CAADP Implementation in South Africa

Briefing
to the
Portfolio Committee Agriculture, Forestry and Fisheries
On
 Key Issues for Agriculture in Agenda 2063 and Malabo
Declaration (also implications for South Africa)
 Success stories from implementation of CAADP
Context and rationale
Agenda 2063 Aspirations
Agenda 2063 Goals mapping
Goal 4: Transformed economies and
Job creation
1. A Prosperous Africa, based on
Inclusive Growth and Sustainable Goal 5: Modern agriculture for
Development
increased production & productivity
Goal 1: A high standard of living,
Goal 2: Well educated citizens &
Goal 7: Environmentally sustainable
quality of life and wellbeing for all
citizens
skills revolution underpinned by
science, technology & innovation
and climate resilient economies and
communities
Goal 3: Healthy and well-nourished
citizens
Goal 6: Blue/Ocean economy for
accelerated economic growth
2.
Goal 8: A United Africa (Federal or
An Integrated Continent,
Politically United, based on the Confederate)
Ideals of Pan Africanism and the
Goal 10: World class infrastructure
Vision of Africa’s Renaissance
criss-crosses Africa
3.
An Africa of Good Governance,
Democracy, Respect for Human
rights, Justice and Rule of Law
Goal 9: Continental financial and
monetary institutions established and
functional
Goal 11: Democratic values,
practices, universal principles of
human rights, justice & rule of law
entrenched
Goal 13: Peace, security and stability
transformative leadership in place
Goal 15: A fully functional and
is preserved
4.
Goal 12: Capable Institutions and
operational African Peace Security
Architecture
A Peaceful and Secure Africa
Goal 14: A stable and peaceful Africa
5.
6.
7.
Africa with a Strong Cultural
Identity, Common Heritage,
Values and Ethics
Goal 16: African cultural renaissance
is pre-eminent
Goal 17: Full gender equality in all
An Africa whose Development is
people-driven, especially relying
on Potential offered by its
Women & Youth & well cared for
Children
An Africa as a Strong, United &
Influential Global Player &
Partner
Consolidated
NEPAD Agency priority impact
areas
spheres of life
Goal 18: Engaged and empowered
youth and children
Goal 19: Africa takes full responsibility
Goal 20: Africa as a major partner in
for financing her development
Industrialisation and
Wealth Creation
global affairs & peaceful co-existence
Shared Prosperity
and Transformed
Livelihoods
Human Capital
Development and
Transformed
Institutions
Natural Resources
Management and
Environment
Resilience
Enabling transformative policies and actions towards
sustained economic growth and prosperity for all
Shared Prosperity and
Transformed Livelihoods
Industrialisation and
Wealth Creation
Agriculture
Forests
Mining
Oceans-Marine
Wildlife
Human Capital
Development and
Transformed Institutions
Natural Resources
Management and
Environmental Resilience
Key Issues for Agriculture in Agenda 2063 & Malabo
 Africa has around 600 million hectares of uncultivated arable land,
roughly 60% of the global total
 39 million hectares of agricultural land in Africa is suitable for
irrigation but currently only 7% is irrigated (SSA - 3.7%)
 17 kg fertilizer unit per ha whereas it is 222 kg in Asia and 120 Kg in
world average




Over 60 % of the population is in rural areas
65% of Africa’s labour force is in agriculture
Agriculture constitutes between 20 to 35% of GDP
A large share of the poor (some 63%) work in agriculture, mostly
smallholder farming (Olinto et al; 2013)
 Africa still importing over 25 billion dollars in food – over one-third its
food needs
 Largely underdeveloped agro-industry
Relevance of rural employment: Shares by sector
Region
Agriculture
Industry
Services
Latin America and the
Caribbean
16.3
22.1
61.6
North Africa
27.8
22.5
49.7
South-East Asia and Pac.
44.3
17.8
38.0
South Asia
53.5
18.9
27.6
Sub-Saharan Africa
59.0
10.6
30.4
World
35.0
21.8
43.2
Sources: ILO, 2010
Contribution of agricultural growth to poverty
reduction at the national and rural levels (%)
Contribution to reduction in poverty (%)
80
Agriculture
Non-Agriculture Sectors
70
60
50
40
30
20
10
0
Benin
Burkina
Faso
Cape
Verde
Ivory
Coast
The
Ghana Guinea Liberia
Gambia
Mali
Niger
Nigeria Senegal
Togo
Challenges still remain ….
o too much focus on the issue of public financing and
development aid;
o weak inter-ministerial and inter-sectorial coordination
o multiplicity of initiatives
o Africa still food insecure and high levels of hunger &
malnutrition;
o Low agric productivity; low rural incomes
o Public investments – the 10% – still low ???
o Too much focus on the supply side and not on making
markets work
Malabo declaration to
enhance and accelerate
agriculture transformation
Agriculture and CAADP: Malabo commitment
Level 1 – Agriculture’s Contribution to economic growth and inclusive development
Impact to
which
CAADP
contribute
Wealth
creation
Economic
opportunities
Prosperity –
jobs & poverty
alleviation
Improved
food
security and
Nutrition
Improved
access to
Productive
safety nets
Environmental
& Ecosystems
resilience and
sustainability
Level 2 – Agricultural Transformation and Sustained agriculture growth
Changes in
African
agriculture
resulting
from
implementa
tion of
CAADP
2.1 Increased
agricultural
production and
productivity
2.2 Functioning
national agriculture
and food markets &
increased
intra/inter-regional
trade,
2.3 Expanded
local agroindustry and
value addition
2.4 Improved
management and
governance of natural
resources (land &
Water) for sustainable
agricultural production
Malabo Declaration on agriculture transformation (2014)
1. Recommitment to the Principles and Values of the CAADP Process
2. Recommitment to enhance investment finance in Agriculture
o Uphold 10% public spending target
o Operationalization of Africa Investment Bank
3. Commitment to Zero hunger – Ending Hunger by 2025
o At least double productivity (focusing on Inputs, irrigation, mechanization)
o Reduce PHL at least by half
o Nutrition: reduce stunting to 10%
4. Commitment to Halving Poverty, by 2025, through inclusive Agricultural Growth and
Transformation
o Sustain Annual sector growth in Agricultural GDP at least 6%
o Establish and/or strengthen inclusive public-private partnerships for at least five (5)
priority agricultural commodity value chains with strong linkage to smallholder
agriculture.
o Create job opportunities for at least 30% of the youth in agricultural value chains.
o Preferential entry & participation by women and youth in gainful and attractive
agribusiness
Malabo Declaration on agriculture transformation (2014)
5. Commitment to Boosting Intra-African Trade in Agricultural Commodities &
Services
o Triple intra-Africa trade in agricultural commodities
o Fast track continental free trade area & transition to a continental Common
External tariff scheme
6. Commitment to Enhancing Resilience in livelihoods & production systems to
climate variability and other shocks
o Ensure that by 2025, at least 30% of farm/pastoral households are
resilient to shocks
7. Commitment to Mutual Accountability to Actions and Results
o
Through the CAADP Result Framework – conduct a biennial Agricultural
Review Process
What did CAADP achieve in
st
its 1 decade
CAADP in 1st 10 years --Transformation of What?
CAADP
Implementation
2
3
1
CAADP implementation & achievements
* 47 Country
Compacts
* 44 National
Investment Plans
* 29 country Business
meetings
1 regional compact &
Investment Plan (ECOWAS);
others in progress
CAADP Implementation … Progress & Lessons
Investment
Plans
 Evidence-based
planning
Policy
Reforms
 Organisation
 transparency,
development
accountability (M&E
/Mutual Accountability)
 Harmonised
National Priorities  Participation:
Inclusiveness;
& agenda
consultative
 Integrated &
 Coherence in
Comprehensive
policies
Plans & Programs
 Domestic /
International
financing
Institutions
 Comprehensive
and integrated
(across sectors)
 Inter-Ministerial
Collaboration
 “new” form of
partnerships &
alliances
 Multi-sectorialism
 Credible systems
to leverage
business sector
partnerships
CAADP on policy & investment reforms ....
Rwanda
•Stocktaking identified potential returns on investment for staple crops
•PSTA II geared towards providing incentives to produce and adopt
strategic commodities (maize, wheat, Irish potato, Livestock)
•more resources towards intensification of sustainable production systems
after investment plan and staple foods
•Agric Annual Growth rate: from under 1% in 2007 to 10% in 2013
Ethiopia
• Agriculture strong component in the country’s plan to eradicate poverty
• CAADP assisted the preparation of Ethiopia’s Policy and Investment
Framework (PIF); focus on higher rainfall areas
• Strengthened the case for institutional reforms
• Agric Annual Growth rate:8% average – 2003 to 2014
Ghana
•CAADP was central in the development of the Medium Term Agricultural Sector
Investment Plan (METASIP)
•Stocktaking highlights opportunities for increased productivity in cereals in
marginal northern areas + mechanisms for private sector inclusion
•Agric Annual Growth rate: 4%-6.2% (2001 to 2009).
CAADP Impact on Policy: Inclusive policy process
Formal
contribution to
policy dev
through Private
sector Liaison
Office in Ghana
CAADP Partnership
platform at
Continental level
Inclusive
policy
process
Central African
Republic: inclusion of
CSO rep in agr sector
working group
Kenya: Government
convened thematic
working groups incl
private sector
CAADP Africa
Platform at
Continental level
Ethiopia’s CAADP Nat.
SC made of various
government ministries
and producer
organisations
Success Stories and Progress
• About 10 of 54 African Union Member States have reached target
of allocating at least 10% of public investment in agriculture.
Among them are Burkina Faso, Ethiopia, Ghana, Guinea, Malawi,
Mali, Niger, and Senegal;
• About 10 countries have exceeded the CAADP target of 6% growth
in agricultural production: Angola, Eritrea, Ethiopia, Burkina Faso,
Republic of Congo, Gambia, Guinea-Bissau, Nigeria, Senegal,
Tanzania;
Increased public expenditures in agriculture are a
good investment but remain low (6% in average)
%
25
share of public allocated agriculture spending in total public allocated spending
expenditures; source Resakss
20
15
10
5
0
average 2003-2009
* : 2008
**: 2007
***:2006
CAADP Implementation –
Lessons
Sustaining the CAADP Momentum
• Through CAADP, countries are establishing minimum
pre-conditions to drive implementation:
o Re-establishing means and capacity to Plan
o Setting national agenda - as rallying point fostering alignment and
harmonisation (e.g. across Government policies; in donor
relationships)
o Establishing Priorities and Programmes
o Considering and building new forms of partnerships including
multi-sectorialism. Agriculture linkages and collaboration, e.g. on
infrastructure, on ICT, etc…
CAADP is also bringing (renewed) attention to:
• Regional markets and trade (intra-regional): No optional solutions at
national level. Regional trade essential for a sustainable growth
• Practical measures (incentives) to stimulate and empower private
sector to lead IMPLEMENTATION. Small-Medium Enterprises (SMEs)
essential if the success is to be inclusive and sustainable. Affirmative
policies and action may be necessary
• Attaining “economic growth” is not enough; it does not automatically
translate into inclusive development. Hence, deliberate policies
measures and possibly affirmative action is necessary to ensure
NEPAD Agency interventions
1.
“Zero Hunger” - Strengthening strategic capacity in national-regional systems
to determine country-specific pathways towards eliminating hunger
o Analytical support, including forecasting and foresight, in determining policy
options, investment pathways and conditions for success
o Public policy coherence and alignment
o Identifying regional policies and investment initiatives
o Foster public-private collaboration along the “farm-to-folk” value chains
o Foster expansion of food basket, including increasing indigenous foods
2.
Agro-Industries development and enhanced agricultural value addition
o Enhancing business incubation capacity - focus on agro-industry SMEs
o Facilitating cooperative-based organizational development for SMEs
o Services & training on production standards, packaging, storage, etc…
3.
Consolidation of CAADP NAIPs as instrument to drive policy coherence and
leveraging increased financing to agriculture
o
o
o
o
4.
Formal and legislated link and alignment of the NAIPs to NDPs and budgets
Alignment and coherence between the NAIPs and RAIPs
Strengthen NAIPs and RAIPs related monitoring capacity
Bankability of NAIP and RAIP projects – i.e. project preparation facility
Youth Employment and Women economic empowerment
CAADP in South Africa
Progress, Lessons and
Implications
CAADP Implementation in South Africa

National CAADP implementation launch in March 2011

Provincial engagement and Agricultural Investment
Plan formulation (wide stakeholder consultations)
• Between 2012 – 2014 all provinces covered except
Gautain

South Africa undertook the CAADP 10% performance
review (2012-2014)

South Africa – Active in the formulation of the Malabo
Biennial review and reporting mechanisms
CAADP – Implications and possible action areas

Agriculture holding the highest possibility and
opportunities to create employment (jobs and
entrepreneurship) for youths and rural populations

Success (critical mass and sustainable) will require:
• Multi-sectorial and inter-government
• Leveraging optimally private sector capacity and
resources (by e.g. increased public sector
investments in capital public good infrastructure)
• Facilitating inclusive consultation and dialogue
across state and non-state institutions and sectors

Youth employment and women economic empowerment
– blended public-private sector investments/ATVET;
Incubation; market development support

Accountability based on peer commitment and review

A national agricultural Investment Plan (NAIP) will
reenergize the provision drive
Overall A2063 M&E Framework architecture
Regional value
Rationale and purpose
Feedback & value to
national Action
Sharing and learning on regional integration commitments as well as individual
and aggregated national experiences and performance
Assessing against regional benchmarks, on one hand, and continental value to
national action, on the other
Identifying and brokering collaboration and joint programmes
(transnational/Intra-regional deals)
Main platforms and processes
In-country Planning,
Implementation,
Monitoring and
Reporting processes,
through:
National Development Plans
– Results Frameworks and
Budgets
Sector Plans – Results
Frameworks and Budgets
National/Sector M&E Plans
Country-specific planning
and reporting cycles and
instruments
Regional (RECs) Ministerial and Heads’ of State summits
Other platforms:
Regional Parliaments
Regional farmer Organisation policy conferences (SACAU; PROPAC; UMAGRI:
ROPPA; EEAF)
Regional private sector assemblies
Biennial
Progress and
Performance
Country
Report
Core/main input
National and Consolidated Regional Reports
Feedback and value to national
plan of action
Continental value
Rationale and purpose
Sharing and learning
Assessing against continental benchmarks, on one hand, and continental
value to national action, on the other
Identifying and brokering collaboration & joint programmes (interregional deals)
Identifying and harmonizing continental strategies and positions
(economic growth related)
Main platforms and processes
Technical sector-level ministerial conferences (STCs)
Finance and Economic Planning Ministerial conference (STC)
AU Heads of State and Government Assembly including related subcommittees (NEPAD HSGOC; PAP)
Core/main input
National, Consolidated regional and Consolidated continental Reports
(Dashboard)
29
Concluding remarks
Parliament has a critical role to play in advocating for
laws and policies to accelerate agricultural
transformation in South Africa thereby creating
employment; eliminating poverty and fostering
shared prosperity
I Thank You
Martin Bwalya
[email protected]
NEPAD Agency; Johannesburg, South Africa