1 Agriculture and Agri-Business New Strategy, Major Thrusts and Resource Gaps AfDB Partnerships Forum March 2010 Mr. Aly Abou-Sabaa Director, Agriculture.

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Agriculture and Agri-Business

New Strategy, Major Thrusts and Resource Gaps

AfDB Partnerships

Forum March 2010

Mr. Aly Abou-Sabaa

Director, Agriculture and Agro-Industry Department

African Development Bank

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Agriculture Sector Strategy - Pillars and Areas of Intervention

Institution & CapacityBuilding

Ministry of AgricultureMonitoring and EvaluationProject PreparationActivitiesSoftware InterventionsPolicy Formulation andprogramming, Researchand Development

Renewable NaturalResources Management

Renewable NaturalResources Management(include Forestry)Climate Change(mitigation andadaptation)

Cross Cutting

GenderEnvironmentClimate ChangeKnowledge Generation

Agricultural Infrastructure

Rural and CommunityRoadsMarket / StorageInfrastructure andAgro-ProcessingAgriculture Water andWater StorageOther Infrastructure(support livestock,fisheries, etc

Sustainable FoodSecurity through

IncreasedAgriculturalProductivity

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Key Agricultural Sector Performance Indicators by 2014

Outputs Outcomes1. 10,000 KM of rural

roads built and/or rehabilitated

4. 50,000 people trained in good agricultural practices

1. Yield Increase: 15-20%

2. 500,000 Ha of land under improved water management**

5. Twenty five percent decrease in agricultural land and forests degraded

2. Reduction in post harvest losses 3% over six years (0.5% per year)

3. 8.5 billion Cubic meters of water mobilized for multiple purpose development**

6. Seventy five percent of Bank agricultural operations are climate proofed

3. Production increase: 5% per annum

**Prepared and secured necessary investments by 2014 for operations to develop 500,000 ha under improved water management and increase water storage capacity by at least 8.5 billion cubic meters.

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Indicative Pipeline of Projects / Programs for Financing, 2010 - 14

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Agriculture Water Development and Water Storage Enhancement- Business Plan Targets and Focus Area (2008-2013)

Agricultural Water Development. Develop 500, 000 ha including: (a) new areas under full control of water, (b) rehabilitation and

modernization of existing schemes, and (c) development of Community/Private driven Small-Scale Irrigation

Water Storage Enhancement: Develop infrastructure to increase water storage capacity in Africa by at least 1% (8.5 BCM) for multi-purpose use. This will secure additional water capacity for hydro power generation,

sustainable water supply and irrigation development, as well as helping mitigate climate change impact.

Institutional Support and Project Preparation Studies:

including capacity building activities, policy formulation and the identification and preparation of operations in support of AWM and water storage enhancement.

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Business Plan-Work program 2008-2013(UA)

–———— ADF+ADB ————–

Business plan components Total AfDB share

Financing gap (%)

2008-2010

(a) Improved AWM 1,117 468 58

(b) Storage enhancement 1,816 322 82

(c) Institutional support and project preparation studies

25 25

Sub-total (2008-2010) (a+b+c) 2,958 815 72

2011-2013

(d) Improved AWM 1,842 667 64

(e) Storage enhancement 1,031 260 75

(f) Institutional support and project preparation studies

130 130

Sub-total (2011-2013) (d+e+f) 3,419 1,327 61

2008-2013

Improved AWM (a+d) 2,958 1,134

Storage Enhancement (b+e) 2,847 582

Institutional support and project preparation studies (c+f)

155 155

Total (2008-2013) (a+b+c+d+e+f) 5,960 1,871

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Post Harvest Loss Reduction Program

COMPONENTS Brief DescriptionEstimated Cost (US$ millions)

Policy formulation and institutional strengthening

Capacity building for agricultural ministries 100

Rural infrastructureFeeder roads, dry and cold storage, markets and rural energy

1,142

Technologies for PHL reduction and value addition

Preservation and agro-processing technologies 300

Market development

Value chain development, farmer groups, business development services, market information systems and grades and standards

150

TOTAL 1,692

The PHLP is a five-year programme (2010-2014) with a total indicative cost US$ 1,692 million

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Capacity Building Program

Objective: Increase capacity of Agricultural institutions on a sustainable basis for effective and results-oriented execution and management of agricultural development interventions consistent with the AgSS (i.e. focus on capacity for agricultural water and agri-business infrastructure development; renewable natural resources management; climate change adaptation)

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Capacity Building Program (cont’d)

The 5-year Rolling Program starting 2012: Support to Human resources Development in relevant

institutions Institutional Development/Organisational

Strengthening

Program Cost & Financing (2012 – 2016):

Total Estimated Cost – UA 265 million

ADF Financing - UA 100 million

Financing Gap - UA 165 million

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Africa Fertiliser Financing Mechanism (AFFM)

The AFFM will:

• Assist RMCs in increasing Agriculture Productivity within the context of MDGs; and

• Create an enabling environment for mobilizing investment needed to increase fertilizes use from current average of 8 to 50 Kg/Ha by 2015, target set by the Abuja Summit, 2006.

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(AFFM –Needs)A. Immediate: US$ 9.85 million to ensure that the AFFM Fund is

effective and operational.

B. Immediate: TA/bilateral grant funding to assist in undertaking the following studies:

– Feasibility study for the Africa Fertilizer Procurement facility (West and Central Africa)

– Feasibility study on establishment of regional blending and bagging facilities in each region (West Africa, Central Africa, East and Southern Africa)

– Feasibility study on establishment of regional fertilizer production plants (West Africa, Central Africa, East and Southern Africa)

C. TA staffing needs: Fertilizer Manufacturing Engineer, Financial Analyst, Investment Expert, Fertilizer Market Expert, M&E Specialist, and Communication Officer.

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Congo Basin Trust Fund (CBFF)CBF, launched in London, June 2008, intendeds to:

• Improve food security and the livelihoods of the population, alleviate poverty and address climate change challenges by reducing the rate of deforestation in the Congo Basin.

• The Fund supported mainly by the UK and Norway (initial contribution of US$ 155 million) will be used over a ten-year agreement period up to 2018, to finance Central African Forests Commission (COMIFAC)’s Action-Plan in different strategic areas aimed at conserving the Congo Basin rainforest.

• CBFF supports the Congo Basin Countries in their implementation of REDD+ policies.

Needs:• TA and Secondments to support the CBFF

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OSAN CONTACTSMr. Aly Abou-SabaaDirector, Agriculture and Agro-Industry

DepartmentTel: +216-71 10 2037; Email: a.abou-

[email protected]. Chiji OjukwuManager, Agriculture & Agro-Industry 1

Division (North and East regions)Tel: +216-71 10 2296’ Email:

[email protected]. D. KeitaManager, Agriculture & Agro-Industry 2

Division (West Region)Tel: +216 71 10 2086; Email:

[email protected]. J. MwangiManager, Agriculture & Agro-Industry

2 Division (Central and South Regions)

Tel: +216 71 10 2357; Email: [email protected]

Mr. K. JohmManager, Natural Resources and

Environmental Management DivisionTel: +216 71 10 2143; Email:

[email protected]

Mr. T. Bedingar

Lead Expert, Agriculture Portfolio, Agriculture and Agro-Industry Department

Tel: +216-71 10 2279; Email: [email protected]

Mr. B. Kanu

Lead Expert, Initiatives and collaborative programs, Agriculture & Agro-Industry

Tel: +216-71 10 2448; Email: [email protected]

Mr. H. Kandil

Chief Water Resources Engineer, Agriculture & Agro-Industry

Tel: +216-71 10 2275; Email: [email protected]