FAO Investment Centre Africa Service (TCIA)

For increased and more effective public and private investment in agriculture and rural development

Alberta MascarettiAccra, 11 April 2016

The investment landscape in FSNARD

Accumulation of capital (physical, human, natural, social and financial) that yields returns over time

  Public PrivateDomestic National and subnational

Governments 

Small and medium farmers, large majority being family farmers

Cooperatives and other farmer organizations Agribusiness enterprises and farming operations Informal lenders, landowners and input suppliers Banks Foundations

 

Foreign Bilateral donors International Financial Institutions

(e.g. EBRD, IFAD, IFC, World Bank, regional development banks)

Multilateral donors (e.g. UN organizations, GEF)

 

Agribusiness enterprises and farming operations Consumer goods and retail companies Investment funds Private banks Foundations Remittances

  

Private sector, especially farmers, is responsible for most investment in FSNARD

0

20

40

60

80

100

120

140

160

180 Chart TitleBillion US$

Domestic

Private Public Public Private

Foreign(averages 2005-07 – SOFA 2012)

From Strategic Objectives to impactRole of investment support in achieving quality impact at scale

FAO is well positioned to support investment in FSNARD…

Political mandate as Global repository of knowledge and data on FSNARD

Respected for setting standards and regulatory instruments

Unique technical knowledge in key sectors

Broad network, country level presence and CPFs

Recognized Centre of investment-related expertise

TCI Mandate and partners

Origin of TCI;

FAO - World Bank Cooperative Programme(1964)

Purpose:

“assist in increasing investment in agriculture and strengthen national capacity to plan, design and implement investment operations”

TCI Mandate and partners

HOW?

1. Support member states in partnership with International Financing Institutions (IFIs): cost-sharing arrangements

cooperative agreement programmes with IFIs: World Bank (WB), IFAD, African Development Bank (AfDB) mainly in Africa;

2. Support member states directly through trust funds, FAO TCPf, TCP etc. e.g support to CAADP process (NAIPs)

TCI’s cost-sharing arrangement

COST-SHARING ARRANGEMENT 60% of TCI’s annual budget is funded through the

“billing” of its services to IFI’s, TFs, TCP (USD 21 million); of this, FAO-CP with the World Bank contributes USD 14 million.

The remaining 40% is covered by FAO Regular Programme funds

Thanks to this cost-sharing arrangement, the FAO Investment Centre (TCI) is recognized as an impartial partner and credible link between countries and IFIs.

Some figures (Global)

operations in over 100 countries 4,000 staff weeks delivered yearly (staff&consultants); of

which about 1,200 SW in Africa700 missions yearly

Partners: (with differences between regions) 60 % World Bank 30 % other IFIs (EBRD, IFAD, etc.) 10 % TCPf, TCP and Trust Funds

TCI hosting the FAO-GEF Unit

TCI Expertise; mobilizing FAO’s knowledge

About 100 professional staff (including ST staff) with mixed expertise:

Economics Institutions and capacity development Agribusiness, rural finance, value chains, marketing Agriculture and livestock Irrigation and water management Environmental, natural resources management, climate change Rural sociology, gender and community development Investment planning at country & sub-regional level (including sector-wide

approaches and NAIP/RAIP)

and also……mobilization of FAO expertise from Technical Divisions, FAORs, DOs and a strong network of international and national consultants

Presenting TCIA

Presenting TCIA

o 29 professional staff (including 10 ST) + 9 general service staff; total 38 staff

o 7 vacant posts

o 9 Investment Support Officers (ISOs) out-posted positions of which 6 filled to date;

1 RAF 2 SFE 1 SFS 1 Pretoria 1 Kenya

Investments accross SPs

All agricultural investment projects designed with TCIA’s support contribute to various SPs and may be relevant to more than one Regional Initiative simultaneously

The majority focus on improving sustainable production (SP-2) and improving value chains (SP-4). This is seen as the means to reduce poverty, improve incomes and food security.

In many cases, issues related to resilience, CC adaptation, nutrition, gender and youth are also mainstreamed into projects;

TCI work is “Cooperative Technical Activity” (CTA)

TCIA contributions to SPs/RIs

How do we work (and should work) at country level?

TCI provides experts who join formulation/implementation missions led by IFI’s working with Government counterparts;

All TCI missions are announced to FAORs and missions meet FAORs for briefings and de-briefings

TCI staff are encouraged to familiarize themselves with the FAO country programme and main activities (CPF / RIs)

Maximize mainstreaming of FAO knowledge and experience in investment programmes

Facilitate FAO’s TA Services through co-financing or UTFs eg Angola, Congo, Niger, S.Sudan….

TCI to assist FAOR’s directly to respond to specific demands from countries; resources need to be available

Areas for improvement

More pro-active effort of TCI staff in information and

knowledge sharing and facilitating contacts with IFI in-country staff at country level;

Mainstream FAO investment support in the country CPFs and report on FAO’s support to investment;

TCIA to keep more active dialogue with FAORs in particular, but also SPLs, RI delivery managers, Sub-regional coordinators (and vice-versa)

TCIA, together with FAO country teams, look for opportunities for FAO to provide Technical Assistance services to countries for the implementation of investment operations (synergies with on-going FAO assistance and/or UTFs/TCPs).

Thank You