Agriculture: Untapped Abundance and Investment Opportunities in South Sudan s Agricultural Sector
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1 Agriculture: Untapped Abundance and Investment Opportunities in South Sudan s Agricultural Sector Hon. Dr. Betty Achan Ogwaro Minister of Agriculture, Forestry, Cooperatives, and Rural Development April 17 th, 2013
2 30 MILLION HECTARES OF ARABLE LAND WITH 5% UNDER TRADITIONAL CULTIVATION FAST GROWING REGIONAL MARKETS LONG-TERM PRODUCTIVITY AND FOOD SECURITY 1
3 SOUTH SUDAN IS LOCATED IN THE HEART OF AFRICA SLIGHTLY SMALLER THAN TEXAS AT APPROX. 250,000 SQ. MILES POPULATION OF 10 MILLION Same Size as Texas SURRONDED BY 6 OF THE STRONGEST ECONOMIES IN AFRICA PART OF THE SECOND FASTEST GROWING REGION IN THE WORLD 2
4 ABUNDANT RENEWABLE WATER RESOURCES WITH MANY RIVERS AND TRIBUTATIES AND 500 TO 2,000 mm IN ANNUAL RAINFALL GHANA 2,131 M 3 RENEWABLE WATER RESOURCES ARE COMPARABLE TO THE LARGEST FOOD PRODUCERS IN AFRICA NIGERIA 1,762 M 3 SOUTH SUDAN 1,445 M 3 ETHIOPIA 1,440 M 3 SOUTH AFRICA 1,019 M 3 KENYA 738 M 3 EGYPT 694 M 3 TOTAL RENEWABLE WATER RESOURCES PER CAPITA, IN CUBIC METERS, AVERAGE FROM
5 SOUTH SUDAN S VISION FOR A TRANSFORMED AGRICULTURAL SECTOR IS CAPTURED IN THE NATIONAL EFFORT FOR AGRICULTURAL TRANSFORMATION (NEAT) 1 IMPROVE PRODUCTION TO PROMOTE FOOD SECURITY AND REGIONAL SELF-SUFFICENCY 2 IMPROVE HEALTH AND NUTRITION ACROSS THE COUNTRY 3 PROMOTE AGRICULTURE AS AN ALTERNATIVE ECONOMIC ENGINE COMPLEMENTING OIL 4 INCREASE INCOMES FOR MORE THAN 80% OF THE POPULATION 4
6 NEAT WILL ACHIEVE THESE NATIONAL GOALS THROUGH TWO COMPLEMENTARY INITIATIVES ZONAL EFFORT FOR AGRICULTURAL TRANSFORMATION (ZEAT) PRIORITIZED ZONAL APPROACH RAPID IMPLEMENTATION IN 2013 AND 2014 DIRECTLY TARGETS HIGH- POTENTIAL, MARKET READY FARMERS COMPREHENSIVE AGRICULTURAL MASTER PLAN (CAMP) TBD COMPLETE STRATEGY COVERING AGRICULTURE AND RELATED SECTORS IMPACTS ALL STATES AND COMMUNITIES GUIDES THE COUNTRY TOWARDS FOOD SECURITY 5
7 PRIORITY AGRICULTURE OPPORTUNITIES Value Chains Adjacent Businesses PRODUCE CEREALS MAIZE/CORN, SORGHUM, RICE, WHEAT, MILLET CULTIVATE NON- TRADITIONAL CROPS GUM ARABIC, HONEY, COFFEE AND TEA, PALM OIL HARVEST FORESTS TEAK, EUCALYPTUS, PINE, MAHOGANY, SANDALWOOD PROCESS ANIMAL PRODUCTS MEAT, DAIRY, LEATHER ESTABLISH SUSTAINABLE FISHERIES TILAPIA, NILE PERCH, CATFISH ACCESS TO EQUIPMENT ESTABLISH TRACTOR SERVICE TO PLOW COMMERCIAL FARMS NILE RIVER TRANSPORT ESTABLISH BARGE COMPANY TO TRANSPORT GOODS INPUT BUSINESS ESTABLISH LARGE SCALE SEED CROP PROTECTION DISTRIBUTION NETWORK STORAGE AND PROCESSING CROP STORAGE FACILITIES, WAREHOUSE RECEIPTS, AGGREGATED PROCESSING 6
8 SOUTH SUDAN S SEVEN DISTINCT AGRO-ECOLOGICAL ZONES ARE AMONG THE RICHEST, MOST FERTILE IN AFRICA Western Flood Plains Low-elevation with shrubland; alluvial soil Nile Sobat Wetlands and Nile basin; alluvial soil Eastern Flood Plains Low-elevation with shrubland; alluvial soil Ironstone Plateau Higher elevation with deciduous woods; lateritic soil Greenbelt Forest with savannah; ferrous soil Large-scale Cereals (sorghum, maize/corn, rice, etc.) Nearly all zones suitable, with maize and sorghum throughout and rice in flood plains Gum Arabic Flood Plains, Nile Sobat, Arid Horticulture Greenbelt, Hills & Mountains Arid Low-elevation; chromic soil Hills and Mountains Forests; metallic soil Forestry Greenbelt, Hills & Mountains Oilseeds Nile Sobat, Flood Plains, Ironstone Plateau 7
9 CEREALS OPPORTUNITIES FOR LARGE-SCALE CEREALS CULTIVATION ALL ZONES SUITABLE FOR CEREAL PRODUCTION GROWING UNMET DEMAND IN KEY LOCAL AND REGIONAL MARKETS TYPES: MAIZE, SORGHUM, RICE, WHEAT, MILLET ACTUAL COMMERCIAL YIELDS MAY DOUBLE THE INDUSTRY AVERAGE OF 4-5 MT/ ha 8
10 NON-TRADITIONAL CROPS OPPORTUNITIES FOR NON-TRADITIONAL PRODUCTS MANY OPPORTUNITIES READY FOR HARVESTING WITH LIMITED UPFRONT INVESTMENT TYPES: PALM OIL, COFFEE & TEA, GUM ARABIC, HONEY WORK WITH SMALLHOLDER FARMERS TO AGGREGATE AND EXPORT THROUGH TRANSPARENT, SUSTAINABLE VALUE CHAINS 9
11 FORESTRY OPPORTUNITIES FOR SUSTINABLE FORESTRY FOR HIGH VALUE HARDWOODS AND SOFTWOODS TYPES: TEAK, MAHOGANY, EUCALYPTUS, SANDALWOOD, ACACIA OVER 185,000 HECTARES OF PLANTATIONS UNDER IRRIGATION AND IN HIGH RAINFALL AREAS 15,000 HECTARES OF MATURE MOHAGANY, EUCALYPTUS AND ACACIA 6,500 HECTARES OF MATURE TEAK DEVELOPED SYSTEM FOR CONCESSIONS POTENTIAL FOR VALUE-ADDED PRODUCTS, SUCH AS FURNITURE 10
12 LIVESTOCK OPPORTUNITIES FOR ANIMAL HUSBANDRY AND PRODUCTS OVER 12 MILLION HEAD OF CATTLE AND 11 MILLION HEAD OF SHEEP AND GOATS HIGHEST LIVESTOCK PER CAPITA IN THE WORLD POTENTIAL TO GENERATE UP TO $25 BILLION IN MEAT, HIDE, AND SKINS SALES OPPORTUNITIES IN POULTRY PRODUCTION FOR MEAT AND EGGS 11
13 FISHERIES OPPORTUNITIES FOR SUSTAINABLE FISHERIES LARGE NETWORK OF LAKES, RIVERS, AND WETLANDS NATURALLY ABUNDANT FISH STOCK TYPES: NILE PERCH, TILAPIA, CATFISH SIGNIFICANT OPPORTUNITIES FOR AQUACULTURE 12
14 CHALLENGES BENEFITS NAVIGATING NEW PROCESSES OPPORTUNITIES ACROSS ALL SUB-SECTORS REGIONAL VARIABILITY IN LAND TENURE LIMITED TRANSPORT & ENERGY INFRASTRUCTURE NEED TO IMPORT REQUIRED INPUTS BUSINESS FRIENDLY LEADERSHIP ABUNDANT ARABLE LAND ENABLING AGRICULTURAL DEVELOPMENT PROGRAMS INCREASING DEMAND IN LOCAL AND REGIONAL MARKETS INCENTIVES AND CONCESSIONS PLENTIFUL WATER RESOURCES RANGE OF CLIMACTIC ZONES 13
15 OPERATING IN SOUTH SUDAN DO s GAIN TRUST THROUGH OPEN COMMUNITY CONSULTATIONS CARRY OUT ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENTS UNDERSTAND LOCAL LAND OWNERSHIP DESIGN A VISIONARY LONG-TERM BUSINESS PLAN COMMIT TO CREATING SOUTH SUDANESE JOBS DON Ts CUT CORNERS IN THE DUE DILIGENCE PROCESS DEAL WITH BROKERS WHO PROMISE SHORTCUTS ENTIRELY OUTSOURCE WORKFORCE AND MANAGEMENT STAFF FAIL TO DELIVER ON PROMISES TO LOCAL COMMUNITIES 14
16 SUCCESS STORIES TO DATE INITIAL INVESTMENT OF $37M IN 2009 AND AN ADDITIONAL INVESTMENT OF $15M IN 2011 SOUTH SUDAN BEVERAGES LIMITED CAPTURED OVER 75% OF LOCAL MARKET SHARE AS THE ONLY BREWERY IN SOUTH SUDAN DEVELOPING INNOVATIVE SMALLHOLDER SOURCING TECHNIQUES FOR CASSAVA PURCHASED 25-YEAR LEASE ON 105,000 HECTARES IN UNITY STATE CONCORD AGRICULTURE CULTIVATING 1,000 HECTARES OF SORGHUM, MAIZE, AND OILSEED USING LOCAL LABOR TO SOURCE TO SOUTH SUDANESE DOMESTIC MARKET 15
17 TO ENCOURAGE GROWTH, THE GOVERNMENT HAS ADOPTED A NUMBER OF INCENTIVES TO PROMOTE FOREIGN INVESTMENT LEGAL FRAMEWORK IN PLACE FOR DUTY EXEMPTIONS AND CONCESSIONS TAX INCENTIVES AND ALLOWANCES FROM 8% to 40% INVESTMENT-READY TRACTS OF LAND PUBLIC SECTOR GUARANTEES ON PRIVATE SECTOR INVESTMENTS 16
18 WE INVITE YOU TO VISIT SOUTH SUDAN AND SEE ALL THE OPPORTUNITIES THAT AWAIT YOU THANK YOU 17
19 Q&A
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