Bank’s Agricultural Strategy in Africa:
An Update
The Context in 2011
In Africa (and the world)

Global food (and fertilizer) prices


Refocused SSA Governments


Donors willing (Aquila G20 USD 20 billion engagement), but able (GAFSP commitments < USD 1 b)?
Private sector interest and finance


has energized definition of country-owned programs, but inflated expectations on external financing, has
been of variable quality and transactions-intensive
Donor finance flows


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


spikes in 2008 and 2010 threaten the poor, and social stability, while offering potential incentives to
farmers
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
2
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
3
14
12
Agriculture expenditures/Total expenditures
Seychelles
Congo, Rep.***
Guinea Bissau**
Djibouti**
Congo, Dem. Rep.**
Comoros****
Kenya*
Cote d'Ivoire**
Liberia*
Morocco***
Tanzania
Central African Rep.**
Sierra Leone***
Egypt***
Uganda
Rwanda***
Botswana**
Lesotho**
Mauritius
Angola**
Swaziland**
Mozambique**
Zambia**
Madagascar**
Burundi**
Cameroon***
Nigeria
Benin
Chad**
Gambia**
Mauritania***
Sao Tome and Principe**
Zimbabwe**
Tunisia***
Sudan**
Namibia**
Togo
Ghana***
Ethiopia*
Niger
Mali
Malawi**
Burkina Faso
Senegal**
Guinea
1220
1200
1180
1160
1140
1120
1100
1080
1060
1040
1020
1000
Agriculture expenditure share in total
(%)
Progress: Sector Performance
Cereal Yields (kg/ha)
5 yr moving average
Real Agricultural GDP
(28 countries value weighted)
5.0
4.0
3.0
4
# of countries > 5%/yr
2.0
1.0
3
2000-04
CAADP 10% Target
Sources: ReSAKSS Comprehensive Monitoring and Evaluation Report, April 2010
4
2001-05
8
2002-06
* = 2009
** = 2007
*** = 2006
**** = 2005
5
2003-07
16
Public Spending
10
8
6
4
0
2
4
0.0
2004-2008
Progress: sector performance
5
Trends in agricultural GDP and per capita
agricultural GDP in Sub-Saharan Africa
60
100
20
90
80
50
70
40
60
30
15
Imports
Exports
10
50
5
40
0
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
20
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
US$2000 Billions
AgGDP/c
apita
$US2000 billionis
AgGDP
70
25
110
US$2000 per person
80
Value of agricultural exports and imports
Sub-Saharan Africa (1970-2008)
Progress: Financing Composition of WB Funding
Annual Average
$437m
$1290m
$1123m
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FY08
Land & Water Mgt
FY09-10
Markets & Infrastructure
Food Security & Vulnerability
FY11-12
Agricultural Technology
Food security response shifting to fundamentals: soil and water
management, markets, technology
6
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)
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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)
8
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
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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
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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
11
Pillars (4) - Technology

Research projects
o
o
o

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 freestanding agricultural research projects
Spill-in through South-South partnerships (EMBRAPA and innovation grants)
Extension
o
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
o
Regulatory underpinnings for new seed technologies; national and regional capacity being built

Climate change - impacting research/extension priorities

Good practice projects
o
o
West/East Africa Agriculture Productivity Projects
West Africa Regional Bio-safety Project
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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
13
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.
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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
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