WIM SIMONSE, WOORD EN DAAD LAURENT STRAVATO, IFC #FABFORUM

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1 EFFICIENT WATER USE IN IRRIGATION WIM SIMONSE, WOORD EN DAAD LAURENT STRAVATO, IFC #FABFORUM

2 DROPS4CROPS Improvement of the water use for the production of onions and potatoes as income source for farmers in Northern Burkina Faso 2

3 Partnership PPP DREA-Nord DRAAH-Nord

4 Key elements in the approach Business development + Integrated Water Resource Management

5 Onion market: Increasing demand and price fluctuation Production October March; marketing: January - June -> strategy: your product or sooner or later on the market 5

6 Watch this video

7 Intervention zone: Yatenga and Zondoma Features: Rainfall: mm/year, but it falls in 4 months More than 40% of potentially irrigated land is unused 102 water reservoirs, but 12 have water year round Dry Sahel climate: good for production and storage of potatoes and onions About 20,000 farmers active in vegetable production Easy access to the area and the willingness of people to work and to change 7

8 Project: Drops4Crops ( ) Results: Increased land use (from 126 to 285 ha) 1600 farmers + training + Irrigation + Increased production (4300 Mt onions 1000 Mt potatoes per year) Increased income (500 Eur/year per farmer) Collaboration funding Activities and resources market Impact Better education, housing, health care, investment in agriculture

9 ASPMY farmers organized in 25 farmer groups - 50% female - Excisting since Strong in marketing ASPMY Association Profressionnelle des Maraîchers de Yatenga 9

10 Different type of farmers

11 1 pump and drip kit = 1000 Eur 1 plot = 350 m 2 1 plot => 1 Mt onions => 250 Eur 1 put = 1000 Eur

12 KPI: Grow over 7 years: 4300 Mt onions and 1000 Mt potatoes per year The harvest 12

13 Business development In 2024: Producers: Turnover of 1,8 M Eur/year; 35% net profit; income increase of 537 Eur/year/producer Investment in irrigation equipment: 1,8 M Eur ASPMY: Development of services: Access to water, market, inputs with moderate margins

14

15 Which issues are being addressed? 1. Wells fall dry -> 675 wells (new or restored) 5 Work packages 2. Reservoirs are drying up -> Improved water resource management and sustainable water balance for 4 basins 3. Too much water is wasted and too heavy work -> Access to drip irrigation and solar pumps 4. Too little ground for those who cultivate -> arrange land use rights for 285 ha 5. Products bring too little money -> better marketing and better prices and financing

16 What does it cost and how do we pay it? 4,2 miljoen Eur over 7 years 2,5 miljoen Eur contribution RVO 1,7 miljoen Eur own contribution 16

17 Challenges ASPMY: business-oriented service provider? Will there be enough water for the production? 17

18 Key elements in the approach Business development + Integrated Water Resource Management

19 Integrated Water Resource Management (IWRM)

20 Growing vegetable market Good income source Scalable model: balanced business model Efficient water use for production Breakthrough of technology (solar pumps) Perspectives 20

21 New partnerships

22 FRANCOPHONE AFRICA BUSINESS FORUM Créer des Partenariats dans les secteurs de l Eau, de l Énergie et de la Logistique * Creating Partnerships in Water, Energy & Logistics #FABFORUM

23 WATER INITIATIVE IN FRANCOPHONE WEST AFRICA IFC S AGRIBUSINESS WATER EFFICIENCY PLATFORM Laurent Stravato FAB Forum NABC November 1 st 2017 Amsterdam

24 What is IFC s Water Initiative Focus? Acronym SSA SA MENA Regional Focus Region Sub-Saharan Africa South Asia Middle East and North Africa IFC is looking for investment agribusiness opportunities with a priority on challenging emerging markets Focus Country Water Efficiency Platform only Not a focus country 24

25 The Sahel: A Challenging Regional Context Climate variability & change High population growth Fragile environ -ment High pressure on natural resources base and low level of agricultural intensification 25

26 JIP: Sahel Irrigation Initiative (SII) DAKAR DECLARATION High Level Forum on Building Resilience and Accelerating Growth in Sahel and West Africa through Scaling up Irrigated Agriculture in the Sahel. OBJECTIVE To increase the irrigated surface in the Sahel from 400,000 ha to 1 million hectares by 2020 PROGRAM PARTNERS World Bank Group Sahelian Governments Comite Inter Etats de la Lutte contre la Secheresse au Sahel FAO, IFAD Agence Francaise de Development African Development Bank 26

27 Context: Massive Scope for Expansion of Irrigation Potential Area (1,000 ha) Irrigated Area (1,000 ha) Target Area (1,000 ha) % of Potential Investment (US$mil) Burkina Faso % 329 Chad % 279 Mali % 3,114 Mauritania % 783 Niger % 852 Senegal % 1,998 TOTAL 1, ,060 53% 7,355 Every Sahelian country uses less than 30% of its irrigation potential, some use less than 10% Equipping new target areas with irrigation presents an estimated USD 6-9 billion market opportunity 27

28 Private Sector Investment is Highly Needed To support expansion by companies into new markets & to enable purchasing of irrigation equipment by farmers along the agri value chain: Inputs / Equipment Suppliers Traders Farmers Food Processors Logistics & Storage Food Retailers Investments & Various Financing sources needed along the entire value chain Leasing companies Insurance companies Banks Microfinance Donor Funded Programs Government Funds Multi/bilateral Organizations Etc. 28

29 JIP: Sahel Irrigation Initiative (SII) World Bank Group Areas of Focus World Bank Group Regional Program delivering a range of regional & country specific interventions: Policy support Investment / Financing Technical Assistance/Advisory Services Enabling Support for Infrastructure Investments Access to Finance Trade & Competitiveness Irrigation to Intensify Agriculture Addressing Land Issues Value Chains Org. & Capacity Building Knowledge Management Public Strategies & Policies 29 29

30 AWE: Sample Projects Niger - Pilot Program for Climate Resilience Burkina Faso Soil / Water Management Crops Horticulture (vegetables) Cotton / Maize / Sorghum Key Features Next Steps Facilitate access to affordable and efficient irrigation equipment to small and medium sized (SME) farmers by: Introducing solar water pumping Introducing drip irrigation technologies and tech. assistance Facilitating credit for purchase of irrigation solutions. Mission to assess new sites for project implementation Support farmer adoption of efficient soil-water management practices / services / technologies in a client s supply chain: Supplementary irrigation from rainwater sources. Increase productivity at farm and supplychain levels. Facilitating credit and financial product development to increase irrigation uptake Next mission scheduled for November. Seeking closer coordination between public private GAFSP project 30

31 RVO IFC: A Collaboration to Move the Needle in Emerging Agri-food Markets The Netherlands is one of the world's largest agrifood exporters thanks to its innovative agri-food technology and savoir faire. The Dutch Ministry of Economy (RVO) is interested in: Expanding Dutch expertise in new markets Integrating climate smart agricultural in business operations. Helping firms to become more climate-resilient. Through IFC s Water Initiative, RVO could explore opportunities and initiative investments in: Francophone West Africa (Sahel Irrigation) Targeted Sectors: Cotton, Onions, Rice, horticultural production Climate-smart equipment /technology: solar irrigation, warehouse, sonic samp drill, among others

32 RVO-IFC: Potential Collaboration to Develop the Senegalese Onion Sector Senegal is importing large volumes of onions 99% from the Netherlands (99%) during the September- March period. Leveraging that opportunity led to a joint RVO - IFC roundtable on onion sector development (March 2017). There is potential for developing the market and link it to an investment opportunity with a Multinational company: Input & Equip. Suppliers Traders Farmers Food processors Logistics & storage Food retailers Dutch seed companies expressed interest Dutch company currently exporting to Senegal Commercial Farms, local & foreign investment Potential for setting up a factory incountry Need for technologies aimed at regional markets Contract engagement with large global food retailers 32 32

33 MAS Advisory Services Relevant Contacts RICHARD COLBACK LAURENT STRAVATO VASCO NUNES Water Platform Lead Irrigation Specialist Project Lead, SSA MONTAHA HASSAN Platform coordination FERNANDA LOPEZ Knowledge Management Specialist 33

34 FRANCOPHONE AFRICA BUSINESS FORUM Créer des Partenariats dans les secteurs de l Eau, de l Énergie et de la Logistique * Creating Partnerships in Water, Energy & Logistics #FABFORUM

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