Comprehensive Africa Afgriculture Development Programme (CAAD)

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African Ministers of Agriculture met at FAO Headquarters in Rome, Italy on 9th June 2002 under the auspices of the FAO Regional Conference for Africa. The purpose of their special follow-up session was to review an earlier draft of this document – the Comprehensive Africa Agriculture Development Programme (CAADP) - prepared by FAO in co-operation with the NEPAD Steering Committee. Extracts from the report of their meeting are produced as Annex 1. It can be seen that the Conference welcomed and endorsed the CAADP and agreed on the need to quickly operationalise it; it offered guidance to member governments on a wide range of aspects of operationalisation and action to revitalise African agriculture. What follows is the full CAADP document after some adjustment to reflect some comments received on the version presented to the Ministers, including their desire to see research included as a pillar for action. Clearly, a programme on agriculture must remain open to continuing improvement and also be open to interpretation for each of Africa’s sub-regions in order to best address that continent’s diversity. This document therefore offers a broad frame of priorities from which more precise strategies and programmes can be derived for operationalisation. Africa is a rural continent and agriculture is extremely important to it. For the region as a whole, the agricultural sector accounts for about 60 percent of the total labour force, 20 percent of total merchandise exports and 17 percent of GDP. The latest figures (for 1997-99) show that some 200 million people – or 28 percent of Africa’s population – are chronically hungry, compared to 173 million in 1990-92. While the proportion of the population facing hunger is dropping slightly, the absolute numbers are rising inexorably. During the 1990’s, declines in the number of hungry people have been registered in only 10 countries. At the end of the 1990’s, 30 countries reported that over 20 percent of their population was undernourished and in 18 of these, over 35 percent of the population was chronically hungry. As of 2001, about 28 million people in Africa were facing food emergencies due to droughts, floods and strife, of which some 25 million needed emergency food and agricultural assistance. To reflect its particularly difficult situation, the World Food Programme - which accounts for two-fifths of international food aid - has spent US$12.5 billion (45 percent of its total investment since its establishment) in Africa and 50 percent of its investment in 2001. Food aid indicates considerable external dependency: in 2000 Africa received 2.8 million tons of food aid, which is over a quarter of the world total. In line with the rise in the number of hungry, there has been a progressive growth in food imports in the

Transcript of Comprehensive Africa Afgriculture Development Programme (CAAD)

  • 1. AFRICAN UNIONNEPADComprehensive AfricaAgriculture DevelopmentProgrammeNew Partnership for Africas Development (NEPAD)

2. Process and scope of the Agriculture ProgrammeAt the invitation of the NEPAD Steering Committee,this document, which presents the ComprehensiveAfrica Agriculture Development Programme (CAADP)of NEPAD, has been prepared through the facilitationof the Food and Agriculture Organisation of the UnitedNations (FAO) in close collaboration with the NEPADSecretariat. It has followed a consultative process, thekey elements of which have been as follows: March 2002: Presentation of the main themes ofpotential CAADP contents by the Director General ofFAO to the NEPAD Heads of State ImplementationCommittee in Abuja, Nigeria; End April 2002: Circulation for review and commentof a first draft (at that stage as a summary and threeseparate papers). Distribution was to all AfricanMinisters of Agriculture and for African integration;the Heads of African Regional EconomicOrganisations; the Chairman and members of theNEPAD Steering Committee; the Heads of the AfricanDevelopment Bank and of other selected African sub-regionaldevelopment banks; the Head of the UNEconomic Commission for Africa; World Bank agri-cultureexperts; and for information to theOrganisation for African Unity; Early May 2002: Consolidation of the separate papersinto the unified Comprehensive Africa AgricultureDevelopment Programme document and integrationof the comments received on the April drafts; Mid-May 2002: Presentation of the first consolidat-eddocument for comment at the Maputo meetingof the NEPAD Steering Committee; End May 2002: Recasting of the CAADP draft to takeaccount of the proposals and comments of theNEPAD Steering Committee and circulation to thesame network of reviewers and commentators. June 2002: Meeting in Rome, Italy (9th June 2002)of African Ministers of Agriculture (joined by somemembers of the NEPAD Steering Committee) toreview the CAADP (See Annex 1).The International Fund for Agricultural Development,the World Food Programme, and the World Bank/Forum for Agricultural Research in Africa partnershiphave also offered important inputs, comments andsuggestions.The CAADP has been prepared to promote interven-tionsthat best respond to the widely recognised crisissituation of African agriculture. It has been cast todeliberately focus on investment into the followingthree mutually reinforcing "pillars" that can make theearliest difference to Africas dire situation: (a) extend-ingthe area under sustainable land management andreliable water control systems; (b) improving rural infra-structureand trade-related capacities for improvedmarket access; and (c) increasing food supply andreducing hunger. The CAADP also pays attention toemergencies and disasters that require food and agri-culturalresponses or safety nets; if ignored, the dislo-cationcaused by these can undermine or reverse devel-opmentachievements. In addition, it presents onelong-term "pillar" on agricultural research, technologi-caldissemination and adoption.In no way is the focus on these pillars intended to implythat other things, such as policy and institutionalreform, capacity building etc are not important.Indeed, these long-term enabling factors should beintegrated into implementation of all the "pillars".However, so deep is Africas agricultural crisis that pri-oritymust go to immediate action that can make theearliest difference and should make use of existingknowledge, capacity, and policy and institutionalarrangements. Action to address the African agricultur-alcrisis cannot await the achievement of ideal enablingconditions the past decades of undergoing structuralreforms of its economies, policies and institutions haveleft Africa with few discernible benefits for the majori-tyof its people; indeed, there may be no assurance oflong-term betterment from such reforms.Among frequent criticisms of this first version of theCAADP is the lack of explicit reference to gender. Asindicated in Chapter 5, "special attention must be givento the vital food-producing and entrepreneurial roles ofwomen in rural and urban African communities. Africanwomen account for substantial amounts of productionin both the informal and formal sectors." It is clearlyessential that gender be a core consideration in opera-tionalisingthe CAADP; at this stage, the broad pillarsare important for both men and women. With regard tolack of attention to the livestock and fisheries sectors(immediate potential) and to the forestry sector (long-termimportance for food security), it is proposed thatthe particular needs of these other land-using sectors betaken up in a linked but separate exercise in the nearfuture without holding back the action on crop produc-tionwhich can provide the most urgent calorie supply.With the broad lines of the CAADP now available,operationalisation needs to be launched this willrequire leadership by Africa itself, in the spirit of self-reliancethat is the hallmark of NEPAD. 3. Comprehensive AfricaAgriculture DevelopmentProgrammeNew Partnership for Africas Development (NEPAD)July 2003ISBN 0-620-30700-5 4. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)ii 5. Forewordby HE President Olusegun Obasanjo,Chairman of the NEPAD Implementation CommitteeiiiI am pleased to write this foreword on Africasframework for agriculture, NEPADs ComprehensiveAfrica Agriculture Development Programme (CAADP).The CAADP document is a product of a partnershipbetween NEPAD and the Food and AgricultureOrganisation (FAO) of the United Nations. It is also adirect result of invaluable contributions by multilateralinstitutions such as the International Fund forAgricultural Development (FAD), the World FoodProgramme, the World Bank and the Forum forAgricultural Research in Africa (FARA).This document is a result of extensive and thoroughconsultations with a wide range of stakeholders. It isimportant to emphasise, however, that, as a programmefor agriculture, CAADP is a dynamic document andmust remain open to continued improvement andinterpretation by each of Africas sub-regions in order tobest address our continents diverse needs.After nearly forty years of economic stagnation, withthe current food crises in the Horn of Africa, SouthernAfrica, and in Central Africa, African leaders areapplying themselves to finding sustainable solutions tohunger and poverty. NEPAD believes that agriculturewill provide the engine for growth in Africa.Improving agricultural performance is at the heart ofimproved economic development and growth, and itsrole in poverty eradication and in the restoration ofhuman dignity can never be over-emphasised. Toachieve this agricultural renewal in Africa, NEPAD isforging new partnerships, based on African ownership,with its traditional partners. More importantly, NEPADis encouraging Africans to utilise their own strengths,abilities, resources and political leadership to generatedevelopment and growth in their own countries and onthe continent.The Comprehensive Africa Agriculture DevelopmentProgramme (CAADP) is based on these principles andbears testimony to the high premium NEPAD places onagriculture. This framework clearly reaffirms that, as wecontinue to sharpen our focus on implementationstrategies of this world-acclaimed developmentinitiative, we have moved beyond the level of mererhetoric to the concrete and pragmatic stage ofimplementation. This programme must, therefore,guide our continents agricultural developmentinitiative as a framework for a concerted continentaleffort towards Africas development.I am hopeful that, through CAADP, we shall be ableto define new relationships that respond to the needsof Africa in innovative ways. Africa has the requiredpolitical will to make this happen. In partnership withthe international community, Africa will develop thecapacity necessary to achieve this goal.I would like to commend the individuals andinstitutions that worked tirelessly to craft this importantdocument, which is an embodiment of a programmethat will help Africa to reach the MillenniumDevelopment Goal of reducing hunger and poverty byhalf by 2015. The CAADP is both a timely idea and adream whose fulfilment deserves our unalloyedsupport and commitment.President Olusegun Obasanjo10 June 2003 6. CAMEROONNIGERIALIBYACENTRALAFRICANREPUBLICNIGERCHADALGERIAMALIWESTERN SAHARAMAURITANIAMOROCCOTUNISAEGYPTSUDANETHIOPIASOMALIACONGODEMOCRATICREPUBLICOF CONGOKENYAUGANDATANZANIAMADAGASCARANGOLANAMIBIASOUTHAFRICASWAZILANDZAMBIALESOTHOBOTSWANAZIMBABWEMALAWIMOZAMBIQUERWANDABURUNDIEQUATORIALGUINEADJIBOUTIGABONBURKINAFASOIVORYCOASTGHANASENEGALGUINEASIERRA LEONELIBERIABENINTOGOGUINEA BISSAUERITREATHE GAMBIASO TOM& PRINCIPECAPE VERDESEYCHELLESCOMOROSMAURITIUSNEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)ATLANTIC OCEAN INDIAN OCEANiv 7. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Contents1. Background ..................................................................................................... 12. Areas of Primary Action ................................................................................... 23. Investment Estimates ....................................................................................... 34. Africas Contribution to Investment.................................................................. 35. Enabling Conditions for Action ........................................................................ 4Underpinning Investments in African Agriculture and trade-related Capacitiesfor improved Market Access: A Continental Vision..................................................... 51.1. Introduction - Purpose of the Document......................................................... 51.2. Evolution of the CAADP Document ................................................................ 61.3. African Agriculture in Crisis.............................................................................. 61.4. Importance of Agriculture and Challenges in tapping its Potential ................... 71.4.1. Importance....................................................................................... 71.4.2. Challenges and Basis for Response ................................................... 71.5. NEPAD Overall Vision and Agriculture in Context .......................................... 81.6. A Vision for African Agriculture ....................................................................... 81.7. Enabling Conditions for African Agricultural Development............................... 91.8. Pillars for Priority Investment ............................................................................ 121.8.1. Pillar 1: Land and Water Management ............................................. 121.8.2. Pillar 2: Rural Infrastructure and Trade-related Capacities forImproved Market access ................................................................... 131.8.3. Pillar No 3: Increasing Food Supply and Reducing Hunger ................ 151.8.4. Pillar No 4: Agricultural Research, Technology Disseminationand Adoption ................................................................................... 171.9. Investment Levels and Strategies...................................................................... 171.9.1. Levels of Investment ......................................................................... 181.9.2. Africas own Investment ................................................................... 181.9.3. Public versus Private Investments ...................................................... 181.9.4. Partnerships...................................................................................... 191.10. Impacts............................................................................................................ 191.11. Moving from Dialogue to Action ..................................................................... 20Extending the Area under Sustainable Land Management andReliable Water Control Systems.................................................................................. 232.1. Introduction..................................................................................................... 232.2. Husbandry of Soil Resources ............................................................................ 242.3. Water Control and Management ..................................................................... 25vExecutive SummaryChapter 1Chapter 2 8. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)2.4. Assumptions and Investment Estimates............................................................ 252.4.1. Data and Information Sources .......................................................... 252.4.2. Typologies of Investment Interventions ............................................. 262.4.3. Assessing Unit Investment Costs ....................................................... 262.4.4. Describing the Current Situation....................................................... 272.4.5. Assessing a Possible Target for 2015 ................................................ 272.4.6. General Assumptions in the Calculations .......................................... 272.5. Towards a Common Strategy for Investment................................................... 272.6. Estimated Potential for Investment................................................................... 282.7. Moving Forward .............................................................................................. 30Improving Infrastructure and Trade-Related Capacities for Market Access .................. 313.1. Introduction..................................................................................................... 313.2. Role, Importance and Current Situation ........................................................... 333.2.1. Rural Infrastructure........................................................................... 333.2.2. Trade-related Capacities for Improved Market Access ....................... 363.3. Investment Strategy ......................................................................................... 403.3.1. Rural Infrastructure........................................................................... 403.3.2. Trade-related Capacities for Improved Market Access ....................... 413.4. Estimated Investment Requirements................................................................. 413.4.1. Basis of Estimates ............................................................................. 413.4.2. Total Investments.............................................................................. 433.4.3. Expected Impact ............................................................................... 443.5. Future International Support ............................................................................ 44Increasing Food Supply and Reducing Hunger: Strengthening National andRegional Food Security............................................................................................... 454.1. Introduction..................................................................................................... 454.2. Food Insecurity in Africa .................................................................................. 464.3. Strategies to Reduce Food Insecurity................................................................ 474.3.1. Preparedness and Response Capacity to Emergencies ....................... 474.3.2. Direct Assistance to the most Food Insecure..................................... 504.3.3. Programmes to enhance Food Security through Production.............. 514.4. Africa and the Special Programme for Food Security (SPFS).............................. 524.5. Funding Requirements ..................................................................................... 544.6. Regional Programmes for Food Security........................................................... 564.6.1. Trade Facilitation .............................................................................. 564.6.2. Harmonisation of Agricultural Policies............................................... 584.6.3. Support to National Programmes for Food Security for IncreasedProduction and Productivity.............................................................. 584.7. NEPAD and the Improvement of Food Security ................................................ 58viChapter 3Chapter 4 9. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Agricultural Research, Technology Dissemination and Adoption ................................. 595.1. The Challenge ................................................................................................. 595.2. Current Situation ............................................................................................. 605.2.1. Agricultural productivity is low and falling ........................................ 605.2.2. Increasing expenditure on agricultural research and extension.......... 605.2.3. Spending on agricultural research in Africa is stagnant..................... 605.2.4. Private sector research will not fill the gap........................................ 615.2.5. Agricultural research and extension services are not playingtheir important roles......................................................................... 615.3. Elements of Sustainability ................................................................................ 635.3.1. Political Commitment ....................................................................... 635.3.2. Financial ........................................................................................... 635.3.3. Institutional ...................................................................................... 635.3.4. Environmental and Social ................................................................. 645.4. Road to Sustainability ...................................................................................... 645.4.1. Technology Generation: Reform Agenda at the National Level ......... 645.4.2. Technology Adoption: Reform Agenda at the National Level ............ 665.4.3. Strengthening Regional and Sub-regional Research Systems............. 675.4.4. Even with these reforms, more funding is needed ............................ 685.5. The NEPAD Agricultural Research Agenda........................................................ 715.5.1 Challenges and Opportunities for Agricultural Research in Africa...... 715.5.2. Goals, Purposes and Objectives ........................................................ 725.5.3. Research Components...................................................................... 725.5.4. Co-ordination and Governance......................................................... 765.6. Creating an Enabling Environment for Agricultural Research for Development. 765.6.1. Expanding Partnerships with Policymakers,the Private Sector and NGOs ............................................................ 765.6.2. Information Sharing and its Role in Market Development ................. 775.6.3. Marketing and Trade ........................................................................ 775.6.4. The Role of African Women in Rural Development ........................... 785.7. Investments in Agricultural Research and Extension ......................................... 795.8. Next Steps ....................................................................................................... 79Annex 1: Consideration of the NEPAD Comprehensive Africa AgricultureDevelopment Programme by the Meeting of African Ministersof Agriculture ........................................................................................ 81Annex 2: Extracts from the G8 Africa Action Plan Released at theG-8 Summit in Kananaskis (Canada) that are Directly Relevantto NEPAD Agriculture............................................................................. 83Annex 3: Provisional List of Actions Required to Achieve Success inAgricultural Development Under NEPAD ................................................ 85viiChapter 5Annexes 10. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Figure 1: Public Agricultural Research Expenditures, 1976-1996 ........................... 61Figure 2: Current Funding Flows for Research and Extension Services................... 69Figure 3: New Funding Flows for Research and Extension Services........................ 69Text Box 1: NEPAD Agriculture and the Millenium Development Goals..................... 9Text Box 2: Selected Impediments to African Agricultural Renewal........................... 10Text Box 3: Creating a Positive Environment for Agricultural Development:possible NEPAD Principles....................................................................... 11Text Box 4: Governance and Consultative Forum Initiatives forAfrican Agriculture................................................................................. 22Text Box 5: NEPAD Action Programme on Infrastructure:Interface with Agriculture ...................................................................... 32Text Box 6: Farm Subsidies in Industrial Countries -the Case of the US Farm Bill .................................................................. 39Text Box 7: Africa Disasters and Emergencies with Food and AgricultureImplications - Insights from Selected International Organisations............ 48Text Box 8: Areas of Focus to Combat Africa's Food andAgriculture Emergencies ........................................................................ 51Text Box 9: Diversifying Rural Income - Rural Non-Farm (RNF)Income Opportunities ............................................................................ 53Text Box 10: Special Considerations for Fisheries and Forestry.................................... 54Text Box 11: Farm Power and Mechanisation ............................................................. 55Table 1: Orders of Magnitude for Africa's Contribution to Investment ................ 88Table 2: Estimates of Overall Investment ............................................................. 89Table 3: A Possible Scenario Regarding Financing Sources forAgriculture Under NEPAD....................................................................... 89Table 4: Gross Estimates of Investment by Source ............................................... 89Table 5: Soil Constraints...................................................................................... 90Table 6: Unit Investment Costs, US$.................................................................... 90Table 7: Estimated Investments in Irrigation in Main Regions, US$ Million........... 90Table 8: Projections for Water Management and Land Improvements 2015 ........ 91Table 9: Annual Investment and Maintenance Requirements to2015 (US$ Million)................................................................................. 91Table 10: Road Infrastructure in Africa, by Sub-Region.......................................... 92Table 11: Road Infrastructure in Africa Compared toOther Developing Regions ..................................................................... 92Table 12: Infrastructure Africa in World Perspective............................................ 92Table 13: Rural Road Networking in Selecting African Countries in theHumid and Semi-Humid Tropics (Hst) ..................................................... 93viiiList of FiguresList of Text BoxesList of Tables 11. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Table 14: Existing Stock of Roads to Rehabilitate andNew Roads to 2015 ('000 Km)............................................................... 93Table 15: Investments for Rural Infrastructure and Trade-RelatedCapacities for Improved Market Access.................................................. 94Table 16: Maintenance Requirements for all Categories of Rural Infrastructure ..... 94Table 17: Projections of Total Investment Requirements forRural Infrastructure and Trade-Related Capacities forImproved Market Access By 2015 .......................................................... 94Table 18: Annual Investment and Maintenance Requirements to2015 (US$ Million)................................................................................. 95Table 19: Projections by Source of Financing (Excluding Trade-RelatedCapacities for Improved Market Access )................................................ 95Table 20: Projections By Source of Financing (Excluding Trade-RelatedCapacities for Improved Market Access )................................................ 95Table 21: Population, Per Capita Dietary Energy Supply andPrevalence of Under-Nourishment.......................................................... 96Table 22: SPFS Funding Requirement Based on Regional Groupings ...................... 96Table 1: Details of Investment Requirements by Objective and Time Horizon....... 97Table 2: Investment Projections for Water, Land and Rural Infrastructure andTrade-Related Capacities for Improved Market Access(by Geographical Sub-Region) (US$ Billion) ............................................ 98Table 3: Investment Projections for Water, Land and Rural Infrastructureand Trade-Related Capacities for Improved Market Access(by Regional Group) (US$ Million) .......................................................... 98Table 4: Annual Investment and Maintenance Requirements to2015 (US$ Million)................................................................................. 99Table 5: Projections by Source of Financing for Land and Water Investments ...... 100Table 6: Annual Funding Requirements for National SPFS, Based on RegionalEconomic Organisation Groups (US$ Million) ......................................... 101Table 7: Annual Funding Requirements for Regional SPFS (i.e. RPFS) ................... 101Table 8: Total Annual Funding Requirements for National Programmes andRural Economic Organisation (US$ Million) ............................................ 101Table 9: Africa Estimates of Investments (Both Sub-Saharan andNorth Africa Included)............................................................................ 102ixList ofAppendix Tables 12. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Published by:New Partnership for Africas Development (NEPAD)P O Box 1234, Halfway House1685MidrandSouth AfricaTel: 011 313 3716International +27 11 313 3716Website: http//www.nepad.orgNEPAD Secretariat: Principal Programmes CoordinatorS.T. DogonyaroTel: 011 313 3789International +27 11 313 3789E-mail: [email protected] Secretariat: Agricultural AdvisorR.M. MkandawireTel: 011 313 3153International +27 11 313 3153E-mail: [email protected] with technical support from the United Nations Food andAgriculture Organisation (FAO), Rome, Italy: July 2003Photographs courtesy of FAO, Department of Agriculture, South Africaand Land Bank of South AfricaNEPADNEPAD welcomes the use of the contents of this publication by researchers,news media and other publications, but would appreciate acknowledgement of the source.ISBN 0-620-30700-5DesignColin Bridgeford and Gillian HowardReproduction and PrintHot Dot Print (Pty) Ltdx 13. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Executive SummaryView of slow-forming terraces with scattered rural housing, Rwanda11. BackgroundAfrican Ministers of Agriculture met at FAOHeadquarters in Rome, Italy on 9th June 2002 underthe auspices of the FAO Regional Conference forAfrica. The purpose of their special follow-up sessionwas to review an earlier draft of this document theComprehensive Africa Agriculture DevelopmentProgramme (CAADP) - prepared by FAO in co-operationwith the NEPAD Steering Committee. Extracts from thereport of their meeting are produced as Annex 1. It canbe seen that the Conference welcomed and endorsedthe CAADP and agreed on the need to quicklyoperationalise it; it offered guidance to membergovernments on a wide range of aspects ofoperationalisation and action to revitalise Africanagriculture. What follows is the full CAADP documentafter some adjustment to reflect some commentsreceived on the version presented to the Ministers,including their desire to see research included as a pillarfor action.Clearly, a programme on agriculture must remainopen to continuing improvement and also be open tointerpretation for each of Africas sub-regions in orderto best address that continents diversity. Thisdocument therefore offers a broad frame of prioritiesfrom which more precise strategies and programmescan be derived for operationalisation.Africa is a rural continent and agriculture is extremelyimportant to it. For the region as a whole, theagricultural sector accounts for about 60 percent of thetotal labour force, 20 percent of total merchandiseexports and 17 percent of GDP. The latest figures (for1997-99) show that some 200 million people or 28percent of Africas population are chronically hungry,compared to 173 million in 1990-92. While theproportion of the population facing hunger is droppingslightly, the absolute numbers are rising inexorably.During the 1990s, declines in the number of hungrypeople have been registered in only 10 countries. Atthe end of the 1990s, 30 countries reported that over20 percent of their population was undernourishedand in 18 of these, over 35 percent of the populationwas chronically hungry. As of 2001, about 28 millionpeople in Africa were facing food emergencies due todroughts, floods and strife, of which some 25 millionneeded emergency food and agricultural assistance. Toreflect its particularly difficult situation, the World FoodProgramme - which accounts for two-fifths ofinternational food aid - has spent US$12.5 billion (45percent of its total investment since its establishment)in Africa and 50 percent of its investment in 2001.Food aid indicates considerable external dependency:in 2000 Africa received 2.8 million tons of food aid,which is over a quarter of the world total.In line with the rise in the number of hungry, therehas been a progressive growth in food imports in the 14. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)2last years of the 20th century, with Africa spending anestimated US$18.7 billion in 2000 alone. Imports ofagricultural products have been rising faster thanexports since the 1960s and Africa as a whole has beena net agricultural importing region since 1980.Agriculture accounts for about 20 percent of totalmerchandise exports from Africa, having declined fromover 50 percent in the 1960s.Until the incidence of hunger is brought down and theimport bill reduced by raising the output of farm productswhich the region can produce with comparativeadvantage, it will be difficult to achieve the high rates ofeconomic growth to which NEPAD aspires. Peoplesuffering from hunger are marginalised within theeconomy, contributing little to output and still less todemand. Investing in the reduction of hunger is a moralimperative but it also makes economic sense. Agriculture-leddevelopment is fundamental to cutting hunger,reducing poverty (70 percent of which is in rural areas),generating economic growth, reducing the burden offood imports and opening the way to an expansion ofexports.2. Areas of Primary ActionAs currently formulated, the proposed initiatives underthe NEPAD Comprehensive Africa AgricultureDevelopment Programme (CAADP) focus oninvestment in three "pillars" that can make the earliestdifference to Africas agricultural crisis, plus a fourthlong-term pillar for research and technology. Thefundamental mutually reinforcing pillars on which tobase the immediate improvement of Africasagriculture, food security and trade balance are: Extending the area under sustainable land manage-mentand reliable water control systems. Relianceon irregular and unreliable rainfall for agriculturalproduction is a major constraint on crop productivity;rain-fed agriculture is moreover often unable topermit high-yield crop varieties to achieve their fullproduction potential. Accordingly, it is of concernthat for Africa the percentage of arable land that isirrigated is 7 percent (barely 3.7 percent in Sub-Saharan Africa) while the corresponding percentagesfor South America, East and South-East Asia andSouth Asia are 10 percent, 29 percent and 41percent respectively. Furthermore, in Africa 16percent of all soils are classified as having lownutrient reserves while in Asia the equivalent figure isonly 4 percent; moreover, fertiliser productivity(expressed in terms of maize yield response) in Africais estimated at some 36 percent lower than in Asiaand 92 percent lower than in developed countries.Building up soil fertility and the moisture holdingcapacity of agricultural soils and rapidly increasingthe area equipped with irrigation, especially small-scalewater control, will not only provide farmerswith opportunities to raise output on a sustainablebasis but also will contribute to the reliability of foodsupplies. Improving rural infrastructure and trade-relatedcapacities for market access. Improvements in roads,storage, markets, packaging and handling systems,and input supply networks, are vital to raising thecompetitiveness of local production vis--vis importsand in export markets. Investment in these areas willstimulate the volume of production and trade, therebyassisting to generate an appropriate rate of return onneeded investments in ports and airport facilities. Ingeneral, Africa urgently needs infrastructureimprovements for development, given that it faces thelongest distances to the nearest large markets and thata fifth of its population is landlocked. Its rail freight isunder 2 percent of the world total, the marine freightcapacity is 11 percent (much being foreign owned butregistered for convenience in Africa), and air freight isless than 1 percent; similarly, its power generationcapacity per capita is less than half of that in eitherAsia or Latin America. In parallel with improvements ininfrastructure within Africa, adjustments are needed inthe promotion and support (including subsidy) policiesof developed countries. Exporting countries within theregion need to raise their capacity to participate intrade negotiations and to meet the increasinglystringent quality requirements of world trade. Increasing food supply and reducing hunger. Africacurrently lags behind all other regions in terms of farmproductivity levels, with depressed crop and livestockyields and limited use of irrigation and other inputs. Byaccessing improved technology much of which issimple and relatively low in cost small farmers canplay a major role in increasing food availability close towhere it is most needed, raising rural incomes andexpanding employment opportunities, as well as incontributing to a growth in exports. This requiresimproved farm support services, pilot projects targetedat poor communities and a supportive policyenvironment.A sub-component of this pillar is for investment torespond to the growing frequency and severity ofdisasters and emergencies; it calls for someattention to the fact that rapid humanitarianinterventions followed by rehabilitation are requiredbefore normal development can resume. IFADrecently observed1 that in addition to naturaldisasters, over 50 countries were facing or hadrecently undergone civil or cross-border conflicts,1 IFAD, 1998: IFAD Framework for bridging post-crisis recovery and long-term development. International Fund for Agricultural Development, Rome. ExecutiveBoard, 64th session, Document EB 98/64/R.8. From http://www.ifad.org/ 15. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)3including some 20 of the poorest countries. As aresult, more aid is being diverted to emergency reliefthan to necessary long-term development; IFAD alsonoted a troubling gap in the transition from relief todevelopment. There is need for action to ensure thatshort-term interventions are followed up by long-termdevelopment. Furthermore, achieving animmediate impact on hunger also requires that theproduction-related investments be complemented bytargeted safety nets. Failure to attend to unpredictableneeds and to providing safety nets can easily deraillong-term development. However, the actuarial basisfor dimensioning investment is too weak. For lack ofbetter information, therefore, Africa at this stageneeds to provide at least some US$3 billion annually(proposed until 2015). Together, the "investment" insafety nets and humanitarian/emergency food andagriculture would require some US$42 billionbetween 2002 and 2015.Further, to provide the scientific underpinningnecessary for long-term productivity and competitiveness,there is a fourth pillar, namely: Agricultural research, technology disseminationand adoption. This long-term pillar, which aims atachieving accelerated gains in productivity, willrequire: (a) an enhanced rate of adoption for themost promising available technologies, to supportthe immediate expansion of African productionthrough the more efficient linking of research andextension systems to producers; (b) technologydelivery systems that rapidly bring innovations tofarmers and agribusinesses, thereby making increasedadoption possible, notably through the appropriateuse of new information and communicationtechnologies; (c) renewing the ability of agriculturalresearch systems to efficiently and effectivelygenerate and adapt new knowledge andtechnologies, including biotechnology, to Africa,which are needed to increase output and productivitywhile conserving the environment; and (d)mechanisms that reduce the costs and risks ofadopting new technologies. For the period 2002 2015, a total investment of some US$4.6 billionis estimated.3. Investment EstimatesThe implementation of the programme will beundertaken at regional level in co-operation withregional economic organisations and unions and alsoat national level. NEPAD can add value to nationalaction by promoting the convergence of countryprogrammes towards complementary or sharedpriorities. This would enable African producers to avoidinadvertently undermining each other in theinternational marketplace and, instead, collaborativelycarve out a significant market share for selectedproducts in which the region can be competitive.Preliminary estimates suggest that the investmentrequired in the main pillars between now and 2015would have the orders of magnitude given belowand in Table 2. Converting the investments into realitywill involve the formulation of specific bankableprojects, a task in which NEPAD may wish to involve itsexternal partners as Africa pursues their implementation.The total outlay for the period 2002 to 2015 (includingoperations and maintenance) for the four pillars issome US$251 billion, apportioned as follows: Extending the area under sustainable land man-agementand reliable water control systems:Increasing the area under irrigation (new andrehabilitated) to 20 million ha and improving landmanagement in the same area would require US$37billion. Operation and maintenance would require anadditional US$31 billion. Improving rural infrastructure and trade-relatedcapacities for market access: US$92 billion ofwhich US$62 billion would be for rural roads andUS$2.8 billion for trade-related capacities forimproved market access. The protection ofinfrastructure investments would require additionalallocations for continuing operation and maintenance,totalling some US$37 billion over the period. Increasing food supply and reducing hunger:Raising the productivity of 15 million small farmsthrough improved technology, services and policies:US$7.5 billion. There is a "sub-pillar" for emergenciesand safety nets, requiring some US$42 billion. Agricultural research, technology disseminationand adoption: A total of US$4.6 billion.The above implies an annual investment in coreactivities under the four "pillars" of some US$17.9billion between 2002 and 2015, including operationsand maintenance costs. As can be seen, the CAADPpays attention to safety nets and emergency-relatedfood and agriculture.It is noteworthy that the gross 2002-2015investment requirement, at US$17.9 billion perannum, is equivalent to just over 90 percent of Africasannual cost of agricultural imports of nearly US$19billion. The safety nets component of this investmentincludes programmes such as school-feeding, designedto increase school attendance, especially for girls, andto provide nutritious food to the poorest of Africasschool age children. Table 4 shows one scenario ofinvestment apportioned among various main sources.4. Africas Contribution to InvestmentIt is believed that an important part of the requiredfunding can come from investments by the bene-ficiariesthemselves and from domestic resourcemobilisation. For many countries, however, additionalOfficial Development Assistance (ODA) and private 16. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)4inflows will be required, in line with the spirit ofMonterrey. Indeed, in connection with Monterrey, thethree Rome-based UN agencies for food andagriculture issued a joint statement communicating avision of shared responsibility2.Africas own commitment to funding agricultureshould be seen against a background of re-emerginginternational recognition that the funding ofagriculture is vital for sustainable development.Worldwide, industrial countries (which can easily dowithout agriculture and still prosper), continue tofinance their agricultural sectors heavily. Yet Africa,with some 70-80 percent of its people dependent onthis sector, is withdrawing state support from thesector; the evidence is that the consequences aregrave. Financing for agriculture under this NEPADCAADP is therefore based on the dual assumption thatAfrica itself will increase its level of investment and thatits external partners will come forward and support it.On this basis, the CAADP presents a preliminaryestimation of what Africa itself can reasonably afford toinvest, leaving the rest to be raised at the internationallevel. The broad assumptions given in Chapter 1suggest that Africa should progressively increase itsdomestic contribution to agricultural investment from acurrent base estimated at somewhere over 35 percentto some 55 percent by 2015. Under this scenario,Africas expected contributions to investment underNEPAD agriculture could be summarised as shown inTables 1 and 4. These estimates exceed by aconsiderable margin the levels of investment observedto date (see Appendix Table 9). It should be noted thatthe African share covers both public and privatefunding. To achieve the suggested increase in practicewill require the deliberate insertion of NEPAD allocationsinto national and regional economic groupingsbudgets; more importantly, it will require putting inplace policies that can make agricultural investmentsattractive to both the regions own private sector andto international capital.5. Enabling Conditions for ActionMuch of the investment under the main pillars is intothe "hardware" of development it is intended torespond to the crisis situation facing African agriculture.Yet Africa also needs to address many other "software"issues if it is to permanently reverse the declining trendsof the agricultural sector. A brief outline of these"software" concerns many focused on creating anenabling environment3 - is presented in Chapter 1.In the preamble, it has been stressed that enablingfactors require medium to long term attention and thatAfrica needs to continue paying attention to them evennow when rapid action may appear to be all that isneeded. It has also been said that the rapid actionproposed is possible because there is already someavailable capacity, technology and enabling policy /institutional factors upon which the priority investmentpillars approach can be based. Thus in justifying thefocus on investment for action under the mutuallyreinforcing "pillars" that can make the earliestdifference to Africas dire situation, the preamble hasstated that science and technology, policy andinstitutional reform, capacity building and other long-termenabling factors should be integrated into theimplementation of all the "pillars".It is an underlying assumption that the creation ofenabling conditions will go hand in hand withinvestment, otherwise it becomes an empty exercise,with little hope of success or of acceptance by Africa.Thus, for example, to a considerable degree due to lackof accompanying investment, the decades-long effortsat structural adjustment of African economies, policiesand institutions have shown few discernible benefits,except in isolated cases.2 FAO / IFAD / WFP (2002): Reducing poverty and hunger: the critical role of financing for food, agriculture and rural development. Paper prepared for theInternational Conference on Financing for Development, Monterrey, Mexico, 18-22 March 2002. The report (revised version, May 2002, page 4-5) states, inter alia:"The responsibility for escaping from hunger and poverty rests first and foremost with the individuals themselves, and then with their families, communities andgovernments. . . . . The proportion of public expenditure which developing countries now devote to agricultural and rural development and food security is,however, far from adequate, especially in countries where food deprivation is higher, implying a need to adjust public finance policies. However, the internationalcommunity has important roles in supporting national endeavours, . . . . . especially those of low income countries, to meet the costs of the necessary investmentsto the extent that these cannot be met by their own resources."3 It may be noted that in its Action programme for Africa, the Kananaskis Summit of the G8 (25-27 June, 2002) also focused on enabling conditions as reproducedin the extracts of Annex 2. This focus makes the support of Africas potential leading external partners complementary to the immediate action focus of theCAADP. The two approaches can be synergistic and it is hoped that no party will seek to pursue one as an alternative to the other but as mutually reinforcingareas of emphasis. 17. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)1CHAPTERUnderpinning Investments in African Agriculture and trade-relatedCapacities for improved Market Access: A Continental VisionComputerisation of market price data at the Agriculture Market Information Centre,Ministry of Agriculture, Food and Fisheries, Zambia51.1. Introduction - Purpose of the DocumentThis document, which presents the ComprehensiveAfrica Agriculture Development Programme (CAADP)of NEPAD, is directed at Africas policymakers inNEPADs own institutions; at national policymakers inboth public and private sectors; at those who influencepublic opinion through non-governmental institutions;at academia and think-tanks concerned with Africasdevelopment; and at officials in the development co-operationagencies of donor and multilateral bodies. Itwas prepared to present broad themes of primaryopportunity for investment to reverse the crisissituation facing Africas agriculture, which has madethe continent import-dependent, vulnerable to evensmall vagaries of climate, and dependent to aninordinate degree on food aid.This document is not a blueprint, nor is it a manualfor stepwise action to uplift African agriculture. It isalso not a shopping list of projects indeed, it has nospecific project on offer for investors4. Its main purposeis to sensitise policymakers to the need to act onselected fronts in order to make a quick difference toAfricas agricultural malaise, namely: to pay immediate attention to the management anduse of water for agriculture so that the importanttask of food production is not at the mercy of fickleweather; in order to ensure competitiveness, to invest in betterinfrastructure to facilitate access to rural areas andthereby reduce the costs of production, storage andthe extraction of produce to markets. In parallel withthis, they should pay attention to trade-related4 A minor exception is Chapter 5 on research and technology, which outlines five uncosted projects. 18. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)6capacity building so as to enhance Africas marketaccess; to apply modern productivity-enhancing practices atfarm level, using properly adapted approaches testedunder the special programme for food security; to build readiness and response capacity to naturaland man-made disasters which, if left unattended,can undermine or reverse any gains in productivitythat the other interventions can achieve; and to support research, development and the promotionof adoption as an important long-term guarantor ofproductivity and therefore competitiveness.The document title promises a "comprehensive"programme but in fact its contents deliberately focuson a few pillars of action that can most rapidly enableAfrica to be more productive in agriculture. Thedecision to focus on what makes the earliest differenceto the crisis is easily justified, given that Africa, thecontinent that is the worlds poorest, receives a quarterof global food aid shipments, spends nearly US$19billion annually on agricultural imports and suffersmost from man-made and natural disasters that requirefood and agricultural responses.However, Africa can at the same time not afford toignore globally recognised lessons which show thatdevelopment is easiest if the environment for it is right:appropriate knowledge and human capacities, supportivepolicies, laws, institutions and attitudes all these, as wellas capacity, are important. Thus, while stressing the pillarslisted above for immediate action, the CAADP makesreference to enabling conditions but leaves furtherelaboration for other documents and for the longer term.One exception is made: the issue of research andtechnology. It has been the strong view of the NEPADSteering Committee and of the June 2002 meeting ofAfricas ministers responsible for agriculture that theCAADP needs to include a pillar on this crosscutting need,even though its benefits only occur in the long term.1.2. Evolution of the CAADP DocumentAs indicated in the preamble, this document has, at theinvitation of the NEPAD Steering Committee, beenprepared by FAO in co-operation with the NEPADSecretariat. It has been prepared following aconsultative process, the key elements of which are setout in the box at the beginning of the document.1.3. African Agriculture in CrisisAfrica, most of whose people are farmers, is unable tofeed itself and has been in this situation for manydecades now. The number of chronically under-nourishedpeople has risen from 173 million in 1990-92 to some 200 million in 1997-99. Of these, 194million (34 percent of the population) are in Sub-Saharan Africa.At the same time, there has been a progressivegrowth in food imports in the last years of the 20thcentury, with Africa spending an estimated US$18.7billion in 2000. Africas share of global agriculturalimports in 1998 was 4.6 percent. Its share ofdeveloping country imports was 16.3 percent.Agricultural imports account for about 15 percent oftotal African imports. It is of particular concern that theshare of gross export revenues needed for importingfood has increased from 12 percent to over 30 percentin East Africa. Part of Africas "imports" is food aid,with the continent receiving 2.8 million tons in 2000. Inthe mid-1990s, out of the world total of 32 millionvictims of disasters receiving relief assistance from theWorld Food Programme (WFP), 21.5 million were livingin Africa. In 2001, the number of people suffering fromfood emergencies ranged between 23 and 28 million.In terms of exports too, agriculture has generallyperformed poorly, with the relative share of Africanagricultural exports in world markets falling from 8percent in 1971-80 to 3.4 percent in 1991-2000. Thevalue of agricultural exports, which amounted toUS$14 billion in 2000, is growing extremely slowly,having been US$12 billion in 1990.Food insecurity is greatest in Sub-Saharan Africa.Between 1990-92 and 1997-99 daily per capita dietaryenergy supply in Sub-Saharan Africa rose slightly from2120 to 2190 kcal. The number of chronically under-nourishedpeople, however, increased from 168 to 194million during the same period. Imports of cereals bySub-Saharan countries are estimated at some 17million tons in 2000, including 2.8 million tons of foodaid. Much of the solution to poor nutrition lies withexpanding production in Africa itself: it may be notedthat globally, even after the doubling of world grainsupplies, the share of trade in total grain consumptionhas remained stable at about 10 percent. Thus, by andlarge, most of the worlds food consumption takesplace in the countries in which it is produced. In low-incomecountries, this dependence on production toensure adequate food supplies is more acute.This food shortage is a source of enormous concern.It is estimated that if the self-sufficiency ratio in Sub-Saharan Africa is to stay the same in 2015 as in 1995-97 (about 85 percent), the sub-continent will have tomeet 118 million tons of its projected needs of 139million tons of cereals through increased production inthe region itself, requiring a substantial increase inoutput. These stark realities highlight the huge scale ofthe problem.It is, however, also possible to look at the food gapas a tremendous opportunity. The existence of suchlarge shortfalls provides a potential market for smallfarmers, amongst whom poverty and hunger areconcentrated, to expand their output and improve theirlivelihoods, in turn enabling countries to reduce theirimport dependence. For this to happen in a situation ofincreasingly liberalised international markets, however,farming within the Region must become morecompetitive. 19. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Filling sacks for food distribution, Ghana7Until the incidence of hunger is brought down andthe enormous cost of importing food supplies isreduced by raising the output of farm products whichthe region can produce with comparative advantage,there is little prospect of achieving the high rates ofeconomic growth to which NEPAD aspires. Peoplesuffering from hunger are marginalised within theeconomy, contributing little to output and still less todemand; they are also constantly vulnerable to shocks.Agriculture-led development is fundamental to cuttinghunger, reducing poverty, generating economicgrowth, reducing the burden of food imports andopening the way to an expansion of exports.1.4. Importance of Agriculture and Challenges intapping its Potential1.4.1. ImportanceAgriculture, providing 60 percent of all employment,constitutes the backbone of most African economies;in most countries, it is still the largest contributor toGDP; the biggest source of foreign exchange, stillaccounting for about 40 percent of the continentshard currency earnings; and the main generator ofsavings and tax revenues. The agricultural sector is alsostill the dominant provider of industrial raw materials,with about two-thirds of manufacturing value-added inmost African countries being based on agricultural rawmaterials. Agriculture thus remains crucial foreconomic growth in most African countries.The rural areas, where agriculture is the mainstay ofall people, support some 70-80 percent of the totalpopulation, including 70 percent of the continentsextremely poor and undernourished. Improvement inagricultural performance has potential to increase ruralincomes and purchasing power for large numbers ofpeople. Thus, more than any other sector, agriculturecan uplift people on a mass scale. With greaterprosperity, the consequent higher effective demand forAfrican industrial and other goods would inducedynamics that would be a significant source ofeconomic growth.To ensure the best contribution, it is important thatdevelopment initiatives under any component of theNEPAD framework be supportive of or compatible withagriculture, given its fundamental role in economicdevelopment in Africa. For example, NEPADs activities ongood governance, infrastructure, policy reform, humanresources development etc., all help to create an enablingenvironment for farmers to contribute more to Africaseconomic development. In short, agriculture must be theengine for overall economic growth in Africa.1.4.2. Challenges and Basis for ResponseHowever, there should be no illusion of quick fixes ormiracle paths towards African self-reliance in food andagriculture. Achievement of a productive and profitable 20. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)8agricultural / agro-industrial sector will require Africa toaddress a complex set of challenges, including thefollowing: low internal effective demand due to poverty; poor and un-remunerative external markets (withdeclining and unstable world commodity prices andsevere competition from the subsidised farmproducts of industrial countries); vagaries of climate and consequent risk that detersinvestment; limited access to technology and low human capacityto adopt new skills; low levels of past investments in rural infrastructure(such as roads, markets, storage, rural electrification,etc.) essential for reducing transaction costs infarming and thereby increasing its competitiveness inserving production, processing and trade; and institutional weaknesses for service provision to theentire agricultural chain from farm to market.Furthermore, Africa will also need to improve thepolicy and regulatory framework for agriculture tomake it more supportive of both local communityparticipation in rural areas and commercial privatesector operations. It will need to improve governance,in terms of giving a voice to both small and large-scaleplayers in the farming community.If such constraints are eased through a combinationof actions, a virtuous cycle can be started of reducedhunger, increased productivity, increased incomes andsustainable poverty reduction. All the above requirecommitment of a high order. Regrettably, the pastdecades have revealed that Africas governmentsthemselves as well as bilateral and multilateraldevelopment partners pay little attention to agricultureand rural development. Many African governments arereported to allocate as little as less than 1 percent oftheir budgets to this sector. The World Bank, a primefunding source for Africa, had 39 percent of its lendinggoing to agriculture in 1978, but only 12 percent in1996 and further down to 7 percent in 2000.1.5. NEPAD Overall Vision and Agriculturein ContextThe New Partnership for Africas Development(NEPAD), hitherto known as the New African Initiative,resulted from the merger of the Millennium Partnershipfor the African Recovery Programme (MAP) developedby Presidents Mbeki of South Africa, Obasanjo ofNigeria, Bouteflika of Algeria and Mubarak of Egypt,and the Omega Plan proposed by President Wade ofSenegal. A core group of five countries namely, SouthAfrica, Nigeria, Senegal, Algeria and Egypt, and anImplementation Committee of 15 Heads of Statespearhead the NEPAD. South Africa hosts theSecretariat of NEPAD. The President of Nigeria chairsthe Implementation Committee of 15 Heads of Stateand Government, with those of Senegal and Algeriaserving as Vice-Chairs. Under NEPAD, which is a projectof the Organisation of African Unity / African Union,African Heads of State and Government have adoptedan overall vision of Africas development, which states"We agree on the overall vision of Africasdevelopment: a prosperous continent free of conflict inwhich all our people can fulfil their potential, thatparticipates effectively in the global economy on anequal footing".Realising that Africa can only take its proper place inthe international community if it gains economicstrength, African Heads of State and Government haveset an ambitious target of 7 percent annual growthrate in GDP over the next 20 years to eradicate poverty,achieve food security and build the foundations ofsustainable economic development on the continent.NEPAD, which seeks to complement other Africaninitiatives and to use existing frameworks for action,concentrates on priorities organised under two broadthemes: Peace, security, democracy and politicalgovernance and Economic and corporate governance.Specific themes include: Peace, security; Democracy and political governance; Infrastructure; Human resources (education, skills development,reversing the brain drain); Health; Agriculture; Access to markets; Environment; Culture; Science and technology.For all these, NEPAD intends to mobilise domestic andexternal resources and to establish new forms ofpartnership with the domestic and internationalcommunities.1.6. A Vision for African AgricultureWithin the overall vision of NEPAD, the vision forAfrican agriculture should seek to maximise thecontribution of Africas largest economic sector toachieving the ambition of a self-reliant and productiveAfrica that can play its full part on the world stage.In essence, agriculture must, within NEPAD, deliverbroadly based economic advancement to which othereconomic sectors, such as petroleum, minerals andtourism, may also contribute significantly, but whichthey cannot achieve on the mass scale that agriculturehas the potential to do. The NEPAD goal for the sectoris agriculturally-led development which eliminateshunger and reduces poverty and food insecurity,thereby enabling the expansion of exports and puttingthe continent on a higher economic growth pathwithin an overall strategy of sustainable developmentcoupled with preservation of the natural resource base. 21. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Text Box 1: NEPAD Agriculture and theMillennium Development GoalsIn the year 2000, African countries signed up to theMillennium Declaration. The Declaration, whichdefined eight Millennium Development Goals(MDGs) and 18 more detailed targets, represented adetermination by all governments to create anenvironment, at the national and international levels,which is conducive to development and theelimination of poverty by 2015. The MDGs, andparticularly the goals of eradicating extreme povertyand hunger and ensuring environmentalsustainability, are crucial to the NEPAD programmefor African agriculture: specifically, member countriesshould expect NEPAD interventions to fall within theframework of the MDGs and contribute to theirachievement.In Africa as elsewhere in the developing world,Poverty Reduction Strategies are increasingly used atthe national level as the vehicle through whichgovernments seek to operationalise their agricultureand rural development strategies. There is, therefore,a clear two-way relationship between the NEPADprogramme for African agriculture and the PovertyReduction Strategies: on the one hand, the contentsof the national strategies will determine the contentof NEPADs approach to agricultural development,while on the other hand, NEPAD can be increasinglyexpected to inform the preparation and revision ofPoverty Reduction Strategy Papers (PRSPs).The vision for agriculture is that the continent should,by 2015: Attain food security (in terms of both availability andaffordability and ensuring access of the poor toadequate food and nutrition); Improve the productivity of agriculture to attain anaverage annual growth rate of 6 percent, withparticular attention to small-scale farmers, especiallyfocusing on women; Have dynamic agricultural markets between nationsand regions; Have integrated farmers into the market economy,including better access to markets, with Africa tobecome a net exporter of agricultural products; Achieve the more equitable distribution of wealth; Be a strategic player in agricultural science andtechnology development; and Practice environmentally sound production methodsand have a culture of sustainable management of thenatural resource base (including biological resourcesfor food and agriculture) to avoid their degradation.1.7. Enabling Conditions for AfricanAgricultural DevelopmentAfrica has some success stories and these demonstratethe enormous potential that the agricultural sector canoffer as an engine of economic growth. The NEPADprogramme recognises these, as also a wide range ofhurdles which must be surmounted if progress is to bemade in African agriculture, of which attention can bedrawn in particular to: limited incomes and thereforeconstrained markets; methods to ensure the large-scaleadoption of locally adapted agricultural technologies toremove the constraints to productivity; methods to helpthe predominantly small-scale producers to becomecompetitive in a world dominated by large-scaleproducers, many of whom are subsidised; ways ofbringing about institutional innovations that will enablethe African agricultural community to maintain efficientand dynamic, demand-driven, participatory and pluralisticsystems; and methods to cope with climatic uncertaintyand lack of access to irrigation. Africa also facesinadequate and inefficient agricultural systems and weakinstitutional support (including in research and extension).For many African countries, the following hard facts needattention if the agricultural environment is to be enabling: A sparse and dispersed domestic market which isexpensive to serve due to lack of concentrateddemand and respectable disposable incomes. An international market in which prices are falling andunstable; which is expensive to access (due to smallvolumes being traded and long distances from Africaslargely land-locked production sites); which demandssustained quantity and quality levels that Africa hasdifficulty in meeting; and in which subsidised large-scaleproducers pose direct competition. A production sector that is dominated by large numbersof unorganised producers, many of them unskilled andtherefore little able to absorb new technologies. The generally small scale of farmers, who have nocapital or access to the capital necessary to improveproduction and generate investable surpluses. The overt-hasty withdrawal of the state from directproduction functions in order to create and maintaina climate conducive to private sector initiatives,which, in the absence of a sound private sector, hascaused severe dislocation of production, farm tradeand farmer support services. Poorly defined property rights inadequate to satisfythe requirements of serious investors. Deterioration of the health status of farmers in partsof Africa with the advent of HIV/AIDS. The fact that African agriculture has for long beenstarved of investment. This prolonged neglect hasresulted in a poorly productive, uncompetitive anddeclining sector. The widespread hunger as well as thegrowing number of hard-core poor people in thecontinent are the distressing manifestations of thisdecline. In attracting limited investment, Africanagriculture mirrors the African economy in general,which is perceived to be uncompetitive, poorlyproductive and a risky venue for investment.Agriculture in particular is often considered unattractivein comparison with other options, even if the macroeconomic framework were to be corrected.9 22. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Text Box 2: Selected Impediments to AfricanAgricultural RenewalIntroduction: The widespread hunger as well as thegrowing number of hard-core poor people in the continentare the distressing manifestations of prolonged declinecaused by too limited investment. It is in view of the criticalneed for injection of new capital that investment is thefocus under the three "pillars" of the CAADP [land andwater management (Chapter 2); infrastructure and trade-relatedcapacities for improved market access (Chapter 3);and food security both as safety nets/response toemergencies and support to productivity increase inagriculture (Chapter 4)]. Much of this intervention willconsist of the "hardware" of agricultural development thatis essential in responding to the crisis the sector is facing.Yet Africa also needs to create enabling conditions topermanently reverse the decline and for this will need topay attention to many other "software" interventions.Some of the "software" weaknesses as presented herehave helped make the continents agriculture low inproductivity, uncompetitive, highly risky and dominated bylow-value primary commodities.Governance: Poor political and economic governanceare twin root causes of much of the malaise that afflictsAfrica. They create general political and economicuncertainty, an unpredictable environment for business,political unrest and, sometimes, even war that togethermake the pursuit of economic growth difficult. The issueof participation is also critical; IFAD observes for Westernand Central Africa that "First and foremost, the poorhave little or no voice in many major decisions affectingtheir livelihoods2"Policy and institutional weaknesses: Poor governancealso creates an environment inimical to efficientinvestment of human and material resources andundermines the formulation and implementation ofpolicies and laws that can accelerate the process ofeconomic growth and development. In the specific case ofagriculture and rural development (broadly defined),improvements are sorely needed to adapt to changingmarket conditions and food security priorities. This involvesovercoming institutional rigidities and ensuring coherenceof macro-economic frameworks. Policy, regulatory andinstitutional shifts are required to enable all levels offarming practice to have a stable engagement with naturalresources and markets. New capacities in both the publicand private sector are required; this calls for priority toinvestment in human and social capital. Systems of rightsand land tenure arrangements need updating togetherwith a reduction of gender-bias in policies.Technological stagnation: African agriculture facestechnological stagnation and needs to exit fromexcessive reliance on fickle weather conditions. It needsto increase the research and development effort as wellas extension outreach. For better capacity to progresstechnologically and to close the technology gap,however, improvement in the educational level of ruralpeople is probably the most critical precondition.Combating HIV/AIDS, which in some countries is rapidlydecimating the age groups with best potential fortechnologically upgrading agriculture, is essential.Weakness of entrepreneurship and the private sector:Many African countries have no local private sector to speakof in the agricultural and agro-industry sectors. While it isnow fashionable to speak of the African "smallholder" asthe regions true private sector, the reality gives cause forgreat concern. The African smallholder of today may beprivate but lacks education; has severely limited access tocommunications or physical infrastructure; suffers poorhealth and nutrition; lacks remunerative markets and accessto yield-enhancing inputs; and faces competition withproducts from abroad that have been subsidised by moremoney than s/he can ever dream of. This farmer mayconstitute a "private sector" but cannot stand alongsideand compete with multinational farming and agro-industrygiants that trade with Africa. Whether labelled as privatesector or otherwise, the smallholder farmer class also oftensuffers marginalisation, with no voice to influence policy infavour of its mainstay activity and to secure support servicesthat are tailored to its particular needs. Africa cannot affordto be lured into complacency by references to a largesmallholder private sector; it needs to develop a true ruralentrepreneurial capacity. Successful entrepreneurshiprequires fair prospects for competitive access to marketsboth at home and internationally and the information toenable the farmer get the best from such markets.HIV/AIDS: Sub-Saharan Africa is at the epicentre of theHIV/AIDS epidemic, where over 25 million people (some70% of the known global total) are living with HIV. Themajority of those who suffer the impact of the epidemiclive in the countryside and are extremely poor. The short-termeffects on production and income are staggering inthe labour-based economies of the poor. Whileproduction and incomes decline, families concurrentlyexperience dramatic rises in health and death-relatedexpenditures. The longer-term effects on the inter-generationaltransfer of knowledge, on traditional socialsecurity mechanisms, and on basic demographic andsocio-economic characteristics of these societies are likelyto be even greater. The HIV/AIDS epidemic is creating anew poverty dynamic. It is also partly driven by poverty,since this induces some people into high-risk situationsand activities such as prostitution and migrant activities poor women are particularly vulnerable. The gravity andscale of the HIV epidemic is such that developmentinterventions in all sectors and particularly those in therural areas where the majority of the affected live needto face the issue head on.Other concerns: The diversity of areas requiringattention is nearly limitless. From this can be selected: (a)inadequate targeting of attention on the particular needsof women who are the dominant agricultural producers,traders and nutrition providers in many parts of Africa;(b) limited specialisation in production and inadequatesignificance of any one country or of the region toinfluence global markets; (c) unclear definition of rolesamong the public, private and civil society institutions indevelopment; (d) poor harmonisation of agriculturaldevelopment promoting initiatives at national, sub-regionaland continental levels; (e) inability tosystematically mobilise savings for reinvestment; (f)disengagement from or poor performance of cash cropsthat were formerly important for rural incomes5 IFAD Strategy for rural poverty reduction in Western and Central Africa: http://www.ifad.org/operations/regional/2002/pa/pa.htm10 23. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Irrigation of a freshly ploughed field, Morocco11Text Box 3: Creating a Positive Environment forAgricultural Development: possible NEPADPrinciples1. Establish and maintain a sound macroeconomic policyframework and an open economy based on continuedand enhanced economic reforms, liberalised exchangeand trade systems and investment regimes,strengthened institutional, legal and regulatory sys-tems,reformed state institutions that operate withtransparency, accountability, competence andprofessionalism, and the rule of law.2. Ensure efficient physical infrastructure throughregulatory reforms, privatisation, and additionalinvestments in key infrastructure (including road/railtransport, tele-com-munications, power, ports,shipping and transit facilities), harness moderninformation and communications technology, andencourage private sector participation in infra-structurefinancing and operation.3. Encourage and promote the growth, diversificationand deepening of the financial sector so as to facilitatesavings mobilisation to meet the investment andworking capital requirements of business, within thecontext of a deregulated but prudentially supervisedsystem of financial intermediation.4. Remove obstacles to cross-border trade andinvestment, including harmonising tax and investmentcodes to promote regional integration.5. Undertake measures to enhance the entrepreneurial,managerial and technical capacities of the private sector.6. Strengthen national and sub-regional mechanisms forinvestment and trade promotion by disseminatinginformation about business opportunities, identifyingand targeting prospective investors and exportmarkets, servicing investors, and providing exportcredit and insurance schemes.7. Strengthen chambers of commerce, trade andprofessional associations and regional networks toprovide market information and training for theirmembers, in order to promote exports and investment.8. Organise dialogue between government and theprivate sector to develop a shared vision of economicdevelopment strategy and remove constraints toprivate sector development.9. Strengthen and encourage the growth of micro, small,and medium-scale industries through appropriatetechnical support from service institutions and civilsociety, and improve industries' access to capital bystrengthening micro-financing schemes, withparticular attention to women entrepreneurs.10. Provide assistance to improve the technical andmanagerial capabilities of business enterprises bysupporting technology acquisition, productionimprovements, and training and skills development.Source: Working for household food security andeconomic prosperity in Africa. National Department ofAgriculture (South Africa) on behalf of NEPAD Secretariat.[First NEPAD provisional agriculture strategy paper presented at 22nd FAO Regional Conference for Africa,Cairo, February 3 8, 2002 and later updated].Other impediments that should be corrected if theenvironment is to be enabling appear in Text Box 2. Text Box3 lists some specific measures that could be taken.Agriculture-relevant elements highlighted by the G-8 intheir Africa Action Plan (many of which relate to of theenabling environment rather than to action) are in Annex 2.A particularly thorny element of the enablingenvironment in many countries is the issue of accessingand controlling land. In Southern Africa, where theland holding structure remains profoundly inequitable,improvements in the condition of the rural poor willdepend on increased access to land; here programmesof fair, orderly and consensual land reform may beessential preconditions for sustainable agriculturaldevelopment. In other parts of Africa, the challengewill be to ensure that poor people continue to controltheir land in the face of pressures from outsiders who,so far, are in a better position to profit from marketdevelopment. This includes ensuring that women - theprincipal users of land - develop stronger rights overthe land they work. There will be a need to promotesecurity of access by the poor, individually and incommunities, in all areas where the rural poor perceiveemerging livelihood threats. 24. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)Irrigation of potato fields, Cape Verde121.8. Pillars for Priority InvestmentThe aforementioned description of African agriculturespeaks of crisis. It also demands a crisis response. Theproposed initiatives under the NEPAD ComprehensiveAfrica Agriculture Development Programme (CAADP),as currently formulated, thus focus on investment inthree "pillars" that can make the earliest difference toAfricas agricultural crisis. These pillars are land andwater management (Chapter 2); infrastructure andtrade-related capacities for improved market access(Chapter 3); and support to productivity-increasingactivity among small farmers in the context of foodsecurity programmes (Chapter 4). The long-termcapacity to maintain competitiveness by ensuring highproductivity is to be ensured by research anddevelopment, allied with technology dissemination forwidespread and effective adoption (Chapter 5).1.8.1. Pillar 1: Land and Water ManagementWorld-wide, the application of water and its manageduse has been an essential factor in raising theproductivity of agriculture and ensuring predictability inoutputs. Water is essential to bring forth the potential ofthe land and to enable improved varieties of both plants6 FAO. 2000. Agriculture Towards 2015/30 estimates.and animals to make full use of other yield-enhancingproduction factors. By raising productivity, watermanagement (especially when combined with adequatesoil husbandry) helps to ensure better production bothfor direct consumption and for commercial disposal,thereby enhancing the generation of economic surplusesnecessary for uplifting rural economies.Chapter 2 provides information on opportunities forAfrica to capitalise on the existence of about 874million hectares of its land considered suitable foragricultural production, amongst others by increasingthe managed use of water. It reports that the currentarea under managed water and land developmenttotals some 12.6 million ha6 , equivalent to only some8 percent of the total arable land. Currently, thepercentage of arable land that is irrigated is barely 3.7percent in Sub-Saharan Africa and 7 percent for allAfrica, given that 40 percent of the total irrigated areais in North Africa. These are the lowest percentages inthe developing world: the corresponding percentagesare 10, 29 and 41 for South America, East and South-East Asia and South Asia respectively. The chapter callsfor increased investment in land and water and makesthe point that protecting and improving water and thesoil makes good business sense. It indicates that by 25. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)13enabling a rapid increase in production, irrigation canmake food more readily available but that its impact onreducing hunger depends on appropriate arrangementsfor the poor to have access to irrigated land. It alsomakes the point that while increased irrigation is not apanacea for all agricultural ills, it nevertheless makespossible other opportunities for agricultural growth suchas better husbandry of soils and resources in general,and makes more worthwhile the use of fertilisers,improved plant varieties and upgraded infrastructure.The chapter gives projections of investmentsrequired for land and water development until 2015in respect of: (i) small-scale irrigation developments,including small-scale informal irrigation, humidlowland developments, as well as land improvementactivities (14.2 million ha); (ii) the upgrading andrehabilitation of existing large-scale irrigation systems(3.6 million ha); and (iii) the development of new,large-scale schemes (1.9 million ha). Chapter 2 alsoreports the investment requirement of some US$37billion (Appendix Table 1)7. Of this, the immediateinvestment requirements (2002-2005) are estimated atUS$9.9 billion, short term investment requirements(2006-2010) are US$20.1 billion and medium termrequirements (2011-2015) are US$6.8 billion (Table 9).In addition, operation and maintenance requirements8for all categories of land and water improvement totalUS$31 billion by 2015.To justify the greater production that irrigation andland improvement make possible, other investments arenecessary in infrastructure and the facilitation of marketdevelopment and access Chapter 3 gives estimatedrequirements for this. The application of irrigation andland husbandry such that they can help uplift the pooris put into context in Chapter 4, which presentscommunity-oriented programmes for food security.1.8.2. Pillar 2: Rural Infrastructure andTrade-related Capacities for ImprovedMarket accessInfrastructureChapter 3 deals with complementary investments inrural infrastructure, particularly rural roads, storage,processing and market facilities, that will be required tosupport the anticipated growth in agriculturalproduction and improve the competitiveness ofproduction, processing and trade in the crop, livestock,forestry or fishery sub-sectors. Information oninfrastructure is poor for all sub-sectors but perhapsparticularly so for livestock, except where this activity ishighly commercialised as in South Africa and parts ofZimbabwe and Botswana. Dualism in access toinfrastructure is notable, with industrial production farbetter served than the agricultural part.Africas rural infrastructure is inadequate by almost anymeasure and its road network is particularlyunderdeveloped. Africas people face the greatestdistances to their nearest large markets. A rapid look atthe overall scene compared to other regions reveals thefollowing: (a) a fifth of Africas population is landlocked all other regions have less than 10 percent; (b) less than athird of Africans live within 100 km of the sea comparedto over 40 percent for other developing regions; (c) railfreight in Africa is under 2 percent of the world total,marine freight capacity 11 percent, and air freight lessthan 1 percent; (d) power generation capacity per capitain Africa is less than half of that in either Asia or LatinAmerica. The poor state of Africas infrastructure reflectsneglect of investment but also the fact that the level ofproduction often cannot justify the required investmentand maintenance costs. External investment in economicinfrastructure9 in Sub-Saharan Africa in the periodbetween 1990 and 1996 was US$26.7 billion comparedto US$41.4 billion for Latin America and the Caribbeanand US$101.9 billion for Asia, of which some US$71.9billion was for East Asia alone.Further details on infrastructure and its absolute andcomparative inadequacy appear in Chapter 3. Thisincludes information on seaport and airportinfrastructure, which is inadequate, partly becauseAfrica has too little trade to justify the necessaryinvestments. The chapter calls for priority to be given torestoration of the current degraded stock of ruralinfrastructure to full operational capacity. It also callsfor institutional support for capacity building andtraining in support of all levels and types ofinstitutions10 responsible for the planning, design,construction and continuing operation, maintenanceand management of infrastructure.Building of rural roads and accessory structures, Niger7 A breakdown of areas and associated investment estimates by Regional Economic Organization is shown in Table 8 (Chapter 2). No totals for Africa should bederived from the Regional Economic Organizations totals since country membership overlaps, with some countries belonging to two or three organizations, inparticular SADC and COMESA; and ECOWAS and UEMOA which have a very high multiple country membership.8 Including allowances for both institutional strengthening and the recurrent costs of the organisations responsible for operation and maintenance.9 Including communications, energy, transport, water, sanitation. Sources: UNCED Secretariat; Euromoney 1997/98 Annual report.10 Ranging from central to local level and decentralized government entities, representative bodies, private sector players, NGOs and CBOs, etc. 26. NEPAD: Comprehensive Africa Agriculture Development Programme (CAADP)14Trade-related capacities for improvedmarket accessAfricas share of overall world trade is insignificant andcontinues to decline. According to a recent G -8report11, Africas exports account for only 1.6 percentof global trade despite Africa having 13 percent of thepopulation. In agriculture, the share of Africa in worldexports has dropped steadily, from 8 percent in 1971 -1980 to some 3.4 percent in 1991-2000. Thesenumbers are causes for concern in that if the continentcontinues to matter so little economically, it willcontinue to be hard for Africa to be taken seriously inany sphere of international affairs; furthermore, thesenumbers suggest that Africa is in no position toinfluence world prices it must be a price taker formost of what it exports, including in agricultural trade.Reversing the decline in Africas share ofinternational trade will require increased efforts by theAfrican countries, with the assistance of theinternational community, to alleviate their domesticsupply-side constraints. These can broadly be dividedinto structural constraints, which are particularlyprevalent in Sub-Saharan Africa and concern theRegions high dependence on a limited number ofexport commodities, weak technological capacities,inadequate legal and regulatory institutionalframeworks and insufficient transport, storage andmarketing infrastructure, and policy-inducedconstraints resulting from trade and macroeconomicpolicies that have biased the structure of incentivesagainst agriculture and exports.Chapter 3 refers to Africas failure to gain fromglobalisation; to severe competition from industrialcountries where total subsidies to agriculture (by OECDcountries) were estimated at over US$311 billion apartfrom direct export subsidies on agricultural productstotalling some US$14 billion; to dominance ofdeveloped country market opportunities for Africanagricultural exports12; to continuing difficulties withconditions of access despite progress made in theimplementation of the Uruguay Round Agreements; togenerally low and declining prices for unprocessedproducts that dominate Africas exports; and Africasdifficulties in meeting technical standards for exportproducts in the context of the WTO Sanitary andPhytosanitary Measures (SPS) and Technical Barriers toTrade (TBT). It recognises that trade access also requiresthe strengthening of supply-side capability in Africancountries, without which they cannot take advantageof new trading opportunities.With regard to intra-Africa trade in particular,constraints are also outlined, including inadequatephysical infrastructure, unstable market opportunitiesrelated to production variability, relatively smallmarkets, lack of current market information andtrading skills, uncertain policy environments and rapidlychanging trade regulations. Given the hurdles Africawould continue to face in global markets, regionalintegration may, despite its challenges, be an importantway forward for African countries and can be alearning ground for more ambitious global trading ifthey can resolve the bottlenecks that constrain eventhe limited existing trade opportunities. Attention isgiven to improving African countries trade-relatedcapacities for better market access through a numberof policy and institutional-related themes, includingdeveloped countries acting to improve access to theiragricultural markets; building capacity in Africancountries for effective use of the mult