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Donor support to youth agribusiness: Right assumptions?

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25 June 2019. Cairo, Egypt. Food Technology in Supporting Entrepreneurs of Food Manufacturing Sectors through the Lens of Egypt Vision 2030. Organised by the National Research Center (NRC) Cairo-Dokki

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Donor support to youth agribusiness: Right assumptions?

  1. 1. International Center for Agricultural Research in the Dry Areas icarda.org cgiar.org A CGIAR Research Center Donor support to youth agribusiness: the right assumptions? Tuesday 25th June 2019 Annual Food Technology Department workshop Department of Food Industry- National Research Centre
  2. 2. icarda.org 2 “Science, technology and innovation (STI) is critical for creating comparative advantages in Africa’s agro-industry subsectors” Unido, May 2011
  3. 3. icarda.org 3 “Africa’s farmers and agribusinesses could create a trillion-dollar food market by 2030 if they can expand their access to more capital, electricity, better technology and irrigated land to grow high-value nutritious foods” World Bank, March 2013
  4. 4. icarda.org 4 For the private sector to meaningfully contribute to inclusive growth, policy should be steered towards innovative institutional arrangements, including fostering appropriate partnerships among public, private and civil society organizations. AFDB April 2014
  5. 5. icarda.org 5 The linkages between the future of agriculture, the transformation of rural spaces and the need to provide youth with the conditions for a decent and meaningful life, raise many questions about the role that donors can play. Donor engagement with rural youth Global Donor Platform for Rural Development, May 2018, 72 pages
  6. 6. icarda.org 6 While the majority of food economy jobs are in agriculture, off-farm employment in food- related manufacturing and service activities is increasing as the food economy adapts to rapid population growth, urbanisation and rising incomes. Agriculture, Food and Jobs in West Africa OECD, April 2018. 32 pages
  7. 7. icarda.org 7 Food imports to Africa are not only driven by “foreign” exporters but can also be in the interest of domestic private and public parties who benefit from tariffs and licensing fees. It is often easier and more rewarding to rely on imports than reforming border-rules with African neighbours or supporting smallholder farmers and source food from domestic rural areas. It is for African policymakers to find the right balance between the interests of local producers, aiming at higher prices, and poorer urban population, aiming at lower prices.
  8. 8. icarda.org 8 Technology-related productivity gains in crucial sectors (i.e. financial services, education, health, retail, agriculture, and government) in Africa are predicted to reach between US$ 148bn and US$ 318bn by 2025.
  9. 9. icarda.org 9
  10. 10. icarda.org 10
  11. 11. icarda.org 11
  12. 12. icarda.org 12 Trade: Food import in 2016 (mio. tons)
  13. 13. icarda.org 13 Trade: Food import in 2016 (bio. USD) Africa's food import bill stands at $35 billion but is aggravated by food losses in the continent The continent's food import bill could go up to $110 billion by 2025
  14. 14. icarda.org 14 Dietary transition
  15. 15. icarda.org 15 Dietary transition The Lancet Global Health Volume 3, Issue 3, March 2015, Pages e132-e142
  16. 16. icarda.org 16 Dietary transition: the agricultural transformation General figures on agricultural transformation in developing countries considered by donors indicate that while perhaps 30% of the farmers may be able to join, take advantage and grow, up to 70% is bound to lose. As a result alternative development plans or social protection must be developed for the majority. Some go even as far as saying that development agencies should focus on the food and nutrition security of the 70%, and leave the 30% to others. Aligning Agricultural and Rural Development and Trade policies to improve sustainable development impact ECDPM DISCUSSION PAPER No. 221, Feb.2018
  17. 17. icarda.org 17 Private sector: Farm ownership: % of National Landholdings held by Urban Households
  18. 18. icarda.org 18
  19. 19. icarda.org 19
  20. 20. icarda.org 20  SASME Project is building on the extensive experience of the EU in supporting the establishment of different credit lines over the past two decades. Its credit line will serve the same objectives and target groups as ADP is serving today.  The Agent Bank (CIB) contract was signed with MALR and CIB in July, 2016.  Six participating banks signed their respective contracts. They are; (1) National Bank of Egypt (NBE); (2) Bank of Alexandria (BOA); (3) Export Development Bank of Egypt (EBE); (4) The Principle Bank for Development and Agricultural Credit (PBDAC). The Commercial International Bank (CIB) is acting as a participating bank in addition to its function as Agent Bank. Support to Agricultural SME (SASME)
  21. 21. icarda.org 21 Geographic Distribution of Disbursed Loans
  22. 22. icarda.org 22 Disbursed Loans Classified by Sector