Agricultural Transformation in Africa: Role for Parliamentarians

T.S. Jayne and Milu Muyanga

Keynote Address at 4th Annual RENAPRI Stakeholder ConferenceCape Town, South Africa, 30 November 2017

Outline

1. Structuraltransformation(ST)

2. WhyrapidSTwillrequiresolidagpolicyguidance

3. ImplicationsforRENAPRI

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YOUTHLIVELIHOODSOPTIONS

62%<25years

40%Non-farm

60%Farming

Pulled out of agriculture• Injobswithhighbarrierstoentry• Post-secondaryeducation• Investedinskills

Pushed out of agriculture• Relativelyunskilled/limitededucation• Limitedaccesstoland/finance• Mainlyinformalsector/wageworkers

Pushed into agriculture• Fewproductiveassets• Pooraccesstoland,finance,knowledge• Highconcentrationofpoverty

Pulled into agriculture• Goodaccesstoland,finance,etc.• Favorablemarketaccess,infrastructure• Diversifiedincomesources

80%

50%Strugglingfarm

10%Successfulnon-

farm

10%Successfulfarm

30%Strugglingnon-

farm

YOUTHLIVELIHOODSOPTIONS

62%<25years

40%Non-farm

60%Farming

10%Successfulnon-farm

30%Strugglingnon-farm

10%Successfulfarming

50%Strugglingfarm

70%Successfulnon-

farm

30%Successfulfarming

Structural transformation pathwayPolicies

• Inclusiveeconomicgrowth

• Infrastructure• Education

Policies• AgR&D/extension

• Finance• Infrastructureandinvestmentsalongvaluechain

– Irrigation– Roads– Electricity

The views expressed are those of the author(s) and should not be attributed to the Economic Research Service or USDA.

WhatdoweknowaboutagriculturalgrowthinSub-SaharanAfrica?

Source:EconomicResearchService,https://www.ers.usda.gov/data-products/international-agricultural-productivity/

Sourcesofgrowth:

3categoriesofactivitiesthatpromotestructuraltransformation

1. Actionsthattheprivatesectorwillundertakeonitsown

e.g.,distributinginputstoareaswheredemandisstrong

2. Actionsthattheprivatesectorwillundertakeifgovernmentscreateafavorable‘enablingenvironment’

e.g.,distributinginputstoareaswheredemandwouldbestrongwithimprovedroad,port,communicationsinfrastructure

3. Actionsthattheprivatesectorwillnotdoundermostcircumstancesandthatgovernmentsmustdo

e.g.,infrastructure,education,R&D,extensionservices

Importanceofpublicpolicy

RelativeexpendituresonaginSSA(billions):Donors: USD3.8FDI: USD10Africangovernments: USD12privatesector: ??

EconomictransformationinSSAwillrequire:– enlightenedpoliciesà evidenceà research– strengthenAfricanagriculturalpolicyinstitutes?

AnAfricanRegionalAgPolicyNetwork–Arewereadytotakeittothenextlevel?

• What’sthevision?• Institutions,likeorganisms,mustadapttochanging

environmentordie– Newactors– qualityofpolicyanalysistodaydependsonpublicinvestmentsand

strategicdecisionsmade5-10-20yearsago– Policyanalysisrequiressoliddata(achallengeinmanyRENAPRI

countries)– Peoplesobusywiththeirnationalagenda– forcespeopletodo

RENAPRIworkintheir‘sparetime’– Freeriderproblemà UndertakeSWOT/strategicplanningexercise

Processmatters!

• Partnershipisnecessaryforinstitutestodevelop

• How wepartnerinfluencestheoutcome

• Therefore,needtoconsiderourprinciplesforpartnership

Partnershipprinciples(AAP)1. Shared vision - mutual benefit, mutual capacity building

2. Based on trust, mutual respect, transparency, empathy, and accountability between the partners.

3. Collaboration must be sustainable beyond initial grant cycle, with a view toward long-term collaboration

4. Founded on clarity of purpose, with clear contributions to society

5. All partners engage from the beginning -- objectives, activities, resource mobilization and resource allocation plans are developed jointly.

6. a governance structure that reinforces accountability

7. structured work plan and metrics

Bottomlineconclusions

EconomictransformationinSSAwillrequire:– Enlightenedpoliciesà Evidenceà

Research– StrengthenAfricanpublicinstitutions,

includingagriculturalpolicyinstitutes– Processmatters

Governmentsholdthekey!

ThankYou

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