SADC Development Finance Institutions Network Progress Report
This report highlights the key initiatives and progress made by the SADC Development Finance Institutions Network in advancing agricultural development, food security, and natural resource management in the region. It outlines the strategic focus areas, investment plans, and thematic facilities established to support agricultural competitiveness and sustainability. The report emphasizes the importance of private sector involvement, infrastructure development, and financial accessibility in achieving regional agricultural development objectives.
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Agricultural Development Fund Agricultural Development Fund SADC DEVELOPMENT FINANCE INSTITUTIONS NETWORK SADC DEVELOPMENT FINANCE INSTITUTIONS NETWORK CHIEF EXECUTIVE OFFICER S FORUM CHIEF EXECUTIVE OFFICER S FORUM The Capital Empire Hotel, Johannesburg, RSA The Capital Empire Hotel, Johannesburg, RSA 7 JUNE 2018 7 JUNE 2018 Martin T. Muchero SADC Food Agriculture and Natural Resources (FANR) Directorate
The Logical Flow Regional Agricultural Investment Plan (RAIP) (2017 2022) (March 2017 Council) Agriculture Development Fund (ADF) (August 2017) Dar-es-Salaam Declaration on Agriculture and Food Security (2004) Regional Agriculture Policy (RAP) (August 2014 - Council) RISDP (2003) RISDP (2015 -20) Strengthen Private sector involvement in Agriculture and Rural Development Industrial development & market integration The absence of a binding legal instrument on food security and agricultural development RAP OBJECTIVES/ RAIP PRIORITY PROGRAMMES 1. Value Chain Facility 2. Agricultural Infrastructure Development Facility 3. Markets & Trade Facility 4. Agricultural Information Management Facility 5. Food & Nutrition Security Facility 6. Environment & Natural Resources Facility 7. Governance & Institutional Development Facility 1. Increased agricultural production, productivity & competitiveness 2. Increased access to markets & trade for agricultural products 3. Increased investment in & access to finance for agriculture 4. Reduced social & economic vulnerability in region 5. Improved food & nutrition security in Region Infrastructure in support of regional integration Agro-industrial development & processing Peace & security cooperation Agricultural financing & investment Special programmes of regional integration Investigate establishment of Agricultural Development Bank / Fund
Total (ADF) Investment Plan Costs by Instrument Total (ADF) Investment Plan Costs by Instrument % of Total I. Investment Costs A. Thematic Facilities to Support Competitiveness 1. Value Chain Facility a. Risk Sharing in Agricultural Lending b. Value Chain Organizational Support c. Technology Transfer and Access d. Agricultural Inputs Subtotal a. Value addition and Mechanization Measure 100.0 Subtotal 2. Agriculture Infrastructure Development Facility a. Water and Energy for Agriculture Facility b. Meteorology Infrastructure Subtotal 3. Market and Trade Facility a. Standardization and Certification Measure b. Transboundary Pests and Diseases Window 24.0 c. SPS Implementation Measure d. Agricultural Trade Agreement Measure Subtotal Subtotal US$ Million 53.9 4.2 60.0 149.2 267.2 4% 0% 5% 12% 21% 8% 29% 367.2 176.3 30.0 206.3 14% 2% 16% 15.0 1% 2% 1% 2% 6% 51% 15.0 25.0 79.0 652.5 3
Total (ADF) Investment Plan Costs by Instrument Total (ADF) Investment Plan Costs by Instrument US$ Million % of Total B. Thematic Facilities to Support Special Schemes 4. Environment and Natural Resources Facility a. Sustainable Management Of Natural Resources 221.4 17% b. Control of Illegal Harvesting and Trade of Natural Resources c. Environment Management 8.7 1% 105.7 335.8 8% 26% Subtotal 5. Agriculture Information Management Facility a. Agriculture Information Management Facility 23.7 2% 6. Food and Nutrition Security Facility a. Regional Food and Nutrition Security b. Food Reserve Subtotal Subtotal C. Governance and Institutional Development 7. Governance and Institutional Development Facility a. Regional Instruments b. National Instruments Subtotal 3.3 216.0 219.3 578.8 0% 17% 17% 45% 9.9 31.1 41.1 1,272.4 - 16.1 1,288.4 1% 2% 3% 99% 0% 1% 100% Physical Contingencies Price Contingencies 4
ADF Costs Split by Contributor Contributor US$ 000) % of Total ADF Contribution to RAIP Implementation 49% 635,867 National Budget Allocation to NAIP implementation in alignment with the RAIP 375,697 29% Private Sector / Beneficiary contribution to project / measure 276,881 21% Grand Total 1,288,445 100% 5
Agricultural Development Fund Unique Features of RAIP Facilities 1. Incentive-based - Lowered initial costs - Leverages on public & private sector funding 2. Flexibility in mix of Measures to achieve individual country /programme requirements - Effective coordination & harmonisation of Regional Agricultural Investment Plans (RAIP) & National Agricultural Investment Plans (NAIP) - Provides clear rules & regulations of engagement National Regional 6
Agricultural Development Fund Unique Features of ADF Facilities 3. Donor / development partner / inter- departmental or organisational entry points - Enforcement of principles of partnership, inclusivity participation, coalitions, etc. 4. Effective monitoring & evaluation 5. Seven Facilities Value chains; Agricultural infrastructure development; Markets & trade; Agricultural information management system; Food & nutrition security; Environment & natural resources; and Governance & institutional development. i. ii. iii. iv. v. Facility 1 vi. Window 1.1 Measure 1.1.1 Measure 1.1.2 vii. Window 1.2 Measure 1.2.1 Measure 1.2.2 7
Alignment of Agricultural Development Fund and other SADC Strategic Frameworks SADC Regional Development Fund (RDF) Infrastructure in support of Regional Integration Industrial Development & Market Integration Sustainable industrial development, trade integration and financial cooperation Improved and integrated regional infrastructure Transport Master Plan: develop appropriate, integrated, safe, secure and efficient infrastructure capacity along strategic transport and development corridors Strategy and Roadmap Enhance the productive capacity, productivity and competitiveness Industrialisation Water Policy: Water for Development and Poverty Reduction: containing policy provisions on water for basic human needs and for industrial development; water for food and energy Regional Infrastructure Development Master Plan (RIDMP) Enhanced export diversification, natural resources beneficiation, value-addition and increased regional trade and employment generation. security Information and Communication Technologies (ICT ) Sector Plan: aims to ensure that available technologies are accessible and affordable for all citizens in the SADC region, and that ICTs are fully able to support the national development agendas and policies as well as the region as a whole including accelerating regional integration, inclusion of rural and isolated populations, enhancing competitiveness, maximising economic development, attaining SDG targets, eliminating supply side constraints, reducing the cost of doing business in the region, and overall, address SADC s overarching objective of reducing Enhanced strategic partnership between governments, the private sector, the civil society Harmonize and simplify trade procedures poverty Trade Facilitation SADC Regional Energy Access Strategy and Action Plan: Improving energy access is a basic requirement both for sustaining the national level of economic development, for reducing poverty and allowing people to improve their standard of living. Programme Initiate regional trade facilitation schemes SADC Renewable Energy Strategy and Action Plan (RESAP): whose objective is to explore options to increase the use of renewable energy in Southern Africa and to ensure that the regional energy strategy is aligned with global trends towards clean and alternative energy Support and guide national trade facilitation implementation sources. Reduce transaction costs in SADC Member States (Tourism) SADC Programme for Transfrontier Conservation Areas: is a model of community centred, regionally integrated and sustainably managed network of world class transfrontier conservation areas whose mission is to develop SADC into a functional and integrated network of transfrontier conservation areas where shared natural resources are sustainably co- managed and conserved to foster socioeconomic development, and regional integration for the benefit of those living within and around TFCAs and mankind at large. Finance & Investment Finance & Investment Protocol seeks to foster harmonisation of the financial and investment policies of the State Parties in order to make them consistent with objectives of SADC and ensure that any changes to financial and investment policies in one State Party do not necessitate undesirable adjustments in other State Parties. Protocol Value Chain Facility Agriculture Infrastructure Development Facility Meteorology Sector Plan: aims to provide: which aims to provide infrastructure for poverty reduction through enhanced application of advances in climate sciences Agriculture Markets and Trade Facility AGRICULTURAL DEVELOPMENT FUND 8
Alignment of Agricultural Development Fund and other SADC Strategic Frameworks AGRICULTURAL DEVELOPMENT FUND SADC Disaster Preparedness and Response Strategy and Fund whose outcome is to substantially reduce the negative impact of disasters on losses of lives, livelihoods and health and in the economic, physical, social, cultural and environmental assets of persons, businesses, communities and countries in the SADC Region through building a culture of safety and disaster resilience by strengthening the preparedness and response for early Crop Development Strategies Agriculture Information Management Facility Regional Agricultural Investment Plan (RAIP) Livestock Development Strategy Aquaculture Strategy Environment and Natural Resources Facility Forestry Strategies Food and Nutrition Security Facility recovery. Law Enforcement & Anti-Poaching Strategy Governance and Institutional Development Facility Agricultural Information Management Systems Regional Vulnerability Assessment and Analysis (RVAA) Programme whose goal is to reduce poverty and vulnerability through climate-resilient livelihoods in the SADC Region for enhanced regional and national response to climate change, poverty and livelihood vulnerability. Disaster Risk Reduction Programme Sustainable Environment Strategies Food & Nutrition Security Strategy Regional Multi-Dimensional Women Economic Empowerment Programme Regional Sovereign Risk Insurance Mechanism Gender Strategic Plan on Combating Trafficking n Persons especially women and children requires, among others, implementation of strategies that reduce poverty and provide decent work for all, including youth of working age. SADC Resilience Framework Orphans, Vulnerable Children and Youth Strategy with the objective to To integrate vulnerable children and youth as priority in all aspects of the development agenda of SADC at policy, legislative and intervention levels, with a focus on providing them with comprehensive services in a holistic manner SADC Regional Sovereign Risk Insurance Mechanism Youth Technology Education, Science & Strategic Plan on Science, Technology & Innovation whose gaol is to to create an enabling environment to harness STI as a tool to address socio economic challenges for regional sustainable development SADCHIV and AIDS Strategic Framework whose mission is to control and reverse the HIV and AIDS epidemic and its impacts HIV/ AIDS Stakeholder Involvement (formulation and implementation) (private sector, civil society, public sector, development partners, NGOs, .) Improved peace and security cooperation Improved human capacities for socio-economic development Peace and Security Cooperation Special Programmes of Regional Dimension 9
Principles for Funding the Principles for Funding the ADF EXAMPLE of FUNDING SECURED EXAMPLE of FUNDING SECURED ADF Example: 9 million from 11th European Development Fund (EDF) The three priority areas [that] will be supported . are linked to the following RAIP/ADF facilities: Crop and Livestock Pests and Diseases Control; Agricultural Information Management System; Food and Nutrition Security Strategy Example: 18 million from 11th European Development Fund (EDF) to contribute to the SADC industrialisation and regional integration agenda by supporting private sector development through the development and implementation of regional sustainable value chains and value addition strategies in selected products within the agro-processing and pharmaceutical sectors . Example: 200,000 from GIZ For Profiling Agro Industry in the SADC Region with the view to identifying 5 regional agricultural value chain options. 10
Figure 1: Scope of Work towards Establishment of Agricultural Development Fund (ADF) SCOPE OF WORK Institutional & Organisational Management Arrangements Legal Arrangements in alignment with RDF Operational Arrangements Funding Arrangements Financial Sustainability Strategy (Developed) Capital Subscriptions / Payments Powers of Fund Institutional & Organisational Structure (Developed) State Parties International Cooperation Partners Private Sector Investors General Assembly Board of Directors ADF Secretariat Instrument establishing Agricultural Development Fund (Developed) Charter establishing ADF Operational Guidelines (Developed) Use of resources Conditions of Financing Programmes for Funding M&E systems Governance DELIVERABLES Support required: - Financial / Technical Support for specific tasks to achieve the above Deliverables / Outputs include: SPECIFIC TASKS (a) Development of specialised TOR for studies / work to be done (b) Recruitment of consultants (c) Study report supervision / quality control (d) Technical input into studies / reports where appropriate (e) Consultative processes on study reports organised, supervised, reported on (f) Validation of reports; (g) Submission for consideration of reports through the SADC approval processes
Regional Agricultural Policy (RAP) Regional Agricultural Investment Plan (RAIP) Agricultural Development Fund An Approach to support SADC Industrial Development & Market Integration Great appreciation goes to the: a. French Ministry of European and Foreign Affairs through FAO, the World Bank Managed Multi-Donor Trust Fund (MDTF), USAID, EU and GIZ for financial and technical support in the formulation of RAP/RAIP/ADF; EU as the first funding source for implementing the SADC Agricultural Development Fund; and All regional and institutional organisations including centres of excellence that supported the processes b. c. Martin T. Muchero mmuchero@sadc.int or pamusha12@gmail.com
