Download Principles for Responsible Agricultural Investment that Respects

PILOT USE OF RESPONSIBLE
AGRICULTURAL INVESTMENT PRINCIPLES:
A STATUS UPDATE
Presentation by Will Speller
21 March 2017
Land and Poverty Conference,
Washington D.C.
1
PREVIOUS UNCTAD AND WORLD BANK FIELD RESEARCH
• 39 mature agribusinesses
• Approaches to economic,
social and environmental
sustainability.
• Community perceptions and
impacts.
• 360 interviews, involving 900
stakeholders.
2
MOTIVATION FOR PHASE 2 OF FIELD WORK
• Many investors are struggling, financially and/or operationally...
• …for reasons that could have been foreseen by better planning,
screening and investor selection.
• Enormous range of developmental, social and environmental
outcomes of investments.
• Most “mistakes” are made in the very early stages of
investments, and are hard to subsequently rectify.
• Investors, governments and communities want more detailed
practical guidance on the how to implement principles of
responsible agricultural investment.
3
PILOT USE OF PRINCIPLES GUIDING
NEW INVESTMENTS IN AGRICULTURE
• Field work at 8 early stage agricultural investors in Africa.
• Objectives:
• to infuse responsible investment principles into operations from the outset.
• to learn and establish good practices in implementing responsible
business practices in agriculture.
• to develop tested instruments, methods, documents, processes and
procedures which can be used in the early phases of future investments.
• inform the work of development agencies, government bodies, investor
groups, NGOs and other institutions that promote responsible investment
in agriculture.
4
SAMPLE
Figure 1.1 : Location of Investments
Figure 1.2 Nationality of the
main Investor
2.5
Senegal, 1
Uganda, 1
Ghana , 2
Tanzania, 1
2
Malawi, 1
1.5
Mozambique,
2
1
0.5
0
Dubai
UK
Japan
Domestic
Belgium
Germany
Figure 1.4: Years in Operation
Figure 1.3: Size of Land Allocation (Hectares)
7 to
8
10,001-50,000
5 to
6
1001-10,000
3 to
4
101-1,000
1 to
2
<100
0
0
1
2
Figure 1.5: Principal Product
Rice
3
1
2
3
4
4
Figure 1.6 : Share of Investments that employs
outgrowers scheme
NO
13%
Maize
Jatropha
Fruits
YES
87%
Palm oil
Eucalyptus
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METHODOLOGY
Investor
selection and
desk basedresearch
Countryinception
workshop
Field visit
Agreement
of Action
Plan
Monitoring
and follow
up
Dissemination
of findings
(late 2017)
In partnership
with FAO and
IFAD
6
KEY OUTPUT: SERIES OF “KNOWLEDGE NOTES”
• Purpose: to provide digestible, easy to use information, tools
and guidance to governments, investors, communities and
civil society for use in their pursuit of sustainable and
responsible development in agriculture.
• Contents:
• Practical “how to” examples and implementable tools
gleaned from UNCTAD-World Bank field work.
• Cross-reference is existing tools and guidance
documents.
• List of relevant responsible investment principles.
• 4-6 pages maximum!
• Peer review and testing at further country workshops.
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KEY OUTPUT: SERIES OF “KNOWLEDGE NOTES”
• Issues covered are in development, depending on field
work and where a meaningful contribution can be made.
Master Class:
Friday 9am
• An indicative list of likely topics:
MC-700
• Screening Prospective Investors
• Alternative Business Models
• Economic Linkages
• Designing Mutually Beneficial Outgrower Schemes
• Water Rights and Use
• Women’s Empowerment
• Community Engagement Strategies
• Participation of Marginalised Groups
• Training and Integrating Local Staff
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SAMPLE CONTENTS FROM KNOWLEDGE NOTES
•
-
Screening Prospective Investors
Key aspects to cover in screening procedure.
Schematic diagram of screening procedure.
Quick fire desktop screening procedure.
External advice to build screening capacity
•
-
Economic linkages
Evidence on types of links – positive and negative – created.
Using the investment contract to maximise positive links.
How to screen investors for linkage potential.
How to nurture local entrepreneurship.
•
-
Training and Integrating Local Staff
Examples of successful training programs.
Partnerships with Universities or training institutions.
Overcoming administrative barriers to local employment.
Embedding commitments in the contract.
Master Class:
Friday 9am
MC-700
9
NEXT STEPS
• Ongoing monitoring and follow up visits with 8 investors.
• Peer review and testing of Knowledge Notes, including
country workshops with FAO and IFAD.
• Publication of Knowledge Notes and Overarching Report on
the program, later in 2017.
10
THANK YOU!