global agriculture and food security program in response to sc...

NICHOLA DYER, PROGRAM MANAGER

Global Agriculture and Food Security Program

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In response to SC request, we have tried to understand and characterize the portfolio

What GAFSP does

• G8, G20 Initiative• Country-led• Comprehensive approach to

agriculture• Medium- and long-term

interventions• Targeted to the strongest

proposals from countries and projects with the highest need and readiness

• Inclusive and transparent• Innovative governance• Aligned with SDGs• Pooled grant funds

Increasing incomes and improving food and nutrition security through increased investment in agriculture

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Growth in agriculture is 2 -4 times more effective at raising the incomes of the poor than any other sector. GAFSP set up in the wake of the 2008 food crisis, post-Aquila, but re-endorsed as a critical tool to achieve the SDGs 1 and 2 (poverty and hunger), given that growth in agricultural investments and productivity will be essential to achieving these goals. GAFSP picks up where emergency funding leaves off: sustainable investments towards more resilience to climate, political, and market shocks in the future. It focuses on agricultural productivity growth, linking farmers to markets, and increased capacity and technical skills. It is country led, and stresses good governance, inclusivity, high-quality projects, and intensive monitoring and evaluation of factual results. SDGs 1 and 2: Underscored in Africa by the Malabo declaration (2014). GAFSP is designed to support the food chain where countries need it most – following government and agribusiness priorities. This has been strengthened in Africa by the link with CAADP and the requirement that all African country applicants have completed the CAADP process. CAADP is a key to GAFSP – the program requires applicant African countries to have completed a CAADP process To date, 17 CAADP countries have received around $586 million in grant financing from GAFSP Africa has shown leadership in this regard – being modeled in other regions GAFSP Goals and Indicators: SDGs as umbrella – poverty and food security through Ag investments. Indicators: No. of people reached; increased incomes; increased productivity; improved food security ******************************************************************** GAFSP takes a comprehensive view of agricultural development – focused on five pillars: Increased agricultural productivity; Linking farmers to markets; Reducing risk and vulnerability; Improving non-farm rural livelihoods; Technical assistance and capacity development Every dollar invested by GAFSP generates $2.5 farm income gain because resources go to communities where needs are higher

Funding along the value chainPublic Sector Window Private Sector Window

Objective Provides grant funding directly to sovereign governments in accordance with countries' overall investment strategies

Provides investment (and advisory services) to eligible private sector companies in agribusiness, in conjunction with IFC’s investments

Managed by: World Bank IFC

Funding: US$ 1.2 billion US$ 356 million

Donors: 11 total

9- Australia, Canada, the Bill & Melinda Gates Foundation, Germany, Ireland, Korea, Spain, the UK, and the US

5 - Australia, Canada, Japan, the Netherlands, the UK, and the US

Supervising Entities:

ADB; AfDB; FAO; IADB; IFAD; WB; WFP

IFC

New Missing Middle Initiative: targeted support to small-scale farmers as they advance from subsistence farming, to farmer organizations, and eventually full commercial viability

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PrSW and PuSW: Different mechanisms, necessarily different, but very much complementary The Public Sector Window assists strategic country-led or regional programs that result from sector-wide country or regional consultations and planning exercises such as CAADP in Africa. The Private Sector Window is designed to provide long- and short-term loans, credit guarantees, and equity to support private sector activities for agricultural development and food security.

61%11%

9%9%

Regional Distribution of Funds

Africa

Asia

LAC

Other

What GAFSP does, where it works: both windows

All projects focus on:

1. Increased agricultural productivity

2. Linking farmers to markets

3. Reducing risk and vulnerability

4. Improving non-farm rural livelihoods

5. Technical assistance and capacity development

…in low-income countries with the greatest rates of poverty, hunger, and malnutrition.

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Acknowledge components and eligibility stretch across the two windows

The Public Sector Window Pools donor funding as grant funds to governments

for long-term development objectives

Requires country ownership, and engagement with civil society and the private sector

Multiple open calls for proposals with evolving requirements and rating systems

Projects rated by an independent panel of technical experts based on transparent guidelines and a ratio of need (40), country readiness to implement (30), and proposal strength (30)

Highly competitive - historically only one third of projects have received funding

Completion of CAADP (or similar process in non-CAADP countries) is required

Snapshot:

• $1.02b in grants already allocated to 30 countries

• Average grant size about $35m -range $8m-$50m

• 5m beneficiaries already reached -on track to reach 11.8m

• Every dollar invested by GAFSP generates $2.5 farm income gain

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The Private Sector WindowAllocated for deals that could not go

forward otherwiseAlways open for business “Sweetens” the deal Provides a variety of financing options

to existing and greenfield firmsincluding:

short and longer term loans, guarantees, first loss cover, equity capital, and advisory services

….Often at concessional terms.

Fiscal Year

GAFSP$ to Total Project Size

GAFSP$ to IFC$

FY13 1 : 10.1 1 : 1.8

FY14 1 : 4.5 1 : 1.9

FY15 1 : 5.1 1 : 1.7

FY16 1 : 4.8 1 : 1.2

FY13-16 1 : 5.8 1 : 1.7

Snapshot• $217m approved

for 36 investment projects

• $6.8m for 35 advisory projects

• Projects leverage in 3.1 x funding on average

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The concessional funding from GAFSP, combined with the flexibility of GAFSP’s features, help the project mobilize and leverage more private sector investment from IFC and other global and local investors.

GAFSP has allocated over one third of funds to 10 fragile or conflicted-affected states.

Beyond Traditional Agriculture

$140m or 14% of public sector funding is targeted toward nutrition activities. 1/3 of that is direct nutrition intervention.

Uganda project is multisectoral, housed in health ministry.

87% of publicprojects address all 3 elements of gender main-streaming (analysis, gender-informed action, and gender-disaggregated M&E).

Nepal project focuses on women.

Over 65% of public sector projects (48% of funds) support climate adaption and/or mitigation benefits.

Bangladesh is allocating 100% of funds to these efforts.

CLIMATE-SMART AGRICULTURE GENDER NUTRITION FRAGILE STATES

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I UPDATED THIS

Bhutan Mountain Hazelnuts: private sector greenfield investment focused on hazelnut trees planted on fallow land that otherwise has no commercial use for the farmers.

Rwanda: Increasing productivity; empowering coops; strengthening entire value chain; both windows active - coops connected to AIFL, DSM through Private Sector Window.

Cameroon: private sector investment that builds on IFAD and IDA projects; Pulling together public and private partners and resources to integrate farmers/co-ops into the value chain.

Project Examples

Togo: Government created matching grants scheme to leveraging domestic financing that supports everything from cocoa plantations to entrepreneurs to agri businesses.

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Rwanda is an example of a project that uses GAFSP public sector funds to increase the productivity and capacity of smallholders, and GAFSP private sector funds to encourage private sector development in areas linked directly to the public sector investment - Rwanda ($50 million grant) increase productivity and market of hillside agriculture has already covered 101 watersheds reaching 209,251 beneficiaries (nearly 50% women), which far exceeds the final target. Yields of maize, beans, and Irish potato in treated areas are 30%, 167%, and 219% - above their national average new high yielding and high nutrition crops introduced. In Cameroon, the private sector investment Cameroon part of a comprehensive initiative to pull together public and private partners/resources to support the sustainable development of agriculture integrating farmers into the value chain targets the three largest agricultural value chains in the country – cassava, maize and sorghum aims to transform the lives of over 220,000 small farmers. help intensify production systems and contribute to increased production, food security, and competitiveness as well as to improved livelihoods and reduced poverty for farmers. Malawi ($39.6 million grant) reached 40,086 farmers (50% women) constructed new irrigation and drainage schemes covering 823 hectares Farmers received trainings on seed multiplication; rain fed cropping; conservation agriculture; and post-harvest and value addition processes Togo ($39 million grant) technology and promotion of agricultural diversification enabled 13,000 beneficiaries to become members of an association or cooperative rice yield have increased by 30% group-based experimental learning activities in 200 farmer field schools; rehabilitated 18,255 ha coffee and cocoa land 68,578 beneficiaries have received productive inputs (seeds, fertilizers)

Thank you

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Stepping over to another role or putting on another hat…. Defacto head of the Public Sector Window

Public Sector Window - Eligibility Criteria

Eligible Proposals from low-income countries (IDA-only countries) that have been endorsed by

multiple ministries and the country donor group, and have undergone technical reviews

Type of Activities

raising agricultural productivity linking farmers to markets reducing risk and vulnerability improving non-farm rural livelihoods technical assistance

Weighting Country Need (weight of 30) Country Readiness (30) Proposal Readiness (40)

Submission Documents

African Countries: CAADP Post Compact Investment Plan Country Proposal for GAFSP Financing Signed CAADP Compact CAADP Post-Compact Agricultural Sector

Investment Plan CAADP Post-Compact Technical Review Report Documentation of CAADP Business Meeting

Non-African Countries: Country Investment Plan Country Proposal for GAFSP Financing Agriculture and Food Security Strategy Agriculture and Food Security

Investment Plan An independent and thorough peer

review report of the investment plan

Fourth Call for Proposals is currently open

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, thereby contributing to the achievement of the MDG1 to cut hunger and poverty by half by 2015

Eligible Countries11Africa

(32 countries)

East Asia and the Pacific(11 countries)

ECA

(3 countries)

Latin America

(4 countries)

Middle East(1 country)

South Asia

(5 countries)

BeninBurkina FasoBurundiCARChadComorosCôte d’IvoireDjiboutiDRCEthiopiaGambiaGhana

GuineaGuinea-BissauKenyaLesothoLiberia MadagascarMalawiMaliMauritaniaMozambiqueNiger

RwandaSao Tome &

PrincipeSenegalSierra Leone South SudanTanzaniaTogoUgandaZambia

CambodiaKiribatiLao PDRMarshall IslandsMicronesia, FSMyanmarSamoaSolomon IslandsTongaTuvaluVanuatu

KosovoKyrgyz Rep.Tajikistan

GuyanaHaitiHondurasNicaragua

Yemen AfghanistanBangladeshBhutanMaldivesNepal

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Key process steps and Call timeline

Submission documents: Table 1 (pg. 6-7) lists the documents required to be included in the submission package to the GAFSP Coordination Unit. The Document Checklist should clearly indicate which of the submitted documents corresponds to the items required in the list in Table 1, using the template in Annex 4.

Form and deadline of submission: Submission should be via e-mail to [email protected]. Submission documents must be in Microsoft Word, Excel, or PDF. An acknowledgement email will be sent upon confirmation of receipt. Submissions must be received by: 11.59pm, Monday January 9th, 2017 (Washington, D.C. time). No exceptions will be made on the deadline or document formats. We encourage countries to submit a few days earlier in case of any technical problems in the submission process.

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For African countries For Non-African countries(1) Document Checklist (1) Document Checklist(1) Cover letter with endorsement signature from Minister of Finance,

and at least one technical ministry.(1) Cover letter with endorsement signature from Minister of

Finance, and at least one technical ministry.

(1) Evidence of support from the in-country Sector Working Group, such as a letter

(3) Evidence of support from the in-country Sector Working Group (or equivalent), such as a letter, where such groups exist (or from a major donor if such Groups don’t exist).

(1) Statement of readiness from preferred Supervising Entity(ies) (4) Statement of readiness from preferred Supervising Entity(ies)

(5) GAFSP proposal (Parts 1 & 2) (5) GAFSP proposal (Parts 1 & 2)

(6) Agriculture and Food Security Strategy (6) Agriculture and Food Security Strategy

(7) Current CAADP Agriculture and Food Security Investment Plan (NAIP). For African countries that have completed implementation of a CAADP NAIP: an updated comprehensive Agricultural and Food Security Investment Plan, or, if this is not yet finalized, a Malabo Declaration country implementation roadmap based on the June 30, 2016 AUC/NPCA CAADP guidelines.

(7) Agriculture and Food Security Investment Plan

(8) CAADP Technical Review Report of the Investment Plan (or an updated version). For those African countries that have completed implementation of a CAADP NAIP: an independent and thorough technical review report of their current investment plan.

(8) An independent and thorough technical review report of the investment plan

(9) Country response to the independent review observations (9) Country response to the independent review observations