Why is agricultural productivity so important in the Southern Africa region and what are the current trends and challenges?

Transcription

1 Why is agricultural productivity so important in the Southern Africa region and what are the current trends and challenges? Keynote at opening session of the World Bank IEG workshop on Evaluating Support for Growth and Productivity in Agriculture and Agribusiness in Southern Africa: The Role of Public and Private Sectors Gaborone, Botswana October 2010 Mandivamba Rukuni Wisdom Afrika Leadership Academy 5 Campbell Ave. Pomona. Harare Zimbabwe weshambo@gmail.com

2 Global context Unstable global financial markets Food crises in industrialized countries Energy crisis India and China changing dietary patterns Climate change

3 Why focus on Productivity and Competitiveness? Africa cannot jump stages of development Agricultural growth remains central to: overall economic development, wealth creation Need to increase returns to LABOUR and LAND for poverty reduction Reduce costs of food production Save the Environment

4 Southern Africa issues- Commercialization of smallholder agriculture- through collective action along value chains (commodity associations) Developing rural markets for local circulation of goods and services (WFP example) Transmuting problems into Challenges and opportunities- e.g. organic farming of food, herbs, flowers Promoting social and business entrepreneurshipwith family and extended family as main business entities

5 Southern Africa issues- Commercialization of smallholder agriculture- Building trust institutions- between producers, buyers, processors, suppliers Focus on economies of Scale NOT economies of SIZE (reducing transactions costs) Alternative channels of information & market intelligence (e.g. product specifications, prices)

6 Southern Africa issues- Skills needed for Commercialization of smallholder agriculture- Marketing skills- Africans most creative people on earth, worst marketers! Deal making and deal structuring Value addition, processing

7 Other Strategic Southern Africa issues- Land reform and land rights Regional integration and trade Low public sector investment into agriculture and rural development (Lagos Plan of Action 1980, Maputo Declaration 2003)

8 Uniqueness of African Agriculture Diverse cropping patterns Thin rural infrastructure Undeveloped markets Minimal mechanization Limited rural finance Competition with food aid Dominance of weathered soils and inherent soil infertility Weak agricultural support systems

9 Global Trends Shift from Agriculture focus to Rural Development Integrated trader-processor model Export orientation/foreign investor Super-market-ization of food markets

10 IEG focus areas Irrigation and drainage- cost recovery, water use efficiency, large versus small, government versus community systems Research and Extension- CGIAR, pedagogical paradigm wrong, embodied and disembodied technology; African governments and donors alike still experimenting with models for Africa. Access to credit- shift to rural finance, need for patient money for the poor, integrating microfinance with larger financial markets

11 IEG focus areas Access to land and land rights- security, unlocking dead capital Roads and marketing infrastructurefeeder roads and public works, food storage, cold chain Policies, markets and agribusiness- public investment, food aid, urban bias

12 Development is about people Helping people to help themselves Building their own capacity to learn, innovate and co-create knowledge Building their CONFIDENCE in their culture, knowledge systems Building their capacity to borrow intelligently

13 Development is about MORDENIZING NOT WESTERNIZING AFRICA Culture: Hard work; Saving and investment; Collective responsibility; Belief in education (quality and relevance); Peace loving Society: Strong families; Strong communities Answers lie from within The only truth is one you discover for yourself These are the highest values that create wealth

14 Thank you