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«Cooperation Framework to Support the New Alliance for Food Security & Nutrition in Côte d'Ivoire G8 Cooperation Framework to Support the “New ...»

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Cooperation Framework to Support the

New Alliance for Food Security &

Nutrition in Côte d'Ivoire

G8 Cooperation Framework to Support the

“New Alliance for Food Security and Nutrition” in Côte d’Ivoire

Three years after the G8 Summit at L’Aquila, Italy, the international community recognises

the importance of food security to development, inclusive economic growth and the dignity

of all women and men. In that spirit, we welcome the success of the Comprehensive Africa

Agriculture Development Program (CAADP) in demonstrating African ownership and leadership, its call for expanded public and private investment in agriculture and desire to build on the progress that African governments have made in advancing a vision for agricultural development in Africa.

Côte d’Ivoire has always encouraged and fostered private investment. The recent adoption of an Investment Code offering greater incentives is conducive to faster growth in private investment throughout the economy, especially in agriculture. One of the factors accounting for the past success of agriculture in Côte d’Ivoire (which today accounts for 23% of GDP) has been the coexistence of agribusiness groups and family farms.

The 2010-2015 National Agricultural Investment Program (PNIA) clearly affirms the will of the Government of Côte d’Ivoire to build on this dynamic partnership. The Government’s will is borne out by the public-private partnerships (PPPs) that have already been established in the cocoa and rice sectors.

Together, the Government of Côte d’Ivoire and the G8 members, commit to the ”New Alliance for Food Security and Nutrition” and to working together to generate greater private investment in agricultural development, scale innovation, achieve sustainable food security outcomes, reduce poverty and end hunger. As partners, we commit ourselves to

the following principles and actions:

Support of CAADP Country Compacts The G8 members, consistent with commitments made at L’Aquila, reaffirm their intention to align their agricultural financial and technical support with the priorities of the CAADP National Investment Plan for Agriculture (referred to in Côte d’Ivoire as the National Agricultural Investment Program or PNIA), in such a manner as to accelerate implementation of the PNIA and in conjunction with commitments made by the Government of Côte d’Ivoire. Consistent with the foregoing, the G8 members recognize the value of predictability of donor activities, including financial and technical support over a sustained period of time, as set out in Annex 2.

The G8 members intend to provide support within the agriculture sector to accelerate implementation of the PNIA, including through the Grow Africa platform, with the overall goal of facilitating increases in private investment and scaling up innovation. The G8 members intend to engage the relevant agencies of their member governments and also to bring to bear appropriate enabling actions to accelerate progress in the areas of finance and markets, science and technology, and risk management. To address the underlying causes of

–  –  –

Key Policy Commitments The Government of Côte d’Ivoire intends to pursue the policy goals set out below in order to build domestic and international private sector confidence to increase agricultural investment significantly, with the overall goal of reducing poverty and ending hunger.

The Government of Côte d’Ivoire intends to improve incentives for private sector investment in agriculture, in particular, taking actions to facilitate inclusive access to and productive use of land; developing and implementing domestic seed laws that encourage increased private sector involvement in this area; and supporting transparent, inclusive, evidence-based policy formulation (see Annex 1).

The Government of Côte d’Ivoire reaffirms its intention to provide the human and financial resources and the mechanisms for dialogue with the private sector, farmers and other stakeholders, and across government ministries that are required for the achievement of tangible and sustainable outcomes, the acceleration of Côte d’Ivoire’s development, and the delivery of tangible benefits to smallholder farmers, including women.

The Government of Côte d’Ivoire reaffirms its commitment to mainstream nutrition in all food security and agriculture-related programs.

Private Sector Engagement Private-sector representatives have communicated that they intend to invest in the agriculture sector in Côte d’Ivoire in support of the CAADP National Agricultural Investment Plan (the PNIA), through Letters of Intent that they will prepare and execute, and intend to advise, shape, and participate in broad, inclusive and sustained private sector consultative mechanisms with the and host government (see Annex 3).

Shared Responsibilities

The G8 members, the Government of Côte d’Ivoire and the private sector, confirm their intention to take account of the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (“the Voluntary Guidelines”) adopted by the Committee on World Food Security in May 2012, as well as the Principles of Responsible Agricultural Investment (PRAI) produced by several international organizations and endorsed by among others, the G8 and G20, which are undergoing a consultative process through the Committee on World Food Security on PRAI.





In addition, they intend to work together specifically to develop pilot implementation programs for the Voluntary Guidelines and the PRAI in Côte d’Ivoire.

2Coordination And Collaboration

Recognizing existing arrangements for division of labor between the Government of Côte d’Ivoire and development partners, G8 members intend to coordinate their efforts with the aim of attaining greater effectiveness. The co-chair of the Côte d’Ivoire agriculture sector working group (currently the Delegation of the European Union) intends to serve as a lead interlocutor with the host country, private sector and other stakeholders on behalf of the G8, working through existing in-country consultation groups and structures without setting up parallel or duplicate structures. The G8 and Government of Côte d’Ivoire welcome the participation of other countries and partners.

Results

Consistent with the New Alliance goal of improving food security and nutritional status by helping 50 million people in sub-Saharan Africa emerge from poverty by 2022, the participants intend their combined actions in Côte d’Ivoire to help over 1 million people emerge from poverty.

Mutual Accountability

The G8 members, the Government of Côte d’Ivoire, and the private sector intend to review their performance under this document through an annual review process to be conducted as part within the existing broader CAADP-Joint Sector Review of PNIA implementation.

These participants intend, in particular, to review progress toward jointly determined objectives on the basis of jointly determined benchmarks in contributing to fulfilment of Côte d’Ivoire’s CAADP investment plan: (1) progress towards achieving the poverty reduction target; (2) G8 member commitments to align their agricultural investments to the Government of Côte d’Ivoire’s PNIA; (3) Government of Côte d’Ivoire’s progress in implementing its policy commitments and consulting with private sector investors; and (4) the investment commitments of private-sector investors.

The review will also take account of the shared responsibilities related to the Voluntary Guidelines and the PRAI.

–  –  –

G8 Members and others express their intentions in support of CAADP investment plans and the goals of the New Alliance for Food Security and Nutrition in a flexible manner.

UNITED STATES OF AMERICA

Funding in the sector of Agriculture:

–  –  –

Contributions in the sectors of agriculture, food security, rural development and nutrition are subject to availability of funding, demand by the governments as well as private firms concerned and confirmation of their commitments by all relevant stakeholders and could

reach the following amounts:

Côte d'Ivoire : 91.5 millions EUR/120 million USD.

GERMANY

Commitments for agricultural development:

–  –  –

EUROPEAN UNION

Programmes under way:

2007-2016: CFAF 43.4 billion, 66.2 million EUR (86.8 million USD)

Funding already programmed:

2013-2018: CFAF 34.1 billion, 52.0 million EUR (68.2 million USD) 1 Except where otherwise noted, funding intentions are calculated using average exchange rates for the first quarter of 2012 (source IMF): USD 1 = EUR 0.762453; USD 1 = JPY 79.39966; USD 1 = GBP 0.636299; USD 1 = CAD 1.001025, 1 EUR=655.957 CFAF.

–  –  –

A number of companies have expressed their intentions to invest in the agricultural sector within the framework of the New Alliance for Food Security and Nutrition. Draft summaries of these investment intentions are highlighted below. Note: the Cooperation Framework will be amended to include only summaries of private investment intentions that have been confirmed by companies through signed letters of intent by October 31, 2012.

–  –  –

Groupe SIFCA Founded in 1964, the Groupe SIFCA is a key player in the West African economy. As Côte d’Ivoire’s largest private group, it dominates the market for rubber, oilseeds and sugar through such subsidiaries as SAPH, PALMCI (publicly quoted companies) and SUCRIVOIRE.

Tightly woven into the country’s social and economic fabric, SIFCA is a major customer for the small farmers who provide much of the group’s raw materials. The group has embarked on major projects to expand its production facilities, including storage facilities, and to sustainably develop the sectors in which it operates from 2012.

a. Projects to expand industrial plant These projects concern the production of rubber, palm oil and sugar in Côte d’Ivoire. The total investment in these three sectors amounts to about CFAF 129 billion over four years (2012-2015). These investments will have a multiple impact on the income of small farmers and employment.

The sugar operation, which currently employs 602 people full-time and 6000 casual workers for a total annual payroll cost of CFAF 8.9 billion, will create new jobs. The expansion of the sugar plant will directly increase the earnings of village planters working with the company. Similarly, investment in the rubber operation, which obtains over 60% of its supplies from village plantations, should see production increase by 8000 tonnes (2012-2015), absorbing the production of 138 000 ha of new plantations, most of them the work of about 9000 small planters. This investment should also generate new jobs with the industrial company. Lastly, the investment in the palm-oil sector should increase 7 production capacity by 15 000 tonnes a year, bringing benefits in the form of new jobs and increased earnings for over 25 000 village planters.

b. Sustainable development projects, with forecast funding of over CFAF 30 billion. In recent years the group has embarked on major projects for the sustainable development of the rubber and palm-oil sectors. These projects are aimed at (1) improving the yield and quality of agricultural products through programmes to train small farmers and (2) contributing to food security by helping small farmers develop food crops alongside cash crops. In the rubber sector, for instance, SIFCA’s assistance should enable about 30 000 planters to triple their yields.

SIPRA

The Société Ivoirienne de Productions Animales (SIPRA) specialises in the production of eggs, poultry and poultry inputs. It has decided to develop its activities via a number of projects that should help improve food security. The first, costing CFAF 17 billion, is aimed at doubling poultry production capacity over the next six years. The second, costing CFAF 3.5 billion, involves creating an agricultural complex in southern Côte d’Ivoire over the period 2011-2013. It will increase output by 70 000 000 eggs (and ultimately by 110 000 000 eggs), ultimately feeding almost 3 million consumers.

SONAL

A fish-trading company, SONAL has decided to purchase a cold store with a capacity of 7 000 tonnes. The aim of this investment is increase storage capacity in the interior of the country, where fish stocks often run out. This CFAF 3 billion project began in January 2011 and will be completed in December 2012.

NERE NERE, which also specialises in the import and sale of fish, has been carrying out a project similar to SONAL’s since March 2012. This CFAF 1 billion project is aimed at constructing storage capacity for 3000 tonnes.

GAA GAA (General Alimentaire Africaine) is planning to invest CFAF 2 billion from 2013 in a rice-growing programme involving the installation of husking units and support for 7500 small farmers.

INTERCOTON INTERCOTON is an interbranch association comprising representatives of small producers and representatives of the cotton companies. Since 2011 INTERCOTON has set up a sustainable financing mechanism for agricultural research and advisory services for growers of cotton and associated crops with a view to improving the productivity of cotton-based

–  –  –

APROMAC (Association of Natural Rubber Trades in Cote d’Ivoire) APROMAC has set up a mechanism for financing agricultural research and advisory services to improve the productivity of rubber plantations. This mechanism is managed by the Interbranch Fund for Agricultural Research and Advice (FIRCA) and is financed by contributions subject to annual revision. This mechanism is providing about CFAF 2 billion for the 2012/2013 agricultural year, but it is set to be maintained for subsequent years.



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