Meeting of the Platform of CAADP Partners (Pretoria, South Africa, 26 - 27 March 2009)

1. West African response to the context of price increase: regional offensive for food production and the fight against hungerDr Yamar Mbodj, Agriculture Advisor/NEPAD– ECOWAS Commission Meeting of the Platform of CAADP Partners (Pretoria, South Africa, 26 - 27 March 2009)

2. Outline • Context • Introduction • What is the situation in West Africa in 2008? • Market outlook and opportunities • Measures recommended • Implementation status • Measures aimed at reviving the ECOWAP/CAADP process • New measures to refine the regional policy • Measuresto strengthen dialog with its partners: • The way forward (work plan) for 2009 • Short-term programs to consolidate and extend the ongoing actions • Medium and long-term programs to finalize • Regional associated instruments and mechanisms • High-level consultation meetings, workshops and meetings

3. I. Context • West Africa’s engagement, since 2003, in various processes aimed at developing and building new mechanisms and tools for the CAADP implementation • In that context, ECOWAS developed West Africa’s Regional agricultural policy (ECOWAP) to guide the CAADP implementation in West Africa • The ECOWAP/CAADP process is based on four complementary approaches: • Early actions of food security promotion; • Medium and long-term investment programs at the national level (NAIP); • Medium and long-term complementary agricultural investment programs at the regional level (RAIP); • Cross-cutting actions and collaborations with the ECOWAS departments, IGOs and development partners • To mobilize, ensure coherence and synergy of ECOWAP/CAADP actions/Objectives

4. I. Context • The context in 2008 was characterized by a sudden price increase: • Between April 2007 and April 2008, the price of a tonne of rice short up to over US$ 700 from $300, reaching a historic level of $1000 in early May. • Between March 2007 and March 2008, the price of wheat climbed to $397/tonne, up from $170. Powdered milk rose from $2 125 in April 2006 to $3 850 a year later, reaching $4 550 in April 2008. • These hikes are occurring within a context of crisis-ridden financial markets, near general increases in the prices of raw materials, particularly oil (the price of a barrel of oil jumped from 63 to 120 dollars over the last 12 months) due to the slump in the value of the dollar ($1 was worth one euro as at 1 January 2000, 0.75 euro as at 1 April 2007 and 0.63 euro a year later).

5. I. Context West Africa was hard hit by the repercussions of the global crisis, although the situation varies from country to country: Thus, prices are more moderate in the countries of the region’s centre and higher in the countries which have had a poor crop season and are highly import-dependent. The prices of rice and wheat are higher than those of other cereals. They are higher in Nigeria’s sphere of influence as a result of the poor planting season in that country and the high demand for livestock feeds

6. I. Context The responses provided by States are, on the whole, of two types: The emergency measures and measures focused on the 2008-2009 crop season; The emergency measures include: i) suspension of customs duties (CD) and in some cases, the value-added tax (VAT); ii) fixing and control of prices of some essential goods; iii) subsidization of consumer prices; iv) suspension of cereal exports, and v) interventions in food markets (sales at affordable/moderate prices). With regard to measures on the 2008-2009 crop season, many countries have prepared and adopted, or even implemented, strategies for developing off-season farming, as well as programmes for developing crop production, particularly rice, through reforms and supply of inputs and seeds.

7. I. Context Attention was drawn to the potential impacts of the soaring prices and of the scope and limitations of the measures taken, especially to the following: possible return to the stabilisation policies of the 80s and 90s (decades lost for development); return to restrictive monetary policies (inflation control) with negative repercussions; loss of the achievements made in the construction of the Community: call into question of the efforts being made for the establishment of the CET and for achieving macroeconomic convergence; possible erosion of regional solidarity as a result of the ban on exports imposed by some countries; Long-term unbearable character of the suspension of taxes on food imports

8. I. Context The surge in food prices leads ECOWAS to take the initiative of: Organizing an extraordinary meeting of Ministers of economy and finance, agriculture and commerce, in May 2008; Then of Heads of State and Government, in June 2008. They stressed that the crisis is of a structural nature and may linger on They recalled the enormous potentials that West Africa is endowed with: mobilisable abundant land and water resources; a market with over 255 million consumers. They underscored the need for the region to take a bold and concerted initiative to address the situation in a sustainable manner In view of this state of affairs, the ministers acknowledged the relevance of the short, medium and long-term actions, measures and policies put forward by the ECOWAS Commission to curb the effects of the rising prices on the populations and the economies of the States.

9. I. Context They therefore adopted the regional offensive for food production and the fight against hunger. The offensive is focused on: three thematic actions: (i) accelerated and sustainable food production to minimize dependency on imports and roll back poverty in the rural environment; (ii) structuring of value chains and regulation of markets to ensure secure outlets for products, stabilise markets, adapt products to demand (processed and standardised products ); (iii) food and nutritional security for the vulnerable sections of the populations the establishment of appropriate safety nets in the rural and urban areas; three time horizons: (i) immediate emergency measures; (ii) measures to ensure rapid agricultural growth and elimination of hunger in the medium-term; (iii) long-time measures; three levels of governance and responsibility through concerted and coherent actions: (i) at national level under the responsibility of States in conjunction with stakeholders; (ii) at regional level under the responsibility of ECOWAS and other integration institutions and organisations; (iii) at international level: United Nations, WTO, etc;

10. I. Context This offensive is the region’s response to the new international price context. It is structured around three major orientations: Quick and sustainable increase in food productions; Organization of the value chains and market regulation;  Food and nutritional security of vulnerable populations; This is in line with the objectives and priorities defined in the ECOWAP/CAADP process and is a form of accelerating its implementation; With measures that relate to and distinguish the short, medium and long terms and refer to either national, regional or international responsibilities; Short-term actions seek to coordinate and back up the efforts made by the countries in 2008 and to put them in a medium-term perspective; medium and long-term actions are considered in the NAIP/RAIP process

11. II. Implementation status • More specific actions to support the implementation of the offensive against soaring food prices (1): • After the extraordinary ministerial meeting in May 2008 in Abuja, the ECOWAS Commission took several measures aimed at reviving the ECOWAP/CAADP process:  • Worked out an action plan towards implementing the recommendations; • Initiated actions to support boosting production during cropping season 2008-2009 (FAO, BIDC, ECOBANK); • Launched the implementation process of the recommendation relating to group purchasing of strategic food commodities (BIDC, ECOBANK) • Rice Forum in Bamako/Ségou, ECOWAS Forum on agribusiness in Ouagadougou; • Speeded up the implementation of on-going programs that contribute to increase agricultural production; • More closely monitored the food and agricultural situation in the region, in collaboration with CILSS; • Supported the formulation process of implementation plans of recommendations addressed to the countries and the regional level; • Improved the NAIP/RAIP facilitation process and strengthened financial support to the countries and lead institutions of thematic groups

12. II. Implementation status • More specific actions to support implementation of the offensive against soaring food prices (2): • The context of price increase and growing instability (cf. context) led ECOWAS to refine its regional policy in three areas: • Market regulation, to reduce price instability which is harmful toproducers and consumers: this aspect deals with internal market regulation and re-definition of commercial policy tools at the regional borders; • Definition of a regional approach as regards access to food for the vulnerable segments of the population: so far, this issue was addressed only in case of food crises occurring in the Sahel countries and the instruments were targeted on the rural area; • Conditions and instruments for the sustainable intensification of agriculture in a changing climatic context .

13. II. Implementation status More specific actions to support implementation of the offensive against soaring food prices (3): The context of price increase and growing instability (cf. context) led ECOWAS to the organization of the Paris conference on the ECOWAP/PDDAA process , which helped to : Share a common vision between the region and the international Community about agriculture and food issues and challenges and how to tackle them; Discuss about ECOWAP/CAADP implementation; Suggest a timeline and working method between the region and the international Community; .

14. II. Implementation status • More specific actions to support implementation of the offensive against soaring food prices (4): • The price increase context also led ECOWAS to strengthen dialog with its partners: • With USAID: development of several joint initiatives in the fields of support to the private sector ( ATP Project and WASA), the cotton sector, the public/private Funds are available within the framework of the US President and Congress’ support to fight against hunger; • With ADB: support to regional programs (irrigation, invasive plant control, IWRM); • With the World Bank: Agricultural productivity development Program in West Africa; there are opportunities within the framework of their program in support of regional integration; • With the EU: support to early actions carried out by the DARD in the 9th EDF; • funding could be obtained under the international facility , the 10th EDF and the EPA; • With the French cooperation: support to the definition process of the list of sensitive products; opportunities for funding two projects (FCPM and food crop value chains); support to the organization of the Paris conference on the ECOWAP financing • Several other partners (Spain, Italy, Great Britain, Netherlands, IFAD, ADB) are currently preparing programs to support regional integration in West Africa, from which support can be expected for the ECOWAP/CAADP process

15. VIII. The way ahead in 2009 • Short-term programs (1): • The program in support of agriculture intensification, which consolidates and extends the following existing achievements and projects: • Country initiatives to boost production (rice, maize, roots and tubers); • Pesticide and seed legislation that must result in infrastructures to develop so as to ensure quality control for both importations and local production as well; • Needs for extending the STCP project for sustainable production and public-private partnership; • The IFDc “MIR plus” Project; • The Seeds Alliance gathering the ECOWAS, USAID, The Melina and Bill Gates Foundation, AGRA; • The rainfed food crop development project currently being prepared jointly by AFD and IFAD; • Needs for extending the FAO FSSP; • Needs for optimizing CORAF’s achievements

16. VIII. The way ahead in 2009 • Short-term programs (2): • The second program in support of commercialization of agricultural products, which strengthens and extends the following initiatives: • Country initiatives to optimize production; • The USAID ATP Market project; • Needs for extending the FAO FSSP; • CMA/AOC initiatives in the field of value chains promotion, public-private partnership development; • The IFDC “MIR plus” Project, financed by the Netherlands; • WFP’s initiatives in the area; • Programs of the NGO Afrique Verte; • “Success stories” in national programs to support optimized use of production

17. VIII. The way ahead in 2009 • Medium and long-term programs: • 15 national agricultural investment programs (NAIP); • 6 program documents that make up the Regional agricultural investment Programs (RAIP); • The operational document for the implementation of the regional agricultural information system (AGRIS); • The ReSAAKS WA build-up program

18. VIII. The way ahead in 2009 • Technical and financial feasibility studies on: • Instruments for: • Regional market regulation through a combination of intervention tools, by storage and border tax; • Financial support to intensification to facilitate access to inputs (interest rate rebate, subsidy to fertilizers and crop seeds, storage guarantee on short-term credit); • Vulnerability reduction or food crisis mitigation through social transfers; • The ECOWAP global financing system

19. VIII. The way ahead in 2009 • Organization of meetings for validation and mobilization of adequate resources: • Technical and political support to the organization of the 15 national round tables in April-June; • Presentation of progress reports to meetings with partners (February, March, May, July, September); • Organization of regional validation workshops of the RAIP 6 components, the AGRIS System, 4 technical and financial feasibility studies, by end June; • Presentation of a progress report to the ECOWAS Authority Summit meeting in June; • Presentation of a progress report to the NEPAD Secretariat with a view to the AU CM and Summit meeting in June/July • Organization of a joint meeting of Ministers of Economy and Finance, Agriculture, Commerce, Regional Integration, in July; • Organization of the International Conference on the ECOWAP/CAADP financing process, in October • Presentation of the conclusions of the international Conference to the ECOWAS Authority Summit meeting of November

20. I thank you for your kind attention