Bank’s Agricultural Strategy in Africa: An Update

1. Bank’s Agricultural Strategy in Africa: An Update

2. The Context in 2011 In Africa (and the world) • Global food (and fertilizer) prices • spikes in 2008 and 2010 threaten the poor, and social stability, while offering potential incentives to farmers • Refocused SSA Governments • are investing in agriculture, but not always in ways that will yield high payoffs. Increased recognition of need for evidence-based decision making. • CAADP platform • has energized definition of country-owned programs, but inflated expectations on external financing, has been of variable quality and transactions-intensive • Donor finance flows • Donors willing (Aquila G20 USD 20 billion engagement), but able (GAFSP commitments < USD 1 b)? • Private sector interest and finance • positive FDI trends (but data are poor); but policy frameworks still constrain (sector taxation->regulation, investment climate) • Emphasis on results and measuring them • absolutely essential for mobilizing resources in highly constrained environment

3. Scale-Up Strategy • Goal: Higher SSA agricultural growth and improved food security • Current Strategy Focus • Commit USD 1 billion in new money annually • Four pillars: land and water management, agricultural markets and infrastructure, food security and vulnerability, agricultural technology • Horizontal beams – sector-wide policies, gender, climate change • Strengthen the CAADP process • How • New instruments • Donor coordination/partnership • Commercial/subsistence balance • Measuring impact • Regional programs • Bank organization • Decentralize AFTAR staff, with senior staff pillar/thematic coordination from headquarters: 76 staff in total + 10 extended-term consultants (down slightly prior to 2009); 2/3 in country offices

4. Progress: Sector Performance Sources: ReSAKSS Comprehensive Monitoring and Evaluation Report, April 2010

5. Progress: sector performance Trends in agricultural GDP and per capita agricultural GDP in Sub-Saharan Africa Value of agricultural exports and imports Sub-Saharan Africa (1970-2008)

6. Progress: Financing Composition of WB Funding Annual Average $437m $1290m $1123m Food security response shifting to fundamentals: soil and water management, markets, technology

7. Looking Forward: Alignment with Africa New Strategy y Pillars and Foundation • Competitiveness and Employment, Vulnerability and Resilience, and Governance and Public Sector Capacity provide a good framework for addressing the sector challenges Partnerships • With governments, private sector, development actors • Scale and scope of the problem demands and use our catalytic power and expertise to leverage other partners • Learn from and build on existing partnerships (CAADP, AfDB, AUC, Bilateral, civil society, etc) • Mobilize partners to deepen and accelerate support to Africa Agriculture (crowding in private and other public resources) Knowledge • Connector of knowledge in Agriculture and Agribusiness development • Strengthened impact of ESW (economic and sector work: Sleeping Giant Study, Rural Struc,…) • South-South partnerships (e.g. Brazil) • Political economy analysis of incentives facing actors in reform process Finance • Leverage WB , specially IDA resources • Private sector and PPP • Trust funds (Fragile states, GEF,…) • Domestic resource mobilization (through agric public expenditure work in CAADP framework)

8. Looking Forward:Strengthening the Pillars • Continued Strategic Focus • Four main pillars: land and water management, agricultural markets and infrastructure, food security and vulnerability, agriculture technology • Horizontal beams – policies, gender, climate change • Main Adjustments • Land and water operations implementation – updating the irrigation business plan + land administration • Agribusiness platform – for better leveraging of private investment and increased participation + promotion of commercial agriculture • Public expenditure policy engagement – cross-pillar program strengthening through CAADP-MDTF and BMGF trust fund for analytical work (9 countries underway in 2011)

9. Pillars (1) – Land and Water • Land • Sustainable land management – rainfed land and pasture management; TerrAfrica • Investing in land administration • Titling, registration and cadastral capacity for small and large farm enterprises • Innovating in community mapping and land taxation • Staff constraint, particularly for French-speaking countries, being addressed with secondees • Engaging on policies for responsible FDI in land for agriculture, linked to land administration capacity • Water • Irrigation business plan – mid-term review just completed • Scope exists for further scale-up • Main constraints are preparatory work with countries, and staffing (only partially being solved with secondees) • Climate change impact on priorities • Water management • Soil carbon • Good practice projects • Ghana Land Administration • Zambia Irrigation Development and Support • Ethiopia Irrigation and Drainage

10. Pillars (2) – Agri-marketing and Commercial Agriculture • Diversification, value chain deepening • extensive analytical foundations and piloting, now moving into operational work • both domestic (rapid urbanization) and export markets opportunities • Private investment flows – mobilizing and harnessing; PPP • Program integration • Agribusiness Platform (AR, FP, IFC, with infrastructure) • Piloting integrated project designs – four pipeline projects (Ghana, Burkina Faso, Senegal, Malawi) • Increasing attention to safeguards: palm oil, GMOs, monoculture pressure on biodiversity • Africa Union Agribusiness Initiative (3ADI) • Focusing on scale-up • Technical tools being developed • Good practice projects • Ethiopia Agricultural Growth Program • Nigeria Commercial Agriculture • Mali Agricultural Competitiveness and Diversification

11. Pillars (3) – Food Security and Vulnerability • GFRP – resources mostly allocated; shifting to longer-term impacts on food production productivity and marketing efficiency • Community-Demanded Development Projects • Food security for the very vulnerable • Communities with declining resource bases • Mauritania, Chad, Niger, Madagascar, Nigeria (FADAMA) • Evolution: away from too-open menu for broad livelihoods, sharper focus on agriculture and more access to better techniques • Disaster Dimension • Early warning systems for drought (Kenya, Ethiopia, Malawi, Madagascar) • Climate-related vulnerabilities and adaptive responses • Productive Safety Nets • Opportunities for complementarities with HD, but better role focus (who does what) possible on food security • Good practice projects • Mauritania – Community Based Rural Development • Nigeria - FADAMA Development Project III • Madagascar - Rural Development Support

12. Pillars (4) - Technology • Research projects • Regional projects designed to achieve critical mass and facilitate spillover take-up of results • National system support – rebuilding, while forcing the link to dissemination and extension; no free-standing agricultural research projects • Spill-in through South-South partnerships (EMBRAPA and innovation grants) • Extension • Designs are tailored to constraints e.g. demand (Uganda, Rwanda), supply (Ethiopia), effective diffusion from research (WAAPP), and input/irrigation related (Nigeria Commercial Agric and FADAMA; and WUA elsewhere) • Leveraging resources - large MDTF • Bio-safety capacity • Regulatory underpinnings for new seed technologies; national and regional capacity being built • Climate change - impacting research/extension priorities • Good practice projects • West/East Africa Agriculture Productivity Projects • West Africa Regional Bio-safety Project

13. Looking Forward : Partnership in working with CAADP Less process, more impact. Managing expectations. Strengthen the technical review of national investment plans; lend into them. Link policy dialogue to investment. Expand on public expenditure analysis for fact-based consensus-building Crowd in the private sector Use impact evaluations as part of peer review process

14. Looking Forward: Emerging Issues • Private investment flows • Tracking - household, domestic commercial, FDI • Link to employment generation • Capturing climate change finance for agriculture • Main opportunity is soil carbon • M/E and statistics agenda • Tracking impact, acting on it • Mechanization, ICT, Innovation • High political profile but still seeking workable strategies. Need intermediate technology.

15. Summary of Main Action Areas Sustain the scaled-up financial level in the range of US$ 1-1.2 billion/year + lesser number of projects, meaning larger operations Engage in supporting the four main CAADP pillars, paying particular attention to expanding agribusiness & water management/irrigation Expand engagement through partnerships: in-country ag. sector coordination groups; at regional level through RECs and the CAADP-PP; support for South-South partnerships Leverage Bank resources: mobilizing private resource flows + supporting public investments that crowds in private investment + PPPs and improved business environment; public expenditure sector work to make better use of countries own resources Learn and apply results: strengthened results frameworks, monitoring of core indicators, impact assessments