The Maputo DeclarationImplementation in East Africa

PAP / EALA Seminar: 26-27 AprilRwanda

Background & Motivation... Africa’s common policy framework for agriculture-led socio-

economic growth ...

(accelerate agricultural growth, improve food security and strengthen environmental resilience); endorsed in 2003

6% Annual AgricultureProductivity growth rate

(by 2015)

10% Public Expenditureallocation to Agriculture

(by 2008)

Why CAADP?Level and quality of productivity should be able to position agriculture as an engine for GROWTH

Policy environment to provide desired incentives for both state and non-state players (Security, investments, Governance, etc…)

Institutional arrangements and capacity for effective and efficient implementation

CAADP implementation in EAC Country Dates when

Compacts signed IP Ready Technical review for the IP Business Meeting held

24-25 August 2009 Yes Yes (22-31 Aug 2011) Yes (14-15 March 2012)

Burundi

23-24 July 2010 Yes Yes (6-14 Sept 2010) Yes (27th Sept 2010)

Kenya

30-31 March 2007 Yes Yes (4-8 Dec 2009) Yes (8-9 Dec 2009)

Rwanda

30-31- March 2010 Yes Yes (2-10 Sept 2010) Yes (16-17 Sept 2010)

Uganda

6-8 July 2010 Yes Yes (20-31 May 2011) Yes (9-10 Nov 2011)

Tanzania

Africa-wide PAE, 1995-2010

Public agriculture expenditure (PAE) in Africa as a whole declined in 2003-09 (post CAADP) compared to 1995-2003 (pre-CAADP)Differences across different regions and countries

CA EA NA SA WAAfrica Region

0

2

4

6

8

10 1995-20032003-2009

Perc

ent

PAE in Central Africa, 2003-10

Increase in Burundi, Rep of Congo, and São Tomé and PrincipeDecline or stagnated in other countries, which also spend less than 5%

Buru

ndi

Cam

eroo

n

Cent

ral A

fr...

Chad

Cong

o, D

e...

Cong

o, R

ep.

Equa

toria

l...

Sao

Tom

e &

...

0

5

10

15 Central AfricaPe

rcen

t

PAE in East Africa , 2003-10

Many countries in East Africa spent 5-10% percent of total expenditure on agricultureSpending has increased over time in several countries (especially Ethiopia, Rwanda, Sudan)

Djib

outi

Ethi

opia

Keny

a

Mad

agas

car

Mau

ritius

Rwan

da

Seyc

helle

s

Sout

h Su

dan

Suda

n

Tanz

ania

Uga

nda0

510152025

East AfricaPe

rcen

t

PAE in North Africa , 2003-10

Spending has stagnated in Mauritania and is on a downward trend from the 10% target in the other countries

Alge

ria

Egyp

t

Mau

ritan

ia

Mor

occo

Tuni

sia0

5

10

15North Africa

Perc

ent

PAE in Southern Africa , 2003-10

Malawi is outstanding performer, with nearly three time the target in recent timesApart from Zambia, spending has stagnated or declined in the other countries

Ango

la

Bots

wan

a

Leso

tho

Mal

awi

Moz

ambi

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Nam

ibia

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h Af

rica

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iland

Zam

bia

Zim

babw

e05

1015202530 Southern

AfricaPe

rcen

t

PAE in West Africa , 2003-10

Region where many countries have achieved targetSpending has increased in many countriesBurkina Faso and Mali (and Niger in recent times) have consistently cut back on spending to the target level

Burk

ina

Faso

Cape

Ver

de

Cote

d'Iv

oire

Gam

bia

Gha

na

Gui

nea

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nea-

Bi...

Libe

ria

Mal

i

Nig

er

Nig

eria

Sene

gal

Sier

ra L

eone

Togo

05

10152025

West AfricaPe

rcen

t

Summary of progress & key questions (I)

Since 2003 when the declaration was made: Only 11 countries have surpassed the target in any year—Burkina Faso, Chad, Ethiopia, Ghana, Guinea, Malawi, Mali, Niger, Senegal, Zambia, and Zimbabweonly 7 have surpassed it in many years

Where expenditure has been increasing or is high:Especially among countries in east and west Africa, is it because they have observed positive returns or because they think the 10% is optimal?

Where the expenditure has been declining:Especially in Burkina Faso, Mali and Niger where the shares were higher than 10%, is it because they are not getting the expected returns?

Summary of progress & key questions (II)

For middle income countries with other sources of growth and development (esp. in North and Southern Africa), is it because returns to additional spending in agriculture is lower than in the other sectors?

Where expenditure has stagnated: Is it because they have reached equilibrium, where returns to additional spending in agriculture and non-agriculture are equal?

These questions reflect the issue of the composition of public agriculture expenditure (PAE):

Role of government: large variation over time reflects changing involvement of government in the sectorAccounting issue: PAE depends of how PAE is accounted for and reported in different countries

PAE data challenges and requirementsAnswering the questions posed earlier in a comprehensive manner is very challenging; virtually impossible with existing data for many countries

Some analysis on the efficiency and effectiveness of PAE exists in a handful of countries only

We are faced with PAE measurement problemsMost of data are at higher aggregate levelData systems reflect outlays associated with organizational structures of governments rather than objectives sought and functions performedSeveral PAE undertaken outside traditional ag MDAs

We need to do better for successful JSRs

% of NAIP budget by function

NRM and farm support and subsidies dominate planned expenditures, followed by irrigationResearch and extension are stated priorities with specific budget allocations in a few countries only

Beni

n, 2

010-

2015

Burk

ina

Faso

, 201

1-20

15

Buru

ndi,

2012

-201

7

Cote

d'Iv

oire

, 201

0-20

15

Ethi

opia

, 201

0-20

20

Gam

bia,

201

1-20

15

Gha

na, 2

011-

2015

Keny

a, 2

010-

2015

Libe

ria, 2

011-

2015

Mal

awi,

2011

-201

4

Mal

i, 20

11-2

015

Nig

er, 2

010-

2012

Nig

eria

, 201

1-20

14

Rwan

da, 2

009-

2012

Sene

gal,

2011

-201

5

Sier

ra L

eone

, 201

0-20

14

Tanz

ania

, 201

2-20

16

Togo

, 201

0-20

15

Uga

nda,

201

1-20

15

0

20406080

100

Farm Support and Subsidies

NRM

Irrigation

Extension

Research

Role of Parliamentarians in CAADP (I)Country level support

Oversight on CAADP effectiveness • National budget / oversight e.g. Public Expenditure Review

(PER) & overview of the Medium Term Expenditure Framework (MTEF) is one example

• NAIP oversightGeneral prioritisation of agriculture as a channel of employment amongst youth (value addition in agribusiness) & wealth creation

Role of Parliamentarians in CAADP (II)Regional level support

RECs regional CAADP compacts and Regional Investment Plans will be key instruments in championing a systematic and coherent thrust to achieve, expand and up-scale regional agriculture business, markets, commerce and trade.EAC Regional Compact & Investment Plan?

Conclusions & Implications (I)

Transparency, accountability (M&E /MAF)

Evidence-based planning & reforms in capacity/ systems

Inclusiveness & collective responsibility

Inter-Ministerial Collaboration

“New” form of partnerships

Integrated & Comprehensive Plans/Programme

Investment Plans

Policy Reforms Institutions

Domestic / International financing

Incentives for trade/markets

Comprehensive & integrated

Conclusions & Implications (II)The amount of PAE in Africa as a whole increased rapidly, but at a slower pace than the growth in total expenditures resulting in a decline in the share of PAE in total expenditures for Africa as a wholeSome governments’ reports on compliance with the Maputo Declaration has generated controversy on what to count as PAE• resulting in a debate that may be polarizing behavior around

the fundamental issue of the investments needed to achieve development results

• i.e. what types of investment, how much of each type of investment, where should they be invested, and when should they be invested

Prioritization of investments has to be based on analysis of the efficiency and effectiveness of different types of public spending. Therefore, disaggregation of public expenditure data by type, across space, and over time is critical.

END