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ALLIANCE FOR COMMODITY TRADE IN EASTERN AND SOUTHERN AFRICA (ACTESA)

ALLIANCE FOR COMMODITY TRADE IN EASTERN AND SOUTHERN AFRICA (ACTESA). CONTENTS. 1. WHY ACTESA? 2. OBJECTIVES OF ACTESA 3. NEXT STEPS ON ACTESA. WHY ACTESA?. 90 % of all Staple Crop Producers are smallholders Only about 10% produce for the market ; 90% produce for household consumption

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ALLIANCE FOR COMMODITY TRADE IN EASTERN AND SOUTHERN AFRICA (ACTESA)

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  1. ALLIANCE FORCOMMODITY TRADEIN EASTERN ANDSOUTHERN AFRICA (ACTESA)

  2. CONTENTS • 1. WHY ACTESA? • 2. OBJECTIVES OF ACTESA • 3. NEXT STEPS ON ACTESA

  3. WHY ACTESA? • 90 % of all Staple Crop Producers are smallholders • Only about 10% produce for the market ; 90% produce for household consumption • 50-60% (of the 10% who produce for the market) sell at harvest (only to buy later) • Poor organization of smallholders and no predictable selling mechanisms

  4. WHY ACTESA ? The member states committed to ensuring that, (i) food aid assistance in the region is development oriented, and (ii) was promoting sustainability of food security among target beneficiaries.

  5. WHY ACTESA? • USD19 billion is spent by COMESA Member States on food imports • USD 3 million Intra COMESA trade in all agricultural products • Great opportunity for trade • Currently Substantial Food Aid from external sources

  6. COMESA AGRICULTURAL SECTOR CHALLENGES Low Productivity TECHNOLOGICAL CONSTRAINTS MARKET RELATED CONSTRAINTS POLICY RELATED CONSTRAINTS

  7. NET RESULT OF STATUS QUO: FAO HUNGER MAP

  8. POLICY DIRECTIVES: ABUJA, ADDIS, SEYCHELLES • NEED TO DESIGN A PROGRAM THAT WOULD COMBINE THE MARKET ORIENTED NEEDS OF PILLAR II and THE FOOD AND NUTRITION SECURITY NEEDS OF PILLAR III of CAADP • CAADP 2nd PP FORUM IN ADDIS ABABA: PRACTICAL PROGRAMS

  9. LAUNCH • SEPTEMBER 24, 2008 • BY COMESA MINISTERS OF AGRICULTURE

  10. ACTESA OBJECTIVES • (i) Competitiveness: Policy Dialogue • (ii) Services: Trade Integration • (iii) Commercialization: Capacity for Engagement • (iv) Over-arching goal : To increase farmer farmer productivity and incomes

  11. 2003, Crop Yields (MT/ha) – COMESA vs Global

  12. ALLIANCE PARTNERS • USAID (Farmer Organisation/trade orgainisation support) • DfiD (CAADP/Trade support) • AGRA (Financial leverage support) • WFP (P4P)

  13. IMPLEMENTATION PARTNERS • Agribusinesses • Banks, Microfinance Institutions • Trade Associations (EAGC) • Farmer Organizations(SACAU, EAFF) • Research Entities • Development Partners(USAID, W/BANK, SIDA, DfiD, etc) • ESASA • Private Foundations

  14. COMPETITIVENESS (OBJECTIVE 1), ISSUES ENHANCED POLICY DIALOGUE: IMPORT/EXPORT BANS, SPS, STANDARDS, SIMPLIFIED TRADE REGIMES IMPLEMENTATION RCA Analysis Methodology; Advocacy in COMESA Policy Meetings

  15. OBJECTIVE 2: SERVICES • financial services, • emerging warehousing receipt programs, market information systems, • transport and infrastructure, • upscale simplified custom systems, emerging commodity exchanges, bulking centres among others

  16. OBJECTIVE 3: COMMERCIALIZATION • Association development (e.g. cassava, bananas, etc) • Contract Compliance Training • Full COMESA Trade Regimes Training Support and appeal measures. • Lessons learnt from our RATES programme

  17. FOCUS COMMODITIES • maize, • sorghum, • rice, • Beans, • pulses, • cassava, and bananas. • Additionally, livestock and livestock products, as well as selected food products produced in marginal agro-ecological zones, will be included.

  18. REGIONAL LINKAGES • Market Linkages Program of AGRA • P4P of WfP • GISAMA in COMESA • AAMP in COMESA/EAC/SADC • ESASA • COMPETE • EAGC • SACAU • EAFF

  19. ACTESA YEAR 1 WORK PLAN • Staff Recruitment • Work Plan Meeting : End of April, 2009 (RRT Kick Off) • Finalize Governance Structure • Concrete activities: Malawi, Other Areas of the Region • Funds Mobilization

  20. COMESA INDEPENDENT INSTITUTIONS • PTA BANK • ATI • COMESA LLPI • RIA • ZEPRE • COMESA COURT OF JUSTICE • COMESA CLEARING HOUSE

  21. ACTESA BUDGET • USD 35 Million over 5 years • USD 10 Million mobilized to-date, welcomes more partners.

  22. LOCATION OF ACTESA • Over the Next 2 years: LUSAKA • After 2 years: LUSAKA, NAIROBI, ENTEBBE or elsewhere.

  23. ACTESA and COMESA: Go to: www.comesa.int

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