23 rd Ordinary Session of the African Union Assembly of Heads of States and Governments, Malabo, Equatorial Guinea, June 2014

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1 23 rd Ordinary Sessin f the African Unin Assembly f Heads f States and Gvernments, Malab, Equatrial Guinea, June 2014 Debate Theme: "Transfrming Africa's Agriculture fr Shared Prsperity and Imprved Livelihds, Thrugh Harnessing Opprtunities fr Inclusive Grwth and Sustainable Develpment AfDB s Recmmendatins fr Africa s Agriculture Transfrmatin In rder t ensure lng-term transfrmatin f Africa s agriculture fr shared prsperity and imprved livelihds, the AfDB has been advcating nine strategic areas f interventin. 1. Agriculture as a business and n mre as a develpment activity per se. The vast majrity f Africa s pr are dependent n small-scale farming. T unlck the prductive ptential f agriculture, there must be a paradigm shift frm subsistence agriculture t prmting agriculture as a business. Lcal agricultural value additin and prcessing are vital as Africa s fd imprts cntinue t rise but nt all cmmdities are well suited t dmestic value additin, and prductivity increases are needed t drive lcal value additin tgether with prcessing capacity. 2. The agricultural research and technlgy imperative. Agricultural research and technlgy has lng been recgnized as the key t increased prductivity in African agriculture. Yet, Sub-Saharan Africa has the lwest share f private agricultural R&D spending in the wrld; nly 1.7 percent f already lw public spending. Sub-Saharan Africa ranks the lwest in the wrld in yield-enhancing practices and techniques such as mechanizatin, use f agrchemicals (fertilizers and pesticides), and use f irrigated land. African gvernments and their develpment partners shuld: Increase agricultural research funding frm the current average f 0.7 percent f agricultural GDP t the desired rate f 2 percent; Cntinuusly update research capability in bitechnlgy by prviding adequate supprt t natinal and reginal agricultural research and educatinal institutins; Create an enabling envirnment fr private sectr participatin and funding f research at natinal and reginal levels; Increase use f yield-enhancing practices and technlgies; Bst investment in sil and water cnservatin; and Imprve access t educatin and technical skills develpment in rural Africa. 1

2 3. Cntinued investment in agricultural infrastructure including prcessing and the imperative f the value chain apprach. The lack f cnnective infrastructure between Africa s deficit and surplus areas fr the prductin, cllectin, and distributin f fd prducts, cntributes t cnstraining agricultural transfrmatin, and stands in the way f inclusive grwth. This is accentuated by a lack f infrastructure (including apprpriate strage) fr natinal and reginal trade in fd prducts, which are seasnal and perishable. Value-additin t cmmdities is a path Africa must take t address the persistent fd insecurity and pverty. African cuntries must prmte agribusiness strategies that integrate rural infrastructure and supprt services fr targeted cmmdity value chains based n specializatin and market demand. This requires structural transfrmatin invlving a paradigm shift frm subsistence-riented prductin and fd-prcessing t a mdern integrated agribusiness value chain ecnmy, based n specializatin. The Cmprehensive Africa Agriculture Develpment Prgramme (CAADP) shuld facilitate the emergence f transnatinal agribusinesses alng hrizntal and vertical value chains f the varius strategic cmmdities, ranging frm basic staples t high-value prducts that exhibit shrt- and lngterm market pprtunities. 4. The imperative f plicy refrms t accmpany agricultural market access and transfrmatin. In additin t infrastructure, cuntries need t address nn-tariff barriers and take actins t integrate services markets by implementing harmnized regulatry refrms, s as t vercme the bstacles and barriers t reginal trade integratin in Africa and facilitate the flw f gds and services. Gvernment plicies must increasingly play a critical rle in crrecting many f the market failures that still exist. Link farmers t reginal transprt crridrs thrugh reginal rads t encurage intra-reginal fd trade. Wrk with Reginal Ecnmic Cmmunities t address nn-tariff trade barriers. Supprt agricultural cmmdity exchange markets (e.g. access t real-time cmmdity pricing and electrnic payment systems assist small hlders t becme viable businesses). Prvide efficient labur and lgistics infrastructure thrugh facilitatin f transprtatin fr cmmdities and prlnging the shelf-life f prducts thrugh cld and dry strage. Cmplementary plicies that secure land rights are needed t encurage farmer investment in their land amid grwing cncerns abut envirnmental degradatin and climate change. 5. Greater attentin t crp prcessing znes t bring industry clser t the farms. Africa s rural areas where mst agriculture activities take place are characterized by higher transactin csts, higher systemic risks, as well as widespread pverty, amngst ther things. Hence, the demand fr varied services frm a variety f institutins is essential. Africa s agriculture sectr is als challenged by pr market access and inadequate value additin. 2

3 African gvernments shuld create enabling cnditins fr agriculture-driven grwth t take hld. Under the crp prcessing zne mdel, cntiguus areas f prven high-ptential agricultural prductin and/r prcessing shuld be identified, delineated and targeted with cncentrated infrastructure, utilities, incentives and services. Develpment f the value chain (by attracting prcessing and value additin industries and investments t high-prductin areas), will ease cst f ding business (thereby increase cmpetitiveness) and leverage scial and ecnmic benefits frm clustering f agricultural and agr-based enterprises. The crp prcessing zne mdel represents the nexus f agricultural and industrial develpment and will prmte jbs and wealth creatin, imprt substitutin and cmpetitiveness f African agriculture. 6. Investing in agriculture is investing in wmen since mst farmers are wmen. Agriculture is underperfrming in many nn-il exprting cuntries in part because wmen farmers, wh are a crucial pillar and resurce in agriculture and the rural ecnmy, face diverse cnstraints arising frm a cmplex set f rights and bligatins reflecting scial and religius nrms prevailing within rural cmmunities, that reduce their prductivity. Rural wmen need t have better access t land and resurces fr the preventin, adaptatin and mitigatin f climate change. During the last ten years, many African cuntries have adpted new land laws in rder t strengthen wmen s land wnership rights. This is helping t imprve the situatin f rural wmen. 7. Respnding t the Impact f Climate Change n Agriculture. African agriculture is highly vulnerable t climate change, and the latter culd reduce crp yields by percent by It is likely that price and yield vlatility will cntinue t rise as extreme weather cntinues. Climate change will als impact agriculture thrugh effects n pests and disease. Smallhlder farmers inhabit sme f the mst vulnerable and marginal landscapes, such as hillsides, deserts and fldplains, and rely directly n climate-affected natural resurces fr their livelihds, and ften lack secure tenure and resurce rights. Fr Africa t achieve its develpment gals, climate change adaptatin fr enhanced resilience and sustainability, shuld be a pririty. The need t prmte climate-smart agriculture fr smallhlder farmers (prmting use f drught-tlerant and pest and disease-resistant seeds and plants, rehabilitatin f degraded lands, establishment f early warning systems, etc.), is cardinal, as well as mre adaptive agriculture research, and clser cllabratin within Africa and between Africa and ther develping regins t address cmmn climatic threats. 8. The imperative f imprved prductivity t attract the yuth int agriculture and agri-business. Yung peple make up the bulk f Africa s unemplyed abut 60 percent f ttal unemplyment. The yuth ppulatin is als increasing rapidly, with the 15- t 25-year-ld age grup at 200 millin, and this 3

4 is expected t duble by While yung peple are a huge ptential resurce, many are migrating t cities in search f pprtunities, leaving behind an increasingly ageing ppulatin. Africa s yuth bulge is a limited windw fr develping a larger and yunger wrkfrce t drive sciecnmic develpment. Yung peple are als assets and invlving them in meaningful activities and prgrammes builds scial chesin and embeds them within their cmmunities. Africa s yuth emplyment challenge is structural and cmplex. Respnses shuld nt nly have a structural rientatin, but als draw n the experiences f varius stakehlders and multi-disciplinary appraches. There must be sustained, determined, and cncerted actin by a wide range f actrs. 9. The imperative f sustainable fisheries and aquaculture fr better fd and nutritin security. Fish is crucial fr fd security and nutritin as a fd and a rich surce f nutrients, particularly fr sme Lw-Incme, Fd-Deficit Cuntries and vulnerable ppulatins. It als prvides jbs and incme especially thrugh small-scale fisheries and aquaculture. Africa is endwed with rich and diverse marine resurces, and therefre there are pprtunities which, if prperly harnessed, culd generate mre significant ecnmic and scial benefits t the cntinent. Demand fr fish and fishery cmmdities are high in Africa and wrldwide, and are driven by increases in bth ppulatins and purchase pwer. It is estimated t increase by 3 % annually. Majr shrtfalls in supplies are expected and this prvides pprtunities fr imprved management f fisheries, and aquaculture develpment. Hwever, these rles have ften nt been fully recgnized nr integrated in fd security and in fisheries plicies. States shuld give a central psitin t fish in fd security and nutritin strategies, by making fish an integral element in inter-sectral natinal fd security and nutritin plicies and prgrammes, with emphasis n prmting small-scale prductin and lcal marketing arrangements, and nutritin educatin. States shuld als include fish in nutritinal prgrammes aimed at tackling micrnutrient deficiencies, especially amng children and wmen. Gvernments are als encuraged t build capacity t negtiate better terms in fishing agreements while eliminating harmful subsidies that encurage ver-fishing. It is als imprtant that gvernments address the threats and risks fr wrld fisheries, including effects f climate change, by mainstreaming climate change adaptatin strategies relevant t fish and fd security and nutritin int aquaculture and fisheries plicies and actins at natinal and subnatinal levels. In terms f scale, gvernments shuld priritize supprt f small-scale fisheries thrugh adequate planning, legislatin and recgnitin r allcatin f rights and resurces. 4

5 As regards trade and markets, Internatinal agencies, reginal ecnmic and fisheries bdies and natinal ministries shuld allcate greater plicy attentin and resurces t develp and prmte dmestic and reginal fish trade (including capacity building fr lcal, natinal r reginal fish trade actrs, especially thrugh the value chains invlving small-scale fisheries, aquaculture and marketing). They shuld als supprt the develpment and use f existing r new sustainability certificatin standards including fd security and nutritin criteria and facilitate the engagement f small-scale peratrs by adequate supprt and capacity building. As regards gvernance, gvernments wuld need t assess plicies, interventins and investments with direct and indirect links t fisheries and fishing cmmunities in terms f their impacts n the right t fd f the affected cmmunities. Gvernance and accuntability f fishing activities can and must be imprved by supprting the design f mre effective fisheries management plicies, the setting-up f mechanisms fr a better transparency n freign access cntracts and agreements and a better accuntability n taxes and licences revenues frm the sectr. The recent creatin by the African Develpment Bank f the African Natural Resurces Centre is an imprtant milestne twards a mre sustainable use and valrisatin f the natural assets f African cuntries, including halieutic resurces. It is als imprtant t ensure that fishing cmmunities and fish wrkers actively and meaningfully participate in all decisins that impact their enjyment f the right t fd. Gender-sensitive fd security and nutritin have t be cnsidered as an integral element f fish-valuechain gvernance mechanisms, including natinal gvernment plicies, certificatin standards and crprate scial respnsibility plicies. Gvernments shuld als supprt the develpment f small and medium enterprises thrugh specific supprt t access best management practices and credit schemes t stay prfitable. 5

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