Lessons from Agro-Allied Industrialization Experience and perspectives in Liberia

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1 Lessons from gro-llied Industrialization Experience and perspectives in Liberia resentation by Dr Charles McClain Deputy Minister of lanning and Development at the Ministry of griculture of Liberia at frica Economic Conference buja, Nigeria Dec 5-7, 2016

2 Liberia gricultural Transformation genda GOL: Economic diversification and Inclusive Growth ONE OGM: Develop value chains for agricultural goods, from production to processing and manufacturing, by promoting self-sustaining market systems & adopting export-driven industrial policy for 21 st Century 4 GUIDING INCILES: Develop priority value chains through private sector investment and markets romote innovative financing solutions dopt an export-driven industrial policy, including production of downstream products romote enabling business environment VLUE CHINS: Cocoa, Oil alm, ubber, isheries (Marine/quaculture), ice, Cassava, Horticulture, oultry/small uminants OBJECTIVE TO 2017: gro-businesses irreversibly anchored in Liberia s long-term economic landscape through increased investments of private sector at critical stages of value chain COSS-GOVENMENT EOT: Core team: Mo, MoCI, MD Other MCs: MoS, CBL, NIC, NBC, L, MI, MW, MLME, MoL, MYS, MoT, LEC, D, LC, CD, N, Land Commission, LBDI, LD, CI, MICT MULTI-STKEHOLDE OCH: lignment of donor support behind LT program as well as Implementing artners, rivate sector associations, NGOs, Civil Society org

3 Value chain approach 1 Vision for Economic Diversification & Industrialisation Creates much larger, stable market for farmers Creates much larger, stable market for value addition investors griculture Crops used as base input gro-rocessing & Value dded rocessed crops stimulate light manufacturing e.g. packaging Manufacturing Stimulate demand for services sector e.g. logistics & financial & business services Services 2 Holistic pproach: Value Chain Development & Targeting roducts we can Manufacture from our crops What roducts Can we Manufacture T SCLE in Liberia from Our Main Crops? ubber Oil alm Cocoa ish Cassava ice Other ubberwood, SS, Household utensils, an Belts, Shoes, Boots, Mats Cooking Oil, Soaps, Biomass fuel, eed Grade, eed, Butter, owder, Chocolate, Cosmetics resh/dried, illets, Canning, rozen, ish Sauce High Quality lour, Chips, Gari, ufu, Glue, Starches, lcohol ice, Cereals, eed, Snacks, Crackers, ice Oil, Noodles lastics, packaging, nails, bolts, eggs, snacks, processing equipment

4 C V C V C V V Marine ish Hubs Oil alm reas ubber rocessing Clusters ice & Vegetable Hubs quaculture rime Cocoa reas C S Cassava S S S Western Corridor 6 agro-clusters identified

5 dopting a holistic approach. Strategic vision and clarity of purpose. Coordinated government action. eaching out to stakeholders. estructuring governmental services Strategy, Execution & Communication Ensuring access to finance olicy Environment Quality control and standards Land Tenure Environmental protection gropoles/ Special Economic Zones Trade agreements Infrastructure. Energy. oads. orts. Light Manufacturing Liberia Incentive-Based isk Sharing System (LISL) ubber Development und rivate equity Outgrower scheme Warehouse eceipt system Business Development Services for Small businesses/ Cooperatives ccess to quality inputs E-registration of farmers Growth Enhancement Scheme (cost-sharing)

6 Expected results by end 2017 OBJECTIVE: STUCTUES/SYSTEMS SET U & IVTE INVESTMENT COSS VLUE CHINS OGMMTIC LEVEL: rogram fully designed; Outcomes and targets identified; oles & esponsibilities clarified; Execution & monitoring systems; Budget and financing available ENBLING MECHNISMS: eegistration of farmers; ewallet system; inancing available for agribusiness (de-risking); Business Development Services/Entrepreneurship; gro-dealer network UBBE: Sector financing available; 3 SS Clusters operational; New market opened COCO: LC ct passed; Cocoa egulations adopted; Warehouse rehabilitation & Warehouse receipt system in place; Independent certifier operating; oreign value chain investor; ccess to inputs & extension services to smallholder farmers OIL LM: Outgrower scheme pilot implemented for Concession holders; rocessing mills operational; Exports of Oil alm; Non-concessionary production & marketing increased ICE: Increased yields and access to market; Cost of production reduced; rivate sector investment; Export markets; easibility study for Commodity trading platform ISH: obertsport & Monrovia fishing facilities operational and privately managed; eform of tax & regulatory framework; Industrial investor in quaculture CSSV: High quality Cassava lour used in bread; Starch production OULTY/SMLL UMINNT: Investor in feed production; Backyard poultry rearing project

7 Some key achievements to date residential Task orce on griculture & Manufacturing Unprecedented collaboration of government services in supporting agriculture, agribusiness and related industries in Liberia Strategic partnership with donors, private sector, NGOs doption of supporting laws, policies, regulations Liberia gricultural Commodity egulatory gency ubber Development und isheries and quaculture olicy Duty free inputs for agricultural goods and equipment E-egistration of farmers and e-wallet system ilot undertaken in 2016: more than 200,000 farmers. hase 2 underway 2,600 farmers redeemed 200 kg of fertilizers and 26 metric tons of lowland seed rice Investors being sought for Oil alm outgrower scheme roduction-protection agreement: for every ha developed, 5 are protected ilot being planned for 4,000 ha at total cost of USD 29m roduction expected to rise from 0mt to 1,394 mt in 2016 and 47,000mt in 2017, representing revenues of USD 39.4m in 2017

8 Thank you