Liberia Agriculture Transformation Agenda

Moses Zinnah

Minister of Agriculture, Liberia

Agropoles and Agro-processing zones

AfDB, 12 March 2016

Economy dependent on commodities because agriculture & manufacturing growing too slowly: need new approach

0%

10%

20%

30%

40%

50%

60%

70%

80%

0 100 200 300 400 500 600

Workers in Main Economic Sectors versus Average Annual Real GDP Growth by Sector, 2005-2013

Source: ESRP 2015. Data from IMF, Government of Liberia, Labour Force Survey (2010)

Agriculture

Commerce

Mining & Utilities

Construction

Government

TransportManufacturing

Number of workers, thousands

Ave

rage

an

nu

al G

DP

gro

wth

20

05

-20

13

Few WorkersMany workers

Low Growth

High Growth

Need transformation agenda; paradigm shift & integrated vision to grow core of Liberian economy

Vision for Economic Diversification & Industrialisation

Agriculture ManufacturingAgro-Processing & Value Added

Crops used as base inputProcessed crops stimulate light manufacturing e.g. packaging

Creates much larger, stable market for farmers Creates much larger, stable market for value addition investors

Services

Stimulate demand for services sector e.g. logistics & financial & business services

1

2 Holistic Approach: Value Chain Development & Targeting Products We can Manufacturing from Our Crops

What Products Can we Manufacture AT SCALE in Liberia from Our Main Crops?

Rubberwood, RSS, Household utensils, Fan Belts, Shoes, Boots, MatsCooking Oil, Soaps, Biomass fuel, FeedGrade A, Feed, Butter, Powder, Chocolate, CosmeticsFresh/Dried, Fillets, Canning, Frozen, Fish SauceHigh Quality Flour, Chips, Gari, Fufu, Glue, Starches, AlcoholRice, Cereals, Feed, Snacks, Crackers, Rice Oil, Noodles

RubberOil PalmCocoa

Fish

CassavaRice

C VP

C V

CV

P

P

P

P

RPF

A

P

R

V

F Marine Fish Hubs

Oil Palm Areas Rubber Processing Clusters

Rice & Vegetable Hubs

AquaculturePrime Cocoa AreasC

AP

R

R

Prime Areas for Priority Value Chains for Job Creation

P

RR

F

A

A

A

A

R

F

S Cassava

S

S

S

F

Wester Corridor

Opportunity for an Agricultural Industry

(Agriculture, Agro-Processing & Manufacturing)

ONE PROGRAM: Develop value chains for agricultural goods,

from production to processing and manufacturing, by promoting

market systems and adopting industrial policy

OBJECTIVE TO 2017: Agro-businesses irreversibly anchored in

Liberia’s long-term economic landscape through increased

investments of private sector at critical stages of the value chains

MULTI-STAKEHOLDER APPROACH: Government,

Development partners, Foreign and Domestic Private Sector,

International and Domestic NGOs, Cooperatives/Farmers

COMPARATIVE ADVANTAGE: Cocoa, Oil Palm, Rubber, Rice,

Cassava, Fisheries (Marine/Aquaculture), Poultry/Livestock

3-pronged Strategy

1. Build up the agricultural sector as an additional economic pillar by focusing on the value chains for which Liberia has comparative advantages;

2. Significantly increase the amount of sustainable livelihood in the sector by promoting self-sustaining market systems linking farmers all the way to the final consumer, regulated by Government for effectiveness;

3. Adopt an export-driven industrial policy for the 21st century, with targeted governmental intervention that supports the emergence of value addition and the production of downstream goods.

Major Emphasis of LATA Implemention

Private sector as the major driver; make agriculture a sustainable business;

Proper identification/documentation of major players in the agriculture sector via E-Registration of farmers, famers’ associations/cooperatives, input suppliers, aggregators, processors, etc. along the value chains;

Provision of the key inputs (seeds, fertilizers, pesticides, etc.) on a timely basis; and

Provision of “Growth Enhancement Support” (i.e. cost-sharing arrangements, removal of tariffs and duties on agriculture inputs, equipment, etc.) to farmers to ensure sustainable micro-economic stability.

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THANK YOU