Key drivers of agricultural transformation in Africa:what role for farmers?

Key drivers of agricultural transformation in Africa:

what role for farmers?

http://brusselsbriefings.net

• Mots de bienvenue

Elisabeth Atangana, Présidente, PROPAC

Ouverture/opening

• CTA

• PAFO

• AUC

• Minader

Envisioning the future of African agriculture and the renewed role of farmer’s

organizations

3-5 December 2013, Yaoundé, Cameroun

 http://acpbriefings.net

• No country has been able to sustain a rapid transition out of poverty without raising agricultural productivity

• Where agricultural productivity has grown slowly, as in many parts of SSA, non-farm activities have also tended to grow slowly

• Agricultural growth has been the precursor to industrial growth in Europe and Asia

In Asia 3 preconditions for increased growth

and reduced poverty:

• Macroeconomic stability: low inflation, currency overvaluation

• Economic freedom for farmers and entrepreneurs

• Pro-poor public spending on agriculture, public services, rural infrastructure

• Agricultural transformation taking place in a challenging context: CC, impact of the food, energy, and financial crises, unsustainable use of natural resources

• Net food importer: 10% in 1994, 30% now • 6% arable land irrigated against 22% in the

world on average (2009); 17 kg fertilizer unit per ha (222 kg in Asia and 120 Kg in world average) CAADP

• Agriculture isolated from other sectors

Much higher real prices are also expected to prevail for the two key inputs to agriculture mentioned earlier, namely energy and fertilizers. Energy prices are now 250 % higher than in 2000, though by 2020 they are expected to drop back to levels about 175 % higher than in 2000. Fertilizer prices, now 170 % higher than in 1990 and 2000, are expected to drop to a level about 80 % higher than in 2000.

• The double challenge:

– Raising productivity and positioning ‘wealth creation’ with inclusiveness

– Diversifying into higher value goods within and outside agriculture

• Determining factors:– Policies– Markets (Domestic & regional)– Finance– Human assets and knowledge

Agriculture key in SSA economies

• ... Yet new opportunities: renewable energy, provision of environmental services, renewed focus on food production, new non-farm rural jobs, more opportunities offered by ICT’s ...

• Agriculture continues to be the main source of employment (63 % of rural household income in Africa, 62 % in Asia, 50 % in Europe and 56 % in LA)- Aging

• Coherent vision & agenda on Agriculture (CAADP); last decade : rapid economic & agricultural growth; improved governance and pubic financing ( 6%)

• Macroeconomic stability, improved investment climates, and agricultural incentives

• Decrease in taxation of agriculture• Largest share of arable land in the world(16%)

.... and largest share of uncultivated arable land (79%) is in Africa

Research competitiveness of African

selected countries highlights the following: • Farm-level production costs in Africa are

competitive•  Africa’s producers are generally competitive

in domestic and regional markets•  In the short- to medium-term, regional

markets offer the most promising opportunities

• Malian cotton production has grown at 9%/year for the past 40 years; Kenyan horticultural exports have increased five-fold since 1975.

• Farmers and researchers have launched hundreds of innovative soil and water-conservation initiatives to contend with declining soil fertility and declining fertilizer subsidies.

• Work by cassava scientists across Africa has countered deadly disease and pests attacks and new opportunities benefiting tens of millions of small farmers and making it one of the continent’s most powerful poverty fighters to date

The cornerstone of broad-based development

ODA < 50% tax revenue

ODA > 50% tax revenue

No available data

Source: Development Centre, based on AEO country survey’s, 2010.

1. WHY PUBLIC RESOURCE MOBILIZATION

Public Resource Mobilisation

Mobilising Africa’s public resources: can and must be achieved

Median

Average

Source: Development Centre, based on AEO country survey’s, 2010.

2. SOME STYLISED FACTS

Demonstrate the economic value of agriculture to the policy makers – also critical to attract youth employment in farming

Farmers to generate and co-generate data in support of this value

Need to target the African consumer in a more efficient way and allocate sensitisation budgets within FOs. Scope for PPPs alliances

Analysing the drivers of successes Changing food demand and supply

patterns are expected to lead to more South–South trade, boosting opportunities in domestic and regional markets.

Further exchange on best practices (study tours…). 2014 Year of family farming could be an opportunity

The potential of domestic and regional markets is demonstrated and can allow import substitution & re-conquer markets

Managing duality in agriculture as a strength (small-scale and agribusiness) and leveraging the strengths of both– More agribusiness and financing fora needed

Stimulating the growth of rural towns and intermediate cities and opportunities to feed growing urban centres

• Formal education in agriculture is still low and knowledge transfer is a problem

• Farmer’s driven research and increased access to quality data (indigenous scientific capacity to generate new technology)

• Closing the gender gap in agriculture– Demonstrating the gains – Strengthening women farmer groups

Building knowledge base and knowledge management skills

Developing formal learning and evaluation mechanisms at FOs level

Increase productivity through availability & use of high-tech research (high-yielding seeds, fertilisers…) to achieve the CAADP

target fertilizer consumption of 50kg/ha by 2015

• Leveraging agribusiness potential and demonstrating better value for money

• Links to innovative and inclusive agricultural value chain

• Address post-harvest losses (training in better harvesting methods, transport, storage and processing)