session 2 omer zafar
TRANSCRIPT
IFAD’s Investments for Food Security in the Arab World
Omer Zafar
Near East, North Africa and Europe Division
International Fund for Agricultural Development
Food Secure Arab World – A Roadmap for Policy & Research
Beirut, 6-7 February 2012
Cereals demand and supply in Arab Countries
Cereal demand and supply in Arab countries (2000 – 2030)
IFAD’s investments to improve food security
managing natural resources
increasing agriculture productivity
promoting rural finance
upgrading value chains
creating economic opportunities
public-private partnerships
Improved Water Management
Water Infrastructure
Appropriate Technologies
Local Institutions
(WUAs)
Natural resource management - water
Water scarcity
75% decline in per capita renewable water resources since 1950
projected further 40% decline in water resources by 2050
IFAD’s investments
Natural resource management - water
IFAD investments include:
soil and water conservation
rainwater harvesting
alternative water resources
distribution systems
on-farm water use efficiency
livestock water points
total area reclaimed is more than 700,000 hectares, or 12% of total cultivable area
IFAD investments contributed to de-rocking 180,000 hectares
directly benefitting 70,000 households, doubling arable land in targeted areas
Syria: investing in land reclamation through de-rocking
Natural resource management - land
Institutional Support
Resource Management
Resource Conservation
deferred grazing
shrub plantation
reseeding
veterinary services
genetics improved
water availability
linking pastoralists’ institutions with
services and markets
Natural resource management - rangelands
IFAD investments include:
Status: rangelands are at risk of degradation, with economic losses
Status
cereals yields are 50% of world average
cereals productivity growth is declining
horticulture productivity growth is relatively good
Increasing agricultural productivity
Increased Agricultural Productivity
Agricultural Technologies
Extension Services
Delivery Systems
IFAD investments include:
R&D partnerships
improved varieties
improved management practices
demonstration plots & field schools
increased private sector role
Increasing agricultural productivity
Promoting rural finance
support access to a variety of financial services
promote a range of financial institutions and modalities
support demand-driven and innovative approaches
encourage market-based approaches
focus on sustainability and poverty outreach
promote an enabling environment for rural finance
Promoting rural finance:
Sanadiq in Syria, Sudan, Somalia, Yemen
Achievements
76 sanadiq created, with 13,500 members (45% women)
22,000 loans disbursed, amounting to USD 17 million
loans are short-term with maximum one year duration
investments in agriculture, livestock, off-farm micro-businesses
Way Forward
legalisation of sanduq as financial institution
creation of Apex institution for financial and other services
linkages for refinancing from financial institutions
innovative forms of capitalisation
Promoting rural finance:
Sanadiq in Syria
Promoting rural finance:
Refinancing
loan forward
repayment contract
Smallholders
(producers'
associations)
Agribusiness
(enterprises)
MarketsIFADMinistry of
Finance
Refinancing
Facility
loan
repayment
loan
repayment
Financial
Institutions
Promoting rural finance:
Refinancing
Refinancing helps financial institutions to:
increase rural outreach and attract new clients
adapt financial products to rural demand
invest own funds and leverage additional funds
introduce innovative collateral requirements (e.g forward contracts)
Way Forward
diversify financial instruments (micro-leasing, equity financing)
technical assistance to mobilise deposits and savings (exit strategy)
Promoting rural finance:
Equity financing
temporary strategic investments in rural enterprises (often family-owned or cooperative) with market demand, growth potential and job creation;
combined with non-financial advisory services (managerial, technical, market access);
the foundation is the value chain approach (agriculture, fisheries, livestock, off-farm and non-farm sectors)
economic benefits for the rural poor through backwards linkages with producers, job creation for unemployed and under-employed, and rural economic multiplier effects
Creating economic opportunities - investments
Market driven investments to promote economic opportunities and create jobs
selected value chains with comparative advantage, market demand and growth potential (agriculture, livestock, fisheries, non-farm)
broad range of rural financial services (savings & credit groups, microfinance, debt finance, refinancing, equity financing)
market-derived infrastructure development linked to the selected value chains
producers’ associations and win-win contractual arrangements with processors, traders and markets
agribusiness development (SMEs linked to smallholders and/or creating job opportunities) and non-farm enterprises
Creating economic opportunities - services
Services for smallholders
smallholder producers’ associations
climate-smart, environmentally-friendly technologies
access to a range of financial services
access to technical and business services
GGAP training and certification
skills development and rural labour market intermediation
Services for enterprises
access to a range of financial services
access to managerial, business, technical services
HACCP / ISO compliance and certification
market promotion
Upgrading agricultural value chains:
operational experiences
Producers'
Association
(smallholders)
PA support
Technology
Financial
Business
Services:
Financial
Business
Marketing
HACCP / ISO
Services:
GGAP
contract
forward Agribusiness
(enterprises)
Market
(domestic; export)
Market
promotion
Market-derived Infrastructure
IFAD’s active portfolio in the Arab region
IFAD’s active portfolio in the region covers 10 borrowing/recipient countries and amounts to USD 930 million
of this, USD 450 million is financed by IFAD and USD 480 million by cofinanciers (domestic & external)
this portfolio is now directly reaching some 2.9 million poor rural people across about 3,100 communities
as such, the active portfolio is reaching 2.4% of the rural population or 6.5% of the rural poor in borrowing/recipient countries
in 2011, the average investment cost (loan/grant) per beneficiary amounted to about USD 52
380,000 ha of land under improved management practices
250,000 ha of land under irrigation scheme constructed or rehabilitated
220 livestock water points constructed or rehabilitated
3,200 drinking water systems constructed or rehabilitated
IFAD’s active portfolio in the Arab region:
some results
270,200 poor rural people in strengthened community organisations
32,000 poor rural people in savings and credit groups
23,500 poor rural people trained in income generating activities
20,500 poor rural people trained in post-production, processing and marketing
IFAD’s active portfolio in the Arab region:
some results
1,500 km of roads constructed or rehabilitated
IFAD’s active portfolio in the Arab region:
some results
1,400 savings and credit groups formed and/or strengthened
460 savings and credit groups with women in leadership positions
IFAD’s active portfolio in the Arab region:
some results
Cofinancing Islamic Development Bank OPEC Fund for International Development World Bank Arab Fund for Economic and Social Development Global Environmental Facility borrowing/recipient Governments private sector such as commercial banks and investors beneficiaries
Knowledge UN Economic and Social Commission for Western Asia International Center for Agriculture Research in Dry Areas International Center for Biosaline Agriculture International Food Policy Research Institute Food and Agriculture Organisation National agriculture research institutes
IFAD’s active portfolio in the Arab region:
Partnerships (selected)
Thank you