Building Success Together

How IFAD is Responding to the Opportunities and Challenges in West and

Central Africa

WCA Regional Implementation RetreatDakar, Senegal

8 to 11 November, 2010

WCA – A diverse region

• 24 countries• Populations ranging from under 200,000 to

more than 135 million• Rainfall from less than 10 cm per year in

the Sahara to more than 200 cm per year in the Congo rainforest

• Agriculture varies from 10% to 50% of economy, but in almost all countries remains main source of employment

Growing Opportunities for Agriculture in WCA and Globally

• Overall economic growth is increasing to Asian levels – 5 to 10% per year in many countries

• Improving political stability and reduced conflict is building confidence for the longer term

• Almost half of workforce composed of young, better educated women and men

• Rapid growth of urban markets – two largest African cities are in WCA – Kinshasa and Lagos - with 8 to 9 million population

• The proportion of food marketed is expected to increase by at least 50 percent by 2030

• Governments want to increase food sovereignty by producing locally -particularly rice and other staples

• World prices for export and biofuel crops are good and expected to remain strong

Agriculture production is responding in all WCA countries

Increasing support for agriculture in WCA under CAADP

• Donor and private sector financing for agriculture is increasing

• Regional economic communities encouraging trade and policy integration

• Governments are increasing own budget spending to meet Maputo commitments

02468

101214

Challenges remain for WCA

• Competitiveness constrained by poor quality and high costs of transport (roads), electricity and water

• ¾ of potential irrigated area in Africa is in WCA, but only 5% is now under irrigation

• Less than 5% of the total population save or borrow from formal financial institutions (including registered MFIs)

• Many countries improving investment climate but bureaucracy and other unofficial costs remain high

IFAD Vision of Future of Rural WCA

• Strong role of agriculture in supporting accelerated growth at or above AU/NEPAD target of 6% per year characterized by:– Significant increases in investment in African

agriculture supply chains – domestic and foreign – particularly for rice and cassava (food and biofuel)

– Rapid increases in agricultural production based on extensive (large land deals) and intensive (irrigation and technology transfer to smallholders) development

– Increased business activity and employment in rural areas in ag and non-ag micro and small enterprises

An evolving role for IFAD in WCAMoving from (but not away from)

strengthening collective action in poor rural areas through CDD

to…helping smallholders and rural poor to sustainably

escape poverty by becoming competitive providers of goods and services in supply chains

while…ensuring stability and sustainability of production

systems in context of climate change – particularly in Sahara-Sahel zone

This is reflected in what we do

• Strengthening farmer organizations, financial services, seeds and fertilizer access, and infrastructure to support value chains – for staple crops for local markets and and cash crops for export and biofuels

• Continuing to support community-based organizations to ensure voice and participation of poor and vulnerable in economic opportunities

• Innovating and scaling up NRM and climate adaptation through re-greening, better livestock management, micro-irrigation, local renewable energy

Who we work with

• Strengthen role of farmer organizations and links with NGOs to ensure the poor are able to access production services and markets on fair terms

• Continue to build capacities of ministries of agriculture to set policies, provide public services and monitor sector performance

• Increase partnerships with private sector to ensure availability of high quality financial services, inputs and market outlets

And how we work

• Decentralizing to better serve projects and support sector policies (CAADP investment plans)– 4 subregional hubs with CPMs and CPOs – Dakar,

Yaounde, Accra, Brazzaville– In addition, 6 country offices with CPOs – Nigeria,

Burkina Faso, Mali, Guinea, Sierra Leone, Togo– Regional services – WCA Regional Gender Specialist

in Dakar and financial assistants in all four hubs• Strengthened regional team to support CPMTs

with COSOPs, lending, supervision and implementation support and grants

Immediate challenges for us all

• Rapid mobilization of financing and co-financing

• Increasing disbursements but ensuring that we:– Disburse with integrity (proct and fin. Mgmt)– Disburse with quality (technical partners and

participation)– Disburse with results (M&E)

Some projects which are achieving this

• Ghana – REP, RTIMP and NRGP• Senegal – REP, PSAOP2 and PRODAM• Mali – PIDRN• Cote d’Ivoire – PPMS• Nigeria – CBARDP• Sierra Leone – RFCIP and RCPRP

• We believe all projects can stand-out as top performers by next year

Some Key Challenges Going Forward…

• Assessing markets – better quality identification of opportunities and constraints using value chain and other tools

• Balancing market opportunities with support to the poorest

• Public-Private Partnerships – expanding role of private sector in projects (financing, inputs, technical support) while ensuring benefits for IFAD target group

• Building the future of agriculture – farming as an attractive business for young people

Our Vision of IFAD in WCA in 2020

• IFAD staff based in every country in WCA with decentralized regional support in hubs

• Broader range of financing options to work with both public and private sector

• Key agency linking farmer organizations and governments with local and international investors

• Preferred partner for those who care about smallholder- gender-, youth- and environmental friendly approaches to agricultural development

Thank you