Partnership for Agricultural Water in Africa (AgWA)

Transcription

1 Partnership for Agricultural Water in Africa (AgWA)

2 Outline of Presentation Ag water, poverty and growth Africa Ag Water Strategy Partnership for Ag Water in Africa Ag Water Business Plan

3 Agricultural growth in Sub Saharan Africa has accelerated 6 Average Annual Percentage Real Agricultural Growth to one of the highest agricultural growth rates of all regions in Source : World Development Indicators Average Annual Percentage Real Agricultural Growth South Asia Latin America and the Carribean Europe and Central Asia East Asia and Pacific Sub Saharan Africa Middle East and North Africa

4 Ag growth is based based on extension of area, and not on intensification 60 yield area percentage SSA EAP LAC MNA SA Yield increase and area expansion, cereals,

5 Yet growth has not been pro poor. What we need is pro poor growth, similar to what we have seen in South Asia

6 A large part of the poverty reduction in South Asia was achieved during the Green Revolution

7 Area in SSA under ag water is lowest among different regions SA MNA AEP LAC SSA Area under ag water (% of ag area)

8 Low ag water implies high poverty levels Poverty headcount in irrigated and rainfed areas (%) Irrigated areas Rainfed areas % Viet nam Thailand Philippines India, Bihar India, Sri Lanka Poverty and ag water Chat t isgarh % irrigated over culitivated land 40 % Total population in poverty MENA EAP LAC SA SSA

9 Outline of Presentation Ag water, poverty and growth Africa Ag Water Strategy Partnership for Ag Water in Africa Ag Water Business Plan

10 WB investments in ag water have declined continuously since the 1980s

11 Multi donor Ag Water Strategy for SSA Joint initiative of AfDB, FAO, IFAD, IWMI and WB to increase investments in ag water In response to NEPAD/CAADP pillar 1. Objective transform the sector to scale up investments in ag water Based on an assessment of critical AWM performance concerns, including: demand for products of irrigated agriculture; planning and implementation; private sector investment in agricultural water development; Impact of AWM on poverty reduction; costs of AWM health and environmental aspects physical potential for improved agricultural water use livestock

12 Joint Strategy recommendations Agricultural water development in SSA can make an important contribution to poverty reduction and growth, but only when investments are profitable at the farm level, economically viable and sustainable Potential is enormous but immaterial. The constraints to AWD are economic i.e. costs, productivity and access to profitable markets. A range of low cost rainwater management technologies is also available for increasing the yields of dryland crops. Water is part of a comprehensive package that enables farmers to maximize productivity and profitability M&E of project performance has been neglected Institutional reforms can enhance the performance of agricultural water development SSA countries should now develop national strategies for the agricultural water subsector that recognize both its importance for agricultural growth and poverty reduction; integrated with broader water resources management strategy and with poverty reduction strategies. Ag water professionals are champions

13 Outline of Presentation Ag water, poverty and growth Africa Ag Water Strategy Partnership for Ag Water in Africa (AgWA) Ag Water Business Plan

14 Partnership for Ag Water in Africa (AgWA) OBJECTIVE: bring together African countries and development partners in promoting the critical role of water to increase agricultural productivity, economic growth and poverty reduction. Specifically, AgWA aims to: scale up investments and ensure a more reliable, broad based and sustained flow of funds for agricultural water; promote analytical work and support sectoral strategies in the field of agricultural water; promote knowledge sharing, dissemination and capacity strengthening, and initiate innovative business lines in support to scaling up investments in agricultural water. promote regional integration, coordination and partnerships, and empowerment of national and regional stakeholders; APRROACH: flexible alignment of funding resources, activities and partner organizations, based on complementarity and subsidiarity, and that leverages their comparative advantages, while capturing synergies and economies of scale. AgWA will provide a results based monitorable framework for measuring progress GOVERNANCE: lean... Steering Committee. Activities under AgWA will be implemented through existing institutions and will be mainstreamed into Bank and partner programs. Support from BNWPP/AWF. Alignment with CAADP/NEPAD.

15 Partnership for Ag Water in Africa (AgWA) In response to NEPAD s efforts to operationalize CAADP pillar I Support for Round Table process; contribution to Country Compacts Added Value: Promote renewed interest and re engagement in ag water among policy decision makers Attract fresh know how to strengthen capacities Promote harmonization between external partners (donors) in the field of ag water, in particular around issues related to policy, strategy and institutional reform Achieve better synergies through complementarity and subsidiarity for transaction costs that are as low as possible

16 AgWA components Component A: analytical and strategic work Component B: knowledge sharing and capacity strengthening: National partners, including irrigation decision makers, parliamentarians and private national sector Strengthening of ag water curriculum development of web site Component C: business development Component D: investments

17 Outline of Presentation 1. Ag water, poverty and growth 2. Africa Ag Water Strategy 3. Partnership for Ag Water in Africa 4. Ag Water Business Plan

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19 BP proposes a scaling up of investments in ag water Annual WB lending to I&D in Africa Starting up phase: 13 new projects Scaling up phase: 10 new projects US$ million FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

20 Translating commitments into investment Over 5 years period, BP commits to increase investments to US$1bn At end of BP, 30 operations (18 dedicated and 12 nondedicated) under implementation (420,000 ha) and over 20 pieces of analytical work completed To translate commitment into investments on the ground we need to Listen to our clients, especially Ministry responsible for Finance Improve performance of ag water Conduct analytical work to demonstrate that investments in irrigation reduce poverty and generate economic growth Support African ag water champions and conduct strategic work Strengthen capacities Intensify collaboration among partners

21 Five business lines PPP in commercial AWM: investment cost sharing between public and private sources with focus on employment generation and growth. Market driven investments for high value crops: peri urban and export flori/horticulture, with high level of involvement from private sector/ppp. Focus on employment generation, growth and poverty reduction. Small scale improvement of traditional AWM: integrated rural development or watershed management programs. Food crops, or cash crops for local markets. Catchment development programs. CDD programs, community based irrigation development. Reform and modernization of existing AWM: Modernization of existing schemes. Increasing farmer incomes and responsibility and reducing government outlays on existing schemes. Reform of policies and institutions. Improved water control and watershed management in a rainfed environment. The potential for growth and poverty reduction through improved rainfed agriculture is theoretically vast: more than 80% of the region s households are rainfed farmers.

22 New generation of successful SSA irrigation projects o Niger Pilot Private Irrigation Project: ERR > 65%. Farmer incomes up from $159 to $560. Average investment costs US$50 per farmer. o Ghana Village Infrastructure Project: ERR = 42% o Tanzania, River Basin Management and Smallholder Irrigation Improvement project ERR = 16%. Irrigation efficiency up by 100%, with positive impacts on downstream users. o Office du Niger Project: paddy yields up from 2t/ha to 6t/ha. Local population doubled. ERR = 30%. PPP: development of 25,000ha through commercial FDI in Mali o Nigeria Fadama, ERR = 40%, school enrolment up 30%.