AGRA

AGRA is supporting the Government of Ethiopia in designing approaches to attract investments to boost wheat, rice, edible oilseed, and animal feed value chains

  • Together with the Government of Ethiopia, AGRA designed three flagship programs to address critical gaps in wheat, rice, edibleoil and animal feed availability
  • The flagship programs were designed through a consultative process spearheaded by AGRA and the Ethiopian Government and involved private sector, civil society, and development partners
  • AGRA is committed to support the Government in implementing the flagship programs to convert the joint plans to action and implementation

ADDIS ABABA, Ethiopia: August 17, 2022 – AGRA has provided three documents to officials from the Government of Ethiopia that emerged from joint programs in Ethiopia. The documents support the Government of Ethiopia (GoE) in investment prioritization and implementation of three flagship programs. These programs are designed to promote local production, marketing and consumption of four critical agricultural items; wheat, rice, oil seeds and animal feed. The flagship programs were designed through a consultative process spearheaded by AGRA and the Ethiopian Government and involved private sector, civil society, and development partners.

The flagship documents have been designed in accordance with the governments’ policies to reduce the import of commodities by enhancing local production, which is one of the focus areas of the Government of Ethiopia.

The three flagship documents titled – the National Wheat Flagship program (NWFP), the National Rice Flagship Program (NRFP), and the Oil Seeds and Animal Feed Production Flagship Program (OSAP) will support investment and implementation of the country’s vision leading towards food sovereignty and security.

During the event, AGRA also provided three additional knowledge products. Two books from a market-led integrated value chain development program implemented in 30 woredas focusing on maize, wheat, teff and haricot bean value chains, and a booklet  outlining AGRA’s experience on targeted secondment of Technical Experts to the Ministry of Agriculture. These knowledge products aim at informing the design of future investments and interventions in the sector.

“The knowledge documents we are handing over today are instrumental to Ethiopia’s agricultural development and were requested by the Ministry of Agriculture. AGRA as a demand-driven institution could not be an initiator, rather a supporter” said H.E. Hailemariam Dessalegn, the former Prime Minister of Ethiopia, and current AGRA Board Chair.

He continued…. “The flagship documents are both implementation and resource mobilization tools. AGRA will continue providing the support needed for quick implementation through our existing consortia, which are equipped to enhance integrated delivery of critical services to farmers through the effective coordination of private investments,”

According to H.E Oumer Hussein, the Minister of Agriculture in Ethiopia, ‘with increasing urbanization there has been an increase in domestic demand for imported rice in the country’. This is the reason why the government is giving rice  special attention.

“The production of these knowledge products, emerging from national and international experiences would enhance our rice development program, and help achieving our aspired goal of reducing imported rice and improving food security” Honorable Oumer said.  Ethiopia now produces only just 12% of its annual rice needs, compared to 56% in 2011.

From the perspectives of wheat, the NWFP responds to the widening gap between production and consumption. Wheat consumption in the country has grown at the rate of 6% p.a. in the last decade leading to increased reliance on imports. In 2020 alone, Ethiopia imported $320million worth of wheat. 

In addition, the OSAP was designed to increase the domestic production of edible oils, from the current 2% to at least 50% by 2028. The country spent approximately US$740 million in 2020 to import over 1.2 billion metric tons of various edible oils, adding pressure to the already existing forex shortage. This flagship also concomitantly increasing the local production of animal feed, using the byproducts from edible oil production.

AGRA has also developed a flagship coordination and implementation modality plan that includes technical support for strategic direction, policy development and budget planning to help the government in successfully implementing the programs.

-ENDS

About AGRA

AGRA is a farmer-centered, African-led, partnerships-driven institution that is working to transforming smallholder farming from a solitary struggle to survive to a business that thrives. In collaboration with its partners—including African governments, researchers, development partners, the private sector and civil society— AGRA’s work primarily focuses on smallholder farmers – men and women who typically cultivate staple crops on two hectares or less. AGRA is now recognized across the continent as a strong voice for African rural development, a prosperous agricultural economy, and for supporting thousands of small African businesses and millions of African families to improve agriculture as a way to ensure food security and improve their livelihoods.

More information: https://agra.org ; Rebecca Weaver, rweaver@agra.org;

Urgent action is needed to improve Africa’s food systems

The impact of a series of crises is exacerbating vulnerabilities in Africa’s food systems. Things will get worse unless mitigating actions are taken now to safeguard Africa’s food security.

From 5-9 September, African and global business leaders will meet in Kigali, Rwanda, for the Africa Green Revolution Forum (AGRF), the continent’s most influential gathering around Africa’s largest economic sector – agriculture and food systems. 

This year’s AGRF is probably the most significant since the Covid-19 pandemic, which not only heavily affected the 2020 and 2021 editions of the AGRF, but also the 2021 UN Food Systems Summit. Covid-19 has confirmed that we need to reform our food systems. “Building back better” will not be enough; we need to rethink how we produce, distribute and eat food, and to do this, African political and business leaders must think and act differently, and be willing to set different agendas that transform their food systems.

The 2022 State of Food Security and Nutrition report paints an alarming picture of Africa’s agri-food systems transformation efforts. Despite unprecedented efforts by African heads of state and government to drive regional change through country Comprehensive Africa Agriculture Development Programmes (CAADP), the report indicates that 35m more people were affected by hunger in 2020 compared with 2019, before the Covid-19 outbreak, with an additional 15m in 2021. 

The report further shows that 20% of Africa’s population was facing hunger in 2021, compared with 9.1% in Asia. It is in Africa where the population affected by hunger has increased the most compared to other continents. This is of major concern and should worry anyone.

Number of people likely to be in food crisis or worse in 2022

Crises beset Africa

Amid the onslaught of the Covid-19 outbreak, Africa has to battle other crises: 

First: Increasing temperatures and changing precipitation patterns threaten Africa’s food and water security. The El Niño-induced drought during the 2015-16 cropping seasons across the Southern African countries led to higher-than-normal temperatures and erratic and low rainfall. The 2019 devastating floods in the greater Horn of Africa, the 2019-20 invasion of desert locusts in Eastern Africa, and the current looming climate-induced famine in the Horn of Africa, for example, have made Africa an exposure and vulnerability hot spot for climate variability and climate impacts.

Second: Around 2019, there came the rise in oil and gas prices – that saw a surge in crucial food commodity prices that saw an over 89% increase in price of major cereals and about a 109% in rise in fertiliser prices all just in 2 years. 

Third: And now the Russia-Ukraine crisis is further exacerbating oil and gas prices and increasing global food prices. 

The implications for these crises are more severe and Africa and its leaders need to act differently. We are now witnessing the largest cost-of-living crisis in a generation, and people’s capacity to cope is diminishing. 

Real incomes are falling and the countries’ revenues and ability to respond are declining. Without robust actions, these changes are pushing citizens and could potentially result in social and political unrest in many countries.

We need action now

The impact of these crises on existing vulnerabilities in Africa’s agri-food systems could be heightened unless mitigating actions are taken now to safeguard Africa’s food security and speed up the recovery of the agricultural sector. 

This is the moment for governments to consolidate the progress made and leverage existing structures and frameworks, including strengthening the CAADP process by adopting a more systemic view of food system transformation that goes beyond the current CAADP ambition of agricultural growth and transformation. 

National governments need to take a holistic and integrated food systems approach. After the UN Food Systems Summit, we are seeing a few countries like Ethiopia, Ghana, Malawi and Rwanda making this shift to design food systems strategies and plans. This is important because a critical lesson from these crises is that food systems cannot be compartmentalised; multi-sectoral and multi-stakeholder approaches and coordination will be essential in tackling future pandemics. 

Most families in Africa are feeling the pinch. Household budgets are shrinking as affording a daily meal has become a challenge for most households in Africa. The FAO has estimated that 53% of poorer household income is spent on food compared to 20% for richer households. 

Poorer households spend about 16% of their incomes on housing while 4% is spent on transport. Families cannot send their children to school and the poorest households are the most affected, especially women and girls. 

Turning crisis into opportunity

There is a general feeling that Africa is blaming the US and other Western countries in Europe for the sanctions on Russia as the source of food insecurity. In fact, Africa is blaming itself for allowing itself to be dependent on the rest of the world for food imports – a phenomenon Africa can change. 

Africa should turn this into an opportunity to produce its own food and export rather than relying on the rest of the world for food imports. Ethiopia, for example, can produce enough wheat to feed itself rather than spend $0.7bn annually to import wheat from Russia and Ukraine. 

While appreciating the short- and long-term solutions being proposed by international organisations such as the World Bank, the African Development Bank, the United Nations and others, African leaders need to turn this crisis as an opportunity and wake-up call to act differently and without hesitation push for reforms on the continent and at country level.

  • The complexities of African food systems require government support with a dedicated and consistent oversight at president or prime minister level, ready to make tough decisions, deal with vested interests, and inspire others to set bold ambitions. Business as usual will not deliver the desired change.
  • While it may be structurally challenging to redesign the agriculture public service system, leaders need strong multidisciplinary local teams with the technical expertise and ability to accelerate implementation with a governance and operating model that rewards a high-performance culture while tracking progress using performance indicators and evaluation metrics that leverage scorecards such as the African Union’s Biennial Review dashboard.
  • Africa leaders need to accelerate intra-regional trade through implementing the African Continental Free Trade Agreement and other regional trade agreements in the continent. This will not only enhance and ease the moving of food from surplus to deficit regions but will also ease the movement of fertiliser being produced on the continent to trade in the rest of the world.
  • Leaders must put in place policy incentives to create efficiencies in the supply chains such as electronic-based, private sector-driven and government enabled input subsidies and supply approaches.
  • African leaders need to deliberately work to protect consumers during the ongoing crises by establishing stimulus packages and strengthening social safety nets while supporting governments facing fiscal constraints.
  • African leaders must establish and strengthen functional strategic food reserves critical to always be ready to stabilise food supplies and prices to support domestic approaches. This is notable for ensuring food security in times of crisis.
  • Lastly, taking a food systems lens has also taught us that leaders need to scale up and enhance investments in areas such as climate adaptation, conservation farming and regenerative agriculture to increase productivity in strategic food surplus producing regions across the continent while protecting the environment.

Prioritising structural transformation that is green, inclusive, and resilient will ensure that no one is left behind and Africa is better prepared for the next crisis.

Originally posted on: https://african.business

Africa – Americas leaders agree to partner in advancing food system transformation

Last week, leaders from Africa and the Americas convened for the first-ever Africa-Americas ministerial summit, which brought together ministers of agriculture; national senior officials in the fields of environment, science and technology; heads of international organizations, and private sector representatives from 40 countries on a common platform to discuss strategies for collaboration in advancing a food system transformation. 

Under the theme “Building Bridges for Cooperation in Agrifood System Transformation”, the leaders arrived at a common position for cooperation in the promotion of sustainable agricultural productivity in confronting hunger and malnutrition. 

The summit came just weeks after the Food and Agriculture Organization released its State of Food Insecurity and Nutrition in the World 2022 report, which showed worsening hunger and malnutrition in Africa, spurred by emerging challenges like the Covid pandemic and climate change and the ongoing financial crisis.

With the Americas facing seemingly similar challenges as Africa, the ministerial summit came at the right time to share the knowledge and expertise that the former are using to stay ahead of their food system transformation goals. This is with regards to building on the momentum of the 2021 UN Food Systems Summit in addressing the shocks and stresses on food systems through a leadership that recognizes the need to deliver results for farmers, agricultural SMEs and other food system stakeholders. 

“We need to harness the opportunities available from the latest science, technology and innovation in food systems, including advancements in adaptive breeding, circular economy, alternative proteins; biology and chemistry,” said Dr. Agnes Kalibata, President at AGRA. 

Dr. Kalibata further provided direction on the action that must be taken to address the worsening effects of climate change.

“We know that our agri-food systems are some of the greatest drivers of climate emissions, when they could be one of its solutions. We need to explore nature positive production models as we look to achieve our goals, finding ways to compensate our farmers and businesses for sequestered carbon and improved agricultural practices,” she said.  

Leaders from the Americas committed to sharing with Africa the strategies they are using to transform their agricultural productivity, to such an extent that the region produces one out of every three tons of food traded in the world.

Manuel Otero, the Director General of the Inter-American Institute for Cooperation on Agriculture (IICA), emphasized the need for collaboration between Africa and the Americas in achieving global food system goals. 

“Africa is very powerful, and we have to remain united because we share many similarities. We must continue to reinforce our ties in strengthening agri-food systems through decisive action in the areas of food, environmental and energy security,” he said. 

For two days, the leaders exchanged their experiences in accelerating agri-food transformation, as they derived a partnership that would quicken the resolution of the emerging food, fertilizer and financial crisis, and climate change. 

Malawi Launches Agribusiness Deal Room with a Call for Bold Investments Towards Agricultural Transformation Ahead of the 2022 AGRF in Rwanda

  • The launch was led by the honorable Minister for Agriculture, Lobin Lowe, MP and AGRA Board Chair, H.E. Hailemariam Dessalegn
  • 65 guests attended physically, against the 40 that had been expected; a further 93 participated virtually

LILONGWE, Malawi: August 5, 2022 – Stakeholders in Malawi’s agriculture sector, including government representatives and private players, on Wednesday August 3, 2022 gathered in the country’s capital, Lilongwe, to launch the Malawi Agribusiness Dealroom.

Organized by the Alliance for a Green Revolution in Africa (AGRA), in collaboration with the Ministry of Agriculture and the Malawi Investment and Trade Center, the Malawi Agribusiness Dealroom will provide a platform for players in the country’s agriculture sector to collate their business proposals for presentation at the AGRF Summit, which takes place in Kigali, Rwanda from September 6 – 9, 2022. 

The launch was attended by Malawi’s agriculture minister, Honorable Lobin Lowe MP who was guest of honor, and H.E. Hailemariam Dessalegn, the former Prime Minister of Ethiopia and current Board Chair of the alliance for a Green Revolution in Africa (AGRA) and AGRF Partners Group.   

Hon. Lowe, noted that despite the unprecedented challenges that Malawi’s agriculture sector is facing – including the Covid pandemic and climate change – there were numerous opportunities for investment in the country. He invited investors of all capacities to the sector, with the promise of adequate support from his ministry. 

“My ministry is championing several policy reforms all meant to create a conducive environment for the business of agriculture. The ministry is also implementing the Affordable Inputs Program which will ensure that smallholder farmers access inputs to increase productivity,” he said. 

The minister also presented the preliminary design of his government’s “Mega-Farms” concept, for which investment is now open. The project is an initiative of H.E. President Lazarus McCarthy Chakwera, who seeks to introduce mega farms across the country to lead the agricultural commercialization plans for making his country food secure. 

The Mega Farms are envisioned as large-scale farms run as a collaboration between private investors and the government to produce critical agricultural products, but to also serve as centers of excellence for agronomy and innovation, and providing outreach services to communities around them.   

H.E. Dessalegn commended H.E. President Lazarus Chakwera’s leadership in the commitment to the country’s agricultural transformation agenda as well as articulation of Malawi’s food system pathways in line with the country’s Malawi 2030 Agenda evident in the appointment of the Minister of Agriculture to be the national convener and champion for food systems transformation.

In addition, the Board Chair reiterated AGRA’s commitment towards supporting food systems transformation interventions, while highlighting the multifaceted challenges facing Africa and indeed Malawi that require systematic approaches, hence, the emphasis on food systems approaches with the theme of this year’s AGRF Summit, ‘Bold Actions for Resilient Food Systems.’

“‘There is an opportunity to reflect on the coordinated and bold action by leaders, institutions, investors, coalitions and individuals towards translating our commitments highlighted in our different strategies to action and progress on the ground,’ he said. 

The 158 guests (65 physical, and 93 virtual) at the launch agreed that Malawi is ripe with numerous opportunities that require bold and coordinated action.With a population of over 20 million and sitting on 3.6m Hectares of arable land, Lake Malawi that stretches across most of the country, Malawi has enormous potential to feed itself and Africa (World Bank, 2018).


Note to editors:

About AGRA

AGRA is a farmer-centered, African-led, partnerships-driven institution that is working to transform smallholder farming from a solitary struggle to survive to a business that thrives. In collaboration with its partners—including African governments, researchers, development partners, the private sector and civil society— AGRA’s work primarily focuses on smallholder farmers – men and women who typically cultivate staple crops on two hectares or less. AGRA is now recognized across the continent as a strong voice for African rural development, a prosperous agricultural economy, and for supporting thousands of small African businesses and millions of African families to improve agriculture as a way of ensuring food security and transforming their livelihoods.

More informationhttps://agra.org ; Rebecca Weaverrweaver@agra.org; Sophie L Chitedze, SChitedze@agra.org 

About the AGRF

The AGRF is an annual gathering that convenes top leaders, thinkers and implementers in African agriculture across private, public, development and non-profit partners, and academic and research sectors. The AGRF seeks explicitly to draw these stakeholders around a common purpose – to unleash the full potential of Africa’s millions of smallholder farmers and their families who earn their livelihoods from small-scale farms and provide about 80% of the food and agricultural products consumed across the continent. 

More informationhttps://agrf.org

AGRA’s Women Agripreneurs of the Year Awards (WAYA 2022) Top 15 Applicants are Here

The Women Agripreneurs of the Year Awards (WAYA) has announced the 2022 edition’s Top 15 applicants.  The outstanding women agripreneurs were selected by a panel of independent judges under three categories; Outstanding Value-adding Enterprise, Female Ag Tech Innovator, and Young Female Agripreneur (Rising Star). The selected Top applicants are from nine African countries: Benin, Gambia, Ghana, Kenya, Malawi, Nigeria, South Africa, Uganda, and Zimbabwe. The applicants were selected from a total of 1478 applicants from 38 African countries.

The Winners will be announced during the AGRF Summit at the First Ladies’ Special Event on 7 September 2022. The event will be presided over by attending First Ladies from across Africa. The awards ceremony will take place physically at the Kigali Convention Center, Kigali, Rwanda. The theme of the session is: ‘Increasing Access to Healthy Diets in the AU Year of Nutrition’. The ultimate winners will each receive a cash prize of USD 20, 000.  

WAYA is an AGRA-led recognition scheme that was launched and implemented in 2021, with very promising prospects for reaching and recognizing more women agribusiness leaders in subsequent years. TheAwards seek to spotlight excelling female agribusiness leaders and promote them as positive role models. “Given the undeniable contribution of women to African agriculture and rural economies, a female-focused award scheme is an important way to showcase success – AGRA remains steadfast in its efforts to promote and support women’s agripreneurship in Africa,” said Vanessa Adams, Strategic Partnerships & Chief of Party.

Meet the WAYA 2022 Top 15 Applicants (names in alphabetical order):

Young Female Agripreneur (Rising Star)

  1. Aline Gaju; Managing Director, Germin8 LTD (Rwanda)
  2. Edith Mpoto; Managing Director, Nkhotakota Steadfast Cooperations for Youth (Malawi)
  3. Fatou Manneh; Founder, Jelmah Herbella (the Gambia)
  4. Janefrances Nkiruka Ighosewe;  Founder and CEO, Something Lite Greek Yogurt (Nigeria)
  5. Vanessa Aisha Limann; CEO, Vanelim Enterprise (Ghana)

Outstanding value-adding enterprise

  1. Célia Chabi; CEO, KIEL BIEN-ÊTRE (Benin)
  2. Dorah Kwamboka Momanyi; Founder and CEO, iPop Africa Limited (Kenya)
  3. Judith Marera;  Founder and CEO, Lanforce Trading (Pvt) Ltd (Zimbabwe)
  4. Oluwaseun Sangoleye; Mum in Chief/CEO, Baby Grubz (Nigeria
  5. Precious Awesome; CEO, Awesome God Agro Allied Industries Limited (Nigeria)

Female Ag Tech Innovator

  1. Esther Irine Nell; Chairperson, Pella Food Garden Cooperative (South Africa)
  2. Ogola Lois Kange; CEO Smiley’z Mobile Kitchen Limited (Smiley’z Foods) (Nigeria)
  3. Oluyemisi Iranloye; Managing Director, Psaltry International (Nigeria)
  4. Susan Kahumbu; CEO, Green Dreams TECH Ltd (Kenya)
  5. Uwintwari Liliane; CEO,Mahwi Tech (Rwanda)

To register to attend the AGRF Summit and the WAYA Awards, please click here: https://bit.ly/3vudV70

About AGRA

Founded in 2006, AGRA, is an African-led African-based organization that seeks to catalyze Agriculture Transformation in Africa. AGRA is focused on putting smallholder farmers at the center of the continent’s growing economy by transforming agriculture from a solitary struggle to survive into farming as a business that thrives. As the sector that employs the majority of Africa’s people, nearly all of them small-scale farmers, AGRA recognizes that developing smallholder agriculture into a productive, efficient, and sustainable system is essential to ensuring food security, lifting millions out of poverty, and driving equitable growth across the continent. www.agra.org

More information:

Mejury Shiri, mshiri@agra.org; Rebecca Weaver, rweaver@agra.org

H.E President Chakwera Accepts Proposal by AGRA Chair to create Malawi’s Agricultural Transformation Agency

  • H.E. Dessalegn paid a courtesy call to H.E. Chakwera to discuss matters around food system transformation
  • H.E.  Dessalegn pitched a Malawian Agricultural Transformation Agency, which H.E. President Chakwera agreed to, promising support in fast-tracking it

August 2, 2022: Lilongwe, Malawi – The former Prime Minister of Ethiopia and current Board Chairman of AGRA, H.E. Hailemariam Dessalegn, on Monday, 1st August 2022 met with Malawi’s President H.E. Dr. Lazarus McCarthy Chakwera, for dialogue on his country’s food system priorities.

During the meeting, H.E. Dessalegn recognized H.E. Chakwera’s work in advancing agriculture as a key priority for the development of his country, citing the prominent position of the sector in his Agenda 2063 first 10 year plan.

The AGRA Chair further commended President Chakwera’s leadership in the development and articulation of Malawi’s food system pathways, game changing solutions and commitment to a holistic food system transformation that delivers on the 2030 Agenda.

In addition, H.E. Dessalegn proposed the establishment of an Agricultural Transformation Agency (ATA) in Malawi.

“We need multiple agencies to work together and this calls for an institution to have binding effect on delivery. ATA is an important institution that IFAD, AGRA, BMGF and McKinsey are supporting to establish to unlock bottlenecks by Malawian institutions… Support can be accessed through the ATA on transforming the economy through the establishment of agro-processing areas to double production and resolve market and processing issues as was experienced in Ethiopia through the ATA,” said H.E. Dessalegn.

In response, H.E. President Chakwera said:

“Working with AGRA is a great advantage for us as a nation that will enable it not only to feed itself but also move from subsistence to commercialization. So, when you talk of ATA, this is more than welcome, and we could fast track that because local cooperatives and anchor farms will benefit a lot… With AGRA and ATA, we can succeed!”

The discussion also touched on AGRA’s areas of support to the Malawian government, including policy design, flagship development and a food system transformation action plan.

H.E. Dessalegn further used the opportunity to invite H.E. Chakwera to the AGRF Summit, which is set to take place in Kigali, Rwanda from September 6-9, an invitation that the latter promised to seriously consider despite the stringent restrictions on international travel by his government as a measure for economic rejuvenation.

The meeting came just two weeks after H.E. Dessalegn visited Zambia on a three-day trip that saw him hold audience with H.E. President Hakainde Hichilema, on the strategies for fast-tracking Africa’s food system transformation.

-ENDS

Note to editors:

About AGRA

AGRA is a farmer-centered, African-led, partnerships-driven institution that is working to transform smallholder farming from a solitary struggle to survive to a business that thrives. In collaboration with its partners—including African governments, researchers, development partners, the private sector and civil society— AGRA’s work primarily focuses on smallholder farmers – men and women who typically cultivate staple crops on two hectares or less. AGRA is now recognized across the continent as a strong voice for African rural development, a prosperous agricultural economy, and for supporting thousands of small African businesses and millions of African families to improve agriculture as a way of ensuring food security and transforming their livelihoods.

More informationhttps://agra.org ; Rebecca Weaverrweaver@agra.org; Sophie Chitedze, SChitedze@agra.org

About the AGRF

The AGRF is an annual gathering that convenes top leaders, thinkers and implementers in African agriculture across private, public, development and non-profit partners, and academic and research sectors. The AGRF seeks explicitly to draw these stakeholders around a common purpose – to unleash the full potential of Africa’s millions of smallholder farmers and their families who earn their livelihoods from small-scale farms and provide about 80% of the food and agricultural products consumed across the continent.

More informationhttps://agrf.org

The future of agricultural access to finance

Co-written with Dr. Hermann Messan, Program Officer for Inclusive Finance at the Alliance for a Green Revolution in Africa (AGRA), and Olufunmi Adepoju, Managing Partner at PearlMutual Consulting Limited, Xoe Juliani, Marketing and Communication Officer at SCOPEinsight, Hermann Messan, Program Officer Inclusive Finance – West Africa at theAlliance for a Green Revolution in Africa (AGRA), Funmi Adepoju, Managing Partner atPearlMutual Consulting Limited

In a recent project with AGRA and various Local Experts, including PearlMutual Consulting Limited in Nigeria, SCOPEinsight piloted the bankability metrics and their ability to increase access to finance for agribusinesses.

A pilot to increase access to finance

A map of Africa showing the countries in the project and the logos of the Local Experts. Agri Vision Sahel worked in Mali, MDF worked in Ghana, PearlMutual worked in Nigeria, and Sundy Merchants worked in Tanzania.
The project was conducted in Tanzania, Ghana, Mali, and Nigeria by four Local Experts.

In 2019, SCOPEinsight and AGRA began a project to graduate agribusinesses and link them to finance. The project was conducted in four countries: Tanzania, Ghana, Mali, and Nigeria. Three to four agribusinesses were assessed per country. The agribusinesses were assessed initially in 2019, then they were given targeted training and capacity building to increase their professionalism based on the results of their baseline assessment.

In 2021, the agribusinesses were reassessed to show what improvements they had made, thanks to the training and capacity building they received. The data from their reassessments was used to fill out the bankability metrics, which were developed in 2021 by SCOPEinsight, AGRA, and the Center for Financial Inclusion (CFI). These metrics contain the information on agribusinesses that banks require for their pre-due diligence process. The bankability metrics with the reassessment data were shared with multiple banks and other non-bank financial institutions and then discussed in follow-up meetings.

Creating a lasting business development ecosystem

The four local organizations who assessed and trained the agribusinesses are all members of the SCOPEinsight Local Expert Network (LEN). The LEN is part of an effort by SCOPEinsight and AGRA to create a more effective business development services (BDS) ecosystem. By combining SCOPEinsight’s global standards and the local expertise of like-minded businesses, the LEN ensures that international capacity builders can efficiently implement their projects while strengthening the local economy. Working with standardized tools allows for benchmarking and data comparison, but localizing with expert knowledge allows for customization to the environment. This combination is crucial to the LEN’s success.

Working with the LEN to create a bankable agribusiness pipeline

As part of the pilot project, SCOPEinsight and the Local Experts used SCOPE assessment data to create a pipeline of bankable agribusinesses for financial institutions. The data from SCOPE assessments can be used in many ways, including creating targeted BDS and benchmarking agribusinesses. Another potential usage of SCOPE data is the bankability metrics, which were designed to be used alongside SCOPE assessments.

Addressing Farmer Working Capital: Bankability metrics provide a common language between farmers and financial institutions. Agribusinesses meet market requirements through professionalization, and lenders have transparency into risks.
The bankability metrics can act as a connection between agribusinesses and lenders.

In the pilot, the bankability metrics were filled out using the SCOPE assessment data and then shared individually with local financial institutions. However, for future usage, SCOPEinsight has developed a Portal that financial institutions can use to discover agribusinesses which fit their loan profiles and risk appetite. The Portal will contain basic information on agribusinesses and their filled-out bankability metrics. This will provide financial institutions what they need for their pre-due diligence process. This portal will also allow agribusinesses to directly communicate with financial institutions more easily. Overall, the Portal will help reduce information asymmetry between the demand and supply sides of finance for agribusinesses by using a reliable methodology that is jointly agreeable for stakeholders of BDS and financial ecosystems.

Promising successes from PearlMutual in Nigeria

In Nigeria, PearlMutual Consulting Limited conducted the assessments and capacity building for the agribusinesses. PearlMutual is a leading Nigerian business advisory firm with more than ten years of experience delivering various Capital Raising, Financial Advisory, and Executive Training services. PearlMutual has also been a member of the LEN since 2021.

As part of the project, PearlMutual had meetings with multiple local banks in Nigeria to explain how the data from SCOPE assessments can help in the pre-due diligence process for agribusinesses. PearlMutual’s status and connections in the banking industry helped them to open doors for the project. As a result of these meetings, PearlMutual is currently in the process of signing an MOU with Sterling Bank, who now intends to use SCOPE data in their pre-due diligence process with their SWAY AgFin product. PearlMutual is also working to recreate this success with other local banks.

The business case for the graduation process and pipeline

Agra Project Map 1
While there may be other influencing factors, agribusinesses of different levels will generally cover different amounts of their capacity building costs, sometimes with help from external funds.

While the SCOPE Portal is still a work in progress, SCOPEinsight and AGRA have many plans of how the graduation system and pipeline will work in practice. The specifics of payment for the assessment and capacity building will depend on several factors. These include the level of development of the financial and BDS ecosystem, the size and type of agribusinesses, the nature of the financial institutions’ partners, the presence of conveners and donors, etc. For example, while some agribusinesses cannot afford to pay for their own assessments and training, others can afford to pay either part of the sum or the entirety of it. The agribusinesses that cannot afford to cover the costs at all will rely on donor funds, while mid-level agribusinesses will work together with external funds to cover the cost, and higher-level agribusinesses will be able to pay for it on their own.

Once the agribusinesses have been assessed and their data has been put into the bankability metrics, they will be added to the SCOPE Portal. Here, financial institutions will pay to access the Portal and view their potential pipeline. Various financial institutions have already indicated that the data in the bankability metrics would save them time and money on their pre-due diligence process, and they have confirmed their willingness to pay for a pipeline.

Next steps towards greater access to finance

The completed pilot project has shown that there is a great deal of promise in the deployment of the bankability metrics as a cornerstone for the establishment of a sustainable BDS ecosystem. The next step is to increase their usage and to introduce them to more financial institutions so that they can become a ‘hygiene factor’ in the industry. The SCOPE Portal also needs to be piloted and further refined, to determine how best to display the data for the bankable agribusinesses. With the combination of SCOPEinsight’s standardized data and tools, AGRA’s global connections and standing, and the local knowledge and expertise of Local Experts like PearlMutual, an ecosystem can be created where agribusinesses, BDS providers, and financial institutions can all work together and communicate effectively.

Lessons learned so far

A few important lessons have been learned through the just ended pilot:

  • A strong, reliable, and internationally proven methodology is important in gaining momentum from the agribusinesses and obtaining confidence from the financial sector. In this project, the SCOPE Methodology and the bankability metrics filled this role.
  • A strong understanding of the local environment through the LEN brings agility in BDS provision in different markets with different local realities.
  • The neutral convener and catalyst roles played by AGRA proved critical to connect the dots and reduce frictions. This was done by aligning both the supply and demand side on one side and by facilitating market development through continuous support through the entire value chain.
  • It is important to spend enough time in raising awareness and increasing the confidence of the financial sector on the benefits of the bankability metrics.
  • The economics of the bankability portal needs to be finetuned to make it a seamless and go-to tool for sourcing agribusiness deals and closing the gap on the unmet demand for financial services in agriculture finance.

Originally posted on https://scopeinsight.com

Lead with local solutions: What I learned while supporting agriculture transformation in Africa

Author: Thierry Ngoga

In June 2022, I stepped down from my role as the head of Support to State Capability at AGRA. After four years focused on capacity building for agricultural transformation, I leave the hustle and bustle of Nairobi to begin a new venture.

During my time at AGRA, I have supported a multitude of state and non-state actors, helping to create the policies, frameworks and environments necessary to drive change in the agriculture sector. In the course of this work, ‘the why’has always been clear. Across Africa, agriculture remains a vital source of livelihood, supporting about 65% of the population, mainly the poor.[1] Overall, the sector accounts for 61% of employment opportunities, 20% of gross domestic product (GDP), and 9.2% of total exports.[2] As such, agriculture is critical to the achievement of key development goals, such as food and nutrition security, import substitution, and economic growth, which in turn stimulate job creation, poverty alleviation, and youth and gender empowerment. Efforts to help African countries realise their agricultural potential, and enable inclusive sector transformation, are, therefore, essential.

What has been less clear is ‘the how’. Naturally, different countries take different approaches. Rwanda, for example, has created a Single Project Implementation Unit (SPIU) that merges all relevant entities within the Ministry of Agriculture to deliver transformation programmes. In Ethiopia, the Agriculture Transformation Agency (ATA), which is modelled on the ‘special agencies’ of South Korea, Taiwan, Province of China and Malaysia, has been established for this task. And in Nigeria, transformation plans are implemented through the alignment of state and federal leadership. Across Africa, there is a diverse range of agricultural delivery mechanisms and models. But which is best? What works and what doesn’t? And should these mechanisms be integrated into, or independent of, government systems?

The following insights and observations draw from my experience of working with countries on agricultural policies and programmes. They are intended to highlight some of the major gaps and barriers that still exist across the continent. They also aim to help shape strategies that will enable the successful delivery of agricultural transformation.

Commitment to the cause

High-calibre staff and well-functioning institutions are essential to effective delivery. But alone, they are not enough. To be truly impactful, delivery mechanisms need to be underpinned by strong moral foundations. Staff, for example, must be fully aligned with their organisation’s mission and values. Such alignment is critical, as it is the primary driver of engagement. It is the principal motivating factor in an employee’s everyday actions and endeavours. Without it, key personnel – be they ministers, directors, officers or managers – will lack the discipline and dedication required to deliver programme objectives.

Commonly found within the public sector in Africa, moral responsibility for agricultural transformation is imperative yet seldom prioritised. And no amount of institutional staff capacity can fill this gap. At every level, everyone working towards transformation has to view delivery as their moral duty, and their core purpose. It has to be part of their DNA. If we cannot achieve genuine commitment to the cause, transformation efforts will be compromised, lacking the impetus, conviction and continuity needed to deliver results.

By way of example, a key factor in Israel’s success in transforming its agriculture sector was the unwavering and universal support generated for the programme. During the mid-to-late 20th century, agricultural development was decreed a national priority, with strong, unifying leadership and vision from the highest levels of government. As a result, delivery was non-negotiable, and the relentless efforts of the country’s agricultural pioneers enabled the most unlikely of green revolutions. Today, despite its arid climate and landscape, Israel is a world leader in dairy, fruit and vegetable production, water management and post-harvest handling.

The burden of bureaucracy

Another contributor to Israel’s success, one I have witnessed first-hand, is the lack of bureaucratic constraints within its institutions. Compared to the African public sector, where requests to meet with senior officials often need to be sent and approved by letter, Israel’s civil service enjoys a level of informality that is immensely liberating. Everyone is addressed by their name, not their title. Open-door policies create an environment that encourages new ideas and innovation, enabling programme objectives to be achieved quickly and efficiently.

African institutions, which are often heavily hierarchical, should learn from this example. In many African countries, cumbersome, siloed and slow-moving structures, entrenched in bureaucratic procedure, present insurmountable barriers to progress. Government ministries also tend to be staffed by ageing personnel, who are unwilling to countenance new ways of working. Not only do these restrictive environments impede delivery; they fail to attract and engage the young leaders of the future.

But there is hope. In Kenya, the Agriculture Transformation Office (ATO), which was recently established as the primary delivery mechanism for the country’s Agricultural Sector Transformation and Growth Strategy (ASTGS), has presented an alternative model. Housed within the Ministry of Agriculture, the ATO was mandated to enhance coordination across the sector by breaking down siloes and slashing the red tape that has traditionally hindered transformation efforts. As Covid-19 hit, the ATO was enlisted to support Kenya’s Food Security War Room (FSWR), the government’s rapid response unit created to oversee food security during the pandemic.

Bypassing the usual bureaucratic protocols, the ATO and FSWR showed how direct lines of communication, sector-wide coordination and action-oriented processes can expedite decision-making and delivery. Thanks to these efforts, Kenya successfully navigated the multiple challenges it faced at the time of the Covid outbreak. And although conceived in a time of crisis, these mechanisms provide lessons in collaboration, engagement, efficiency and speed that should now be leveraged across the continent.

Ministry mandates

The operationalisation of the ATO in Kenya highlights the extent to which ministries are heavily reliant on specialist agencies and units – internally created or externally appointed – to deliver their primary mandate. Over and over again, capacity issues arise in government that call for agency support. Is it time, then, to review the roles of those institutions currently in charge of agricultural transformation at country level?

In Ethiopia, the ATA was originally empowered to report directly to the Prime Minister’s Office, rather than the actual ministry whose mandate it was helping to achieve. Further, the creation of parallel institutions within government has major cost implications, while also generating horizontal and vertical duplication of functions.

So, what does the future hold? Will government ministries ultimately be supplanted by specialist agencies? Or can existing institutions be reformed to become more streamlined, progressive and impactful? One solution could be to reduce the number of ministries within government (for example, having 10 instead of 30), while using agencies to bridge key capacity gaps. By moving away from heavy government structures, agencies and ministries could begin to work together with greater synergy and efficiency. This approach could also address some of the rampant challenges of attracting and retaining talented civil servants, such as providing better financial incentives.

Context is key

Above all, delivery models and mechanisms have to be tailored to the country context. Back in the 1980s, Structural Adjustment Programs (SAPs) paved the way for debt relief in Africa, conditional upon economic liberalisation and privatisation. These solutions, imposed from the outside, had scant regard for the national economies and cultural systems within which African societies function. As a result, local ownership of political and economic decision-making, and commitment to implementation, were diminished. This in turn led to non-prioritised, poorly customised and sequenced strategies that have failed to deliver agricultural transformation.

There is no one-size-fits-all solution to the challenges facing African agriculture. And external interventions, parachuted in from above, with no contextual awareness or nuance, will continue to fall short of the mark. Through my work with AGRA, I have learned that successful interventions begin from a point of understanding achieved through rigorous diagnostics and dialogue. In order to deliver in a way that is meaningful and sustainable, agencies, donors and other actors need to put their own perspectives and agendas to one side. Rather than impose their own programme templates, they need to listen to what the people and institutions on the ground require in order to advance. Because every country and every culture is different, it is only through customised, context-relevant responses that we will begin to make genuine strides towards agricultural transformation in Africa.

Additional key takeaways

There are of course a multitude of considerations to take into account when devising agricultural policies, programmes and interventions. The following are just a few of the additional key takeaways from my state capability work with AGRA: 

  • Prioritise and differentiate. While it is important to be ambitious, it is equally important to make ambitions realistic. Through small, prioritised interventions, we can begin to identify what works and what doesn’t, what is scalable and what isn’t, and thereby set the right start point. These activities require the formulation of flexible and dynamic policies, and the identification and integration of effective change agents.
  • Sector leadership needs to be aligned from national to subnational levels, with clarity of roles and responsibilities established among all stakeholders. Such clarity makes coordination easier and delivery faster. Meanwhile, capacity enhancements of mandated institutions must focus on the subnational level, where actual implementation takes place.
  • Try different approaches to accelerate delivery. This process should be adopted when resources partners – both financial and technical – are co-designing support to countries. It is also important to let government and national actors drive the changes required, with support provided from behind the scenes.
  • Don’t address long-term challenges with short-term solutions. While donor support and disbursements usually happen over the short term, addressing state capability issues requires long-term commitment and vision.
  • Locally-grown solutions and traditional interventions are of significant value. Transformation programmes are likely to be more impactful if infused with cultural practices that resonate with local communities. Rwanda, for example, has mainstreamed the process of imihigo, a cultural practice whereby leaders or warriors make a public vow to achieve specified goals or face public humiliation. Deeply rooted in Rwandan culture, imihigo is being leveraged to encourage culture-based performance and accountability in agricultural service delivery.

[1] AGRA, 2018

[2] Tralac, 2017

The President of AGRA informed IICA’s Executive Committee that the Americas and Africa are working together to produce more and better-quality food

Next week, Agnes Kalibata, former Minister of Agriculture of Rwanda and President of AGRA, will be taking part in the first Summit of Africa and the Americas on Agrifood Systems, the objective of which is to strengthen cooperation between the two continents in the face of the global threats to food security.

San Jose, 21 July 2022 (IICA) – The President of the Alliance for a Green Revolution in Africa (AGRA), Agnes Kalibata, told senior officials from more than 20 countries in the Americas that the two continents are working together to “produce more and better-quality food” at a time when the global situation poses a threat to food security.

Kalibata, former Minister of Agriculture of Rwanda and the UN Secretary General’s Special Envoy for the 2021 Food Systems Summit, addressed the ministers, secretaries, and other representatives of more than 20 countries in the Americas taking part in this year’s meeting of the Executive Committee of the Inter-American Institute for Cooperation on Agriculture (IICA), in Costa Rica.

Next week, the head of AGRA will also participate in the first Summit of Africa and the Americas on Agrifood Systems, the aim of which is to strengthen cooperation between the two continents in the face of the global threats to food security.

The forum is being organized by IICA, the African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) and the Alliance for a Green Revolution in Africa (AGRA). The partners are convinced that the two continents face similar challenges in achieving agrifood system transformation and will benefit from the deepening of discussions and the sharing of experiences designed to foster mutual collaboration within the framework of South-South Cooperation.

The ministerial meeting will be inaugurated on 27 July by the President of AGRA, the Director General of IICA, Manuel Otero, and the Chief Executive Officer of AUDA-NEPAD, Nardos Bekele-Thomas.

“In January of this year, the agriculture ministers of Africa and the Americas agreed to work together. We agreed to share ideas about nutrition, people’s health needs, and the need to produce more and better-quality food. After that meeting, it was proposed that a Ministerial Summit be held to make further headway with food assistance. The summit will take place 27-29 July in Costa Rica. IICA, AGRA, and the African Union Development Agency are working together to support our member states, to get the most out of this Summit,” the former minister remarked.

“I know that in recent times the countries of the Americas have faced similar challenges to the African countries. Amidst the challenges, African scientists have made great strides in developing high-yielding, highly nutritious, drought-tolerant crop varieties. We have also seen scientists from the Americas make great strides in productivity,” she added.

“Given the progress made and the challenges posed by climate change, we will only achieve sustainability and success more quickly by identifying and building on our different strengths. I therefore ask you to join me in developing stronger food systems for people, the planet and prosperity,” Kalibata urged.

The Africa-Americas Summit will be taking place at a time when the war in Eastern Europe has destabilized world commodity markets and global trade flows, triggering surges in the prices of food and raw materials around the world.

The situation in Eastern Europe is also negatively impacting recovery from the COVID-19 pandemic in Africa and the Americas, where food security has worsened in many countries and is expected to continue deteriorating.

The face-to-face meeting, which will also include contributions from online participants, will be the most important event to be held so far as part of the joint efforts that leaders in Africa and the Americas have been making to align their priorities based on productive, environmental, cultural, and historical similarities and shared challenges related to agrifood systems.

The Summit is expected to provide a clear understanding of the role that Africa and the Americas can play in shaping future global food and environmental security; and open up opportunities for cooperation in the areas of science, technology, and innovation, with a view to building sustainable and resilient agricultural systems.

The Summit will be used to identify areas of joint work between the two regions and specific topics for cooperation, as well as the operational and financial mechanisms required to mobilize the necessary resources. The ministers and officials taking part will focus on five cross-cutting issues that are regarded as key to increasing the productivity, inclusiveness, and sustainability of agrifood systems:

  • Science, technology, and innovation, including biotechnology
  • Climate change and resilience
  • Digital agriculture
  • Institutional innovations and policies for social inclusion, safety nets, health and nutrition, and the recovery of degraded natural resources
  • Fostering of a fairer and more transparent international food trade system

More information:
Institutional Communication Division.
comunicacion.institucional@iica.int

Originally posted on https://www.iica.int

Ministers of Africa and the Americas to hold first summit to enhance cooperation on agrifood issues

The meeting, to be held on 27, 28 and 29 July in Costa Rica, will outline the role of Africa and the Americas in global food and environmental security. It will provide opportunities for bi-regional cooperation in science, technology and innovation, with a view to building resilient and sustainable food systems.

San Jose / Nairobi, 19 July 2022 (IICA/AGRA/AUDA-NEPAD) – Ministers of Agriculture, national senior officials in the fields of environment, science and technology, heads of international organizations and private sector representatives will meet this month during the first Summit of Africa and the Americas, which will seek to enhance cooperation between the two continents   on Agrifood Systems amid global threats to food security.

The high-level meeting “Building Bridges for Cooperation in Agrifood System Transformation” will take place at the headquarters of the Inter-American Institute for Cooperation on Agriculture (IICA) in San Jose, Costa Rica, from 27 to 29 July.

The Summit is being organized by IICA, the African Union Development Agency – New Partnership for Africa’s Development (AUDA-NEPAD) and AGRA, who agree that both continents face common challenges in advancing agrifood system transformation and will benefit from sharing of experiences to foster collaboration within the framework of South-South Cooperation.

Dr. Agnes Kalibata, President of AGRA; Manuel Otero, Director General of IICA; and Nardos Bekele-Thomas, Executive Director of AUDA-NEPAD, will open the ministerial meeting on July 27.

The Summit will take place at a time when a partnership between Africa and the Americas is more important than ever: the Russia Ukraine Conflict has destabilized world commodity markets and global trade flows, leading to an increase in global food and input prices.

The Conflict has also negatively impacted recovery from the Covid-19 pandemic in many countries in Africa and the Americas, where food security has worsened and is expected to continue deteriorating.

The hybrid Summit is the most important event within the framework of joint efforts between leaders of Africa and the Americas to align their priorities based on productive, environmental, cultural and historical similarities and common challenges with respect to agrifood systems. 

At the Summit, ministers and officials will identify areas of joint work and cooperation between the two regions, as well as the operational and financial mechanisms required to mobilize the necessary resources to increase the productivity, inclusion, and sustainability of agrifood systems. They will focus on five key areas: Science, technology and innovation, including biotechnology

  • Climate change and resilience
  • Digital agriculture
  • Institutional innovations and policies for social inclusion, safety nets, health and nutrition, and the recovery of degraded natural resources
  • Fostering a fairer and more transparent international food trade system

About IICA

IICA is the specialized agency for agriculture in the Inter-American system, with a mission to encourage, promote and support its 34 Member States in their efforts to achieve agricultural development and rural well-being through international technical cooperation of excellence. www.iica.int/en 

About AUDA-NEPAD

The African Union Development Agency-NEPAD is the technical body of the African Union. The core mandate of the AUDA-NEPAD is to facilitate and coordinate the implementation of regional and continental priority programmes and projects and to push for partnerships, resource mobilisation, research and knowledge management. Through AUDA-NEPAD African countries are provided unique opportunities to take full control of their development agenda, to work more closely together, and to cooperate more effectively with international partners. www.nepad.org 

About AGRA

Founded in 2006, AGRA, is an African-led African-based organization that seeks to catalyze Agriculture Transformation in Africa. AGRA is focused on putting smallholder farmers at the center of the continent’s growing economy by transforming agriculture from a solitary struggle to survive into farming as a business that thrives. As the sector that employs the majority of Africa’s people, nearly all of them small-scale farmers, AGRA recognizes that developing smallholder agriculture into a productive, efficient, and sustainable system is essential to ensuring food security, lifting millions out of poverty, and driving equitable growth across the continent. www.agra.org 

More information:

Institutional Communication Division of IICA
comunicacion.institucional@iica.int 

Mwanja Ng’anjo, Ag. Head of Communication, AUDA-NEPAD
Mwanjan@nepad.org

Rebecca Weaver, Ag. Head of Communications, AGRA
rweaver@agra.org