advancing African agriculture PPPs: Upscaling agribusiness successes - PowerPoint PPT Presentation

Global food systems, local impact: the role of agribusiness and development partnerships in advancing African agriculture PPPs: Upscaling agribusiness successes in Africa Karl Schebesta . Chief , UNIDO Agri -busines Development Unit

UNIDO partnerships https://www.unido.org/businesspartnerships.html

the models

The Accelerated Agribusiness and Agro-industries Development Initiative (3ADI) http://www.3adi.org 4

the “three frameworks” 3ADI or the Abuja Declaration (March 2010) focuses on:  agri-business value chains  food security  policies  financing  trade It is consistent with the Accelerated Industrial Development for Africa (AIDA, 2008) and the LDC Plan of Action (December 2009) which add on:  infrastructure  energy and environment  innovation 5

the means  leverage the current attention to agriculture for development in selected countries to accelerate the development of agribusiness and agro-industries sectors that ensure value-addition to agricultural products  support a well coordinated effort to share knowledge and harmonize programmes in ways that capture synergies, avoid fragmented efforts, and enhance developmental impacts  support an investment programme that will significantly increase the proportion of agricultural produce in the selected countries that is transformed into differentiated high-value products. 6

Maximizing impact through partnership UNIDO UNIDO $ Project Impact identification PA $ Monitoring Pograming evaluation DFIs GOV /PS Finance DP and Implementation Negotiations DFIs TC Loan and grant UNIDO $$ agreements

the expected results Four critical areas of support:  enabling policies and public goods  value chain skills and technologies  post-production institutions and services  reinforced financing and risk mitigation mechanisms

… linked in value chain maps 9

UPSCALING

Alignment to the national Strategy Industrial road Map Partners’ programs and strategies ISID-PCP TC projects and program s (UNIDO Partners)

Synergies with partners Maximizing impact through partnership Industrial COORDINATION MECHANISM road Map NIDC NIDC and NTF  Partners’ Coordinates partners, private sector programs and Gov. institutions and strategies  Promotes investments NTF  Leads fund mobilization/allocation ISID-PCP UNIDO UNIDO task force Multidisciplinary team for integrated services 12

Ethiopia PROGRAMME FOR COUNTRY PARTNERSHIP 13

Industrial development strategy Vision to become MIC by 2025 Industry leading the transformation Prepared : Manufacturing sector -- 4% to 18% of the GDP • Industrial development strategy • Upgrading • Road map • Enterprise cultivation 65,000 SMEs • Institutional set-up • Industrial Zones development Established National Industrial Create 780,000 Jobs Development Council (NIDC) for coordination.

Partnership Country Programme Based on the opportunities and endowments - three sub- sectors (and IZs as tool) identified. Opportunities Assets Sectors Job creation Leather and • Low labor cost leather products potential Raw material sector Textile and • Abundant resources SHF apparel sector commrrcialization • AGOA/Cotonou (EU and Export US) Proximity to EU/US Agro-food sector potential Attracting • Global Trend of industrial Migration Industrial zones to Africa invesment 15

Partnership(example of the IAIP development) 4 parks • Geographical clustering of industries • Market access for 2 million SHF • I (hybrid seeds and fertilizer by PS) • One stop service • Shared services (packaging, cold and dry storage, training centers, research banks , logistics etc.. ) Partner Interventions UNIDO; FAO, UNDP, ATA Feasibility study, business plan Federal and regional Land , offsite infrastructure governments IFC Finance for the private sector (TBD) Loan to the government infrastructure and capacity WB building (TBD) Off-site infrastructure (TBD) AfDB Anchor investors/leasing shells Private sector

Maximizing impact through partnership - New PCP approach New approach Partnership Country Program CP /IP Scaling-up Project best practices program investment Project implemen identifi tation cation Project Implementation Investment development UNIDO’s and donors’ IAIP : UNIDO 400 million USD resources resources; 1-5 million 30-50 K • Mobilized capital of 1 mio $ Edible Oil VC: 1 million US but need 20-30 mio USD 30 K PA Joint proj. 78 MSE clustered and • Negotiation with IFC development upgraded 17

 Staple Crop Processing Zones  Nigeria

The establishment of Staple Crop Processing Zones in Nigeria Resource SCPZ Project design mobilization Implementation Federal Government Federal Infrastructure of SCPZ Government of (roads, water, buildings of Nigeria Nigeria etc) ($US1.4 million) Connectivity IFIs Infrastructure of SCPZ (Power lines, road etc) Specialized Regional Master plans Infrastructure of SCPZ Governments of UNIDO (feeder roads, collection Nigeria centers etc) Private sector SC Processing Factories

Progress Operations Operations and maintenance Performance monitoring and Where we are going control Data collection and analysis Commissioning and Start up Testing and sampling Start up Staff Training programmes Organizational Development Operation and maintenance plans Procurement & Construction Authorities Pre-qualifications Design specifications Design Requests for bidding Site Planning Bidding Evaluations Energy Balance Planning Contract Award Water Balance Project Definition Contract management Utility connections Demand Analysis Conceptual design Project management & Supervision Design and Engineering Market Analysis Feasibility studies Quantity surveying Licenses Institutional framework Environment Project management Relationship with local authorities Infrastructure Financial, Organizational and Environmental Impact Assessment Legal support Investment Plan Policy Regulations Cost Benefit Analysis Resource Planning Institutional Aspects The SCPZ Planning, Operation and Socio economic aspects maintenance Policy Functional Program/implementation plan Procurement planning The SCPZ Bill

Staple Crop Processing Zones: Overview of Investment Opportunities Investment Opportunities: Key Investors Site/Estate/Infrastructure Investors 1 2 Industrialist/Agro Processors The Key Farmer Coops/Companies 3 Investors in the SCPZ Service Providers 4 & ABIR Government (Federal, State, LG) 5 Development Partners 6

Partner Support US$100m SCPZ Support for SCPZ Support for SCPZ Support Project (for infrastructure related SCPZ institutions through a re - agricultural and infrastructure) at organization of productions the Project the WB CADP through the Preparation stage Fadama Project Support for SCPZ Pledged Budget SCPZ Project/ infrastructure through Support Facility Transaction Support approved US$152m for SCPZ Facility Pledged SCPZ related SCPZ Project Development agricultural production Support through GEMS support SCPZ Project Development support 22

New Initiative: “Chemical Leasing goes Agro” Pilot project in wheat and maize cultivation, Serbia Benefits of the ChL field:  45% less consumption of nitrogen fertilizer  2% increase in yield  No leaf rust (optimized usage of agrochemicals)

The Global Chemical Leasing (ChL) Programme is UNIDO’s response to the unsustainable management of chemicals  It represents an integrated preventive environmental strategy & win – win situation for industry and environment ChL, is a service-oriented business model that shifts the focus from selling chemicals to selling the functions performed by a chemical. Chemical Leasing is in line with the UNIDO ISID approach

THANK YOU! 26