Framework for the Improvement of Rural Infrastructure and Trade Related Capacities for Market Access

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Framework for the Improvement of Rural
Infrastructure and Trade Related Capacities for
Market Access (FIMA) under CAADPAn Overview of
Proposed Early Actions

• Baba DIOUM
• CMA/WCA
• Lead Institution CAADP Pillar 2

USAID Dakar Meeting, July 30, 2008
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Outline

• CAADP Pillar 2s Objective
• Pillar 2 Implementation Tools
• Key Pillar 2 Areas
• Proposed Early Actions (Area by Area)
• Circulation/Validation and Endorsement of FIMA
• FIMA Implementation Agenda

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CAADP Pillar 2s Objective

• Under its Pillar 2, CAADP aims to accelerate
  growth in the agricultural sector
• by raising the capacities of private
  entrepreneurs, including commercial and
  smallholder farmers,
• to meet the increasingly complex quality and
  logistic requirements of domestic, regional and
  international markets,
• focusing on strategic value chains with the
  greatest potential to generate broad-based income
  growth and create wealth in the rural areas and
  the rest of the economy.

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Pillar 2 framework is designed to

• guide the facilitating and coordinating roles of
  the NEPAD Secretariat and leading Regional Eco
  Communities (RECs)
• serve as a tool to ensure successful
  implementation of Pillar 2 by RECs and member
  countries
• provide guidance to public and private sector
  actors, including farmer organizations

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Pillar 2 Implementation Tools

• Investment and Trade Policies
• Regulatory and Institutional Changes
• Technical and Commercial Capacity Building
• Public-Private Partnerships
• Business to Business Alliances
• Infrastructure Development
• Regional Harmonization of Country Strategies

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Key Pillar 2 Areas

• FIVE AREAS are identified for actual
  implementation of Pillar 2
• Area A Raising competitiveness and seizing
  opportunities in domestic, regional and
  international markets
• Area B Investment in commercial and trade
  infrastructure to lower the cost of supplying
  national, regional and international markets
• Area C Value-chain development and financial
  services in strategic sectors
• Area D Strengthening the commercial and
  technical capacities of farmer organizations and
  trade associations
• Area E Benchmarking and Monitoring Evaluation

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Pillar 2 Proposed Early Actions

• Designed to serve as entry points to scaling up
  Pillar 2 agenda at the country and regional
  levels
• Target key priority areas and activities that
  respond to broadly shared needs across countries
  and regions
• Require collective action and lend themselves to
  economies of scale
• Start with pilot programs to be scaled up as
  implementation proceeds

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Area A Raising Competitiveness and Seizing
Opportunities in Domestic, Regional and
International Markets

• Proposed Early Actions
• 1. Agricultural Trade facilitation
• To create the required institutional,
  regulatory, and policy frameworks to facilitate
  the emergence of regional economic spaces and
  boost the expansion of regional trade and
  cross-country investments
• 2. International trade advocacy and negotiations
  capacity building
• To better articulate African interests in
  bilateral and multilateral trade negotiations in
  order to remove foreign-policy distortions that
  limit market access and affect the
  competitiveness of African exports
• 3. Development of quality management and trade
  certification services systems
• To facilitate compliance with international
  trade agreements and overcome non-technical
  barriers affecting the growth of African exports

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Area B Investment in commercial and Trade
Infrastructure to Lower the Cost of Supplying
Domestic, Regional and Intl Markets

• Proposed Early Actions
• Infrastructure for Growth Initiative (I4GI)
• To develop and implement a master plan to link
  current regional transport infrastructure
  corridor projects to potential agricultural
  growth poles
• Indicative activities include
• 1. Identification of main agricultural growth
  poles in UMA, COMESA, ECOWAS, ECCAS, SADC and
  IGAD regions
• 2. Systematic review of existing infrastructure
  corridor projects, in collaboration with the
  NEPAD Infrastructure Unit
• 3. Specification of additional infrastructure
  needs to link growth poles within and across
  regions
• 4. Elaboration of strategies to improve
  coordination of infrastructure development
  programs at the regional level and across
  countries
• 5. Creation of opportunities for partnerships to
  promote investment in agricultural-growth-oriented
  regional infrastructure projects

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Area C Value-Chain Development and Access to
Financial Services

• Proposed Early Actions
• 1. Agricultural investment and enterprise
  development platforms
• To promote the adoption of effective and
  efficient tools for PPPs and B2B alliances that
  can boost agricultural value-chain development
• 2. Agribusiness joint venture fairs
• To expand joint venture opportunities in the
  agribusiness sector by facilitating contacts
  between entrepreneurs and investors in the early
  stages of enterprise creation
• 3. Fertilizer and seed systems development
• To (a) speed up the emergence of broadly
  accessible, cost-effective, and competitive seed
  and fertilizer supplies and financing systems and
  (b) significantly raise the use of both inputs by
  smallholder farmers

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Area D Strengthening the Commercial and
Technical Capacities of Farmer Organizations and
Trade Associations

• Proposed Early Actions
• 1. Design and piloting effective models of value
  chain integration for smallholder farmers
• To develop effective and scalable tools to
  support partnerships and alliances between
  governments, private sector operators, and
  leading local FO/TAs that can broaden the access
  of smallholder farmers to commercial and
  technical services
• 2. Design and piloting of innovative vocational
  training and workforce development systems
• To accelerate the modernization of farming
  systems and ensure the long-term technological
  competitiveness of Africas smallholder and
  agribusiness sectors in the global agricultural
  economy

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Circulation/Validationand Endorsement of
FIMA (1/2)

• Country roundtables
• According to countries agenda, Pillar 2 will
  participate in the roundtable processes and
  provide guidance regarding investment priorities
• Involvement of the Private Sector
• The strong involvement of the Private Sector at
  the continental level will be sought
• Alignment of private and public partners
• Guidance
• In each area identified under Pillar 2 concept
  notes on key issues will be elaborate and
  communicated to large range of stakeholders
  (Private Sector, Public sector, FO, TA)

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Circulation/Validationand Endorsement of FIMA
(2/2)

• Circulation of the CAADP Pillar 2 Framework
• The document will be circulated to larger groups
  of stakeholders, making sure to diversify method
  of communication so it is tailored to the
  audience
• Validation of the Framework at RECs level
• March 2008
• June 2008
• Endorsement by AU/NEPAD
• Next Conference of Heads of States

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FIMA Implementation Agenda
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Thank you for your attention