Implementation of Advancing African AgricultureAn IFAD Perspective

Mohamed BéavoguiDirector

Western and Central Africa Division, IFAD

Outline

• Regional context

• IFAD in Africa at a glance

3. Increasing development effectiveness in IFAD Programme

4. IFAD Strategic Framework

5. Translating Strategic Framework and Action Plan into operations• Support to policy engagement• Support to Institution’s strengthening• Knowledge Management and Innovation

6. Partnership

1. Regional Context

Regional Context: Diversity and Challenges• 45 IFAD member countries in SSA (34 borrowers)

• Many countries in conflict / political instability (WCA:20%)

• Mixed impacts of agricultural and trade policies

• Agriculture remains the largest economic sector: two thirds of total employment and most export earnings

• Smallholder family farms with diverse agricultural and livelihood activities dominate 80% agriculture sector

• Despite rapid urbanisation, poverty remains mainly rural

• > 50% population & 70% of poor live in rural area

• Rural poor disconnected from remunerative markets

• Limited access to natural resources, technology, credit

• Population growth, rapid urbanisation, rural-urban migration: opportunities and challenges for smallholder access to markets

1. Regional Context (continued)

Regional context: Opportunities

• Increasing democratisation (local and national) and stronger FOs and CSOs

• Regional integration (e.g. ECOWAS, COMESA)

• Market liberalisation, growing demand in the cities, increasing commodity prices….

• Agribusiness and value chain development: linking smallholders to markets

• Continental initiatives: AU (land); NEPAD (FO support)

• Many successes and innovations – need to scout, share

2. IFAD and Africa

IFAD is the third largest multilateral source of ODA for agriculture in Africa and a key contributor to rural development in Africa

Source: OECD, 2007

Agriculture

(USD millions)

Rural Development

(USD millions)

Total

(USD millions)

United States 978.8 154.8 1133.5

AfDB 1023.0 493.0 1516.0

IFAD 726.7 675.7 1402.4

EC 651.5 486.2 1137.8

IDA 1224.8 462.9 1707.7

2. IFAD and Africa (continued)

IFAD’s investment in African agriculture expanded in the last 10 years – while other donor assistance to the sector declined

2006-07

Sub-Saharan Africa• Number of Projects as at 30 June 96

• Lending portfolio as at 30 June (IFAD financing) (USD m) 1 388

• Co-financing mobilised from IFIs/ bilateral agencies (USD m) 871

• Co-financing – Government counterpart funds (USD m) 873

• Ongoing grants (large and small) 28.3

3. Increasing Development Effectiveness: IFAD’s Action Plan and Strategic Framework

• Action Plan to increase development effectiveness (2005)

- Increase effectiveness, efficiency and relevance- Organizational change- New policies and procedures to improve the way IFAD does business

• New Results-Based Country Strategic Opportunities Programmes• Targeting Policy• Supervision Policy• Knowledge Management Strategy• Innovation Strategy• New Project Design and Approval Processes• Strategic Framework

4. IFAD’s Strategic Objectives

IFAD’s Strategic Framework (2007-2010) outlines six strategic objectives for IFAD.

To ensure that poor rural people have better and sustainable access to, and have developed the skills and organization they require to take advantage of:

(i) Natural resources (land and water);(ii) Improved agricultural technologies and effective production services;(iii) A broad range of financial services;(iv) Transparent and competitive agricultural input and produce markets;(v) Opportunities for rural off-farm employment and enterprise development;

and

(vi) Local and national policy and programming processes

5. Translating the Action Plan and Strategic Framework into field operations

Two key ways to translate AP and SF into field operations:

• Project and Programme financing and implementation Support

• Support to Policy Engagement, Policy Dialogue and Advice (IFAD-IFPRI PRSP Programme, Hub for Rural Development and Food Security, IFAD/OECD/France Policy Support

5.1 Support to Policy: IFAD-IFPRI Partnership

Goal: help make the PRS an effective framework for reducing rural poverty in the region

Three main components:

(i) Tracking and reporting system (TRS)

(ii) Research and development on key PRSP rural poverty issues and processes

(iii) Capacity-building and dissemination

Coverage: All 15 ECOWAS countries with more intensive studies in 3 countries:

•Ghana•Cameroon•Senegal

iii) Key: Agriculture to be embodied in PRSPs as main instrument to poverty reduction and agricultural development in SSA

5.1 Support to Policy:IFAD/OECD/France Support to African Agriculture

Project (SAAP) (continued)

IFAD/OECD/France Support to African Agriculture Project (2004-2007)

Capitalize upon OECD methods and approaches to the analysis of agricultural policies and their impacts to WCA region

Build capacities in WCA and of governments to undertake policy analysis and develop better informed policies

Three country studies: Cameroon, Mali, Ghana

Need for further work: support African capacities to undertake Public Expenditure Reviews with focus to Agriculture and policy formulation with adapted tools drawing on those used in OECD countries

Continuing partnership: OECD Global Forum on Agriculture to be held in Rome in partnership with IFAD, WB and FAO (November 2007) on Agricultural Development and Poverty Reduction in Africa (results of SAAP to be debated)

5.2 Support to Institution Strengthening

IFAD mandate to support the development of the institutions of the rural poor - FOs, women, youth, indigenous peoples

If agricultural and rural development policies to be owned, need to increase farmer participation and voice in the policy process

IFAD has provided support to FOs to contribute to development of AU/NEPAD’s Comprehensive African Agricultural Development Program (CAADP), will continue at REC, local

IFAD support for tools to foster institutional development (regional conference 08)

Enhancing engagement with the Private sector

But as noted in WDR - Government and public services need to be strengthened to support agriculture and increase national investment in agriculture

5.3 Knowledge Management & Innovation

Knowledge Management and Innovation

New context in Africa requires learning, sharing experiences, innovation IFAD’s Executive Board approved two interlinked strategies:

Knowledge Management (2006) and Innovation (2007)

Knowledge Management

Pillars of Knowledge ManagementL- Strengthening knowledge-sharing and learning processes- Equipping IFAD with a more supportive knowledge-sharing and learning

infrastructure- Fostering partnerships for broader knowledge-sharing and learning- Promoting a supportive knowledge-sharing and learning culture

FIDAfrique: www.fidafrique.net

5.3 Knowledge Management & Innovation (continued)

Innovation

Innovation is recognized as essential to development effectiveness and to strengthening poor rural people’s livelihoods

PILLARS OF INNOVATION- Building IFAD’s innovative capabilities - Nurturing partnership and innovation network- Embedding rigorous innovative processes into business practices - Facilitating a more supportive environment for innovation

Innovation sharing event (regional workshop-fair) late 2008 (with CTA, OECD-SWAC, FIDAfrique WARF, UNIFEM)

6. IFAD’s Approach: Partnership

IFAD works in partnership with a variety of actors to enhance prospects for agriculture and rural development in SSA (CTA example)

IFAD welcomes new partnerships to reduce rural poverty:- Policy

- Projects and Programmes - KM on / FIDAfrique

- Innovation- etc.

THANK YOU