INVESTMENT POLICY AND PROMOTION WEEK. Sector Specific IPP Agribusiness Vienna October 15, 2015

Transcription

1 INVESTMENT POLICY AND PROMOTION WEEK Sector Specific IPP Agribusiness Vienna October 15, 2015

2 Wanted: Investments in Agribusiness 63 percent of the world s poor work in the agriculture sector and 80% live in rural areas Demand for food will grow by an estimated 70 percent from 2010 to 2050 and 83 percent of that growth will be in urban markets of the developing world $ Net investments of more than $80 billion per year are needed if food production is to keep pace with rising demand For Sub-Saharan Africa alone, additional investments of at least $21 billion per year are needed Commitments are needed all along the agribusiness value chain, by domestic firms and foreign direct investments alike, to close the investment gap 2

3 T&C Agribusiness Themes Develop new opportunities Themes Define market position and opportunities Help countries understand their competitive position and growth options Investment Policy and Promotion Develop new opportunities Reduce barriers to markets, develop market linkages and mobilize investments Strengthen competitiveness Decrease the costs (money, time and risk) and raise productivity of doing business in agribusiness Improve integration into value chains Facilitate PPD, contract farming, links with finance work, and SME innovation Help client governments attract, facilitate, and retain different types of foreign direct investment (FDI) by developing investment reform map/strategy; improving the effectiveness of polices and incentives, investor protection and promoting new investments by i) identifying opportunities (sub-sectors) for direct investor targeting, and ii) designing, plan, implement and follow up on investor outreach programs. Activities Trade policy Food safety and national quality infrastructure Agribusiness Spatial Solutions Help implement trade and investment policy reform for agricultural product markets at the country, regional, and global levels; around trade standards compliance and access to markets. Help streamline the regulatory environment and build capacity to encourage private sector compliance with international food safety, SPS and other market standards for improved market access. Help client governments design spatial growth strategies i.e. growth poles, growth corridors, and special economic zones, that will lead to greater levels of investment and create jobs in industries like agribusiness. Note: a joint project offering is being designed with the Agriculture GP on the design of spatial solutions specifically for agribusiness 3

4 T&C Agribusiness Offer Objectives Expand market opportunities in the agriculture sector & enable a country s private sector to develop these opportunities all along the value chain for inclusive economic growth Themes Define market position and opportunities Help countries understand their competitive position and growth options Reduce barriers to markets, develop market linkages and Strengthen competitiveness Decrease the costs (money, time and risk) and raise productivity of doing business in agribusiness Improve integration into value chains Facilitate PPD, contract farming, links with finance work, and SME innovation In Burundi, T&C facilitated i) prioritization of key constraints to successful privatization of coffee washing stations, ii) drafting the privatization reform strategy and regulations to permit farmer participation, and iii) investment promotion leading to a pipeline of 6 new prospective social investors to partner with farmers. Internal Partners: Agriculture GP, Poverty GP, Macroeconomics & Fiscal Management GP Examples In Ukraine, T&C partnered with IFC MAS to abolish burdensome regulations and provide advice to businesses on food safety standards. The project resulted in bold reform and adoption of the Food Safety law. The European Commission granted approval for three poultry producers to export to EU markets incl. IFC s client. Internal Partners: IFC, Macroeconomics & Fiscal Management GP In Rwanda, investment policy and promotion work brought in 8 foreign investment of more than $20 million; creating 2,000 direct jobs; supporting the livelihoods of thousands of contract farmers; and linking Rwandan production to international markets. Key Delivery Partners: Agriculture and Finance & Markets GPs, other GPs, IFC, Gates Foundation, FAO, OIE, STDF, WEF-Grow Africa, DFID Increased competitiveness, Investments, Jobs, Incomes 4

5 T&C s Guide to Investor Targeting in Agribusiness Guides TTLs/PLs through a four-step process to investor-targeting: 1. Understanding the context (i.e., scoping ) 2. Identifying competitive subsectors 3. Preparing for a targeting campaign 4. Executing a targeting campaign and follow-up Including monitoring environmental and social impacts Focused on agribusiness, but remains useful for any project dealing with investor targeting Available in hard copy and online Comes with online access to 34 practical tools, including TORs, scoping questionnaires, promotional materials, presentations for investors, etc.

6 VCs & AGRIBUSINESS PRIVATE INVESTMENT Supporting Agribusiness, a Joint WBG Effort BUSINESS CLIMATE Policies and regulations, Infrastructure, Market structure, Innovation, Technology, etc. Input supply & technology Production Postproduction Processing Distribution & marketing SUPPORT SERVICES Access to Finance, Power, Transport, Storage, Packaging, Market Information, Trading, etc. Agriculture GP T&C GP IFC The Agriculture GP supports farmers, their organizations and agriculture sector development focusing on: - Climate Smart Agriculture - Food Quality and Food Safety - Livelihoods and Agriculture Jobs - Value Chains and Agribusiness - Landscapes - Agriculture Finance and Risks - Water for Agriculture T&C focuses on expanding market opportunities in the agriculture sector and enabling a country s private sector firms to develop these opportunities all along the value chain for inclusive economic growth. It does so with: - Lending operations - IFC Advisory services - Non-Lending Technical Assistance IFC s Manufacture, Agribusiness and Services (MAS) investment department supports private investors in LDCs with: - Equity/Quasi-Equity - Long-term Debt - Risk Management Solutions - Firm-level advisory services for investees 6

7 INVESTMENT POLICY AND PROMOTION WEEK THANK YOU