Dialogue of the Executive Secretaries

of the Regional Commissions with the

Second Committee

Moving From Short-term Measures: A

regional alternative to Addressing

Africa’s Structural Food Crisis

New York, 17 October 2008

Abdoulie JannehUnder-Secretary-General, and Executive Secretary

Economic Commission for Africa

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The current world food crisis is driven by a myriad of interlinked factors. Many African countries are among the hardest hit and face a pressing need for emergency assistance and long-term support for the development of their agriculture.This obviously a serious new challenge for a continent that is just recovering from the poor economic performance of the last two decades as many of the countries were implementing structural adjustment programmes.This crisis also offer many opportunities for African agriculture as more attention, both from national government and the international community, is now given to the support of agricultural development

Africa’s Food Crisis

in the context of global food

crisis

Presentation is organized as follows:

Introduction – Africa’s Food crisis in the context of global food crisis-Linkages, opportunities and challenges

Impact of the Food Crisis on Poverty and food Insecurity in Africa

Domestic and International drivers of Africa’s Food Crisis

Framework for Coordinated Policy Response to Food Crisis in Africa

ECA’s Contribution: A Regional approach

Concluding Remarks

Structure of Presentatio

n

Before the crisis it was estimated that 40 per cent of the African population was undernourished, which represent about 240 million people;

Recent studies have revealed that the number of malnourished people around the world will increase by 44 million as the result of food crisis;

Africa will continue to host the largest number of these undernourished people;

It can be expected that 25 to 30 million more African will join the group of hunger people due to the decline of their purchasing power; and

The poor will become poorer.

Impact of Food crisis on Poverty and Food Insecurity in Africa

The poor are the hardest hit, thus put at risk progress on perverty and reduction, social cohesion, and the broader development agenda;

Recurrent social unrest and food riots;

More “panic-buying” to secure domestic stocks by large importers countries;

Adoption of export restriction measures by exporting countries to protect supply of domestic market, with negative impact on neighboring countries.

Deterioration of balance of payments due to higher food import bills.

Socio economic

and Political

impacts of the Food Crisis in Africa

Undercapitalization and Poor African agricultural Performance

Due to past inconsistency in degree and direction of priority African agriculture is today severely undercapitalize;

only 65 of arable land is irrigated compared to 40% in Asia;

Fertilizer use in SSA is 8kg/ha, representing 9% of the world average of 93kg/ha;

African institution of agricultural education, research, and extension are poorly staffed, ill equipped and underfunded.

Domestic and

International Drivers of

Africa’s Food crisis

Poor Performance of African Agriculture

Due to undercalitalization there has been a stagnating or declining agricultural productivity;

At about 1.0 ton/ha, average agricultural yields in Africa represent only 25 to 30 % of the comparable regions.

Africa’s agriculture labor productivity represents 60% of Asia or Latin America.

The continent’s share of global agricultural export has fallen sharply .

Domestic and International

Factors driving Africa’s food

Crisis 2

Poor Natural Resources Development and management

Untapped or poorly managed abundant natural resources;

Severe land degradation over the 3 decades; 500 million hectares are severely or moderately degraded

An average deforestation rate of 0.85 per year, the highest in the world;

Only 3.8% of the region water resources are withdrawn;

Domestic and International

Factors driving

Africa’s food Crisis 3

Demand dynamics led by population growth and urbanization

Agricultural production in SSA has failed to keep pace with the population growth rate

There is a rapid urban population growth estimated a 5% per years

Improved income has led not only to increase food demand but also to changes in consumers’ preferences in urban areas.

Policies of Africa’s Agricultural trading Partners

Production and export subsidies;

Tariff and non-tariff barriers;

Dumping of food stuff.

Domestic and International

Factors driving

Africa’s food Crisis 4

Energy crisis

oThese changes have resulted in the reduced supply of crops for food;

oWorld grain stocks have reached their record lows;

oHigh oil prize has trigger a policy focus on biofuel including subsidy for the production;

oFreight cost and fertilizers prices have more than doubled due to fuel prices increase;

Climate Change

oAfrican agriculture is mostly rain fed and lower precipitations have resulted in lower productivity;

oClimate change is a threat to food security and overall development in Africa.

Domestic and International

Factors driving

Africa’s food Crisis 4

UNSG’s Global initiative has led to the preparation of the Comprehensive Framework for Action (CFA)

AU/NEPAD workshop was organized to build consensus on a coordinated African response to the food crisis within the CAADP framework.

During the high level FAO Conference on World food security, the international community pledged to provide more finance to the development of African agriculture.

Framework for Coordinated

policy Response to Food Crisis in

Africa

Linking Short, and medium/long-term policy responses for Africa Region

The food crisis is not a new phenomenon in Africa region; There is a serious structural problem of the African agriculture sector;

Short term emergency measure are necessary to mitigate the impact of the food crisis; At the same time

Medium and long-term programmes to trigger the structural transformation of african agriculture.

Framework for

Coordinated policy

Response to Food Crisis in

Africa

Framework for Coordinated

policy Response to Food Crisis in

Africa

Addressing NEPAD/CAADP implementation challenges at regional level

Owing to the extreme fragmentation of African Agricultural market, promoting agricultural transformation within the CAADP framework requires an effective public private partnership to capture economies of complementarities between African ecological zones, and economies of scale based on comparative and competitive advantage beyond national boundaries

The ECA contribution will focus on the development of strategic agricultural commodity value chain with a regional perspective;

Assisting African countries to establish center of excellence for agricultural research for the strategic commodity;

Design programmes to link small farmers to market through innovative contractual arrangements;

Promote the emergence of regional agribusiness joint venture and international cooperation, especially south-south cooperation in developing streategic commodity value chains.

ECA’s Contribution:

A regional approach

To agricultural transformation

in Africa

Concluding Remarks

The heavy reliance of the region on food imports need to be reduce to make the continent less vulnerable to external chocks;

There is a need to achieve the African Green Revolution through the structural transformation of agriculture;

More financial support is therefore needed to promote the development of African agriculture while at the same time putting in place social safety nets.

Concluding Remarks 2

The efforts must be consistent with the objectives and goals of sustainable development for long-term solution to the problem;

Development cooperation is important for success;

African leadership and ownership of the efforts is essential and critical for success.

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