GROW AFRICA INVESTMENTGROW AFRICA FORUM BRIEFING 2016 PAPER RICE MARKET FACTSHEETS - WEST AFRICA PARTNERING FOR ACTION SENEGAL FOREWORD

The Grow Africa Investment Forum 2016 took place at As I take up the reins as Executive Director, my a milestone moment for Grow Africa, as the immediate priority will be to review our strategy to partnership’s Secretariat transitioned from the World ensure we support the private sector and government Economic Forum to the NEPAD Agency headquarters in delivering on this opportunity. in South Africa, providing Grow Africa with a stronger regional presence on which to build on the The key to achieving this is better collaboration achievements to date. between public and private sectors on joint investment plans. Grow Africa has proven itself a unique model for forging the connections between the public and private-sectors Companies that took part in our annual reporting on needed to support the growth of the agriculture sector investment progress have voiced their frustration and unlock investment opportunities. with many aspects of the enabling environment, particularly policy. Ministries often struggle to find a Grow Africa partners, many of whom convened at the suitable model for engaging with the private sector as a Investment Forum, have collectively implemented collective body. over $2.3 billion in private-sector investments, benefiting over 10 million smallholder farmers The 250 African and global leaders who gathered and creating over 88,000 jobs. However, we are in Kigali, Rwanda, from 10 - 11 May 2016 for the still not achieving the scale of public and private Investment Forum addressed many of these challenges sector investment needed to accelerate agricultural through action focused discussions characterized transformation and increase agricultural GDP to achieve by high energy, interactivity and optimism and, the sector’s potential in job creation and improved importantly, tangible outcomes. rural incomes. Against a backdrop of decreasing global demand for many of the commodities on which African The calls to action emerging from this year’s economies have relied, the continent needs a strong Investment Forum constitute a significant body of work and growing agricultural sector to balance its income to be addressed in the coming months by Grow Africa portfolio, ensure food security and jobs, and provide and its partners, and provide direct input into the hope and opportunities for rural youth to protect Secretariat’s three year strategy. against radicalization. I would like to express my sincere thanks to all the Urbanization is a threat to rural communities as it participants for coming together to drive forward lures youth away from the countryside. However, it Africa’s agricultural transformation agenda through also creates a rapidly growing urban food market partnership. opportunity We must seize that opportunity, with productivity increases in staple food crops that allow farmers to feed their families and have excess to sell, and with investments in agroprocessing infrastructure William Asiko to enable African agribusinesses to capture a higher Executive Director, Grow Africa share of added value.

1 OVERVIEW

The two day Grow Africa Investment Forum focused on rice, potato and seed, followed by four best practice and affirming the leadership vision for African agriculture innovation sessions, seeking to generate greater levels of through country specific investment opportunities innovation to address shared challenges and bottlenecks and accelerating investment into specific value chains that hinder agricultural development and investment. where tangible opportunities have been identified and progressed. Leaders reaffirmed their commitment Country specific investment opportunities were to continuing development of the agriculture sector shared with investors through sessions dedicated to in an inclusive manner, and the central role of both presentations by ministerial delegations from Rwanda, public and private investment in achieving this. Four Ethiopia, Burkina Faso, Tanzania, Nigeria, Kenya and interactive value chain sessions were held on cassava, Senegal.

10 CALLS TO ACTION

Grow Africa Investment Forum participants defined the following specific action recommendations during their discussions:

1. Foster structured frameworks for regular 6. Attract investment in East African potato value public-private­ cooperation ​ in agriculture chain​ opportunities through a regional potato consortium co­led by the Alliance for a Green 2. Develop a regional model for lease financing Revolution in Africa (AGRA) and Grow Africa; to enable mechanization; Planned action by Grow Africa Secretariat: formalize regional Planned action by Grow Africa Secretariat: develop a strong potato consortium and establish focused “clusters” of working concept and model to pilot. groups on key opportunities and issues.

3. Address bottlenecks in seed availability ​ 7. Deliver on the potential of youth ​in agriculture for bean and pulse varieties to meet growing through widespread, comprehensive capacity­ demand; building programmes addressing business and Planned action by Grow Africa Secretariat: identify entrepreneurship skills. governments and private­-sector partners willing to champion pilot approach to accelerated seed registration. 8. Address deficit of robust, credible data ​to enable data­ driven agricultural development. 4. Scale up production and processing of cassava​ through targeted financing and public-private­ 9. Prioritize nutrition​ through establishment of partnership; African leaders’ network for nutrition. Planned action by Grow Africa Secretariat: support launch of African Development Bank (AfDB) cassava fund by early 10. Introduce rigorous measurement and 2017; continue supporting national cassava platforms with evaluation ​of impact across groups in the Sustainable Trade Initiative (IDH). partnerships.

5. Strengthen the regional rice value chain ​ in West Africa, and investment therein, by creating strong, national rice platforms; Planned action by Grow Africa Secretariat: develop work­ plan and timeframe to support creation of national and regional platforms.

Agriculture is the key to the transformation of Africa.

“ ” - Uhuru Kenyatta President, Kenya

32 DRIVING THE LEADERSHIP AGENDA

Leaders from public and private sectors, including Demonstrating such leadership and prioritization of farmer organizations, came together in the opening agriculture, heads of state and government leaders and closing plenary discussions to exchange insights on were vocal in their commitment to leading the progress to date, future priorities and key agricultural transformation agenda. Prime Minister challenges. Hailemariam Dessalegn​ of Ethiopia emphasized: “There is a huge need for partnership, but the critical Strong, visionary leadership was called for to deliver issue is the country has to own it and the leadership against the priorities and opportunities discussed has to own it.” by participants. Agnes Kalibata​, President of the Alliance for a Green Revolution in Africa (AGRA), Leaders recognized the transformational potential of Gerardine Mukeshimana​, Rwanda’s Minister for the sector both at national and regional level, with Agriculture and Animal Resources, and Kanayo President Uhuru Kenyatta​ of Kenya referring to Nwanze, President​ of the International Fund for agriculture as “the key to the transformation of Africa”, Agricultural Development (IFAD), all emphasized the and Akinwumi Adesina, President of the African invaluable role of visionary leadership that gives priority Development Bank (AfDB), telling participants that to agriculture to ensure delivery against “Africa should become a global powerhouse in food commitments. and agriculture”.

Winnie Byanyima,​ Executive Director of Oxfam Beth Dunford​, Assistant to the Administrator, US International, also shared the experience of the Bureau for Food Security, described the regional successful partnership model employed in the leadership demonstrated in food security as “truly Roundtable on Sustainable Palm Oil. The opportunity to inspiring”. support and encourage further investment through effective policy was emphasized by Erastus Mwencha​, Deputy Chair of the African Union Commission. He noted that success in agricultural transformation has always been underpinned by the introduction and implementation of robust policies in key areas, such as value addition.

There is huge need for partnership, but the critical issue is the country has to own it and the leadership has to own it. “ - Hailemariam Dessalegn” Prime Minister, Ethiopia

3 DRIVING THE LEADERSHIP AGENDA

Ibrahim Assane Mayaki,​ CEO of the NEPAD Agency, The importance of clear land rights in the sustainable and Commissioner Tumusiime Rhoda Peace of development of the agriculture sector was further the African Union reflected on the progress made in emphasized by Liliane Ploumen, Minister​ for mobilizing the private sector to work in alignment with Foreign Trade and Development Cooperation of the farmers and governments. Netherlands.

They shared their appreciation for Grow Africa’s Partnership continues to be a core success factor in convening role in bringing the private sector to the agricultural development and was stressed by all table to drive delivery on agricultural investment and participants in addressing the opportunities that the development commitments. region’s agriculture sector represents.

Sarita Nayyar​, Managing Director of the World Mark Bowman​, Africa Managing Director for Economic Forum, highlighted the achievements of Grow SABMiller, discussed the transformative role of the Africa in mobilizing over $2.3 billion in investment and private sector, particularly in providing guaranteed engaging over 10 million smallholder farmers, while markets and finance, as well as exciting sourcing creating 88,000 jobs. As Emmanuel Ijewere,​CEO of opportunities for local materials – including sorghum, BestFoods in Nigeria, observed: “Agriculture cassava, and maize – through partnerships with small­ is no longer just a means to reduce poverty.” scale farmers. Nayyar also noted Grow Africa’s role in inspiring similar partnership-based­ approaches elsewhere, most notably Sharing an example of a successful model for inclusive Grow Asia. investment, Samia Suluhu Hassan​, Vice-­President of Tanzania, spoke of the Southern Agricultural Growth Examples of progress at the national level were shared Corridor of Tanzania (SAGCOT) partnership, where by by government leaders, including the issuance 50,000 smallholder farmers have transformed their of title deeds to all farmers in Rwanda highlighted by production through inclusive investment. Claver Gatete​, Rwanda’s Minister​ of Finance, and an ongoing process to achieve the same in Kenya, Future priorities were identified, with finance, where women have also now been accorded legal infrastructure investment, structured public­-private rights to inherit and own land. engagement and improved data on the impact of multistakeholder partnerships to the fore.

Agricultural transformation is a long-term issue, and within that, partnership will be critical. “ - Ibrahim” Assane Mayaki CEO, NEPAD Agency

34 DRIVING THE LEADERSHIP AGENDA

Heads of state stressed the need to improve access to Stephen Muchiri​, CEO of the East Africa Farmers’ affordable finance, as well as public investment in Federation, called for improved measurement of infrastructure, particularly irrigation. Speakers in the impact on smallholder farmers within multistakeholder closing plenary shared the experiences of other partnerships to ensure that all partners within a regions, including the Asian green revolution, described partnership experience the benefits. by Hiroshi Kato​, Vice-President­ of the Japan International Cooperation Agency. This theme was elaborated on by Ishmael Sunga, C​EO of the Southern African Confederation of Access to finance as a central issue was further Agricultural Unions (SACAU), who further stressed the emphasized by SME representative Nike Tinubu,​ need to improve benefits to smallholder farmers and M​anaging Director of Eagleson & Nito Concepts, and reduce the risk they carry in partnerships. Berry Marttin,​ Member of the Executive Board at Rabobank. Marttin noted that strengthening value chains is an important means to reducing the risk in financing agriculture and thereby improving access to finance.

Willy Bett​, Kenya’s Cabinet Secretary for Agriculture, brought to the fore the importance of partnership and platforms such as Grow Africa in helping achieve convergence between public and private sector objectives, calling for “a structured engagement between government and the private sector”.

Africa should become a global powerhouse in food and agriculture. To do that we need to change our “ perspective on agriculture. Agriculture is a business. - Akinwumi Adesina President, African Development” Bank

5 PROGRESSING INCLUSIVE VALUE CHAINS

Four value chain sessions were held to make progress on existing regional value chain activities in rice, cassava and potato, as well as exploring bottlenecks and their solutions in bean and pulse seed value chains.

Investment opportunities in industrial cassava value chains

The Sustainable Trade Initiative (IDH) and Grow Africa convened partners working in the cassava value chain to discuss investment opportunities in cassava processing identified in a recently completed pipeline study, and to seek commitments to finance the development of these opportunities. This study built on a previous cassava market opportunity study National cassava platforms in Mozambique, Ghana and and the progress made by three national platforms Nigeria committed to actively supporting the in Mozambique, Ghana and Nigeria since 2014. implementation of its recommendations. End buyers also welcomed the study’s findings, emphasizing their growing demand for processed cassava products and highlighting the critical importance of Cassava pipeline presentation highlights providing technical assistance to cassava farmers to improve farmer incomes and increasing production. • By capturing opportunities in commercial Significantly, the AfDB committed to establish credit cassava, over 200,000 smallholders can lines for both cassava processing and for technical be brought into the supply chain and assistance in the three focus countries. The credit lines $275 million will be saved in imports will be made available through local banks and implemented in close coordination with Grow Africa and • Africa Cassava Industrialization Facility IDH, as well as the national cassava platforms. (ACIF) will offer working capital and long­ Based on the success and learnings of the fund in the term debt ​to primary processors with a three initial target countries, the AfDB hopes to credit guarantee mechanism subsequently broaden the initiative to include more • The African Development Bank (AfDB) countries and reach more farmers. will set up an initial debt facility of about $50 million Grow Africa will work with IDH and the AfDB to finalize the credit facility in the coming months, with a • A market snapshot of the three initial view to launching in early 2017 at the latest. countries indicates an initial pipeline of more than $50 million in immediate financing

Agriculture is no longer just a means to reduce poverty. “ - Emmanuel Ijewere” CEO, BestFoods Nigeria

6 PROGRESSING INCLUSIVE VALUE CHAINS

Building a viable regional market for potato in East Africa Regional potato market study highlights Following the establishment of a regional potato platform in East Africa in 2015, Grow Africa, UPL and • Potential market of nearly $500 million AGRA conducted a regional study to understand the for inputs if farmers’ incomes can be gaps and investment opportunities in the regional assured and production risks reduced potato value chain. The findings of the study were presented with the goal of securing feedback on the • Inadequate storage leads to vast post­ identified investment opportunities, as well as best harvest losses, exceeding 33% of practice in addressing the bottlenecks that impede production. Reducing these losses to investment in this sector. Three discussion groups 15% represents a $200 million a year focused on different elements of the value chain: opportunity in EAC inputs, infrastructure and processing. The session • Regional potato subsector­ needs about also saw an update on the potato platform, which has $1 billion of financing annually and has evolved into a regional consortium led by AGRA and the ability to more than double net Grow Africa, with active participation of implementing farmer incomes in Kenya, Rwanda and partners across the value chain. Uganda

The importance of all potato consortium stakeholders • Estimated market opportunity in potato continuing to act collectively – and with government processing can reach between $400 support – was agreed to achieve coordinated and million and $1.2 billion by 2025 meaningful action to deliver on the sector’s significant potential.

Based on participants’ support for the potato consortium and informed by the market study, Grow Africa and AGRA agreed to continue to champion the consortium­led approach, initially by finalizing the regional market analysis and subsequently hosting a validation workshop to convene implementing partners. This workshop will prioritize the outcomes of the potato session and the market study and agree on related actions. These actions will be driven through the establishment of a consortium secretariat and the creation of targeted, issue specific­ “clusters” of implementing partners.

There has to be a structured engagement between government and the private sector. “ ” - Willy Bett Cabinet Secretary for Agriculture, Kenya

37 VALUE CHAIN SESSIONS

Unlocking private-sector investments within the Grow Africa will progress this call to action by rice value chain convening representatives of existing rice platforms in the coming months to determine areas of alignment Vibrant West Africa focused­ discussions on the and gaps in existing platforms. The outcomes of this rice value chain built on the past year’s work by review and discussions will determine a work plan­ and Grow Africa partners to realize the high potential timeframe for the establishment of national and for regional rice production by focusing on the role regional rice platforms. of national rice platforms in improving value chain coordination. Targeted discussion groups addressed three key aspects of regional rice production: policy, infrastructure and business models.

Learnings were taken from the experience of the Tanzania Rice Council, whose vice chair­ advocated for policy ­focused national platforms to support policy to enable access to seed, improved infrastructure and implementation of regional free trade agreements. Participants agreed that value ­chain platforms are needed to support both the development and the implementation of relevant policies, to prioritize infrastructure investments collaboratively between the public and private sectors, to share best practice for public­-private partnership, and to coordinate stakeholder engagement.

Participants called for Grow Africa to help drive the implementation of effective national rice platforms across rice ­producing countries in both West and East Africa, as well as regional ­level platforms to promote regional trade policy, harmonization of regulation, land reform and alternative financing approaches. These platforms would also have a role in creating demand for domestic rice varieties through effective marketing and consumer education. A taskforce focused on rice milling was also proposed to enable engagement on issues that affect investment levels in this part of the value chain.

8 VALUE CHAIN SESSIONS

Enabling access to quality seed in East & Grow Africa was requested to support development of Southern Africa expedited processes for soya bean and pulse seed trials in target countries, seeking to replicate the Stakeholders convened to explore improving access to Ethiopian example of streamlining multiple seed seed for bean and pulse varieties in this session. The trials into one year. Grow Africa will hold conversations objective was to identify areas where Grow Africa can with national governments and regional economic catalyse meaningful action that would support and align communities to identify potential governments willing with existing activities to improve seed access. to champion this approach on a pilot basis. Grow Africa will also work to establish a platform to engage the Discussions led by the private sector highlighted the private sector actively in this work. vast gap between market demand and current supply for beans and pulses. An example was shared of a Uganda ­based buyer who needs 50,000 million tonnes of soya yet is only able to access 15,000 million tonnes, significantly limiting the company’s ability to grow. The primary issue impeding supply of beans and pulses (including soya) was identified as a lack of quality seed for these varieties. This issue largely reflects the lack of investment in the development of bean and pulse seeds due to insufficient incentives and perceived lack of profitability. Related bottlenecks include: weak infrastructure to transport quality seed across the region; slow implementation of harmonized policies; cumbersome testing and certification procedures; limited investment in R&D; and challenges in balancing the benefits and costs of subsidy programmes.

Representatives from development partners and civil society shared learnings from the seed sector and examples of their activities, and government participants emphasized the importance of regular government engagement on these issues to achieve progress. Notable progress was made in the launch of a regional seed catalogue by ACTESA and FoodTrade East and Southern Africa in 2015 to facilitate documentation and the regional movement of seed varieties.

39 BEST PRACTICE AND INNOVATION SESSIONS

Participants convened to share best practice and inclusive strategies. Challenges that are specific to generate innovative solutions to cross­cutting women farmers do, however, need to be addressed and challenges across the region’s agriculture sector. partnerships are needed to achieve this – for example, in inheritance and land ownership. Engaging smallholders, improving profitability of smallholder production The work of the Grow Africa Smallholder Working Group will continue and in assuming the role of A common observation across sessions was that co­chair of this group, Sean de Cleene​ (Chief Strategy partnership approaches to agricultural development and Partnerships Officer, AGRA) invited active are not yet yielding transformative benefits to all parties engagement in the group to maintain the energy and and it is most frequently smallholder farmers momentum in addressing critical issues and who experience the fewest benefits. Speaking in the opportunities for smallholder engagement. The Working closing plenary discussion, Ishmael Sunga,​CEO Group’s papers on the four topics addressed in of the Southern Africa Confederation of Agricultural the Grow Africa Investment Forum session are available Unions (SACAU), noted that smallholders often here on the Grow Africa website. carry the highest risk and yet experience the lowest returns. He posed the question: “How do we get partnerships to change that?” Similarly, Stephen Muchiri, CEO of the Eastern Africa Farmers Federation, challenged the extent to which partnerships see smallholder farmers as participants rather than recipients.

Challenges to effective inclusion of smallholders in agricultural value chains were addressed by showcasing best practice through successful partnerships with smallholders focused on four areas: information and communication technology (ICT); gender­ differentiated approaches; aggregation; and public-private­ partnerships.

Success factors discussed included identification of champions from different sectors who have ownership of the partnership and are influential within their own sectors; creating trust and a shared vision that prioritizes the smallholder; and strong governance. With respect to gender­ differentiated strategies, it was acknowledged that smallholder engagement strategies focused solely on women are not as effective as more

The leadership that we’re seeing across Africa in food security is truly inspiring. “ - Beth” Dunford Assistant to the Administrator at the US Bureau for Food Security

10 MASTERCLASSES - COUNTRY PARTNERSHIPS AND LAND USE

Masterclass: Country Partnerships and Masterclass: Addressing land access, Land Use human rights, and business risk

Two masterclasses offered deep insight and The Landesa ­led masterclass addressed case study­ based lessons in two key areas the challenges for investors in securing for agricultural investment and development: land rights, including the reputational and effective country partnerships, and land use, operational risks emerging from a lack led by the World Economic Forum’s New of clarity on land rights. Landesa shared Vision for Agriculture team and Landesa practical guidance, based on specific Rural Development Institute, respectively. investment case studies, and participants identified success factors, including the Effective Country Partnerships importance of legal clarity and developing a robust social licence to operate through Based on many years of facilitating effective, two­-way engagement with local public-private cooperation in the agriculture stakeholders. Continuous engagement with sector, a practical guide to designing, local communities emerged as a high priority implementing and scaling effective for effective mitigation against risks emerging multistakeholder platforms at country level from perceived or real disenfranchisement of has been developed by the World Economic local communities. Forum’s New Vision for Agriculture initiative. The session presented guiding principles for mobilizing country­-led, multistakeholder, market-based partnerships at the national level. It addressed issues such as how to activate public­ and private­sector championship for national partnerships, how to develop work­plans and mobilize collaborative action, and how to structure and resource a partnership. Accountability and ownership were identified as key success factors and concrete solutions were suggested to the challenges of securing, and then maintaining, alignment and engagement in the partnership.

We have everything that it takes to produce enough food. So what’s our problem? Visionary leadership. Committed, convinced “ leadership. Frankly speaking,we’ve talked too much. - Kanayo Nwanze President, International Fund for Agricultural Development” (IFAD)

113 BEST PRACTICE AND INNOVATION SESSIONS

Access to finance, approaches to lease financing Partners convened to build support and alignment for development of a multicountry­ concept to expand Access to finance continues to be a significant access to lease financing for mechanization. Lease challenge for agricultural value chain players across financing helps to address critical mechanization the region. The cassava value chain session concluded gaps in regional agricultural value chains and, in so with the establishment of a dedicated credit facility for doing, to fuel economic growth. processing and technical assistance, while the potato value chain consortium plans to develop a case for Innovative leasing companies shared their approaches financing to realize the potential for potato production and the opportunities they have observed in their and processing in East Africa. markets. The International Finance Corporation (IFC) shared conclusions of a recent policy review in Rwanda, highlighting policies that are required to enable lease financing for mechanization. Enabling policy highlights for lease financing A call to action was made for Grow Africa to further develop a lease ­financing model that creates linkages between public sector investment, policy, the • Clarify rights and responsibilities of private sector and lease­ finance providers. This parties to a lease arrangement will be developed with the support and input of the • Harmonize existing legislation to remove Grow Africa Finance Working Group and available to potential contradictions interested countries to pilot. Grow Africa will pursue the development of a strong concept and model with • Ensure lessor’s ownership over assets is the objective of securing development finance support clearly stipulated with simple, effective for its implementation. and timely nonjudicial­ procedures for repossession • Provide for only the necessary level of leasing industry supervision • Be flexible enough to support a range of diversified and innovative products • Ensure tax regime is applied equally to all market participants • Allow for maintenance of a central registry for all leased assets

If you make sure that every piece of the value chain is strong, then actually financing is not that risky. “ - Berry” Marttin Member of the Executive Board, Rabobank

12 BEST PRACTICE AND INNOVATION SESSIONS

Incentivising youth participation in agriculture

Participants discussed the challenges and the importance of attracting young talent into the agriculture sector, acknowledging the negative perceptions that much of the continent’s youth hold about the sector. Attracting talent requires urgent transformation of those perceptions.

The Tony Elumelu Foundation brought new vigour to this conversation by presenting its landmark research, informed by the experience of its young agricultural entrepreneurs participating in the Tony Elumelu Entrepreneurship Programme. A dynamic discussion focused on access to training and mentorship, and access to supply chains to achieve scale and grow.

Participants agreed that innovative new partnership models are needed to address the myriad challenges to young entrepreneurs in the agriculture sector. Training needs to be made more relevant, and more available, equipping youth with business and entrepreneurial skills that allow them to pursue a career in farming as a commercial venture. Partnerships are also required to better facilitate access for entrepreneurs in agricultural SMEs to supply chains.

To what extent is ‘inclusive’ inclusive? To what extent are we seen as participants or recipients? “ - Stephen” Muchiri CEO, Eastern Africa Farmers Federation

13 NATIONAL INVESTMENT OPPORTUNITIES

Seven ministerial delegations presented recent Ethiopia investment opportunities in their countries. Mirafe Gebriel Marcos,​ Chief of Staff and Senior Director at the Agricultural Transformation Agency Burkina Faso (ATA), presented the following five investment opportunities in Ethiopia: Bintou Diallo,​ Director of the Agency for Investment Promotion, presented investment opportunities • ­Integrated cattle feed yard and abattoir within an within the agribusiness zones, known as Growth Poles, existing business, Verde Beef – The Ethiopian in Burkina Faso. Investment opportunities were government has introduced incentives, including shared in the following areas: subsidized land leasing, policy incentives and tax exemptions to attract investment in this sector. • ­R&D for seed, processing infrastructure, and in the fruit and vegetables, rice and potato value chains in • ­UHT processing plant for longlife­ milk production, the Bagré Pôle. with a total of $11 million sought to establish the largest dairy processor in Ethiopia. • ­Rice and maize production for domestic markets, fruit and vegetables, shea butter and sesame, for • ­Large­scale poultry processing plant to produce both domestic and export markets in the more chicken, meat and eggs for the domestic market, recently established Souroupôle and Samendenie with an opportunity to participate as a debt partner growth poles. alongside an experienced regional poultry processor. For more details, visit the Burkina Faso country page on the Grow Africa website. • ­$1.2 million investment in the animal feed and livestock sector to complete and expand a soya bean meal­ processing factory, with annual capacity to produce at least 5,210 tonnes of soya bean meal cakes and 860,000 litres of soya oil.

• $1.5 million - $4 million investment in a greenfield project to develop a tomato processing­ plant – Demand for tomato concentrate is growing in Ethiopia, with further potential to supply export markets in Europe and the Middle East.

For more details, visit the Ethiopia country page on the Grow Africa website.

14 NATIONAL INVESTMENT OPPORTUNITIES

Kenya Nigeria

Moses Ikiara​, CEO of the Kenyan Investment Irede Ajala​, Special Adviser, Investment Promotion Authority, presented six investment opportunities in the and Agribusiness within Nigeria’s Ministry of Kenyan agriculture sector: Agriculture, presented five investment opportunities in Africa’s most populous country: • Makueni Fruit Processing Hub investment to supply domestic, regional and international markets • Rice production and milling investment of $45 million with processed mangoes and passion fruit, produced to cultivate 15,000ha of rice, with the end goal primarily by smallholder farmers who have being 60,000ha to enable self­-sufficiency. Rice been trained in quality management and given ­production opportunities focus on the country’s aggregation support. middle belt because of the Niger River and the high levels of rainfall. • ­Mombasa Food Hub investment to provide logistics, infrastructure and services for traders and • ­Warehousing and storage infrastructure, particularly processors at regional level. Mombasa’s strategic for sorghum, maize, cassava and soya bean. location has the potential to reach a regional market worth $2.5 billion in processed food. • ­Cocoa production and processing for export markets, with a focus on improved quality production, • ­Cold-chain­ storage to reduce post ­harvest losses, with nucleus plantations growing new varieties, as particularly for meat, dairy and horticultural well as diversification in processed cocoa produce. products, such as high quality­ cocoa butter and chocolate. • ­Processing of pyrethrin insecticides and pesticides, for which there is a growing domestic and • ­Milk production, where there is a supply gap of regional market. Investment is also sought in the 631,000 million tonnes a year. provision of pyrethrum seeds. The Kenya government is supporting this subsector­ significantly • ­Seed multiplication, imports of crop ­protection in an effort to regain its position as the world’s products, storage and processing facilities for maize biggest exporter of pyrethrum. and soya bean. Nigeria is the region’s largest soya bean producer yet still imports about 200,000 • ­Beef and leather processing to meet growing million tonnes annually. The nation is also a major regional demand for both meat and leather products. maize producer yet still has a shortfall in meeting domestic demand. • ­Production and consolidation of beans and pulses, with the support of the East Africa Grain For more details, visit the Nigeria country page on the Council. Under the Supporting India Trade and Grow Africa website. Investments with Africa (SITA) programme, Kenyan farmers are offered financial and technical support, as well as a reduction of tariff barriers over a three­year period. An export market in beans and pulses from East Africa to India is growing significantly.

For more details, visit the Kenya country page on the Grow Africa website.

15 NATIONAL INVESTMENT OPPORTUNITIES

Rwanda • ­Pork and pork products, in line with the growing demand for meat products – Kigali pork Gerardine Mukeshimana,​ Minister of Agriculture and consumption has grown rapidly and demand is Animal Resources, led the presentation of six currently partly served by imports. investment opportunities in Rwanda: • ­Production of grains and tubers on developed, • ­A public-private­ partnership to develop the Kigali terraced land – Approximately 93,000ha have been Wholesale Market for Fresh Produce (KWSMFP) developed under radical terraces and a further to help meet the rapidly growing urban demand for 900,000ha under progressive terraces. This land fruit and vegetables – The government is holds potential for growing a variety of food crops, seeking a partner to construct and manage the particularly in grains and tubers for both local KWSMFP, for which an initial feasibility plan and consumption and for export. infrastructure design are available. The total project cost is estimated at $31 million, with an For more details, visit the Rwanda country page on investment payback period of seven years. the Grow Africa website.

• ­Biodegradable packaging materials – Given the ban on polythene bags, Rwanda imported over $120 million in packaging materials between 2008 and 2013. Additionally, regional East African demand is estimated to reach 1 million tonnes a year by 2020. Government incentives include free initial visas, assistance with land acquisition and concessions, and a waiver of import duties and VAT on certain items.

• ­Horticulture for export ­oriented production, specifically 10 irrigated sites covering over 4,900ha of land – All the sites are within 100km of Kigali International Airport and benefit from lower than average leases. A modern warehouse, four regional collection centres and modern airport facilities have been developed in Kigali. Incentives include duty­ free import of machinery and agricultural inputs, and concessional financing support through the Export Growth Facility.

• ­Production of chicks, eggs and other poultry products to meet growing, significantly unmet domestic demand – It is estimated that Rwanda will need to multiply its poultry production by a factor of 20 to meet average African consumption levels. Investors are also positioned to serve the Eastern DRC market, which imports much of its meat from Rwanda.

For agricultural productivity, the most important thing is that “ farmers must own land. - Claver Gatete Minister” of Finance, Rwanda

16 NATIONAL INVESTMENT OPPORTUNITIES

Senegal Tanzania

Mamadou Ba,​ Director, Business Environment Agency Jennifer Baarn​, Deputy CEO of the Southern for the Promotion of Investments (APIX), presented Agricultural Growth Corridor of Tanzania (SAGCOT) opportunities in five value chains in Senegal’s agriculture Centre, presented investment opportunities in the sector: Ihemi Cluster located within the SAGCOT region in the Southern Highlands of Tanzania. The Ihemi Cluster • ­Maritime fishing and aquaculture, with particular is strategically located to reach both domestic opportunities in value addition­ for fish products and regional markets, primarily in the DRC, Malawi, destined for domestic, regional, and international Zambia and Mozambique. Established infrastructure markets – 75% of fish exports from Senegal are includes access to the national grid, railroads and currently in the form of unprocessed frozen fish. The tarmac roads. government has introduced incentives to invest in the modernization and opportunities for value­ • ­Soya production (with outgrowers), procurement, addition in fish value chains. These include storage infrastructure and value addition in the fiscal incentives and support services for investors. development of soya products.

• ­Onion production, particularly of new, better ­performing • ­Mechanization for potato production (working with varieties; processing of onion products; and smallholders), potato storage infrastructure and storage and transport – Senegal’s onion sector remains value addition in the development of potato dependent on imports, despite growth in products. local production The government is seeking to boost production through a series of measures For more details, visit the Tanzania country page on the including a freeze on onion imports during the Grow Africa website. production season.

• ­Production and processing of poultry products, and milk products, to meet rapidly growing demand – Local demand for milk is largely met by imports of powdered milk. The government has introduced investment incentives for these value chains including fiscal incentives, access to finance, new road and transport infrastructure, and investor support services.

• ­Rice production, milling and processing – While rice production has increased in recent years, the country remains heavily dependent on imports and is seeking investment to develop small rice paddy-­production units and rice milling and processing. As a high priority value chain for food security, the government offers investors a range of incentives.

• ­Production of cherry tomatoes for export to European markets and industrial processing for tomato concentrate for the local market, which is currently dependent on imports.

For more details, visit the Senegal country page on the Grow Africa website.

17 Selected Grow Africa Media Coverage

Leaders recommit to transforming African agriculture as investments rise above $2.3 billion

African farmers to gain from $2 billion investment in cold storage facilities project

Rockefeller Foundation to provide up to $1 million in grants for global innovations to enhance cassava shelf life.

Webcast

World Economic Forum on Africa Rethinking Agriculture panel discussion

Read more about Grow Africa’s work in our 2014-2015­ joint Annual Progress Report with the New Alliance for Food Security and Nutrition.

Grow Africa gratefully acknowledges the support of the development partners listed below.

The work of Grow Africa is made The Swiss Agency for possible by the generous support The work of Grow Africa is funded Development and Cooperation of the American people through by UK Aid from the British people. (SDC) provides generous the United States Agency for support to Grow Africa’s International Development work on smallholder farmers’ (USAID). engagement.

18 SESSION SPEAKERS

Abimbola Adebakin​, Chief Operating Officer, The Tony Elumelu Foundation, Nigeria Akinwumi Adesina​, President, African Development Bank, Côte d’Ivoire Kodwo Ahilijah,​ Chief Executive Officer, Ghana Industrial Cassava Stakeholders Platform, Ghana Irede Ajala​, Special Adviser, Investment Promotion and Agribusiness, Federal Ministry of Agriculture and Rural Development, Nigeria Mamadou Ba​, Director, Business Environment Agency for the Promotion of Investments, Senegal Jennifer Baarn​, Deputy CEO, SAGCOT Centre Ltd, Tanzania John Bahana​, Development Director, Kisoro Processing Ltd, Kenya Prabdeep Bajwa​, Regional Director, Africa, DuPont, South Africa Willy Bett​, Cabinet Secretary for Agriculture, Kenya Mamadou Biteye,​ Managing Director, Africa, The Rockefeller Foundation, Kenya Mark Bowman​, Managing Director Africa, SABMiller, South Africa Tony Bruggink​, Programme Director, The Sustainable Trade Initiative (IDH), Netherlands Coy Buckley​, Chief Executive Officer, Equity for Tanzania, Tanzania Winnie Byanyima​, Executive Director, Oxfam International Dyborn Chibonga,​ Chief Executive Officer, National Smallholders Association of Malawi (NAFSAM), Malawi Carter Coleman​, Chief Executive Officer, Agrica Limited, United Kingdom Sean de Cleene​, Chief Strategy and Partnerships Officer, Alliance for a Green Revolution in Africa (AGRA), Kenya Jean De Dieu Ntaganda​, Lead Agribusiness & Field Operations Officer, East Africa Exchange, Rwanda Hailemariam Dessalegn​, Prime Minister of Ethiopia Bintou Diallo​, Director, Agency for Investment Promotion, Burkina Faso Lisa Dreier,​ Head of Agriculture & Food Security Initiatives, World Economic Forum, USA Beth Dunford​, Assistant to the Administrator, Bureau for Food Security; Deputy Coordinator, Development, Feed the Future, USAID Shay Eliaz,​ Principal, Monitor Deloitte, USA Georgina Fleming​, Entrepreneur, H2OVP, Rwanda Claver Gatete​, Minister of Finance and Economic Planning, Rwanda C. D. Glin​, Associate Director, The Rockefeller Foundation, Kenya Sten Guezennec​, Business Development Manager Africa, Bayer CropScience, France Leslie Hannay,​ Gender and Land Tenure Lawyer, Landesa Samia Suluhu Hassan​, VicePresident­ of Tanzania Nuhu Hatibu​, Chief Executive Officer, Kilimo Trust, Uganda Simon Hindley​, Director, Procurement, Africa Sourcing Development, Unilever, United Arab Emirates Emanuel Ijewere​, Chief Executive Officer, BestFoods, Nigeria Moses Ikiara​, Chief Executive Officer, Kenyan Investment Authority, Kenya Pascoal Isaias​, Chief Executive Officer, Lozane Farms, Mozambique Agnes Kalibata​, President, Alliance for a Green Revolution in Africa (AGRA), Kenya Njack Kane​, Chief Executive Officer, Intervalle, Switzerland Benedict Kanu,​ Lead Agriculture Expert, African Development Bank, Côte d’Ivoire Hiroshi Kato,​ VicePresident,­ Japan International Cooperation Agency (JICA), Japan Uhuru Kenyatta​, President of Kenya Geoffrey Kirenga,​ Chief Executive Officer, SAGCOT Centre Ltd, Tanzania Gagan Khurana,​ Founder, MaxiTerra GmbH Naoko KoyamaBlanc­ ​, Partner, Dalberg Development Advisors, Kenya Augustine Langyintuo​, Senior Agribusiness Specialist, International Finance Corporation, Kenya John Logan, Country​ Director, TechnoServe, Kenya Mirafe Marcos, Chief​ of Staff and Senior Director, Agribusiness & Markets, Ethiopian Agricultural Transformation Agency (ATA) Berry Marttin, Member​ of the Executive Board, Rabobank, Netherlands Jack Masawa, National​ Sales Director,​ LachLan Kenya, Kenya Hloni Matsela, Corporate​ Affairs Director, SABMiller, South Africa Ibrahim Assane Mayaki​, Chief Executive Officer, NEPAD Planning and Coordinating Agency, South Africa Humphrey Mburu, Chief​ Executive Officer, SereniFries, Kenya Kinyua M’Mbijjewe, Head,​ Corporate Affairs, Africa, Middle East, Syngenta East Africa, Kenya Walker Morris, Chief​ Executive Officer, The Clinton Development Initiative, USA

19 SESSION SPEAKERS

Gene Moses​, Strategy Officer, Global Agribusiness and Forestry, International Finance Corporation, USA Stephen Muchiri,Chief​ Executive Officer, Eastern Africa Farmers Federation (EAFF), Kenya Gerardine Mukeshimana​, Minister of Agriculture and Animal Resources, Rwanda Kanini Mutooni, Director​ ­General, Investment, The East Africa Trade and Investment Hub, Kenya Martin Mutura​, Manager, Supply Chain, The CocaCola­ Company, Kenya Barbara Muzata Sehule, Leader,​ Communications and Stakeholder Engagement, DuPont, South Africa Erastus Mwencha, Deputy​ Chairperson, African Union Commission, Ethiopia Amadou Nikiema, Director,​ Investment Promotion, Bagré Growth Pole Project, Burkina Faso Alfred Nkhono, Chief​ Executive Officer, Press Agriculture, Malawi Tony Nsanganira, Minister​ of State for Agriculture, Ministry of Agriculture and Animal Resources, Rwanda Kanayo Nwanze,​President, International Fund for Agricultural Development (IFAD), Italy James Nyoro, Deputy​ Director, Agricultural Development, Bill & Melinda Gates Foundation, USA Joost Oorthuizen​, Executive Director, The Sustainable Trade Initiative (IDH), Netherlands George Osure​, Regional Director, Syngenta Foundation for Sustainable Agriculture, Kenya Wilmer Otto, Chief​ Executive Officer, Morogoro Agriculture Group (MORAGG), USA Nana Ama OppongDuah­ ​, Policy Advisor, John Kufuor Foundation, Ghana Olatunji Ayoola Owoeye, Chief​ Executive Officer, Elephant Group Africa, Nigeria Wim Plazier​, Partner, A.T. Kearney Liliane Ploumen​, Minister for Foreign Trade and Development Cooperation, Netherlands MaryJane­ Potter​, Chief Investment Officer, Innovare Advisors, USA Mahadevan Ramachandran,​Deputy Director, Procurement Division, UN World Food Programme, Italy Francesco Rampa, Head,​ Food Security Programme, European Centre for Development Policy Management (ECDPM), Netherlands B. Hanumant Reddy​, Managing Director, Voluntous Agricon, Rwanda Tumusiime Rhoda Peace​ , Commissioner for Rural Economy and Agriculture, African Union, Ethiopia Abraham Sarfo​, Technical Advisor, NEPAD Planning & Coordinating Agency, South Africa Michael Schlup,​ Partnerships Coordinator, Global Cocoa Sustainability, Barry Callebaut, Switzerland Thiruvengadam Sridhar,​ Director of Projects, Export Trading Group (ETG), Malawi Paul Stanger​, Director, Local Sourcing Middle East & Africa, Heineken, Netherlands Ishmael Sunga,​Chief Executive Officer, Southern African Confederation of Agricultural Unions, South Africa Anna Swaithes, Director,​ Sustainable Development, SABMiller, United Kingdom Nike Tinubu,​ Managing Director, Eagleson & Nito Concepts, Nigeria Benjamin Towett, MOSOP​ Horticulture Services, Kenya Aboubakary Traoré​, Directeur département Appui à la Valorisation (Conseil de Riz), Office National de Développement de la Riziculture (ONDR), Côte d’Ivoire Ben Valk​, Head, Food & Agriculture Partnerships, Rabobank International, Netherlands Elke Vandamme​, Agronomist, Africa Rice, Senegal Sospeter Waga​, Managing Director, Value Farms, Kenya Sophie Walker, Regional​ Africa Advisor; Chief of Party, ACDIVOCA,­ Kenya Augustin Wambo Yamdjeu, Head,​ Comprehensive Africa Agriculture Development Programme (CAADP), NEPAD Planning and Coordinating Agency, South Africa Fokko Wientjes​, VicePresident,­ Sustainability and Public­Private Partnerships, Royal DSM, Netherlands Simon Winter,​Senior VicePresident,­ Development, TechnoServe, USA

20 123 GROW AFRICA INVESTMENT FORUM 2016

PARTNERING FOR ACTION

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