3.1. Renewed support for African agriculture and rural development
Many countries in Africa have seen moves to introduce and strengthen democracy and reduce corruption and improve governance and the functioning of the state in general. With this improved focus on governance and the continental wide programs under the African Union and NEPAD came a much more concerted effort to deal with rural poverty and as such agricultural and rural development. The previous lack of political will amongst Africa's senior policy makers and donors toward agricultural development is now changing with the adoption of the CAADP by African governments.
The more serious focus on agricultural and rural development also led to a rethink of the role of the state and how to develop effective public–private partnerships, while reducing distortions and inefficiencies through better institutional arrangements for delivery of subsides and monitoring and evaluation of impacts of subsidy programs. The Nigerian government has initiated a phasing out of the traditional general price subsidies and is moving toward the use of smart subsidies with use of vouchers for farmers, starting with pilots in few states. The Tanzanian government has moved away from its traditional approach of subsidizing transportation of fertilizers to regional warehouses to the use of smart subsidies and vouchers. The World Bank will be supporting a national roll out of the smart subsidy program with $160 million. To strengthen this Alliance for a Green Revolution in Africa (AGRA) is supporting the development of an extensive network of agro-dealers across over 50 districts. Rwanda's success with the use of smart subsidies has been credited for the rapid agricultural productivity experienced by its smallholder farmers. Malawi is experiencing a phenomenal revolution: transforming a once poor and food insecure nation to a breadbasket for Africa, for 4 years running (Denning et al., 2009). Assessments of the subsidy program show that it led to increased agricultural productivity; maize food security at household levels; and increased nutrition and rural employment (Dorward et al., 2008). As food production grew, food price inflation declined, with Malawi experiencing a 7% economic growth rate—one of the highest in the world.
While African governments are expanding support to agriculture, there is still much need for significant increase in ODA support to African agriculture. Estimates from IFPRI show that 33–39 billion dollars of agricultural investments will be needed to achieve the MGD targets by 2015. The recent decision by the G8 to expand support to agriculture in Africa, with promised support of $15 billion, is a positive development. The World Bank has doubled its investments in agriculture in Africa from $400 million to $800 million. IFAD and the African Development Bank have also expanded lending to the agricultural sector in African countries.
3.1. Renewed support for African agriculture and rural developmentMany countries in Africa have seen moves to introduce and strengthen democracy and reduce corruption and improve governance and the functioning of the state in general. With this improved focus on governance and the continental wide programs under the African Union and NEPAD came a much more concerted effort to deal with rural poverty and as such agricultural and rural development. The previous lack of political will amongst Africa's senior policy makers and donors toward agricultural development is now changing with the adoption of the CAADP by African governments.The more serious focus on agricultural and rural development also led to a rethink of the role of the state and how to develop effective public–private partnerships, while reducing distortions and inefficiencies through better institutional arrangements for delivery of subsides and monitoring and evaluation of impacts of subsidy programs. The Nigerian government has initiated a phasing out of the traditional general price subsidies and is moving toward the use of smart subsidies with use of vouchers for farmers, starting with pilots in few states. The Tanzanian government has moved away from its traditional approach of subsidizing transportation of fertilizers to regional warehouses to the use of smart subsidies and vouchers. The World Bank will be supporting a national roll out of the smart subsidy program with $160 million. To strengthen this Alliance for a Green Revolution in Africa (AGRA) is supporting the development of an extensive network of agro-dealers across over 50 districts. Rwanda's success with the use of smart subsidies has been credited for the rapid agricultural productivity experienced by its smallholder farmers. Malawi is experiencing a phenomenal revolution: transforming a once poor and food insecure nation to a breadbasket for Africa, for 4 years running (Denning et al., 2009). Assessments of the subsidy program show that it led to increased agricultural productivity; maize food security at household levels; and increased nutrition and rural employment (Dorward et al., 2008). As food production grew, food price inflation declined, with Malawi experiencing a 7% economic growth rate—one of the highest in the world.While African governments are expanding support to agriculture, there is still much need for significant increase in ODA support to African agriculture. Estimates from IFPRI show that 33–39 billion dollars of agricultural investments will be needed to achieve the MGD targets by 2015. The recent decision by the G8 to expand support to agriculture in Africa, with promised support of $15 billion, is a positive development. The World Bank has doubled its investments in agriculture in Africa from $400 million to $800 million. IFAD and the African Development Bank have also expanded lending to the agricultural sector in African countries.
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