Strengthening the New Alliance Country Cooperation Frameworks as a

tool for Malabo Implementation CCA Consultation Meeting

June 30-July 1, 2016NEPAD ,South Africa

By: Dr. Nalishebo Meebelo and Samson Jemaneh Mekasha

Outline1. Overview of the New Alliance2. New Alliance Progress to date3. New Alliance and CAADP4. New Alliance Country Cooperation Frameworks

(CCF)5. CCF as a tool in Malabo Implementation 6. Way forward-Questions to answer as we position

CCA in the Malabo Context

Overview of the New Alliance• The New Alliance for Food Security and Nutrition is a shared commitment to

achieve sustained inclusive, agriculture-led growth in Africa.

• The New Alliance is an encouraging step towards including the private sector in the growth and development of Africa’s agriculture sector consistent with countries National Agriculture and Food Security Investment Plans (NAIPs)

• Launched in 2012, the New Alliance for Food Security and Nutrition set out to:

Accelerate implementation of key components of the Comprehensive Africa Agriculture Development Programme (CAADP)

Leverage the potential of responsible private investment to support development goals

Reaffirm continued donor commitment to reducing poverty and hunger Achieve sustained inclusive, agriculture-led growth in Africa

Overview of the New Alliance contd. • The New Alliance is a partnership in which stakeholders commit to

specific policy reforms and investments, outlined in Cooperation Frameworks, that accelerate implementation of African country food security strategies.

• These commitments address key constraints to agriculture-led growth in Africa, including those that prevent smallholder farmers, particularly women, from increasing their productivity and accessing markets.

• Partners agree to hold themselves accountable to these commitments, reporting annually on progress. Strong commitment and implementation at the country level is key to New Alliance success.

Government Policy Commitments in the New Alliance Country Cooperation Frameworks

• In their Cooperation Frameworks, the ten New Alliance countries have committed to 213 policy changes across a range of agriculture and food security issues, aligned with each country’s National Agriculture and Food Security Investment Plan goals.

• Through these policy commitments, governments are making headway on some of the most longstanding constraints to agricultural investment and food security.

• Commitment areas include:– Business enabling environment: Policies that facilitate sound investment, including infrastructure, tax

reforms and access to finance– Inputs: Policies that regulate the production, distribution and use of improved seed, fertilizer, pesticides

and farming implements– Land and resources rights: Policies that clarify and strengthen rights to productive resources such as

land and water to protect communities and investors– Nutrition: Policies related to key elements that can affect nutrition, including biofortification,

fortification, nutrition policies and malnutrition treatment– Policy institutions: Policies related to strengthening and supporting institutions that implement the

vision, objectives and strategies of governments– Resilience and risk management: Policies that build resilience and manage risk, especially important for

ensuring resilient communities and sustained development for vulnerable populations– Trade and markets: Policies that promote efficient and competitive domestic marketing and trading

systems that are unencumbered by fiscal, regulatory and administrative barriers and supported by adequate infrastructure

Development Partners Commitment• In the ten Cooperation Frameworks,

development partners have collectively committed to provide nearly $6.2 billion through the New Alliance in support of National Agriculture and Food Security Investment Plans.

• The duration of these commitments, noted in each Cooperation Framework, varies by development partner

Private Sector Letters of Intent• The New Alliance Cooperation Frameworks include public summaries of private

sector Letters of Intent. More than 200 private sector companies, two-thirds of which are based in Africa, have signed Letters of Intent to invest $7.8 billion in African agriculture

• A Letter of Intent is a voluntary document signed by a private sector actor outlining a commitment to invest responsibly in African agriculture.

• Letters of Intent are not binding contracts to invest.

• Crucial characteristics of Letters of Intent include:– Alignment with host country strategies– Measurable investment targets, including a dollar figure to be invested and a number of

smallholders to be reached, either directly or indirectly– Development impacts alongside business bottom line impacts– A commitment to socially responsible investment– Commitment to the New Alliance and Grow Africa process

New Alliance Latest Progress Highlights

New Alliance Progress (2014/2015)BY COMPANIES BY GOVERNMENTS BY DONORS

• $1billion invested (2014/2015)

• Less than 10% of investments report major problems.

• 8.7 million smallholders reached with sourcing or services,

• Smallholders got $300mn of income from production.

• 58,000 jobs created.

• African companies lead the investment.

• 92% of policy reforms due by June 2015 were complete or making good progress.

• Progress best regarding inputs, institutions, and resilience and risk management.

• Progress slowest with regards to land and resource rights, and trade and markets.

• $3.1bn disbursed, representing 86% of expectation.

• Volume variable across countries

Progress on Government Policy Commitments

Trade and Markets

Nutrition

Land and Resource Rights and Policy

Enabling Environment for Private sector investment

Resilience and Risk management

Other

Policy Institutions

Inputs Policy

0% 20% 40% 60% 80% 100%

17%

22%

27%

37%

43%

50%

50%

62%

83%

72%

73%

54%

57%

50%

50%

38%

6%

9%

Progress Against Policy areas due by june 2015

Complete Some Progress No progress

Nutrition

Infrastructure Development

Land and Resource Rights and Policy

Policy Institutions

Enabling Environment for Private sector investment

Inputs Policy

0%20%

40%60%

80%100%

100%

100%

89%

78%

61%

67%

11%

11%

28%

33%

11%

11%

Progress against polciy areas due after 2015

Complete Some Progress No progress

• Overall, the results show that governments across the continent are committed to making policy reforms in agriculture.

• Overall, 33 percent of policy commitments were complete, 59 percent had made good progress.

• For the policy commitments that were due by June 25, 37 percent were complete and 54 percent had made significant progress.

• For policy commitments due after June 2015, 20 percent were complete and 72 percent made some progress.

Private Sector Letters of Intent Progress

3%12%

43%

37%

7%

Letters of Intent Im-plementation Progress

Complete (%) Performing well/ ahead of schedule (%)

On plan (%) Minor prob-lems (%)

Major prob-lems (%)

• Private companies participating in the Grow Africa partnership provided progress reports for 56% of the 292 Letters of Intent (LOIs).

• Through these LOIs, companies intend to invest close to $10.2 billion.

• Overall, the majority of LOIs (80 percent) were either on plan or facing minor implementation problems.

• Overall, 3% of LOIs were successfully completed in 2014; 12 % of LOIs were performing well, 43 % were on plan, while 37 % faced minor implementation problems. Only 7 percent of LOIs had major implementation challenges.

Key Challenges of the Private Sector –Constraints in the Enabling Environment (NA Country Review 2015)

Country Benin Burkina Faso

Cote d’Ivoire Ethiopia Ghana Malawi Mozambiqu

e Nigeria Senegal Tanzania Count

Access to finance

10Access to inputs 4Skilled workforce 4Policies and regulations

3Availability of inputs 3Access to land and water 3Infrastructure 2Bureaucratic procedures 2Locating partners 1Young business environment

1Training and development 1Access to power 1Environmental concerns 1Market accessibility 1Climate change 1

Key Recommendations from Country Stakeholders in 2015 Annual Review

Foster open dialogues and transparency in spirit of mutual accountability Mainstream the New Alliance Reporting process in Ministry of Agriculture Fast track solutions for resolving structural constraints affecting private sector

investment Improve clarity and effectiveness of regulations affecting land tenure Facilitate access to finance and credit supply Improve supply of skilled labor for the agricultural sector Reduce bureaucracy and fight corruption Minimize the uncertainty brought about by frequent changes in agricultural

sector policies and regulations Implement measures to enhance the competitiveness of selected value

chains Establish framework for monitoring private sector investment Build the capacities of civil society and farmer Organizations.

New Alliance Country Cooperation Frameworks - Tool for unlocking Private Investment in

Malabo Commitments

New Alliance and CAADP• CAADP and the recommitments in the Malabo Declaration present a

comprehensive framework to transform African agriculture.

• The New Alliance directly contributes to and catalyzes the implementation of CAADP’s overarching goals to end hunger and halve poverty in Africa by 2025.

• The New Alliance also supports the implementation of National Agriculture and Food Security Investment Plans (NAIPs) in countries performing well in CAADP and that have shown a commitment to address difficult policy constraints.

• New Alliance commitments are reviewed as part of the CAADP Agriculture Joint Sector Review process.

NA Alignment to the CAADP Results Framework

 

3.2 More effective and accountable institutions including measuring implementation of their policy and investment commitments

3.3 Strengthened capacity for evidence based planning, implementation & review processes

3.5 Increased

public and

private investme

nts in agricultur

e

3.1 More effective

and inclusive

policy design and implement

ation processes

Level 3 Strengthening Systemic capacity to deliver results

3.4 Improved

multi-sectoral

coordination,

partnerships and mutual

accountability in the

agric sector and related

sectors

Added value of CAADP support and

interventions to

institutional transformatio

n and CAADP

operational effectiveness is measured at this level

Level 1 – Agriculture’s Contribution to Economic Growth and Inclusive Development

 (Wealth creation, resilience, improved food and nutrition security)

Level 2 – Agricultural Transformation and Sustained Inclusive Growth  

2.1 Increased agriculture production

and productivity

2.2 Increased intra-African

regional trade and better functioning

of national & regional markets

2.3 Expanded local agro-industry and

value chain development

ensuring participation of

women and youth

2.4 Increased access to

productive safety nets and more

nutrition sensitive

agriculture investments

2.5 Improved management of

natural resources for sustainable

agriculture

Changes in African

agriculture resulting from the

implementation of

CAADP approach are measured at

this level

Impact to which

CAADP contributes

3.6 Increased capacity to

generate and use data, information and knowledge

The New Alliance is aligned with CAADP Results Framework (RF) at the country and continental level.

Contribute to progress against the Level 1 impact of wealth creation and improved food and nutrition security:

Contribute directly to the CAADP Level 2 objective of sustained inclusive agriculture growth, in particular by improving the enabling environment for investment in agriculture and leveraging increased private investment in agricultural value chains (2.3) and by increasing agricultural production and productivity (2.1).

At the country-level, the New Alliance contribute to the specific CAADP Level 3 objective of improving public-private partnerships in agriculture. (3.4 & 3.5)

The New Alliance accountability process aligns with CAADP RF implementation at country-level, by supporting and reporting into the Joint Sector Review.

The New Alliance Annual Progress Report will track progress against a number of indicators included in the CAADP Results Framework

The New Alliance Country Cooperation Frameworks

• The New Alliance CCFs basically aim to attract and mobilize national and international private investment to stimulate and support sustainable development of the agricultural sector.

• 10 African Countries have signed CCFs in support of CAADP implementation.

• Currently, the New Alliance Country Cooperation Framework countries include Ethiopia, Tanzania, Malawi, Mozambique, Benin , Burkina Faso, Cote d’Ivoire, Ghana, Nigeria and Senegal,

Strengths of NA Country Cooperation Frameworks

• Engaging the private sector in a targeted and efficient way, that has strategic value for them

• Ensuring policy efforts align to market needs, rather than operation in silos-promoting creation of more enabling environment

• Identifying issues and opportunities for policy change, and galvanizing partners around these

• Promoting learning and innovation on systemic challenges

• AUC/NPCA coordination and ownership• Mutual Accountability on implementation

(Governments, Development Partners, Private Sector held jointly accountable on progress)

Malabo Declaration Commitments1. Recommitment to the Principles and Values of the CAADP Process2. Recommitment to enhance investment finance in Agriculture 3. Commitment to Ending Hunger by 2025

4. Commitment to Halving Poverty , by 2025, through inclusive Agricultural Growth and Transformation

5. Commitment to Boosting Intra-African Trade in Agricultural Commodities & Services

6. Commitment to Enhancing Resilience of Livelihoods & Production Systems to Climate Variability and Other Shocks

7. Commitment to Mutual Accountability to Actions and Results

NA & Malabo Commitments• For the Malabo Declaration, the New Alliance Country

Cooperation Frameworks are particularly relevant to achieving the following targets: – Doubling productivity– Reducing post harvest loss by half– Sustaining 6% agricultural sector growth– Establishing and/or strengthen inclusive PPPs for at least 5 priority

agricultural commodity value chains in each country, with strong links to smallholder agriculture

– Create job opportunities for at least 30% of youth in agricultural value chains

– Tripling intra-Africa trade in agricultural commodities

Positioning the NA -CCF in the Malabo Context

• Scaling up to New Countries: The New Alliance Team is working on set of criteria on how other countries advancing in the CAADP process joint the New Alliance

• NA Governance and Coordination: The NA team at African Union is supporting Member States in terms of having clear NA Governance and Coordination Structure at country level.

• Experience Sharing on Best Practices: The African Union NA team is also promoting cross country experience sharing platforms to share best practices on NA governance and coordination.

• Revising the CCF: The demand has come from countries to review their CCF. Malawi and Ethiopia have taken steps to revise the original NA Country Cooperation Frameworks

Positioning NA-CCF in the Malabo Context-contd.

Cross Sector Collaboration • In many countries, a lead group is responsible for overseeing

implementation and monitoring of New Alliance commitments. • The lead group in each country may be part of a broader

coordination body, such as an agriculture sector working group, or a team established specifically to oversee implementation of the New Alliance.

• Because many policy commitments span numerous ministries and there is a need for regular dialogue among all stakeholder groups,

• The structures that appear most effective in tracking implementation are those that include inter-ministerial and multi-stakeholder representation.

Questions – using NA-CCF as a tool to unlock private sector investment in Malabo Implementation

• How do we use the New Alliance Country Cooperation Frameworks to advance public private partnerships needed for agricultural value chain identification and development ? (Malabo Commitment No. 3)

• How do we re-prioritize LOIs in terms of taking into account priority agricultural commodity value chains with strong linkage to smallholder agriculture; (Malabo Commitment No.3)

• How do countries fast track policy reforms in the New Alliance to accelerate private sector investment? (Malabo Commitment No.7)

• How do we hold the private sector accountable to the Letters of intent- as these are not binding contracts (Malabo Commitment No. 7)

• How do we see the relevance of Regional Cooperation Framework Agreements as a tool to promote intra-regional trade (Malabo Commitment No. 5)

• How do the New Alliance at AUC and Grow Africa hosted by NEPAD synergize in coordinating private sector investment consistent with Malabo Commitments?

• What should be the role of non-state actors in supporting the NA CCF ?

Thank You