Department of Agriculture, Environment and Water Resources

Accelerate the implementation of ECOWAP / CAADP

Regional Programme to Support Agricultural Intensification and Pastoral West Africa (PRAIAP / AO)

December 2012

With technical support from:

Supporting rural development stakeholders in Westernand Central Africa

( Hub Rural)

ECOWAS COMMISSION COMMISSION DE LA CEDEAO

COMISSÂO DA CEDEAO

ECOWAS COMMISSION

With technical support from:

With technical support from:

Plateforme d’Appui au Développement Rural et à la Sécurité Alimentaire

en Afrique de l’Ouest et du Centre (The Rural Hub)

Contents

ACRONYMS AND ABBREVIATIONS.........................................................................................4

1. Introduction......................................................................................................................5

2. Background and justification.............................................................................................62.1. Recent performance of the regional agricultural sector.............................................................7

2.2. Agriculture: a sector with low levels of capitalization................................................................8

2.3. Scope and limits of policies and strategies to improve farmers' access to inputs.......................10

2.4. Policies for price support to inputs.........................................................................................11

2.5. Overview of current programs................................................................................................12

2.6. Issues and challenges of agricultural intensification in West Africa...........................................13

3. Program strategy............................................................................................................143.1. Program scope.......................................................................................................................14

3.2. Purpose of the program.........................................................................................................14

3.3. Overall objective....................................................................................................................15

4. Justification for intervention............................................................................................15Axis 1: Facilitating access to inputs................................................................................................15

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Sacré-Coeur III Extension n° 10406, Dakar Sénégal site web : wwww.hubrural.org

Outcome 4.1. Appropriate mechanisms for financing inputs (fertilizer and seeds) are implemented.....................................................................................................................................................16

Activity: 4.1.1. Support Member States to implement risk management instruments..................16

Activity: 4.1.2. Harmonize the key interest rates of central banks and interest rates for commercial banks.......................................................................................................................................16

Activity 4.1.3. Support the establishment of guarantee funds by Member States........................17

Outcome 4.2. Input voucher programs for vulnerable farmers are implemented............................17

Activity 4.2.1. Formulation, adoption of eligibility criteria for the voucher system.......................18

Activity 4.2.2. Establishment of funds and co-financing mechanisms for vouchers.......................18

Activity 4.2.3. Establishment of a capacity building fund for POs and local authorities to manage vouchers...................................................................................................................................19

Outcome 4.3. Network of input dealers (fertilizer, improved seeds, veterinary products, animal feed) is expanded and professionalized..................................................................................................19

Activity 4.3.1. Implementation of legislation..............................................................................20

Activity 4.3.2. Support for the professionalization of agro-dealers..............................................21

Activity 4.3.3. Support to finance investments and working capital.............................................21

Axis 2: Promotion of innovative and sustainable production systems.............................................22

Outcome 4.4. Research capacities on varieties adapted to climate change are reinforced...............22

Activity 4.4.1. Creation / strengthening of specialized regional centers for strategic products......23

Activity 4.4.2. Implementation of competitive funds for interdisciplinary research......................23

Activity 4.4.3. Establishment of funds to support the training and funding of degree programs (PhD and Master's)...................................................................................................................23

Outcome 4.4.4. Integrated village water supply programs are implemented...............................24

Activity 4.4.5. Support for establishment of pastoral wells in transhumance corridors.................25

Activity 4.4.6. Support the establishment of water points / multi-purpose boreholes..................25

Activity 4.4.7. Support for the implementation of rainwater catchment systems for supplemental irrigation..................................................................................................................................26

Outcome 4.5. POs' intensification initiatives are promoted and supported.....................................26

Activity 4.5.1. Support for technological innovation of POs.........................................................26

Activity 4.5.2. Support peer exchanges among farmers, inside and outside the region................27

5. Stakeholders and beneficiaries........................................................................................27

6. Complementary measures...............................................................................................28

7. Risks and assumptions.....................................................................................................297.1. Effects of climate change and variability.................................................................................29

7.2. Mobilization of financial resources.........................................................................................29

7.3. Coordination between the different institutions at different scales..........................................29

7.4. Political stability and security.................................................................................................29

8. Program implementation................................................................................................298.1. Role of RAAF..........................................................................................................................30

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8.2. Role of the Fund.....................................................................................................................30

9. Overall program cost.......................................................................................................31

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ACRONYMS AND ABBREVIATIONS

AfricaRice Rice Center for AfricaAPESS Actions prévues Contre la Réforme statutaire et salarialeASF African Swine FeverCAADP Comprehensive Africa Agricultural Development ProgrammeCARE International NGOCGIAR Consultative Group on International Agricultural ResearchCIF Cost Insurance and FreightCILSS Permanent Inter-State Committee for Drought Control in the SahelCIRAD Centre for Agricultural Research in Developing CountriesCNS Caisse Nationale de SécuritéCOBEMAG Benin Agricultural Equipment CooperativeCORAF West and Central African Council for Agricultural Research and DevelopmentDARD Department of Agriculture and Rural DevelopmentEBID ECOWAS Bank for Investment and DevelopmentECOWADF Regional Fund for Agriculture and FoodECOWAP ECOWAS Agriculture PolicyECOWAS Economic Community of West African StatesFARM Fondation pour la Ruralité dans le MondeICRISAT International Crops Research Institute for the Semi-Arid TropicsIFDC International Fertilizer Development CenterIITA International Institute of Tropical AgricultureLC Limited CompanyMDGs Millennium Development GoalsMDTF Multi-Donor Trust Fund Donors.MFI Microfinance InstitutionNAIP National Agricultural Investment PlansNARS National Agricultural Research SystemNGOs Non-Governmental OrganizationPACCEM Project to Support Marketing of Cereals in MaliPO Peasant OrganizationPRAIAP/AO Regional Programme to Support Agricultural and Pastoral Intensification in West AfricaRAAF Regional Agency for Agriculture and FoodRAIP Regional Agricultural Investment PlanRAIP Regional Agricultural Investment ProgrammeRBM Billital Maroobé NetworkREPAO Network for Fishing Policies in West AfricaROPPA Network of Peasant Organizations and Producers in West AfricaUSAID United States Agency for International DevelopmentVG Village groupWAAP West African Agricultural ProductivityWAAPP West African Agricultural Productivity ProgramWAEMU West African Economic and Monetary UnionWARP West African Regional Programme

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1. Introduction

1. In January 2005, the Economic Community of West African States adopted an agricultural policy, ECOWAP / CAADP after an extended participatory and inclusive process that consulted the range of stakeholders in the region. The policy is both a framework designed to bring about profound transformation in the region’s agricultural sector, as well as an instrument of regional economic integration.

2. Indeed, the overall objective of the regional agricultural policy is to "contribute in a sustainable way to meeting the food needs of the population, to economic and social development, to the reduction of poverty in the Member States, and thus to reduce existing inequalities among territories, zones and nations."

3. The vision is one of “modern and sustainable agriculture based on effective and efficient family farms and the promotion of agro-businesses through the involvement of the private sector. Once productivity and competitiveness on the intra-community and international markets are achieved, the policy should be able to guarantee food security and secure decent incomes for agricultural workers."

4. The policy goes beyond the implementation of an innovative framework; ECOWAP is operationalized through two initiatives: National Agricultural Investment Plans (NAIP) and the Regional Agricultural Investment Programme (RAIP). The NAIP reflect national stakeholders’ priorities and focus on productive investments that integrate agriculture, livestock, fisheries and forestry. The NAIPs are quantitative estimates of investment volumes needed to garner at least a 6% growth rate in the agricultural sector, in hopes of halving poverty by 2015 (MDG).

5. The Regional Agricultural Investment Programme is a coordinated effort to federate national priorities. It brings together national and regional priorities under a shared vision: the priority programs under the NAIPs that incorporate regional dimensions and surpass national prerogatives, are supported by the Regional Investment Plan.

a. It presents a coordinated approach to investments and policy instruments (regulatory frameworks, incentives, etc.).

b. It federates approaches developed under the different RAIP sub-programmes around a set of shared key issues.

6. The policy instruments are formulated to manage the risks associated with agricultural activities and anticipate the consequences of agricultural policy decisions and strategies. They are designed to support productive investments and in particular create incentives and an enabling environment for agricultural development. Three types of policy instruments are used for the implementation of the RAIP: (i) instruments for intensification of agricultural production, (ii) instruments for market regulation and (iii) instruments to improve to food for vulnerable populations.

7. With regards to intensification, the Regional Agricultural Investment Programme foresees support for the modernization of family farms and sustainable intensification of production systems. This action aims to transform family farming systems by helping them transition from subsistence to market agriculture through sustainable access to inputs and equipment, new seed varieties, and land tenure.

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8. To implement the action, the Plan provides for a number of mechanisms that focus on ensuring access to inputs and credit, and various forms of subsidies. These mechanisms are intended to provide a coherent regional response that is nevertheless adaptable to each country and their own constraints. They consist of a menu of actions that Member States can choose to implement with the support of regional co-financing from ECOWAS. They include initiatives that address the main bottlenecks in agricultural development: (i) a targeted fertilizer subsidies, (ii) targeted small equipment subsidies, (iii) a distribution network for inputs.

9. RAIP also provides for the implementation of a guarantee mechanism for input loans. The objective is to encourage banks to create credit lines directly for farmers or via distributors, by reducing (although not eliminating) the risk, thanks to a guarantee fund. The fund would focus on loans for food crops and cattle feed. This measure alone is obviously not sufficient to overcome credit constraints, and must be combined with other regional or national policies such as the development of warehouse receipts, and price and market stabilization measures. This component is not obligatory, and the existence of a guarantee fund is not a key constraint for some countries.

10. Finally, the Plan envisions the creation and dissemination of new seeds. This action aims to significantly increase seed production, which according to the FAO, grows only about 1.5% per year due to high costs to small farmers. The underlying rationale is that improved seed distribution is an instrument of sustainable intensification that determines the effectiveness of other factors of intensification. Thus, the Plan proposes a number of significant actions in this area: (i) coordination of basic seed production, (ii) harmonization of national input policies (taxation, subsidies, conditions for domestic distribution), (iii) capitalization and dissemination of good practices, (iv) capacity building of specialized research centers.

11. Accelerating the implementation of ECOWAP through the operationalization of the Regional Investment Plan hinges on a series of initiatives organized by the Direction of Agriculture and Rural Development under the Department of Agriculture, Environment and Water Resources. Firstly, the establishment of two technical institutions: the Regional Agency for Agriculture and Food (RAAF) and the Regional Fund for Agriculture and Food (ECOWADF), responsible for the technical implementation and financing of programs and projects supported by regional actors.

12. A number of task forces have been created to promote cooperation between regional actors on RAIP-related projects and the implementation conditions for planned economic policy instruments. These programs will be validated by the task force constituted for this purpose, before their adoption by ECOWAS decision-making bodies. They constitute the foundations of the first projects regional actors will submit to the Regional Agency for Agriculture and Food and the Regional Fund for Agriculture and Food.

2. Background and justification

13. This section reviews trends in the West African agricultural sector, focusing on two important aspects: (i) an analysis of actual performance over the last thirty years, and (ii) lessons learned from past implementation of incentives to improve the sector's productivity and significantly increase regional agricultural production.

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2.1. Recent performance of the regional agricultural sector

14. The West African agricultural sector has made significant progress over the last thirty years. It has witnessed a considerable increase in production, all sub-sectors combined1. The volume of cash crops grew from 19 million tons in 1980 to 43 million in 2010, i.e., a 126% increase over 30 years. The volume of all food crops combined quadrupled, going from 59 million tons in 1980 to 235 million in 2010.

15. The three strategic crops adopted by ECOWAS grew considerably during the same period. According to FAO statistics, volume of rice production rose from 3.2 million tons in 1980 to 9 million tons in 2006 to 11 million in 2010. Maize grew even faster, from 2.1 million tons in 1980 to over 13 million in 2010. Cassava production nearly quadrupled, from 16.4 million in 1980 to 65.2 million in 2010.

16. Cassava production remained concentrated in a few countries, namely Nigeria (by far the largest producer in the world), Ghana, Côte d'Ivoire, Benin, Guinea and, to a lesser extent, Senegal. Maize and rice have been less concentrated, although certain areas tend to drive most of the production: north central Nigeria and Office du Niger for rice and cotton, and maize producing belt in the Sudanian zone. Rice is grown throughout the region. Twelve of the fifteen ECOWAS Member States have adopted a strategic development plan for rice, capitalizing on the emergency plans set up during the 2008 food crisis.

17. However, these results mask a critical problem facing West African agriculture: low productivity. Production yields remain very low and rose only slightly. Over the past thirty years, yields grew, on average, only 42%, representing only 30% of increased production volumes. Production increases were in fact achieved through a sharp increase in cultivated land (229% rise over the period 1980-2005)2. This extensive growth model is no longer viable and replicable (exploitation of marginal lands, soil degradation, land use conflicts, etc.). Climate change makes the situation even more complex.

18. This low productivity masks disparities in crops and production areas. In the case of cereals, increased production volumes are due to the doubling of cultivated areas, while yields only rose by 14%. In the case of roots and tubers, growth of production volumes can be explained by a nine fold increase in cultivated lands. Productivity is highly dependent on production conditions, including natural conditions, access to technology, credit and inputs and profitable market channels.

19. Specifically, productivity of major crops remains low. Cereal productivity ranges from 600 kg and 1000 kg/ha, with maize peaking at 1.5 ton, while the worldwide average is around 8 tons. Rice yields average 2.5 tons per hectare, compared to a world average yield of 4.5 tons. Cassava yields reach only 15 tons, compared to a worldwide average of 40 tons. This low productivity is coupled with significant post harvest losses due to lack of good quality storage infrastructure.

20. The situation in the livestock sector and its byproducts is similar to that of crop production. Although short-cycle species have experienced a significant boom in recent years, ruminants still allegedly have low productivity. However, poor quality statistical data makes it difficult to appreciate their true value. Developing extensive systems for ruminants would nevertheless produce quality meat at low cost. Poultry flocks were estimated at some 400 million head in 2006,

1 FARM Foundation, 2007: Agricultural Potential of West Africa. Only cotton production has experienced significant shocks and erratic growth. 2 FARM, 2008, op cit

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cattle herds at 57 million, goats at 100 million and sheep at 83 million. The pastoral system was severely affected by drought in 2004-2005.

2.2. Agriculture: a sector with low levels of capitalization

21. West African agriculture is characterized by low capital-labor ratio. In fact, very few farmers use improved seeds, fertilizers and pesticides for production other than cash crops. For most producers, the primary working tools are the hoe, machete and animal traction. Tractors are used by only a small number of producers. The low capital intensity of agriculture in West Africa, combined with population growth which is resulting in shortened fallow periods, has led to soil fertility degradation.

22. Both climate change and human action have resulted in land degradation. Analysis of rainfall over the past four decades3 concludes a pronounced shift of isohyets from the North to the South of West Africa. This shift, accompanied by a decrease in rainfall in most sub-regional countries, has accentuated desertification.

23. Predicted climate changes will increase the frequency of extreme weather events such as floods, long droughts, extreme heat and torrential rains. These extreme phenomena are likely to accelerate the process of land degradation already initiated by human actions.

24. Pressure on agricultural lands has intensified as a result of rising food demands due to population growth and increased animal feed requirements, due to livestock growth. In the Sahel region of West Africa, production increases are more a function of expanding surface area than agricultural intensification. This extensification has led to a reduced vegetal cover and increased soil erosion, exacerbating soil degradation, nutrient deficiency and reduced water retention capacity of the soil. The result is low land productivity, which jeopardizes regional food security.

25. The intensified exploitation of land has not been accompanied by fertilizer use to compensate for nutrient losses. Indeed, the use of nutrients from fertilizers was 6.6 kg / ha in 2003 compared to 10.8 kg / ha for East Africa and 99 kg / ha for the world. Amounts reached 8 kg / ha for West Africa in 2008 compared to 14.3 kg / ha for East Africa and 105.9 kg / ha for the world. Nutrient intake declined in 2009 for West Africa, reaching 6 kg / ha versus 13.3 kg / ha for East Africa and 108.8 kg / ha for the world. For the period 2003-09, the average consumption was 6.5 kg / ha for West Africa compared to 12.3 kg / ha for East Africa and 105.2 kg / ha for the world.

26. Analysis of statistics suggests low use of fertilizers in West Africa compared to the rest of the world. For the period 2003-09, East Africa used two times more fertilizer per hectare than West Africa. Despite commitments made in Abuja in June 2006 by African states to increase fertilizer use from 8 kg to 50 kg of nutrients per hectare before 2015, West Africa has seen its consumption decrease from 8 kg in 2008 to 6 kg per hectare in 2009. The region must take stringent measures to curb this downward trend and boost fertilizer use through incentives to build efficient fertilizer supply and distribution networks.

27. The magnitude of the soil fertility problems due to the low use of fertilizers is demonstrated by various estimates that quantify average nutrient losses: 660 kg N ha-1 , 75 kg P ha-1 and 450 kg K ha-1 during the last 30 years, on 200 million hectares of arable land in 37 African countries. In semi-arid regions of West Africa, more than half of agricultural land suffers from erosion, exacerbated by farming practices.

3 FARM, 2008, op cit

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28. The low use of intensification factors is explained in part by high input costs and weak distribution mechanisms: farmers struggle to access inputs when they need them the most. Accessing production factors comes at a high cost, due to in part to the private sector's reluctance to invest in the fertilizer value chain (until recently) because of the risks posed by the instability of fertilizer policies, such as subsidies that can drastically reduce the return on investment.

29. Outside of cash crops, few efforts have been made by Member States to develop the input market for the benefit of food crops. Contrary to expectations, input market liberalization imposed by structural adjustment programs has not led to the emergence of a healthy private sector supply and distribution of food crop inputs for small producers.

30. Apart from availability issues, accessibility is a major constraint to crop intensification. The first obstacle to accessing inputs is the lack of functional financing systems that give small producers access to credit. Indeed, the link between access to credit and fertilizers and improved seed use is well established in most studies on the adoption of agricultural technologies by farmers. Lack of access to credit is a major obstacle to agricultural intensification in West Africa.

31. Key constraints to smallholder access to inputs are: Lack of collateral that can be seized by financial institutions in the event of default; Low loan amounts required by a great number of small producers who are scattered

geographically, which increases transaction costs and translates into very high interest rates, thus limiting the demand for credit;

Covariant risks that could potentially affect all the producers in one region and result in generalized default, such as widespread harvest losses for crops heavily dependent on rainfall. These risks are especially relevant for microfinance institutions that do not have a diversified product portfolio; they are less pressing for large banks with a broader product mix, but the latter do not have the same knowledge of the agricultural sector as MFIs;

Price volatility and unstable yields due to climatic uncertainties increase the risk of agricultural finance.

32. Lack of availability of quality fertilizers on the one hand, and the absence of effective credit systems on the other, are the main bottlenecks that must be addressed to stimulate the process of agricultural intensification. Indeed, intensification through fertilizer use remains the only viable way to improve food security while generating economic growth by improving agricultural productivity.

33. Improving farmers' access to credit to purchase inputs requires government intervention not only to create an enabling financial environment, but also to mitigate the risks associated with agricultural activity that small producers are unable to bear alone. Governments need to innovate and avoid the mistakes of agricultural credit programs of the past, which have ended in failure due to low interest rate caps that discouraged the mobilization of domestic savings, and a high tolerance for default.

34. It is critical that governments build on the successful agricultural credit experiences from recent decades and strive to develop effective systems for financing agricultural intensification through mechanisms that share risk among governments, the banking system, the microfinance sector, insurance companies and producers. States should assume the greatest share of risks early on and gradually reduce their exposure as the financing system grows and strengthens.

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2.3. Scope and limits of policies and strategies to improve farmers' access to inputs

35. Improving access to agricultural inputs4 for farmers has always been a key component of agricultural development policies and strategies in West Africa. Over the last thirty years, public policies have alternated between government intervention and the liberalization of the input supply and distribution chain (fertilizers and improved seeds). Distribution of small farming equipment has almost always been the prerogative of the private sector. However, some countries have promoted small agricultural equipment manufacturing units, such as SISMAR in Senegal and the agricultural equipment cooperative COBEMAG, in Benin.

36. Until the late 1980s, the coordination of input supply and distribution was managed by the state in most West African countries. This policy made it possible to integrate input supply into the marketing chain. It had some benefits for farmers, since financing for inputs could be easily secured and one state-owned company made all the decisions. State withdrawal, followed by structural adjustment reforms, led to an overhaul of coordination mechanisms to help secure funding for input supply from banks. This integrated model has its advantages (product availability and seasonal credit for producers) and many limitations (risks are borne by producers), which have been analyzed in depth elsewhere.

37. Today, different West African countries have different systems and mechanisms to coordinate stakeholders. We can identify three main types of systems for supply and distribution of inputs, namely fertilizers.

38. The first is the integrated model, which, following the state’s withdrawal, was established by institutions capable of financing credit from surplus revenues. The mechanism is often co-managed by a professional association, trade organization or parastatal institution. The latter manages financial flows between the four stakeholders: farmers, the beneficiaries of inputs; input importers and distributors; commercial banks that provide credit; and traders or processors who buy products from farmers; plus the state, which gives its approval. This model works for export industries like cotton and is based on a kind of central input purchasing unit. It has a number of limitations: delays in making products available, questionable quality and high costs of fertilizer. In many cases, food crops are not fully covered by the integrated model. Moreover, its proper functioning often depends on two important features: an extension component (advisory services, with extension agents in sufficient numbers) and a functional network of producer organizations. Producer organizations position themselves more as relays than true partners.

39. The private sector distribution model promotes private sector involvement in both imports and distribution. It promotes professional operators that have contractual relationships with suppliers, who provide them with credit. This model has been tested and encouraged in several countries by projects such as CARE and SG 2000, with a focus on food crops, especially cereals (maize and rice). It tends to be widespread in all countries for inputs for cash crops, as well as food crops, including cereals, garden vegetables, veterinary products and animal feed. Its efficiency depends on a good system of certification and quality control, often the weak link in many countries. Hence, this model main faces the same recrimination as the integrated model: questionable quality of inputs available to producers. Vacillating public policy has not created a stable environment for this system. It also explains the high price of fertilizer to producers.

40. The producer organizations model aims to help farmers organizations (and their federations) negotiate supplies directly with input producers or importers, and assume most of the distribution

4Agricultural inputs are elements that go into agricultural production and include (1) fertilizers, (2) pesticides, (3) seeds and seedlings and (4) application equipment

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functions, which involves gathering data on demand, executing call for tenders, input distribution, loan recovery, grouped payments, etc. This model is promoted by many West African POs and sometimes implemented in export sectors such as bananas and pineapples. It is very common in food production chains that have minimum supervision. The model is based on a partnership between producers and their organizations with local financial institutions (including microfinance institutions) and buyers (traders or public institutions), and functional coordination mechanisms: group marketing, warrantage, etc. Some POs turn over thousands of tons. For example, the Federation of Rice Production Cooperatives in Niger distributes between 3000 and 4000 tons of fertilizer per year.

41. POs’ involvement in the production and management of improved seeds has grown over the last twenty years. While they are absent in seed production of cash crops such as cotton, farmers increasingly invest in the production and distribution of seeds for cereals (millet, sorghum, maize and rice), tubers and roots, and some garden produce (onions in particular). Some seed producers have been trained and accredited, and their production compensates for the lack of improved seeds, a key constraint. However, the control and certification of seeds is not sufficiently ensured by public authorities. Seed quality produced by these POs still poses serious problems.

2.4. Policies for price support to inputs

42. Three price support mechanisms are the essence of incentive policies implemented by the government: subsidy, donation and price equalization. a. Subsidies are the inherent entitlement of public authorities when it comes to policies for

improving farmers' access to inputs. They often take two forms: (i) complete tax exemption of imports (port duties and and domestic taxes), (ii) coverage of 25 to 50% of the CIF price by the state.

b. Free distribution of inputs, mainly seeds and sometimes fertilizers for certain categories of producers. This was the case during the 2008 food crisis.

c. Price regulation through an equalization system that fixes the sale price of inputs, regardless of the point of sale.

43. States in the region have adopted subsidized inputs (fertilizer and seed) as a quasi-structural policy to improve productivity and increase food production volumes. The results are mixed and limited. For certain products like rice, productivity gains increased regional supply by over 25% over the last five years. However, incentive intensification policies based on access to inputs still suffer from:

i. Persistence barriers to competition in the input market, marked by the recurrence of centralized administration suppliers (central purchasing units, oligopolistic tendencies, etc.).

ii. Lack of reliable targeting mechanisms to reach small farmers who truly need fertilizer to improve their productivity.

iii. Low budgetary allocations by governments, which result in only a minority of producers benefiting from incentives.

iv. Sometimes poor quality of products, unstable availability of fertilizers, hence the recurrence of inadequate doses applied by producers.

v. Often high local distribution costs, despite government subsidies.vi. Little or no guarantee for producers and banks to manage risks, etc.

Box 1: Fertilizer pricing system in Benin.

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2.5. Overview of current programs

44. Several agricultural intensification programs and projects are underway at the country and regional level. They take many forms, but all aim to improve soil fertility through new technological packages, facilitating access to inputs, and pastoral systems management. They are managed either by CILSS, for those related to natural resources management, IFDC, for fertilizers, CORAF, IITA, ICRISAT and AfricaRice for research on seed improvement.

Table 1: Selected intensification programs being implemented in West Africa

Program Objectives Timeframe Amount ($)

Funder Countries

Agro-ecological intensification and risk management in integrated crop-livestock systems in West Africa to improve food security

Foster sustainable improvements in the productivity of agro-pastoral systems, humid and semi-arid zones

2011-2014 250,000 USAID Mali, Burkina Faso, Niger

Improving maize productivity and dissemination through the promotion of integrated management technologies in the savannah zone

Promote technologies for improving maize productivity

2010-2013 350,000 USAID Nigeria, Cameroon, Chad

Support for the sustainable improvement of productivity and the competitiveness of the dairy sector in West and Central Africa

Sustainably improve the productivity and competitiveness of value chains related to dairy production

2001 - 2014

454,250

MDTF CORAF

Niger, Senegal, Cameroon, Burkina Faso

Promotion of science and technology for agricultural development

Improved production technologies

2007-2012 1,598,000 AFDB Benin, Guinea, Ghana, Gambia, Chad, Togo

45. However, the largest productivity improvement program underway in the region is managed by CORAF/WECARD: West African Agricultural Productivity Project (WAAPP). It aims to create and disseminate in the highest priority areas improved technologies adapted to the region's priorities, identified by the West and Central African Council for Agricultural Research and Development

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(CORAF/WECARD). The project focused on roots and tubers in Ghana, rice in Mali and cereals in Senegal during its first phase. It is now extended to all the countries in the region.

46. WAAPP has four main components. The first is to create enabling conditions for regional cooperation in technology generation and dissemination. It aims to strengthen the mechanisms and procedures governing the registration and release of technologies to make them available for domestic use and distribution and trade in neighboring countries. The second component consists of National Centers of Specialization, which aim to strengthen the alignment of national priorities with regional priorities in the National Research Systems (NARS) of the participating countries. The third component consists of funding demand-driven technology generation and adoption in order to strengthen more priority-focused, transparent funding mechanisms for demand-driven agricultural R & D focused on the demand of participating countries. The fourth and final component is project coordination, management, monitoring and evaluation.

47. WAAPP covers three phases over the period 2008-2014a. WAAPP 1A covers the period 2008-2011 and three countries: Mali, Ghana and Senegal,

with a budget of $ 30 million. b. The WAAPP 1B covers the period 2009-2012 and three countries: Côte d'Ivoire, Burkina

Faso, Nigeria, each which received funding from the World Bank 31.4 million, 16 million and 52.5 million, respectively.

c. WAAPP 1C covers the period 2011-2014 and five countries and one geographic region: Benin (16.6 million), Gambia (8 m), Niger (30 million), Sierra Leone (12 million), Liberia (6 million), Pays de la Mano River Union (35 million).

48. Agricultural and pastoral intensification continue to face two major categories of challenges: a. The first stems from the instability of policies and strategies for agricultural intensification

in West Africa. Intensification policies have greatly evolved along the same lines as broader economic development polices, lurching between liberalism and state interventionism. This has impeded secure investments in production factors, especially fertilizer. The result is low use of inputs, and particularly fertilizer.

b. The distribution channels and networks set up by public agencies, the private sector and producer organizations alike have had mixed results. Farmers not involved in cooperatives, marketing groups or cash crop production face enormous difficulties in accessing inputs and especially fertilizer. Fertilizer costs remain high, due not only to low levels of private investment, but also high transaction costs.

This situation justifies the need for a program to support agricultural and pastoral intensification based on a policy that holds all stakeholders accountable: regional and national institutions, producer organizations and farmers themselves.

2.6. Issues and challenges of agricultural intensification in West Africa

49. West African agriculture faces many challenges due the current trend of continuous depletion of the natural resources in a context of high population growth, rapid urbanization and climate change. The main challenge of regional and national agricultural policies is to promote productivity improvements that take into account environmental issues, climate change and climate variability, and will sustain demand for food, expected to double every 25 years.

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50. Agricultural intensification must occur within an overall framework that promotes sustainable development, supported by public policies that are efficient and effective on the environmental and social level. Specifically:

a. Promote sustainable management of natural resources based on efficient and environmentally sound production systems. This requires developing strategies and implementing technical packages that limit land depletion, and resulting land use conflicts. Expanding agricultural land to increase production volumes is no longer sustainable, in light of land scarcity and climate change.

b. Improve and strengthen the resiliency of the most vulnerable populations through targeted support / interventions in terms of resource allocation and livelihood support, to enable them to better withstand cyclical and structural risks.

51. Addressing these two major challenges implies finding solutions to two key issues: a. Facilitating access to inputs (fertilizer, improved seeds, land tenure) and ensuring their

effective and efficient use, thanks to targeted and sustainable incentives. Both presuppose an agricultural policy that is coherent with broader macro-economic and sectoral economic polices.

b. Promoting innovative and sustainable production systems that preserve biodiversity.

3. Program strategy

3.1. Program scope

52. The program covers the strategic products selected by the Objective 1 of RAIP: rice, maize and cassava; and large livestock and small ruminants.

53. However, depending on the measures applied (access to fertilizers, seeds, veterinary products, promotion of rural water supplies), other crops and livestock may be taken into account. Indeed, some produce has great potential to reduce poverty thanks to high returns on investment. This is the case for garden vegetables grown by women on the outskirts of large urban centers and traditional poultry-rearing. Developing these products could considerably strengthen the resiliency of poor producers.

54. The program only covers aspects related to the modernization of farming systems and does not take into account processing, which can stimulate productivity in some agricultural sectors.

55. It focuses on the main intensification instruments proposed the RAIP, including co-financing, collateral, guarantees and other mechanisms aimed at securing agriculture in general and the activities of small farmers in particular.

3.2. Purpose of the program

56. The program aims to: "accelerate economic growth to improve incomes of different stakeholders, reduce poverty and ensure the preservation of natural resources and the environment." The program is part of an overall framework of strategies, programs, projects contributing to the Millennium Development Goals, including reducing food insecurity and halving poverty by the year 2015.

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3.3. Overall objective

57. The overall objective is to "contribute to the promotion of strategic products for food sovereignty and security." Let us recall that the Regional Agricultural Investment Plan has identified in specific objective N° 1, the promotion of five strategic products: rice, maize, cassava, livestock and meat and fish products. This objective aims to achieve food security in the short and medium term by significant production increases. It also aims to achieve long-term food sovereignty, by reducing food imports from outside Africa, and promoting the full integration of the regional market.

Specific objective 58. The program is based on one specific objective: "contribute to the modernization of agriculture for

food security and sovereignty in a context of regional integration." Indeed, taking into account the challenges outlined above, West African agriculture must deploy innovative and efficient intensification systems in order to significantly increase regional food production while preserving natural resources and using wisely the scarce financial resources available in the region.

Axes of intervention 59. Two axes of intervention address the key constraints that have long negated intensification efforts

of agricultural and pastoral systems in West Africa.

a. The first focuses on facilitating access to inputs: fertilizers, feed and seeds. It has three components or outcomes:

i. O 1.1: Appropriate mechanisms for financing access to inputs and livestock feed are established and operational.

ii. O 1.2: Input voucher programs for vulnerable farmers are implemented.iii. O 1.3: Professional distribution networks are operational.

b. The second area of intervention promotes innovative and sustainable production systems. It has three components or outcomes:

i. O 2.1: Research capacities on varieties adapted to climate change are reinforced. ii. O 2.2: Village water systems are established and functional.

iii. O 2.3: POs intensification initiatives are supported.

4. Justification for intervention

Axis 1: Facilitating access to inputs

60. West Africa has enormous potential to promote its agricultural sector and boost economic growth. According to IFPRI, "African countries have potential to reduce poverty and ensure food security during the next 15 to 20 years by focusing on policies and investment strategies to:" (i) increase the average growth rate of agricultural production by 50%, (ii) and accelerate the GDP growth rate from 6.5 to 8%."

61. This potential is still largely under or poorly exploited due to weak technical capacity. Although open to the market, West African agriculture is fraught with low productivity. Dominated by small family farms, the sector largely relies on labor-intensive production techniques and little use of inputs (fertilizers and improved seeds). Access to fertilizer is hampered by the high cost and availability of products. Input allocation policies are still inefficient and dysfunctional.

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62. The objective of this component is to improve productivity and competitiveness of West African agricultural and pastoral production systems in order to meet food demands at competitive costs. A number of actions are proposed, ranging from securing production systems to incentives to instigate the modernization of family farms in view of improving productivity.

Outcome 1.1. Appropriate mechanisms for financing inputs (fertilizer and seeds) are implemented.

Activity: 1.1.1. Support Member States to implement risk management instruments

63. Agriculture and animal husbandry are high risk economic activities in West Africa. Climate-related risks (floods, drought) are compounded by market risks. The result is strong interannual fluctuation of production and price volatility of agricultural products, which increase farmers' vulnerability and diminish food security.

64. In recent years, the government has deployed several instruments against price volatility (promoting storage, warehouse receipts, price stabilization, etc.). But these instruments are insufficient to safeguard and secure intensification investments. They do not offer the necessary security for strengthening populations' resiliency to multiple shocks.

65. The objective of this activity is to establish insurance mechanisms for the various risks associated with intensification. It involves:

Developing a tool to assess the effects of shocks, to be integrated into a regional contingency plan. This regional plan will be broken down into national-level contingency plans. The objective is to establish a risk-sharing mechanism at the regional level for selected strategic sectors. This could involve a guarantee fund to cover the risks associated with breach of contracts signed between the Commission and producer organizations for the purchase of certain products (thus linking to local and regional buffer stocks and a regional commodity exchange for food products).

Mobilization of insurance companies to develop products for crop and livestock farmers. This insurance system could be coupled with credit mechanisms and social safety nets for the most vulnerable. To this end, the Commission will establish a fund to co-finance pilot operations with selected countries.

Drawing on lessons learned from ongoing experiences with crop insurance in the region, including Nigeria, Senegal, Ghana, and Benin.

66. The action is eligible to ECOWADF window "Support to Regional Agricultural Integration" section on agricultural intensification, to the warranty envelope to cover part of the credit risk of input supplies and equipment, and “support innovation and capacity building” section.

Activity: 1.1.2. Harmonize the key interest rates of central banks and interest rates for commercial banks

67. Smallholders’ access to credit is limited by high interest rates practiced by financial institutions at all levels, often double-digit and sometimes bordering on usury. High rates are due to several compounding factors, including interest rates charged by the central banks, but also the practices of commercial banks, highly risk-averse when it comes to financing agriculture. Indeed, although the interest rate practiced by the central banks is generally low, the rates of domestic commercial banks average over 7%.

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68. This objective of this activity is to initiate reforms to significantly reduce interest rates to the agricultural sector. It involves:

a. Consultations between central banks to harmonize key rates and to adopt, via the Monetary Committee, guidelines for credit allocation and management for agricultural sector stakeholders.

b. Lobbying of commercial banks to take greater risks in the agricultural sector.c. Implement country-level tax incentives for banks that extend credit at low interest rates

for agricultural activities. These incentives could be object of a decision by the ECOWAS Monetary and Banking Commission. ECOWADF could open a budget line to compensate for losses resulting from these tax incentives.

Activity 1.1.3. Support the establishment of guarantee funds by Member States

69. Past experiences with guarantee funds have had mixed results in West Africa. Nonetheless, guarantees have always been a powerful means of encouraging banks to grant loans to small uncollateralized farmers. Similarly, guarantee funds can reduce, though not eliminate, the risk of providing credit to farmers and distributors.

70. The guarantee fund under this activity would focus on loans for crops and cattle feed. To be effective, it would have to be combined with other measures such as warehouse receipts and stabilization measures for prices and agricultural markets. It will be managed by commercial banks and backed by each individual state and ECOWAS. National guarantee funds could be managed by a development bank, which would have the advantage of being the sole manager for all national funds. Guarantee funds would be available to commercial banks and microfinance institutions with experience in agricultural finance.

71. The guarantee fund will cover a portion of write-offs. The idea is to guarantee crop loans granted to farmers or producer groups to purchase fertilizers, veterinary products, animal feed, as well as working capital loans for authorized distributors, to allow them to sell fertilizer on credit. Loan analysis must be made strictly on the basis of conventional banking criteria; the fund does not relieve the bank of its risk assessment responsibilities.

72. To be sustainable, only 50% of losses would be covered, so as not to incentivize borrower default or lax repayment capacity analysis on the part of the financial institutions. The fund would only cover part of the credit risk.

73. This action will be adapted for each country according to geographical targeting, risk coverage rate and the amount of the guarantee fund, which would be capped at the Community level.

74. Community conditions would require the fund to be managed by a development bank and would set risk coverage ceilings. The maximum Community contribution would be 2.5% of outstanding loans. The fund would be operationalized through:

a. A window of the Regional Agriculture and Food Fund (ECOWADF),b. Dissemination of the fund's opportunities and functioning to Member States, agricultural

trade organizations, c. Designation of a national correspondent bank for the fund,d. Formulation of national needs by producer organizations jointly with governments,e. A matching fund mechanism at the national budget level,f. A multi-stakeholder monitoring and evaluation component.

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75. The action is eligible to ECOWADF window "Support to Regional Agricultural Integration" section on agricultural intensification, to the warranty envelope to cover part of the credit risk of input supplies and equipment.

Outcome 1.2. Input voucher programs for vulnerable farmers are implemented

76. Fertilizers and seeds are the main (but not only) agricultural production factors that should be promoted through targeted subsidies. The challenge is to enable farmers who do not use fertilizer (or who use too little) to increase usage under cost-effective conditions. Appropriate subsidies can incite farmers, especially the most vulnerable and poor, to efficiently use fertilizers and thus improve yields.

77. The convincing results of fertilizer subsidy policies, implemented in 2008 to increase short-term production of rice and maize, are indicative of the positive effects of such a strategy. The input subsidy not only increased the average regional consumption of fertilizers, but also production volumes of rice and maize. Unfortunately, lack of effective and sustainable support pushed average consumption of fertilizers back in 2009, a decline exacerbated by the drop in cotton production in many countries.

78. Similarly, the deployment of a procurement policy in animal feed has strengthened the resilience of livestock in many Sahelien countries.

79. Targeting beneficiaries was also sub-optimal, which led to abuse in many countries. This component aims to facilitate access to fertilizer for small farmers by implementing a voucher system for input subsidies. It recalls the fertilizer strategy adopted by ECOWAS in 2006 that required subsidies to be channel through vouchers distributed to farmers.

80. The voucher system is a voluntary instrument, left to the discretion of the Member States and largely adaptable to individual country needs based on design and implementation criteria defined at the Community level. Its implementation requires the following activities:

Activity 1.2.1. Formulation, adoption of eligibility criteria for the voucher system

81. This activity aims to carefully target program beneficiaries by taking into account, in addition to the ECOWAP guidelines, activities being implemented by other actors. The voucher system has been experimented in many African countries. It was successfully piloted in Malawi. It is considered one of the safety nets to reduce rural household vulnerability and has been tested in several West African states. A voucher system consists of targeting populations with vouchers for inputs purchases through authorized dealers. The dealers are then redeemed by banks selected by the government to ensure the flow of funds. The system requires an effective and reliable targeting system for identifying beneficiaries.

82. This activity focuses on defining specific eligibility criteria for beneficiaries. Targeting includes the following actions:

a. Developing criteria using a participatory process. This step will involve representatives from decentralized government services, local authorities and producers and pastoralist organizations. Criteria will incorporate vulnerability indicators, good agricultural practices (including producers who already use organic manure and other integrated soil fertility management practices). Targeting will also consider other criteria such as: farm size,

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gender, with an option to set quotas for positive women and youth, etc. The program will prioritize producers engaged in strategic sectors: maize, rice, cassava.

b. Adoption and dissemination of eligibility criteria among producer organizations.

c. Beneficiary identification and evaluation of fertilizer requirements.

83. The action is eligible to ECOWADF window " support innovation and capacity building” of

various actors.

Activity 1.2.2. Establishment of funds and co-financing mechanisms for vouchers

84. The proposed fund has two components: a regional component housed by EBID and backed by ECOWAS Commission and external financial partners; and a national component, whose amount depends on the country. The amount at the country level depends on the number of producers targeted and subsidy rate retained (within the limits of the Community ceiling).

85. Community conditions of implementation of vouchers are: Subsidy rate cap. The subsidy rate should be capped (e.g., at 50%), to limit costs, avoid

uneconomic use of fertilizers, and limit agricultural market distortions between Member States. Subsidy levels could be modified in case of high international price volatility.

Management by a bank. The voucher system will be necessarily managed by a bank (where the authorized input dealer would go to redeem vouchers).

Authorized distributors. Only authorized distributors are eligible to participate in the program. A ceiling on the quantity of vouchers per farmer and according to gender. The number of

vouchers should be limited by farm (for example, 100 kg), so the program does not benefit larger farmers. This limit may vary country to country, given the variability in average farm size. It should also positively discriminate to women farmers, in order to promote their access to subsidized inputs.

Activity 1.2.3. Establishment of a capacity building fund for POs and local authorities to manage vouchers

86. Producer organizations will play a key role in the implementation of the voucher program. They are well-positioned to: (i) identify beneficiaries, (ii) take stock of and centralize needs, (iii) monitor implementation, (iv) provide technical support to beneficiaries on correct application of fertilizers and to evaluate the program's effects. Very few producer organizations are prepared for such a mission.

87. The objective of this activity is to set up a technical capacity building fund for producer organizations to receive training focused on:

a. Simplified planning techniques;b. Techniques for identifying beneficiaries for the voucher system;c. Design of indicators for monitoring and evaluating the vouchers' effectiveness;d. Analyzing lessons learned.

88. The activities will be eligible for funding from the "support for innovation and capacity building" funding window and specifically the capacity building envelope. Conditions for implementation:

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a. Existence of an effective national action in the country requesting funding support;b. Effective involvement of PO funding recipients in the implementation of the voucher program.

Outcome 1.3. Network of input dealers (fertilizer, improved seeds, veterinary products, animal feed) is expanded and professionalized

89. The major problem producers face to intensify food and livestock production is their limited access to inputs such as fertilizers, improved seeds, pesticides, veterinary products and animal feed. While this limited access is partly explained by low incomes and lack of access to credit, the major constraint is the lack of timely and convenient availability of low-cost quality inputs. For improved seeds, there is an additional challenge: the weak supply of certified seeds.

90. The lack of availability of quality inputs when and where farmers need them is mainly due to inadequate and inefficient water supply systems in rural areas. In addition, dealers' lack of technical knowledge about inputs; the result is the indiscriminately sale of inputs that are destined for specific uses, thus limiting their effectiveness due to inappropriate application.

91. To meet the challenges related to the timely, cost-effective, proximate availability of inputs, it is necessary to expand and professionalize the input distribution network. Professional distributors should sell quality inputs at competitive prices and be able to advise farmers on appropriate uses of inputs to optimize their use.

92. The objective of outcome 3 is to develop networks of professional distributors in rural areas in order to improve local access to quality inputs at competitive prices. Activities will focus on implementation of appropriate legislation, professionalization of dealers and support to finance investments and working capital.

Activity 1.3.1. Implementation of legislation

93. This activity has two components: - Support for the effective implementation of the two laws passed in 2008, including the C/REG

04/05/2008 which harmonizes the rules governing quality control, certification and marketing of vegetable seeds and seedlings in ECOWAS and;

- Establishment of licenses for distributors.

94. Both regulations aim to "facilitate the trade of agricultural inputs between Member States by applying the same principles and rules governing quality control, certification and marketing of these inputs in the ECOWAS zone"5. Although these regulations are supposed to enter into effect 30 days after publication and signature, it has become clear that application differs depending on the country. Some countries have aligned their national legislation on ECOWAS texts while others believe that the adaptation of national laws are not necessary for the enforcement of ECOWAS decisions. The main problem is that the bodies and institutions responsible for implementing these regulations are not functional in most countries.

95. Support will focus on technical and financial support to the public bodies and institutions responsible for managing and implementing the regulations. It will be offered at the request of States and will necessarily involve public and private actors responsible for importing, manufacturing and marketing inputs. This component will be entirely funded by the regional program.

5 CORAF, September 24, 2012. www.coraf.org/database/publication/publication/APS1.pdf

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96. The establishment of a licensing system will require distributors to meet a set of minimum criteria for marketing inputs, as is the case for veterinary products in some countries. These minimum requirements would be common to all ECOWAS countries. The licensing system will be built on regional standards to stimulate regional input trade by giving authorized distributors the opportunity to trade in all ECOWAS countries. Eligible actors include wholesalers, semi-wholesalers and agro-dealers who distribute inputs in rural areas.

97. Minimum requirements or regional standards will include: Existence of a minimum storage capabilities; Demonstrated technical knowledge on inputs to advise producers on proper use; Commitment to distribute only approved products; Commitment to communicate information on inventory levels.

98. After the establishment and promulgation of regional standards, licenses will be provided at the country level. Countries will also have the responsibility to monitor compliance and revoke licenses in case of non-compliance.

99. Stakeholders already active in input distribution and who meet the minimum requirements will be the first eligible for licensing. This includes producer cooperatives, input traders, traders and agro processors, and young graduates who want to get into input distribution.

100. The action is eligible to ECOWADF window "Support policy, institutional and regulatory regional" and envelope "regulation / legislation, standardization, certification and quality control community".

Activity 1.3.2. Support for the professionalization of agro-dealers

101. Distribution of fertilizers and pesticides constitutes a commercial activity which requires not only specific precautions prescribed by law, but also technical skills. The objective of this activity is to upgrade agro dealers. Professionalization will be done through training. Training will focus on technical knowledge of inputs, quality control, business management, national and regional regulations on agricultural inputs and contracting, voucher management, managing contractual relationships with technical partners: POs, financial institutions, government services, etc. Training will be open to all those who want to acquire the skills needed to obtain a license.

102. Member States will be responsible for organizing training. However, curriculum and training manuals will be developed at the regional level to ensure the consistent content. States will fund 50% of training costs. Each country is free to provide training at no cost or seek contribution from the beneficiaries.

103. The action will be eligible for financing via the window "support for innovation and capacity building" and specifically the capacity building envelope. Eligibility criteria:

a. Input distribution must be the primary activity;b. At least two years of experience as an input dealer or holder of a project that has been

accepted by a commercial bank; c. Compliance with national and regional regulations;d. Holder of a valid license.

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Activity 1.3.3. Support to finance investments and working capital

104. Authorized distributors often face a number of constraints, including (i) inadequate infrastructure / storage facilities, (ii) lack of working capital to purchase large quantities of inventory. This activity aims to implement a co-financing mechanism between countries and the Regional Agriculture and Food Fund to facilitate authorized distributors' access to financial resources. The mechanism aims to remove credit constraints to infrastructure development, an entry barrier for new players and existing distributors. Support includes an investment component and a working capital fund.

105. The investment component will cover a portion of the financing required for building and equipping the infrastructure necessary for input distribution. Infrastructure support will be limited to the construction of shops for agro-dealers and setting up demonstration plots. For equipment, priority will be given to equipment for shops, vehicles, quality control equipment, and the equipment and supplies needed to set up demonstration plots.

106. Investment support will be based on a co-financing formula:

a. The licensed distributor pays 75% of the total investment and the program will provide the remaining 25%, co-financed by the national budget and a regional fund earmarked for this activity. Of the 25%, individual countries could contribute 10% and the region 15%.

b. Implementation of the mechanism will be left to the discretion of States, which are free to adopt it or not. However, the community standard could set the limit for additional co-financing resources at 25%, to avoid disparities between states.

107. The action will be eligible for the "support to regional agricultural integration" window and specifically the envelope for agricultural intensification.

108. The working capital fund is justified by distributors’ insufficient access to credit to acquire and store large quantities of inputs necessary to meet the producers’ demands in a timely manner. The seasonal nature of demand requires distributors to store inputs or exercise another activity that is counter-cyclic to input sales, such as agricultural marketing. This storage requirement increases the need for working capital for agro dealers if they do not have another activity. Because distributors lack access to credit, they are forced to store small quantities, thus causing frequent stock shortages, often when farmers need inputs the most.

109. Working capital will allow distributors to store large quantities of inputs to meet farmers' demand in a timely manner. Support will be channeled through a bank guarantee with the requirement of reaching the ratio of 1:10, i.e., 1 FCFA should leverage 10 FCFA of working capital at the end of the 5-year program. This mechanism will reach a maximum number of distributors.

Axis 2: Promotion of innovative and sustainable production systems

Outcome 2.1. Research capacities on varieties adapted to climate change are reinforced

110. According to several studies, climate change in sub-Saharan Africa will lead to increased variability in rainfall, higher temperatures and rising sea levels. In addition, the frequency of extreme weather events such as heavy rains, floods and extreme temperatures are expected to increase. In West Africa, humid areas will probably be subject to more frequent storms and

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flooding, thus increasing soil erosion. In the Sahel, droughts will become more frequent, with longer dry periods. Coastal areas will experience greater erosion and flooding of farmlands.

111. In West Africa, the consequences of climate change are expected to lead to significant crop yield losses--estimated at over 20% in some studies--and disturbances in animal production systems. Indeed, farmers will need to adapt to less but more unpredictable rainfall, especially in arid areas. Meanwhile, catastrophic floods and unseasonably heavy rains are to be expected, to the detriment of crops. The result could increase risk of food insecurity for a large part of West Africa and cause a slowdown in economic growth, since the primary sector is highly dependent on weather conditions.

112. To limit the impact of expected climate changes on West African economies and food security, agriculture and livestock systems will need adapt to climate variability. This adaptation requires new demands that are more difficult to satisfy in agricultural productivity. Research is essential for overcoming the constraints due to climate change through "the development of varieties and species likely to be productive under a variety of conditions."

113. The outcome 2.1 aims to build research capacity in West Africa to develop varieties and animal species that will be productive in the extreme conditions expected from climate change. Research capacity will be developed by creation or strengthening of specialized regional centers for strategic products; creation of a competitive fund for interdisciplinary research; and the establishment of a fund to support the training and funding of doctoral theses.

Activity 2.1.1. Creation / strengthening of specialized regional centers for strategic products

114. This activity will focus on creating or strengthening existing clusters working on strategic products selected by the region: rice, maize, cassava and livestock. The World Bank WAAPP program has already established National Centers of Specialization that cover the five strategic products, NCS-rice in Mali, NCS-maize in Benin, NCS-cassava in Ghana and NCS-livestock in Niger. This activity will strengthen and transform these National Centers of Specialization into regional centers, and network them with universities within and outside the region, major regional and international centers (IITA, AfricaRice, ICRISAT , ILRI, CIRAD, etc.), producer organizations and the private seed producers.

115. The vocation of the specialized regional centers is to give greater impetus to the development of technologies, species, varieties and appropriate policies to increase the resiliency of production systems to climate change, while positively impacting their productivity. Hence, the value added of these centers is to strengthen the resistance of the more productive species' and varieties' developed by researchers to climatic stress, and define policies to facilitate their adoption. The idea is to combine the "productivity" objective of the NCS with the goal of "resistance to new production conditions expected from climate change", assigned to specialized regional centers.

116. The investments planned for the transformation of NCS into specialized regional centers will focus on infrastructure, laboratories and related equipment, demonstration plots, continuing education of existing scientific staff, and the development and implementation of training plans for researchers.

117. Each regional center will have a dedicated annual operating budget and a multi-year research fund. Modalities and management bodies will be defined at the regional level. Annual budgets and multi-year research funding will come from the regional program in partnership with donors.

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118. This activity is eligible for the "Support for innovation and capacity building" window and more specifically the envelope "support research, dissemination of good practices, exchange of experiences, capitalization, networking on topics of regional interest ".

Activity 2.1.2. Implementation of competitive funds for interdisciplinary research

119. The competitive fund for interdisciplinary research is designed to facilitate the transfer of technologies developed by the regional centers. This involves testing resistant varieties and species from regional centers under conditions experienced by farmers. The fund will be administered by CORAF, national agricultural research centers, and producer organizations.

120. The competitive fund will be fully backed by the regional program. The eligibility criteria for the fund will be established at the regional level and will promote interdisciplinarity and cooperation between research institutions to encourage diversification of scientific partnerships and collaboration between national, regional and international institutions. The criteria will also encourage demand-driven research. The fund's administration bodies and procedures will be defined based on lessons learned from CORAF’s experience with competitive funds and the WAAPP program.

121. This activity is eligible for the "Support for innovation and capacity building" window and more specifically the envelope "support research, dissemination of good practices, exchange of experiences, capitalization, networking on topics of regional interest ".

Activity 2.1.3. Establishment of funds to support the training and funding of degree programs (PhD and Master's)

122. West Africa suffers from two essential constraints in terms of human resources devoted to agricultural research: (i) a chronic lack of IT capability and specialists in certain areas (breeders, for example) (ii) an aging workforce among NARS staff. The objective is to increase the technical staff for agricultural and pastoral research in West Africa. The fund to support the training and funding of doctoral theses aims to train the next generation of researchers to replace aging research staff in the sub-region. The fund will also address the lack of skilled researchers in many countries and ultimately provide staff for the specialized regional centers. ECOWAS will explore partnership opportunities with other potential donors (foundations) to jointly finance and manage the fund. Potential donors could co-finance up to 50% of the fund with ECOWAS to multiply the impact of the initiative.

123. Donors will be invited to nominate representatives to the committees set up to select candidates of the competitive selection process for both the training and funding of doctoral theses. Similar committees will be set up for competitive research funds.

124. It is expected to train three hundred (300) specialists during the five-year program: (i) 50 rice specialists, (ii) 50 maize specialists (iii) 50 cassava specialists (iv) 50 small ruminant specialists (v) 50 large livestock specialists (vi) 50 social scientists (10 in rural sociology and 40 in agricultural economics at the doctoral level).

125. Funding support for doctoral theses will address the 300 specialists who will receive training in universities in the sub-region, Africa and the rest of the world (Europe, Asia, North America). The students will have to carry out their doctoral research in the regional centers. Outside the training of specialists, the fund will finance doctoral students from universities in the sub-region, with a

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focus on women. This support will be limited to two theses per strategic product per academic year and will be subject to a competitive process.

126. The fund to train and finance PhD specialists will be administered by the regional centers. The selection criteria for candidates as well as the funds' administration will be developed at the regional level, by drawing on the experience of the Alliance for a Green Revolution in Africa (AGRA). The topics will cover regional issues (at least two countries in the region).

127. This activity is eligible for the "Support for innovation and capacity building" window and more specifically the envelope "support research, dissemination of good practices, exchange of experiences, capitalization, networking on topics of regional interest ".

Outcome 2.2. Integrated village water supply programs are implemented

128. A well-managed water supply is one of the essential conditions for intensification of production systems in agricultural and pastoral areas subject to strong variations in rainfall and drought. In West Africa, less than 15% of irrigable land is exploited. Similarly, less than 2% of renewable groundwater reserves, estimated at more than 1000 billion m3, are used for agricultural development. Irrigated agriculture is hence critical to agricultural intensification and regional food security.

129. Water management strategies vary in West Africa. The best known are the major irrigation schemes, some which do not work very well and come with high maintenance costs. After the 2008 food crisis, some countries were tempted to reactivate large irrigation schemes, but many opted for small-scale systems instead. This option is relatively low cost and has greater potential outreach, and has the capacity to reach previously marginalized lowlands.

130. Most countries have experience with multi-purpose water management through rural water supply initiatives. These systems have not only improved access of rural populations to safe drinking water, they have secured the pastoral economy with drinking water for animals and contributed to the development of agricultural activities with off-season production such as rice and vegetable products (tomato, eggplant, pepper, carrot, potato, onion, etc.). Rural water supply systems have emerged as one of the key mechanisms to improving resistance to climatic shocks, such as increasingly frequent droughts.

131. The objective of this activity is to better exploit the potential of both surface and groundwater in the region. The activity consists of equipping rural communities with infrastructure to exploit water resources for multi-purposes. Although the activity is country-level, it is supported by the regional program due to its importance for the achievement of certain dimensions of ECOWAP (food security and reducing inequalities between territories).

Activity 2.2.1. Support for establishment of pastoral wells in transhumance corridors

132. Livestock is an important component of the agricultural economies of West African states. Livestock systems are extensive, based on seasonal transhumance. Increasingly, these systems face difficulties due to more acute competition for natural resources. It has become a source of conflict between pastoralists and farmers in destination countries. Overseeing transhumance still poses serious problems, both in terms of creating routes, and the economic viability of reception zones.

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133. The Heads of State adopted in 1998 the Decision A/DEC.5/10 98, on transhumance between States, and in 2003, the Regulation C/REG.3/01/03 on the implementation of the regulation of transhumance between the ECOWAS Member States. Transhumance is nonetheless still marked by incidents and conflicts, sometimes deadly. These regulations, adopted by consensus, are not necessarily respected at the same level in all countries, because they do not really address the root causes of transhumance. They are not accompanied by actions or economic measures that secure the activity and address the use of natural resources, such as water--source of competition between farmers and pastoralists.

134. The objective of this activity is to develop the main transhumance corridors to make the activity viable. It involves drilling a number of water points primarily for watering livestock in transhumance. Because it contributes to regional integration, the action will be fully subsidized by the regional fund. Regional conditions for the subsidy will be based on a number of criteria, including: a. Clear delineation of the route by the reception country and communication of this to the

departure country;b. An inventory of routes by ECOWAS; c. Existence of local (farmers, pastoralists, local authorities) conflict resolution committees.d. Request is formulated by local committees and supported by the reception country.

135. Activity is eligible for "Supporting integration of regional agricultural" window and specially section "Managing shared resources" and envelope "Staffing investment: improvements border areas."

Activity 2.2.2. Support the establishment of water points / multi-purpose boreholes

136. The desertification of West Africa demands implementation of mini multi-purpose water structures. In recent years, West African countries have developed community-based systems of water supply in both rural and urban areas, to improve access to water resources. The initiatives in rural areas have proven most useful in terms of the multiple functions assigned to them. They have not only contributed to land development, but also the promotion of agricultural and pastoral activities.

137. The Conseil de l'Entente has developed an extensive program of village water supply for agro-silvopastoral purposes, as has CILSS. These efforts have helped secure many rural communities and promote agricultural and pastoral activities. The expansion of rice and garden vegetables is largely due to these facilities, essentially based on multi-purpose boreholes.

138. WAEMU implements an eight-country regional rural water supply program within the framework of its regional food security program. This program aims to equip all the countries with human powered drilling technologies to promote agricultural and pastoral activities.

139. Due to lack of additional financial resources, many countries cannot meet the many demands of rural communities, women's grassroots groups, etc.

140. The purpose of this activity is to strengthen current initiatives underway across the region, to expand rural water supply networks. It is based on a co-financing system between the regional fund and Members States. The regional subsidy rate could be adjusted according to the cost of introducing the technologies, but also Member State commitment.

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141. This activity is eligible for the "Support for innovation and capacity building" window and more specifically the envelope "support research, dissemination of good practices, exchange of experiences, capitalization, networking on topics of regional interest ".

Activity 2.2.3. Support for the implementation of rainwater catchment systems for supplemental irrigation

142. In recent years, some countries have developed systems that use rainwater and other amenities for supplemental irrigation. These systems consist of building storage facilities for rainwater on farms. Stored water is then used to treat occasional dry spells.

143. This system is being tested in Burkina Faso and has proven to be an effective tool for securing small farmers' investments in intensification. The system improves yields of many crops, especially maize and rice.

144. The plan is to build on this experience, disseminate the system among rural communities and train farmers in the technology. The subsidy covers equipment to set it up: motorized pump, drain hose.

145. This activity is eligible for the "Support for innovation and capacity building" window and more specifically the envelope "support research, dissemination of good practices, exchange of experiences, capitalization, networking on topics of regional interest ".

Outcome 2.2. POs' intensification initiatives are promoted and supported

146. One of the major changes in the West African agricultural sector over the past fifteen years is the rise of agricultural trade organizations. They have a pyramid structure, from the local level up to the national, regional and continental level. There are currently four networks of organizations in the region: ROPPA APESS, RBM and REPAO. In addition, there is the West African rural women's network. These networks are involved in advocacy, lobbying and service delivery to members.

147. Grassroots POs play an active role in the implementation of programs and projects aimed at agricultural intensification, particularly those interested in organic manure, mixed crop/livestock systems, seed production and distribution, and supply/distribution of fertilizers. All of these initiatives have increased the visibility and economic weight of many organizations. These initiatives also include partnerships with other rural economic actors: microfinance institutions, agricultural traders (private or institutional). They promote tools to ensure food security and improve access to markets: warehouse receipts, group marketing, village cereal banks, etc.

Activity 2.2.1. Support for technological innovation of POs

148. Whether in the context of ROPPA, APESS, RBM or REPAO, grassroots producer and pastoral organizations promote many different initiatives. They are active in research and development and technological innovation. Many initiatives do not thrive or even get off the ground due to lack of sufficient and sustainable funding.

149. The activity establishes a competitive fund to encourage technological innovations of producer organizations. Accessibility criteria would be based on a tender process, supervised by CORAF and other regional institutions (CILSS, AfricaRice, ICRISAT, etc.). Eligible applications must meet the following criteria:

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a. Involve at least two pastoral or peasant organizations located in two countries; b. Demonstrate a working relationship with the national agricultural research systems;c. Focus on a theme promoting technological innovations.

Activity 2.2.2. Support peer exchanges among farmers, inside and outside the region

150. This activity focuses on strengthening stakeholders’ capacity through peer learning and exchange of experiences on good practices in agricultural intensification. It aims to facilitate producers' mobility, and in particular PO leaders. It will finance peer exchange missions between regional stakeholders and other external actors. Such exchanges already exist at both regional and international levels. Leaders of producer organizations have already conducted study visits to both India and Brazil.

151. This activity will further develop these exchanges, to reach a greater number of leaders and take into account the small producers who are at the heart of agricultural activities. These exchange visits could be coupled with targeted training for producer organizations on specific technologies identified by the PO.

152. ROPPA is currently testing this type of initiative with the Songhai Center in Benin. It could be enhanced by encouraging young farmers to spend time working on family farms that have demonstrated innovative techniques.

153. In both cases, exchanges and targeted training will be carried out by the PO. Beneficiaries shall be identified on the basis of their projects or experience in the selected sub-sector. Exchanges and training will be fully funded by the regional fund through the capacity building window.

5. Stakeholders and beneficiaries

154. Various local, national and regional-level actors and institutions will be responsible for implementing the program.

a. ECOWAS155. The Economic Community of West African States will be the main contracting authority. It will

define the strategies, rules and mechanisms to operationalize the Regional Agricultural Investment Programme based on the guidelines laid out in the agricultural policy. It will mobilize the regional and international financial resources to achieve the program objectives. It will coordinate, promote, implement, monitor and evaluate activities, through its technical and financial institutions. It will orient program policy by creating an environment whereby it can provide political leadership.

b. Member States156. They will participate in the definition of mechanisms and rules. They will facilitate

implementation through coordination and management of policy actions, via their relevant national institutions, including the Strategic Orientation Committee which should be in place as part of the operationalization of National Agricultural Investment Plans. The role of Member States will also be crucial in financing activities at national level. They will need to mobilize national and external resources, as well as support national stakeholders to define, implement and monitor and evaluate their projects.

c. Socio-professional / trade organizations.

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157. They played a critical role in the process of defining agricultural policy. They are also stakeholders of the different institutions set up to coordinate the operationalization of the agricultural policy, in particular RAIP. They will be both targets and beneficiaries of the program, through their members. They will be called upon to support producers and contribute to targeting direct beneficiaries. They will work with local authorities to ensure better management of programs and projects on the ground.

d. Banking sector, private sector (input distributors), NGOs158. The private sector and civil society have an important role to play in program implementation.

Indeed, although some position themselves as beneficiaries, the private sector and NGOs are service providers par excellence, particularly when it comes to technology transfers, and implementing the voucher system through co-financing fertilizers distribution. Some stakeholders will need capacity building; others will need information to align their activities with the mechanisms and regulations stipulated under the program.

6. Complementary measures

159. To reach the objectives of the agricultural and pastoral intensification support program, it is necessary to adopt a number of complementary reforms that are the responsibility of other departments of the ECOWAS Commission, and individual Member States. Four crucial measures must be addressed with care. Promote an enabling environment for regional trade in agricultural products. This implies

establishing an appropriate trade policy. It requires adopting a package of tax measures for cross-border and domestic trade. This measure is of utmost importance at a time when the Community is negotiating the creation of a customs union, and is involved in the negotiation of trade agreements with external partners to establish free trade zones. The production increases resulting from productivity improvements will only be sustainable if there is a secure market; the regional market is obviously the primary starting point. There needs to be a fiscal policy for development that facilitates access to production factors at a lower cost and sufficiently protects productive investments.

Support efforts to secure land tenure, a prerequisite for intensification. Producers will not invest in the modernization of their farms if they are not certain to maintain land rights. The land question is an even more important for African smallholders, where the land rights are not recognized or secured by legislation and public policy. Several land securization initiatives are being testing in the region, by facilitating the issuance of land titles, but they do not fundamentally solve the thorny issue of the sale of land by the poor. The sensitive issue of land tenure--a fundamentally national issue--can be supported at the regional level with two types of actions: (i) harmonization of the Investment Code and the Land Code across the different countries, to facilitate settlement of Community nationals and (ii) an agreement between countries to avoid the concentration of major private investment in countries where legislation is less demanding. There is a need to define the minimum conditions (lease terms, specifications, operating criteria, final destination of production) that countries that should negotiate with investors.

Implement measures to manage expected surplus of intensification. In addition to facilitating flow of goods on the regional market to dispose of surplus production, measures should promote processing to increase the value and competitiveness of products in regional and international markets. Finally, close linkages should be established between the program and

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the operationalization of food reserves at both national and regional levels. Stock renewal should focus on collecting local products.

7. Risks and assumptions

160. Implementation of the regional agricultural and pastoral intensification support program is a complex process whose success depends on several factors. Bold steps are required to mitigate the risk of not achieving objectives.

7.1. Effects of climate change and variability

161. Climate variations are a major cause of food insecurity, along with low production levels. The measures implemented under this program, including the development of rural water supply and adoption of more resistant seed varieties, are clearly not sufficient to mitigate the effects of phenomena as pervasive as change and climate variability. It will be necessary to develop other measures, such as irrigation, reforestation and pollution control. For some of these measures, advocacy efforts must go beyond West Africa.

7.2. Mobilization of financial resources

162. The program budget is over $ 300 million; efforts to mobilize this sum could be compromised by the persistence or worsening of the international economic and financial crisis. There is considerable risk that the ECOWAS Commission and Member States are unable to shore up sufficient financial resources to meet investment and financing needs. Given this context, socio-professional and trade organizations need to deploy serious lobbying efforts to translate the political will around agricultural development and food security issues into budgetary commitments.

7.3. Coordination between the different institutions at different scales

163. Program implementation requires rigorous coordination, not only between the region and countries, but also between institutions themselves, both at national and regional levels. Failure of one institution can cause significant delays in the implementation of others, whose success largely depends on respecting the agricultural calendar. Different governance tools and mechanisms (subsidies, guarantees, co-financing) are a prerequisite for the program's success. Emphasis should given to improving the functioning of various bodies in charge of program management.

7.4. Political stability and security

164. Economic activity in general and agriculture in particular requires political stability and security. The multiple crises facing the region are likely to slow down program implementation, diverting resources and causing population displacement. Efforts to pacify the region, and improve political governance should be strengthened.

8. Program implementation

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165. The program will be implemented by the specialized technical institution of ECOWAS: Regional Agency for Agriculture and Food. Financing will come through ECOWADF.

8.1. Role of RAAF

166. The Regional Agency for Agriculture and Food (RAAF) implements ECOWAP programs by calling on regional actors with skills in these areas. The Agency will contract regional institutions and organizations for the implementation of projects, under the political leadership of the Department of Agriculture and Rural Development of the ECOWAS Commission. It centralizes applications from different institutions before forwarding them to the Regional Fund. Project files are handled by the technical unit.

8.2. Role of the Fund

167. The Regional Fund for Agriculture and Food makes investment and funding resources available for various activities. ECOWADF has four windows: (i) Support to regional integration of agriculture, which includes the sub-sectors of agricultural intensification; processing and marketing; and management of natural resources, (ii) Food security (social safety nets and regional stocks), (iii) Support for innovation and capacity building (research and capacity building), and (iv) Support for regional policy, institutional and regulatory frameworks.

168. The Fund operates in two ways:a. 100% subsidies for regional actions. The actions that qualify for 100% subsidies are those

under the RAIP and managed by the Regional Agency for Agriculture and Food, in partnership with various partners--cooperation agencies' regional technical entities, socio-professional networks and trade organizations, consulting firms, private institutions, NGOs, etc.--recognized as eligible for the regional fund. Jointly with the Fund, RAAF will establish the eligibility criteria for regional projects.

b. Co-financing of actions implemented at the national level and supported by (i) the Member State that submits a program to ECOWAS and (ii) eligible commercial banks.

169. In the case of co-financing of national programs, the following criteria must apply:a. The action is based on the principle of shared responsibility Member States - Economic

Community, or ECOWAS - the banking sector.b. Regional instruments shall be to gain leverage: incentivize Member States, orient public

action based on ECOWAP objectives, encourage involvement of the banking sector.c. Regional instruments shall support and strengthen national instruments: the regional level

can only co-finance national programs or bank interventions under the NAIP and RAIP guidelines.

d. The funding agreement is precluded by an agreement between ECOWAS, the regional ECOWADF manager and the Member State or bank.

e. Interventions in the form of guarantees shall be based on risk sharing between the financial institution, the Member State and the regional community. It is a principle of shared responsibility whereby each participant is expected to engage in good credit management. The terms of risk sharing need to be refined. The current RAIP budget has been established on a provisional basis as follows:

i. The guarantee fund will cover 20% of identified risks.ii. This 20% will be allocated on the following basis: 10% for the bank, 5% for the

Member State and 5% for the region (covered by EBID from resources allotted by the Regional Fund).

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f. Cost-sharing subsidy, grants, and guarantees between Member States and the Regional Community may be adjusted to take into account the country's level of development and budget capacity (regional solidarity).

9. Overall program cost

170. The total program cost is three hundred and forty-two million, five hundred thousand (342,5000,000) U.S. dollars over five years. It is distributed as follows, according to the objectives and results

Total 342,5Component 1: Facilitate access to inputs

240Outcome 1.1: appropriate mechanisms for financing access inputs and livestock feed are established and are operational

60

Outcome 1.2: voucher programs for inputs are operational

120

Outcome 1.3: Professional distributors networks are functional

60

Component No. 2: Promote innovative and sustainable production systems

Outcome 2.1: Research capacities on varieties adapted to climate change are reinforced

40

Outcome 2.2: Village water systems are established and functional

35

Outcome 2.3: POs' intensification initiatives are supported.

25

Program management 2,5

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171. Logical Framework PRAIAP / AO Programme

Objectively verifiable indicators Sources of verification StakeholdersOverall objective: "Contribute to the promotion of strategic products for food sovereignty and security."

Rate of increase in the production of strategic products, rate of reduction of external dependence on strategic products

Statistics from ECOWAS, development agencies, NARS

ECOWAS Commission,Member States, socio-professional and trade organizations,Technical institutions of cooperation agencies

Specific objectives: "Contribute to the modernization of agriculture for food security and sovereignty in a context of regional integration"

Improve productivity of farming systems that produce strategic products, growth rates of yields

Statistics from ECOWAS, development agencies, NARS

NARS, PO, organizations of input distributors, technical institutions of cooperation agencies, financial institutions, –RAAF, ECOWADF

Axis 1: Facilitate farmers' access to inputs

Outcome 1.1: Appropriate mechanisms for financing access to inputs and livestock feed are established and operational

Act. 1.1.1 Support Member States implement instruments to manage risk related to intensification (agricultural insurance)

At least half the Member States have set up an insurance systemAt least 10% of farmers have access to insurance (crop or multi-risk)

RAAF Activity Report, activity reports from the Ministries of Agriculture of Member States,Activity reports of insurance companies

Member States, PO and insurance companies

Act. 1.1.2: Harmonize the key interest rates of central banks and interest rate agricultural loans

Rate of decline in interest rates charged by banks and MFIs;Lending rates charged by MFIs for agricultural finance

Activity reports from banks, producer organizations,RAAF and ECOWADF Activity Reports

ECOWAS Commission, Member States and socio-professional and trade organizations

Act 1.1.3. Support the establishment of guarantee funds by Member States (co-financing the guarantee)

Additional number of producers who have access to agricultural credit in each of the fifteen countries of the Community

RAAF, ECOWADF Activity Reports, producer organizations and national financial institutions

RAAF, ECOWADF, Member States, financial institutions (development and finance institutions, POs)

Outcome 1.2: Input voucher programs for vulnerable farmers are implemented

Act. 1.2.1: Formulation, adoption of the eligibility criteria

Document containing criteria, number of criteria

Minutes of meetings, RAAF Activity Report

ECOWAS Commission, specialized regional institutions, POs Member States

Act. 1.2.2. Establish of funds and co-financing mechanisms for vouchers

Quantity of fertilizer distributed, number of beneficiaries by country

Activity Reports of RAAF, ECOWADF, producer organizations

RAAF, ECOWADF, Member States, financial institutions (development and finance institutions, POs, input

distributors)Act 1.2.3. Establishment of a capacity building fund for POs and local authorities to manage vouchers

Training curricula for POs, number of leaders trained, number of training sessions by country

Training reports, activity reports of PO, RAAF, ECOWADF;

ECOWADF, Member States, PO

Outcome 1.3: Network of input distributors is expanded and professionalized

Act. 1.3.1: Support for legislation

Legislation regulating the activity of input distributors

RAAF and DADR Activity Reports ECOWAS Commission, specialized technical institutions (IFDC, CORAF, AfricaRice, ICRISAT, CILSS, etc.., POs

Act 1.3.2. Professionalization (training on quality management and efficient use of inputs, business management)

Number of distributors installed in each of the fifteen countries of the Community

Reports from the Ministries of Agriculture and producer organizations

Member States, RAAF, ECOWADF, input distributors' association

Act. 1.3.3. Awareness of the national and regional regulation)

Quality of products distributed Reports from input distributors' associations

Member States, RAAF, ECOWADF, input distributors' association

Axis 2: Promote innovative and sustainable production systems

Outcome 2.1: Research capacities on varieties adapted to climate change are reinforced

Act. 2.1.1: Creation/strengthening of specialized regional centers: maize, rice, manioc, livestock (extension of WAAPP project)

Five regional centers specialized in strategic products are in operation

Activity Reports from the centres ECOWAS Commission, RAAF, ECOWADF, NARS

Act.2.1.2: Introduction of competitive funds for interdisciplinary research with the involvement of POs (regional research centers)

Number of projects financed by the funds

Activity reports from specialized centers

ECOWADF, RAAF, ECOWAS Commission, NARS

Act.2.1.3: Establishment of funds to support research and doctoral training

350 researchers have received a Master's or PhD

Activity reports from specialized centers

ECOWADF, RAAF, ECOWAS Commission, NARS

Outcome 2.2: Village water systems are in

Act. 2.2.1: Support the establishment of pastoral wells in transhumance corridors

Number of pastoral wells drilled in transit countries along transhumance corridors

Activity reports of RAAF, ECOWADAF, Member States and pastoral organizations (RBM)

Member States, RAAF, ECOWADF, POs

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place and functional

Act. 2.2.2: Support the establishment of water points / multi-purpose boreholes

Number of multi-purpose water points drilled in each country

Activity reports of RAAF, ECOWADAF, Member States and POs

Member States, RAAF, ECOWADF, POs

Act. 2.2.3: Support for the implementation of rainwater catchment systems for supplemental irrigation

Number of systems in place in each country

Activity reports of RAAF, Ministries of Agriculture, POs

Member States, ECOWADF, POs, individual farmers

Outcome 2.3: POs' intensification initiatives are supported

Act. 2.3.1: Support for peer exchanges among farmers, inside and outside the region,

Number of exchange visits realized Activity Report and POs, RAAF, and ECOWADF

RAAF, ECOWADF, PO

Act. 2.3.2: Support for technological innovation of POs (competitive funding)

Number of research proposals submitted by POs and funded by the Fund

RAAF, ECOWADF

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172. Detailed budget

Year 1 Year 2 Year 3 Year 4 Year 5 Total340

Axis I: Facilitate farmers' access to inputs

240Outcome 1.1: Appropriate

mechanisms for financing access to inputs and livestock feed are established and operational

60Support Member States implement instruments to manage risk related to intensification (agricultural insurance)

2 4 4 3 2 15

Harmonize the key interest rates of central banks and interest rate agricultural loans

1,5 3 0,5 - - 5

Support the establishment of guarantee funds by Member States (co-financing the guarantee)

5 10 10 10 5 40

Outcome 1.2: Input voucher programs for vulnerable farmers are implemented

120Formulation, adoption of the eligibility criteria

2,5 2,5 - - - 5

Establish of funds and co-financing mechanisms for vouchers

10 20 30 30 10 100

Establishment of a capacity building fund for POs and local authorities to manage vouchers

5 5 2 2 1 15

Outcome 1.3: Network of 60

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input distributors is developed and professionalized

Support for implementation of legislation

2,5 2 0,5 - - 5

Support for professionalization (training on quality management and efficient use of inputs, business management)

5 5 3 2 - 15

Raise awareness on national and regional regulations)

1 1 1 1 1 5

Support to finance investments and working capital

5 10 10 5 5 35

Axis 2: Promote innovative and sustainable production systems

Outcome 2.1: Research capacities on varieties adapted to climate change are reinforced

40Creation/strengthening of specialized regional centers: maize, rice, manioc, livestock (extension of WAAPP project)

4 5 2 2 2 15

Introduction of competitive funds for interdisciplinary research with the involvement of POs (regional research centers)

2 3 3 5 2 15

Establishment of funds to support research and doctoral training

1 2 2 2 3 10

Outcome 2.2: Village water systems are in place and functional

35Support for establishment of pastoral wells in transhumance corridors

2 3 5 3 2 15

38

Support the establishment of water points / multi-purpose boreholes

2 2 2 2 2 10

Support for the implementation of rainwater catchment systems for supplemental irrigation

1 3 2 2 2 10

Outcome 2.3: POs' intensification initiatives are supported.

25Support peer exchanges among farmers, inside and outside the region,

1 1 1 1 1 5

Support for technological innovation of POs (competitive funding)

2 5 5 5 3 20

Program management 0,5 0,5 0,5 0,5 0,5 2,5

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