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Report
A Business Plan for Africa
Breakaway Sessions 1: Africa Inc.
Product Mix
Session 1: Agro-Industry – From Food Security to
Global Food Basket
November 7th, 2013
POLICY RECOMMENDATIONS WITHIN THE AFRICA 2.0 MANIFESTO
 Systematic registration and user right certification.
 Integrated Water Resource Management (IWRM).
 Action Plan and associated Integrated Irrigation Improvement and
Management Project (IIIMP).
 Establishing of Commodity Exchange market.
 Develop strong agro-industry.
 Government PPP agreement with the Private sector.
 Encouraging the consumption of local produce.
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KEY FACTS AND FIGURES
Fact 1:
Agriculture and agribusiness, including food retailing, together account for
nearly half of GDP in Africa.
Fact 2:
Agricultural production is the most important sector in most African countries,
averaging 24 percent of GDP for the region.
Fact 3: Agribusiness input supply, processing, marketing, and retailing add
about 20 percent of GDP.
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LEVERAGING STRENGTHS AND OPPORTUNITIES, ADDRESSING WEAKNESSES
AND THREATS
IMPLICATIONS
WEAKNESSES
1. Erratic policies in agricultural output and input
markets and trade (see Brenton 2012).
2. Limited access to land and respect for
community land rights (see Deininger and
Byerlee 2011).
3. Poor infrastructure and high transportation
costs (see the World Bank flagship report on
Africa’s infrastructure - World Bank 2010).
4. Difficulties for smallholders and small firms to
access technologies, information, skills, and
finance (see the World Development Report on
agriculture - World Bank 2007d).
According to FAO Statistics, import of
commodities such as wheat, maize, rice,
palm oil, sugar, soy oil, soya beans and milk
increased from a cumulative amount of $35.8
billion between 2001 – 2003 to $92 billion
between 2007 and 2009.The FAO report
projects Africa’s import of same commodities
to a cumulative amount of $200 billion by
2013 and 2015.
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Growing imports of commodities to address gaps
in local market supply.
LEVERAGING STRENGTHS AND OPPORTUNITIES, ADDRESSING WEAKNESSES
AND THREATS
THREATS
IMPLICATIONS
Relative disadvantage of Africa Inc.
Competitiveness as crudely measured
by Africa’s share of global agricultural
exports has fallen for most countries and
for many export commodities.
AFRICA
AGROINDUSTRY
GLOBAL
AGROINDUSTRY
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LEVERAGING STRENGTHS AND OPPORTUNITIES, ADDRESSING WEAKNESSES
AND THREATS
STRENGTHS AND OPPORTUNITIES
Demand
1
Resources
Private sector
2
Of the 500 companies listed in the Jeune Afrique
ranking, 111 are active in at least one segment of
the agro-food value chain. The range of income
among them is extensive, from revenue of more than
$11billion to a minimum of $90 million.
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60% of the world’s
uncultivated arable
land
BEST PRACTICES
 Ethiopia, about six million households have received title certificates in a costeffective way through the implementation of systematic registration and user
right certification procedures.
 In Egypt, the Integrated Water Resource Management (IWRM) Action Plan
and associated Integrated Irrigation Improvement and Management Project
(IIIMP) is the first large-scale application of the irrigation modernization
program, which has introduced continuous flow of water to agricultural land.
 South Africa has an internationally recognized commodity exchange and
Ethiopia has developed a successful spot market exchange. Commodity
exchanges help remove or reduce the high transaction costs often faced by
entities along commodity supply chains in developing countries.
 A case study of four African countries (Ethiopia, Kenya, Tanzania and Uganda
by the African Development Bank) revealed that an integrated strategy is
needed to promote smallholder agricultural growth, and that the government
should play a more central role in providing investment in rural infrastructure,
improving the marketing chain and assisting adaptation to climate change.
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KEY QUESTIONS TO ADDRESS IN TODAY’S SESSION
How is the Agro-Industrial Sector of Africa Inc. in 2063?
How to finance agro-business in Africa?
How to facilitate access to inputs and technology?
How to enhance access to land and tenure security?
How to upgrade infrastructure using public-private partnerships where possible - ?
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ACTION PRIORITIZATION MATRIX AND STAKEHOLDER ENGAGEMENT
MATRIX
Complete the Action Prioritization Matrix below with the key short, medium and long-term
leapfrogging actions.
For each identified leapfrogging action, complete the Stakeholder Engagement Matrix below:
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