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2013 in Review
2.2
Country Report
2013 IN REVIEW
PROGRESS
Cte dIvoire
Joining Grow Africa to fulfil growth ambitions in staple and export crops
Agriculture is the backbone of the Ivorian economy, employing 70% of the labour force, contributing 30% of GDP and 60% of export earnings, and producing more than 10.7 million tonnes of food per year. Overall, production is not intensive and yields are low. Exports are key to the countrys development, with the main export products being cocoa, coffee, cotton, cashew, oil palm, rubber, pineapple, mango, banana poyo, wood and tuna. While Cte dIvoire is the leading cocoa producer worldwide, its agriculture is diversified and based both on small and mediumsized family farms as well as large industrial operations, with significant potential to scale up production. Nevertheless, after ten years of civil strife and crisis, the sector faces multiple challenges. Approved in 2009, the national Strategy for Relaunching Development and Reducing Poverty 20092013 (DSRP) sets as one of its main objectives the creation of jobs and wealth through support to the rural sector and the promotion of the private sector as an engine of growth. The priority areas for achieving this goal have been identified as: (i) increasing agricultural productivity in connection with the modernisation of farming practices; (ii) the efficient organisation of value chains by strengthening the involvement of grassroots organisations and safeguarding the interests of smallholder farmers; and (iii) the promotion of food crop production by guaranteeing its financing conditions and improving access to markets. The National Plan for Agricultural Investment 20102015 (PNIA) stems from both the Master Plan for Agricultural Development 1992-2015 and the DSRP, and is structured around 6 main programmes: (i) improving the productivity and competitiveness of agricultural production; (ii) the development of value chains; (iii) improving the governance of the agricultural sector; (iv) capacity-building of stakeholders in the development of agriculture; (v) sustainable management of fisheries resources; and (vi) forest rehabilitation and recovery of the timber industry. It is expected that the implementation of the PNIA will lead to the creation of 2.4 million jobs and to an agricultural growth rate of 9%, which should in turn induce GDP growth of 6.8%. The overall cost of the PNIA is estimated at $4 billion. The main sources of funding are the Government of Cte dIvoire (GoCI) and development partners, with a particular focus on the private sector, to which 24 million ha of arable land will be made available for investments.
Major public and private investment pledges pave the way for agricultural renewal
Significant achievements and progress have been made over the past year, mainly with regards to the enabling environment, infrastructure and public-private partnerships (PPPs). Although much remains to be done, the government and its donor partners mobilised around $480 million in 2013 for the implementation of the PNIA, making it 37% funded. The PNIA Steering Committee has been set up. Officially launched last September, it is expected that this structure will further facilitate and accelerate the PNIAs implementation in an inclusive manner. An Agricultural Orientation Law is currently being developed. This law will be key in providing the legal framework to establish and implement policies and strategies for agricultural development in Cte dIvoire. Despite the existence of a law on land use and rights (the Rural Land Law), which was adopted in 1998, its provisions have barely been applied and a National Programme for Land Security has accordingly been set up to work on resolving these issues as a top priority. Major road and air infrastructure has been rehabilitated and developed to facilitate and provide access to production zones and markets, especially between the North and South of the country, with agribusiness activities in the North having been particularly affected by the decade-long crisis. Indeed, more than $44 million was spent between 2008 and 2013 on a number of reconstruction programmes. Support to PPPs and private-sector projects and investments has been a prime imperative for the GoCI, which has prioritised eleven specific value chains. The implementation of initiatives for seven of these commenced in 2013, including rice, cashew, oil palm, banana, coffee and cocoa. In the rice sector, for instance, Cte dIvoire produced 1 million tonnes in 2013, hence meeting 70% of national demand compared to only 38% in 2011. Cte dIvoire has demonstrated its commercial attractiveness through the New Alliance process by generating over half a billion dollars worth of planned investment targeting both crops for domestic consumption (such as rice) and export (including rice and cotton). Initial reporting suggests these investments are advancing well, generating jobs, and impacting upon significant numbers of smallholders. Some of the private-sector investments and PPP success stories to date include: investments of $35 million by Olam in a cashew processing unit in the Bouak region, which is the largest in Africa with an annual capacity of 30,000 tonnes. Olam has also built a cocoa bean processing plant worth $62 million in San Pedro, and over the next three years plans to invest more than $200 million in Cte dIvoire; together with the National Rural Development Support Agency (ANADER), Cargill supported 60,000 cocoa farmers from 100 cooperatives and invested $3.7 million between 2011 and 2013. The company also plans to distribute more than 600,000 highyielding cocoa plants; and a rice joint venture established as a PPP between the NOVEL Group, Syngenta Foundation AGCO and the District of Yamoussoukro, and implemented by YAANOVEL, is expected to generate 15,000 jobs for an investment of $215 million.
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2013 in Review
LETTERS OF INTENT
Strategy setting
In August 2012, a Detailed Investment Plan (PID) was adopted by the Cabinet to support the implementation of the PNIA. Under the National Development Programme 2012-2015 (PND), agriculture has been identified as a priority sector and a key driver of growth and employment. Specific value-chain strategies are currently being developed and in some cases amended.
$103 million of investments made in 2013 $55 million of capital expenditure. $48 million of operating expenditure.
4 of 21 companies provided data.
Investment pipeline OUTCOMES REPORTED FOR 2013 1287 jobs created: 236,000 smallholders reached:
Investment opportunities have been promoted through public-private events organised by and in Cte dIvoire. As a result, 10 development poles for rice were each attributed to a private-sector investor entrusted with responsibility for development along the entire value chain. For other value chains, several investors have expressed interest in investing.
70%
3 of 21 companies provided data, of which 67% was gender disaggregated.
30%
25%
47,732 with services 79,807 with sourcing 5,334 with production contracts 80,464 with training 75,750 unspecified
5 of 21 companies provided data, of which 40% was gender disaggregated.
75%
In June 2013, through the New Alliance for Food Security and Nutrition, Cote dIvoire attracted 21 Letters of Intent from companies that referenced over half billion dollars of planned investment. Major donor investments in agriculture have begun to flow. The French development agency (AFD) will provide $150 million in a first tranche of budgetary support for the sector. The World Bank is contributing
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2013 in Review
SPOTLIGHT
CONSTRAINTS
As Cte dIvoire is a new partner country, Grow Africa has not yet consulted companies on the key constraints they face in advancing their investments in Ivorian agriculture.
In our tradition, cocoa farming was only reserved for men. We fought for our right to some land and the Nestl Cocoa Plan supports us.
Agathe Vanier, President of COPAZ womens cooperative.
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2013 in Review
GDP Growth
20 15 10 5 0 -5 -10 -15 -20 1981 1983 1985 1987 1989
Ag GDP Growth
CAADP Target
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
CAADP TARGETS
20,805,000
29.4%
Child malnutrition:
% of children under 5 underweight (World Development Indicators, 2007)
23.8%
Poverty:
% living below $1.25/day (World Development Indicators, 2008) Rural population:
9,680,000
Public agriculture expenditure share in total public expenditure 1990 - 2010
Source: FAO-STAT 2014 - http://faostat.fao.org/
Cte dIvoire
12 10 8 6 4 2
CAADP Target
Top 10 Crops by Production (tonnes) 5,674,696 2,412,371 1,866,748 1,650,000 1,577,043 725,000 654,738 Yams Cassava Sugarcane Cocoa Plantains Rice Maize Cashew Nuts Palm Oil Rubber
Source: FAO-STAT 2014 http://faostat.fao.org/
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
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Goals
Contribute to enhancing the incomes and security of small-scale farmers through improvements to the productivity and yield cycle of various food and non-food crops by: 1. constructing two research sites (1 in Abidjan and the other in Yamoussoukro) to conduct agronomic research focusing on the production of highyielding plant varieties and disease-resistant crops (cocoa, coffee, roots and tubers, and cereals), with an investment of around 15 billion CFA Francs for the period 2009-2013 2. deploying a support project for smallholder farmers, including education and training on best practices and the distribution of high-yield plantlets of coffee and cocoa (12 million cocoa plantlets and 27 million coffee plantlets to be distributed by 2020), with an investment of at least $40 million for the period 2011-2020.
Goals
African Cashew Initiative (ACi)
Contribute to increasing competitiveness of cashew production and processing in Benin, Burkina Faso, Cte dIvoire, Ghana and Mozambique, by: 1. convening investments from corporate partners (around $21 million); 2. linking processing industry to farmer groups so processors can source up to 60% of raw cashew stock directly from farmers or their organisations; 3. utilising matching grant funding to assist privatesector projects to enhance farmer productivity; and 4. planning to invest around $50 million through Phase 1 (lasting into 2013) 50% from private companies, and potentially $20-$30 million from 2013 to 2015 including 60% from private players.
Contribute to improving access to nance for small and medium-sized agribusinesses by: 1. establishing a new non-bank agribusiness nance institution to operate in Nigeria, Cte dIvoire and Ghana, aiming for a portfolio of over 200 customers (the West Africa Agribusiness Development Corporation WAAD); and 2. building capacity of local agro-sector professionals to maximise benets of increased access to nance.
With respect to the WAAD project: Identication of and negotiation with potential shareholders continued throughout 2013. To this end, Rabo-Development and the IFC are in on-going talks with a number of multinational food and agriculture companies. Various policies (HR, credit, treasury) have been prepared in anticipation of operations commencing; Board charter also drafted. Business plan has been conrmed as still pertinent. Partnerships forged with donors, businesses and governments for advancement of agri-risk transfer markets. Concluded preparations for weather risk transfer scheme. At pan-African level, 300,000 smallholders reached. Reached over 45,500 smallholders through improved natural resource and general management practices, and around 750 smallholders with assistance to access loans. Cultivated 116,000 ha under improved pest, disease and fertility management techniques. Approved 5 Matching Grants in second phase of the CLP; plans exist to hire additional staff in 2014. Conducted impact evaluation and numerous eld visits. Received Walmart Foundation grant to train women farmers in good agriculture practice and business management. Piloted Digital Green technologies for cocoa extension, with plans to expand in 2014.
AGCO
Contribute to capacity building, knowledge transfer on the agronomic system, and the intensication of agriculture and farming mechanisation by: 1. establishing a demonstration farm and training centre, together with global and local partners, aimed at large- to small-scale farmers, agriculture students and local schoolchildren; 2. providing infrastructure and technical support with mechanisation, storage and livestock systems, including after-sales services for commercial smallholders, and emerging and large-scale farmers; and 3. offering nance solutions and developing leasing models for tractor supply to small-scale farmers with little working capital.
Swiss Re
Develop micro-insurance solutions to agricultural risks by investing in-kind to support development of sustainable agri-risk management markets, with a view to assisting farmers with production risk coverage, accessing nance and engaging in higher incomegenerating activities.
Roll out two new initiatives as part of WCFs $40 million Cocoa Livelihoods Programme (CLP) in Ghana and Cte dIvoire: 1. investing $3 million in a Matching Grants programme to promote private sector-led farmer training and service activities to double the productivity of 35,000 cocoa farmers from 400 kg/ha to 800 kg/ha; and 2. investing $800,000 in a Financial Growth Fund to increase farmers access to nancial services, providing them with the necessary working capital to purchase inputs.
Contribute to improving the livelihoods of smallholder cotton farmers by: 1. convening investment in the cotton value chain from corporate partners to train farmers in soil/water conservation, balanced crop rotation, and business principles; 2. expanding cotton demand by promoting the Cotton made in Africa brand; and 3. linking smallholders to larger markets by partnering with the Better Cotton Initiative.
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2013 in Review
2013 in Review
Grow Africa has not yet gathered progress reports regarding the following planned investments.
NOVEL Group
Goals
Association of Natural Rubber Trades in Cte dIvoire (APROMAC)
Contribute to improving rubber plantation productivity and beneting around 76,000 rubber planters and their families, as well as companies and employees engaged in rubber processing, by: 1. operating, in conjunction with the Interbranch Fund for Agricultural Research and Advice, a mechanism for nancing agricultural research and advisory services (providing around 2 billion CFA Francs for 2012-13 but set to be maintained for subsequent years); and 2. operating a Rubber Development Fund to nance an action plan covering creation of plantations, training and track maintenance (worth 5.2 billion CFA Francs in 2012 but to be renewed each year).
Create an integrated agro-industrial rice production, processing and marketing hub (through a partnership with AGCO and Syngenta Foundation that has instituted a joint venture with the District of Yamoussoukro called YAANOVEL), and, with a planned investment of 62.5 billion CFA Francs in the project, establish 10,000 ha for industrial plantation and 5,000 ha for individual growers, including: 1. the creation of a farm dedicated to the promotion of mechanisation, with a modern seed centre; 2. the rehabilitation and expansion of developed areas; 3. the establishment of a complete rice processing unit, with electricity cogeneration capability; and 4. the establishment of storage silos and warehouses.
Barry Callebaut
Contribute to increasing the productivity of cocoa smallholder growers, reaching 35,000 beneciaries through the Horizon Cacao project by investing 4 billion CFA Francs to establish a technical college to train instructors and provide advice and inputs. Contribute to improving the livelihoods of cocoa producers through the Processor Alliance for Cocoa Traceability and Sustainability (PACTS) project, with funding of 0.5 billion CFA Francs a year, by: 1. promoting the quality of Ivorian cocoa; 2. increasing productivity to over 1 tonne/ha; and 3. increasing the incomes of around 40,000 cocoa producers.
Socit Ivoirienne de Productions Animales (SIPRA) Socit Nationale dAlimentation (SONAL) SUD Industries
Contribute to improving food security through increased poultry production by: 1. investing 17 billion CFA Francs to double poultry production over the next 6 years; and 2. investing 3.5 billion CFA Francs to create an agricultural complex in southern Cte dIvoire to increase egg output by 70 million (and eventually 110 million), ultimately feeding almost 3 million consumers. Contribute to increasing sh storage capacity in the interior of the country (where sh stocks often run out) by investing 3 billion CFA Francs to purchase a 7,000-tonne capacity cold store.
Cemoi
Export Trading Corporation (ETG) General Alimentaire Africaine (GAA) Groupe CEVITAL Compagnie dInvestissement Craliers (Groupe CIC) Groupe Louis Dreyfus
Contribute to enhancing rice production, processing and marketing through a 25 billion CFA Franc rice development project implemented in partnership with CI Trading.
In partnership with the Yebe WOGNON farmers group, contribute to the development of the rice and livestock value chains in northern Cte dIvoire by: 1. investing 100 billion CFA Francs in rice production, processing and marketing, including creating and developing rice growing areas (with a focus on mechanisation of farm operations), providing support to 32,000 producers, and processing and marketing rice; and 2. investing 10 billion CFA Francs in livestock production specically providing support to livestock breeders, creating and operating a dairy farm for the production of milk, yoghurt and other dairy products, and establishing marketing and distribution channels for meat and dairy products.
Contribute to enhancing the rice production and processing value chain by investing 2 billion CFA Francs in a rice-growing programme involving the installation of husking units and support for 7,500 smallholder farmers
In partnership with the CICA company, develop an integrated project with rice producers that will support value chain development and promote the mechanisation of rice farms in the Bounkani region of north-east Cte dIvoire, through an investment of 100 billion CFA Francs. Develop an integrated rice project in partnership with local rice farmers in the south-western region of Haut-Sassandra, supporting production, promotion of mechanisation, processing and marketing through an investment of 20 billion CFA Francs.
Contribute to increasing food security and reducing poverty in the Poro (Korhogo), Tchologo (Ferkessdougou) and Bagou (Boundiali and Tingrela) regions, by investing 22.2 billion CFA Francs in: 1. establishing an integrated project in partnership with rice growers to include a pilot farm, improved means of production, and collection, processing and marketing of rice; 2. creating a PPP to rehabilitate irrigation infrastructure and building on existing processing units; and 3. building socio-economic infrastructures for the rural populations in the project area.
INTERCOTON
Contribute to improving cotton-based crop system productivity and beneting around 90,000 smallholder cotton growers, their families and cotton companies by maintaining a sustainable mechanism for nancing agricultural research and advisory services (providing around 1.2 million CFA Francs for 2012-13 but to be renewed from year to year). Contribute to increasing storage capacity for sh stocks by investing 1 billion CFA Francs to construct 3,000 tonnes of storage.
NERE
Investors are sought to establish operations at several livestock stations that have fallen out of use.
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Forward Look
Forward Look
FORWARD LOOK
PRIORITIES FOR PROGRESS
Partnership and investment key to strengthening value chains for priority crops
Further developing PPPs and facilitating private-sector investment have been identified by the GoCI as key to unlocking agricultural growth in the country. In order to foster these, the following focus areas and priorities have been ascertained for the year ahead: Developing comprehensive studies on competitiveness and statistics and data per industry sector and per cluster. Setting up a system to fast-track the development of SMEs, while identifying the needs and type of support required. Further strengthening infrasructure to enable access to markets across the country, and in particular so as to reconnect the Northern and Southern regions. Promoting further investment in irrigation schemes and infrastructure.
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