Transcript Slide 0 - World Bank

IFC in the Agricultural Sector
September 2011
IFC’s Approach in Agriculture is Part of Integrated World Bank
Group Action Plan
World Development Report
2008
WBG Agriculture Action Plan
FY 10-12
Five areas of joint focus:
A. Agriculture based countries
(mainly SSA and Asia): GDP
growth through agriculture
1. Raise agricultural productivity
C. Urbanized countries (e.g.,
Brazil, Ukraine, Russia):
Contribution to global food
supply, reduced rural poverty,
growth in export crops and
increased food safety
Food
B. Transforming countries (e.g.,
China, India, Indonesia,
Morocco): Higher value
products and linkages with the
non-farm economy
Financial Crisis
Differentiated approaches for:
2. Link farmers to markets and
strengthen value chains
3. Reduce risk and vulnerability
4. Facilitate agricultural entry
and exit and rural non-farm
income
5. Enhance environmental
services and sustainability
• Key Elements
of the IFC
Global
Agribusiness
Strategic
Action Plan
(ASAP)
• IFC ASAP a
Collaborative
WB-IFC Effort
with full
integration of
WB and IFC
Agribusiness
Teams
SOURCE: World Development Report 2008: Agriculture for Development; World Bank Group Agriculture Action Plan FY10-12
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Agribusiness – IFC’s Strategic Priority
IFC's Commitments in Agribusiness,
US$ Billions
Development Impact
• IFC investments made directly in the agricultural sector during FY11 are
expected to:
• provide direct employment to 150,000 people, including 60,000
women,
• reach 870,000 farmers (equivalent to 4.4 million people supported)
• Reach about 90,000 micro, small, and medium enterprises.
• IFC Development Goal Targets:
• FY11: 200,000 farmers reached
• FY14: 800,000 farmers reached
Target
IFC'S AGRIBUSINESS PORTFOLIO BY REGION
US$4.5 bln
IFC'S AGRIBUSINESS PORTFOLIO BY SECTOR
US$4.5 bln
Food Retail
Financial 10%
Markets
6%
Fertilizers
11%
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Agri
Infrastructure
4%
South Asia
9%
Middle
East/North
Africa
20%
Agri
Production
and
Processing
69%
Africa
9%
East Asia
13%
Europe and
Central Asia
23%
Latin America
26%
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IFC’s Strategic Objectives in Agriculture
 Contribute to Enhancing Food Security (e.g. increased investment,
enhanced productivity)
 Contribute to Enhancing Economic Development and Inclusiveness (e.g.
focus on smallholders, women, risk management)
 Make Environmental and Social Sustainability a business driver (e.g.,
resource utilization and efficiency)
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Areas of Focus
 Enhance productivity through improved access to key agricultural
inputs, dissemination of best practices, investment in modern and
sustainable farming
 Help mitigate price and weather-related shocks through
developing and rolling out risk management products
 Support agri SMEs access to finance, access to market and access
to technology and inputs through agricultural and financial
intermediaries and service providers
 Reduce post harvest waste and losses through improved
agricultural practices, logistics and infrastructure
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Integrated Agribusiness Value Chain Approach
Investment Climate
Infrastructure, PPPs
Input
producers
and distributors
Farmers
Traders
Food
Processors
Consumers
Distributors
Retailers
Financial/Risk Management Products
Advisory/Technical Assistance
6+ billion
Environmental and Social Ecosystem Services
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Enhanced IFC Environmental and Social Framework and Tools
6
Revised Performance Standards & Procedures
 Introduced requirement to reduce energy/water intensity
 Lowered GHG threshold for reporting to 25,000 tons CO2 equivalent per year
 Increased attention to supply chain (labor and critical habitats)
 Adopted Free Prior Informed Consent for Indigenous Peoples
 Changes to Categorization System (both real sector and FIs)
 Adopted new regime of information disclosure throughout the project cycle,
including ESAP's implementation progress and DOTS.
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Early E&S Risk Assessment and Screening Tool
Country-level
 National policy (international conventions, agricultural policy)
 Legal framework/Enforcement (labor law, environmental regs, land
rights/tenure)
 Physical and human infrastructure (transport, health, education)
Sector/Project-level
 Workforce (wages, working conditions, sub-contractor suppliers)
 Client reputation
 Land ownership/tenure/disputes
 Current and previous land use (no primary forest conversion)
 Environmental assets/services (biodiversity, water, etc)
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Thank You
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