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Prof Monty Jones - Expert Discussion on Agriculture

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In the framework of the Brussels visit of the recently appointed EMRC President Prof. Monty Jones (Special Advisor to the President of Sierra Leone and winner of the FAO World Food Prize) and DR Congo’s Minister of Agriculture, Jean Chrysostome Vahamwiti Mukesyayira, presentations focused on the opportunities and challenges of Africa’s Agri-Food sector.

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Prof Monty Jones - Expert Discussion on Agriculture

  1. 1. Overcoming Challenges and taking advantage of Opportunities in African Agriculture Amb. Prof. Monty P. Jones Special Adviser to the President and Ambassador-atLarge, Government of Sierra Leone
  2. 2. Outline 1. Africa’s rise, prospects and concerns 2. Challenges and Opportunities to African agriculture 3. How challenges can be overcome and opportunities taken advantage of 4. Role of EMRC 5. Key messages and conclusions
  3. 3. Africa’s Rise
  4. 4. Sustained economic growth over last decade Real GDP growth (%age) and prospects Source: Africa’s Pulse, April 2013, World Bank
  5. 5. Sustained economic growth has increased.. • Prosperity ( middle class) • Consumption and demand for services • Resources for public investment in infrastructure & other productive sectors • Attractiveness of Africa as an investment destination
  6. 6. Africa’s rise is not inclusive! 100 Poverty Rate (% of population below $2/day in 2005 PPP) East Asia & Pacific 80 China 60 South Asia LAC 40 MENA 20 0 1981 SSA Developing World 1984 1987 1990 Source: World Bank, 2012 1993 1996 1999 2002 2005 2008
  7. 7. Challenges and Opportunities in a dynamic environment Where we are Where we want to be
  8. 8. Main Challenges w.r to Africa’s growth trend • Sustaining the growth over the long term • Raising the growth rate • Making the growth more inclusive and environmentally sustainable
  9. 9. Natural Resource degradation Contribution of yield increase & area expansion to increases cereals production 1980-2003 Nearly 80% of increase in cereals production in Africa is mainly through expansion of land under cultivation. Such environmentally unsustainable practices are driven by lack of access to fertilizer
  10. 10. Climate change compounds the challenges • Is projected to exacerbate the riskiness of Africa’s agricultural production and marketing environment – Increased climatic variability  more frequent occurence of droughts and floods. 95% of African agric. is rain-fed – Progressive warming: Many African crops are sensitive to temperature changes because they are grown close to their limits of thermal tolerance – Extreme events damage storage & transportation infrastructure
  11. 11. Emerging opportunities...1/2 1. Renewed interest in Agriculture – 2009 World Development Report; AU Summit on agriculture 2009; L’Aquila G8 declaration 2009; UK-China Summit 2009 2. Emerging socio-economic and political context – Increased regional cooperation: African Union, NEPAD, RECs, – CAADP implementation – CGIAR Reform; – Increased collaboration with emerging powers: China, India, Brazil and other partners in the South – Liberalisation leading to increased private sector involvement (EMRC) – Large Diaspora population (pool of skills, investment, advocacy)
  12. 12. Other emerging opportunities...2/2 Other emerging opportunities...2/2 3. Prevalence of local successes that can be scaled up. 4. Information revolution  has improved access to market information by farmers and to scientific information by researchers 5. Expanding markets for high-value agricultural products from Africa 6. Scientific tools (e.g. biotechnology) and promising technologies that have not been widely disseminated.
  13. 13. Addressing the Challenges & taking advantage of opportunities • Identify underlying causes/issues • Establish pathway to impact • Formulate interventions • Implement interventions • Monitor and continuously refine
  14. 14. Overcoming challenges Main Challenge: Low productivity (land & labour) due to:  Limited capacity to generate the innovations required to increase productivity  Unfavourable external markets; inefficient intra-African markets  High population growth  cultivation in marginal areas  land degradation  Institutional weaknesses of service provision at all stages of production to consumption  Poor infrastructure higher transactions costs lower competitiveness of products  Post harvest losses. They cancel out the modest gains in productivity.  Climate change (projected to have greatest impact in Africa)
  15. 15. Food security is … • … National security: Essential to sustain development gains Without food… • … Essential for human capital development – Medicines become ineffective or even dangerous to the sick; – Children cannot learn well in schools; – The labour force cannot be productive Bingu wa Mutharika, fmr President of Malawi
  16. 16. Agriculture: A driver for change Climate change Food Security Nutrition & Health Non-food commodities e.g. bioenergy, rubber, fibers, pharmaceuticals, flowers, etc Environmental stewardship
  17. 17. The Agri-food Sector Production and Post-production support services Agribusiness / Agro-industry AgriFood Production (on-farm) Farming Food Non-Food
  18. 18. Share of agribusiness in agriculture valuechain Global: Agribusiness accounts for 78% of value added in the value chain Most of Africa: Agribusiness accounts for 38%
  19. 19. Agro-Industry as a Driver of Africa’s Structural Transformation • Structural transformation: the pathway mapped by African leaders to next development stage • Shift from primary commodities to value-addition (manufacturing and services) • Agro-industry accounts for sizeable share of manufacturing (1/3 to 2/3). A good foundation to build upon
  20. 20. Enhancing Productivity & Competiveness essential to development of Agri-food Sector Cereal grain average Yield Yield by Region (mT/Ha) Cereal Grain Average by Developing Region (t/ha) Competitiveness Sub-Saharan Africa South Asia 5 Rest of the World East Asia South East Asia 4 3 2 1 1960 1970 1980 Year 1990 2000 2008
  21. 21. 7 Pillars of agribusiness development in Source: (UNIDO 2011) Africa Enhancing agricultural productivity Strengthening innovation capacity Stimulating private sector participation Upgrading value chains Promoting Innovative financing Exploiting local regional and international demand Improving infrastructure and energy
  22. 22. Key Messages 1. Development of agribusiness / agro-industry is a key lever to transformation of African economies and subsequently to development 2. Pursue productivity alongside competitiveness 3. Achievement of Africa’s aspirations for ending hunger and achieving sustainable development is down to: long-term vision, political will & policy environment, leadership and human capacity
  23. 23. Thank you for the attention