Transcript ngine transforming in Sub-Saharan Africa

Agriculture as engine of growth for
transforming in Sub-Saharan Africa
Dr. Freddie Kwesiga
Division Manager, West & Central Africa
African Development Bank
([email protected])
Presentation to the Earth Institute Global Classroom
Outline of presentation
Background: the role of the agricultural
sector in the development of Sub-Saharan
Africa
A systemic approach to
transforming African agriculture
From islands of success to continental
impact: Scaling up and out through
strengthening innovation capacity
The main Challenge for Sub Saharan Africa:
Poverty!
• Approximately
180m Africans
live on less than
US$1 each day
• Livelihoods are
mainly based on
exploitation of
natural
resources—
principally
agriculture.
Source: World Bank 2004
SSA and the MDGs
Sub-Saharan Africa
may miss the 2015
target for MDG 1 if
business as usual
approach maintained
MDG
Targets
Agriculture is key in
reversing this trend,
we mst not loose
focus on this sector.
Source: World Bank, 2005
Where are the poor and the hungry?
Mainly in rural areas
and reliant on rainfed, subsistence
agriculture
Unable to grow or
buy enough food to
meet their dietary
requirements
Highly vulnerable to
risks beyond their
control
Importance of agriculture in economic growth
Agriculture along with education and health and
infrastructure were top agenda at the dawn of
independence for most SSA 50 years ago
Self reliance in food production was key
Agriculture remains the main source of livelihood
for the majority of Africans, providing:
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35% of GDP
70% of employment
40% of exports
Today, low agricultural productivity and
degradation of natural resources are accelerating
and reinforcing poverty and food insecurity.
Diversity of farming systems in Sub-Saharan Africa
Given this diversity,
recommendations
are indicative, not
prescriptive – not
“one-size-fits-all,”
but a menu of
choices from which
to develop integrated
interventions
Agricultural production system
Characteristics:
Traditional, subsistence
oriented – agriculture as
a way of life not 4 market.
Largely rainfed, low soil
fertility, low input use,
little mechanization,
Women perform the majority
of agricultural tasks, with
limited access to extension,
credit value addition, market)
Out-migration of men and
youth from to urban areas
Complex farming
systems – mixed
crops, livestock
Population growth 
pressure on land & natural
resource base
In remote villages, far
away from research and
extension, based on
farmer knowledge.
HIV/AIDS, malaria & other
pandemic diseases impacts
labor productivity
Low input, low output.
Vicious circle underlying decline
in African farmers’ livelihoods
Unfavourable
economic returns
to agricultural
production
Unsustainable
agricultural
practices
Vicious circle underlying decline
in African farmers’ livelihoods
The
vicious
circle
must be
broken!
HOW?
Cereal Yield growth among low-income countries
Countries that began with low yields in 1980 tended to
experience economic decline between 1980 and 2000
(Sachs, 2005)
Realities of African Agriculture
Low Agricultural
productivity, reflects the
failure to find and adopt
more productive farming
technologies and markets.
New technologies &
markets helped farmers in
Asia and Latin America
during the green
revolution. Farmers in
Africa did not participate
in this technological
upgrade.
The inability of African
farmers to access more
productive technologies
and markets means more
destructive methods
unable to boost
production in pace with
population growth.
One example is
shortening fallow periods,
a practice that mines
soils and can eventually
lead to actual decline in
crop yields per hectare.
need for systematic diagnosis…
Fast growing
population
Deforestation due
to expansion of
agriculture
Shortened
fallow periods
Lack of
technologies &
access to inputs
Labour
constraints
Low soil
fertility
Poor markets
and policies
Low
productivity
Weed
infestation
Long dry season,
droughts
Poverty and
Food
insecurity
Causal Flow Diagram on household poverty & food
security problems in Eastern Zambia (1988)
Overgrazing
Poor quantity
quality fodder
Realities of ag sector in SSA
Lack of access to
technology &
inputs
Weak private sector
(entrepreneurs exist,
build on these)
Inadequate
infrastructure and
land tenure
arrangements
Underinvestment in
Health, education and
research; ineffective
R&D models; weak
and unaccountable
institutions
Weak links to
markets,
lack of market
information &
incentives
Harmful policies (SAP)
Effects of globalization
Increasing land productivity through agroforestry
Clearing
Miombo
Grass fallow
continuous cropping
Poor yields
AgroForestry
systems
NPK Fertilizer
Improved fallow
Improved yields
Bundle AF with other options
Farmers need options, Identify entry points
Inorganic
Fertilizers
Water
Two routes to ag production growth –
area vs. yield growth (index, 1961=100)
Agricultural production growth in SubSaharan Africa, 1961-2001: increase
due largely to area growth (doubled),
only 1% annual increase in yields
Ag production increases in South
Asia due to yield (productivity)
increases (3.6% p.a.);
very slight increase in area
Source: Henao & Baanante (IFDC). African Fertilizer Summit, Abuja, June 2006.
http://www.africafertilizersummit.org/Background_Papers/03%20Henao%20and%20Baanante--Agricultural%20Production.pdf
Cost of Fertilizer in Europe (FOB): US$ 90
(Sanchez, 2001)
Reversing the decline of agriculture requires
implementation of CAADP
Improving
infrastructure and
trade-related capacities
for market access
Agricultural research, technology uptake and adoption
Interventions should be systemic  in turn calls for partnership
and institutional mechanisms for working in this model
What are the relevant sub-systems
that interact in SSA agriculture?
Natural
resources/
biophysical
environmt
Policies
and
markets
Global
politicaleconomic
system
Research and
University
Knowledge
systems
Infrastructure
Health and
education
systems
Private
sector
for value
chain
Building Infrastructure is key to the
success of agric sector..
Urgent need for more and better:
•
Transportation infrastructure: roads, waterways
ports, railways, research, education,
health…
Urgent
need
•
to end
the and
Investments in water systems: dams,
large
drudgery
of of
small-scale irrigation systems, wells
and most
all; water harvesting and storage atcollecting
farm level
water & fuel
 women’s
solar
powered)
burden
•
Provision of fuel and energy ( e.g
in rural areas
•
Communications (use of IT is key, see cellphones)
•
Investments in agro-industries (processing of
agricultural products)
Agriculture in SSA could gain more
ground if ….
Challenges
Farmers produce what market
requires (product mix, quality)
Unavailability of quality seed
Very low use of fertilizer (Africa
averages 12kg/ha, vs. 150Kg/ha
in India and > 400kg/ha in Japan)
Lack of (timely) credit
High post-harvest losses
Little processing of production
(value-adding activities) in rural
areas
High costs of transport to urban
markets
Responses
Improve access to market information, quality standards, etc. (e.g.,
market info delivery via cell phone)
Partnerships emerging, (AATF,
CGIAR, PVT sector)
Increase availability of fertilizer,
engage private sector (stockists)
in distribution(AFFM at AfDB, GR)
 microfinance, esp. for women
Increase investments in postharvest storage and processing
activities (machinery, training),
incl.  role for private sector
 roads, farmer transportation
cooperatives,  regional markets
African agriculture has registered
some successes
Varietal improvements (NERICA rice mosaic resistant
cassava, IR maize, etc.)
Increased use of inputs (soil fertility, fodder, pest
management)
Improved water capture and use (irrigation)
Infrastructure (roads, dams) to support the above
However, these have not had broad impact due to:
• Poor linkages between production, processing,
trade/marketing and consumption( value chain)
• Inadequate human and financial resources
• Weak institutional frameworks, including lack of
partnerships for addressing these issues
Local
variety
Experimental
Signs of hope: Greater input availability
Increasing the availability of inputs
recognized as essential to jump-starting
agricultural growth, e.g.:
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African Fertilizer Summit (Abuja 2006)
AGRA initiative (Gates & Rockefeller Foundation
Alliance for a Green Revolution for Africa)
Millennium Villages initiative, Malawi story
Growth of private sector seed companies
AfDB African Water and Fertilizer Facilities
Initiatives supporting micro-credit, microfinancing ( drawing from Grameen Bank)
AfDB, World Bank investments in infrastructure
(roads, irrigation systems, markets)
CAADP agenda
Signs of hope: IT, private sector
Emergence of IT (internet, cell phones)
breaks down knowledge and information
barriers (but more is needed to reduce
costs and improve available information)
Gradual increases in private sector
involvement in African agriculture
(recognize and empower Private sector
from community perspective such as
shopkeepers, transporters in value chains
need to become more profitable, better
linkages to markets for this to take off)
Successful models as example of
innovation system initiative
EXAMPLE 1: outgrower schemes are
transferring knowledge and income
sources to farmers in Mozambique and
many other African countries.
innovation systems
EXAMPLE 2: Agroforestry/INRM to
improve livelihoods o.f Kenyan Milk
producers for the Nairobi Market
innovation systems
EXAMPLE 3: Organizing women
farmers to improve access to
inputs and markets in Malawi and
Western Kenya. Fertilizers sold in
small affordable packets ( like salt,
sugar, paraffin etc)
Scaling up & out of successful innovations
Documenting success
stories and farmer
innovations
Understanding farmer
practices of technology
adaptation
Perfecting use of extrapolation domains (GIS)
Strengthening knowledge
sharing processes
Fostering enabling
environments (policies,
market incentives, etc.)
Source: Douthwaite (2003), IIRR (2000)
Conclusions (1)
Our goal must be to make African agricultural
at profitable, and pleasurable – to attract the
youth, create jobs. This calls for renewed
investment and focus on Africa’s rural poor
“Putting farmers first” – empower farmers to
drive the development process
Reaching Africa’s women farmers with inputs &
technology, and improving their education,
health, economic returns and empowerment, are
key drivers to the development process
Major investments in sustainable soil and water
management are required, especially in light of
climate change
Conclusions (2)
More value-adding activities need to be created
at the village level – to generate
more jobs and stem out-migration of Africa’s
rural youth.
Partnerships outside agric sector are key
Slowing population growth and improving
the skills & health and education of rural
people are essential for sustainable
improvements in rural livelihoods
Interventions must be grounded in a systems
approach and long term planning
Good science and good policy, good
governance must underlie all our efforts.
Thank you for
your attention