Download paper on realizing a new vision for agriculture: an action agenda

PAPER ON REALIZING A NEW VISION FOR
AGRICULTURE:
AN ACTION AGENDA
PAPER PRESENTED AT WORLD ECONOMIC FORUM
IN DAVOS
JANUARY 2012
THE UNITED REPUBLIC OF TANZANIA
OUTLINE
• Action Agenda
– Background
– Progress of SAGCOT Implementation
– Tanzania Agriculture and Food Security
Investment Plan/CAADP
• Agriculture as a Driver of Green Growth
– Background
– Kick off of the Green Growth Strategy
PAPER ON REALIZING A NEW VISION FOR AGRICULTURE:
AN ACTION AGENDA
1.0
Background
•The agricultural sector is a key driver of social and
economic development in Tanzania
•It generates 24.1 per cent of GDP, 24 percent of
exports and employs 77.5 per cent of the population
•The sector contributes about 95 percent of national
food requirements
Background Cont’d
• The sector has persistently registered a lower average
annual growth rate of 4% (for the last decade)
• This growth rate is inadequate to trigger substantial
sector growth as well as the total country’s economy
• The recommended annual sector growth rate of 6-10%
will subsequently have potential impact into the macroeconomy, improved standard of living and reduction of
poverty of the people in the country
• The low performance of the sector has been attributed
by a number of factors that include but not limited to
inadequate investment from both public and private
sector which calls for an urgent need to scale up
investment in agricultural sector.
Background cont’d
• Tanzania Govt initiated the Agriculture Sector
Development Program (ASDP) in 2006, which is a
Sector Wide Approach for accelerating agricultural
Development
• The private sector through TNBC came up with the
KILIMO KWANZA resolve to ensure private sector takes
lead in green revolution in Tanzania
• In efforts to engage private sector in agriculture through
the KILIMO KWANZA initiative, the Government used
the WEF held in May 2010 to argue private sector
players to invest in agriculture.
• During the WEF, stakeholders initiated Southern
Agricultural Growth Corridor (SAGCOT) to spearhead
public and private sector initiatives to promote
investment along an agricultural growth corridor model to
boost agricultural productivity in Tanzania.
Background cont’d
• SAGCOT’s objective is to foster inclusive, commercially
successful agribusinesses that will benefit the region’s
small-scale farmers and in so doing, improve food
security, reduce rural poverty and ensure environmental
sustainability
• The SAGCOT is implemented under PPP model
• SAGCOT is supported by a group of private sector
agribusinesses, both local and international, in
partnership with the Government of the United Republic
of Tanzania and donor organizations The SAGCOT
Investment Blueprint was launched internationally at the
2010 World Economic Forum in Davos, in January 2011
• The Investment Blueprint showcases investment
opportunities in the Corridor and lays out a framework of
institutions and activities required to reap the
development potential.
2.0 Progress on SAGCOT
Implementation
• Establishment of the SAGCOT Centre
– The Centre will coordinate activities and investments that
support large-scale, emergent and small-scale farmers, and agribusiness in targeted high potential areas in the Corridor
• Establishment of Catalytic Fund
– The Catalytic fund has been established to provide a start up
finance for agriculture businesses incorporating smallholder
farmers. Finance will be provided as low –cost or interest free
loans, repayable as soon as the business attracts private finance
– So far the Fund has received the pledges from USAID (USD
12.5m), World Bank (USD 40m) and Tanzanian Government
(USD 1m)
Progress on SAGCOT
Implementation Cont’d
•
Review of Rufiji Basin Development
Authority (RUBADA) Act to accommodate
SAGCOT
–
RUBADA act is currently under review to expand its
mandate so that it can adequately facilitate
implementation of SAGCOT. SAGCOT has agreed
on farmer census with the local district authorities to
initiate farmer consensus in the main clusters to
assess the different farm structures
Progress on SAGCOT
Implementation Cont’d
•
Preparation of communication strategy
–
–
SAGCOT has developed comprehensive
communication strategy to further the SAGCOT
culture within the partnership, to ensure aligned
communication across the partnership, successful
engagement of all relevant stakeholders and
proactive management of potential issues
The Strategy comprises common messages,
approaches to building trust and collaboration,
engagement plans for external stakeholders groups,
media strategy, recommended communication tools
and materials and measures of success.
Progress on SAGCOT
Implementation Cont’d
•
The launching of SAGCOT Partnership Forum
–
–
The Partnership will facilitate a new development process in
the Corridor that will be commercially successful, while also
improving productivity, reducing rural poverty and ensuring
environmental sustainability
Through SAGCOT Partnership Forum, a number of
interventions are being implemented under Feed the Future
programme as follows: Tanzania Rice Partnership (Morogoro),
investment in rural infrastructure (rural roads & irrigation
schemes), agriculture based reaserch,etc
2.6 Actionable Agenda
•
Commodity Investment Plan (CIP)
–
1.
2.
3.
The focus of CIP will on soya bean, sugarcane and rice through:
improved rural infrastructure-mainly roads;
Expansion of smallholder block farming;
increased access to supplementary irrigation and irrigation schemes
for smallholder;
4. increased use of agricultural inputs such as high yielding seed
varieties, fertilizers;
5. improved short and medium term finance for smallholder; and
6. land titling and land use plan.
•
Investment generation program
–
–
–
This is an outreach plan that is aiming at attracting both local and
international investors in the corridor clusters
The wave of activities on this initiative will be focusing on the four
priority sectors namely: cereals; oilseeds; sugar and livestock
production
The other sectors will be power generation, transportation and
logistics.
Actionable Agenda Cont’d
• Mobile Partnership Strategy
– Mobile phone system will be promoted to foster
growth in modern commercial agriculture in the
corridor at the same time generating opportunities for
both rural development and poverty reduction
• Identification and Resolution of Priority
Policy Constraints
– Policy analysis and a series of targeted advocacy
programs will be conducted to assess key risks and to
establish an objective, informed and quantitative
background to key tax and policy issues relating to
the main commodities within the corridor, specifically
in the priority clusters
3.0 Tanzania Agriculture and
Food Security Investment Plan
/CAADP
• The completion of the Tanzania Agriculture and Food
Security Investment Plan (TAFSIP) and of the CAADP
process on 11 November, 2011 in Dar es Salaam,
reflects the Government of Tanzania’s commitment to
prioritizing agriculture
• TAFSIP is an historic initiative that brings all
stakeholders in the agricultural sector to a common
agenda of comprehensively transforming the sector to
achieve food and nutrition security, create wealth, and
poverty reduction
• TAFSIP is a ten-year investment plan which maps the
investments needed to achieve the CAADP target of six
per cent annual growth in agricultural sector GDP.
Tanzania Agriculture and Food Security
Investment Plan /CAADP Cont’d
•
The TAFSIP will build from existing national initiatives to further
mobilize and harmonize resources for the agriculture sector to
achieve the CAADP goal of six per cent annual agricultural growth
•
TAFSIP has identified 7 major investment programmes as follows:
1. Irrigation Development, Sustainable Water Resources and Land Use
Management
2. Production and rural Commercialisation
3. Rural Infrastructure, Market Access and Trade
4. Private Sector Development
5. Food and Nutrition Security
6. Disaster Management, Climate Change Adaptation and Mitigation
7. Policy Reform and Institutional Support
4.0 AGRICULTURE AS A
DRIVER OF GREEN GROWTH
•
Background
–
–
–
–
Agricultural development in Tanzania is strongly
dependent on environmental resources such as
land, forest, air, water and other resources
The sustainable utilization of these resources is vital
for the growth and sustainability of the sector
However, agriculture is vulnerable to the effects of
climate change
Climate change is also an attribute of unsustainable
farming methods and systems including
deforestation, land clearing and/or bush fires
AGRICULTURE AS A DRIVER OF GREEN
GROWTH CONT’D
• There is a scientific consensus that concentration of greenhouse
gases, human-driven emissions of carbon dioxide and land-use
changes are the processes primarily responsible for climate change
• Green Economy investment vision is integrated into the SAGCOT
initiative and the future of local landscapes and ecosystems
• Green Economy Investment visioning activity will include:
– Describing and spatially demarcating the status of important agricultural
and ecological programs and investment activities in the SAGCOT
region, illustrating risks and opportunities posed by climate change;
– Engaging regional leaders from the agriculture, rural development and
environment/climate change sectors in strategic planning for ‘greening’
the SAGCOT corridor and environs; and,
– Outlining an investment vision for ‘greening’ the SAGCOT corridor and
environs, including prospective pathways for realizing the vision.
AGRICULTURE AS A DRIVER OF GREEN
GROWTH CONT’D
•
The kick off the green growth strategy
–
–
Green Growth for the agriculture sector involves
increasing food security (i.e. food availability,
access, stability and utilization) and good nutrition
for all people, while conserving natural resources,
reducing vulnerability to climate change, and
limiting green house gas emissions
Sustainable utilization of resources such as land,
forest, air, water and other resources is vital for the
growth and sustainability of the sector
AGRICULTURE AS A DRIVER OF GREEN
GROWTH CONT’D
•
To implement the Green Growth Strategy
SAGCOT will:
–
–
Scale up component investments in which
environmental sensitivity, reduced emissions, social
benefits and climate change adaptation are core to
the investment model. This will include scaling up
soya bean production that has nutrition value and
improves soil fertility through nitrogen fixation
Realize synergies and reduce trade offs by
managing interactions among investments and land
uses in different parts of the landscape
AGRICULTURE AS A DRIVER OF GREEN
GROWTH CONT’D
•
To implement the Green Growth Strategy SAGCOT will
–
Align sectoral programs and priorities to save money, reduce conflict,
and establish critical masses of socially and environmentally
beneficial investment;
–
Use democratic governance processes to negotiate development
priorities and parameters, recognizing legitimate local, regional,
national and business interests;
–
Design public policies and programs that shift investment incentives
toward green growth such as adoption of conservation agriculture by
both small-and and large scale farmers to build soil organic matter,
sequester carbon, increase water use efficiency and improve drought
resistance for maize and other crops;
;
–
AGRICULTURE AS A DRIVER OF GREEN
GROWTH CONT’D
• To implement the Green Growth Strategy SAGCOT will
– Use funds from climate change adaptation and mitigation programs to
finance transitions to low-emssion energy systems such as sustainable
bioenergy, distributed solar and micro-hydro for rural communities and
agricultural businesses;
– Designing wildlife corridors in conjunction with development planning to
maintain biodiversity, support tourism revenues, and minimize humanwildlife conflict;
– Linking local land use planning with national and sub-national
development planning to ensure coherent allocation of land and water,
protect against land grabbing, and empower communities in negotiation
processes; and
– Fund new research trials and extension programs to support climatesmart agriculture to capture carbon in soils and vegetation, improve
yields and resilience to droughts and floods, and protect water quality
and biodiversity