advancing - undp · project introduced improved variety and management practices for production and...

AdvAncing RegionAl

AgRo-food vAlue chAins

in AfRicAKnowledge Sharing Report

AdvAncing RegionAl



AdvAncing RegionAl



AdvAncing RegionAl



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AcKnoWledgeMenTs

We would like to thank all the individuals who have contributed to this publication. We are in particular very grateful to Ziad Hamoui, Tinashe Kapuya, Festus William Amoyaw, Doreen Marangu, Josephine Nguta, Juliana Asante-Dartey, Whytson Sakala, Nassirou Ba, Nikita Eriksen-Hamel, Stephane Duval, Sarah Goetz, Coffie Mawuli, Marc Van Uytvanck, Joseph Dever, Bernard Rey, Gem Argwings-Kodhek and Elizabeth Atyang-Eilor for their time and effort to help produce this publication.

Authors: UNDP Regional Service Center for Africa: Tomas Sales, Pascale Bonzom and Nazila Vali with support from Dan Acquaye.

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ABBReviATions

AFIM African Facility for Inclusive MarketsAHBFI Africa Harvest Biotech Foundation International ASARECA Association for Strengthening Agricultural Research In East And Central AfricaASNAAP Agribusiness in Sustainable Natural African Plant ProductsAU African UnionAUC African Union CommissionBCtA Business Call to ActionBDS Business Development ServicesCAADP Comprehensive Africa Agricultural Development ProgramCOMESA Common Market for Eastern and Southern AfricaCSOs Civil Society Organizations DIP Deeper in PyramidEAAPP East African Agricultural Productivity ProjectEAC East African CommunityEADD East African Dairy DevelopmentEAGC Eastern Africa Grain CouncilEASETA Eastern and Southern Africa Embryo Transfer AgencyEAML Eastern Africa Maltings LimitedEASR East Africa Sub-Regional ECA Economic Commission for AfricaECOWAS Economic Community of West African StatesECOWAP ECOWAS PolicyEPFC Eastern Province Farmers CooperativesETLs ECOWAS Trade Liberalization SchemeEU European UnionFAO Food and Agriculture OrganizationFAOSTAT Food and Agriculture Organization StatisticsFARA Forum for Agricultural Research in AfricaGIM Growing Inclusive MarketsHACCP Hazard Analysis Critical Control PointsICBT Informal Cross-Border TradeIGAD Inter-Governmental Authority on DevelopmentIMD Inclusive Market DevelopmentISRT Inter-States Road TransitKARI Kenya Agricultural Research InstituteM&E Monitoring and EvaluationMDGs Millennium Development Goals MOA Ministry of AgricultureMOLD Ministry of Livestock DevelopmentNEPAD New Partnership for African Development

NGO Non-Governmental Organization

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NMCs National Monitoring Committees NPCA NEPAD Planning and Coordination AgencyNTBs Non-Tariff BarriersPCDA Programme Compétitivité et Diversification Agricoles (Mali)PFPs Project Facilitation PlatformsPLAZA Périmètre Logistique Aménagé en Zone AéroportuairePMP Performance Monitoring PlanPO Producer OrganizationRATIN Regional Agricultural Trade Intelligence NetworkRCoE Regional Centres of ExcellenceRDCoE Regional Dairy Centre of ExcellenceRECs Regional Economic CommunitiesSADC Southern Africa Development CommunitySASR Southern Africa Sub-Regional SESS Smart Extension and Service DeliverySMEs Small and Medium EnterprisesSMP Skim Milk PowderSMU Sorghum for Multiple UseSOPMEP Sahelian Onion Production and Marketing Expansion ProgrammeSPS Sanitary and Phyto-SanitarySTRs Structured Trade RegimesTADS Trans-boundary Animal DiseasesTBT Technical Barriers to TradeTCP Technical Cooperation ProgramTEN Trade and Enterprises NetworkUCCAO Union Centrale des Coopératives Agricoles de l’Ouest (Cameroon)UEMOA West African Economic and Monetary UnionUNDP United Nations Development ProgrammeUNGC UN Global CompactUSAID United States Aid for International DevelopmentUSD United States DollarWASR West Africa Sub-RegionalRECs Regional Economic CommunitiesETLS ECOWAS Trade Liberalization SystemICBT Informal Cross-Border TradeWFP World Food ProgrammeECF East Coast FeverTBT Technical Barrier to TradeART Assisted Reproduction TechnologyWAEMU West African Economic and Monetary UnionWRS Warehouse Receipt System

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conTenTs

inTRoducTionpage 14

1.1 Backgroundpage 15

1.2 Gender Considerationspage 16

1.3 Climate Change Considerationspage 17

1.4 Goals and Objectivespage 18

1.5 Approach and Methodologypage 19

The RegionAl diMension of AgRiculTuRAl vAlue chAinspage 20

2.1 Need for Regional Value Chainspage 21

2.2 ECOWAS Regionpage 212.3 EAC/COMESA/SADC Regionpage 22

undP’s MicRo cAPiTAl gRAnT cATAlYTic APPRoAch page 24

3.1 Backgroundpage 25

3.2 Regional Platforms and Selected Projectspage 26

3.3 Micro Capital Grant Catalytic Funding Processespage 28

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ABBReviATionspage 4

glossARY of KeY TeRMspage 8

eXecuTive suMMARYpage 9

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oTheR RegionAl AgRo-food vAlue chAins iniTiATivespage 46

4.1 Projectspage 48

4.2 Studiespage 85

The engAgeMenT of The PRivATe secToRpage 94

KeY lessons And RecoMMendATionspage 98

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glossARY of KeY TeRMs

cATAliTic fund

A relatively small fund that focuses on a key issue but hold the capacity to trigger transformative change.

iMPAcT invesTMenT

Impact investments are investments made in companies, organizations and funds with the intention of generating measurable social and environmental impact in addition to financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances”... “Impact investments can be made across asset classes, including but not limited to cash equivalents, fixed income, venture capital and private equity (The Global Impact Investing Network (GIIN)).

MicRo-cAPiTAl gRAnT

UNDP provides micro-capital grants for non-credit purposes as inputs to its programme and project activities. Micro-capital grants are provided to support the activities of non-governmental organizations (NGOs) and community-based organizations (CBOs). An individual micro-capital grant may not exceed $150,000. A recipient organization may receive multiple grants provided the grants do not exceed on a cumulative basis $300,000 within the same programme or project.

PATienT cAPiTAl

The term patient capital can be used to describe any capital invested for the long term. In recent years, however, it has increasingly been used to describe long-term investment in socially responsible ventures by investors who might be looking for non-financial as well as financial gains (Financial Times).

RegionAl cRoss-BoRdeR vAlue chAin

Production, processing, trade and investments organised within so-called regional value chains where the different stages of the production process are located across different countries within one region.

vAlue chAins

A value chain is a sequence of related value adding business activities for a specific product or service, from primary production through processing, transformation, marketing, and up to the final sale of the particular product to consumers. In this toolkit supply chains and value chains can be used similarly.

vAlue chAins develoPMenT

Development programmes that aim to improve activities and relations in a value chain by analysing value chains in a wider context and as such also considering the impact of the meso and macro environment on a value chain.

Advancing Regional Agro-food value chains in Africa Knowledge sharing Report

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eXecuTive suMMARYThe theme of advancing regional agro-food value chains in Africa is of particular relevance in the current context of a dynamic emerging economy and a strong commitment to promote structural transformation of the continent in the wake of the 2063 agenda for Africa. Supporting a more coordinated and coherent approach between the various development partners and the public and private sector to support regional agro-food value chains is vital both for Africa’s attractiveness and economic performance and for its harmonious integration into the world economy.

Developing regional markets and promoting investments through public-private-partnerships are crucial approaches to pursue food security objectives in Africa, as shown in the commitments of African Union Heads of State in the Malabo Declaration. Notwithstanding, the efforts the Regional Economic Communities (RECs) as well as individual programmes from Development Partners have demonstrated in support to the development of cross-border regional agro-food value chains, the number of development actors working in the field of regional agro-food value chain development remain small and we still hold little knowledge about what works and what does not work.

The objectives of this report as stated in chapter 1 is to gather information, best practices, and lessons learnt on what works and does not work in terms of advancing regional cross-border agro-food value chains in Africa.

chapter 2 discusses the regional dimension of agricultural value chains while going in detail into the challenges and progresses made by the Economic Community of West African States (ECOWAS), the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern

African Development Community (SADC).

Over the past few years, UNDP has assisted regional institutions and farmers’ organizations for inclusive regional value chain development. In November 2010, UNDP launched a regional project titled “Private Sector and Inclusive Market Development for Poverty Reduction in Africa: African Facility for Inclusive Markets (AFIM)”1 aimed at addressing more strongly private sector development and engagement issues in Africa in support of the accelerated achievement of the MDGs. Between 2012 and 2014 AFIM provided catalytic funding under a Micro-capital Grant modality to selected value chain development initiatives in the agribusiness/agro-industries sectors. One of the key elements of UNDP-AFIM’s catalytic funding approach was to support the development of the African food industry through inclusive markets and value chain development.

The six regional agro-food value chains supported by UNDP as presented in chapter 3 show that a regional approach to agro-food development facilitates technology transfer, skills development, economies of scale, business model replication, and business-to-business alliances. The projects demonstrate key measurable impact on smallholder, intra-African trade and productivity enhancement. The critical need for innovative financial products that will enable farmers and other stakeholders to participate fully in agribusiness development was made clear in all the regional agro-food value chains supported by UNDP.

In East Africa, a sorghum project was funded in Kenya and Tanzania, while a dairy project was funded in Kenya and Uganda. In sorghum, the project aimed at introducing improved Sorghum for Multiple Use (SMU). The introduction was supported by improved 1http://www.undp.org/africa/privatesector

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management practices through extension services. In addition, vertical linkages between farmers, traders/aggregators and breweries were introduced to create an inclusive market for sorghum farmers. The case of Sorghum Pioneer Agencies/Gadam Link Centre in Tharaka nithi-Kenya is given as an illustrative case study of an aggregator. In dairy, the project introduced Smart Extension Support Service (SESS). This was done by embedding extension services in Producer Organizations (PO) by training extension agents for dairy cooperatives. The case of Taragoon Dairies Company is given as a successful Cooperative in Kenya.

The Western Africa projects included onions in Burkina Faso and Ghana and a mangoes project covering Burkina Faso, Côte d’Ivoire, Mali and Ghana. In the case of onions, the project introduced improved variety and management practices for production and post-harvest technology including improved storage facility, locally fabricated in which farmers could store onions for up to three months to improve their prices and incomes. The case of an onion trader in Zepilla-Ghana illustrates how improved supply of onions can generate a successful domestic and cross border trade in Onions. For mangoes, the project involved capacity building of mango producers, traders and exporters to improve the quality of West African mango exports. This was done by producing a mango quality manual for training and linking farmers to exporters who were to act as incubators in training on quality. The case of a successful woman mango farmer/exporter in Côte d’Ivoire is used as an illustration.

In Southern Africa a groundnuts project was funded in Zambia and a soybeans project in Mozambique. The objective of the groundnuts project by Eastern Province Farmers’ Cooperative (EPFC) was to increase productivity and production of groundnuts, by


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capacity building of farmers in production and quality especially in relation to afflation control. At the cooperative level, the funding was for an improved warehouse with improved afflation testing laboratory aimed at improving quality of exports. The story of Masulani with the Eastern Province Farmers Cooperatives (EPFC) in Zambia benefiting from better varieties, seeds and farming practices illustrates this example. The soybeans project was aimed at scaling up production by smallholder through assistance in provision of inputs (animal traction, equipment, fertilizer and chemicals) and proper management practices to increase productivity and production. Analysis of the economics of draught power operations vis-à-vis manual operations by a woman farmer in Chingwirizane Group in Mozambique is used to demonstrate the potential for mechanization.

There have been other initiatives in regional agro-food value chains promotion in Africa, some at the programmatic level and some at the research and policy level. Seventeen projects and four studies are highlighted in chapter 4 from the proceedings of the knowledge sharing workshop on regional cross-border agro-food value chains in Africa (held in Accra in April 2016) and additional research.

DFID is implementing two regional agro food value chains projects: the (1) Food Trade East and Southern Africa programme (FoodTrade ESA) and the (2) West Africa Food Markets. FoodTrade ESA’s budget is reaching USD 55 million in support of regional agro-food value development in maize, rice, beans and soya production. The West Africa Food Markets operating in Ghana, Nigeria, Niger and Burkina Faso, focused on maize, millet, sorghum and cassava production with a budget of USD 15 million.

GIZ supports four initiatives in that space. Firstly, they have allocated the equivalent of USD 110 million to the (3) Competitive African ©

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Cotton Initiative (COMPACI) since 2009 with the objective to strengthen the capacity of 700,000 cotton farmers in 12 countries in Sub-Saharan Africa. Secondly, the (4) African Cashew initiative (ACi) is aiming at supporting the competitiveness and incomes of 430,000 smallholder cashew producers and of its processors and other actors in the value chain in 5 countries in Africa with a budget equivalent to USD 28 million. The (5) Competitive African Rice Initiative (CARI) is the third project supported by GIZ with a budget equivalent to USD 28 million aiming at assisting 122,000 farmers to become more competitive and enjoy greater access to markets. Finally, GIZ partnered with (6) Sustainable Smallholder Agri-Business in an investment amounting USD 18 million, with the objective to improve the sustainability and competitiveness of diversified cocoa smallholdings through 300,000 farmers in Nigeria, Cameroon, Côte d’Ivoire and Ghana. Since 2009, the GIZ, leveraging the capacity of the private sector have reached 1.4 million people directly and 8 million rural people livelihoods have been improved in Africa.

The (7) Africa Enterprise Challenge Fund (AECF) awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Its purpose is to improve incomes of smallholder farmers and the rural poor. The 244 million USD funding provided by seven donors is targeted at specific countries or at development corridors involving several countries, and companies must match the funding provided by the AECF.

The European Union is supporting two value chains initiatives at the regional level; the (8) 45-million-euro All ACP (Africa-Caribbean-Pacific) Agricultural Commodities Program focused on piloting and expanding the

use of protected agriculture (PA) systems through capacity building and infrastructure enhancement in roots and tubers, cassava, cotton, fruits and vegetables value chains and (9) the Agriculture Financing initiative (AgriFI) which is a new 200-million-euro initiative for achieving inclusive and sustainable agricultural growth on value chains.

USAID’s Feed the Future Initiative (FTF) was launched in 2010 to address global hunger and food insecurity. The main objectives of the initiative are the advancement of global agricultural development, increased food production and food security, and improved nutrition particularly for vulnerable populations such as women and children. Under this initiative USAID’s different portfolio in Agricultural value chains include the (10) West African Seed Program (WASP), the (11) West Africa Fertilizer Program (WAFP), the (12) Feed the Future Food Across Borders Program (PROFAB) and the (13) West Africa C4 Cotton Partnership Project. In addition, the USAID (14) West Africa Trade and Investment Hub and the (15) East Africa Trade and Investment Hub and were initiated in 2014 for 5 years with an estimated value of respectively USD 102 and 65 million in new investment. The objectives of these two hubs are to deepen regional integration, increase the competitiveness of select regional agricultural value chains, promote two-way trade with the U.S. and facilitate investment and technology. The (16) Southern Africa Trade Hub was initiated in 2010 with an estimated budget of USD 80 million to increase international competitiveness, intra-regional trade, and food security in Southern Africa.

Finally, the (17) East African Agricultural Productivity Project (EAAPP) is a World Bank funded project worth USD 90 million aiming at strengthening Regional Centres of Excellence (RCOEs) in agricultural research in Ethiopia, Kenya, Tanzania and Uganda, and at


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supporting them in the production of selected varieties of improved seeds to increase access of poor farmers to more productive varieties.

Four studies on regional value chains have also been identified.

The (18) Strategic Orientation Document for Mango Value Chain in the Economic Community of West African States from ECOWAS was supported by the ITC and Global Affairs Canada. The objective of the strategy launched in 2012 is to increase the volume of mangoes for export, domestic and regional market and to improve the competitiveness of enterprises operating in the regional value chain for value added products including fresh and processed.

The (19) ‘Regional Integration: Agricultural Value Chains to Integrate and Transform Agriculture in West Africa’ study by the UNECA Sub Regional Office of West Africa (SRO/WA) explores solutions for accelerating the achievement of the objectives of NEPAD, CAADP and ECOWAP, in order to generate high growth based on agriculture for a more rapid emergence of the African continent in general and of West Africa in particular.

The second UNECA study (20) on regional value chains and clusters development in support of the implementation of the CAADP Strategy is focusing on the development and promotion of strategic regional agricultural value chains, agribusiness and agro industries. The main objective of the study is to identify priority strategic Agro-regional value chains and relevant agribusiness and agro industrial clustering possibilities to boost intra African investment and trade in intermediate in agriculture as well as high valued agro food products. It further aims at identifying and assessing specific transformative policy interventions, which hold out the greatest

potential for promoting competitive agro regional value chains, agribusiness and agro-industrial clusters within specific regions to include, trade and transport corridors within the Africa regions.

USAID (21) ‘Regional Strategy for the Staple Foods Value Chain in Eastern Africa’ published a five-year regional strategy for the staple foods value chain in Eastern Africa in collaboration with its regional trade association partner, the Eastern Africa Grain Council (EAGC) in 2010. This strategy is regional and employs an approach that differentiates between issues that are national in nature and those that are best addressed from a regional perspective.

chapter 5 details the key lessons and provide recommendations for future programming. The main lessons from projects funded by development partners show that the quantum of funds leveraged from the private sector under regional approach is far greater than the aggregation of leveraged fund from country-level. The regional approach provides more incentives to the private sector, facilitates and smoothens cross-border and intra-Africa trade more than efforts by individual actors operating at local level. It stimulates agro-processing and value addition and facilitates linkages among value chain operators across and within the region. It is recommended that Governments, RECs and Development Partners invest in areas that will incentivise the private sector to invest in value addition and agro-processing within agricultural value chains. More investments are required to scale up the current trend of impact investments, private sector matching funds and challenge funds. Some bodies are encouraged to promote investments that focus on value addition including nutrition to move Africa from being a food-producing continent to a agro-industrialized continent.

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1.1 Background Agriculture continues to drive most economies of Africa. Agriculture supports the livelihoods of 80 percent of the African population, provides employment for about 60 percent of the economically active population, and for about 70 percent of the poorest people on the continent. The global financial and food crises have brought agriculture into sharp focus, demonstrating that poverty and food insecurity go hand in hand. Agricultural growth is a proven driver of poverty reduction. When agriculture stimulates growth in Africa, the growth is twice as effective in reducing poverty as growth based in other sectors.

Concerned that there is limited progress made in agro-industries and agribusiness development hampering value addition and competitiveness of Africa’s products in local, regional and international trade, African heads of state have resolved to ensure that agricultural growth and transformation process is inclusive and contributes at least 50% to the overall poverty reduction target by creating and enhancing the necessary appropriate policy, institutional and budgetary support and conditions.

Key among the declarations on African agriculture development is a Commitment to Boosting Intra-African Trade in Agricultural commodities and services by harnessing markets and trade opportunities locally, regionally and internationally. Agricultural marketing in Africa is however faced with problems of scattered production of smallholders, poor infrastructure, volatility of markets, challenge in domestic and regional integration of markets, lack of business services and inadequate financial services. Stronger value chain linkages and stronger market institutions (providing structure and support to trade activities, establishing standards, regulations, policies and services

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to coordinate and support trading activities) are critical in addressing Africa’s agricultural market challenges, reducing the costs and risks of farmers as well as other value chain actors.

The UNDP-AFIM’s catalytic fund is one of the funding instruments that promote the African food industry through inclusive markets and value chain development by addressing some of the production, value chain relations and market institution challenges. From 2012 to 2014, micro capital grants were provided to six value chain projects: sorghum in Kenya and Tanzania, dairy extension in Kenya and Uganda, onions in Burkina Faso and Ghana, Mangoes in Mali, Ghana, Côte D’Ivoire and Burkina Faso, groundnuts in Zambia and soybeans in Mozambique. These projects have been profiled in chapter 3 to provide readers an in-depth understanding to promoting the ecosystem of regional value chain towards inclusive growth and intra-regional market development. Other Development Partners have equally invested in interventions that tackle market related challenges within African agricultural value chains.

1.2 Gender Considerations

As countries industrialize and strengthen their position in global markets, their modern agricultural value chains grow and become more sophisticated. Although such value chains are changing the gendered structure of employment and better educated women often compete fairly well with men for quality jobs, gender stereotypes that keep vulnerable women in lower paid, less skilled and more insecure work within the value chain still persist. In both traditional and modern agricultural value chains, women often face less favourable employment conditions than men. For example, women are commonly hired as temporary or casual workers while men predominate in permanent positions. Women also predominate in unstable and flexible jobs

that lack social security and other benefits, and are often the first to lose their jobs during economic downturns. As such, advancing regional cross-border agro-food value chains also mean ensuring gender equality throughout the chain as well as preventing traditional patterns of gender discrimination from being repeated.

By declaring 2015 year of women’s empowerment and 2016 year on Human rights focusing on women’s rights, African leaders demonstrated their political will to address gender inequality and to overcome barriers to women economic empowerment. The African Union Commission prioritized financial inclusion and women economic empowerment focusing on the agricultural sector, which significantly benefits from the contribution of many rural African women. Hence, the AU through Agenda 2063 including the CAADP, seize the opportunity to continue to support and promote the role of African citizens, particularly of women, as key drivers of the continent’s development. Women rural farmers face various constraints, like time and mobility constraints, illiteracy, legal and cultural constraints and discrimination, especially as they relate to access to assets such as land. In addition, women rural farmer’ in Africa continue to labour in the 21st century with out-dated means such as the hoe, the machete, pestle and mortar, grinding stone used in the 15th century to feed 900 million people on the continent. It is now key to leverage women’s untapped capabilities and potential in agriculture and agri-business to ensure that the AU’s various agendas and goals are met.

To this vain, the AU sought the support of UNDP towards enhancing the productive capacities of women as well as to ensure economic and political empowerment. On gender in

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the agriculture front, UNDP is supporting the AU through the project “Building an enabling environment for women’s economic empowerment and political participation in Africa”, to ensure that the potential of women in agriculture and agribusiness is fully tapped into. This project is complementary to the efforts made by UNDP to support the AU agriculture agenda in Africa and will be leveraged but not duplicated as part of its work on regional agro-food value chains in terms of lessons learnt and best practices in programme implementation and design. Among other activities, the gender project is working towards enhancing the capacity of the African Union and RECs to support gender responsive agricultural investment and contributing to the improvement of Women and Youth entrepreneurs’ skills, and access to financing and business development services. The project includes key interventions to promote improved agricultural productivity, showcasing and up scaling of successful models for enhancing women’s access to Credit Insurance Scheme and ICT based models for access to extension and marketing information. In order to boost women’s access to land and agricultural assets, the initiative supports the implementation of regional and national commitments to the AU policy framework for enhancing women’s access to land. It also supports the mobilization of dedicated resources for women in existing AU and CAADP investment plans. To enhance the profitability of African Women’s farming enterprises, the Initiative supports the strengthening and up-scaling of women led and managed cooperatives and promotes RECs programs that facilitate access to regional markets. The project will be organizing a continental event on women and land tenure in February whose outputs will be taken into account by this event.

1.3 Climate Change ConsiderationsThe Fifth Assessment Report (2014) of the Intergovernmental Panel on Climate Change (IPCC)2 describes Africa as the most vulnerable continent in the world: climate change is already having a negative impact on food security, especially through agriculture, affecting major crops, livestock production and fisheries. Agriculture in turn contributes significantly to climate change: globally, it is responsible for 18-31 percent of greenhouse gas (GHG) emissions, with African agriculture accounting for 15 percent of the total amount globally emitted from agriculture.

Climate change is significantly impacting the entire value chain of the agro-food sector and is predicted to continue to influence the quality, quality and availability of food production on the African continent. The impact is likely to be felt across a range of activities along the chain, including the availability and security of raw materials, the length of growing seasons, harvest patterns and the costs of transportation and manufacturing.

Even though farmers have dealt with climate risks throughout the history of agriculture, climate change is now significantly increasing the intensity, frequency and variety of those risks. Rising temperatures, changing rainfall patterns, and more severe weather events are being observed. These risks threaten the long-term benefits of agricultural value chain projects, which are often designed to reduce poverty and improve livelihoods of smallholder farmers.

Regional agro-food value chains initiatives in Africa must now more than ever address how value chains are impacted by climate change and climate variability, how they can effectively respond through adaptation and mitigation strategies and what are the impacts of such responses to value creation and competitive advantages in value chains. 2https://www.ipcc.ch/report/ar5/

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In July 2009, at the 13th AU Summit, African leaders stressed the urgency of addressing the multiple objectives of food security, development and climate change, which led to the adoption of the African Union Commission – New Partnership for Africa’s Development (AUC-NEPAD) ‘Agriculture Climate Change Adaptation-Mitigation Framework’ in 2010. This was a response to the fact that the AU Maputo Declaration that launched the Comprehensive African Agriculture Development Programme (CAADP) in 2003 lacked “climate change” dimensions. The Framework outlines a set of principles, actions, roles, responsibilities, and financing recommendations to guide engagement at all levels in Africa, from continental to national, in implementing adaptation and mitigation programmes in the agriculture sector. The Framework includes sections on measures, policies and institutional arrangements to link climate change and agriculture and puts strong emphasis on mobilising resources while ensuring complementarities between agriculture, climate and development finance.

UNDP has been supporting the AU’s efforts in ensuring that the multi-dimensions of climate

change are being addressed in agro-food value chains initiatives. Between 2015 and 2021, the UNDP-GEF Unit will support countries to implement projects that address climate smart agriculture in the Africa for a total value reaching over USD 190 million. For instance, UNDP is collaborating with major environment actors on the Global Environment Facility3

Integrated Approach Pilot on Fostering Sustainability and Resilience for Food Security in Sub-Saharan Africa. The project that will be launched early 2017 will focus specifically on safeguarding the natural resources — land, water, soils, trees, and genetic resources — that underpin food and nutrition security. UNDP will lead a component which will scale up innovative practices that generate or safeguard ecosystem services in the food value chains and food production systems.

1.4 Goals and Objectives The objective of this Knowledge Product is to gather information, best practices, lessons learnt on what works and does not work in term of advancing regional cross-border agro-food value chains in Africa.

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specific objectives include:

• Demonstrating how regional agro-food value chains development fits within the context of Comprehensive Africa Agricultural Development Programme (CAADP);

• Share knowledge, experience and lessons learnt in implementing 6 regional agro-food value chain projects funding by UNDP AFIM;

• Share experiences and knowledge of regional agro-food projects and initiatives of Regional Economic Communities (RECs), Development Partners (DPs) and Private Sector;

• Serve as reference for regional value chain stakeholders to draw information for project design and implementation.

1.5 Approach and Methodology

The document focuses and places emphasis on regional agro-food value chain development through experience of project implementation and other initiatives by stakeholders.

It describes and analyses the experience from UNDP-AFIM, that of regional value chain projects/initiatives by Development Partners, RECs, government and private sector to distil key information, experiences and lessons learnt. Some of the latter experiences were sourced from the proceedings of an Experience Sharing Workshop on Advancing Regional Agro-Food Value Chains in Africa held in Accra on Apr 11-12, 2016, which included over 90 professionals, experts and policy makers from African Union, NEPAD, African Development Bank, USAID, GIZ, Global Affairs Canada, European Commission, DFID, ECOWAS, EAC, UNECA, COMESA, UN and Private sector firms

from over 20 Countries in Africa.

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2.1 Need for Regional Value Chains

The Abuja food security summit (Au 2006) declared a firm commitment in promoting and increasing intra-African trade in rice, maize, legumes, cotton, oil palm, beef, dairy, poultry and fisheries products as strategic commodities at the continental level, and cassava, sorghum and millet at sub-regional level without prejudice to attention being given also to products of national importance.

Measures articulated for accelerated development of these commodities were through fast tracking of trade arrangements at the regional economic communities (RECs) level by lowering tariffs and non-tariff barriers, ratifying harmonized standard and grades and sanitary and phyto-sanitary standards (SPS), construction and maintenance of critical infrastructure to facilitate movement across borders, development of regional and continental information systems, promotion of and increase in public-private sector investment in agricultural-related infrastructure, reduction of both natural and commercial risks through marketing arrangements/insurance schemes and financial institutions to improve access to soft and small loans and grants, among other measures.

The African Union (AU), NEPAD Planning and Coordination Agency (NPCA) and RECs are the pillars of the continental programme to form an integrated economic and political African union. Over the past five years, efforts to support these “regional” institutions have increased significantly. Both multilateral and bilateral partners are undertaking various regionally-focused programmes.

2.2 ECOWAS Region ECOWAS has mostly eliminated tariffs to enhance trade. However, non-tariff barriers (NTBs), whether protectionist in intent or

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not, still raise trade costs and inhibit regional trade. At the country level, many of these have been captured by the USAID Gap Analysis of the ECOWAS Trade Liberalization Scheme (ETLS). These include gaps between regional agreements, national legislation and implementation; limited private sector knowledge of free trade protocols; strong incentives for informal trade; non-compliance with existing tariffs; the widespread imposition of NTBs; the non-functioning of the Inter-States Road Transit (ISRT) regime; non-recognition of certificates or origin and non-compliance with truck axle loads; and the challenges of joint membership for members of both ECOWAS and UEMOA. For example, Ghana imposes bans and restrictions, often for months at a time, on unprocessed agricultural products. Burkina Faso imposes seasonal restrictions on maize, and Senegal and Togo mandate escort services for transit goods. It is argued that the proliferation of NTBs in the region is in part driven by the pace of liberalization and integration, as well as fears of inadequate protection for local producers.

Trade in food staples in West Africa is also hampered by the widespread nature of bribery in the region, notably the prevalence of road corruption at checkpoints throughout the region. In the area of sanitary and SPS,

concerns have been raised about inadequate inspection systems, as well as the need for an integrated strategy to develop testing capacity and eliminate redundancies and greater commitments for regional standardization, harmonization and participation. The UEMOA Agricultural Policy has identified the issue of SPS harmonization as a key area of priority. However, there is no evidence of any concrete engagement and action to increase capacity in this area.

2.3 EAC/COMESA/SADC RegionAs in the case of ECOWAS, NTBs are also a problem in EAC/COMESA/SADC region. NTBs promote considerable informal cross-border trade. Intra and extra-ethnic trade in goods, whether in barter or currency form, predates the colonial borders that disrupted this age-old trade and created the so-called informal cross-border trade (ICBT). This involves small unregistered traders, registered SMEs that trade across borders without paying duties, and other registered traders who do not declare or under-declare goods. ICBT will always be attractive where cross-border markets are attractive in terms of price and demand. Agriculture is the dominant sector in the region in the Tripartite Territory of COMESA/EAC/SADC. The 24 countries in the territory belonging to multiple RECs. This creates problems in the harmonization of customs documentation and other NTBs, especially rules of origin. A summary of NTBs in each REC is given below.

In EAC, several general NTBs and product specific NTBs which impede intra-regional trade have been identified as follows: i) Customs and administration procedures; ii) Government participation; iii) Inadequate infrastructure and iv) Import charges and fees. Other NTBs include product-specific NTBs applicable to the intra-EAC trade of grains and dairy:


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In SADC, there are various NTBs that affect trade including: barriers on imports and exports of various agricultural products, quantitative NTBs and restrictions, customs procedures, TBTs, and poor physical infrastructure.

These problems will be addressed through Africa’s largest free trade area, the Tripartite Free Trade Area (FTA) popularly known as the Grand FTA, composed of half the continent’s countries. The decision was taken in Bujumbura, Burundi in 2014 by ministers from 26 countries that belong to the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC).

The Tripartite FTA will have a combined population of 625 million and about half of all African Union member states. Its combined GDP of $1.2 trillion is about 58% of Africa’s total GDP and would make the area roughly the 16th largest economy in the world, just below Mexico, and ahead of countries like Indonesia, Turkey, the Netherlands, Saudi Arabia and Switzerland. “The tripartite FTA offers significant opportunities for business and investment and will act as a magnet for attracting foreign direct investment. The business community, in particular, will benefit from an improved and harmonized trade regime which reduces the cost of doing business as a result of elimination of overlapping trade regimes”4.

4Tripartite FTA Press Release, Bujumbura, Burundi, 25 Octo-ber 2014, accessed http://www.comesa.int/attachments/article/1355/Tripartite%20Free%20Trade%20Area%20to%20be%20launched%20in%20December.pdf

1. grain: Various NTBs on the grain trade include proof of origin, phytosanitary certificates, police roadblocks and periodic bans on imports by Kenya and Tanzania. Tanzania often bans the export of grains and other food products due to poor harvest, while Kenya temporarily restricts grain imports to protect domestic farmers.

2. dairy: A complex regulatory regime prevents imports of dairy products from Tanzania and Uganda to Kenya. Kenyan regulations require milk exporters from Tanzania and Uganda to have certificates that prove that their products are processed under constant supervision by the veterinary authority in the region. However, the veterinary standards of Kenya are not made public and there are four official institutions responsible for Kenya’s dairy imports.

In COMESA, the most important NTBs include: SPS requirements, technical standards and inspections and customs documentations/procedures. Technical barriers to trade (TBT) include customs procedures and administrative requirements. In addition, there are product-specific NTBs which can cause additional costs (Trade policy NTBs, Administrative NTBs and Poor infrastructure).

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3 undP’s MicRo cAPiTAl gRAnT cATAlYTic APPRoAch

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3.1 Background

In November 2010, UNDP launched a regional project, “Private Sector and Inclusive Market Development for Poverty Reduction in Africa: African Facility for Inclusive Markets (AFIM)”, to more strongly address private sector development and engagement issues in Africa in support of accelerated achievement of the MDGs. AFIM’s particular focus is on the promotion of Inclusive Market Development (IMD) in Africa through the development and expansion of regional value chains in job creating sectors such as agribusiness, tourism, renewable energy, retailing and mining. From the early days and especially following the official mandate received from the 2011 “Johannesburg Declaration on Promoting Africa’s Agribusiness Sector, Food Security and Nutrition”,5 UNDP AFIM’s special focus of IMD has been centred on agribusiness public and private partnerships that target and benefit smallholders in the context of advancing the implementation of regional food value chains.

As a follow-up to the Johannesburg declaration’s call to action for the facilitation of regional platforms and value chains, AFIM conceived the idea to convene three sub-regional “AFIM Weeks”, comprised of: i) a Project Facilitation Platform – to develop and accelerate the implementation of specific regional agricultural value chains; ii) a Training Module – providing regional UNDP country Office, REC and industry actors with training on value chain development and finance; and iii) a CEO/ Agriculture Leadership Breakfast – a morning programme aimed at introducing AFIM and the support it provides to foster public-private partnerships to agribusiness leaders in the region; and iv) a Country Office AFIM Clinic(s) – a community of practice 5http://www.undp.org/content/dam/undp/library/corporate/Partnerships/Private%20Sector/JOHANNESBURG%20DECLARA-TION.pdf

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meeting and a series of one on one meetings with UNDP country office representatives to assist them in their value chain project development strategies and implementation plans. To ensure sustainability, a decision was also taken for AFIM to implement this new initiative in partnership with the relevant regional RECs, the East African Community (EAC) in East Africa; the Economic Community of West African States (ECOWAS) in West Africa, and the Southern Africa Development Community (SADC) in Southern Africa.

3.2 Regional Platforms and Selected ProjectsAFIM selected a number of regional/cross-border projects to receive catalytic grants to demonstrate how regional value chain projects could foster public-private partnership, enhance intra-Africa trade and ensure inclusive market development. At the first call for proposal from Project Promoters6, AFIM received more than 17 applications from across the continent. It used rigorous selection criteria including the legal status of the Project Promoters the spread of their operations across countries in Sub-Saharan Africa, their focus on cross-border, regional and multiple-country projects in grains (rice, maize, soy bean and sorghum), horticulture (fruits and vegetables excluding flowers) and dairy/livestock, and potential impact on poverty reduction to shortlist few of the proposals.

Applications and concepts shortlisted were referred to the respective project facilitation platforms (PFPs) for a peer review and selection mechanism. Under these PFPs, constructive criticism and improvements to the selected project frameworks were undertaken by respective stakeholders from the different countries where the projects were to be 6Project Promoters were institutions (Not-for-Profit Organizations) that served as a lead implementing firm submitting the proposal

implemented. The PFPs were conceived as fora for the participatory peer review and selection of specific regional agricultural value chains that promote private sector driven inclusive business models that transcend beyond national borders. AFIM moderated three PFPs in the EAC, ECOWAS and COMESA regions, which where shortlisted regional projects that were deliberated upon and their project concepts improved upon by respective sector stakeholders and experts at the Sub-Regional AFIM week.

The East Africa Sub- Regional AFIM week was convened from June 11 - 15, 2012 in Nairobi, Kenya, where two value chain projects were selected for catalytic funding support after a vigorous peer review under the PFP exercise. Accelerating the commercialization of, and Regional Trade in Sorghum was selected with the aim of “Facilitating Market-based Linkages among Value Chain Partners to Increase Productivity and Surplus for Markets in Kenya and Tanzania”. The Project Promoter was Africa Harvest Biotech Foundation International (AHBFI) operating in Kenya and Tanzania. The second East Africa project selected for catalytic funding was the “East Africa Dairy Development Project- a Smart Extension Support Services Pilot Project” implemented by Heifer International in Kenya and Uganda. The catalytic funding phase for both project ended in 2013.

The West Africa Sub-Regional AFIM week was also convened from August 27 - 31 2012 in Dakar, Senegal, where two value chain projects were selected for catalytic funding support after a similar vigorous peer review under the PFP exercise. These included the “Sahelian Onion Productivity and Market Expansion Programme (SOPMEP)” project implemented by ASNAAP (Agribusiness in Sustainable Natural African Plant Products) in


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Ghana and Burkina Faso and the “West Africa Mango Value Chain Quality Improvement Project” implemented by the ECOWAS Initiative for Export Promotion & Enterprise Competitiveness for Trade (EXPECT TEN) in Burkina Faso, Ghana, Mali and Cote d’Ivoire. The catalytic funding phase for SOPMEP ended in November 2013 and that of Mango Value chain in April 2014.

Lastly, the Southern Africa Sub-Regional AFIM week was convened from May 13 – 17, 2013 in Pretoria, South Africa, where two value chain projects were selected for catalytic funding support for yet another vigorous peer review

under the PFP exercise. These included the “Eastern Province Groundnut Integrated Value Chain Project” implemented by Eastern Province Farmers’ Co-operatives Ltd (EPFC) in Zambia and Malawi and the “Scaling up Food Production” project focusing on soya bean and implemented by the NEPAD Business Foundation in Mozambique and Malawi. The catalytic funding phase for both projects ended in June 2014.

The full project descriptions, achievements and lessons learnt are presented in subsequent

chapters.

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3.3 Micro Capital Grant Catalytic Funding ProcessesIn the development of Micro Capital Grant Catalytic Funding, UNDP-AFIM followed the following process:

sTePs AcTiviTies

1 APPLY· Open request for project proposals (RFP)

· Review and short listing of the proposals based on their potential evaluated against predefined criteria

2 REFINE

· Present the proposal in a Project Facilitation Platform (PFP) to UNDP COs, RECs, private sector, and other partners

· Incorporate the feedback from all the stakeholders and improve the proposal

3 SELECT

· The best proposals are presented to the UNDP Micro-Capital Grant Committee

· Include any further comments from the committee in the proposal and sign agreement

4 IMPLEMENT· Start the field level implementation

· Continuous technical assistance by AFIM to strengthen the project

5 MONITOR · Quarterly reporting and monitoring of the results

By applying the catalytic funds, AFIM supported the 6 regional agro-food projects with a total amount of $850,000 leveraged additional

$251,000 (3:1) from the project promoters. The table below shows the breakdown of funding and partner contributions.

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Micro Capital Grant Catalytic Funding of Value chains

PRoJecT AgencYPRoJecT funds (us$)

AfiM funds (us$)

PRoJecT vAlue(us$)

1. Accelerating the Commercialization of, and Regional Trade in Sorghum AHBFI 150,000 150,000

2. East Africa Dairy Development Project- Smart Extension Support Services Pilot Project

HEIFER 150,000 150,000

3. Sahelian Onion Productivity and Market Expansion Programme ASNAPP 58,000 150,000 208,000

4. West Africa Mango Value Chain Quality Improvement Project ECOWAS –TEN 55,000 150,000 205,000

5. Eastern Province Groundnut Integrated Value Chain Project EPFC 98,000 150,000 248,000

6. Scaling up Food Production in Soya NBF 40,000 100,000 140,000

ToTAl 251,000 850,000 1,101,000

3.3.1 Sorghum Value Chain Project

Background

Under UNDP-AFIM catalytic funding, one of the projects selected under the EAC project facilitation platform was the “Accelerating the Commercialization of, and Regional Trade in Sorghum by Facilitating Market-based Linkages among Value Chain Partners to Increase Productivity and Surplus for Markets in Tanzania and Kenya”. The project was implemented by Africa Harvest Biotech

Foundation International (AHBFI) with

cross border activities covering Kenya and

Tanzania. The UNDP-AFIM project goal was

to contribute to food security and economic

empowerment through participation in

regional trade in Sorghum and increasing

the income of 2,000 smallholders (1,000 rural

smallholder sorghum farmers in Tharaka and

Makueni counties in Kenya and 1,000 rural

smallholder Sorghum farmers in Serengeti,

Dodoma and Singida districts in Tanzania).

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Achievements

The various targets set and achievements are summarised below.

UNDP-AFIM Sorghum Value Chain project achievements

indicator Target Result at the end of the project

Number of smallholder farmers identified and trained in GAP

2,000 farmers 2,500 farmers

Number of Aggregators to be set up

4 (2 in Kenya and 2 in Tanzania)

5 (3 in Kenya and 2 in Tanzania)

Smallholder income through aggregator support and supply to EAML was US$1,544,188

Yield increase100% (from 300kg/acre to 600-700kg/acre

Up to 1,000kg/acre in Kenya (233% increase)

Up to 1,600kg/acre in Tanzania (433% increase)

Volume of grain sold to EAML

12,000 MT in both Kenya and Tanzania

5,469 MT in both Kenya and Tanzania at an approximate market value of US$2,123,258. 3,081MT of sorghum valued at US$1,196,153 has been directly attributed to the catalytic fund support from AFIM by the project promoter

In sorghum, the project aimed at introducing improved sorghum for multiple use (SMU), mainly the GADAM variety used for brewing and consumption. The introduction was supported by improved management practices through extension. In addition, vertical linkages between farmers, traders/aggregators, and breweries were introduced to create an inclusive market for sorghum farmers.

The justification for selecting the project was the high demand-supply gap for Sorghum in East Africa including agro-processing firms such as the East African Breweries which could not meet even a 10th of its Sorghum requirement thereby creating huge market opportunities for

smallholder farmers to be integrated into a formal supply chain with assured market and stable price. The regional tweak to this approach was the possibility of aggregating smallholder volumes of producers in Kenya and Tanzania through aggregators to obtain scale for processors.

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successful sorghum Pioneer Agencies (sPA)/gadam link centre in Tharaka nithi, Kenya

The business started in 2010 after an intensive training on business development and management by Africa Harvest under a Sorghum production promotion project. They started by renting one store where they bulked grain from farmers. They now operate ten rented stores distributed across the sorghum production areas in Tharaka North District and a self-owned store at Mukothima with a capacity of 1,000 bags. In addition to purchased sorghum, they bulk relief grain for WFP.

For several years, SPA had operated within the District with market access challenges, poor product quality and labour-intensive land preparation and threshing. With support from Africa Harvest with IFAD funding under the Sorghum for Multiple Use project, the business continued to expand, although, as in any growing business, it was faced with production and market challenges. The profit margins of Sorghum Pioneer Agencies were low due to high transaction costs and the high cost of production incurred by farmers. Production quantities were very low. Farmers in the area were still relying on traditional means of land preparation. In addition, they lacked a good system to consolidate these small quantities of Sorghum thus making it harder and costly for the business to fill the supply contract entered into with East African East African Malting Limited (EAML).

With a boost from the UNDP-AFIM project that was implemented by Africa Harvest in 2012, SPA got an opportunity of improving profit margins through economies of scale made possible by improved productivity by farmers. The supply contract with EAML provided them with a ready market which offered a competitive price for all surplus sorghum grain delivered. The project introduced the concept of an aggregator to SPA describing it as a likely solution to the problems of low productivity and high transactional costs. SPA agreed to participate as an aggregator to provide services required by farmers in land preparation, seed access, threshing as well as aggregating any small quantities harvested into marketable volumes. The support provided by the UNDP AFIM fund thus helped SPA increase its turn-over and provide much needed services to smallholder farmers. These farmers are now able to access improved seeds, fertilizers, pest and disease management inputs and land preparation services closer to them and at improved prices.

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These successful results were achieved through training of farmers in Good Agricultural Practices (GAP) which reached 2,500 farmers, exceeded the target by 25% of 2,000 target. These farmers increased their yields by 333% in Kenya to over 500% in Tanzania, although Tanzanian farmers are comparatively larger and more mechanized. The increasing volume

Aggregator/Region 2011- 12 2012-13 increase Percentage (%)

increase

Beatrice Nkatha/Tharaka 1450 MT 3098 MT 1,648 MT (114%)

Mwailu Enterprises/Makueni 38 MT 100 MT 62 MT (163%)

Shalem Enterprises 400 MT 550 MT 150 MT (37.5%)

Dunia Trust (TZ) 500 MT 1,221 MT 721 MT (144.2%)

RWD Enterprises 500 MT 500 MT

Total 2.388 MT 5,469 MT 3081 MT (129%)

of production inadvertently drew more SMEs in a form of Aggregators into the value chain exceeding the expected number by 20%. Finally, these aggregators delivered 5,469MT of sorghum grain from the target regions in Kenya and Tanzania to the breweries. The performance was as shown below:

It was expected that within a two years’ period about 12,000 MT would be sold to the breweries. However, the project was financed only for one year, and realized 5468 MT or 46% was achieved. The catalytic impact of the project was 3,081MT, a 129% increase over previous non-catalytic funding year (2011-

2012). The market value of this grain was Kshs 180,477,000 or USD 2,123,258. Additionally, the project drew experiences from the participating countries, established strong business linkages among the Aggregators and stimulated growth in strategic communities of the region.

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3.3.2 Dairy Smart Extension Support Services (SESS) project

Background

Quality of dairy products has remained a critical challenge to value chain actors in Kenya and Tanzania due to the lack of government extension services. The Dairy project introduced the smart extension and service delivery (SESS) model to address this challenge by embedding extension services in a producer organization (PO). Some members of the Cooperatives were trained as extension agents ensuring consistent and sustainable extension delivery services to its members.

In 2012 East Africa Dairy Development (EADD)

received USD 150,000 of catalytic funding

from UNDP-AFIM to pilot the business

case for embedding extension services in

Producers Organizations’ (PO) core activities and services. The one-year Smart Extension Support Services (SESS) pilot project goal was to catalyse participating POs to establish sustainable extension and support systems and consistently increase the quality and quantity of milk produced in the households of 4,000 farmers who are members in 4 targeted POs in Kenya and Uganda.

SESS’s specific objectives were to: i) Demonstrate the benefits and value of extension to POs, input suppliers and milk buyers, ii) Institutionalize extension services and systems in POs iii) Strengthen the capacity of the dairy industry to deliver quality input and extension services and iv) Embed M&E foundation in the POs’ operations. The pilot project was implemented in Siongiroi (Bomet County) and Taragoon (Uasin Gishu County) dairy producer organizations in Kenya and BUBUSI (Mityana & Wakiso Districts) and Nabitanga (Sembabule District) Dairy producer organizations in Uganda.

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Achievements

UNDP-AFIM Dairy Value Chain project achievements

indicator Target Results at the end of the project

Number of dairy farmers profiled and adopting appropriate practices 4,000 1,669

Number of farmers reached out with advisory services * target not available Over 3,700 farmers reached

with advisory services

Number of extension staff trained and deployed * target not available 16 extension staffs trained

and deployed

Number of extension workers benefiting from training * target not available 16 benefitted from the

training scholarship

The case of a successful dairy cooperative in Kenya

Taragoon dairy cooler was built in 2010 after farmers formed the Taragoon dairy cooperatives. Its catchment area is Kesses and Ainabkoi division, with a total dairy animal population of 169,000. The cooperative membership is 3,162 members (2,051 men and 1,111 females). Before the cooler was installed, farmers sold milk to KCC (Ainabkoi cooling plant or direct to the dairy factory in Eldoret). Currently, the cooperative employs 6 extension staff, trained under the project. It has 8 collection centres (30-40 farmers/centre), each supplied with weighing scales and bulking containers. At each centre, there is also an agro-vet for check-off system in the supply of inputs. Transport from the centres is provided by two cooperative-owned trailer/tractors which charge Kshs3-4/litre, while at the cooler, the farmer is paid Kshs29/litre. Individual farmers also deliver on foot, bicycles, motorbikes, donkey carts and pick-ups. Annual collection is about 1 million litres all sold to Daima processors who pay the cooler Kshs30/litre. The collected milk is collected twice daily by a refrigerated truck owned by Daima industries who do the processing.

Taragoon cooperative joined UNDP-HI project in 2012 with the aim of fostering capacity building and technology improvement. Six extension officers were trained and now work for the dairy. Since the project started, quality in terms of rejected milk has reduced to 0.38% down from 0.54% respectively while quantity has improved by 16-25%.

During the project year 2012/2013, collection increased from 1.1 million litres to 1.6 million litres, an increase of 48 percent. However, this cannot be attributed to the project alone, as the exceptionally good weather during the year also contributed to the increases.


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3.3.3 Sahelian Onion Productivity and Market Expansion Programme (SOPMEP) project

Background

The “Sahelian Onion Productivity and Market Expansion Programme (SOPMEP)” project was implemented by ASNAAP (Agribusiness in Sustainable Natural African Plant Products) in Ghana and Burkina Faso. Onions represent an important share (10-25%) of total vegetable consumption throughout West Africa and it is the most widely traded raw vegetables within the ECOWAS sub-region. Onions remain a major cash crop for Niger, Mali, Burkina as well as the northern sectors of Nigeria, Benin and Ghana. Similarly, the coastal countries especially Ghana, Togo, Benin and Cote D’Ivoire serve as the major export destinations for these producing countries presenting huge intra-regional trade opportunities.

Sahelian onion production is estimated at over 1.2M MT with Nigeria, and Senegal as major producers. Major exporters are Niger and Burkina Faso which export to Ghana, Ivory Coast and other countries. Niger produces over 600,000 MT and exports are valued at USD 90 million annually. Ghana produces onions but also imports considerable amounts from inside and outside the region. In 2012, imports

were 51,000 MT valued at USD 10.2 million but by 2012 they had increased to 72,146 MT (an increase of 41%) valued at USD 12.5 million. In 2012 the major suppliers were Niger at 44,844 MT (62% of imports) and Burkina Faso at 24,966 MT (35%). Other suppliers in the region included Ivory Coast, Benin and Togo. As such there is considerable cross-border trade in the region.

Due to lack of storage facilities, farmers in West Africa usually sell 70% of their produce where average market prices are 300% lower than the average price at lean season and therefore are unable to break even and make profits. To address these challenges, with a regional perspective, and ensure cross-cutting industry sustainability, profitability and competitiveness, UNDP-AFIM funded and supported a cross-border regional onion value chain project dubbed “Sahelian Onion Productivity and Market Enhancement Programme (SOPMEP) implemented by ASNAPP.

The goal of the project was to improve production, reduce post-harvest losses, increase access to finance, and promote regional trade. It was also intended to strengthen the capacity of producers on Good Agricultural Practices and Foster regional collaboration.

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AchievementsThe project worked on i) Reducing postharvest losses, increasing market access and incomes of onion value chain actors ii) Increasing access to finance by onion producers and other

chain actors iii) Strengthening the capacity of producers on Good Agricultural Practices and iv) Fostering regional collaboration and monitor progress of work.

SOPMEP introduced family level and semi-commercial storage systems using local materials to increase the shelf life of smallholder and commercial producers. Through good agricultural practices, the build size of onions doubled and farmers increased their income by more than 300%. Through this intervention, a micro-finance company used the farmers’ stored produce as collateral and advanced credit to them. Regionally, the UNDP-Catalytic fund promoted technology mobility and skills transfer between Ghana and Burkina Faso countries and resulted in better trade relations among the traders along the value chain.

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UNDP-AFIM Onion Value Chain project achievements

indicator Target Results at the end of the project

Farmers trained on the need to adopt improved storage system and stagger sales for increased income

2,500 3,140 farmers trained on GAP and post-harvest handling in Ghana and Burkina Faso; 30% of 1,312 farmers trained in Burkina increased average yield per ha by 17% (from 20.5MT/ha to 24MT/ha)

Improved family level storage facilities established

10 80 demonstration family level storage structures constructed for farmers in Ghana and Burkina Faso

Actors trained on sourcing credit from financing institution

2,500 1,837 farmers trained on access to credit in Ghana and Burkina; 400 farmers from 32 farmer groups were profiled for credit financing. Of these, 150 farmers had their facilities approved.

Farmers linked to MFIs 150 Over 400 farmers from 32 farmer group profiles and linked to MFIs.

Increased sales for producers 40% of 2,500 producers

50%, 35% and 15% of 34 producers supported with storage structures in Ghana staggered sales by 1.5, 3 and 3+ months respectively to take advantage of high prices

Increased income for farmers Incomes of 40% of 2,500 producers increased by 80%

34 farmers increased income by 110% to 400%+ (onion prices had increased by 400% from GHC50 ($25) for a 100-120kg bag in March (the glut season) to GHC200 ($100) in June

Onion bulb sizes increased * target not available

100% increase in bulb size in Ghana as a result of training and implementation of GAP

20.5MT/ha

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The case of a domestic and cross border trader in onions in Zebilla-ghana

A trader has operated for 28 years in Zebilla market and has five other competitors in the market. Under the AFIM catalytic funding, he obtained funding for a community type store (150 bags), which enables him to store for a longer time. He uses a tricycle transporter which currently costs 4,500 GHS. In his operations, he employs 15 casuals (60% women and 40% men) and also 3 permanents (1 woman, 2 men). He procures 70% onions locally and 30% are imported from Niger. His onion suppliers are 30% women and 70% men. During the onion harvesting season, he procures 210 bags/day and pays GHE 260/bag for local and GHE 280/bag for imported onions. Unloading and loading costs are GHE 2/bag while a bag costs GHE 3 and can be used three times. Storage loss is about 10 bags for 150 bags stored (7% of stored bags).

In marketing, he sells to retailers (30% of sales) but mostly transports to Accra and Kumasi using a lorry (capacity 125 bags) with transport costs at GHE 2/bag to Accra and GHE 12/bag to Kumasi as he has to travel by highway to Accra and then to Kumasi. The direct taxes included veterinary license (GHE1/bag), local taxes (GHE/full load and market fees (GHE 0.5/bag). The indirect taxes within Ghana are however high at GHE 50/full load. The selling price in Accra is GHE 350/bag for imported and GHE 400/bag local. In imports, he incurs a duty of GHE 180/lorry.

With the support of catalytic funds, the trader constructed a semi commercial cottage level storage facility introduced by ASNAPP. This intervention resulted in a 66% increase in the volume of sales and over 280% increase in the price/bag since the farmer could store the onions and spread their selling over the lean season. Between 2011, where there was no support, and 2014 after catalytic funding, this trader has increased his sales by over 490%. Key to his achievement is also the constant supply of onion from Niger that he could sell year round.

3.3.4 West Africa Mango Value Chain Quality Improvement Project

Background

Côte d’Ivoire produces mangoes in over 45,000 hectare of land, mostly in the northern areas of Karhogo-Ferkesedougou which produces between 100,000 and 120,000 MT and Denguele which produces 2,000-2,500MT for both domestic and export trade. The main

types of mangoes are Kent (75% of area), Keith

(10%), Palmer (5%), Amelie (10%) and Zill (2%).

The main harvesting season is from March to

July. The country is a major exporter, exporting

over 15,000MT to Europe where it accounts for

about 5% of imports. Apart from farmers, the

other main actors in the value chain include

1,000 exporters of fresh mango, one processor

of dried mangoes, one processor of mango

pulp and one processor of mango juice.


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Despite the growing demand for fresh and processed mango products, and the substantial efforts made by West African suppliers in terms of quality control, packaging, logistics, marketing, and certification, serious challenges must be addressed to improve the product’s competitiveness on target national and international markets. Europe imports approximately 220,000 metric tons of fresh mangoes per year, mainly from Brazil and Peru but ECOWAS countries together account for between 20,000 and 30,000 tons annually, mainly driven by Cote d’Ivoire, Senegal, Mali and Burkina Faso. Several attempts are being made by Ghana, Cote d’Ivoire, Mali and Burkina Faso to address quality challenges and

increase competitiveness. However, with the exception of Mali, minimum results have been achieved. Interventions are country-based and are not harmonized and synchronize to address common challenges such as fruit fly and stone weevil that require timely, consistent and coherent cross-border interventions to improve product quality.

In order to address the issues described above, the “West Africa Mango Value Chain Quality Improvement Project” was implemented by the ECOWAS Initiative for Export Promotion & Enterprise Competitiveness for Trade (EXPECT TEN) in Burkina Faso, Ghana, Mali and Côte d’Ivoire.

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Achievements

Project activities were implemented in 3 clusters, described hereafter, of which 2 were completed by the 15th April 2014. The 3rd cluster of activities was only partially delivered, due to insufficient resources to ensure a

proper activation of incubators and delayed discussions with actors and stakeholders in view of formalizing the process with signed agreements.

cluster output

cluster i – Assessing quality requirements and their business impact in the value chain

Country & regional value chain assessment reports

cluster ii- Elaborating a common platform for ensuring quality in the value chain

Draft Guidebook & West African mango label Terms of Reference

cluster iii- Mobilizing actors and partners, to sustain the regional mango quality platform and “Supply Development Programme”

Project results review organized and follow up developments convened with key stakeholders and partners

UNDP-AFIM Mango Value Chain project achievements


Guidebook Developed

Guidebook including detailed harvest and post-harvest quality requirements developed

Quality Guidebook validated by core group of mango value chain experts and actors

Model developed and approved

Incubator model for mango value chains actors developed and approved

Workshop held in 2014 and model approved by mango value chain actors in 4 countries (Mali, Burkina Faso, Côte d’Ivoire and Ghana)

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A successful Woman Mango farmer and exporter in côte d’ivoire

The exporter who is also a farmer started operating a pack-house in Korhogo town under the name Soleil d’Afrique. The starting capital was about 20mi FCFA, and currently she requires a monthly credit of FCFA10 million. She deals with about 750MT/season. In her pack house, she employs 150 casuals of whom 50 are women and 100 are men.

Apart from mangoes from her farm, she is supplied by about 40 small traders/harvesters who are mainly male. During the season, she procures 30MT/day. At the pack house, unloading costs about CFA5,000/MT while sorting, done mechanically, is estimated at CFA5,000/MT. Estimated losses in the pack house range from 10-20%. In export operation, it costs CFA45,000/20MT/ container in transport to Abidjan port. At the port, other costs include CFA68,400/MT in taxes and CFA5,000/container in phytosanitary certification. The FOB Abidjan is about CFA260,000/MT.

The trader has been involved with the project since 2013 in the working group on the preparation of the Quality Manual. As one of the writers of the manual, as well as being a farmer and exporter, she is well versed on the contents of the manual. For farmers, she prefers a popular shorter version covering aspects of production and harvesting, quality aspects in production and post-harvest and understanding need for certification for export purpose. As an incubator/provider of incubation services, she can handle over 150 suppliers.

3.3.5 Zambia Eastern Province Groundnut Integrated Value Chain Project

BackgroundAflatoxin control in groundnuts has been a major problem for most producers of Southern Africa. This has hindered trade in groundnut among Zambia, Malawi and South Africa, the latter being the major market destination for the majority of producers in SADC region. The “Eastern Province Groundnut Integrated Value Chain Project” implemented by Eastern Province Farmers’ Co-operatives Ltd (EPFC) in Zambia and Malawi was selected for catalytic funding support to contribute to the revival of the groundnut sector in the region.

The project had three objectives: (i) increasing groundnuts production by capacity building of 6,500 farmers, (ii) creating a quality system for seed and edible groundnuts through training on the control of aflatoxin, and (iii) building a new warehouse facility.

The objective of the groundnuts project was to increase the production and productivity of groundnuts, by capacity building of farmers in production and quality management especially in relation to aflatoxin control. At the cooperative level, the funding was for an improved warehouse with afflation testing laboratory aimed at improving quality of exports and increasing intra-Africa trade.

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improved groundnuts Production for Better livelihood

In Zambia, 80% of crops are grown by small holder farmers. The predominant crops include maize, cotton, tobacco, soybeans, sunflower and groundnuts. Reduced commodity prices for most of the crops has made groundnuts more attractive. Besides being a good cash crop, groundnuts are rich in protein and therefore are good for fighting malnutrition.

Masulani Phiri, a farmer based in Katete District of Eastern Province, has been a member of EPFC since 2009. He has grown from strength to strength through the production of groundnuts. Before the AFIM grant, Masulani was a poor smallholder farmer who lived on less than a dollar per day. He was struggling to make ends meet since he had limited sources of income.

Using a UNDP grant to underpin EPFC’s work, Masulani, his family and his village have been lifted out of poverty. Through better varieties, seeds and farming practices yields have improved in local farmers from 0.4 tons per ha to 1.2 tons per ha. This translates to about $5,000 per year. With continued improvements through the introduction of more quantities of foundation seed, and more targeted trainings, yields could increase to 1.5 - 2 tons per ha creating the opportunity for Masulani and his fellow farmers to compete successfully in the regional market.

From cultivating only 1 acre before the AFIM grant, Masulani now cultivates 5 hectares. With his hard work and better yields, Masulani managed to buy one pregnant cow, and he now has three cows. Furthermore, he has invested in an ox cart and a ripper that he uses in his own fields and also hires out to other farmers. This entrepreneurial development will surely see the introduction of further mechanization - both farming and post -harvest value add processing.

Masulani is also proud that in his village he is one of those that have built brick houses and enjoy the owner ship of solar powered satellite TV. More importantly for the future, Masulani has made education of his children a family priority, he pays school fees for his four children of whom one is in secondary school and the other 3 are in primary school.

Achievements

The achievements of key outputs under the objectives are as summarized below.

UNDP-AFIM Groundnut Value Chain project achievements


New farmers mobilized towards production 3,500 2,733

Yields increase as result of high yielding varieties 1.2 tons to 3 tons/h 700 kg/h

Farmers trained in GAP 3,500 2,050

Farmers certified 500 400

EPFC laboratory fully equipped and effectively testing field samples for aflatoxin

Fully staffed laboratory 2 staff trained and Laboratory equipment in use


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Additional measured results:

• 2,333 additional farmers were registered with ePfc, and 400 seed multiplier farmers were registered with SCCI for seed multiplication.

• 8,500 kgs of early generation seeds have been procured for distribution after inspection, sampling and field testing with Seed Control and Certification Institute.

• 325 MT of groundnuts have been procured from farmer groups since the beginning of the project.

• 120 MT of groundnuts have been exported to GMK Ltd in South Africa through Canon Garth against a contract order of 1,000 MT. The target of completing the warehouse has not been met due to various challenges of which the main one was that some of the funds were used for clearing the land on which the warehouse would be built.

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3.3.6 Scaling-Up Soya Bean Production Project in Mozambique

Background

The “Scaling up Food Production” project focusing on soya bean and implemented by the NEPAD Business Foundation in Mozambique and Malawi was considered for catalytic funding for one year ending in June 2014.

The objectives of the project included: i) Increase soybean productivity from 1ha to 5ha with the use of animal traction and appropriate ploughs, cultivators, planters and rippers. ii) Link project to other initiatives under the

The soybeans project was aimed at scaling up production by smallholder through assistance in the provision of inputs (animal traction, equipment, fertilizer and chemicals) and proper management practices to increase productivity and production.

“Removing the Barriers” project iii) Formalize current relationship between associations of Angonia in Mozambique and Dedza in Malawi, to exchange experiences and improve yield levels and iv) Improve small-scale farmer productivity from average income of $1.7/day to about $6/day, supporting poverty reduction.

Achievements

UNDP-AFIM Soya Bean Value Chain project achievements


Animal traction equipment purchased 105 units 84 kit units of animal traction equipment provided to

3 associations in the Angonia region

Farmers trained in effective tillage service provision 105

103 farmers trained on the effective use of animal traction by Tillers International, with partnership financing from GIZ; these are currently providing tillage services to about 300 farmers from the 3 associations

Farmers association assisted in the fertilizer application 1,715 1,700 farmers planting the right plant population and

treated seed

Farmers with good weed management 1,225 1,530

Days applied for land preparation reduced

* target not available

Reduced from 4-5 days per ha to 1 day per ha due to the application of mechanization. Farmers have cited the ability to prepare additional land during the current season as a result of faster land preparation device.

Daily income increased following the use of animal traction equipment

$1.7/day to $6/day

Increased from USD 1.76 to USD 14.74 per day as a result of using animal traction equipment - an increase of 738%, or more than 8 times their current income.


1.7/day

1.7/day

1.7/day

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A Woman farmer in chingwirizane group - economics of draught power operations- Mozambique

The farmer settled in the area in 2008 and has 20 hectares. Below is her farm land utilization in 2013/2014:

crop (Area Planted (ha (Production (Kg (Price (MZn/kg (Total income (MZn

Soybeans 5 400 25 100,500

Tobacco 5 6,500 40 260,000

Maize 5 9,500 9.5 90,250

Thanks to the project the farmer has increased productivity from 460kg/ha to about 800kg/ha which is an increase of 74%. This has been achieved despite fluctuations in prices.

2010 2011 2012 2013/14

Total 50kg bags 46 54 84 80

Total Kgs 2,300 2,700 4,200 4,000

Kg/Ha 460 540 840 800

Price (MZN/Kg) 10 25 15 25

This productivity enhancement is explained by the use of animal traction. Using manual labour the gross margin is MZN 12,540 (USD418/ha) while using animal traction, it is MZN12,900/ha (USD430/ha) which is an increase of 19%. In addition, the farmer gets MZN2,500 for ploughing, MZN 1,600 for planting and MZN 1,326 for weeding through offering this as a service to other farmers. As such, the gross margin is MZN 20,326 (USD 678), which is an additional 62%, for using animal traction. Clearly, the introduction of animal traction to farmers is beneficial in increasing income and saving labour.

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4 oTheR RegionAl AgRo-food vAlue chAins iniTiATives

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This chapter profiles other regional agro-food value chains being initiated by developing partners. It provides the scope of the project, shares results as well as lessons that are relevant for further project design and implementation.

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4.1 Projects

1. Food Trade Eastern and Southern Africa – FoodTrade ESA

Donor u.K. department for international development (dfid)

Timeline April 2013 – April 2018 (5 years)

Countries Burundi, Kenya, Rwanda, uganda, Tanzania, Malawi, Mozambique, Zambia, Zimbabwe (9) – Project based in Nairobi.

Budget gBP 35 million (equivalent to USD 55 million)

Implementing Partner

development Alternatives inc. (dAi) europe, in co-operation with partners KPMg, Michigan state university, Regional network of Agricultural Policy Research institutes (RenAPRi) and africapractice

Website FoodTrade ESA

Contact Person

Marc van uytvanck, Team leader, dAi

[email protected]

[email protected]

Problem identification

Food production and marketing systems throughout ESA are performing poorly. Various trade barriers have resulted in the fragmentation of markets for both agricultural products & inputs which are required for production, causing price volatility, exacerbating food insecurity and trapping small holder farmers in cycles of poverty.

objective

The overall goal of the Programme is to achieve the impact of improved functioning of national and regional staple food market systems. This will be realised through the outcome of increased regional trade in food, and a greater number of people benefitting from participation in national and cross- border value chains. FoodTrade ESA aims to directly impact over 400,000 farmers (more than 1.8 million people including household members). The interventions are structured to unlock trade across borders and across the region in order to get more food to more people at an affordable and consistent price.

Project Approach

Identifies and addresses major market and public sector gaps and failures that hinder staple food trade and limit farmers’ capacity to produce and market more staple foods.

1. Stimulate and catalyse innovative business models that deliver commercial benefits and solutions to market failures.

2. Incentivise innovative strategies ready to scale up.

3. Promote impact-oriented focus on farmers/farming households to deliver jobs, income and market access for the poor and smallholder farmers.

4. Target systemic change in cross border food trade through dialogue and actions around key barriers in regional staple food markets.

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7http://www.foodtradeesa.com

http://www.foodtradeesa.com

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Results to date

By April 2016 results included:§ 168,813 farmers enabled to access new/improved storage and/or aggregation services/facilities

(43% women), with 18,870 Farmers enabled to access improved information systems (40% women).

§ 47, 956 farmers are now directly benefitting from improved value chain coordination§ 20,613 farmers are now benefiting from warehouse receipts and supplier credit§ 30 certified warehouses have been adopted by private sector entities in the region, improving

market linkages§ 404 MT of new/improved seeds and 1,144 MT of fertilizer are now being accessed by farmers,

with 92,529 of them benefiting from using improved inputs§ There have been 22 initiatives taken to facilitate policy changes, with 15 identified policy changes

during this time as part of the FoodTrade ESA dedicated influencing strategy § As part of the FoodTrade ESA policy advocacy efforts, 10 regulatory or policy changes were

identified for which Public-Private Dialogue (PPD) platform functioned§ To date, FoodTrade ESA has compelled a total of £22m to stimulate private sector investment in

staple foods markets and create an enabling business environment.FoodTrade ESA has worked on maize markets, priority maize corridors, and other staples which follow the maize trade corridor. FoodTrade ESA promotes the development of value chains and trade in other staples along the maize trade corridor, particularly soya, legumes/beans and rice. Investments are channelled through two tools: a Challenge Fund (£8.2m) and a Development Fund (£13.8m).

lessons learnt

During the first three years of implementation, the FoodTrade ESA programme management unit has identified a number of critical lessons in its efforts to promote open trade in staples. There are several emerging models to support structured markets for grain within the programme: the G-Soko platform, Private Sector out-grower scheme, NGO-mobilisation initiative and the WFP Patient Procurement Platform (pre-planting contracts). These models have varying degrees of impact on farmers and the value chains. Minor adaptations to the out-grower scheme where the company provides additional services to farmers has been successful in getting traction, while there is a need to improve targeting of beneficiaries in order to reap greater potential of the scheme.

As for G-Soko, the issue of standards of infrastructure (warehouses) and grains being too high for smallholder farmers remains an ongoing debate. In addition to this, trust building will be key to attract needed volumes from small holder farmers. The other models are in the early days of testing.

On the policy level, it will be critical to harmonise seed policy across the region in order to unlock trade in grains, regional seed markets, and also enhance the incomes of smallholder farmers.

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2. The West Africa food Markets (WAfM)

Donor u.K. department for international development (dfid)

Timeline March 2014 – March 2019

Countries ghana, nigeria, niger, Burkina faso

Budget gBP 15 million (equivalent to USD 22 million)


Palladium in partnership with KPMG, Saana Consulting and Carana Corporation

Website The West Africa Food Markets (WAFM)

Contact Person

dr Mawuli coffie, Team leader

Palladium

[email protected]


Considering the vulnerability of the Sahel to food crises and recognizing the potential of regional trade through its effect on price stability and supply availability, the UK Government through its Department for International Development (DFID) developed the West Africa Food Markets (WAFM) Pilot Programme to tackle the causes of market failures in West Africa’s staple food markets.

objective

This five-year initiative is expected to improve the trade of maize, millet, sorghum, cassava/gari in the Ghana – Burkina Faso and Niger – Nigeria corridors and achieve the impact of better functioning regional staple food market systems between them. This will be realised through the outcome of more staple food traded and more farmers and farming households benefitting from cross-border value chains. The Programme, together with the East and Southern Africa Staple Food Markets Programme (ESASFM) and the Africa Enterprise Challenge Fund (AECF), will contribute to Africa Regional Department’s headline result of an additional 3 million people benefitting from cross-border value chains. The West Africa Food Markets Pilot Programme will benefit over 130,000 farmers and more than 700,000 people (including household members) by 2018. The Programme will also contribute to DFID’s Sahel Disaster Resilience Strategy by improving the functioning.

Project Approach

The WAFM Programme aims to take a key role in tackling the causes of the multiple market failures that exist in staple food markets in West Africa and thereby increase income and food security for producers and consumers, both women and men. It will do this by identifying opportunities to invest in private sector-led market development initiatives across the region, provide support to facilitate the success of these initiatives and leverage successful innovations to reform policy and encourage further development though replication. The project will deliver £9 million in competitive matching grants using two core tools: a Challenge Fund (CF) and a Policy Facility (PF).

8 9 10 11

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8http://thepalladiumgroup.com/ 9http://www.kpmg.com/eastafrica/en/services/advisory/development-advisory-services/pages/default.aspx10http://www.saana.com/ 11http://www.carana.com/ 12http://www.westafricafoodmarkets.org


http://thepalladiumgroup.com/

http://www.kpmg.com/eastafrica/en/services/advisory/development-advisory-services/pages/default.aspx

http://www.saana.com/

http://www.carana.com/

http://www.carana.com/

http://www.westafricafoodmarkets.org


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Results to date

Round one of the Challenge Fund (CF) concluded in March 2016, targeted at agri-businesses in Burkina Faso, Ghana, Nigeria and Niger trading cassava, maize, millet or sorghum across two trade corridors. Contracts have been signed with three successful grantees, two of which are based in Nigeria, and one in Niger. Of the three businesses, one is a commodity exchange intervention with the potential to deliver significant development results if successful. Despite cross-border trade targets not having been set with this applicant for attainment the very early months of the grant funding period, the business is showing significant early progress: it has already transacted 350 Metric Tonnes (MT) of sorghum from Nigeria into Niger and has contributed to WAFM exceeding its annual warehousing storage target by more than ten times its set milestone, having made investments in an additional 37,000 MT of warehousing storage since the start of the grant operations period.

A second round of the Challenge Fund has been launched in all four countries. Round two received eighty-four eligible applications and the project reports that the second round was marked by an increase in both application quality and in the number of shortlisted applicants from Francophone countries. Of the eighty-four concept notes received for round two, nineteen have been invited to develop full proposals.

Annual Reports from DFID since 2013 are all available here.

lessons learnt

Female owned businesses remain a significantly low percentage of the total number of proposals submitted. For instance, in the first round of the challenge fund, only four of the 88 applications were submitted by a female-owned business and they were from Nigeria (2), Ghana (1) and Burkina Faso (1).

Language was considered a major barrier to applicants from the Francophone countries. However, the low number of successful applications from Ghana, an English speaking country suggests that language may not necessarily translate into good proposals.

Majority of the proposed businesses focused on scaling up out-grower networks or farming cooperatives to increase production and/or processing. The inference is that smallholder out grower schemes are a key part of a thriving agribusiness.

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13https://devtracker.dfid.gov.uk/projects/GB-1-202577/documents/

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3. competitive African cotton initiative (coMPAci)

DonorThe Bill & Melinda gates foundation, the german federal Ministry for economic cooperation and development (BMZ), the Aid by Trade foundation, Walmart and the gatsby foundation

Timeline 2009 –2016

Countries Benin, Burkina faso, cameroon, côte d’ivoire, ethiopia, ghana, Malawi, Mozambique, Tanzania, uganda, Zambia (11)

Budget euR 96 million (equivalent to USD 107 million) including all matching funds from cotton companies

I m p l e m e n t i n g Partner

deutsche gesellschaft für internationale Zusammenarbeit (giZ) gmbh, deutsche investitions und entwicklungsgesellschaft (deg), private cotton companies in the above mentioned countries

Website COMPACI

Contact PersonWolfgang Bertenbreiter

[email protected]


For various reasons, productivity in the African cotton sector is often low and inefficient. In Sub-Saharan Africa, cotton cultivation often takes place in remote and structurally weak areas, and is carried out by smallholder farmers who are tied to the value chain in the frame of outgrower schemes with cotton companies. Lack of knowledge regarding sustainable cotton production, lack of access to services, poor integration into international markets, and unfavourable policy frameworks all serve to weaken the potential contribution of the cotton sector to economic development and poverty reduction in the region.

objective

COMPACI aims at enabling 700,000 small-scale farmers in eleven countries of Sub-Saharan Africa to sustainably increase the productivity of their cotton and food crops production by the end of 2016, thereby raising their income by 35%. In this way, the initiative reaches nearly 20% of all cotton farmers in SSA. Since cotton sales contribute up to 50% of the smallholders’ cash income, it allows them to improve their living conditions.

In cooperation with the Aid by trade Foundation COMPACI furthermore aims linking farmers to the international market for sustainably produced cotton through the certification according to the Cotton made in Africa (CmiA) standard.

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14http://www.compaci.org/en/


http://www.compaci.org/en/


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Project Approach

The project supports smallholder farmers, mainly in remote and structurally weak areas in several countries of SSA. It encourages their integration into an effective cotton sector and provides training courses on sustainable cotton production practices to help them raise the productivity of their farms and increase their revenues from cotton and food crop production. Key activities of focus on:

§ Enhancing knowledge and skills at the producer level through training in various topics throughout the cotton production cycle,

§ Strengthening farmer’s entrepreneurship and agricultural management skills in the frame of so-called ‘Farmer Business Schools’

§ Diversification of cotton production in favour of food crop production

§ Strengthening Pan African Cotton Associations (as AProCA)

§ Sensitising cotton companies on the integration of female and male farmers in their collaboration systems

Whereas the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Deutsche Investitions- und Entwicklungsgesellschaft (DEG) are commissioned by several donors (the Bill & Melinda Gates Foundation, the German Federal Ministry for Economic Cooperation and Development (BMZ), the Aid by Trade Foundation, Walmart and the Gatsby Foundation) for the management of the program, local implementation is done in cooperation with private cotton companies that work with the farmers in a contract farming relationship. Cotton produced by COMPACI farmers can be certified according to the CmiA criteria. On the demand-side, an alliance of textile enterprises established by the Aid by Trade Foundation is integrating the certified cotton into their international value chains. These textile companies pay a license fee to the Foundation in order to use the CmiA label on their products. The revenues from the licences are then reinvested in the project countries, where they help pay for the CmiA verification process, agricultural and business management training, women’s promotion programmes and school projects.

Results to date

§ Over 820,000 smallholder farmers were trained in Basic Agricultural Techniques

§ More than 638,000 farmers were trained in conservation agriculture techniques

§ More than 142,000 producers were trained through Farmer Business School trainings

§ 67,000 female farmers are organised in women’s cooperatives

§ 752,000 small-scale farmers are verified according to the Cotton made in Africa (CmiA) standardsIn the long term COMPACI aims to increase sustainable cotton production in an efficient way that allows increasing farmers’ income and includes food crop production to improve food security of small-scale farming families. By the end of 2016 COMPACI will be ending and the Aid by Trade Foundation, who continues to organize certification according to the CmiA label as well as standard development, currently is in the process of exploring possible options to continue in the future with the support of selected elements promoted in the frame of COMPACI.

lessons learnt

The main lessons learnt are to think big as complex Value Chains require complex support programs. It is equally important to focus on comparative advantage of contributing stakeholders (private-public-civil). The cost-effective modes of delivery, from tailor-made solution to more standardized interventions, are important. Finally, the business crosses borders and the value chains programs have to follow.

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4. competitive African cashew initiative (comcAshew) – (former African cashew initiative - Aci)

Donor german federal Ministry for economic cooperation and development (BMZ) and the Bill & Melinda gates foundation (until 04/2016)


Countries Burkina faso, Benin, ghana, côte d’ivoire, Mozambique

Budget euR 48 million (equivalent to USD 62 million)


deutsche gesellschaft für internationale Zusammenarbeit

(giZ) gmbh in partnership with sAP, Kraftheinz, , intersnack, olAM, Trade and development group , Walmart, Ministry of food and Agriculture in ghana, Red River foods, Technoserve, fairmatchfair Match support, The sustainable Trade initiative, Technoserve, African cashew Alliance, usAid, cashew Promotion institute Mozambique (incAJu), direction générale de la Promotion de l’economie Rurale (dgPeR) Burkina faso

Website ACi /ComCashew

Contact PersonRita Weidinger

rita.weidinger @giz.de


More than 50 per cent of the global cashew crop is produced by about 1.5 million smallholder farmers in Africa. The vast majority of these farmers live in rural areas and struggle to earn as much as USD 150 from cashew production each year. The low incomes result from a number of factors, including low yields, poor quality nuts and a lack of business skills.

Cashew farmers in Africa rarely organise themselves into associations, which weakens their bargaining positions with dealers. Furthermore, the often poor quality of their cashew nuts hampers their competitiveness on international markets. Another disadvantage is the fact that less than ten per cent of Africa’s raw cashews are actually processed in Africa. Consequently, opportunities for job creation, local value addition and poverty reduction remain largely untapped.

objective

The main objective of ComCashew is to increase the competitiveness and incomes of Africa’s smallholder cashew producers and of its processors and other actors in the value chain, thereby achieving a lasting reduction of poverty in the project countries. The initiative aims to increase the cashew processing capacity within Africa, to develop sustainable supply chains and to improve the organisation and coordination of the overall sector.

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Project Approach

ComCashew brings together a long list of national and international partners from the private and public sectors involved in the cashew value chain: the African Cashew Alliance; the Cashew and Cotton Board of Ivory Coast; the Netherlands-based sustainable trade initiative IDH and Trade and Development Group; Mozambique’s national cashew institute INCAJU; the international corporations Intersnack and KraftHeinz, Walmart and Red River Foods, and agri-business OLAM; Agricultural Ministries from Ghana, Burkina Faso and Benin; the German software developer SAP; and USAID.

As part of ComCashew, GIZ works with its partners TechnoServe and FairmatchSupport to provide technical training and business advice to farmers and processors, and to build links between farmers and processors. ComCashew reinforces other initiatives in the cashew sector and addresses questions of investment and processing. It specifically targets companies that process cashew nuts in Africa, advising them on their daily operations and helping them to stay informed about market developments. It supports their applications for credit and other financial assistance as well as their efforts to improve technologically, and it provides technical assistance for the processing itself. It is also developing data systems to supply farmers and processing companies with relevant market information.

The initiative promotes African brands to improve the profile of high quality African cashews on world markets. It works with stakeholders along the cashew value chain to find ways of persuading decision-makers in the project countries to improve the business climate for cashew production and processing.

ComCashew has accumulated valuable experience and knowledge in the production and processing of cashew nuts and its by-products which it shares with others in the industry, notably processors and potential investors in Africa’s cashew processing sector. With a combination of strategies, the initiative aims to improve the incomes of 430,000 farmers. By 2016 they should be earning at least USD 600 a year from sales of raw cashew nuts alone. It also aims to create 5,800 new jobs in cashew processing factories, most of them for women, and to increase the quantity of raw cashews being processed, from 7,000 MT to 100,000 MT.

Results to date

Since it started in April 2009, ComCashew has provided training to more than 414,400 cashew farmers in Benin, Burkina Faso, Côte d’Ivoire, Ghana and Mozambique – almost 30 per cent of all cashew farmers in Africa. About 22 per cent of these are women. Meanwhile, some 2,200 cashew experts have received specialised training and are now qualified to work as trainers themselves.

On the production side, the quality of cashews has improved significantly, which has helped boost the links between smallholder cashew farmers and local processing companies. The initiative remains on course to meet its target of improving the raw cashew nut sales per farmer by 2016.

Already, nearly 5,800 new jobs have been created in the local processing industries, 73 per cent of them for women. Their combined earnings amount to about USD 6,000,000, with a maximum wage of USD 800 per woman per year. By the end of 2015, 20 processing companies supported by ComCasheware using their newly acquired knowledge for business decisions, and the overall cashew processing capacity had expanded considerably to 48,200 MT (from 8,150 MT in 2008). While not all this capacity is fully utilised as yet, local processing in Africa has risen from five per cent to ten per cent.

lessons learnt

To promote sustainable business relations along the cashew value chain, ComCashew engages both private and public enterprises in implementing its projects. To do so it uses a funding instrument known as the Cashew Matching Fund. The projects financed in this way aim to improve quality standards, promote sales direct from harvest, and increase income opportunities.

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5. competitive African Rice initiative (cARi)

Donor german federal Ministry for economic cooperation and development (BMZ), the Bill and Melinda gates foundation and the Walmart foundation


Countries nigeria, ghana, Burkina faso and Tanzania


I m p l e m e n t i n g Partner

deutsche gesellschaft für internationale Zusammenarbeit

(giZ) gmbh in cooperation with Technoserve,

Kilimo Trust, and John A. Kufuor foundation

Website CARI

Contact Personstefan Kachelriess-Matthess

stefan.kachelriess @giz.de


Rice is one of the most important basic foodstuffs in Africa. While demand has risen sharply in the last few years, lo cal producers are only benefitting from this to a limited extent. Most of the rice consumed is imported due to lower prices, instead of meeting rising demand through domestic rice production and distribution.

Productivity is low in irrigation areas and earns only meagre incomes for rice farmers. There is scope for increasing productivity and profitability. Currently, there is only limited use of equipment and cultivation techni ques are inadequate. The losses that occur due to limited storage capacity and insufficient processing technology represent a further challenge. Much of the rice that is produced is too expensive, of poor quality and uncompetitive in the growing urban markets compared with imported rice. S o far, there has been no coordinated support for financially sustainable business models in collaboration with any private-sector stakeholders.

objective

120,800 low-income rice farmers in Nigeria, Ghana, Burkina Faso and Tanzania – of whom at least 30 per cent are women – become more competitive and enjoy greater access to markets. Incomes increase significantly.

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16http://cari-project.org


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Project Approach

In order to assist the rice farmers, the programme is supporting both a sustainable increase in the intensity of small-scale rice cultivation and the development of inclusive business models. Such models improve access to inputs, services and equipment, and create a more stable market for produce. It fosters business linkage between all actors of the value chain. Consumers are thereby able to purchase locally produced rice at competitive prices and enjoy better quality rice. The programme is applying various business models so as to achieve widespread increases in income.

At the same time, the programme is also supporting crop diversification and local processing. This leads to additional improvements in food security, incomes and liquidity, and means that producers are less exposed to the risks of product failure. CARI’s core functions also include delivering training and education via farmer business schools, training on family nutrition, processing (small scale parboiling) and marketing. CARI provides training and communication materials, and supports the development of innovative solutions using information and communication technology (ICT).

CARI works in close cooperation with a broad-based association of stakeholders from the public and private sectors, research institutions, national and international foundations, non-governmental organisations and development cooperation organisations.

Most importantly, the programme is offering matching grants to organisations and businesses that use their own resources for the activities proposed to be supported by CARI. The matching grant funds are provided by the Bill and Melinda Gates Foundation and the Walmart Foundation. The programme is managed from a regional coordination office based in Abuja, the capital of Nigeria.

Results to date

In Nigeria, Ghana, Burkina Faso and Tanzania, projects are supported to reach out to more than 135,000 male and female farmers to be integrated into value chains as suppliers of local rice millers on fair terms. About 15,000 more smallholders are to follow soon. Trust building and long-term supply arrangements ensure smallholders’ access to reliable markets as well as transparent and fair prices. The processing companies benefit from a constant supply of quality paddy. Training on good agricultural practices, such as adapted soil preparation, harvest and postharvest techniques, improved methods of irrigation, integrated pest management as well as high quality seeds, provide for higher yields and better quality in the mid-term. First results from Nigeria are promising: Under irrigation, yields are expected to increase from 1.8 to 6 tons per hectare. First results from demo plots show an increase to 4 tons per hectare after the first year. Therefore, in addition to the yields, the long-term incomes and overall living conditions of people will improve.

lessons learnt

The main lessons learnt are to think big as complex Value Chains require complex support programs. It is equally important to focus on comparative advantage of contributing stakeholders (private-public-civil). The cost-effective modes of delivery: from tailor-made solution to more standardized interventions are important. Finally, the business crosses borders and the value chains programs have to follow. The learnings gained form one country can be used to improve in another.

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6. sustainable smallholder Agribusiness in Western and central Africa (ssAB)

Donor

german federal Ministry for economic cooperation and development (BMZ), european union (since 2014 under new intra-AcP commodities Programme), nigeria incentive-based Risk-sharing system for Agricultural lending (niRsAl; since 2013); federal Ministry of Agriculture and Rural development (nigeria); from 2009 to 2013: Bill & Melinda gates foundation and World cocoa foundation


Countries nigeria, ghana, cameroon, côte d’ivoire, Togo

Budget euR 18 million (equivalent to usd 20 million)


deutsche gesellschaft für internationale Zusammenarbeit (giZ) gmbh with the ghana cocoa Board, the Ministry of Agriculture côte d’ivoire, the federal Ministry of federal Ministry for Budget and national Planning, nigeria, the Ministry of economy, Planning and Regional development of cameroon, the Ministry of Agriculture, livestock and Water resources in Togo.

Website SSAB

Contact PersonAnnemarie Matthess

annemarie.matthess @giz.de


Western and Central Africa accounts for more than 70 % of the worldwide cocoa production. Cocoa is mainly grown by smallholders on up to two hectares. This ‘brown gold’ is the most important source of income for over two million smallholders and their families. Additional income is earned from food and livestock production. Yields of cocoa and food crops are, however, below potential of recommended techniques. On average, the families of small-scale cocoa farmers have to live with less than two US d ollars per person per day. Many cocoa producers lack the financial resources, technical knowledg e and in particular the entrepreneurial skills to use modern technologies and access agricultura l markets to boost their income. The high dependence on cocoa production as a source of income coupled with fluctuating prices on the world market leads to impoverishment, malnutrition and social problems such as child labour.

objective

The goal is to help 364,500 male and female smallholders, mainly in the cocoa growing areas, to sustainably improve their incomes and food supplies from diversified production.

Project Approach

SSAB promotes 50 public, private and civil society partners to (1) sustainably provide business skills training to 364,500 male and female cocoa producers following the Farmer Business School approach developed by GIZ. (2) Agro-dealers, microfinance institutions and selected cooperatives establish Business Service Centres providing inputs, technical advice, market information and agricultural loans based on formal bank savings as collateral. (3) More cost-effective extension approaches and tools including innovative ICT-supported are developed with partners to intensify food and cocoa production (since 2015). (4) Successful approaches are made available to interested programs, companies, organizations in Africa and to the Comprehensive Africa Agriculture Development Program (CAADP).

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17https://www.giz.de/en/worldwide/16002.html


https://www.giz.de/en/worldwide/16002.html

mailto:annemarie.matthess<200B>@giz.de

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Results to date

In cooperation with local partners, the programme has developed the Farmer Business School (FBS) training programme to strengthen entrepreneurial skills. Over 800 trainers and supervisors from extension organizations, sector bodies, micro-finance institutions, companies and civil society organizations have been qualified to implement FBS. Since 2010, they have trained over 335,000 farmers (27% women). FBS graduates plan their production, record their income and expenses for agricultural inputs and labour, and assess their profits. 70 to 99 per cent of the farmers polled have increased cocoa and other crop yields, such as maize, by between 50 and 100 per cent. Over 60 per cent have opened accounts with rural banks, and their savings serve among other as collateral for input loans. Almost a third of these new banking customers have been granted loans for cocoa and food production. On this basis, they invest in improved production techniques and quality inputs. 170 qualified extension agents of partners have trained 35,000 smallholders (17% women) on profitable Good Agricultural Practice (GAP). Business service centres in Côte d’Ivoire and Cameroon have served over 36,000 farmers since they opened in 2011. New Business Service Centres are emerging in these countries as well as in Nigeria, Ghana and Togo. A third of the FBS trained smallholders have joined existing producer organizations for better market access, and almost half of FBS graduates have formed new producer cooperatives. Annual income increases between EUR 660 and EUR 830 have been recorded (Baseline: 54 to 165 EUR per household; according to country). Smallholders use this additional income to intensify production, replant cocoa as well as to improve their housing conditions and to support the primary and secondary school education of their children. The net present value (@20%) of income impacts at farm level of the programme until 2018 is estimated at 120mn EUR.

lessons learnt

For large scale implementation, standardized interventions such as Farmer Business School or GAP training with clear cut messages and training material are success factors. Strengthening smallholders’ business skills triggers better take-up of technical training, access to financial services, investments and producer organization. This motivates public and private partners to mobilize resources (worth approx. 2 mn EU p.a.).

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7. The Africa enterprise challenge fund (Aecf)

Donor(s)

The uK’s department for international development (dfid), Australia’s department of foreign Affairs and Trade (dfAT), the Ministry of foreign Affairs of the netherlands (MfA), the international fund for Agricultural development (ifAd), global Affairs canada, the consultative group to Assist the Poor (cgAP), the danish international development Agency (danida), and the swedish international development cooperation Agency (sida)

Timeline April 2013 – April 2018

Countriesdemocratic Republic of congo, ethiopia, ghana, Kenya, Malawi, Mozambique, nigeria, Rwanda, sierra leone, somalia, south Africa, sudan, south sudan, Tanzania, uganda, Zambia, and Zimbabwe

Budget usd 244 million

Implementing Partner(s)

KPMg international development Advisory services (idAs) as fund Manager, Triple line as M&e and learning partner

Aecf is a special partnership initiative of AgRA, the Alliance for a green Revolution in Africa

Website AECF

Contact Personhugh scott, director

[email protected]


There is a significant amount of untapped potential in smallholder farming and in developing MSMEs in Africa. The aim of the fund is to improve livelihoods and reduce poverty by stimulating private sector entrepreneurs to improve market access and the functioning of markets for the benefit of the rural poor. AECF aims at reaching small-holder farmers both as consumers, for example by providing access to finance or quality inputs, as well as producers in integrated agriculture value chains.

objective

The AECF awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Its purpose is to improve incomes of smallholder farmers and the rural poor.

Funding is targeted at specific countries (including Kenya, Tanzania and South Sudan) or at development corridors involving several countries and companies must match the funding provided by the AECF.

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18http://www.aecfafrica.org/


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Project Approach

AECF is a multi-donor funded financing vehicle which disburses grants and non-recourse loans based on funding competitions. AECF funds projects focused on agriculture, renewable energy and climate change adaptation, and access to financial services and information.

AECF reports that for each USD 1 of AECF funding, projects and third parties have invested USD 2.78: a sign of the catalytic nature of the funding.

AECF has made the choice of funding a variety of project types instead of focusing on one type of project. This reflects the AECF’s commitment to the Making Markets Work for the Poor (M4P) approach and its aim to develop linkages and achieve systemic change within market systems. Through its projects, AECF also aims at impacting relevant business regulatory environments.

Results to date

AECF launched in mid-2008 and has since run fourteen rounds of its investment competition, supporting new investments in the agribusiness, renewable energy and adaptation to climate change technologies, rural financial services and media and information sectors, across Africa. Currently AECF has approved 133 projects in 22 countries in Africa.

Four rounds of our general competition have been followed by a series of special windows, targeting Fragile States (such as DRC and South Sudan). AECF has country specific windows for Zimbabwe (3 rounds), Tanzania (2 rounds) and most recently for South Sudan. The Research into Business (RIB) and the Renewable Energy and Adaptation to Climate Technologies (REACT) windows are more sector-specific. RIB has had two rounds that targeted innovative business ideas that would commercialize the results of agricultural research. 9 RIB Round 1 competition finalists are now in operation. RIBS Round 2 applications are currently being processed. REACT Round 1 and 2 was open to the five countries of the East African Community. 21 businesses from REACT Round 1 were recently contracted. REACT Round 2 closed on 15th December 2011 and processing of applications is ongoing.

To date over 4,230 applications have been received and 89 projects have been awarded funding (commitment US$65m). A further US$24, 371, 658 m has been committed to these projects by the private sector. Overall the response from the private sector has been excellent with competition for AECF funds intense.

lessons learnt

Not yet available.

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8. All AcP Agriculture commodities Programme

Donor european union

Timeline 2006-2011

Countries Africa, caribbean and Pacific regions (AcP)



The food and Agriculture organization of the united nations (fAo), the common fund for commodities (cfc), the international Trade centre (iTc), the united nations conference on Trade and development (uncTAd) and The World Bank

Website All ACP Agriculture Commodities Programme

Contact Person

Bernard Rey, deputy head of unit dg devco

european commission

[email protected]


Commodity-producing African, Caribbean and Pacific (ACP) countries have struggled to stay competitive in the global marketplace. Deregulation and liberalization have gradually eroded their capacity to develop and implement strategies to improve productivity and rural livelihoods. With €45 million in funding, the ‘All ACP Agricultural Commodities Programme’ (AAACP), which ran from 2007 to 2011, drew on the expertise of five international organizations, including FAO, to reduce the vulnerability of the commodities sectors and producers in those three regions.

objective

The overall objective of the AAACP is to reduce income vulnerability and improve the livelihoods of producer’s dependent on agricultural commodities - in the Africa, Caribbean and Pacific regions (ACP) - by building the capacity of actors along commodity chains to develop and implement sustainable value chain strategies.

The programme seeks to achieve four main results:

1) First, it aims to train stakeholders of ACP countries/regions so that they are able to develop, adapt and implement sustainable sectoral strategies.

2) Secondly, the programme assists in the implementation of priority interventions stemming from such strategies. It does so in such a way that access to markets, to production factors and to support services, as well as their use, are improved.

3) Thirdly, it seeks to sensitize ACP stakeholders to the use of market-based risk management tools.

4) Finally, the experience, complementarities and synergies of the four Programme implementation agencies (namely, CFC, FAO, ITC, WB & UNCTAD) are used efficiently and to the benefit of the stakeholders.

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19http://www.fao.org/agriculture/ippm/projects/regional/gcp-int-045-ec/en/


http://www.fao.org/agriculture/ippm/projects/regional/gcp-int-045-ec/en/


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Project Approach

The activities funded by the programme include; i) Development and implementation of commodity strategies; ii) Institutional strengthening and capacity-building; iii) Supply chain development; iv) Market-based innovations, including risk management instruments; and v) Diversification activities.

Building the capacity of policy makers to design policies that incorporate the value chain approach has resulted in the development of integrated commodity strategies which are currently being implemented by AAACP partners across the ACP regions. Pilot testing of the business model approach in fifteen countries across the ACP regions involving; producer-buyer’s meetings to resolve ongoing disputes; strategies to strengthen market partnerships between smallholders, agro processors and industrial buyers; and partnering with local service providers as market facilitators that coordinate value addition activities and supply to the market. Professionalizing farmer organizations using a cascade approach at the regional, sub regional and national levels to strengthen skills in agribusiness management so that farmer organizations can interact more effectively with the public and private sectors. Improving production technologies with the Integrated Production and Pest Management approach using farmer field schools, knowledge on local agroecosystems, and pest and production management to allow smallholders reduce pesticides while improving income, quality and yields using simple, low cost practices. Strengthening existing inter-professional organizations and catalysing the launch of new national commodity platforms in order to complement ongoing national value chain strategies. Finally, customizing risk mitigation strategies and financial schemes with the involvement of commercial banks and local financial institutions and farmer organizations, which has also proven to be an effective strategy for ensuring sustainability of interventions.

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Results to date

The programme targeted a diverse class of actors according to the type and level of intervention by the respective Implementing Organizations (IOs). Interventions were focused on commodity producers, companies, intermediary organisations (chambers of commerce, producer organizations, etc.) engaged in intra-regional support to the development of value chains. The key commodity chains included cotton, coffee, roots and tubers, fruit and vegetables.The programme’s achievements include:· Increased cooperation between public and private sectors in the framework of strategy and

policy development as well as projects management;· Capacity building of stakeholders;· Complementarities between the five IOs regarding commodity and agricultural value chain

development issues in ACP countries;· Increased knowledge and awareness of agricultural value chain issues among stakeholders in

ACP countries; · The practice of farmer field schools supporting the development of good agricultural practice;· The building of linkages between producers and buyers of various commodities and products.The main cross-sectoral activities were focused on: value chain finance; market information system; strengthening agri-business capacities of producer organizations providing market oriented services to members; policy support for value chain development and analysis on agricultural price volatility; risk assessment, review and promotion of agriculture commodities exchanges.In the Caribbean region stakeholders choose to give priorities to food crops defined to cover fruits and vegetables, roots and tubers, herbs and spices. In the Central Africa region, the priority sector were cassava and coffee, support ranged for strategy development to processing and marketing.Cotton was the major commodity for West Africa region. The AAACP support covered: strategy, formulation and updating, good agricultural practices and integrated pest management. Other sectors selected as priority were cereals, Arabic gum, and horticultural products.The AAACP covered a wide range of commodities in the Eastern and Southern African regions: food crops and horticulture, cotton, tree crops and cereals. The AAACP contributed to improve the efficiency of smallholders and to strengthening linkages across the cotton value chain.The emphasis on the Pacific region was on fruit and vegetables chain development, activities supported range from strategy development, capacity building and support to farmers’ organizations.


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In the specific case of the AAACP support to the cotton value chain in Africa, the main achievements were the following:Regarding the first objective – the development of cotton strategies – the Programme has, with the technical assistance of ITC, covered all the African regions. The regional cotton strategies were formulated using a “value chain” approach focusing on the market, and a participatory process which involved major private and public stakeholders in the cotton sector at the regional and national levels. The second objective (supporting programme implementation) covers a wide range of interventions which make up the majority of the 40 projects approved by the Steering Committee of the AAACP in support of cotton. And all these projects are in line with the six areas of focus of the Partnership’s Action Framework. The EU partnered with CFC in implementing some of these major projects, one being the 5-million-euro project on the prevention of seed cotton contamination, under which 27,000 producers, 140 extension officers, and 240 transporters have been trained as at end of 2011. The WB and ITC are also involved in this major project.The project also been contributed to improve the production and efficiency of the cotton value chains, with FAO testing and disseminating good agricultural practices (GAP) and integrated production and pest management (IPPM) methods in four West African countries: Benin, Burkina Faso, Senegal and Mali. Over 21 000 farmers and 400 extension officers have benefited from training under this project. On behalf of the Programme, FAO has also undertaken a review of the seed systems in eastern and southern Africa and has assisted farmer’s associations in upgrading their business models. Building capacity of sector organisations is a major concern of the AAACP (Triple ACP). Support has been provided to sector organisations like ACA and APROCA to improve their knowledge of markets, their understanding of buyers’ needs, of the cotton trade and marketing practices, notably through study tours to importing countries paired with training.

lessons learnt

Not yet available.

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9. Agriculture financing initiative – Agrifi

Donor european union

Timeline 2016-2030

Countries 60 countries

Budget euR 105 million (to be expanded)

Implementing Partner information not yet available

Website concept note available here

Contact Person

Bernard Rey, deputy head of unit dg devco

european commission

[email protected]


Policies and public investments play a critical role in enabling, facilitating and guiding private sector development. The support the European Union (EU) has been providing to governments and institutions will continue. The dialogue on policies is actually a key driver, not only for building an enabling environment for private sector investment and in fine sustained growth, but also to ensure a fair distribution of growth benefits, the promotion of environmentally friendly practices and the enforcement of internationally recognised social rights.

Complementing this classical development approach, and in order to effectively contribute to foster private sector investment in food systems development, the EU is designing a specific Agriculture Financing Initiative: AgriFI.

Increased investment in rural areas is notably essential to achieve development for the 75% of the poor living in rural areas. Beyond public financing additional investment is needed to enhance the development impact of the interventions and achieve impact at scale. To achieve inclusive and sustainable agricultural growth, increased investment in smallholder agriculture and agribusiness medium, small and micro enterprises (MSMEs) is required. As already mentioned, investment in agriculture in developing countries is growing, but initiatives to support the investment capacity of small producers and rural MSMEs remain largely insufficient. This is not only due to the inherent risks in agricultural production (weather and environmental conditions, quantity and quality of produce, market prices), but also to higher risks associated with smallholder production (limited technological and innovative capacities, market failures inefficiencies and distortions, limited access to financial services and markets), as well as the high cost of doing business in small rural markets.

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http://www.ioe-emp.org/fileadmin/ioe_documents/publications/Working%20at%20Regional%20Level/Africa/EN/_2015-07-01__AgriFI_Concept_Note.pdf


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objective

AgriFI address the aforementioned situation aiming to improve the capacity to bear risk using public money in order to encourage project promoters and attract private finance to viable investments which would not have materialised otherwise. AgriFI is therefore about addressing market failures. It aims at financing those actions that have a clear development impact on those that would otherwise not be reached. This includes smallholders with limited market orientation, vulnerable groups, women and youth, farmers and entrepreneurs.

The key feature of AgriFI is that the provision of EU support will mobilise additional public and private investment, in particular through the provision of risk capital, guarantees or other risk-sharing mechanisms. EU support will contribute to “de-risking” the investment and therefore to close a financing gap.

AgriFI responds to the lack of financing mechanisms adapted to farmers and agro-entrepreneurs, particularly smallholders and agribusiness MSMEs.

Project Approach

AgriFI is an initiative under which we envisage that various programmes will be implemented, funded from the different EU financial instruments and sources, notably through the existing EU blending mechanisms which allow combining grants from EU funding and loans from Development Financial Institutions.

AgriFI relies upon 3 pillars: 1) investment, 2) business development and advisory services to farmers and agro-entrepreneurs; and 3) a robust monitoring framework based on value chain analysis for better accountability and decision making.

EU support to investments will be governed by a set of guiding principles and criteria, as reflected in the Commission Communication on the private sector. All investments will have to demonstrate that they are economically viable and inclusive, as well as environmentally and socially sustainable. Business development and advisory services are needed to set-up bankable projects based on innovative business and risk management plans, as well as to provide capacity building to strengthen the participation of smallholders and MSME agribusinesses in the value chains. We believe that local partners and organisations will have a major role to play in this.

AgriFI intents fostering the development of sustainable value chains and food systems to achieve food security and improve nutrition through: i) linking commercial-oriented smallholder farmer to markets; ii) creating decent jobs with a specific attention to women and youth; and iii) improving access to nutritious foods at affordable prices. This food systems approach will facilitate broader interventions along the value chain, in particular on food safety and quality standards, both for domestic and export markets.

Results to date

Too early to report

lessons learnt

Too early to report

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10. West African seed Program (WAsP)

Donor usAid (under feed the future initiative)

Timeline 2012-2017

CountriesBenin, Burkina faso, ghana, Mali, niger, nigeria, senegal (main activities). seed policy and regulations also cover Mauritania, chad, cape verde, cote d’ivoire, gambia, guinea, guinea Bissau, liberia, sierra leone and Togo



coRAf/WecARd (conseil ouest et centre africain pour la recherche et le développement agricoles / West and central African council for Agricultural Research and development) and ecoWAs, ueMoA, cilss, cgiAR, nARs, RoPPA, WAAPP national offices, national seed Trade Associations and Africa seed Trade

Website WASP

Contact Person

Matt Rees,

usAid deputy coordinator for Trade Africa

[email protected]


One of the largest constraints to agricultural productivity in West Africa is the inefficiency of the regional seed system. In response, the USAID/West African Seed Program (WASP) was initiated in 2012 through USAID’s regional partner, the West and Central African Council for Agricultural Research and Development (CORAF/WECARD).

objective

Contribute to sustainable improvement of agricultural productivity in West Africa. WASP is aiming at expanding the availability of quality seeds from the current 12 to 25% over the five-year period with a goal to contribute to the sustainable improvement of agricultural productivity. The program seeks to achieve its objectives by building an Alliance for Seed Industry in West Africa (ASIWA) involving all partners working in the seed sector, which will ensure a sustainable production and use of quality seeds of the major staple crops. The program will allow ECOWAS and CILSS countries to share experiences across the sub-region and with other regions of the world while minimizing duplication of effort among programs, and building synergies.

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Project Approach

WASP aims to increase the production of quality-improved certified seeds in West Africa’s seed supply from 12 percent to 25 percent by 2017. The West African seed value chain lacked strong links among research institutions, seed producers, certifiers and farmers. WASP works to facilitate such links by recognizing the relationship between public and private sectors, and the central role of the private sector in the development of more standard quality seeds. WASP also increases the coordination capacity of regional seed networks including national seed associations, which are critical to the long-term success of a robust and high quality regional seed supply.

The WASP program helps farmers to access higher quality seeds that improve yields and are resistant to pests and drought. WASP also encourages intra-regional seed trade by harmonizing regional seed standards and policies.

Feed the Future is focused on permanent, foundational improvements to food economies that will support farmers in the long term. Its strategy is to identify constraints to create efficiency in production, and build the capacity of West Africans. WASP focuses on building the private sector and establishing seed networks so that farmers can have access to high quality seed supply that is self-sufficient.

Results to date

The programme, in partnership with Syngenta Foundation, has improved the leveraging of funding for strengthening capacity for the implementation of the ECOWAS Seed Regulation. USD 2 million from the WAAPP Regional Coordination Office were leveraged to develop the project to be implemented in seven WA countries. A mission to support meetings between a high powered delegation, led by the ECOWAS Commission and high government delegations (Ministers, Attorney General, Directors, etc) facilitated the implementation of the ECOWAS regulations for seed, fertilizer and pesticide.

A roadmap to establish one unique Regional Seed Committee ECOWASCILSS-UEMOA and to implement a common harmonized seed regional seed regulation was developed. Finally, an agreement was reached among ECOWAS, CILSS and UEMOA to implement a common seed regulation.

lessons learnt

Not yet available.

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11. West Africa fertilizer Program (WAfP)


Timeline 2012-2017

Countries 15 ecoWAs countries as well as Mauritania and chad



international fertilizer development center (ifdc) with Africa fertilizer and Agribusiness Partnership, ecoWAs, coRAf, cilss

Website WAFP

Contact PersonRob nooter. senior development officer, ifdc

[email protected]


Fertilizer use in West Africa is far below the world average, leaving farmers without an important input that can significantly improve yields.

Objective

The USAID West Africa Fertilizer Program (WAFP) aims to improve agriculture productivity by giving farmers better access to high quality, affordable fertilizers. The program strengthens private sector capacity for supply and distribution, and provides regional decision makers with critical fertilizer recommendations and subsidy program and impact information. WAFP also works with public officials to harmonize national fertilizer regulations and implement quality control programs to meet the Economic Community of West African States (ECOWAS) regional standards.

Project Approach

IFDC will work closely with a sub-grantee, the African Fertilizer and Agribusiness Partnership (AFAP) to ease supply-side constraints and ensure a reliable, affordable fertilizer supply in West Africa, particularly in Ghana. The principal operating mechanism for AFAP support will be agribusiness partnership contracts (APCs) under which eligible international, regional or local agribusinesses will agree to perform significant market development activities with local farmers and agribusinesses in exchange for AFAP assistance. This assistance may include management and technical advising, credit guarantees, matching grants (for demonstration and other demand creation activity) and in-kind investments. Additional collaboration in the form of small grants will be developed with local private sector partners, nongovernmental organizations and research agencies to ensure full implementation of all proposed activities and sustainable continuation. Across the program, staff members will work to protect the environment and promote gender equity.

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22https://ifdc.org/usaid-wafp/


https://ifdc.org/usaid-wafp/


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Results to date

The project facilitated the development and conduct of West Africa Fertilizer Stakeholders’ Forum, a first ever innovative platform for public-private sector dialogue and business opportunities for fertilizer stakeholders in West Africa. They also facilitated the implementation of the ECOWAS fertilizer regulatory framework by providing technical assistance for adoption of the main regulation, and by embarking on joint missions with CORAF, CILSS and ECOWAS to advocate for the implementation of seed, pesticides and fertilizer regulations.

The ECOWAS main fertilizer regulation was published in the national gazettes of eight Member States. They Established extensive geo-spatial database and directory of fertilizer stakeholders across West Africa. They successfully piloted an e-tracking platform in Ghana to monitor and track subsidized fertilizer distribution.

lessons learnt

Not yet available.

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12. feed the future food Across Borders Program (ProfAB)

Donor usAid (under feed the future initiative) and global Affairs canada

Timeline 2015-2020

Countries Benin, Burkina faso, cape verde, côte d’ivoire, gambia, ghana, guinea, guinea-Bissau, liberia, Mali, niger, nigeria, senegal, sierra leone and Togo

Budget usd 13.5 million (of which $8.6 planned by usAid)


cilss with hub Rural, Borderless Alliance, environmental development Action in the Third World - African center for Trade, integration and development (endA-cAcid)

Website PROFAB

Contact Person

evelyn Ayivor

Progam Management specialist

[email protected]


The main barriers to cross-border trade include constraints like road harassment, export restrictions, certificates of origin, veterinary certificates and value added taxes on foodstuffs, as the often cumbersome procedures at the border posts themselves.

objective

Enhance food security, economic growth, resilience, and poverty reduction in West Africa through an integrated common market. More specifically:

• Formulate and implement effective regional policies and strategies to address primary barriers to regional agricultural trade;

• Expand access to reliable information on cross-border trade data and regulatory requirements;

• Strengthen results-oriented trade advocacy platforms.

Project Approach

ProFAB increases food security and economic growth by expanding the volume and value of intra-regional agricultural trade. The program supports a variety of activities contributing to a more integrated common market in West Africa. The Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU) house the ProFAB observatory and incorporate ProFAB results and outcomes into their regional policy efforts. ECOWAS, WAEMU, and USAID led the ProFAB steering committee. Hub Rural contains a coordination unit among the partners, including civil society, research, private sector and producer organizations.

Results to date

Not yet available.

lessons learnt

Not yet available.


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13. West Africa c4 cotton Partnership Project


Timeline 2014-2018

Countries Benin, Mali, chad and Burkina faso

Budget usd 14.8 million

Implementing Partner ifdc with icRA

Website West Africa C4 Cotton Partnership Project

C4 Cotton Partnership Factsheet

Contact Personifdc Burkina faso

[email protected]


As countries and regions strive to define their policies and investment plans for the agricultural sector, strategic food and agricultural commodities, such as cotton, need to be well positioned to fully achieve their potential to reduce poverty and food security. Sub-Saharan Africa is the fifth largest cotton exporter worldwide. Cotton is grown by 3.4 million smallholder farmers and more than 20 million people on the sub-continent are directly or indirectly earning a living from cotton. In the four largest cotton-producing (or C-4) countries in West and Central Africa (Benin, Burkina Faso, Chad and Mali), cotton is the primary economic activity for over two million farmers and provides livelihoods for more than ten million households.

The cotton sector in the C-4 countries is facing three main challenges: agricultural productivity, marketing and value addition. Yields are low and declining, research suffers from lack of means and organization, and, overall, there is a critical need for policy and institutional reforms to support the revitalization of, and overcoming the challenges of, the cotton sector.

objective

The C-4 Cotton Partnership Project (USAID C4CP) is a four-year regional activity, funded by the USAID West Africa Mission (USAID/WA), to increase food security in targeted areas of the C-4 countries through increased economic and social benefits for both men and women cotton producers and processors.

The program essentially focuses on improving the productivity and sustainability of cotton through a distinct regional lens, emphasizing cross border knowledge sharing and scaling best practices across borders. It aims at increasing incomes for male and female cotton producers and processors in targeted areas of the four countries.

The project supports regional and national institutions and organisations (public and private), that prioritize smallholder men and women cotton farmers and build upon the successes and lessons learned of US Governments’ past investments.

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Project Approach

The USAID C4CP project focuses on cotton and rotational crops including cereals and legumes. Given the essentially national context for cotton production and the regional context for food crops, the USAID C4CP project is strengthening capacity and building strategic partnerships to assist regional and national institutions in achieving their organizational objectives. Another important aspect of the project is to increase the economic and social benefits to women by conducting gender value chain analyses, developing gender responsive training materials, and delivering curricula for extension. This approach facilitates the effective dissemination of protocols, thus insuring that messages will reach women farmers. The project has three objectives or intermediate results (IR) to facilitate the achievement of its strategic objective:

• IR 1 – Support for increased agricultural productivity promoted through regional and national actors and stakeholders.

• IR 2 – Partnerships supporting cotton sector development strengthened.

• IR 3 – Social and economic empowerment of women producers and processors is enabled.

IR 1 is to be achieved through activities promoting the use of sustainable agricultural productivity technologies including postharvest handling and improved ginning. IR 2 focuses on creating strategic regional partnerships and improving coordination of activities related to the cotton sector, while IR 3 focuses on enabling the effective participation of women in the cotton sector through training, sensitization and advocacy.


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Results to date

IR 1: Sustainable Agricultural Productivity

· Developed 7 gender-sensitive training modules on Good Agricultural Practices (GAP) and post-harvest technology; also organized and delivered two fora on GAP and PH technology.

· Awarded small grants to 18 activity implementing partners in the C-4 countries to disseminate modules.

· Designed and facilitated a regional training workshop on NUTMON soil testing software.

· Organized two workshops for sub-grantees with a total of 50 participants.

IR 2: Strengthening of Partnerships Supporting Cotton Sector Development

· Creation and meetings of four project National Advisory Committees (one in each C-4 country). Organized first meeting of the Regional Consultative Committee with 200 representatives in attendance.

· Organized and delivered a regional workshop on soil fertility to 30 soil scientists.

IR 3: Economic and Social Benefits for Women

· Developed project gender strategy, gender-sensitive training guide and gender-sensitive training modules.

· Conducted study on gender roles in the cotton value chain in each of the C-4 countries.

· Inventoried women entrepreneurs in the C-4 countries.

· Delivered training-of-trainers for 79 senior trainers (including 15 women) from the four project countries.

· Established 22 women-only (or women dominated) demonstration farms in the C-4 countries

In addition, the project has also achieved;

· Capacity strengthening needs assessment study (ICRA’s input in training and methodology).

· Oration of Technical sheets from regional experts through a workshop facilitated by ICRA.

· Good Agricultural Practices (GAP) modules elaborated: Facilitation of workshops in which the 4-countries senior specialists were trained by ICRA.

· Post-Harvest Technologies (PH) modules elaborated (same as for GAP’s modules).

lessons learnt

Not yet available.

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14. West Africa Trade and investment hub

Donor usAidTimeline 2014-2019 (including two option years)

Countries

Based in Accra, ghana—with satellite offices in dakar, senegal, and ouagadougou, Burkina faso—the Trade hub works in 12 West African countries including Benin, Burkina faso, cameroon, cabo verde, cote d’ivoire, ghana, guinea, Mali, niger, nigeria, and senegal.



African cashew Alliance, Afrique verte, AgoA Trade Resource centers, Association Afrique Agro export, Borderless Alliance, comité inter-etats de lutte contre la sécheresse au sahel, confédération des fédérations nationales de la filière Bétail/viande des Pays de l’Afrique de l’ouest, economic community of West African states, global shea Alliance, Réseau des organisations Paysannes et de Producteurs de l’Afrique de l’ouest, Réseau des systèmes d’information des Marchés en Afrique de l’ouest, and West African economic and Monetary union.

Website West Africa Trade and Investment Hub

Contact Person

cory o’hara

usAid West Africa Trade Team leader

[email protected] identification The potential of trade to reduce poverty, raise incomes, create jobs and increase food security by supporting value-added exports and regional trade in key agricultural commodities including staple grains and livestock.

objective The objective of the USAID/West Africa’s Trade and Investment Hub (the Trade Hub) is to help the region’s farmers and firms compete, attract investment to the region, and boost their regional and global trade. It aims to strengthen the competitive capacity of West Africa’s farmers and firms in high-potential regional and global value chains, while also addressing transport constraints and barriers along the region’s trade corridors and borders. Furthermore, it also aims to expand access to finance and investment in our target value chains, as well the Trade Hub facilitates relationships between businesses and financial institutions.

It works in close coordination with a network of West African private sector partners and public institutions to reduce poverty, raise incomes, add jobs and increase food security by expanding trade in two directions which include; value-added exports (shea, cashews, mangoes, apparel), and regional trade in key agricultural commodities. The latter includes, rice, millet/ sorghum, maize and livestock such as cattle, sheep, goats. Additional objectives of The West Africa Trade and Investment Hub include being a proud implementing partner of two U.S. presidential initiatives, Trade Africa and Feed the Future.

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Project Approach The project focuses on building regional and global trade linkages through technical assistance and grants, streamlining regional transport and trade policies through collaboration with advocacy groups and industry partners.

The long term approach builds upon five year targets. These include increasing the value of global and regional trade transactions for project-assisted firms by 50 percent, facilitating $102.5 million in new investments in targeted sectors, and expanding access to finance and investment, both directly and through a regional network of Financial Advisors.

Results to dateThe project has led to the initiation of the West Africa Trade hub.

Other partnerships have been forged as a result of this Project, such as the:

• African Cashew Alliance

• Global Shea Alliance

It is expected that within the next two years the African Cashew Alliance will create more than 3,200 new jobs (at least 50% of which are for women) and 10 million USD in additional income for rural communities.

In 2014, more than 30,000 shea collectors were trained in best practices for collection, processing, and storing shea kernels on the Global Shea Alliance partnership.

Furthermore, there are annual quality trainings held to reinforce best practices on collection, processing, and storage of shea and also quality standards have been developed and maintained for shea kernels, which is being implanted via national and regional standard setting bodies.

Almost 20 million rural households have at least one member who directly receives goods or services provided by Feed the Future, as at 2014.

In the midst of the Ebola crisis in Liberia, Sierra Leone and Guinea, many farmers who had benefited from Feed the Future support were able to sell over 340 metric tons of rice to the U.N. World Food Program for emergency distribution — helping their neighbours and supporting faster access than imported food aid alone would have provided, while pooling incomes to help sustain their own livelihoods in a time of uncertainty.

lessons learnt Not yet available.

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15. east Africa Trade and investment hub

Donor usAidTimeline 2014-2019

Countrieseast African community countries - Burundi, Kenya, Rwanda, Tanzania and uganda, as well as AgoA-related support in ethiopia, Madagascar, Mauritius and the seychelles.

Budget usd 65 millionImplementing Partner development Alternatives inc. (dAi)

Website East Africa Trade and Investment Hub

Contact Person

lisa Walker

deputy chief for Trade, Regional economic integration

usAid/Kenya and east Africa

[email protected] Problem identification The potential of trade to reduce poverty, raise incomes, create jobs and increase food security by supporting value-added exports and regional trade in key agricultural commodities including staple grains and livestock.

objective The East Africa Trade and Investment Hub objective is to boost trade and investment with and within Africa. The Hub partners with East African and US businesses to attract investment needed to transform the East African Private sector into vibrant global trading partners. Improving the region’s trade competitiveness, encouraging the diversification of exports beyond natural resources and promoting broader, more inclusive economic growth will lead to more food secure and resilient East African communities.

Additional objectives of the East Africa Trade and Investment Hub include being a proud implementing partner of two U.S. presidential initiatives, Trade Africa and Feed the Future.

Project Approach The goal of the Hub is to deepen regional integration, increase competitiveness of regional agriculture value chains, promote two-way trade with the US under the African Growth and Opportunity Act (AGOA) and facilitate investment and technology to drive trade growth intra-regionally and to global markets.

The project achieves these ends by working with the private sector and local governments to find practice solutions for trade and investment constraints that lead to a pro-investment environment. It also builds awareness of opportunities for African and US firms to increase trade, expand business partnerships and invest in East Africa.

In support of the US government’s global hunger and food security initiative, Feed the Future, the hub looks to increase access, availability and utilisation of East African grown staple foods in the region. It supports regional initiatives that improve market information, increase access to inputs, and reduce non-tariff barriers that can hinder trade across borders.

The Hub utilises the capabilities and networks of multiple US government agencies, regional trade associations and development partners to extend the adoption of regional initiatives.

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Results to dateAs of June 30, 2015, Hub-supported companies report $41 million worth of exports under AGOA. The textile and apparel sector recorded the highest value with a total of 25 companies exporting $34 million worth of product. Two Ethiopian footwear companies reported exports worth $6 million. Cut flowers and home décor contribute nearly $1 million. The Hub expects to be able to report another $10 millions of supported exports before the end of fiscal year 2015. The United States International Trade Commission (USITC) data portal also shows increased trade between EAC countries and the U.S. through AGOA. Overall exports from January-April 2015 show a 6% increase compared to the same period last year, rising to $ 242,265,000 from $ 229,132,000. By project completion, September 2019, the Hub expects to have supported the increase in total value of AGOA exports by 40%. Key interventions so far, include: the development and updating of AGOA strategies; building awareness of AGOA benefits through seminars, stakeholder meetings, social media, the Hub’s web interactive web portal, including “Ask an AGOA Expert”; and trade promotion activities, such as trade shows and buyers missions.

The Hub’s investment component is working towards finalizing a deal that would increase private sector investment in the dairy sector by $7 million. This would contribute significantly to increased EAC intraregional trade and create hundreds of new full-time and part-time jobs in the sector. The Hub aims to facilitate $15 millions of private sector investment in its targeted sectors by September 30, 2015. The Hub is supporting the implementation of three key regional policies in the agricultural sector: 1. the Food and Nutrition Security Policy; 2. the Regional Food Balance Sheet; and 3. the Sanitary and Phytosanitary (SPS) Policy. The implementation of these policies should increase intraregional trade in staple foods between the EAC countries and contribute to increased economic growth and regional integration. The project aims to increase the value and volume of intraregional trade in staple foods by 40%, by August 2019. In quarter 3, the Hub promoted trade and investment within the EAC region, and globally, through three key trade and investment missions: 1. the International Floriculture Expo, held June 9-11 in Chicago, USA; 2. a private equity conferences in Nairobi, June 9; and 3. a private equity conference in Kampala, June 24. These events helped the Hub establish strong investment and buyer/seller linkages that are expected to facilitate more trade and enhance new investments in the region. The Hub established a total of 35 investment linkages during the private equity conferences.

To enable industry players to take full advantage of the benefits under AGOA the Hub organized a two-day training, May 7-8, in Madagascar. The training helped representatives from textile and apparel companies and Malagasy customs officials increase their knowledge on AGOA customs procedures and the use of the textile visa. A total of 28 participants (15 Female and 13 Male) participated in this training. This translates to 293.75 person hours of training completed in trade and investment enabling environment supported by USG assistance. The training covered topics such as benefits under AGOA and GSP; eligibility criteria for textiles and non-textile products; rules of origin and the textiles certificate of origin; rules and procedures for exporting non-textile products under AGOA; customs entry requirements for textiles and non-textiles; transportation of merchandise in bonds, legal format of the textile visa stamp; and best practices for the administration of the textile visa. More details can be found here.

lessons learnt Not yet available.

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16. southern Africa Trade hub

Donor usAid

Timeline 2010-2016

Countries Botswana, lesotho, Malawi, Mozambique, namibia, south Africa, swaziland, Zambia



AecoM with development Alternatives inc. (dAi), nathan Associates and the corporate council on Africa (ccA)

Website Southern Africa Trade Hub

Contact Person

greg Maassen

chief of Party

[email protected]


The potential of trade to reduce poverty, raise incomes, create jobs and increase food security by supporting value-added exports and regional trade in key agricultural commodities including staple grains and livestock.

objective

The goal of the Southern Africa Trade Hub is to increase international competitiveness, intra-regional trade, and food security in Southern Africa.

The 15-country Southern African Development Community (SADC) region—including government, private sector, and civil society—is realizing the advantages of greater regional and global trade linkages and export-oriented business development.

Led by prime contractor AECOM, the Southern Africa Trade Hub (SATH) project is advancing this regional integration agenda and increasing the trade capacity of regional value chains in selected sectors. Particular attention is being given to moving primary products, such as staple foods, more easily from surplus to deficit areas, thereby alleviating food insecurity. Identifying specific constraints along value chains enables interested parties to focus on their removal. Further, while each element of the value chain operates within a particular country, costs often relate to cross-border policies and regulations. DAI is helping to implement a regional approach that will build a broader coalition for reforms, exert peer pressure for implementation, and raise awareness of best practices.

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Project Approach

As a regional program the Trade Hub works to:

· Reduce the time and cost of transporting goods across borders by deploying modern trade facilitation tools such as trade information portals and national single windows in selected countries.

· Strengthen the competitiveness of the grain, soy and groundnut value chains by reducing post-harvest losses, introducing better seeds and technologies, strengthening regional agricultural institutions and supporting trade and investment links.

· Increase capacity for regulating and enhancing the clean energy sector to increase investments.

· Improve the regional trade, investment and integration enabling environment through regulatory reform and the promotion of harmonized standards. The Trade Hub supports the USAID Feed the Future program and the African Competitiveness and Trade Expansion (ACTE) initiative.

Results to date

Results from the Trade Hub include:

· The development of Trade Repositories through a partnership with Namibia’s Ministry of Finance and Namibia’s Customs and Excise, to increase and facilitate cross-border trade through the: “Namibia Trade Information Portal.”

· Funded a multi-stakeholder workshop for the government of Lesotho through the Ministry of Trade and Industry on the formulation of a National Trade Policy to make stakeholders aware of the country’s need for a comprehensive national trade policy document.

· Facilitated the adoption and implementation of a National Single Window as a trade modernization program in Malawi, Namibia, and Botswana.

· Implemented customs modernization programs including the Botswana legal review of the customs act in which the Trade Hub provided legal review advisors to work line by line through proposed legislation with business analysts and legal advisors from BURS to ensure it meets international and regional requirements and standards (Kyoto Protocol, WCO, SACU and SADC).

· Coordinated border management monitoring assessment in Malawi -The Trade Hub’s Monitoring and Evaluation activities, a border assessment activity was carried out at the Mwanza and Songwe border crossings to determine the capacity and sustainability of border agencies to benefit from Trade Facilitation technical assistance in developing a Coordinated Border Management (CBM) program.

· Conducted training on the WTO TFA for the Lesotho National Trade Facilitation Committee at the request of the Lesotho Ministry of Trade and Industry to teach an understanding of the Trade Facilitation Agreement articles and the obligations of WTO Member countries.

· Supported the Southern African Development Community’s Directorate of Trade, Industry, Finance, and Investment in hosting a three-day Consultative Workshop on the CTFP in Johannesburg, South Africa.

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lessons learnt

Most Trade Hub initiatives involve policy, regulatory, organizational and systemic change, extensive consultation and stakeholder relationship management, change management, and capacity building. These are complex issues that require skillful, patient handling as well as significant time and effort. Most of the initiatives in all the indicative result areas encompass several public and private sector agencies and stakeholders. Progress depends mainly on the ownership, commitment, capacity and actions of the partners and agencies that the Trade Hub is supporting, since they must make the decisions, manage the processes and commit their own resources to achieve desired outcomes. During the course of implementation, Trade Hub staff have become aware of the factors that make the difference between success and slow progress or failure. As a result:

· The Trade Hub must base work plans and interventions on reliable assumptions that reflect the needs and will of partners and align with their planning, budgeting and operating cycles;

· For all planned technical assistance, there must be counterparts in the partner organizations to work with the experts and to take ownership of the solutions;

· All statements of work to deliver technical assistance should be cleared and signed off by the recipient organization or unit and reflect an agreed action plan, with roles, responsibilities, and deliverables clearly laid out on a timeline;

· Where feasible, the Trade Hub should appoint country-based representatives to provide close ground support and follow-up, and to better maintain close stakeholder relations;

· The team must understand the business culture and decision-making processes in all countries;

· The team should identify key stakeholders and influential players and cultivate a close working relationship with these individuals as the internal champions to drive processes and decisions; and,

· Where the Trade Hub is introducing new concepts and tools that require high-level decisions with policy, regulatory, innovative partnership, and financial arrangements, the team must be adept at:

· Providing complete and balanced information to enable them to fully understand the choices and make informed decisions; and,

· Understanding capacity constraints and providing solutions to address these to underpin implementation and sustainability.


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17. east African Agricultural Productivity Project (eAAPP)

Donor World Bank (international development Association (idA))

Timeline June 2009 – december 2015 (5.5 years)

Countries ethiopia, Kenya, Tanzania, uganda – Project based in Nairobi.



Kenya Agricultural Research institute (KARi); uganda’s national Agricultural Research organisation (nARo); Tanzania’s Ministry of Agriculture; ethiopia institute for Agricultural Research (eiAR); and the Association for Agricultural Research in eastern and central Africa (AsARecA)

Website AFCC2/RI-East Africa Agricultural Productivity Program

Contact Persondavid J. nielson, lead Agriculture services specialist, World Bank

[email protected]

Rational

The rational for the IDA’s involvement stems from the following three considerations. First, producing high quality seeds is the basic first step to promote agricultural supply response: it is the foundation over which the superstructure of other yield enhancing programs rests. Second, a seed component would be a natural complement to IDA’s support for the establishment of Regional Centres of Excellence and of the agricultural sector. Third, the Governments of the four targeted program countries have demonstrated a willingness to allocate a portion of their IDA Credit allocation to address the food crisis.

objective

To strengthen Regional Centres of Excellence (RCOEs) in agricultural research in Ethiopia, Kenya, Tanzania and Uganda; and to support these centres in the production of selected varieties of improved seeds to improve access of poor farmers to more productive varieties. Achievement of these objectives will contribute toward increasing the productivity and competitiveness of the agricultural sector in East Africa, raising farm incomes and reducing poverty, and improving food security in both the short and longer term.

More specifically the development objectives of the East Africa Agricultural Productivity Program Project for Africa are to (i) enhance regional specialization in agricultural research; (ii) enhance collaboration in agriculture training and technology dissemination; and (iii) facilitate increased transfer of agricultural technology, information, and knowledge across national boundaries.

EAAPP focuses on four main commodities – Cassava (Uganda), Dairy (Kenya), Rice (Tanzania), and Wheat (Ethiopia).

Project Approach

Identifies and addresses major market and public sector gaps and failures that hinder staple food trade and limit farmers’ capacity to produce and market more staple foods; 1) Stimulate and catalyse innovative business models that deliver commercial benefits and solutions to market failures; 2) Incentivise innovative strategies ready to scale up; 3) Promote impact-oriented focus on farmers/farming households to deliver jobs, income and market access for the poor and smallholder farmers; and 4) Target systemic change in cross border food trade through dialogue and actions around key barriers in regional staple food markets.

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Results to date

The regional program, in general, has registered credible results in the areas of applied research on the four EAAPP commodities (wheat, rice, cassava and dairy), increase in and dissemination of improved technologies, investments in training and capacity building, facilitating and participating in regional activities, coordination among and between implementing institutions, efficiency in the research-extension-farmer-linkages, and in commercializing agriculture along the value chains. The program has achieved exemplary results in the scaling up efforts of improved agricultural technologies to smallholder households, supporting the livelihood security initiatives of the program countries.

EAAPP has been successful in: implementation of 33 regionally prioritized agricultural research projects; the development of 472 new technologies, innovations and management practices (TIMPs) by RCoEs; dissemination of 76 existing and new TIMPs to more than one EAAPP country; development and use of 69 technology uptake pathways to convey relevant information and knowledge product; some 43 cultivars of rice, pasture and wheat were either registered, or ready for registration in program countries; sale of 203,241 tons of commercial seeds of pasture, rice and wheat were sold by seed companies, farmers and farmer organizations; formation and strengthening of 270 agribusiness units; and training and capacity building investment were made for a total of 735,541 persons by research centres, extension service providers and seed multiplication companies.

The latest Implementation Status Results Report by the WB (Feb 2016) available here.

lessons learnt

A similar project, West Africa Agricultural Productivity Project (WAAPP) was developed for West and Central Africa (the ECOWAS) region and is now under implementation. Lessons from WAAPP preparation include: (i) the need for stakeholder consultation and priority setting for the design of regional projects with several institutions and countries involved; (ii) early development of implementation mechanisms and identification of the possible synergies or problems that could arise in the interface between national and regional arrangements; and (iii) grounding of the project in a strong M&E and results framework.

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4.2 Studies

18. strategic orientation document for Mango value chain in the economic community of West African states (ecoWAs)

Donorinternational Trade centre (iTc) and the canadian

international development Agency (cidA) (now global Affairs canada)

Timeline 2011-2020

Countries ecoWAs countries

Budget nA

Implementing Partner ecoWAs, ecoWAs Ten and the iTc

Website Strategic Orientation Document for Mango Value Chain in the Economic Community of West African States (ECOWAS).

Contact Personserge Bombo, chairman, eXPecT initiative (ecoWAs)

[email protected]


ECOWAS is the 7th largest producer of mangoes globally, representing 3.8 per cent of the world production (1.3 million tons per annum). Post-harvest losses are between 40 and 50 per cent. A large share is sold on the local and regional market, and only about 35,000 tons of fresh mangoes are exported (2.7 per cent of world total export).

objective

The strategy aims at supporting ECOWAS in increasing its exports of targeted products and improving competiveness of enterprises through value chain development. The ultimate aim of the project is the improvement of export earnings of economic operators including small-scale farmers, and small and medium-sized (SMEs) enterprises engaged in mango processing in ECOWAS countries. The strategy is a result of a stakeholder mapping and participatory consultations.

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Project Approach

The strategy identifies and details weaknesses (such as lack of know-how, low volumes, poor quality, inadequate logistics, high production costs, and lack of organization) as well as strengths and opportunities (such as taste, good quality of specific varieties, diversity in mango varieties, growing market for good quality mango) in the mango value chain.

Results to date

The main objective of the strategy is to “increase the utilization rate of available mango by 90% and create value added for mangoes of different qualities”, with anticipated impact on the value added of mango production as well as marketed mango, contributing to poverty reduction. The strategy is based on five goals validated by stakeholders:

1. Increase mango production;

2. Reduce post-harvest losses;

3. Increase the volume of the first quality mango exported;

4. Increase the volume of second quality mango sold on the local market; and

5. Increase the volume of the industrial category used for processing.

The strategy also recognizes access to finance, integration of regional transportation, and the establishment of public private platforms of value chain stakeholders as cross-cutting issues for the value chain, and applies a gender-sensitive approach for implementation.

lessons learnt

The coordination of strategy implementation will be carried out in the context of a public private partnership led by the ECOWAS Trade and Enterprises Network (TEN).

The strategy works as a framework for an integrated, long-term approach in developing the mango value chain across ECOWAS countries. As different stakeholders and organizations engage in contributing to the development of the mango value chain, they can reach greater results by aligning their actions with the aims of the strategy. An example of this is UNDP AFIM’s catalytic funding for creating a Mango Quality Manual.


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19. Regional integration: Agricultural value chains to integrate and Transform Agriculture in West Africa

Donor unecA

Timeline study published in february 2012

Countries ecoWAs/WAeMu countries

Partner ecoWAs

Website Regional Integration: Agricultural Value Chains to Integrate and Transform Agriculture in West Africa

Contact Person

Joseph foumbi, economist, chief of the Regional initiatives section at ecA sub-Regional office for West Africa (ecA/sRo-WA)

[email protected]


In spite of West Africa’s enormous potential in agricultural resources, the take-off for the agricultural sector remains with little support.

objective

The main objective of the study is to explore solutions for accelerating the achievement of the objectives of NEPAD, CAADP and ECOWAP, in order to generate high growth based on agriculture for a more rapid emergence of the African continent in general and of West Africa in particular.

Project Approach

In effect, West Africa countries developed in the past numerous strategies and created many support structures for agricultural development, but the expected results have still not been reached. As witness, the growing food crisis which has persisted in all these countries for years and which obliges them to import agricultural products to make up for food production deficits. It is to try to explore other possibilities for accelerating the development of agriculture that this study was carried out. It constitutes a contribution to the reflection on the strategies and policies to adopt in support of development efforts of the agricultural sector in the sub-region. The study aims at raising the awareness of decision-makers in West African countries on the importance of adopting a strategy for the development of agriculture based on the “value chain” approach, by putting at their disposal successful experiences with agricultural value chains in Africa and elsewhere that they can adopt in their agricultural development strategies.

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Results to date

The study discussed five value chains. The first four were different variations of value chains governed by the producer(s), for example with producers organized into cooperatives and/or peasant organizations.

The study brings forth recommendations for States as well as ECOWAS/WAEMU. For states, recommendations concern integration of value chain approaches in agricultural development strategies, setting up an organ to promote agricultural value chains, setting up an incentive framework to support investment and resource mobilization to promote the creation of agri-business companies, and exploiting the agricultural co-entrepreneurship as a type of public private partnership to promote participation of investors in agro-industrial units. In relation to ECOWAS/WAEMU, recommendations highlight the need for adopting a resolution recommending to all member countries to integrate value chain approaches in development strategies, creating an organ for the promotion of agricultural value chains and facilitating access for small producers to regional and international markets, harmonizing the standards of transformation in the community space, improving the effectiveness of funds designed for the financing of agricultural value chains and of agri-business, strengthening the regional funds for the implementation of agricultural regional policies, designing support programmes for the development of value chains in agriculture while respecting the principle of subsidiarity.

lessons learnt

The study focuses on the ECOWAS and member state perspective in facilitating the development of value chains. It is a useful tool for highlighting the potential provided by value chain approaches for agricultural development in different sectors. However, the study does not provide detailed lessons learned for use in value chains development for specific commodities or products.


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20. strategic Agricultural commodities Regional value chains and clusters development in support of the implementation of cAAdP strategy and the united nations development Account

donor unecA

Timeline study undertaken in 2015, ready to be published by december 2016

countriesMali, senegal, Benin, cote d’ivoire, ethiopia, sudan, egypt, cameroon, congo dRc, Kenya, Tanzania, uganda, Zambia, namibia, Angola

Partner ecoWAs, coMesA, sAdc, eAc, Au, fAo, unido

contact Person

Mahamadou nassirou Ba

Agricultural economist, economic Affairs officer, food security Agricultural and land section / Regional integration and Trade division, unecA

[email protected]


The different agro value chains projects scattered in several regions in Africa should be integrated to form “Regional Value Chains” : the United Nations Economic Commission for Africa (ECA), in collaboration with the African Union Commission (AUC), its member states, its institutions, development partners, is undertaking a continent wide study in support of development and promotion of strategic agricultural commodities regional value chains and clusters in Africa as part of the CAADP implementation strategy and the proposed commodity based strategy to increase productivity and value addition while creating jobs, managing scarce national resources and building resilience towards Africa’s industrialization.

objective

The main objective of the study is to identify priority strategic Agro-regional value chains and relevant agribusiness and agro industrial clustering possibilities to boost intra African investment and trade in intermediate in agriculture as well as high valued agro food products. It further aims at identifying and assessing specific transformative policy interventions, which hold out the greatest potential for promoting competitive agro regional value chains, agribusiness and agro-industrial clusters within specific regions to include, trade and transport corridors within the Africa regions.

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Project Approach

In effect, West Africa countries developed in the past numerous strategies and created many support structures for agricultural development, but the expected results have still not been reached. As witness, the growing food crisis which has persisted in all these countries for years and which obliges them to import agricultural products to make up for food production deficits. It is to try to explore other possibilities for accelerating the development of agriculture that this study was carried out. It constitutes a contribution to the reflection on the strategies and policies to adopt in support of development efforts of the agricultural sector in the sub-region. The study aims at raising the awareness of decision-makers in West African countries on the importance of adopting a strategy for the development of agriculture based on the “value chain” approach, by putting at their disposal successful experiences with agricultural value chains in Africa and elsewhere that they can adopt in their agricultural development strategies.

The study will start with identification of constraints to and opportunities for priority value chain and cluster development that will inform future interventions that afford the most attractive trade and investment opportunities for regional market development. Its outcomes will include recommendations to put in place clearly supportive-regional value chain and cluster policy frameworks with a view to promoting commodity based industrialization using cereals (rice, maize, wheat, etc.), roots and tubers (cassava, yams, etc.), dried vegetables (dried beans), vegetables (tomato, etc.), fruits (banana, etc.), sugar, oilseeds (palm/groundnut, etc.), coffee, cocoa, tea, meat, milk, eggs, fish, forestry products as entry points. It will also identify the skills, knowledge and technology and innovation gaps to fill at most relevant levels or nodes in order to meet the regional value chains targets based upon agro ecological (climatic bands) and geopolitical (sub regions) considerations in line with the new CAADP results framework.

Results to date

The study is being finalized on a cluster basis as covering the following five clusters taking due account of established revealed geopolitical and geo-climatic comparative advantage. To this end, five parallel cluster scooping/baseline assessments of strategic agricultural commodities value chains is on-going and being finalized to a continental study (countries in Bold are sample countries in the respective clusters):• Cluster 1: Algeria, Mali, Senegal, Niger, Benin, Burkina, Faso-Côte d’Ivoire, Ghana, Togo, Nigeria

where by the priority top 3 regional supply/value chain (for example rice, maize, fish, livestock, cassava, sugar, palm/groundnut oil) are assessed against the Thailand or Vietnam Rice Export Chain to cluster 1 and the corresponding competing lead foreign supply/chain to cluster 3;

• Cluster 2: Ethiopia, Sudan, Egypt whereby the priority top 3 regional supply/value chain (for example wheat, rice, maize, fish, livestock, tomato, onion, cassava, sugar, palm/groundnut oil) are assessed against the corresponding competing lead wheat Export Chain to cluster 2 as well as the corresponding competing lead foreign supply/chain to cluster 3;

• Cluster 3: Chad, Cameroon, Gabon, Congo-DRC, Congo whereby the priority top 2 regional supply/value chain (for example cassava, rice, maize, fish, livestock, cassava, sugar, palm/groundnut oil) are assessed against the corresponding competing lead foreign supply/chain to cluster 3;

• Cluster 4: Kenya, Tanzania, Uganda, Rwanda, Burundi, DRC whereby the priority trop 3 regional supply/value chain (for example maize, rice, livestock, fish, cassava, sugar, palm oil/groundnut oil are assessed against the supply/chains of the corresponding competing lead foreign supply/value chains to cluster 4;

• Cluster 5: Zambia, Zimbabwe, Botswana, Namibia, Angola, DRC whereby the priority top 3 regional supply/value chains (for example maize, rice, livestock, fish, cassava, sugar, palm oil/groundnut oil) are assessed against the corresponding competing lead foreign supply/value chain to cluster 5.

lessons learnt

Not yet available.


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21. A Regional strategy for the staple foods value chain in eastern Africa

donor usAid

Timeline Toolkit published on september 30, 2010

Time period covered: 2010-2015

countries eastern Africa

implementing Partner The eastern Africa grain council (eAgc)

Website A Regional Strategy for the Staple Foods Value Chain in Eastern Africa

contact PersonusAid/east Africa Regional

[email protected]


The issues addressed by the Regional Staple Foods Competitiveness Strategy came from an exten-sive analysis of the sector’s key constraints and a dialogue with key regional stakeholders in 2010. Furthermore, key bottlenecks in driving progress against key priorities have formed the basis on which interventions and initiatives have been created.

objective

USAID COMPETE developed a five-year regional strategy for the staple foods value chain in Eastern Africa in collaboration with its regional trade association partner, the Eastern Africa Grain Council (EAGC) in 2010.

In contrast to earlier value chain strategies, which have usually been national, this strategy is regional and employs an approach that differentiates between issues that are national in nature and those that are best addressed from a regional perspective.

USAID COMPETE also adapted the strategy process to account for the added complexities that arise when more than one country is involved in the process.

USAID COMPETE engaged value-chain stakeholders at the national level to discuss and prioritize national level issues/constraints, the results of which were aggregated into a regional prioritization of issues that informed the development of detailed implementation plans and timelines.

Project Approach

The strategy is already being used as a tool to shape the regional staple foods agenda. Following the validation of the regional strategy and implementation plan by a group of stakeholders at a meeting held in Entebbe on November 8, 2010, USAID COMPETE has held multiple meetings with donors and other implementing partners that are all eager to align their strategies and design their programs to fit within the regional strategy. The EAGC has developed its work plan to lead and drive forward key initiatives from the strategy. The Common Market for Eastern and Southern Africa’s (COMESA) Alliance for Commodity Trade in Eastern Southern Africa (ACTESA), which is leading the regional ef-fort to promote agricultural trade and will be instrumental in the integration of regional agricultural value chains, has indicated that it would like to adopt the regional strategy as its own institutional strategy and assume ownership of the strategy.

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Results to date

To date the study focused on the following crops: Cereals (maize, wheat, rice, sorghum and millet), Legumes (beans, pigeon peas. Cow peas and chicken peas), and root crops (cassava, groundnuts). For each of these crops a value chain study was undertaken in each country and then the issues of regional trade in relation to the business enabling environment were analysed.

In addition, USAID COMPETE identified three strategic areas which focused on the following sub-topics:

1) Structured trade: Warehouse receipts system; regional commodities exchange; regional mar-keting infrastructure; collateral management services; and contracts enforcement and dispute resolution.

2) Market information: leveraging existing national systems and developing integrated regional MIS platform; Data integrity and quality; data dissemination; and driven use of market information.

3) Policy and standards: Intra-regional SF tariffs; marketing and price controls / export and import restrictions; regional food balance sheet; staple foods quality standards; sanitary and phytosan-itary standards; non-tariff charges; and regional food security and nutrition policy.

lessons learnt

The staple foods value chain strategy provides a comprehensive analysis of issues relating to value chain development with a differentiation between matters which need to be addressed on national and on regional level. The strategy is very extensive and covers a large spectrum of activities, requir-ing significant coordination efforts. Integration of national actors in considering the strategy sup-ports buy-in at national level. However, on regional level, strategy implementation has required the participation of multiple implementing partners and support from RECs. This makes follow-up and evaluation particularly challenging.


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5 The engAgeMenT of The PRivATe secToR

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The Private Sector serves as the engine for growth in the Agriculture development drive of the continent. Partnering with development partners, national governments and same-minded players in the agro-value chain, the private sector harnesses the opportunities in the agriculture sector and optimizes its utility through efficient and effective systems and processes. Many of the recent successes of the agro-food value chain across Africa have been spearheaded by the private sector and its active involvement in areas like impact investment, market linkages, private sector development, advocacy, farmer-based organization support and others.

For example, Unilever, Acumen36 and the Clinton Giustra Enterprise Partnership, an initiative of the Clinton Foundation, have launched a landmark Clinton Global Initiative (CGI) Commitment to Action called the Enhanced Livelihoods Investment Initiative (ELII) to improve the livelihoods of as many as 300,000 smallholder farmers and their communities in Africa, South Asia, Latin America, and the Caribbean. The ELII will be a three-year, minimum USD $10 million investment initiative to catalyse economic growth and alleviate poverty amongst low-income communities in the developing world, while creating more inclusive and sustainable value chains. One of the primary goals of the partnership, which leverages Acumen’s and the Clinton Giustra Enterprise Partnership’s market-based approaches to poverty alleviation, will be to create and scale-up privately-held enterprises which will support smallholder farmers and link them to Unilever’s global supply chains and distribution networks. Some of the success stories of the initiative include getting improved cooking stove for tea farmers in Kenya and securing an integrated oil palm miller with Smallholder 36http://acumen.org/

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programmes in Ghana. Acumen is a non-profit global venture fund that uses entrepreneurial approaches to solve the problems of poverty. Its aim is to help build financially sustainable organizations that deliver affordable goods and services that improve the lives of the poor.

Similarly, the African Agribusiness Incubator Network (AAIN)37 of the Forum for Agricultural Research in Africa (FARA) has invested over USD 12 million of DANIDA38 (the Ministry of Foreign Affairs of Denmark) funding to initiate a functional business network that aggregates, convenes and coordinates agribusiness incubators and other Private Sector agribusinesses in Africa. The aim of AAIN is to create jobs and wealth through incubation. With the DANIDA funding, AAIN has established six incubators and coordinates 24 other incubators to support the start, growth, accelerate and develop businesses along selected regional commodity value chains. Overall, at least 10,000 direct and indirect jobs have been created in 5 countries through incubation/inclusive business models, with 23,926 farmers engaged in the agribusiness incubation across Africa.

As illustrated earlier in chapter 4, the Africa Enterprise Challenge Fund (AECF)39 of the African Green Revolution for Africa (AGRA)40

has created a USD 244 million challenge fund capitalized by multilateral and bilateral donors targeted to stimulate entrepreneurship in Africa. The idea is to promote innovative ideas and find profitable ways of improving access to markets particularly how markets function for the poor in rural areas. Its purpose is to improve incomes of smallholder farmers and the rural poor. Between 2008 and 2014, the AECF’s inception has approved funding for 37http://www.africaain.org/38http://um.dk/en/danida-en/39http://www.aecfafrica.org/40http://agra.org/

202 projects spread across 23 countries in sub-Saharan Africa. In 2014, AECF funded projects have directly benefited nearly 7 million rural people. Overall there has been an excellent response from the private sector and a high degree of competition for funds.

The Borderless Alliance,41 a multilateral partnership of private and public sector stakeholders which aims to increase trade in West Africa, and eliminate barriers to trade have focused on bringing together stakeholders across the transport chain to address common issues affecting transport, through advocacy, data dissemination and multilateral discussions. Officially launched in May 2012 with support from the USAID West Africa Trade Hub and its partners, Borderless Alliance provides an independent, sub-regional platform for leading producers, traders, transporters and financiers to propose and advocate for systemic and practical improvements to the movement of goods, transport, capital and services across West Africa. Guided by international best practices, sound research and their Code of Ethics, Borderless Alliance members work together to promote change through dialogue and action. The initiative brings to light trade inefficiencies in the region, through the work if its partners and highlights obstacles to producers, traders, buyers and investors. The findings are disseminated and used to pressure decision makers to change policy to help develop their economies. They currently operate across nine West African countries (Benin, Burkina Faso, Cote d’Ivoire, Ghana, Mali, Niger, Nigeria, Senegal and Togo) and collaborate with regional authorities, local governments, uniformed authorities, private operators, associations, donors, institutional partners and many other groups in the region.

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Finally, the East Africa Farmers Federation (EAFF) is a regional farmer organization that represents approximately 20 million farmers in eastern and central Africa. It was formed in 2001 and has its Chapter registered in member counties. EAFF’s establishment was championed by the national farmer’s organizations from Kenya, Tanzania, Uganda, Rwanda and DR Congo to respond to the need for organized agriculture representation at regional level. Its role has been to voice legitimate concerns and interests of farmers of the region with the aim of enhancing regional cohesiveness and social-economic status of the farmers. EAFF embarked on developing a Trade & Agribusiness strategy as a new item to strengthen EAFF and members’ capacity to

focus on trade in the region by giving strategic direction on opportunities and challenges related to regional trade in agriculture commodities. The Trade and Agribusiness Strategy is an element of the new EAFF Strategic Plan (SP) 2012 – 2016. It proposes various policy and programme interventions that will facilitate the integration of small-scale producers into value chains as active players.

These examples highlight the rising role of the private sector and yet shed some light on the diverse and fragmented nature of its participation across the continent. To create a deeper impact on the agro-food value chain will require more collaboration among the private enterprises and creative mobilization of resources to scale up successful initiatives.

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6 KeY lessons And RecoMMendATions

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A regional approach to the agro-food value chains remains the best strategy for the agricultural transformation of Africa. Evidence from the UNDP AFIM regional value chain projects and other regional value chain projects initiated by other development partners and the private sector gives credence to this assertion. The six regional agro-food value chains supported by UNDP show that a regional approach to agro-food development facilitates technology transfer, skills development, economies of scale, business model replication, and business-to-business alliances. The projects demonstrate key measurable impact on smallholder, intra-African trade and productivity enhancement. The critical need for innovative financial products that will enable farmers and other stakeholders to participate fully in agribusiness development was clearly demonstrated in all the value chains.

support from governments and development Partners is critical to secure the engagement of the Private sector

Lessons from development partner funded projects show that the quantum of funds leveraged from the private sector under regional approach is far greater than aggregation of leveraged fund from the country-level. The regional approach provides more incentives to the private sector, facilitates and smoothens cross-border and intra-Africa trade more than efforts by individual actors operating at local level. It stimulates agro-processing, value addition and facilitates linkages among value chain operators across and within the region. More investments are required to scale up the current trend of impact investments, private sector matching funds and challenge funds. It is recommended that Governments, RECs and development partners invest in areas that

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will incentivise the private sector to invest in value addition and agro-processing within agricultural value chains. The same bodies are encouraged to promote investments that focus on value addition including nutrition to move Africa from being food-producing continent to agro-industrialized continent.

Alignment of national and Regional Agricultural Policies with continental and international ones is imperative

Another key challenge identified is the incoherence of agricultural policies on the national, regional and continental levels. This problem stifles the scaling up and sustenance of the regional value chain since implementation of agricultural development strategies on the national levels are not aligned with those on the regional and continental level. This has sometimes resulted in protectionism on the part of some national governments which prevents opportunities to harness the comparative advantage. Regional Economic Communities (RECs) and continental bodies like AUC, and UNECA are encouraged to put considerable emphasis on trade integration. It is recommended that national agricultural policies be harmonized with those of the region.

Prioritization is key. Regional integration strategies need to reconcile the challenge of meeting national priorities while building on sectors of high potential for increasing intra-regional trade and integration. Determining gaps and addressing them through focused institutional development for providing region wide services is of the upmost importance. The programme also entailed support for strengthening the Regional Economic Communities (RECs) level of public-private dialogue.

Regional integration in the food sector

needs private and public service providers to guide businesses and national investments as a means to inform on new opportunities. Regional Economic Communities can play the role of analysing markets, formulate strategies and influence evidence based priorities and investments at the national and regional level.

From the continental through the regional to the national levels, the ideals of competitive advantage should be championed to harness the full potential of individual nations in producing and adding value to key commodities while enriching the regional value chain. This will inevitably dissipate protectionism and rather lead to the scaling up and sustenance of regional value chains. Undoubtedly, the successes of the regional value chain approach to agriculture can be sustained and further deepened if its ideals are aligned to and consciously interlaced to Malabo Declaration. Such an approach will lead to maximizing benefits of regional economies of complementarities, providing competitive advantages beyond national/sub-regional boundaries and exploiting economies of scale at all stages of the value chains. There is also the need for RECs to take a more proactive role in regionalizing value chains and lobbying with member governments to eliminate TBTs/NTBs and other hindrances to trade. It is suggested that UNDP work with the AUC, NPCA, RECs, Governments, UN agencies and other development partners to support the Private Sector especially regional food companies driving regional integration. It was however mooted that first national integrated value chain need to be promoted, then regional value chains across borders will be strengthened on the basis of economies of complementarity, scale and vertical integration.

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Trade Agreements Must Be implemented Across the continent

There is an apparent disregard for trade agreements on the continent by national governments. That is, there is a lack of political good will and support at the national levels to implement regional trade agreements by RECS. Because of this, there is lack of ownership on the part of governments for regional projects and initiatives negating the prospects of establishing competitive regional value chains. Governments’ inability to enforce CETs and remove trade restrictions does not create the enabling environment for regional value chains to bloom. It is recommended that RECs compel governments to obey and enforce trade agreements across the region, by building the capacity of those involved in implementing trade policies, such as custom officials at borders, on the trade agreements and the regional value chain. There is the need for development partners and RECs to collect and disseminate information to governments on costs of trade barriers as opposed to the removal of same to enhance free trade across borders in the region. It is also suggested that ports should be made attractive with reduced bottlenecks and red tapes.

standards Across the Region and continent Must Be harmonized

One of the most prominent barriers to trade along the agro-food value chain is the issue of standardization. Disparities in standards across borders in the region negatively impact trade and obstruct the regional value chain. Standards on quality, weight, sanitary of goods moving across borders have created huge challenges for the regional value chain development. Harmonizing these standards is a sure way to scale up and sustain the regional value chain. There is the need to benchmark and synchronize standards from the national

level to the regional level. Furthermore, there is the need to move the standardization from the regional level through the continental level to the global level. Governments must legislate regional standards in consultation with RECs and the private sector. To advance regional integration issues of cross-border trade, value addition, standards as well as infrastructure gaps need to be addressed by Public-Private Collaboration. The innovative Regional Project Facilitation platforms bringing the RECs together with value chain stakeholders to identify key issues, agree and take collective action for measureable impact should be supported.

ensuring the inclusivity of all Actors engaged in Ago-food value chains is essential

Mobilizing and valuing local expertise and capacity as well as functional and sectorial associations along the value chain are crucial to achieving real integration and sustaining results. True private sector inclusive partnership and dialogue platforms not only bring credibility to the policy dialogue process, but also increase the likelihood of selecting the right priorities and proposing the appropriate solutions while ensuring delivery in the real world.

The apparent exclusion of smallholder farmers in discussions and planning for regional value chains is an impediment for scaling up and sustaining regional value chains. Smallholder farmers are key actors in agro-food value chains, yet they suffer from lack of resources and markets. It is, therefore, recommended to integrate and link them to regional markets, by organizing them in cooperatives, building their capacities and providing them guaranteed markets for their goods. Private sector and NGO should champion this course.

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Adopting an Approach that is gender Responsive and Youth inclusive

It has been observed that in spite of the many interventions, women continue to be among the majority of the disadvantaged in the agricultural sector. African women remain primarily invisible in the work they do and their contribution to effective value chains. Gender issues fundamentally shape the totality of production, distribution, and consumption within the African economies, but that notwithstanding, gender issues have often been overlooked in the value chain. An increasing number of development partners have now begun to recognize and address the need for a more active gender strategy in relation to value chain interventions. Albeit the expanding number of methodologies and approaches for gender responsive value chain analysis providing, fall short of more transformative results due to the scarcity of robust evidence of the gender impact of both generic and gender-focused value chain interventions.

More gender-sensitive value chain analysis, intervention designs and implementation plans are required in order to secure the required gender equality impact. Lack of mobility, lack of access to assets and markets, and lack of linkages to other value chain actors are often major gender-based constraints in relation to value chains. However, such constraints can be addressed by value chain interventions that include specific gender strategies. Specific measures are required to ensure that women’s participation leads to substantive economic and social gains, beyond increasing the mere number of women participants. Facilitating better bargaining power both in relation to other value chain actors but also in relation to intra- household gender dynamics can also help improve gains.

It is important that women as well as men receive technical training to enhance productivity at various stages of the value chains, given the fact that women typically do a substantial proportion of the work on small export farms in Africa.

Moreover, successfully bringing women smallholders into supply chains is likely to be even more important in the longer term, because men are increasingly leaving rural areas in search of alternative employment, leaving the women to take charge of smallholder farms. Supporting marginal women producers offers a new branding and marketing angle for companies that are aiming at premium markets, where a company or products perceive ethical credentials have a significant impact on consumer purchasing decisions. However, experience has also showered that, although women’s contributions to supply chains make a difference, there is a critical need to support from both policy and practice for transformative results.

comprehensive information on Regional value chains should Be easily Available

Very often, information on regional value chains such as markets, finance, technologies and business opportunities are limited. Value chain actors and stakeholders do not have a common platform to share knowledge and lessons. It is recommended that a recognized institution should champion the development of a Regional value chain information system to improve regional trade, promote, share lessons, provide industry information and share opportunities for investment. The development and use of information sharing platform such as the Africa Youth Entrepreneurship portal currently being planned with support from UNDP is important.

Again research is forgotten in regional

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of small producers and rural MSMEs that would normally not be reached.

Both ‘soft’ and ‘hard’ infrastructures should Be supported

While the role of hard infrastructure (roads, bridges, irrigation, energy, etc.) is essential in promoting agriculture competitiveness and connecting markets, the fact remains that there is little support to the soft aspect of infrastructure, such as governance issues, the regulatory framework, law enforcement, corruption monitoring and market linkages, among others. In a continent that hosts the largest number of landlocked countries and least developed economies, it is important to find innovative mechanisms that ensure the mobilization of enough resources to fund initiatives that tackle the bottlenecks which increase the cost of production and reduce

approaches, but as the EAAPP shows this can be catalytic especially using such innovations as regional centres of excellence for REC. For staple food trade such innovations like structured trade mechanisms, supported by a strong regional information system and harmonization of policies and standards can improve regional trade by removing barriers to trade.

Another lesson learnt was that investment in small-scale agribusiness incubator hubs creates more jobs and makes a big impact on youth and women. Similarly, impact investments bring innovation and financing delivery mechanisms into agro-food development. It is recommended that “impact investment initiatives” should be supported and promoted to reach out to smallholders in several African countries. Such innovative financing mechanisms help build the capacity

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the competitiveness of the industry on the continent.

Approaches to Make Agriculture climate smart Must Be Quickly Adopted

The climate is changing and impacts on businesses and communities are already being felt. Even though farmers have dealt with climate risks throughout the history of agriculture, climate change is now significantly increasing the intensity, frequency and variety of those risks. Rising temperatures, changing rainfall patterns, and more severe weather events are being observed. These risks threaten the long-term benefits of agricultural value chain projects, which are often designed to reduce poverty and improve livelihoods of smallholder farmers.

Both private enterprises and state actors have limited knowledge of technologies that are adapted to the changing climate. They also have insufficient knowledge to undertake

suitable measures to minimise climate-related risks. In order to adjust to the effects of climate change, they will need to take a more systematic approach to risk management in their business and planning processes, supported by development actors.

Providing catalytic funding

Limited finance is one of the key bottlenecks that hinders the development of the regional food value chains in Africa. It has been learnt from the UNDP AFIM’s field experience that catalytic funding advanced the engagement and further investment and collaboration of key stakeholders in the African public and private sectors. It strengthened existing value chain projects by undertaking interventions to attract private sector engagement and participation to promote inclusive agribusiness development. It also helped in building the capacity of the regional institutions to strengthen the cross- border agro-food value chains.


Copyright © 2017

United Nations Development Programme

Regional Service Centre for Africa

Addis Ababa, Ethiopia

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form by any means, electronic, mechanical, photocopying or otherwise, without prior permission of UNDP.

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