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Report on the High-Level Conference on Development of Agribusiness and Agro-Industries in Africa (HLCD-3A)

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Report on the High-Level Conference on Development of Agribusiness and Agro-Industries in Africa (HLCD-3A) Report on the High-Level Conference on Development of Agribusiness and Agro-Industries in Africa (HLCD-3A) Abuja, Nigeria, 8-10 March 2010 Report on the High-Level Conference on Development of Agribusiness and Agro-Industries in Africa (HLCD-3A) Abuja, Nigeria, 8-10 March 2010 UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2010 Copyright © 2010 by the United Nations Industrial Development Organization. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Designations such as “industrialized,” “developed” or “developing” countries are used for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not imply endorsement by UNIDO. The Conference organizers would like to thank the Federal Government of Nigeria for hosting the Conference, as well as the National Organizing Committee for its great efforts to ensure the success of this event. They also acknowledge the contributions of the team members from each of the following organizations: African Union Commission (AUC), African Development Bank (AfDB), Food and Agriculture Organization of the United Nations (FAO), International Fund for Agricultural Development (IFAD), United Nations Economic Commission for Africa (UNECA), and United Nations Industrial Development Organization (UNIDO). Further thanks go to the individual members of the Joint Organizing Committee, to the technical experts who provided inputs in the drafting of the African Agribusiness and Agro-Industries Development Initiative (3ADI) and at various other stages, and to all who worked hard to make this conference possible. High-Level Conference on Development of Agribusiness and Agro-Industries in Africa 3 Contents 1. Executive summary 5 1.1 The African Agribusiness and Agro-Industries Development Initiative 5 1.2 The 3ADI programme approach 6 1.3 Funding arrangements 7 1.4 Conference deliberations and recommendations 7 1.5 Adoption of the Abuja Declaration 7 2. Conference proceedings 8 2.1 Introduction 8 2.2 Conference Day One: Meeting of high-level officials 8 2.2.1 Welcoming remarks by Mr. Geoffrey C. Mrema (FAO) 9 2.2.2 Presentation of 3ADI 9 2.2.2.1 Introduction and Concept 9 2.2.2.2 Programme Framework 10 2.2.2.3 Programme Approach 11 2.3 Special event: AfDB working lunch highlighting 13 the AfDB/FAO/UNIDO Post-Harvest Initiative 2.4 Special event: Parallel session on the Financial Mechanism 14 2.5 Conference Day Two: Ministerial session 17 2.5.1 Statement by HE Hon. Sayyadi Abba Ruma, Nigerian Minister 17 of Agriculture and Water Resources 2.5.2 Statement by Ms. Elisabeth Tankeu, Commissioner for 17 Trade and Industry, African Union Commission 4 Contents 2.5.3 Statement by Mr. O. Kamal El-Kheshen, Vice President, 19 Sector Operations, AfDB 2.5.4 Statement by Mr. Kandeh Yumkella, Director-General of UNIDO 19 2.5.5 Presentation of 3ADI 20 2.5.6 Presentation on the Financial Mechanism 20 2.5.7 Country statements 20 2.6 Special event hosted by the United Nations Economic Commision for Africa 22 2.7 Conference Day Three: Meeting of heads of state and government 23 2.7.1 Statement by the African Union Commission 23 2.7.2 Statement by the Economic Commission for Africa 24 2.7.3 Statement by the African Development Bank 24 2.7.4 Statement by the International Fund for Agricultural Development 24 2.7.5 Statement by the Food and Agriculture Organization of the United Nations 25 2.7.6 Statement by the United Nations Industrial Development Organization 25 2.7.7 Briefing by HE Chief Achike Udenwa, 26 Minister of Commerce and Industry of Nigeria 2.7.8 Statement by the President of Sierra Leone 27 2.7.9 Statement by the Prime Minister of the United Republic of Tanzania 27 2.8 Adoption of the Abuja Declaration and conclusion 27 2.8.1 Closing address by HE Hon. Goodluck Jonathan, 28 Acting President of the Federal Republic of Nigeria Appendix 1: Abuja Declaration on Development 29 of Agribusiness and Agro-Industries in Africa Appendix 2: African Agribusiness and Agro-Industries Development 33 Initiative: A Programme Framework Appendix 3: Conference programme 53 Appendix 4: Participating countries 58 List of acronyms 59 High-Level Conference on Development of Agribusiness and Agro-Industries in Africa 5 1. Executive summary The High-Level Conference on Development of Agribusiness and Agro-Industries in Africa (HLCD-3A) was held in Abuja, Nigeria, on March 8-10, 2010. Hosted by the Government of the Federal Republic of Nigeria, the Conference was organized by the African Union Commission (AUC) and its New Partnership for Africa’s Development (NEPAD) under the Comprehensive Africa Agriculture Development Programme (CAADP) in collaboration with the African Development Bank (AfDB), the United Nations Industrial Development Organization (UNIDO), the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD), and the United Nations Economic Commission for Africa (UNECA). It was a follow-up action to the Global Agro-Industries Forum (GAIF), organized by UNIDO, FAO, and IFAD in partnership with the Government of India in New Delhi in April 2008, where African delegates recommended the organization of a regional forum to discuss specific issues and priorities for agribusiness and agro-industry development in Africa. The Conference participation comprised 43 African countries represented by three heads of state and government, 42 ministers of agriculture, trade and industry, and other 95 delegates (permanent secretaries, ambassadors, directors and other high-level officials). The total number of participants was 448. The event brought together these high-level officials to consider and endorse the African Agribusiness and Agro- Industries Development Initiative (3ADI). This Initiative builds on the current political commitment to promote the role of agribusiness and agro-industries as economic engines for reducing poverty in Africa. Such a commitment is increasingly being made explicit in the mandates of the ministries of agriculture, trade and industry in Africa as well as in national development strategies. The African Union Commission in collaboration with the five organizing agencies, recognizing the commit- ment of African governments to Investments in Agriculture for Economic Growth and Food Security as expres- sed in the 2009 Sirte Declaration, facilitated the development of the Initiative and spearheaded the Abuja event, which was designed to get feedback from the member countries and secure their endorsement of 3ADI. 1.1 The African Agribusiness and Agro-Industries Development Initiative The goal of 3ADI is to support the agriculture sector in Africa to: attain highly productive and profitable agricultural value chains that effectively link small and medium-size agricultural producers to markets; contribute to increasing farmers’ incomes through value-addition processes; supply higher-valued and dif- ferentiated food, fibre, feed and fuel products to consumers at local, regional and global markets; lead to retention of a higher proportion of the consumer price in the communities or countries where the primary production takes place; utilize natural resources in an overall sustainable manner; and act as an effective basis for industrialization and generation of increased and high-quality employment by the year 2020. The main objective of 3ADI is to facilitate and increase private sector investment flows into the agriculture sector in Africa by mobilizing resources for agribusiness and agro-industrial development from domestic, regional and international financial systems. Specifically, the Initiative will: • leverage current attention to agriculture in Africa to accelerate the development of agribusiness and agro-industry sectors that ensure value addition and trade in Africa’s agricultural products; 6 Executive summary • support a well-coordinated effort to share knowledge and harmonize programmes in ways that capture synergies, avoid fragmented efforts, and enhance development impacts; and • support an investment programme that will significantly increase the proportion of African agricultural produce that is transformed into differentiated high-value products. 3ADI also recognizes the urgent need to increase profitability through increasing productivity and efficiency and reducing the costs of doing business. Furthermore, the Initiative will promote mechanisms to strengthen the supply of finance to agribusiness and agro-industries, focusing on ways to attract local capital and resources to meet agribusiness and agro-industry investment needs, especially in the short term, until public sector investments take hold. The expected results of 3ADI fall into four areas of support essential for agribusiness and agro-industry development: skills and technologies for the post-harvest segments of agricultural value chains; innovative institutions and services; financing and risk mitigation mechanisms; and enabling policies and public goods. The development of skills and technologies needed to improve the efficiency of post-harvest handling systems and operations will cover activities
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