2014 3rd_AGCO Africa Summit-brochure

THE 3RD AGCO AFRICA SUMMIT IN BERLIN

AGRICULTURE IN AFRICA

Innovation in the FieldJanuary 20, 2014

An initiative of

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© March 2014, AGCO Corporation

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PhotosMax Lautenschlägerexcept Title: Getty Images, P. 9 (Crops), P. 11: AGCO

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The 3rd AGCO Africa Summit in Berl in

The world’s population is projected to reach 9.6 billion people by 2050. Being able to feed this growing number by also enhancing nutrition will be as much of a concern in 2050 as it is today. With a rapidly growing global population and shrinking resources, Africa can play a purposeful role in transforming the world’s food supply shortage. Science, research, technology, innovation and education are major drivers to improve Africa’s agricultural productivity.

Africa is more than an investment to AGCO. We see Africa’s potential to grow and resolve the world’s food supply problem. We have been active on the continent for more than a century – mainly through our brand Massey Ferguson. It was in the late 19th century that the first export to Africa of Massey Harris took place. In the 1980s and 1990s, we had an initiative to rebuild and recondition thousands of MF 100 and 200 series tractors to suit the African conditions. About half a million of MF tractors were supplied to the African continent. When we launched our vision for Africa in 2012, we wanted to take things to another level. One core

objective was to further develop our local footprint. Since then we opened our first Africa office in Cape Town in 2012 and our master parts warehouse in Johannesburg in spring 2013. We signed a joint venture in Algeria to manufacture state-of-the-art MF tractors on the continent. We have also worked to develop and strengthen our distribution network in about 40 African countries. Another achievement in 2013 was the purchase of our future farm in

Zambia, close to the airport of Lusaka, which demonstrates AGCO’s intent to invest in the longer term. And we have further plans for the future. In 2014, we are widening our product portfolio to fit the local market needs through the development of a new implements strategy. Furthermore, we are planning to produce 5,000 tractors in Algeria by 2017. In Ekiti State in Nigeria we are

developing a training centre and we are planning to launch new financial solutions for farmers in Africa.

Moreover, we want to connect, develop and share new ways of how to invest in Africa. We also want to engage and lead the international dialogue. For these reasons, we created the annual platform of the AGCO Africa Summit two years ago. Since then many great minds who want to move things forward in Africa joined us in our efforts. Representatives from governments (many of them from Africa), executives from the private sector, academia and international organizations, all contribute in many different ways to the success of the initiative.

Thanks to all our speakers and participants for their commitment and dedication to this important occasion. Special thanks to our sponsors DEG - Deutsche Investitions- und Entwicklungsgesellschaft, Bayer CropScience, Rabobank and De Lage

Landen, and the John A. Kufuor Foundation. Thank you for your continued support to make this event such a success.

Prof. Martin Richenhagen, AGCO Chairman, President and CEO, & Dr. Rob Smith, AGCO Senior Vice President and General Manager EAME

Dr. Rob Smith Prof. Martin Richenhagen

“This summit for Africa‘s agricultural sector has, within a very short time, established itself as an important institution.“

Dr. Hans-Peter Friedrich, Federal Minister of Food and Agriculture, Germany

AGRICULTURE IN AFRICA – Innovation in the Field

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AGRICULTURE IN AFRICA – INNOVATION IN THE FIELD

In the coming decades, the demand on Africa is that Africa can, and should feed itself, and leave some for the rest of the world. Africa must be the breadbasket of the world, and that is the opportunity that is presented. The potential is there for agriculture

to boost rural livelihoods, reduce poverty and underpin other vital sectors of African economies to ensure development. To do that, my friends, African agriculture should be efficient as well as sustainable. To say that our planet is currently in peril is a gross understatement.

The earth is becoming warmer and warmer; there are severe droughts, killer heat waves, fast-melting glaziers, as well as severe floodings all around us. The signs are that these are the effects of climate change caused mainly by human-induced alterations of the earth. The negative impacts on agriculture are obvious. That I should have this opportunity to address the issue of the promotion of agriculture on a sustainable basis when I have just recently been appointed the UN Special Envoy for Climate Change is intriguing because climate change is a major inhibiting force to a sustainable agriculture. Sustainable agricultural systems and practices should seek to make the best use of nature’s goods and services such as land, water, biodiversity and technologies. To achieve this requires more human efficiency arising out of knowledge, planning, leadership, ingenuity, management and skills. These combined attributes should give

flexibility and predictability to farming societies so that even with changing climates the farmer will still be able to adapt for success. Agricultural systems that offer labour-absorption opportunities, through resource improvements or value-addition, can boost local economies. They thereby also help to reverse rural-to-urban migration, thus positively impacting a key dimension of food security, i.e. stability. To promote agriculture in Africa and make it efficient, we need to uphold these sustainable principles.

It is conclusive that collaborative efforts among all stakeholders comprising governments, the private sector, the scientific community, local communities, NGO’s, gender advocates, and labour are requisite for sustainable agriculture in the developing world. Africa is open for partnerships at all levels from within and without to lead the transformation of agriculture from its current state to one which is sustainable and efficient to meet the demands of the coming decades.

President John A. Kufuor, Former President of the Republic of Ghana

PROMOTING A SUSTAINABLE AND EFFICIENT AFRICAN AGRICULTURE

The John A. Kufuor Foundation was established to create a platform for collaboration among state institutions, civil society organizations, the private sector, the media and development partners in order to achieve his vision of effective leadership, democratic governance and sustainable development in Africa.

President John A. Kufuor

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YOUTH IN AGRICULTURE - THE AGCO AFRICA AMBASSADORSWith the annual Africa Ambassador competition, AGCO aims to find talented young Africans to represent their country at the AGCO Africa Summit in Berlin and to actively communicate and share ideas about the agricultural sector in the following year via the project‘s Facebook and Twitter pages. The contest was run for the third time and brought three top talented people to light:

AGCO Africa Ambassador 2014

Joy Jelimo Chelagat: “An Innovative Idea”With a strength in social and digital communication Joy is the current AGCO Africa Ambassador, representing her country Kenya. She inspired AGCO with her idea of using social media and digital technologies to inform farmers about the best possible ways of cultivating their crops.


Tosin Odunfa: “The Smart Entertainer”

Nigerian Tosin Odunfa hosted the second Summit. The smart and talented entertainer did a fantastic job on stage and empowered many people to actively engage in the green revolution of agriculture in Africa. From vision to action even became the slogan for him.


Sue Musunga Chuzu: “From Banking to Farming”

During her time as Afr ica Ambassador she quit her banking job and became a full time employee of AGCO. At present, Sue is responsible for all marketing activities around the future farm and training center in Zambia. She is the best example for working at the grassroot level and for making a contribution as a young person for the agricultural sector.

“We must outrun the challenges we face in Africa. To do so, social media plays an important role – this is where the youth are. If we catalyze social and digital media for business and agriculture we can get the right messages to the right people.”

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I strongly believe, that an adapted, efficient and sustainable agricultural sector plays the key role in the proactive fight against hunger and the safeguarding of global food security. Furthermore, rural development, especially in developing countries, is of major importance.

We must begin with the farmers on the ground. Initial and further training, adapted technologies and innovation are fundamental prerequisites for a strong farming sector. This is the only way to ensure the rural population‘s effective participation in economic and social development. What matters is farming the land in a productive and sustainable manner. To this end, farmers must learn which cropping methods are best suited for their soils. We need more investment in the

training of farmers. We need multipliers on the ground.

Farmer co-operatives can also be effective in improving living conditions. For instance, when it comes to procuring loans and capital goods or finding better outlets. Farmers need a joint and strong voice and the possibility to engage in networking. They need well-developed transport routes, sufficient storage capacity and modern means of communication to acquire information on prices. Last but not least, we need to expand economic and social infrastructure. Enhanced access to education and health-care facilities is a basic requirement for this. Assisting farmers on the ground means investing in rural farming. Improved agricultural research is essential for higher productivity. To

this end, research efforts are needed along the entire value-added chain. The knowledge transfer required for this purpose can be developed by strengthening international agricultural research institutions, training skilled personnel at German universities and fostering agricultural research and training in developing countries via joint projects with Germany. It is our goal to interlink German and international development-oriented agricultural research even more closely and to apply German know-how in a more targeted manner.

Rural development also means ensuring that there are functioning health care and education services, an intact infrastructure and adequate financial instruments. The aim must be to strengthen trade not only at global levels but also at regional and local levels.

The complexity of the situation and the manifold tasks involved mean that it is indispensable for us to join forces. The international donor community is called upon to promote the above measures with grants and loans. A joint effort also means that the entire Federal Government must pull in the same direction. Our coalition agreement, which makes the safeguarding of global food security one of the main policy focuses, testifies to this. It is the Federal Government‘s declared will to finally make the right to food a practical reality.

Dr. Hans-Peter Friedrich, Federal Minister of Food and Agriculture, Germany

INNOVATION AND TRADITION – WAYS TO ENSURE GLOBAL FOOD SECURITY

Dr. Hans-Peter Friedrich


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Panel Discussion

POLITICAL INSTRUMENTS TO ENFORCE TECHNOLOGY AND SKILLS DEVELOPMENTModeration: Dr. Amrita Cheema, Anchor and Journalist at Deutsche Welle television

In the discussion about food security, the spotlight is now on Africa. The continent has enormous potential to feed the world but first, it has to be able to feed itself. Even though Africa made a huge progress in the last decades it has still the highest number of people who are hungry and poor in the world. How can we unlock the potential Africa has? This panel discussion of African policy makers and public sector representatives tried to find answers on how political instruments can enforce technology and skills development.

Hon. Robert Sichinga, Minister of Agriculture and Livestock of Zambia “The task of developing agriculture cannot be handled by public sector alone; neither can it done by governments alone. We need the private sector and the civil society. Production and productivity are also key elements. Therefore, we have to engage the youth, we need infrastructure and we need to help farmers to be subsidized and get to the level of productivity. Moreover, developing agriculture takes a long period of time. Thus Western companies have to be patient when doing investments in Africa.”

Mohamed Béavogui, Director Partner-ship & Resource Mobilization Office & Senior Advisor to the President of IFAD“The majority of farming in Africa is done by smallholder farmers, thus it is

important to turn them into businesses. Policies have to embrace this objective as well as help make farming more attractive for young people. In Africa the proper enforcement of regulation is a problem, therefore partnerships have to be built where government, private sector, civil society and farm organizations are involved. Moreover, agriculture should not be considered as a separate element from the rest of the economy but it has to be integrated into the whole economic chain.”

Dr. Baba Dioum, Coordinator General of the Conference of Ministers of West and Central Africa“We have a continental instrument for agriculture in the form of CAADP (Comprehensive Africa Agriculture Development Programme), there are regional level mechanisms like COMESA (Common Market for

Eastern and Southern Africa) or ECOWAS (Economic Community of West African States) and we got national programs. What is lacking is how to implement programs. The financing has to come from four sources: government, private sector, smallholders and international institutions and donors. In addition, we need to build real partnerships, which are set up in a proper manner for every farmer to benefit. These partnerships should also include the producers. Thus it should be called PPPP – Public Private Producer Partnership.”

Hon. Dr. Kayode Fayemi, Governor of Ekiti State, Nigeria“In Ekiti State we focus on how to incentivize young people to return to the farm. We also help them develop a value chain. Government provides for example subsidies, improved

Hon. Robert Sichinga Mohamed Béavogui Dr. Baba Dioum Hon. Dr. Kayode Fayemi Katherine N. Ichoya Seyni Ndao

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seedlings and farmland with clearing and management. We have thus seen significant improvement in crops we focused on, such as cassava, rice and coco. In order to achieve policy coherence, we recognize the importance of intervention from government, private sector and the NGO side. However, intervention in agriculture is a long-term investment. The minimum period until benefits appear is a decade or more. Thus private sector must not seek short-term profit in Africa.”

Katherine N. Ichoya, CEO of COMESA FEMCOM“We need drivers of change. We need to promote existing best practices and we need to speak with one voice and create joint ventures. Women‘s groups and the youth have to be involved in order to succeed, as they are key for Africa‘s prosperity. At COMESA in

Zambia we have provided technical skills to the women farmers and created a successful PPP with Zambian government. In addition, we ensured together with the government that the representatives of women are part of various agricultural boards.”

Seyni Ndao, Deputy General Manager of S.A.E.D.“In Senegal we have the resources needed such as water, land and manpower. Further important factors in agriculture are irrigation infrastructure and family plots. However, self-sufficiency will not come only from the family units, here we need the private sector to get involved. Thus, private sector has to play an important role in PPPs. In order for these partnerships to go forward, we need land tenure issues to be addressed and we need mechanisms that facilitate the access of land for the private sector.”

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Africa is rising and has no choice but to rise. It is not enough to talk about potential. We need to turn potential into reality. What we lack in technology, we have in the human element. Unlike Europe – we have a growing and a young population. From the age of 16 to 35 we define youth and 84 percent of the people in Zambia meet this criteria. Even 68 percent of them are below the age of 25, but how do we engage this young population? I hope we can translate this AGCO Ambassador example into a wide spread position.

The issues of production and productivity are key because we cannot enhance trade with anybody including ourselves. Trade between African countries is only at 11.2 percent – what a shame. This is mainly because of the problems of infrastructure connecting one country to another. In my own country, in 2003, we were producing less than 200,000 metric tons of yellow maize. By 2011, we have changed that position. We are no longer importing yellow maize from the U.S. and South America. For the first time we did a record of 3.2 million metric tons of maize. Right now, Zambia is able to provide support to all our neighbor countries like Zimbabwe, DRC, Tanzania, Malawi, Rwanda, Burundi and even South Sudan. We now have more than 1 million metric tons of maize to supply. It has been a long and difficult road to achieve this, and we collaborated with many companies and organizations. For Zambia, we are self sufficient in maize, in wheat and in soya beans. We are self

sufficient in everything else for food except fruits. We still need technology, we need storage capacity, we need the roads and we also need the farmers to increase their level of productivity. I am pleased to hear from the German Minister that now we are also talking about export subsidies, and then we need to talk about the quality level that are important for Europe. There is another important thing, we have land and we have water. Moreover, in Zambia we have a huge population living in villages, in rural areas. This is why we would like to ensure that

food safety and security, nutrition, water management, consumption and rural development will be enhanced. As governments we need to promote those technologies that will maximize the utilization of inputs and the soil in a sustainable manner such as conservation farming and use of mechanized agriculture. In doing so, we are going to come up with increased production and improved yield of quality products.

Hon. Robert Sichinga, Minister of Agriculture and Livestock of Zambia

RISING FROM A DEFICIT POSITIONTO A SUPPLIER SITUATION – THE EXAMPLE OF ZAMBIA

Hon. Robert Sichinga

“The reason why I am here today is because the model of AGCO – which talks about integrated development, where we not only have tractors but also training – sounds very appealing to me.”

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AGCO FUTURE FARM IN ZAMBIA Knowledge development and capacity building

The future farm provides a unique opportunity to educate on mechanization, train on agronomy, introduce strategic partners as well as to build knowledge in crop establishment, protection and nutrition.

The future farm & training centre concept consist of three core pillars:• farm – demonstrate agricultural best-practices• training – provide farming management training, technical training and operations training• school / education – cooperation with local schools to support with governance,

infrastructure and teaching modules.

The fi rst future farm was opened in 2012 in Zambia. The farm, with a size of 148 ha, is managed jointly with partners and includes a training center for small and medium size farmers.

Additional future farms and training centers on the continent of Africa are in planning.

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9:00 – 10:00 a.m. Registration

10:00 – 10:30 a.m. Welcome Remarks Prof. Martin H. RichenhagenChairman, President and CEO of AGCO

Dr. Rob SmithSenior Vice President & General Manager Europe, Africa and Middle East (EAME) of AGCO

Tosin OdunfaAGCO Africa Ambassador 2013

10:30 – 11:00 a.m. Keynote Speech Hon. John Agyekum KufuorFormer President of Ghana and Chairman of John A.

Kufuor Foundation

11:00 – 11:15 a.m.

SpeechInnovation and Tradition –Ways to World Food Security

Dr. Hans-Peter FriedrichFederal Minister of Food and Agriculture, Germany

11:15 – 12:30 p.m. Panel DiscussionPolitical Instruments to Enforce Technology and Skills Development

Moderator Dr. Amrita Cheema Anchor and journalist at

Deutsche Welle

Mohamed BéavoguiDirector Partnership and Resource Mobilization Office and Senior Advisor to the President of IFAD

Dr. Baba DioumCoordinator General of the Conference of Ministers of West and Central Africa

Hon. Dr. John Kayode FayemiGovernor of Ekiti State, Nigeria

Katherine N. IchoyaCEO of COMESA FEMCOM

Seyni NdaoDeputy General Manager of S.A.E.D., Senegal

Hon. Robert SichingaMinister of Agriculture and Livestock of Zambia

12:30 – 2:00 p.m. Lunch Break

2:00 – 2:50 p.m. Panel DiscussionPromoting Women & Youth in Agriculture

Moderator Sue Musunga Chuzu AGCO Africa Ambassador 2012

Catherine ConstantinidesCo-Founder of Generation Earth and Former Miss Earth South Africa

Dr. Helene GaylePresident and CEO of CARE USA

Almas JiwaniPresident of UN Women Canada National Committee

Mpule K. KwelagobeFounder and CEO of MPULE Institute for Endogenous Development and Former Miss Universe

Priscilla Takondwa SemphereCo-Founder of PenAfrica and Author of The Ekari Book Series

PROGRAM January 20, 2014, Hotel Adlon Kempinski, Berlin

Innovation and Entrepreneurship in Agriculture

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2:50 – 3:35 p.m.

Shared SpeechValue Added Agriculture: Sustainable Production and Processing

SpeechFinancial Solutions Supporting the Future of Agriculture

SpeechInnovation for Africa

Bruno WennChairman of the Management Board of DEG

Richard Kimani RugendoFounder and Managing Director of Kevian Kenya Ltd.

Bill StephensonChairman, Global Vendor Finance at De Lage Landen and Member of the Executive Board

Marc ReichardtMember of the Executive Committee of Bayer CropScience and Head of Agricultural Commercial Operations

3:35 – 4:30 p.m. Panel DiscussionPolitical Instruments to Enforce Technology and Skills Development

Moderator Haig Simonian Freelance journalist and

former Zurich correspondent of the Financial Times

Amadou DialloCEO of DHL Freight

Nduati KariukiChairman of Kenya National Federation of Farmers (KENAFF)

Geoffrey KirengaCEO of the SAGCOT Center Ltd.

Prof. Klaus Josef Lutz CEO of BayWa AG

Mohammed Omer MukhierHead of Disaster Policy and Preparedness Department, International Federation of Red Cross and Red Crescent Societies (IFRC)

Yohannes TilahunSenior Director Public Private Partnership, Ethiopian Agricultural Transformation Agency (ATA)

4:30 – 5:00 p.m. The Way to Africa Prof. Martin H. RichenhagenChairman, President and CEO of AGCO

Nuradin OsmanManaging Director Africa & Middle East of AGCO

Jørgen HaslestadPresident and Chief Executive Officer, Yara International ASA

Jane KarukuPresident of Alliance for a Green Revolution in Africa (AGRA)

Moderation Joy Jelimo ChelagatAGCO Africa Ambassador 2014

5:00 – 7:00 p.m. Break

7:00 p.m. Evening Reception

7:30 – 8:00 p.m. Dinner SpeechAfrica – The Underestimated Continent

Dr. Guido WesterwelleFounder and Chair of the Westerwelle Foundation for

international understanding and Former Foreign Minister

of the Federal Republic of Germany

Shakers & Makers: Innovation in Practice

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Panel Discussion

PROMOTING WOMEN & YOUTH IN AGRICULTUREModeration: Sue Musunga Chuzu, Marketing Services Specialist of AGCO Zambia Limited and AGCO Africa Ambassador 2012

Agriculture is one of the oldest occupations of women in Africa. Their contribution to the agricultural sector continues to be a critical part of most economies on the continent. Many women are in the informal sector in agriculture and remain invisible to national statistics. Youth and women are two demographic groups, whose potential has not been fully exploited by most countries. However, they can be drivers of economies and food security. Women of civil society and international organizations discussed on this panel how to promote the role of these groups in agriculture.

Almas Jiwani, President of UN Women Canada National Committee“In developing countries 40 percent of the workforce are women. According to FAO, on aggregate level women comprise almost 50 percent of the agricultural labor force in Sub-Saharan

Africa. Thus they are the greatest untapped economical resource on the continent. However, women remain marginalized as they have less access to land, farming technologies, credits and crop insurances than men. In a similar way, young farmers have a difficult

time of obtaining financing to get their start in agriculture as well. Yet, women and youth should be seen as potential community leaders that can be partners for researchers and investors. Africa will not achieve its potential if half of its workforce is uneducated, denied equal rights and unable to participate in a formal economy.”

Catherine Constantinides, Co-Founder of Generation Earth and Former Miss Earth South Africa“Women play a very important role but it is imperative that we also focus on the role of the boy child. We need the roles and responsibilities of genders clearly defined in agriculture. If we have gender equality, the sector will grow enormously. Moreover, the agriculture sector needs an entire rebranding. We need a new vision and incentives. We must use innovation to inspire youth to come into agriculture. We also need to break the existing stereotypes about farming. African women and youth must be included in the conversation as critical stakeholders as well. Furthermore, from a government perspective, our leaders should take a policy for trade and not aid.”

Female share of population economically active in agriculture (%)

0

10

20

30

40

50 2010 1980

Latin Americaand the

Caribbean

North East &North Africa

South Asia East & South East

Asia

Sub-SaharanAfrica

Source: FAOSTAT

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Dr. Helene Gayle, President and CEO of CARE USA“If we are going to change the way women and girls are perceived, we also have to engage boys and men. Women do not think of themselves as farmers and men don’t think of them either that way. Thus, we need to shift the mindset on both sides. There is no one size fits all answer but we need to tailor it. First of all, we need to do research to understand the context and then put in place solutions. The ultimate goal is to make sure women have access to inputs and information so they can have influence and improve their incomes.”

Mpule K. Kwelagobe, Founder & CEO of MPULE Institute for Endogenous Development, Former Miss Universe“If we talk about a green revolution

and realizing a new vision for African agriculture, then we are talking about our youth. Africa has the biggest youth demographics in the world and they are our best development assets. However, agriculture is currently not appealing. Young people would rather migrate to urban areas, even if it means living in slums. Since what they see from agriculture is back breaking work, which is not profitable. We need to transform the face of agriculture and we must focus on rural development as well, because young people want similar economic opportunities like in urban areas.”

Priscilla Takondwa Semphere, Co-Founder of PenAfrica and Author of The Ekari Book Series“We need to make agriculture sexy again as the sector does not have

much appeal to youth and especially not for women at the moment. We need to create hype around agriculture through media, for example with book and television series about successful farmers. Moreover, we need to engage youth through social media. If we get to hype up agriculture, then young people are going to be excited about it. Currently youth has not been exposed to the sector through the media enough to find it attractive.”

“We need to empower our young people. I do salute AGCO for the Ambassador competition because this is exemplary, innovative way of re-identifying that young people should be partners in agricultural development. This will unlock Africa’s potential in agriculture.”Mpule K. Kwelagobe, CEO of Mpule Institute for Endogenous Development

Almas Jiwani

Catherine Constantinides Dr. Helene Gayle Mpule K. Kwelagobe Priscilla Takondwa Semphere Sue Musunga Chuzu

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SHAKERS & MAKERS: INNOVATION IN PRACTICE

The German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH sees Africa as a business opportunity. “We strongly believe that Africa cannot only feed itself but it can also feed the world,” said Bruno Wenn, Chairman of the Management Board. DEG has a holistic financing approach. The institution invests along the value chain in funds and private sector and thus supports smallholder farmers. Most of the activities are so called outgrower schemes, where DEG is working together with more than 300,000 smallholder farmers. On the other hand, small and medium size enterprises (SME) are also in focus of activities. They are perceived as particularly risky, especially in agriculture. Therefore they also have difficulties to get access to finance.

One of the companies that benefited from DEG financing is Kevian Kenya Limited. The company was founded more than 20 years ago and it is producing whole fruit juice and mineral water for Kenyan and East African markets. Raw material is provided by smallholder farmers. Kevian Kenya turned to German development funding when they realized that a large amount of nationally produced fruit is going to waste. The company successfully encouraged farmers to regulate themselves in terms of quality, thus the farmers started producing a surplus. This made it necessary to significantly increase Kevian Kenya‘s volume of processing.

“DEG credit helped us create employment and we have increased our profitability by two percent annually. We are no longer a small company but a larger enterprise ranking number 65 among Kenyan companies.“

Richard Kimani Rugendo, Founder and Managing Director

Value Added Agriculture – Sustainable Production and ProcessingBruno Wenn, Chairman of the Management Board of DEGand Richard Kimani Rugendo, Founder and Managing Director of Kevian Kenya Ltd.

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Bayer CropScience is an innovative company working in the areas of crop protection, non-agricultural pest control and seeds. “Africa can solve the challenge of food security. The continent has available land; now yield has to be increased by technology, innovation, high quality seeds and by having the right machinery and fertilizers,” said Marc Reichardt, Member of the Executive Committee. The company aims to expand its presence in Africa in the next two years through opening

up new representative offices and by significantly increasing the headcount. The inclusion of high-tech seeds into the African portfolio such as rice and cotton is also planned. “Nevertheless, only innovation is not enough. We have to help smallholder farmers to get into the commercial area, therefore we have to adjust our products and ideas to fit their needs,” said Reichardt. Bayer CropScience also puts emphasis on farmers‘ training. In Kenya alone, they train about 10,000 farmers each year.

De Lage Landen (DLL) offers asset financing and leasing to equipment manufacturers, dealers and distributors worldwide, mainly focusing on the agriculture sector. Today it is one of world‘s largest global vendor financing institutions. DLL is also present in Africa, though it is not fully operating on the continent but conducts projects with various business partners. This partnership-based business gives a great deal of flexibility and understanding of

the market. “We hire local country managers so they can teach us how to apply our products and services,” said Chairman Bill Stephenson. “We truly incorporate the needs of our clients,” he added. De Lage Landen is following Rabobank‘s initiatives in Africa. As an example, the company recently conducted a micro-leasing project in Rwanda, that began in 2012 and funded close to half a million euros.

Financial Solutions Supporting the Future of AgricultureBill Stephenson, Chairman, Global Vendor Finance at De Lage Landen and Member of the Executive Board

Innovation for AfricaMarc Reichardt, Member of the Executive Committee of Bayer CropScience and Head of Agricultural Commercial Operations

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Panel Discussion

HOW TO LEVERAGE AFRICA’S POTENTIAL?Moderation: Haig Simonian, Freelance Journalist and former Zurich correspondent of the Financial Times

Africa has plenty of potential in resources. But how can we leverage this? How does the private sector get involved and which other stakeholders are important? Is there a new entrepreneurial spirit and is the confidence growing in Africa? Panelists from public and private sector, farmers‘ organizations as well as NGOs discussed the solutions to unfold Africa‘s chances.

Amadou Diallo, CEO of DHL Freight“We have 30 million square meters of land in Africa and the GDP will double by 2024, becoming larger than the GDP of India or Brazil – thus we have ample opportunities. So stop talking about aid and let‘s talk about business. It is much easier to do business in Africa than often perceived from the outside. Concerning legal frameworks, there is no legislative system you haven‘t met elsewhere: former French colonies have French legislation, former British colonies have the British system, the Arabic countries have a system like in the Middle East and there are states with Portuguese legislature. Nevertheless, governance is very important hence we have to fight corruption in most of the countries.”

Nduati Kariuki, Chairman of the Kenya National Federation of Farmers (KENAFF)“It is not true that youth is not interested in agriculture. However, they are not interested in poverty. And farming has been synonymous to poverty. The resources are there. Currently 40 percent of young people including university graduates are unemployed in Kenya alone. All the youth requires is a little push in finance and technologies. No matter what technologies, marketing systems or financing we use, the end result must be putting money into farmers‘ pockets.”

Geoffrey Kirenga, CEO of the SAGCOT Center Ltd.“For the past few years, the confidence in Africa increased. Economies are growing at a rate of 7 percent per annum, there are plenty of natural resources, the markets are growing. Moreover, the land is something very central as it is part of the culture, our life. However, in doing business please make sure that guidelines developed by reputable international organizations are followed and investment is there in an inclusive way. It has to create inclusive growth instead of islands of

wealth in the sea of poverty as that is the recipe for disaster.”

Prof. Klaus Josef Lutz, CEO of BayWa AG“Agriculture is indeed a very sexy business – not only in Africa but also from a global perspective and you can make money if you invest in a smart way. We are optimistic and intend to invest in business in Africa. However, there are 54 different countries on the continent, and many tribe structures still prevail. Therefore legal and political certainty and adequate environmental circumstances for doing business are key for investors.”

Prof. Klaus Josef Lutz

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Mohammed Omer Mukhier, Head of Disaster Policy and Preparedness Department, International Federation of Red Cross and Red Crescent Societies (IFRC)“IFRC is a development organization which gets involved in prevention but also in farming – especially for the smallholders and nomads. So we are very close to the most vulnerable. There is indeed a confidence in Africa and a positive progress in terms of policy and delivery. In the 1990s, there were close to 400 million hungry

Africans, the figures from 2012 show about 200 million. The continent has progressed significantly through policy frameworks like CAADP or the Maputo Declaration and commitments made by the African governments. However, there are still significant gaps.”

Yohannes Tilahun, Senior Director Public Private Partnership, Ethiopian Agricultural Transformation Agency (ATA)“Technology and land are only two issues among many components for investors when they come to Africa.

For investors, it is important how comfortable they feel and for the governments what are we doing to make them feel that way. If anything is messed up along the value chain, they think Africa is not worth it. Thus, we Africans have to take care of the whole value chain. Along with technology, African countries need to invest in education. In this regard the continent is already among the highest spenders in GDP overtaking Europe and the U.S. On the other hand, investors need to be patient with us as well.”

f.l.t.r. Amadou Diallo, Nduati Kariuki, Geoffrey Kirenga, Prof. Klaus Josef Lutz, Mohammed Omer Mukhier, Yohannes Tilahun, Haig Simonian

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Interview with Jane Karuku, President of AGRA and Jørgen O. Haslestad, President and CEO of Yara International ASA.

Dr. Rob Smith: Africa went through a tremendous development over the last decade. From your perspective as a real insider ten years after the signing of the Maputo Declaration on Agriculture and Food Security in Africa, what has changed?

Jane Karuku: I have never seen that agriculture in Africa has taken so much center stage in every discussion like it is today – in Africa, in every single country and even today here. 2014 is the ‘Year of Agriculture and Food Security’ in Africa. There are certainly very positive changes.

Prof. Martin Richenhagen: From the business side and as one of the engaged partners in the New Vision for Agriculture of the World Economic Forum (WEF) tell us a little bit about your Africa strategy and your vision for Africa.

Jørgen O. Haslestad: Agriculture in Africa is something that is really starting

to move. We have been in Africa for more than 40 years. Yara is selling fertilizers to most of the countries and we started to work with Kofi Annan in 2004 when he launched the African Green Revolution. We also developed the African Green Revolution Forum, starting this journey in Oslo. We brought the forum to Africa in 2010 and in 2012

President Obama launched a new vision for agriculture in Africa at the G8 Summit in collaboration with the World Economic Forum. We see now that things are really taking pace. And we see a lot of institutions, which are playing an important role, like the WEF, Alliance for a Green Revolution

in Africa (AGRA) and many others. All are driving the development of agriculture in Africa further.

Rob: We today demonstrated that Africa is appealing, agriculture is attractive, and we have also demonstrated that AGCO is engaged. Now tell us more about your institution AGRA?

Jane: We are based in Nairobi. We are unique in working from the ground, bottom-up. We work for smallholder farmers because 80 percent of the food we eat comes from smallholder farmers. We work across the whole value chain and we develop practical

THE WAY TO AFRICA AGCO is entering a new partnership with the African Green Revolution Forum

f.l.t.r. Dr. Rob Smith, Jane Karuku, Prof. Martin Richenhagen, Jørgen O. Haslestad, Nuradin Osman

“Every year the food database by development organization Oxfam lists the best countries worldwide where people have enough to eat, food quality, affordability, and dietary health. Imagine: Wouldn’t it be nice if we have once an African country being number one at this table when it come to food production?”

Nuradin Osman, Managing Director Africa & Middle East of AGCO

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solutions to significantly boost farm productivity by providing modern knowledge and tools to farmers. We work in structuring markets and in innovating finance. We work in farmer groups. To sum it up, we are kind of connecting and bringing together the relevant people and the necessary knowledge.

Jørgen: The beginning of our engagement was a partnership approach to finding solutions. We wanted to achieve collaborations. The basis for what we are doing in Africa is public private partnerships. We need more innovation and we need to make agriculture more profitable and dynamic. There is an

urgent need for working framework and for agricultural financing. For this to happen, coalition building is more important than ever. This is what the African Green Revolution Forum intends to support. We look forward to AGCO becoming a member of the core AGRF partner group. There is a lot to do and we have great momentum!

f.l.t.r. Prof. Martin Richenhagen, Jørgen O. Haslestad

The future of Africa is Africa and its people. The AGCO

Africa Summit is perfectly embedded between the

Global Forum for Food and Agriculture and the World

Economic Forum (WEF) in Davos. AGCO as engaged

member of the WEF’s ‘New Vision for Agriculture’ (NVA)

and the ‘Grow Africa’ initiatives strongly believes in the

success of the public private partnership (PPP) approach

focusing on long-term holistic strategies to develop

African agriculture as opposed to short-term isolated

interventions.

Since its creation the NVA has attracted interest from a

wide range of stakeholders and geographies, and has

catalyzed multi-stakeholder partnership platforms in 15

countries. Together, these efforts have mobilized more

than USD 5 billion in investment commitments and are

projected to engage more than 13 million smallholder

farmers in the next three to five years.

African agriculture is witnessing a historic shift in private

sector investments that create economic opportunity for

smallholders and improve food security. As part of the

NVA the Grow Africa partnership facilitates coordinated,

market-based action, harnessing the power of agriculture

to drive the concerted journey towards food security,

environmental sustainability and economic opportunity.

Grow Africa is led by the African countries, a multi-

stakeholder platform and collaborating with the G8, G20

and AGRF (www.growafrica.com). Taking the customer

respectively the farmer as a starting point and putting

her/him in the center of all considerations to find a

sustainable solution is fully congruent to AGCO’s systemic

approach. We share the same philosophy with all partners

to make the change for a truly green revolution in Africa

that creates a future to all, a perspective for the farmers,

women and youth as well as a sustainable business to

everyone’s benefit.

The journey to transformation is being made possible

by tremendous top-level African leadership; a maturing

partnership between government, companies and civil

society that generates vital trust and understanding and

an increasing recognition that farmers of all sizes, women

and the youth are the key to unlocking the potential of

African agriculture. The next Grow Africa Investment

Forum and WEF on Africa will be held in Abuja in Nigeria

in May 2014.

Marco Prehn, Director Sustainable Partnerships, Strategy &

Integration, AGCO

AGCO in Africa: Go early, stay long

SAVE THE DATE: September 2-4, 2014

4th African Green Revolution Forum in Addis Ababa, Ethiopia, at the African Union’s Headquarterswww.agrforum.com

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Africa – The Underestimated ContinentDr. Guido Westerwelle, Founder and Chair of the Westerwelle Foundation for international understanding and Former Foreign Minister of the Federal Republic of Germany

The world should view Africa diff erently than it ever has before. Africa is on the rise – politically and economically. We need a fresh perspective on Africa. We need a perspective that acknowledges the eff orts and successes of individual countries.

A modern view of Africa sees countries that are addressing the challenges their continent is facing. Increasingly, African solutions are being found for African problems. What we are witnessing here is perhaps the most intriguing evidence for a changing world, in which the supposed certainties of yesterday are serially collected from reality. It is a world in which the global balance of power is shifting dramatically. For Germany, this means that it must cultivate old friendships even more intensively than today, and it must actively explore new partnerships.

I am deeply convinced that we need to open a new chapter in the relations with our neighboring continent. We need to take into account the growing importance of Africa and its increasing responsibility. Our goal should be to use the potential of our cooperation partners for the benefi t of people in Germany and Africa. This is why we need for example more economic exchange. As a member of the German Free Democratic Party, I believe that close economic ties, investment, trade and entrepreneurship are key.

The rise of Africa not only demands more commitment in and for Africa, it also demands the European societies to ask themselves what conclusions they have to draw. The rise of emerging countries in Africa and other continents makes European cooperation even more important.

The African Union is one of the key partners of the European Union. We need to strengthen the cooperation if we are honest with our goal to fi nd African solutions for African problems.

WWW.AGCO-AFRICA-SUMMIT.COM

Documents

2014 3rd_AGCO Africa Summit-brochure