1. Thomas Allen thomas.allen@oecd.org www.oecd.org/swac/ Transformations in West Africa agro-food value chains USAID, Washington DC 15 September 2015

2. A peopling region 2

3. Structural transformations 3 Sources: e-Geopolis/Africapolis, 2013; SWAC/OECD 2015

4. The growing role of markets

5. Markets, primary source of food supply 5 Markets provide 2/3 of food supplies

6. Size of the regional food economy 6 West Africa food economy: 175 billion USD in 2010 –Total value traded on markets: 120 billion USD Urban spend 50% more than rural on food (per capita consumption) Sources: World Bank, GCD 2014; UNSD, 2015; SWAC/OECD 2015

7. The role of prices 7 Sources: World Bank, ICP 2011; SWAC/OECD 2015 GDP per capita ICP Food price level index

8. Transformations in Agriculture

9. Meeting demand 9

10. Marketed surplus - maize

11. Greater crop yields 11 Gains in yield have been particularly marked since 2000 and now account for 40% of production growth

12. Further down the value chain

13. Development of post-harvest segments 13 Food GDP = 36% of GDP Food GDP/Agriculture GDP* = 1.6 Indicates major structural change in the food economy: 40% is no longer agriculture NB: *Agriculture GDP adjusted for exports Post-harvest segments of the agro-food value chain as important to food security as agriculture

14. Importance of processed foods 14 Processed foods (excluding cereals and beverages) account for 39% of food consumption in 2010 BeveragesCereals*Food (excluding Cereals & Beverages) UnprocessedProcessed AllLowest4%31%29%36% Low5%20%32%42% Middle9%13%31%48% Higher12%11%28%49% All4%27%30%39% UrbanLowest4%24%35%38% Low6%18%33%44% Middle9%13%31%47% Higher12%11%28%49% All5%20%33%41% RuralLowest3%37%25%35% Low5%25%31%39% Middle7%14%29%50% Higher12%19%30%38% All4%34%26%36% Sources: World Bank, GCD 2014; SWAC/OECD 2015

15. Growth in agribusiness 15 Agribusiness: first industrial sector in some West African countries 81% of the total estimated employment opportunities in the informal sector in Senegal Sources: Oxford Business group, 2011 Industrial production, 2004-2008 (CFA bn) - Senegal

16. Markets play a crucial role in food security, both in urban and rural areas Market dynamics are transforming agriculture towards more intensification, in particular around urban areas Post-harvest segments of the agro-food value chains are fundamental to food security What is the potential of the regional food processing and marketing sectors? What are the opportunities and constraints? Key messages

17. -Africapolis (2008), Urbanisation Trends in West Africa 1950- 2020, AFD, coordinated by SEDET (CNRS/Université Paris Diderot). [OECD/SWAC-funded data update in 2014] -OECD/SWAC (2013), Settlement, Market and Food Security, West African Studies, OECD Publishing, Paris. -Soulé, B. G. and S. Gansari (2010), La dynamique des échanges régionaux des céréales en Afrique de l’Ouest, MSU, SRAI, working paper. -Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank and ILO, Geneva, Switzerland. References

18. Growth in food processing (Senegal) 18 Source: UNIDO, INDSTAT 2013 Value added