Staple Crops Processing Zones. A Flagship Program of the Feed Africa Strategy

Similar documents
Industrialise Africa

Making the Connection: Value Chains for Transforming Smallholder Agriculture

Time for Africa. Capturing the African meat and poultry investment opportunity

Boosting youth employment in Africa: what works and why?

AGRICULTURAL MARKET SYSTEMS BEHAVIOR CHANGE WHEEL

Making Climate Finance Work in Agriculture

GCP/RAF/448/EC STRENGTHENING LINKAGES BETWEEN SMALL ACTORS AND BUYERS IN THE ROOTS AND TUBERS SECTOR IN AFRICA PROJECT IMPLEMENTATION PLAN GHANA

Statement presented to the EU Parliament on 17 th February 2016

AGRIBUSINESS VALUE CHAIN APPROACH FOR AFRICAN YOUTH EMPLOYMENT CREATION

ISPC Assessment of the Wheat Agri-Food System (WHEAT) CRP-II revised proposal ( )

G20 Initiative for Rural Youth Employment Supporting the Next Generation in Rural Development, Agriculture and Food Security in developing countries

Business Going Global

2 nd Triennial GFAR Conference

Improving Rural and Agricultural Financial Inclusion: The Contributions of AFRACA. Saleh Usman GASHUA, AFRACA.

Sustainable development: the role of agriculture

FAO FOOD LOSS REDUCTION STRATEGY

African Export-Import Bank Afreximbank

Agricultural Development. Dana Boggess Program Officer, Agricultural Development December 18, 2012

Farmer-to-Farmer Program Farmer-to-Farmer building agricultural sector competitiveness

A data portrait of smallholder farmers

The Continental SPS Agenda and Aflatoxin Control

TRANSFORMING AGRICULTURE IN THE EAC

foodfirst: The Future of Farming and Food Security in Africa

General Assembly s overall review of the implementation of WSIS outcomes. Official Form for Written Submissions

PPFS WORKPLAN FOR 2017

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

Rural Economy: Driver of Growth and Poverty Alleviation. Review of Cross-country Experiences. By Rashid Faruqee Senior Policy Advisor MINFAL

Value chain promotion for economic. - An introduction into the concept of ValueLinks

Building Bridges Among African Agricultural Policy Research Institutes

ICTs in agriculture: global view

Resource Mobilization - Roles and Responsibilities

CFS contribution to the 2018 High Level Political Forum on Sustainable Development global review

Food and Agriculture Organization of the United Nations in Lebanon

Strengthening Agricultural and Market Value Chains

Project Information Document/ Integrated Safeguards Data Sheet (PID/ISDS)

Identify and promote tools and methodologies in planning and evaluating emergence;

Agriculture in China - Successes, Challenges, and Prospects. Prof. Zhihao Zheng College of Economics & Management China Agricultural University

Experts Group Meeting. Territorialization of Industrial Policy and Inclusive Growth. Aide memoire

Global Forum for Food and Agriculture Communiqué 2018

113th plenary session, 8-9 July RESOLUTION on Sustainable food

Underappreciated Facts about African Agriculture:

FAO Statistical Initiatives in Measuring Investment in Agriculture: Global Investment dataset and Country Investment profiles

FEDERAL NEGARIT GAZETTE

Supporting smallholder market participation through Zambia s Home Grown School Feeding programme

TFESSD Mobilizing Rural Institutions for Sustainable Livelihoods and Equitable Development. Proposal for a Country Case Study ETHIOPIA

UNCTAD GLOBAL COMMODITIES FORUM 2013 Recommitting to commodity sector development as an engine of economic growth and poverty reduction

The Central Role of Agriculture in Myanmar s Economic Development

Legal Guide on Contract Farming

Reducing Rural Poverty: Social Protection, Access and Decent Employment

Agriculture in A changing world. Dr. Agnes M. Kalibata Minister of State in charge of Agriculture (Rwanda)

A vision for City Region Food Systems

Industries Without Smokestacks:

CASSAVA MECHANIZATION PROSPECTS AND FUTURE MARKET POTENTIALS IN NIGERIA. Suleiman, A.A. Bashiru, L Iheikhena, O.W.

EUROPE 2020 A European strategy for Smart, Sustainable and Inclusive Growth

Mainstreaming nutrition in agriculture investment plans Lessons learnt, challenges and opportunities

PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB6559 Project Name. Arab World Initiative for Financing Food Security Region

Empowering women and youth in agriculture and food systems

CONTRACT FARMING MODEL

Facilitating change in thin markets - engaging the private sector in remote areas. A BEAM Exchange webinar 16 September 2015, 2pm BST

Country Operations & Partnerships Coordinator, Benin and Burkina Faso VA/NPCA/17/29

OPTIMISM FOR AFRICAN AGRICULTURE AND FOOD SYSTEMS

Consultancy to conduct an assessment of Large Scale Land Acquisition in Ethiopia TERMS OF REFERENCE 7 May 2014

Maize Price Trends in Ghana ( )

DEVELOPED COUNTRIES SUPPORT TO THE AGRICULTURAL SECTOR IN LEAST DEVELOPED COUNTRIES OF EAST AFRICA: THE CASE OF AGRICULTURAL PRODUCTIVITY

Mainstreaming Climate Smart Agriculture into African National and Regional Agriculture and Food Security Investment Plans

African Agribusiness Academy Regional Event

Background: MSU Input Studies

Strategic Plan Draft for Consultation - 16 June 2014

Alternative and Innovative Financing in Agriculture in Africa

Strengthening the resilience of livelihood in protracted crises in the Democratic Republic of the Congo, The Niger and Somalia

Support to the Development of Markets and Value Chains in Agriculture in Liberia. Grow.

Durabilis. Geneva, 3rd October 2014

Theme 2: Competing Claims on Natural Resources

An urgent challenge for Africa is to

NATIONAL DEVELOPMENT PLAN Our future - make it work

April 2016 PC 119/4. Hundred and Nineteenth Session. Rome, May Strategy for FAO s work on Climate Change - roadmap

EIB s financing mechanisms in agriculture in Africa

Brief on Sustainable Agriculture

Agricultural Cooperatives: A means to achieving food security

Partnering for Scale. Ted London

ISPC Commentary on the revised proposal for CRP 7: Climate Change Agriculture and Food Security

2016 Impact Report. Lasting Solutions

DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERIVCES: NATIONAL E- STRATEGY AND ICT SMME SUPPORT STRATEGY

AGRICULTURAL DEVELOPMENT: OPTIMISING THE VALUE CHAIN

Property Rights and Collective Action for Pro-Poor Watershed Management

IEA-FAO Expert Workshop on Wasteto-Energy and Biogas in Southern Africa

Regional Partnership Compact for the Implementation of ECOWAP/CAADP

International Investment Forum in Mali. December 7 th & 8 th BAMAKO

FAO REGIONAL CONFERENCE FOR AFRICA

Skills Development, Agriculture Education and Training: Opportunities for Unlocking Youth Dividend in Agriculture and Agribusiness

United Nations Industrial Development Organization

CHAPTER 23 DEVELOPMENT

TRENDS IN INDUSTRIAL FOREST PLANTATIONS IN AFRICA

AGRIBUSINESS. ICPAK Forum Naivasha-13 th July 2016 Presented by Benjamin Kimosop

Background Paper: Promoting Sustainable and Inclusive Growth

Consolidated Biotechnology and Biosafety Issues in Africa

FAO POLICY ON GENDER EQUALITY: Attaining Food Security Goals in Agriculture and Rural Development

Resilience Analysis Unit

November 28, 2017, Munich. HVB Tower. Arabellastraße 12, Munich, Germany

Key Recommendations of Local and Regional Governments towards Habitat III MARCH 2016

Transcription:

Staple Crops Processing Zones A Flagship Program of the Feed Africa Strategy

The transformation of African agriculture is long overdue and it is the only way to unlock Africa's enormous potential. The African Development Bankʼs agenda aptly termed Feed Africa focuses on 18 priority commodities across the five agro-ecological zones of Africa and has set the targets of raising Africa's 2015 food production by an estimated 174 million metric tons (see Figure 1). Transforming African Agriculture: The Feed Africa Agenda Such an increase in production requires the development of allied agro-industries to absorb the expected additional production, add value to it, produce and market high quality and nutritious food products to replace current over-dependence on imports, and in the process, create business and employment opportunities at all stages of agricultural value chains. Figure 1 Total African supply and demand of key commodities in 2015, projected demand for 2025 and additional production to reach self-sufficiency What are Staple Crops Processing Zones (SCPZs)? Staple Crops Processing Zones (in some instances may also be known as Agro-Industrial Parks, Agribusiness Parks, Mega Food Parks, Agropoles, Agro-clusters, etc.) are agro-based spatial development initiatives designed to concentrate agro-processing activities within areas of high agricultural potential to boost productivity and integrate production, processing and marketing of selected commodities. These initiatives may or may not be granted Special Economic Zones status. They are purposely built shared facilities, to enable agricultural producers, processors, aggregators and distributors to operate in the same vicinity to reduce transaction costs and share business development services for increased productivity and competitiveness. By bringing adequate infrastructure (energy, water, roads, ICT) to rural areas of high agricultural potential, they attract investments from private agro-industrialists/entrepreneurs to contribute to the economic and social development of rural areas. Staple Crops Processing Zones

What are we trying to achieve through Staple Crops Processing Zones (SCPZs)? The ultimate aim of SCPZs is to turn the African rural landscape into economic zones of prosperity SCPZs are intended to lay the foundation for Africaʼs agro-industrialization and contribute to lifting millions of Africans out of poverty. Source : http://footage.framepool.com/shotimg/qf/703743477-irrigation-serre-botanique-agriculture-industrielle-pays-bas.jpg SCPZ objectives include: - Increasing food production capacity and efficiency. - Increasing value addition to agriculture. - Promoting local, regional and international trade. - Promoting investments in agribusiness. - Increasing the contribution of the agriculture sector to GDP, wealth and employment creation. Essential components of a Staple Crops Processing Zone (SCPZ) An Agro-Processing Hub, is a well-defined, centrally managed tract of land developed, subdivided and dedicated to supporting firms and other stakeholders engaged in agro-processing and related activities located throughout the production area surrounding the hub. (FAO, 2017); The hub offers adequate infrastructure, logistics and specialized facilities and services (e.g. electricity, water, cold chain facilities, laboratory and certification services, business services, ICT, waste treatment, etc.) required for agro-industrial activities (Figure 2). The ownership and management of the hub is controlled by a dedicated and independent entity, often in a publicprivate partnership arrangement.

Agricultural Transformation Centers (ATC) For each SCPZ, a number of Agricultural Transformation Centers (ATCs) are strategically located within the production area to serve as aggregation points to accumulate products from the community to supply the Agro-Processing Hub for further value addition or send to centers of great demand for distribution and retail to consumers; The ATC is a physical complex of facilities centrally located in the middle of a farming community, where required services are offered to farmers, including crop drying facilities, cold stores and warehouses, farm equipment rental and maintenance services, crop handling, grading, storage, and processing for increased shelf life; livestock handling, slaughtering and meat packing; fish handling, grading and processing; food quality and safety control and certification; distribution and marketing platforms (Figure 3). What are the Key Success Factors for an SCPZ? Overall, an SCPZ should be based on a national action plan for agricultural transformation that targets areas of high agricultural potential and builds the needed infrastructure to attract private investments in agro-processing activities and associated agricultural production. The program must be supported by policies and regulations that facilitate public-private partnerships and foster a conducive business climate. Such policies and regulations are prerequisites for a successful SCPZ programme. SCPZ must be Government-enabled (facilitator) but private sector-led (manager). The effectiveness of private sector implementation is a necessity for the success of the SCPZ program. Governments' role must be to facilitate the program by creating a conducive policy and regulatory environment and investing in the essential economic infrastructure required for agroindustrial development. SCPZs offer reliable hard and soft infrastructure required by agro-industries to be competitive. Uninterruptible power supply at competitive cost, good roads, clean water, telecommunications, waste treatment, as well as proximity to administrative and regulatory offices. (one-stop-shop), to business services and innovation systems are highly attractive to agro-industrial investors. All actors in the SCPZ should adopt best management practices. An effective governance system should be in place to ensure rapid identification of bottlenecks and finding of solutions, and regular sharing of information to build trust amongst all actors and facilitate the resolution of conflicts should they arise. Inclusion of smallholder producers and SMEs in the SCPZ model is essential for sustainability. SCPZ initiatives should identify challenges faced by smallholder farmers and SMEs along the value chain and endeavour to build their capacity and improve their performance so that products from the SCPZ can be competitive on the market.

SCPZs will play a major role in bringing about agricultural transformation and achieving the vision of the Feed Africa strategy. SCPZs will build this capacity so that large stocks of marketable food products are produced and can be locally or globally traded, driving Africa to become a net food exporter. By bringing the demand for farm produce to the farm gate, SCPZs offer an opportunity to smallholder producers to increase their productivity and grow their farm incomes. SCPZs also bring non-farm employment opportunities to rural dwellers, thus contributing to eliminating extreme poverty and hunger. Making agriculture production profitable and opening business opportunities along value chains promoted by the SCPZs are necessary conditions for attracting African youth into agribusiness.

c ç ê=j ç êé=få Ñç êã ~íáç å Atsuko TODA, Director, Agriculture Finance and Rural Development, AfDB, a.toda@afdb.org Olagoke OLADAPO, Manager, Layout and Design AfDB Communication and External Relations Department

Study on African Staple Crops Processing Zones (SCPZs) The Staple Crops Processing Zones (SCPZs) are critical in the Bank s agenda for the transformation of African s agriculture. They present a tool that can help to boost increased agricultural productivity and strengthen the capacity of Regional Member Countries (RMCs) to create added value to agriculture, livestock and fisheries, with a view to reduce food imports, initiate a structural change in the agricultural sector and diversify the national economy. SCPZs as a flagship program is already attracting the interest of many RMCs. Before a full scale, rollout of the implementation of this program, the status study of Africa's SCPZs was conducted to draw up lessons learned, identify the challenges, risks, success and failure factors, and assess how African SCPZs have contributed to economic development goals. Such knowledge would inform the formulation of the Bank's strategy to better respond to requests from its RMCs for assistance in establishing SCPZs as part of their agricultural transformation programs. It would also help RMCs to better plan, design and implement their SCPZ programs. The study assessed the effectiveness of the implementation and the performance of SCPZs in ten African countries, their characteristics, and the lessons learned from these initiatives, the challenges and opportunities they represent. The study covered five French-speaking countries (the Democratic Republic of Congo, Gabon, Morocco, Senegal and Tunisia) and five English-speaking countries (South Africa, Egypt, Ethiopia, Nigeria, and Zambia). The results of this study show that the SCPZs approach has been implemented in Africa for about 20 years compared to over 50 years elsewhere in the world. The pioneers of this approach in Africa are Morocco and Tunisia, and are even beginning to offer their expertise to other African countries. The study noted that the models of SCPZs sampled vary in form and content: their designs, implementation arrangements, financing and management modalities. The disparities in the findings led to the identification of the following key success factors that would trigger sustainable SCPZs: 1. Adequate policy and regulatory framework and supportive business environment sustained by legislation and official documents describing the national development strategic framework in which they fit. 2. Private sector leadership based on state facilitation in SCPZs animation and mobilization of investments. This requires continuity in political will despite changes in government and active promotion of the initiative by very senior level champions in the public and private sectors. 3. Important, patient and inclusive financing accessible to all actors, including small producers and small and medium enterprises operating in the SCPZs. 4. Quality infrastructure (energy, water, roads, ICT) conducive to well managed agro-industrial development maintained in carefully chosen locations.

5. Executive, technological and innovative management capacity capable of ensuring the competitiveness of the agro-industrial sector. This requires availability of skilled labor and support from research, training; and maintenance and repair of the machinery. 6. Connectivity of SCPZ actors to each other and to global markets in an integrated value chain approach, and a governance system that facilitates trade agreements and conflict resolution for increasingly successful value chains. The study concludes that the SCPZs approach is widespread throughout the world can be successful in Africa and can play an important role in the transformation of African agriculture. However, some issues need special attention for their success in Africa: 1. Securing access to land for the inhabitants of the areas concerned and for small, medium and large scale farmers 2. National consensus on the SCPZs approach for agricultural development, to converge contributions from various sources 3. The dynamics of the relations between the private and the public sectors for a win-win publicprivate partnership 4. The competitiveness factors of the agro-industrial sector, in particular: a. Increase of agricultural productivity b. Excellence in executive and technological management c. Constant innovation d. Quality management and phytosanitary standards for global competitiveness. The implementation of the SCPZs would require case-by-case adaption of what has worked to the emerging realities of each country, and even of the region of the country where the SCPZ is set up. However, countries that consider adopting this approach should draw on the experience of other countries to avoid mistakes based on experiences. Layout and Design Communication and External Relations Department