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Africa Fertilizer Summit Africa Fertilizer Summit Outcomes and FollowOutcomes and Follow--upup

by by Amit RoyAmit Roy

Presented at the Partnership to Cut Hunger and Poverty in Africa

Advisory Committee MeetingJuly 18, 2006

Washington, D.C.

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Cereal Yields (Mt/Ha)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.5019

62

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

Mt/H

a

DevelopedCountries

AsiaDeveloping

Latin America& Carribean

Sub-SaharanAfrica

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Cereal Production Cereal Production South Asia and SSA, 1961South Asia and SSA, 1961--20012001

1961=100 for area and yield1961=100 for area and yield

South AsiaSub-Saharan Africa

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Nutrient Mining in Agricultural Lands of AfricaNutrient Mining in Agricultural Lands of Africa

1995–97 2002–04

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Per Hectare Fertilizer Use by Markets Per Hectare Fertilizer Use by Markets 2002/03 (kg/ha)2002/03 (kg/ha)

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Significant Phosphate Deposits of AfricaSignificant Phosphate Deposits of Africa

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Significant Potential Nitrogen and Potash Significant Potential Nitrogen and Potash Resources of AfricaResources of Africa

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The Africa Fertilizer The Africa Fertilizer SummitSummit

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Guiding PrincipleGuiding PrincipleInorganic fertilizers are essential for Inorganic fertilizers are essential for agricultural growth to achieve African Green agricultural growth to achieve African Green Revolution Revolution –– but they are not enoughbut they are not enoughHolistic approach needed to improve: Holistic approach needed to improve: •• AccessAccess:: Increase volume, range, and quality of inputs Increase volume, range, and quality of inputs

using commercial channels using commercial channels

•• AffordabilityAffordability:: Reduce the price of all inputs Reduce the price of all inputs

•• IncentivesIncentives:: Improve functioning of the output markets Improve functioning of the output markets

The Agribusiness System: A Holistic Approach

Agro-IndustryInputs

Agro-IndustryOutputs

Supply ofFarm Inputs

FarmProduction

Marketing andProcessing ofFarm Products

Demand Pull

Enabling EnvironmentMacroeconomic and Sectoral Policies and Regulations

Linkages

Farming

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Africa Fertilizer SummitAfrica Fertilizer SummitAbuja, June 9Abuja, June 9--13, 200613, 2006

AU/NEPAD Initiative, Chaired by President AU/NEPAD Initiative, Chaired by President ObasanjoObasanjo, and implemented by IFDC, and implemented by IFDCGoal: Build consensus around actionable Goal: Build consensus around actionable ideas for promoting fertilizer useideas for promoting fertilizer useThe Summit was attended by over 1000 The Summit was attended by over 1000 stakeholders from all domainsstakeholders from all domainsIt included Technical Sessions, BreakIt included Technical Sessions, Break--out out and Side Sessions, Ministerial Session, and and Side Sessions, Ministerial Session, and the Presidential Sessionthe Presidential Session

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Abuja DeclarationAbuja Declaration

ResolutionsResolutionsRaise average fertilizer use throughout Africa Raise average fertilizer use throughout Africa to 50 kg per hectare by 2015.to 50 kg per hectare by 2015.

Harmonize policies and regulation as well as Harmonize policies and regulation as well as eliminate all duties and taxes by mideliminate all duties and taxes by mid--2007.2007.

Fertilizer is a Strategic Commodity Fertilizer is a Strategic Commodity Without BordersWithout Borders

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Resolutions (continued)Resolutions (continued)

Develop and scale up networks of input Develop and scale up networks of input dealers and communitydealers and community--based distribution based distribution systems by midsystems by mid--2007.2007.

Create programs to strengthen farmers Create programs to strengthen farmers groups, civil society, and the private sector groups, civil society, and the private sector by 2007.by 2007.

Targeted subsidies to help the poorest Targeted subsidies to help the poorest farmers access fertilizer.farmers access fertilizer.

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Resolutions (continued)Resolutions (continued)

Accelerate investment in infrastructure, fiscal Accelerate investment in infrastructure, fiscal incentives, and output markets.incentives, and output markets.

National financing facilities for input suppliers.National financing facilities for input suppliers.

Establish regional procurement and Establish regional procurement and distribution facilities.distribution facilities.

Greater fertilizer production in Africa, Greater fertilizer production in Africa, including blending.including blending.

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Resolutions (continued)Resolutions (continued)

Governments to improve farmer access to Governments to improve farmer access to quality seeds, irrigation, extension services, quality seeds, irrigation, extension services, market information, and soil testing/mapping.market information, and soil testing/mapping.

A call for an Africa Fertilizer Development A call for an Africa Fertilizer Development Financing Mechanism (USD 10 million was Financing Mechanism (USD 10 million was pledged during the summit).pledged during the summit).

System for monitoring and evaluating System for monitoring and evaluating implementation.implementation.

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FollowFollow--UpUp

NEPAD and IFDC to assist Countries and NEPAD and IFDC to assist Countries and RECsRECs to to develop projectsdevelop projectsDFID held a strategy meeting on July 13DFID held a strategy meeting on July 13Gates and Rockefeller Foundations are developing Gates and Rockefeller Foundations are developing projectsprojectsClinton Foundation helping Malawi and Rwanda to Clinton Foundation helping Malawi and Rwanda to reduce procurement costs of fertilizersreduce procurement costs of fertilizersArushaArusha workshop on input sector policiesworkshop on input sector policiesPrivate sector investment in fertilizer production in Private sector investment in fertilizer production in AfricaAfrica

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