African Investments in Science, Technology and Agricultural Development MElissa Brown, World bank

AFRICAN INVESTMENTS IN SCIENCE, TECHNOLOGY AND AGRICULTURAL DEVELOPMENT

MELISSA BROWN, WORLD BANKAIARD Annual Conference, June 6, 2011

Presentation Outline

CAADP – A Framework for Country Led Initiatives and Investments

Overview of World Bank Support to Investments in Agriculture in Africa

Investments in Science, Technology and Agricultural Development in Africa

CAADP - A FRAMEWORK FOR COUNTRY LED INITIATIVES AND INVESTMENTS

What is CAADP?

The Comprehensive Africa Agricultural Development Program

Not a program – a Framework An African framework - NEPAD/AU vision and strategy for

agriculture CAADP calls for:

Renewed focus on the importance of agriculture Need for improved strategies, plans, programs, and policies More investment in agriculture African Ownership

CAADP Targets and Principles

Targets: 6% growth in agriculture and allocation of 10% of government budget to agriculture

Guiding Principles: Country-led Comprehensive - cross-sector/ cross-government Multi-stakeholder engagement - CSOs, Private sector, Govt,

Farmers Evidence-based planning Peer review, mutual accountability and M&E Regional complementarity

Pillars and Frameworks

Pillar 1 – Land and Water Management

Pillar 2 – Markets and Infrastructure

Pillar 3 – Food Security

Pillar 4 – Agricultural Productivity

CAADP Encourages:Countries to launch ….

….. “Planning Processes” …..

….. Informed by CAADP Principles and Tools …..

….. leading to …..

More Effective Scaled-Up Programs

Better Policies

Growth

Poverty Reduction

CAADP is :

a way to harness continental resources to support national and regional planning and investments

(capacity building!)

WORLD BANK SUPPORT FOR AFRICAN AGRICULTURE

Context - African Agriculture since 2009

Global food (and fertilizer) prices spikes in 2008 & 2010 threaten the poor, and social stability, offer potential

gains to farmers Refocused SSA Governments

investing in agriculture, but politicized with over-reliance on subsidies, and weak investment programs

CAADP platform has energized definition of country-owned programs, raised expectations for

external financing, investment plans of variable quality, process transactions-intensive

Donor flows Commitments high (Aquila), delivery lags (GAFSP finance, other)?

Private sector interest and finance positive FDI trends (but data are poor), and second-generation policy

frameworks (sector taxation->regulation, investment climate) still constrain Outcomes

Fragile gains in SSA on sector GDP, land and labor productivity, and yield trends, but still below targets and insufficiently widespread across countries

Progress: Sector Performance

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

1000

1050

1100

1150

1200

1250Cereal Yields (kg/ha)5 yr moving average

2000-04 2001-05 2002-06 2003-07 2004-20080.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Real Agricultural GDP (28 countries value

weighted)

4

85

3

4

# of countries > 5%/yr

Sources: ReSAKSS Comprehensive Monitoring and Evaluation Report, April 2010

2009 Scale-Up Strategy Goal

Higher SSA agriculture sectors’ growth and improved food security

Current Strategy Focus Double lending over 2009-2010 Four pillars – land and water management, agricultural

markets and infrastructure, food security and vulnerability, agriculture technology

Horizontal beams – sector-wide policies, gender, climate change

Strengthen the CAADP process How

Instrument innovation Country-owned sector programs Donor coordination Regional programs

WB Scale-Up in Financing SSA Agriculture (million USD)

FY08 FY09 FY10 FY11 FY12

TOTAL 464 1,684 847 1,450 797

IDA Commitment 434 1,494 754 1,273 783

Grant 30 190 93 177 14

GFRP Funding 10 501 85 20 -

Building pipeline from FY12 a priority with IDA16 increase.

Pillar Africa CA EA SA WA Total

Pillar 1 10.12 9.30 283.12 55.39 143.82 501.74

Pillar 2 10.70 58.55 80.29 94.50 356.94 600.98

Pillar 3 6.50 401.96 27.77 50.14 486.36

Pillar 4 Aggregate 76.95 48.62 365.81 90.32 328.82 910.52

Cross-cutting 41.81 11.74 95.69 12.80 30.56 192.60

TOTAL 139.59 156.90 1,478.81 333.75 1,259.42 3,368.46

WB Portfolio – SSA Agriculture(US$ Millions)

LOOKING FORWARD: ALIGNMENT WITH NEW AFRICA STRATEGY Pillars and Foundation

Competitiveness and Employment, Vulnerability and Resilience, and Governance and Public Sector Capacity provide a good framework for addressing the sector challenges

Partnerships With governments, private sector, development actors Scale and scope of the problem demands and use our catalytic power and

expertise to leverage other partners Learn from and build on existing partnerships (CAADP, AfdB, AUC, Bilateral,

civil society, etc) Mobilize partners to deepen and accelerate support to Africa Agriculture

(crowding in private and other public resources)Knowledge

Connector of knowledge in Agriculture and Agri –business development Strengthened impact of AAA South-South partnerships (e.g. Brazil)

Political economy analysis of incentives facing actors in reform processFinance

Leverage WB , specially IDA resources, Development Partners, Private sector and PPP, Domestic resource mobilization

Page 15

Looking Forward:Strengthening the CAADP Pillars

Continued Strategic Focus Four main pillars: land and water management,

agricultural markets and infrastructure, food security and vulnerability, agriculture technology

Horizontal beams – policies, gender, climate change Main Adjustments

Land and water operations implementation – updating the irrigation business plan

Agribusiness platform – for better leveraging of private investment and increased participation

Public expenditure policy engagement – cross-pillar program strengthening through CAADP MDTF and BMGF trust fund for analytical work (9 countries underway in 2011)

Pillar I Support in the Bank Land

Sustainable land management – rainfed land and pasture management; TerrAfrica

Investing in land administration Titling, registration and cadastral capacity for small and large

farm enterprises Innovating in community mapping and land taxation

Engaging on policies for responsible FDI in land for agriculture, linked to land administration capacity

Water Irrigation business plan – mid-term review just completed Scope exists for further scale-up, better if projects avoid small

irrigation components Climate change impact on priorities

Water management Soil carbon

Good practice projects Ghana Land Administration Zambia Irrigation Development and Support Ethiopia Irrigation and Drainage

Pillar II Support in the Bank Diversification, value chain deepening

extensive analytical foundations and piloting, now moving into operational work

Private investment flows – mobilizing and harnessing; PPP Program integration

Agribusiness Platform (AR, FP, IFC, with infrastructure) Piloting integrated project designs – four pipeline projects (Ghana,

Burkina Faso, Senegal, Malawi) Increasing attention to safeguards: palm oil, GMOs, monoculture

pressure on biodiversity Africa Union initiative

Focusing on scale-up Still developing technical tools

Good practice projects Ethiopia Agricultural Growth Program Nigeria Commercial Agriculture Mali Agricultural Competitiveness and Diversification

Pillar III Support in the Bank

GFRP – resources mostly allocated; shifting to longer-term impacts on food production productivity and marketing efficiency

Community-Driven Development Projects Food security for the very vulnerable Communities with declining resource bases Maritania, Chad, Niger, Madagascar (PSDR), Nigeria (FADAMA) Evolution: away from too-open menu for broad livelihoods, sharper

focus on agriculture and more access to better techniques Disaster Dimension

Early warning systems for drought (Kenya, Ethiopia, Malawi, Madagascar)

Climate-related vulnerabilities and adaptive responses Productive Safety Nets

Opportunities for complementarity with HD, but better role focus (who does what) possible on food security

Good practice projects Mauritania Community-Based Rural Development FADAMA Development Project III Madagascar Rural Development Support

Looking Forward: Emerging Issues

Private investment flows Tracking - household, domestic commercial, FDI Facilitating – “crowding in” with public investment, and with

business environment Link to employment generation

Capturing climate change finance for agriculture Main opportunity is soil carbon, following on the REDD path

M/E and statistics agenda Investment in sector capacity within national statistical strategies;

key external partners are FAO and BMGF Mechanization

High political profile but still seeking workable strategies. Donor tractor aid poorly used, and private leasing services not taking off.

Looking Forward : Partnership and Working with CAADP Commitment to the framework Prudence on the transactions costs, and managing

expectations Build on Country Compact progress Strengthen the technical review process of national

investment plans Expand on public expenditure analysis for fact-based

consensus-building Emphasize the need to “crowd in” responsible private

investment through public goods and services provision Expand investment at regional level Monitoring and evaluation

CAADP PILLAR IV

Evidence Summit - Conclusions from Agricultural Technology Adoption and Productivity Growth in Sub-Saharan Africa Presentation (D Byerlee):

Little evidence of a productivity take off Significant adoption but often small and localized Should not focus just on food staple technologies

Cash crops, horticulture, livestock, fish Not just yields but labor productivity

Labor saving technologies? Diversity of conditions and technologies

No ‘silver bullet’ or transformative technologies Focus should be on:

Investing in generating more and better technologies and

Enabling policies and institutions for adoption

The Productivity Challenge

Capacity Constraints within Science and Technology systems

Africa’s technology generation and dissemination systems often face:

Weak human capital Poor facilities Low levels of overall investment

Leading to High levels of fragmentation /isolation among

practitioners Financing spread over wide range of priorities-

Africa’s 2008 Ag. R&D investment totaled $1.7 billion - equal to Brazil - but spread over more than twice as many scientists (ASTI)

CAADP Pillar IV Advocates: Renewing the ability of ag. technology systems to efficiently and

effectively generate and adapt new knowledge Technology delivery systems that rapidly bring in innovations to

farmers and agribusiness Enhanced rate of adoption of technologies

Through: Larger investments in agricultural research, extension and

education systems Institutional reforms that increase efficiency and effectiveness of

research and extension spending Harmonization of external support

FAAP – Implementation of Pillar IV

Framework for Africa Agricultural Productivity (FAAP) - Guiding Document

FAAP is a guide but also an “agreement” FAAP provides guiding principles on best

practice to improve performance of agriculture technology systems

The adoption of FAAP has allowed a broad group of development partners to start scaling up support and presents an opportunity for harmonization of that support

FAAP Principles Empowerment of end-users Planned subsidiarity Pluralism in the delivery of agricultural

research, extension, and training services Integration of agricultural research with

extension services, the private sector, training, capacity building, and education programmes

Introduction of cost sharing with end users Integration of gender considerations at all

levels

FAAP Calls for:

Scaling up investments in national and regional approaches

Pillar IV Support within the Bank

Research projectso Regional projects designed to achieve critical mass and facilitate spillover

take-up of resultso National system support – rebuilding, while forcing the link to

dissemination and extension; no free-standing agricultural research projects

o Spill-in through South-South partnerships (EMBRAPA and innovation grants) Extension

o Designs are tailored to constraints e.g. demand (Uganda, Rwanda), supply (Ethiopia), effective diffusion from research (WAAPP), and input/irrigation related (Nigeria Commercial Agric and FADAMA; and WUA elsewhere)

Leveraging resources - large MDTF Biosafety capacity

o Regulatory underpinnings for new seed technologies; national and regional capacity being built

Climate change - impacting research/extension priorities Good practice projects

o West/East Africa Agriculture Productivity Projectso West Africa Regional Biosafety Project

Breakdown of Pillar 4 Column1

Pillar 4 research 274.52

Pillar 4 extension 625.41

Pillar 4 education 10.89

Pillar 4 Aggregate($millions) 910.52

WB Commitments to Pillar 4(US$ Millions)

Regional Agricultural Productivity Programs: Core Approach Shared efforts leading to greater efficiency

– increased specialization Development of critical mass Taking advantage of existing capacity -

development of existing sub-regional centers of excellence

Opportunities center on shared themes that have sub regional importance identified by the participating countries

CORAF WAAPP

ASARECA

EAAPP

CCARDESA

SAAPP

Regional Agricultural Productivity Programs: Close Linkages to SROs

New Initiatives in Agricultural Education and Training Working Group - RUFORUM, ANAFE,

FARA, NPCA

IDA Regional Project on Tertiary Agricultural Education

MDTF to support university partnerships – (USAID, France, DANIDA, others?)

Looking Forward

Economic Development Perspective Need to Scale-up Pillar 4 investments – long-term

payoff Need to do this through building African

institutions Invest at both regional and country level CAADP provides foundation

Development Community considerations Need to demonstrate document impact – short

term gains and MDG gains Need to demonstrate efficiency in use of funds

Thank you !