Facilitating Equitable Agricultural Development in sub-Saharan Africa - PowerPoint PPT Presentation


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Facilitating Equitable Agricultural Development in sub-Saharan Africa


Facilitating Equitable Agricultural Development in sub-Saharan Africa. The Case of Kenya. Contents. ... Ministry of Agriculture, ... Their role is mainly policy ... – PowerPoint PPT presentation

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Title: Facilitating Equitable Agricultural Development in sub-Saharan Africa

Facilitating Equitable Agricultural Development
in sub-Saharan Africa
  • The Case of Kenya

  • Objectives, TORs and methodology
  • Agricultural sector in Kenya an overview
  • Evolution of polices and outcomes
  • Stakeholders and their relations
  • Stakeholder participation in policy process
  • The Private sector in agriculture
  • Smallholders and agricultural development
  • Challenges for various stakeholders
  • Recommendations

Objectives, TORs and Methodology
  • Analyse the enabling environment for inclusive
    agricultural development in Kenya
  • An overview of the sector
  • Policy, legal and regulatory frameworks in the
  • Relationships existing between policy makers and
    key stakeholders
  • Private sector in Agriculture and smallholders
  • Recommendations for policy

  • Literature review
  • Secondary data from MoA, MoT and several
  • Primary data from
  • -FGDs with farmer organizations,
  • Key informants from agricultural sector
  • Consultations with FNRG

Agricultural Sector in Kenya An overview
  • Contributes to 23 per cent of GDP, 65 per cent
    of total exports and 70 per cent of employment
  • Economic growth is highly correlated with
    Agricultural growth (figure 1.1)
  • More than 80 per cent of total agricultural
    production is done by low income smallholders
    with farms ranging from 0.25 to 2 acres
  • Consists of 6 sub-sectors Livestock, food
    crops, industrial crops, fisheries and forestry
  • Horticulture contributes 33 per cent of GDP and
    38 per cent of export earnings

Agricultural systems, production and trade
  • 16 per cent arable land in medium to high
    potential areas
  • Land fragmentation is too high, about 4 million
    farms are less than an acre
  • Small holders re about 6million with farm sizes
    ranging between 0.25 to 3 ha
  • Major crops cash crops include, horticulture,
    tea, coffee, sugarcane and cotton
  • Major food crops include maize and rice

Trends in productivity
  • General low productivity per ha for most crops
    except tea and horticulture
  • Decreasing area under production for key crops
    such as cotton, sugar, coffee which are directly
    linked to poverty alleviation
  • Increased area under production for maize but
    decreasing yields (productivity)
  • Low technology adoption and poor farming methods

Evolution of policies outcomes
  • Pre-independence policies were mainly colonial,
    Africans were not allowed to grow any cash crops
    but they provided labor for the British farmers
  • Post independence 1960s to 70s
  • government intervention and support in
    production and marketing
  • Smallholders organized in cooperatives
  • Rapid growth in agriculture (6 per cent)

Evolution of policies contd
  • Liberalization era 1980s to 90s
  • Liberalization as a conditionality for Aid
  • SAPs saw abolition of marketing boards and
  • Abolition of government support in production and
  • Declining growth in the sector to -4.1 percent at
    its lowest
  • Post liberalization policies eg SRA
  • Emphasis on the need to revitalize agriculture
  • Increased agricultural spending and an increase
    in agricultural growth

  • Government institutions
  • Ministries Ministry of Agriculture, Ministry of
    Regional Development Authorities, ministry of
    cooperative Development and Marketing, ministry
    of fisheries Development and ministry of
    Livestock Development
  • Their role is mainly policy implementation,
    creating an enabling environment
  • Parastatals for various crops managing the
    production and marketing of various crops
  • Producer organizations umbrella organizations
    for farmers
  • NGOs and civil society advocacy and lobbying
  • Research institutions- provide evidence based
  • Donor Agencies and ODAs, - funding for projects
    and programs
  • Farmers, private sector and agro-processors

Relationship between stakeholders
  • Individual smallholders produce or subsistence
    and may sell to middle men or producer
  • Some have contractual arrangements with
    agro-processors eg sugarcane industry
  • Middlemen either sell directly in the local
    markets, supermarkets or they sell to
  • relationship.docx

Relationships between stakeholders in policy
  • Pre- independence policies were largely made by
    the colonialists to suit them, no participation
    of any other stakeholders
  • Post independence policies were dictated by the
    government with no participation from other
  • In the 1990s era of SAPS policy was largely
    influenced by doors and policy process was
    largely a donor / government affair
  • Post liberalization involved participation of
    private sector lobby groups, advocacy through
    civil society and POs through policy round tables

Private Sector in Agriculture
  • Typology
  • farmers, middlemen, Processors and foreign
  • Supporting institutions financial and credit,
    capacity building, marketing and information
  • Agro processing and value added is still low
  • FDI predominantly large farms dominion and
    horticulture sector (employment, vs competition)
  • Middlemen exploitative to smallholders during
    surplus periods

Constraints for private sector development in
  • Macro-economic environment inflation, high
    interest rates and high taxes
  • High cost of energy
  • High cost of labour
  • Poor infrastructure
  • Policy and regulatory environment not conducive
    for smallholders
  • Lack of clear regulatory measures to protect
    smallholders against exploitation by middlemen
  • Regional Trade policies that are not harmonized
    and therefore hamper exports
  • Cartelization o the agricultural sector

Smallholders in Agriculture and their constraints
  • Constitute 80 per cent of total agricultural
  • Lack of technology and poor technology absorption
  • High cost of inputs
  • Lack of information and knowledge en better
    agricultural practices
  • Lack of proper marketing channels hence
    exploitation by middlemen
  • Poor access to credit
  • Poor infrastructure especially rural access roads
  • Cheap imports sugar, maize, rice and cotton
    sectors (dis-incentive for production)
  • Lack of proper representation in policy decisions
    lobbying is mostly done by large farmers eg
    wheat sector

  • Major highlights
  • Poor policy, legal and regulatory frameworks that
    hamper development of the sector
  • Poor resource allocation and investments in the
    sector by the government (poor planning)
  • Low FDI inflows
  • Low technology adoption resulting in low
  • Poor infrastructure
  • Macro-economic environment that is not conducive
    for investments and growth of the sector
  • Corruption, cartels and cheap imports virtually
    leading to a collapse of sugar, cotton, rice and
    perhaps maize sectors

  • Need to increase resource allocation to a desired
    level of 10 per cent of government expenditure
    and a need to review recurrent vs. development
  • Urgent need for stabilization of macro-economic
  • Urgent need of investments in rural
    infrastructure and irrigation
  • Creation of a stimulus package for investments in
    agro-processing, value added and export promotion
    in the region
  • Addressing corruption and cartels hampering the
    development of some sub-sectors
  • Enhancing support services for smallholders by
    strengthening their producer organizations and
    cooperatives, including institutional capacity
    for policy advocacy and lobbying
  • Address regional disparity in resource allocation
    and governments investments
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