing infrastructure , and ensure long-term and profitable use of natural resources
Purpose of the AgSS
Agricultural Productivity and Income Enhanced on a sustainable basis
AgSS Strategic Goal
Contribute to sustainable food security and Agriculture-led growth in Africa

13. Indicative Pipeline of Projects / Programs for Financing, 2010 - 14
Pillar I
Pillar II
Cross-cutting

14. CAADP/AgSS Pillars - ADB Interventions with OTHER PARTNERS
CAADP Pillars / Areas
General Areas
AfDB
Development Partners
Pillar I: Extending the area under sustainable land management and Reliable Water Control Systems
Land and Forestry Management
Other infrastructure (including Forestry, fisheries, rural energy, etc)
OPEC Funds, IsDB, BOAD, Kuwait Funds, Saudi Funds, World Bank
Water Control System
Agricultural Water and Water Storage
Improved Water Quality Management
WB, IFAD, IsDB
On-Farm Management
Renewable Natural Resources management / Climate Change
FAO, IFAD, UNCCD, IUCN, EU, GEF Secretariat, World Bank, OPEC Funds, IsDB, BICEC, WMO, UNECA, AU, ACMAD, ICPAC, CIDA, SIDA, AGRA
Pillar II: Improving Rural Infrastructure and Trade related Capacities for Market Access
Rural Infrastructure Development
Improvement of Rural and Community Roads
Market Access
Market / Storage Infrastructure and Agro-Processing
IsDB OPEC Funds, IsDB, BOAD, Kuwait Funds, Saudi Funds, World Bank

15. Pillar III: Increasing Food Supply and Reducing Hunger
CAADP/ AgSS Pillars - Interventions by OTHER PARTNERS INDIRECT ADB ROLE
CAADP Pillars / Areas
General Areas
AfDB
Development Partners
Pillar III: Increasing Food Supply and Reducing Hunger
Agricultural Inputs
SI (AFFM)
IFAD, IsDB, WFP
Rural Financing/ Risk management
Private Sector
WB , IFAD , IsDB
Crop Development / Special Food Production Initiative
SI (NERICA)
WB, IFAD, IsDB, WFP
Safety Net Programs
WB, IFAD,WFP
Pillar IV: Agriculture Research, Technology Dissemination and Adoption
Breeding and Multiplication and Extension Services
Support CGIAR
IFAD, FAO
Others
Livestock/ Fisheries
Infrastructure Only
IsDB
Information for Agricultural Strategy Formulation and Implementation
Special Initiative
IMF, WB
Capacity Strengthening for Agriculture and Agri-business
IFAD
Gender Mainstreaming/ HIV
Direct Role
WB, IFAD, IsDB

16. Key Agricultural Sector Performance Indicators by 2014
Outputs
Outcomes
10,000 KM of rural roads built and/or rehabilitated
4. 50,000 people trained in good agricultural practices
1. Yield Increase: 15-20%
2. 500,000 Ha of land under improved water management**
5. Twenty five percent decrease in agricultural land and forests degraded
2. Reduction in post harvest losses 3% over six years (0.5% per year)
billion Cubic meters of water mobilized for multiple purpose development**
6. Seventy five percent of Bank agricultural operations are climate proofed
3. Production increase: 5% per annum
**Prepared and secured necessary investments by 2014 for operations to develop 500,000 ha under improved water management and increase water storage capacity by at least 8.5 billion cubic meters.

17. Risks and Mitigation Measures
Difficulty of establishing modus operandi with other partners
Advocacy of the AgSS to stakeholders and ensure stronger link with DPs at an early stage. Design more efficient business processes.
Likelihood of slippages in government implementation performance due to inadequate capacity
Support Continental capacity building program for Ministries of Agriculture
Inadequate enabling environment for private sector participation
Support Rural infrastructure and policy reform
Unwillingness of RMCs to make investment in the sector due to exogenous factors
Awareness that food security implies increasing domestic production, and that food availability is a function of socio-political stability. Apro Financing instr.

18. Implementation Arrangements
Action Plan for Implementation for period 2010 – 2014: accompanying the AgSS
Mid-Term Review of the AgSS: By 2012
Program of Operations: Lending pipeline envisaged 75 projects / programs for a total of UA 1.71 billion over the period, using Bank’s financial instruments
Internal and Institutional Arrangements: Implementation of AgSS will draw from the human and institutional capacities available in various Departments of the Bank – with clear division of responsibilities, & properly restructured approach for organizational effectiveness
Financing Instruments: Those already in use by the Bank (public/ private sector loans/grants, Budget Support, SWAPs, LoCs, Private Equity
Results Monitoring and Evaluation – in line with Paris Declaration principles and country/Bank result monitoring, measurement framework

19. Partnerships
Enhance Strategic Partnership with IFAD, FAO, IsDB, OPEC Fund, WFP, BOAD, & WB and other MDBs and bi-laterals.
Cooperate with other IFIs through the CAADP process at the country, regional, continental levels
Engaging the Private Sector in the Agriculture Sector Strategy
Align to the Country System and Development Programs

20. Thank you