Tag: financing

In spite of the government’s seeming focus on the development of agriculture, Nigeria is among the African countries lagging behind in the World Bank’s projected funding of the sector.

It emerged at the Agriculture and Finance ministers’ from sub-Sahara Africa meeting during the just concluded World bank-IMF meeting in the United States, that Nigeria’s investment in the sector that employs 70 per cent of Africa’s population is less than the World Bank-dictated 10 per cent of public expenditure.

“In Africa, even more so than in other regions in the world, agriculture growth is hugely important for any effort to end poverty and promote shared prosperity,” Makhtar Diop, World Bank Vice President for Africa, told the Ministers.

He added: “Economic activity in agriculture typically accounts for 30 to 40% of GDP, and there is global evidence showing that productivity improvements in agriculture can have a poverty impact close to three times that of other sectors of society.”

The participants discussed “Sustaining the Comprehensive Africa Agricultural Development Programme (CAADP) Momentum.” Launched by African leaders in 2003, CAADP seeks to encourage governments to increase investments into the agricultural sector and allocate 10 per cent of their public expenditures to the agriculture sector.

“Since 2003, CAADP has demonstrated that African institutions can come together to address the critical challenges facing the continent. Already, Burkina Faso, Ethiopia, Ghana, Guinea, Malawi, Mali, Niger and Senegal have met or exceeded CAADP’s 10% target,” said Sari Söderström Feyzioglu, Senior Manager for Sustainable Development in the Africa Region.

“On our side it has been a win-win opportunity as well. CAADP has helped to align the Bank’s strategic focus and strengthen its strategic partnerships for optimal development impact.”

Since 2003, 32 countries have created national agriculture investment plans that lay out priorities for meeting the CAADP goals. On average, public agriculture expenditures have risen by over 7 per cent per year across Africa (more than 12% per year in low income countries) and have more than doubled since CAADP’s launch, signaling greater recognition of the agricultural sector as an engine of growth and poverty reduction.

Abebe Haile Gabriel, the African Union Director for Rural Economy and Agriculture, noted that the Commission had designated 2014 as AU’s Year of Agriculture and Food Security. The AU will launch its new plan for CAADP called “Sustaining the CAADP Momentum.”

Gabriel also announced that new funding for CAADP – a second Multi-Donor Trust Fund (MDTF) – managed by the World Bank, will be sought The MDTF fund provides grants to African institutions and finances technical assistance to the CAADP process. In its next phase, CAADP will focus on implementation, Gabriel said. “We would like to use this opportunity to call on our partners to support the next phase of CAADP which is going to be very exciting,” he said.

CAADP’s next phase will put a new emphasis on issues such as creating stronger platforms for agriculture policy formulation, encouraging private sector development in the agriculture sector, support for climate smart agriculture, education, food security and improved nutrition.

“We are seeing the build up of institutions in countries throughout Africa, which has been made possible by the support from CAADP,” said Estherine Fotabong, Head of Programme Implementation and Coordination Director, NEPAD. “This has been a very positive program and we want to see a continuation of financing. It has made it possible for us to have programs in gender, climate change and the role of women in agriculture,” she said.