Statement presented to the EU Parliament on 17 th February 2016

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1 Statement presented to the EU Parliament on 17 th February 2016 by Dr. Nalishebo Meebelo, Senior Coordinator for the New Alliance for Food Security and Nutrition Department for Rural Economy and Agriculture African Union Commission The Chair of the Committee on Development of the European Parliament Honorable Members of the House All protocols observed May I simply say, Distinguished Ladies and Gentlemen Allow me to begin by stating that the African Union Commission (AUC) welcomes the support of the European Union and its Parliament to Africa s development agenda. We are therefore grateful to the Chair of the Committee on Development of the European Parliament for extending an invitation to the African Union Commission to participate in this session. Let me also thank Ms. Maria Heubuch for her presentation of the Report, as I also extend the Africa Union Commission s gratitude to all those that have been party to the dialogue as well as the content of this Report on the New Alliance. Let me also take the opportunity to request to be excused for not having been present during the hearing that preceded the preparation of this Report. This was due to circumstances beyond the control on the AU Commission, whose intention it was to participate in December last year. The Commission however, thanks the EU Parliament for taking initiative to highlight through the Report some of the issues that surround the discourse on the New Alliance for Food Security and Nutrition. My role this evening is to share with you the outlook and progress made in implementation of the New Alliance for Food Security and Nutrition from the perspective of the African Union Commission and in line with the continent s common policies and investment frameworks. I will there take this time to illustrate briefly how the New Alliance is aligned to the African continent s overall vision and its development agenda, which is currently being advanced in the African Union Member states, towards attaining socio- economic transformation, shared prosperity and improved livelihoods for the African populace. My presentation will focus more on matters of agriculture development, food security and nutrition which are of interest to the agenda of the New Alliance.

2 Honourable Members of the House may already be familiar with the Comprehensive Africa Agriculture Development Programme (CAADP), endorsed in 2003 by the Heads of State and Government and popularly referred to as, The Maputo Declaration. This Declaration was adopted to bring agriculture back to the pinnacle of economic development in the continent. This was as a result of various challenges that were noted in the sector at the close of the 20 th Century. These challenges include among many: low production and productivity; low attention to, and investments in, the agriculture sector (public, donor and private sector); lack of effective evidence based policies, strategies and regulatory frameworks to support development of the sector; absence of disaggregation in matters of gender to mention but a few. CAADP is Africa s common policy and investment framework; it is Africa s new model for doing business in agriculture. CAADP principles encourage participation of all stakeholder groups in dialogue around selection of priority areas for investment, policy commitments, planning, programming and implementation. Furthermore, Honourable Members of the House, in line with the subject at hand, it is evident, that the CAADP processes at Continental, Regional and National levels, have taken strong cognizance of the importance of both public and private sector investments in agriculture, agribusiness and agro-industry, in order to achieve the goals that the continent has set for itself. Following Africa s demand to enhance investment in the agriculture sector and within the context of CAADP, The AU Commission recognizes that the establishment of initiatives such as The Global Agriculture and Food Security Programme (GAFSP); Grow Africa and the overarching New Alliance for Food Security and Nutrition and others, is meant to unlock Africa s economic potential and all these are undertaken in alignment with Africa s continental framework (CAADP) and its processes. Importantly, these initiatives must recognize the need for African citizens to maintain the driving seat of their continent s agenda. must recognize the need for responsible investment in to African agriculture. Must recognize the need to pay attention to Environmental, Social and Governance (ESG) concerns, and operate in a manner that promotes positive impact and avoids negative results. Against this backdrop, African Union Member states are importantly being encouraged to ensure that smallholder farmers, women and youth are recognized as key partners and beneficiaries of interventions such as those I have mentioned above. In addition, Member states are urged to ensure that wealth creation, food and income security and, nutrition are at the center of these initiatives. In 2013, a decade after the launch of CAADP, the Africa Union observed progress in the quality of public sector planning and investment in the sector. It was however noted, that the private sector is the engine of growth in agriculture, and in enhancing food security and nutrition. Much still needed to be done to ensure that the private sector also does its part in giving life to CAADP. In the same year 2013, AU Heads of State and Governments launched Agenda 2063, with a renewed vigor to ensure Africa s renaissance and with a focus: on the continent s economic transformation; on shared prosperity and improved livelihoods for its people; and, on ownership and leadership of Africa s development by its citizens.

3 Agenda 2063 is being implemented in 10 year roll-out plans that were officially launched in The 2014 Malabo Declaration endorsed by the Heads of States and Governments reaffirms the continent s commitment to CAADP as a plan to foster inclusive agricultural sector growth and signaling greater focus on the role of the private sector in realizing this goal. The Malabo Declaration is aligned to Agenda 2063 and, is designed to accelerate agriculture transformation towards shared prosperity and improved livelihoods in the continent. One of the 7 commitments made by our African Union Heads of State and Government at Malabo, Equatorial Guinea in 2014 was a need to enhance investment finance in agriculture, and further, I quote to create and enhance necessary appropriate policy and institutional conditions and support systems for facilitation of private investment in agriculture, agribusiness and agro-industries, by giving priority to local investors. The Malabo Declaration also speaks to a critical need for mobilization and disbursement of investment finance for priority agriculture related investment projects. In response to these commitments, the African Union Commission adopted the Continental Agribusiness Strategy through the Inaugural Specialized Committee of Ministers in charge of Agriculture, Rural Development, Water and Environment in October This is with a view to strengthening engagement of the African Domestic Private Sector to support inclusive agricultural growth, provide jobs and create wealth and employment for Africa s population, and particularly the young. So, The New Alliance for Food Security and Nutrition is aligned to both the CAADP agenda and now the 2014 Malabo Commitments and is designed to catalyze and concretize cross-sector action in support of National Agriculture and Food Security Investment Plans. Furthermore, The New Alliance is seen as tool with significant potential to unlock the Continental Agribusiness Strategy and to contribute to the attainment of the Malabo commitments on Enhancing Investment Financing in Agriculture and Boosting Intra-African Trade in Agriculture, Commodities and Services. The New Alliance is led and coordinated by the African Union Commission. You may wish to note, Members of the House, that a New Alliance Team is now in place and operational at the African Union Headquarters in the Department of Rural Economy and Agriculture to coordinate, evaluate and report on initiatives and activities contributing to responsible private sector investment in Africa. Within the framework of the New Alliance Country Cooperation Agreements, African Union Member states who have signed up to the New Alliance Initiative are expected to commit to developing or revising policies that will facilitate responsible private investment in agriculture in support of smallholder farmers. These Country Cooperation Agreements bring together concrete commitments from public and private actors to support the implementation of African owned agriculture policy processes at country level. Parties involved in the creation of CCAs are held mutually accountable for their commitments and participate in a country-level annual review process in the spirit of CAADP s Mutual Accountability Framework (MAF). It is important to note that parties are actually held accountable here, and on a regular basis in the spirit of participatory action and self-refection.

4 The New Alliance is country driven and so, each African government decides how to oversee and implement policy commitments in its country. Meanwhile, the Development Partners have committed to predictable funding levels directly aligned with CAADP National Agriculture and Food Security Investment Plans, while the private sector or companies as part of the New Alliance framework are increasingly realizing that investing in smallholder agriculture is not just socially responsible that it actually makes sense for their businesses. In this regard, private sector or companies have committed, through Letters of Intent, to pursue responsible investments in African agriculture and food security through models that maximize benefits to smallholders. But Africa is not sitting back when it comes to ensuring that there are no dis-benefits. Through support from the African Union Commission various guidelines or guiding principles on how to deal with large scale investments have been and continue to be developed to ensure that our citizens are not dis-benefitted (this not only in agriculture but in all areas of human endeavour) - That there is in fact, a win-win situation and this is the spirit for the 21 st Century and going forward. So, during the operationalization and implementation of the New Alliance Country Cooperation Agreements (CCAs), The AU Commission has observed and noted some progress, some challenges, as well as opportunities and best practices. These are being documented and will be shared accordingly. Some of these pertain to issues that have been advanced in the EU Parliamentary Report presented to this House today. Allow to state at this point that the report has highlighted some information that is outof-date in the current country plans, and some aspects that are under-represented, such as nutrition and women s economic empowerment. Let me hasten to mention that the Chairperson of the African Union, Her Excellency Dr. Nkosazana Dlamini-Zuma is passionate about the participation, success and visibility of African women in advancing the development of the continent. In this regard, two years in a row, the theme of the African Union has reflected women. Last year we were about empowering women towards contributing to Agenda This year the AU Theme is about Human Rights with particular focus on women s rights. Every programme, every initiative, every partnership of the AU Commission is expected to reflect this theme in You may wish to note, Honorable Members that, Africa is moving forward in addressing issues pertaining to private sector investment including matters advanced by key partners and stakeholders. Africa will listen to concerns and advice, and where necessary Africa will adjust accordingly and continue to advance in line with its long term vision contained in Agenda towards socio- economic transformation, shared prosperity and improved livelihoods for African people. For this reason, Africa has set itself key and ambitious targets that will require your unrelenting support. The AU Commission, in line with agenda 2063, is keen to support Member states in developing relevant guidelines or guiding principles that will enable beneficial interventions for the people of Africa So, with respect to ownership of the New Alliance processes by the African Union Member states,

5 you may wish to note that one of the priorities of the AU Commission for the year 2016 is to ensure that the New Alliance reporting processes are fully integrated into The Country Joint Sector Reviews that speak to Mutual Accountability for Action and Results by all stakeholders. The NA reporting will also be integrated into the Malabo Biennial Reporting processes for presentation by the AU Commission to the Heads of State and Governments, during the Ordinary Sessions of the AU Assembly. It might interest this Distinguished House to note that the first biennial report is expected to be presented in January 2018 to the Assembly of the African Union. 1. With respect to matters of Land Policy in Africa, The African Union Commission (AUC) welcomes the support of the European Union, and it s Parliament with regard to the support that is being rendered, towards coordinating the implementation of the AU Declaration on Land Issues and Challenges in Africa, under the auspices of the AU Land Policy Initiative (LPI). Great achievements have, hitherto, been made through this partnership with the EU and its support so far in helping to build Africa s capacity on Land Governance and we look forward to your continued partnership in this regard. We welcome the recognition of this House to the Framework and Guidelines on Land Policy in Africa and the Guiding Principles on Large Scale Land Scale Investments. These documents were both endorsed by African Ministers responsible for land and agriculture in April 2009 and May 2014, respectively. These useful commitments and tools provide a basis for improving land governance in a holistic manner with a view to securing livelihoods, improving food security and safeguarding the environment. I have here with me here, copies of these commitments made by the leadership of Africa and wish to state that Member states are in the process of aligning their land policies to these documents. 2. With respect to private sector investments, the New Alliance works with the Grow Africa Initiative in terms of reporting on commitments from the companies through what we call the Letters of Intent (LOIs). Within the framework of the New Alliance, a diverse range of private sector actors are convened to express specific commitments around inclusive and responsible investment in the agriculture. To date, of the 297 Letters of Intent, 165 represent domestic or regional African companies and 134 are international. To date, it is African companies that have reported the majority of investments made. As stated earlier, this reporting process is being integrated in to the Annual Joint Sector Reviews. 3. With respect to inputs such as seed While member states have committed to enabling policies and regulatory frameworks around seed in the CCAs, we are all aware that this matter remains a prerogative of the countries. 4. With respect to benefits of smallholder farmers You may wish to note that support from the New Alliance and Grow Africa targets partnerships, initiatives and investments that promise the greatest impact on domestic companies and smallholders. The African Union Commission recognises that smallholders are central to commercial, political and developmental ambitions for African agriculture. With initiatives such as Grow Africa and its facilitation, New Alliance partners are actively innovating and scaling up solutions for smallholder production and profitability. For example, the Smallholder Working

6 Group brings together farmers, companies (small and large), and expert organizations in order to tackle specific commercial challenges within smallholder business models e.g. side-selling, service delivery, aggregation etc. This new body of knowledge is actively disseminated and promoted. So what are the African Union s priorities for We are looking at supporting the implementation of the Continental AU Agribusiness Strategy; 2. With member states and key stakeholders, we are seeking to develop further guidelines or guiding principles to ensure continued benefits to smallholder farmers and women from both domestic and international investments 3. We will continue to align the New Alliance processes to Africa s long term vision through the Country Joint Sesto Reviews and the Biennial Reporting; and 4. We will continue to strengthen engagement of Non- State Actors in the NA dialogues processes and the policy, planning and implementation processes. In conclusion, House Members of the EU Parliament, the AU Commission will continue to support its member states in developing relevant policies, frameworks and guidelines to ensure that matters are addressed accordingly. We welcome the continued support of the European Union and its Parliament to assist the Commission in advancing its programmes. On behalf of the AU Commission, let me once again thank you for inviting this participation. I submit.

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