Agriculture as engine of growth for transforming in Sub-Saharan Africa Dr. Freddie Kwesiga Division Manager, West & Central Africa African Development.

Agriculture as engine of growth for transforming in Sub-Saharan Africa

Dr. Freddie KwesigaDivision Manager, West & Central Africa

African Development Bank([email protected])

Presentation to the Earth Institute Global Classroom

Outline of presentation

Background: the role of the agricultural sector in the development of Sub-Saharan Africa

A systemic approach to transforming African agriculture

From islands of success to continental impact: Scaling up and out through strengthening innovation capacity

The main Challenge for Sub Saharan Africa: Poverty!

Source: World Bank 2004

• Approximately 180m Africans live on less than US$1 each day

• Livelihoods are mainly based on exploitation of natural resources—principally agriculture.

SSA and the MDGs

Source: World Bank, 2005

Sub-Saharan Africa may miss the 2015 target for MDG 1 if business as usual approach maintained

Agriculture is key in reversing this trend, we mst not loose focus on this sector.

MDG Targe

ts

Where are the poor and the hungry?

Mainly in rural areas and reliant on rain-fed, subsistence agriculture

Unable to grow or buy enough food to meet their dietary requirements

Highly vulnerable to risks beyond their control

Importance of agriculture in economic growth

Agriculture along with education and health and infrastructure were top agenda at the dawn of independence for most SSA 50 years agoSelf reliance in food production was keyAgriculture remains the main source of livelihood for the majority of Africans, providing: 35% of GDP 70% of employment 40% of exports

Today, low agricultural productivity and degradation of natural resources are accelerating and reinforcing poverty and food insecurity.

Diversity of farming systems in Sub-Saharan Africa

Given this diversity,

recommendations

are indicative, not

prescriptive – not

“one-size-fits-all,”

but a menu of

choices from which

to develop integrated

interventions

Agricultural production system

Characteristics:

Traditional, subsistence oriented – agriculture as a way of life not 4 market.

Largely rainfed, low soil fertility, low input use, little mechanization,

Complex farming systems – mixed crops, livestock

In remote villages, far away from research and extension, based on farmer knowledge.

Women perform the majority of agricultural tasks, with limited access to extension, credit value addition, market)

Out-migration of men and youth from to urban areas

Population growth pressure on land & natural resource base

HIV/AIDS, malaria & other pandemic diseases impacts labor productivity

Low input, low output.

Vicious circle underlying decline in African farmers’ livelihoods

Unfavourable economic returns to agricultural production

Unsustainable agricultural practices

Vicious circle underlying decline in African farmers’ livelihoods

The vicious circle must be broken!

HOW?

Cereal Yield growth among low-income countries

(Sachs, 2005)

Countries that began with low yields in 1980 tended to experience economic decline between 1980 and 2000

Realities of African Agriculture

Low Agricultural productivity, reflects the failure to find and adopt more productive farming technologies and markets.

New technologies & markets helped farmers in Asia and Latin America during the green revolution. Farmers in Africa did not participate in this technological upgrade.

The inability of African farmers to access more productive technologies and markets means more destructive methods unable to boost production in pace with population growth.

One example is shortening fallow periods, a practice that mines soils and can eventually lead to actual decline in crop yields per hectare.

need for systematic diagnosis…

Fast growing population

Long dry season, droughts

Deforestation due to expansion of agriculture

Shortened fallow periods

Lack of technologies & access to inputs

Low soil fertility

Poor quantity quality fodderOvergrazing

Labour constraints

Poverty and Food insecurity

Low productivity

Poor markets and policies

Weed infestation

Causal Flow Diagram on household poverty & food security problems in Eastern Zambia (1988)

Realities of ag sector in SSA

Lack of access to technology & inputs

Inadequate infrastructure and land tenure arrangements

Weak links to markets, lack of market information & incentives

Weak private sector (entrepreneurs exist, build on these)

Underinvestment in Health, education and research; ineffective R&D models; weak and unaccountable institutions

Harmful policies (SAP)

Effects of globalization

Increasing land productivity through agroforestry

Grass fallow

Improved yields

NPK Fertilizer

Improved fallow

continuous cropping

Miombo

Agro-Agro-ForestrForestr

y y systemsystem

ss

Clearing

Poor yields

Bundle AF with other optionsFarmers need options, Identify entry points

Inorganic Fertilizers

Water

Two routes to ag production growth –

area vs. yield growth (index, 1961=100)

Source: Henao & Baanante (IFDC). African Fertilizer Summit, Abuja, June 2006. http://www.africafertilizersummit.org/Background_Papers/03%20Henao%20and%20Baanante--Agricultural%20Production.pdf

Ag production increases in South Asia due to yield (productivity) increases (3.6% p.a.);very slight increase in area

Agricultural production growth in Sub-Saharan Africa, 1961-2001: increase due largely to area growth (doubled), only 1% annual increase in yields

Cost of Fertilizer in Europe (FOB): US$ 90 (Sanchez, 2001)

Extending th

e area

under

susta

inable

land m

anag

emen

t

and re

liable

water a

vaila

bility

Agricultural research, technology uptake and adoption

Increasing food supply, reducing

hunger, and strengthening national

and regional food security

Improving infrastructure and

trade-related capacities for market access

Reversing the decline of agriculture requires implementation of CAADP

Interventions should be systemicsystemic in turn calls for partnership partnership and institutional mechanismsand institutional mechanisms for working in this model

What are the relevant sub-systems that interact in SSA

agriculture?

Global political- economic

system

Health and educationsystems

Natural resources/biophysicalenvironmt

Infra-structure

Private sector

for value chain

Research and University Knowledge

systems

Policies and

markets

Building Infrastructure is key to the success of agric

sector..

Urgent need to end the drudgery of collecting water & fuel women’s burden

Urgent need for more and better:

• Transportation infrastructure: roads, waterways ports, railways, research, education, health…

• Investments in water systems: dams, large and small-scale irrigation systems, wells and most of all; water harvesting and storage at farm level

• Provision of fuel and energy ( e.g solar powered)in rural areas

• Communications (use of IT is key, see cellphones)

• Investments in agro-industries (processing of agricultural products)

Agriculture in SSA could gain more ground if ….

Challenges Responses

Farmers produce what market requires (product mix, quality)

Unavailability of quality seed

Very low use of fertilizer (Africa averages 12kg/ha, vs. 150Kg/ha in India and > 400kg/ha in Japan)

Lack of (timely) credit

High post-harvest losses

Little processing of production (value-adding activities) in rural areas

High costs of transport to urban markets

Improve access to market informa-tion, quality standards, etc. (e.g., market info delivery via cell phone)

Partnerships emerging, (AATF, CGIAR, PVT sector)

Increase availability of fertilizer, engage private sector (stockists) in distribution(AFFM at AfDB, GR)

microfinance, esp. for womenIncrease investments in post-harvest storage and processing activities (machinery, training), incl. role for private sector

roads, farmer transportation cooperatives, regional markets

African agriculture has registered

some successesVarietal improvements (NERICA rice mosaic resistant cassava, IR maize, etc.)

Increased use of inputs (soil fertility, fodder, pest management)

Improved water capture and use (irrigation)

Infrastructure (roads, dams) to support the above

However, these have not had broad impact due to:

• Poor linkages between production, processing, trade/marketing and consumption( value chain)

• Inadequate human and financial resources

• Weak institutional frameworks, including lack of partnerships for addressing these issues

Local variety Experimental

Signs of hope: Greater input availability

Increasing the availability of inputs recognized as essential to jump-starting agricultural growth, e.g.: African Fertilizer Summit (Abuja 2006) AGRA initiative (Gates & Rockefeller Foundation

Alliance for a Green Revolution for Africa) Millennium Villages initiative, Malawi story Growth of private sector seed companies AfDB African Water and Fertilizer Facilities Initiatives supporting micro-credit, micro-

financing ( drawing from Grameen Bank) AfDB, World Bank investments in

infrastructure (roads, irrigation systems, markets)

CAADP agenda

Signs of hope: IT, private sector

Emergence of IT (internet, cell phones) breaks down knowledge and information barriers (but more is needed to reduce costs and improve available information)Gradual increases in private sector involvement in African agriculture (recognize and empower Private sector from community perspective such as shopkeepers, transporters in value chains need to become more profitable, better linkages to markets for this to take off)

Successful models as example ofinnovation system initiative

EXAMPLE 1: outgrower schemes are transferring knowledge and income sources to farmers in Mozambique and many other African countries.

innovation systems

EXAMPLE 2: Agroforestry/INRM to improve livelihoods o.f Kenyan Milk producers for the Nairobi Market

innovation systems

EXAMPLE 3: Organizing women farmers to improve access to inputs and markets in Malawi and Western Kenya. Fertilizers sold in small affordable packets ( like salt, sugar, paraffin etc)

Scaling up & out of successful innovations

Documenting success stories and farmer innovations

Understanding farmer practices of technology adaptation

Perfecting use of extrapo-lation domains (GIS)

Strengthening knowledge sharing processes

Fostering enabling environments (policies, market incentives, etc.)

Source: Douthwaite (2003), IIRR (2000)

Conclusions (1)

Our goal must be to make African agricultural at profitable, and pleasurable – to attract the youth, create jobs. This calls for renewed investment and focus on Africa’s rural poor

“Putting farmers first” – empower farmers to drive the development process

Reaching Africa’s women farmers with inputs & technology, and improving their education, health, economic returns and empowerment, are key drivers to the development process

Major investments in sustainable soil and water management are required, especially in light of climate change

Conclusions (2)

More value-adding activities need to be created at the village level – to generate more jobs and stem out-migration of Africa’s rural youth.

Partnerships outside agric sector are key

Slowing population growth and improving the skills & health and education of rural people are essential for sustainable improvements in rural livelihoods

Interventions must be grounded in a systems approach and long term planning

Good science and good policy, good governance must underlie all our efforts.

Thank you for your attention