Support to Pan-African reform Process in the Area of agribusiness promotion in Africa (NEPAD/CAADP)

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1 Support to Pan-African reform Process in the Area of agribusiness promotion in Africa (NEPAD/CAADP) region: Commisioned by: Implemented by: partners: duration: Budget: Support to Pan-African reform Process in the Area of agribusiness promotion in Africa (NEPAD/CAADP) Africa (Member States of the African Union) German Federal Ministry for Economic Cooperation and Development (BMZ) Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH New Partnership for Africa's Development (NEPAD), NEPAD Planungs- und Koordinierungsagentur (NPCA), Comprehensive Africa Agriculture Development Programme (CAADP) August December 2012 (current phase) 10.5 Mio. Euro (ex-inwent component: 4.5 Mio. Euro and ex-gtz component: 6 Mio. Euro) Context The agricultural sector in Africa, particularly in Sub-Saharan Africa, represents the most relevant economic basis for large parts of the population. Thus, a sound agricultural sector is decisive in the fight against poverty and food insecurity on the continent. Against this backdrop, African Heads of State and Government have adopted the Comprehensive Africa Agriculture Development Programme (CAADP). CAADP represents a reform framework for better strategic planning, more coherent agricultural policies, and increased and reasonably allocated investments to the sector. Its main objective is to assist African countries with achieving higher economic growth through agriculturally led development, thereby reducing hunger and poverty, enabling food and nutritional security, and increasing growth in exports. CAADP strives for an annual growth rate of the agricultural gross domestic product of at least six per cent and an allocation of at least ten per cent of national budgets to agriculture (Maputo Declaration of AU-summit 2003). African Heads of State and Government consider CAADP as an integral part of the New Partnership for Africa's Development (NEPAD), which provides the framework for Pan-African development initiatives of the African Union (AU). The South Africa-based NEPAD Planning and Coordinating Agency (NPCA) has been mandated with the overall coordination of CAADP. In order to fulfil its objectives as a comprehensive initiative, CAADP has assigned important roles to AU and NEPAD at continental level, to Regional Economic Communities (RECs) and to AU member states as well as to a variety of technical institutions. For the implementation of the CAADP process, the World Bank has set up a Trust Fund to the tune of (initially) USD 50 million. These funds are meant to finance the process so that appropriate and successful agriculture reform strategies can be designed in the member states. However, the implementation of these strategies itself will be funded from the respective country's national budget. Since 2002, Germany has supported the NEPAD Agency (formerly NEPAD Secretariat), which is mandated to coordinate the implementation of AU policies and programmes. The CAADP process has been supported since The project's advisory services focus on the development of competencies of the NEPAD Agency's CAADP team, of the Department of Rural Economy and Agriculture (DREA) at the AU Commission as well as of other important stakeholders such as RECs and technical institutions to enable them to successfully support and promote the CAADP process. Thus, the project's support is based on a multi-level approach: it takes place at national, regional and at continental level. The project supports knowledge transfer and the qualification and empowerment of African partner organisations in coordination, moderation and mediation processes. Results It is expected that support to the CAADP initiative will result in a significant increase in investment in the agriculture sector. This in turn will lead to higher agricultural production and productivity as well as more employment and higher salaries. However, these increases do not happen at the expense of the environment and the climate; it is about the promotion of appropriate strategies, which will contribute to food security and economic development in African countries in a sustainable manner. These improvements will particularly benefit poor population groups, living in rural areas. Therefore, the CAADP support programme substantially contributes to food security on the continent. The optimisation of the partner's capacity to act, especially in coordination processes with national governments, RECs and other regional organisations, takes centre stage in the project's advisory work.

2 Support to Pan-African reform Process in the Area of agribusiness promotion in Africa (NEPAD/CAADP) Contact Support to the Comprehensive Africa Agriculture Development Programme (NEPAD/CAADP) P.O. Box Hatfield Hatfield Gardens 333 Grosvenor Street Pretoria, South Africa Contact Person: Sonja Palm T F E I sonja.palm@giz.de

3 Support to the African Union Commission (AUC) Water Directorate and the African Minister's Council on Water (AMCOW) region: sponsor: German implementing Agency: partners: term: Budget: Support to the African Union Commission (AUC) Water Directorate and the African Minister's Council on Water (AMCOW) All member states of the AfricanUnion German Federal Ministry for Economic Cooperation and Development (BMZ) Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH African Union Commission (AUC), Headquater: Addis Ababa, Ethiopia and the African Minister's Council on Water (AMCOW) December 2012 to November 2015 (2nd phase) 5.5 Million Euro (BMZ: 4 Million Euro, EU-Commission: 1.5 Million Euro) Context Many parts of the African continent are lagging behind in achieving the Millennium Development Goals related to Water and Sanitation. Millions remain without access to clean drinking water or sanitation. The 59 international water basins of the continent are inhabited by two third of the African population. In order to secure basic needs of this population as well as to achieve the Millennium Development Goals and conflict prevention, international coordination of water resource management and a strategic direction at pan-african plus regional level is indispensable. The African Heads of State demonstrated their interest in accelerating the achievement of the set goals in water and sanitation in Africa through a comprehensive list of commitments declared at the 1 July 2008 African Union summit in Sharm-El Sheikh, Egypt. The commitments' main aspects include national action plans on water and sanitation, transboundary water management as well as capacity development and strengthening of the African Ministers' Council on Water (AMCOW). The AU commission mandated AMCOW to develop an implementation strategy for these Sharm-El Sheikh commitments. In order to carry forward these commitments additional efforts and capacities are needed. The aim of the GIZ programme is to enhance the capacities of the African Union Commission (AUC) Water Directorate and the African Ministers' Council on Water (AMCOW) to implement these important commitments. This support will include as well the regional organisations, such as the Regional Economic Communities (RECs) and River/Lake Basin Organisations (R/LBOs). The AU Commission requested therefore Germany for support in the development of this strategy and to furthermore accompany its implementation. Objective In order to enable the African Union Commission (AUC) Water Directorate and the African Minister's Council on Water (AMCOW) to steer the process of implementation of the Sharm El-Sheikh commitments, the German support aims to enhance capacities and performance of AUC, AMCOW and regional institutions (RECs, R/LBOs). Germany focuses mainly on three core areas: 1. Development of an implementation strategy for the Sharm El-Sheikh commitments and the required processes 2. Improvement of the internal organisation and the communication between Pan-African and regional level, institutions and civil society. This includes clarification of roles and responsibilities. 3. Advice and support of AUC and AMCOW in the integration of principles of IWRM at regional and national level including its implementation. IWRM is a flexible, process oriented and holistic approach aiming for maximization of human and economic benefits under consideration of the ecosystem. Germany actively supports AUC and AMCOW in donor coordination in this sub sector. The first phase's ( ) objective is to achieve that AUC and AMCOW are enabled to fulfill their mandate regarding the implementation of the Sharm El-Sheick commitments. Specifically, steering the process required for adoption of the implementation strategy and reporting the state of implementation to the heads of states at the AU summit. The project contributes to a more strategic direction of the African water agenda and to a stronger integration of the same in the AU. The Pan-African project includes all African states and collaborates closely with other German projects in the water sector on regional as well as national level. Additionally, the project is supported by the European Union. Upon request of AMCOW, the Water and Sanitation Program of the World Bank (WSP) as well as the African Development Bank (AfDB) haven taken up responsibilities in the subsectors drinking water supply respectively sanitation towards the implementation of the Sharm El-Sheikh commitments.

4 Support to the African Union Commission (AUC) Water Directorate and the African Minister s council (AMCOW) Summit of the African Minister Council, Addis Ababa. GIZ Results The expected results are linked to enhancement of capacities and competences of the AUC and AMCOW to plan, coordinate and implement the implementation process of the Sharm El-Sheikh commitments. Roles and responsibilities of actors in the African water governance on all levels (pan-african, regional and national) will be clarified and therefore political participation as well as transparency will be enhanced. Thereby, AUC and AMCOW will be able to strengthen their position as leading pan-african institution and to deepen collaboration with African institution as well as with donors. The project contributes directly to fulfillment of the Heads' of state commitments regarding AMCOW and institutional architecture of the African water sector. Implementation of the strategy and increased capacity development will allow for harmonization of regional and national level. Additionally, it will enable securing that donor contributions in the framework of the joint African strategy are more effectively applied. By spreading the principles of IWRM and benefit sharing long term sustainability in water resource management as well as conflict prevention can be achieved. In particular urban as well as rural poor of Africa will benefit from the support towards the achievement of the water and sanitation millennium development goals resulting from improved coordination and an implementation according to plan of the Sharm El-Sheikh commitments. Contact GIZ AU Office Lideta Sub-City, Kebele 15 House No. 372, Roosevelt Ave P.O. Box Addis Ababa Ethiopia Contact Person: Winfried Zarges T F E I winfried.zarges@giz.de

5 Geothermal Facility for Eastern Africa region: sponsor: German implementing Agency: partners: Geothermal Facility for Eastern Africa Pilot phase in the five countries Ethiopia, Kenya, Rwanda, Tanzania and Uganda, possibly to be extended at a later date to all eleven countries along the East African Rift Valley German Federal Ministry for Economic Cooperation and Development (BMZ) Kreditanstalt für Wiederaufbau (KfW) African Union Commission (AUC), Addis Ababa, Ethiopia term: January 2011 to January 2014 Budget: 20 Million Euro Financial Cooperation (FC) + 30 Million Euro EU-Africa Infrastructure Trust Fund Context There are considerable bottlenecks in Eastern Africa's power supply. On average, less than 20% of the population is connected to the power grid, and demand considerably exceeds the amount of electricity available. Moreover, as the energy mix is largely based on hydropower, the regular periods of drought lead to extensive power cuts. Geothermal power is a practical, long-term alternative, as it is inexpensive, reliable and environmentally sound. The countries along East Africa's Rift Valley have geothermal potential of more than 7,000 MW. That is around one and a half times the current capacity of Eastern Africa's power plants. However, due to considerable obstacles to investment, primarily the high start-up risks and costs for tapping this resource, this renewable energy is only being used in Kenya (205 MW) and Ethiopia (4 MW). Reliable information about whether a site is suitable can only be obtained through elaborate and expensive drilling processes, which are often unsuccessful. Many developers have been unwilling to take this risk so far. The Eastern African states hope to overcome these obstacles using a regional approach. In June 2009, the energy ministers of ten countries along the East African Rift Valley signed the Addis Ababa Declaration on Geothermal Energy. This declaration calls on the African Union Commission to devise a strategy for regional collaboration to harness East Africa's geothermal potential, develop innovative financing mechanisms and set up a regional database. The project purpose is to attract public and private developers for the construction of geothermal power plants which will feed clean, reliable energy into the Eastern African power grids. The Geothermal Risk Mitigation Facility grants financial contributions to explore geothermal sites in Eastern Africa. Government or parastatal organizations, regional organizations supported by Eastern African countries (e.g. the East African Power Pool) and private companies can submit applications and receive a grant from the Facility. The selection criteria are structured in such a way that development partnerships with the private sector have a particularly good chance of obtaining a grant. The project has the following components: Component 1: Subsidies for supplies and services for up to two exploration drillings per site. Component 2: Risk premium for developers who can show within 18 months of the exploration drillings that they have undertaken subsequent investment steps and have secured financing for them. Depending on the size of the power plant planned, the subsequent investment steps may be further confirmatory drillings or the design and construction of a smaller power plant. Component 3: The ex-post processing and publication of the results of the drillings in an information pool is designed to systematically reduce the risks of future site development activities in the East African Rift Valley. Component 4: Training and upgrading for staff members at the Department of Infrastructure and Energy to enable the African Union Commission to perform its steering function for the Facility.

6 Geothermal Facility in Eastern Africa Well testing in Olkaria, Kenia. KfW Results Contact The results of the project measures will be high-quality, sound information about the potential of geothermal sites in Eastern Africa, serving as a basis for private investment to establish geothermal power plants. In addition, as a result of geothermal drillings at various sites in the region, knowledge about the resources will be improved, thus reducing site development risks in the development of geothermal energy projects in the region. Geothermal Risk Mitigation Facility for Eastern Africa Kreditanstalt für Wiederaufbau (KfW) Infrastruktur/ Subsahara Afrika Palmengartenstraße Frankfurt Contact Person: Katrin Keßels T F E katrin.kessels@kfw.de I

7 Support to the African Union Commission in the reform of the Institutional Architecture for Infrastructure Development in Africa (IAIDA) region: sponsor: German implementing Agency: partners: Support to the African Union Commission in the reform of the Institutioneal Architcture for Infrastructure Development in Africa (IAIDA) All Member States of the African Union German Federal Ministry for Economic Cooperation and Development (BMZ) Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH African Union Commission term: 1st phase: December 2011 to November 2013 Budget: 2 Million Euro Context The African continent is facing a gap in establishing the required infrastructure, in particular regional and transboundary infrastructure. One of the basic problems is reaching political agreement on regional projects and to mobilize sufficient capacities to successively implement the steps which lead to the development of bankable projects ready to be financed. An institutional architecture for infrastructure development in Africa is missing. Consequently, regional governance structures in Africa have only very limited capacities to advance and accompany projects from the political decision to their technical preparation up to their bankability. Africa's economic and social development, as well as its political and physical integration is seriously hampered by the inadequacy of infrastructure (water, energy, transport and ICT), which constitutes an essential foundation for the development process. At the summit in Kampala in 2010, African Head of States have requested the AUC to develop and present a proposal for a new institutional architecture for infrastructure development in Africa (IAIDA) at the following summit (June 2011). The AUC with support of the German government (SFF Afrika NA) presented an analysis of the current situation and a proposal for a new institutional architecture. This architecture redefined roles, mandates and responsibilities, as well as proposed more efficient cooperation and collaboration mechanisms with RECs and the AfDB. In addition, this new institutional architecture (IAIDA) will serve as the structure of implementation for the existent PIDA (Programme for Infrastructure Development in Africa). Hence, it will be the African structure responsible for development and coordination of regional as well as pan-african infrastructure projects in all four infrastructure sectors (water, energy, transport and ICT). In order to carry forward the implementation of IAIDA additional efforts and capacities are needed within the African Union Commission (AUC) as well as at the NEPAD Planning and Coordinating Agency (NPCA). Enhanced capacities will also be required in involved regional institutions, such as the Regional Economic Communities (RECs), River/Lake Basin Organisations (R/LBOs) and Power Pools in order to enable them to take up their new roles and responsibilities.therefore, the AU Commission requested Germany for support in the development of this strategy and to furthermore accompany its implementation.. The project supports the operationalisation of the institutional architecture for infrastructure development (IAIDA) at Pan-African level. The first phase aims to enhance capacities of the AUC and NPCAto coordinate and to implement the IAIDA processes. In order to achieve this, the German government will support mainly three core areas: 1. Financing mechanisms (identification of PPP options, developing strategies, mapping, developing accountability, audit mechanisms, contract enforcement frameworks, etc.) 2. Information management (information-open access portal, policy on Information Sharing, M&E system, consolidated report on state of infrastructure by African institutions, etc.) 3. Communication (external and internal communications, demonstrating added value, core partners' group, "Roadshow", communication strategy, outreach strategic activities, improving materials and documents, etc.) These three core areas are accompanied by capacity development including the following elements: advice on institutional change processes, human capacity development of the personnel of the Directorate for Infrastructure and Energy at the

8 Support to the African Union Commission in the reform of the Institutional Architecture for Infrastructure Development in Africa (IAIDA) Merowe Dam in Northen Sudan GIZ AUC / NPCA and advice in the creation of the new roles and mandates as well as in the planning and implementation of projects and their evaluation and audit. The contribution from the German government includes technical and organizational advice by mainly regional long-term as well as short-term experts, trainings and procurements. Thematic workshops as well as networking events will be supported. The Pan-African project includes all AUC member states and joins the current strategic and institutional reform processes in the infrastructure sector in Africa. In connection to these processes, there will be close collaboration with the African Development Bank and World Bank. Also, the inclusion of the Specialized Technical Committees of the AUC as well as RECs will be acted upon. The project will collaborate closely with other projects of the German government (KfW) such as the one at the Infrastructure Consortium for Africa (ICA), the IPPF und the geothermal project at the AUC. Results The expected results are linked to enhancement of capacities and competences of the AUC and NPCA to plan and coordinate the process of implementation of the agreed new institutional architecture for infrastructure development in Africa. The AUC will be strengthened to fulfill their mandate as the leading institution on Pan-African level for a coordinated and faster development of infrastructure in Africa. The first phase's ( ) objective is to achieve the improvement of coordination and implementation of IAIDA through AUC and NPCA. At the end of the project the institutional architecture for infrastructure development in Africa shall be operational on Pan-African level. Operationalization of IAIDA and the improved capacities will contribute towards a more efficient and verifiable infrastructure governance (good governance). Available financial resources (private and public) will be used more effectively. Improvement of infrastructure services in Africa (water, ICT, transport and energy) supports significantly the achievement of various MDGs and improves the living conditions of the poor on the continent. Contact GIZ AU Office Lideta Sub-City, Kebele 15 House No. 372, Roosevelt Ave P.O. Box Addis Ababa Ethiopia Contact Person: Winfried Zarges T F E winfried.zarges@giz.de I