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Resource-based African Development Strategy

RADSRADS

A Resource-based African A Resource-based African Development Strategy (RADS)Development Strategy (RADS)

Presented Presented toto

DevelopmentDevelopmentFoundation forFoundation for

ZimbabweZimbabwebyby

Joe NyamundaJoe Nyamunda Victoria Falls, December, 2010Victoria Falls, December, 2010

Presentation adapted from Presentation adapted from Dr Paul Jourdan (AfDB 2007)Dr Paul Jourdan (AfDB 2007)


RADSRADS

Presentation LayoutPresentation Layout• Africa: starting from what we are as a ContinentAfrica: starting from what we are as a Continent• Zimbabwe’s Current ChallengesZimbabwe’s Current Challenges• Africa’s Agric potentialAfrica’s Agric potential• Why is African agric struggling?Why is African agric struggling?• Resource-based African Dev Strategy(RADS)Resource-based African Dev Strategy(RADS)• NEPAD and Spatial Development ProgrammesNEPAD and Spatial Development Programmes• Applications of SDPApplications of SDP• Improving Governance in the Natural Resource SectorImproving Governance in the Natural Resource Sector• Implications for African LDC Growth & DevelopmentImplications for African LDC Growth & Development• How Zimbabwe Agriculture can benefit from RADSHow Zimbabwe Agriculture can benefit from RADS• The role for Development Foundation for ZimbabweThe role for Development Foundation for Zimbabwe


RADSRADS

1.1. Resource-basedResource-based exporter of exporter of agric & agriagric & agri--based commodities (cocoa, cotton, fruit & based commodities (cocoa, cotton, fruit & juices, sugar, grains, wood & paper/pulp, juices, sugar, grains, wood & paper/pulp, wool, meat, fish, etc.); wool, meat, fish, etc.);

2.2. Resource-based exporter of Resource-based exporter of minerals/metals (oil & gas, gold, coal, iron minerals/metals (oil & gas, gold, coal, iron ore & ferro-alloys, bauxite/aluminium, ore & ferro-alloys, bauxite/aluminium, copper, diamonds, etc.);copper, diamonds, etc.);

3.3. Insignificant exporter of manufactured Insignificant exporter of manufactured goods; and goods; and

4.4. Very weak HR base (skills) except for a few Very weak HR base (skills) except for a few niche competencies.niche competencies.

AfricaAfricaStart from what we are as a Start from what we are as a

Continent!Continent!


RADSRADS

Africa’s Natural ResourcesAfrica’s Natural Resources• Agriculture

– Contributes 40% of African GDP, but largest user of scarce water– Provides livelihood for 60% of population;– But, agri-commodities exported without processing (beneficiation)

• Minerals– World’s top producer of numerous mineral commodities;– Has world’s greatest resources of many more;– But exported as ores, concs, metals: Need > beneficiation.

• Energy– Significant fossil fuels (oil, gas and coal) – Large biomass and bio-fuels potential (ethanol, bio-diesel)– Massive hydro-electric potential (Inga 45GW, Congo River 200GW)

• Forestry– 22% of African land is forested (650m hectares= 17% of world total);– Deforestation: Africa’s net change highest globally = -0.78% p.a;– Huge silviculture potential, but exported as logs/chips: need > bene.

• Fishing– Decline in catch rate (international poaching! Over-harvesting);– 68% of marine protected areas under threat;– Aquaculture/mariculture still nascent (large potential)

• Tourism– Major potential (world’s greatest diversity: culture, flora, fauna,

geomorphology) – Increasingly important source of livelihood


RADSRADS

•Agricultural•Mineral•Forestry•Tourism•Fishing/Aquaculture•Energy (coal/gas & HEP)

Thus, Africa’s short to medium term potential lies in our natural comparative natural comparative

advantage:advantage: Namely, resource & resource-based industries (provide a competitive platform for finished

products in the longer term, and immediate market for resource inputs industries)

Raw Mat. - Int. Product - Semi-Manufacture - FabricatedRaw Mat. - Int. Product - Semi-Manufacture - Fabricated

capital Skills/HRD technology R&D marketing

energy logistics services etc…

FinishedHigh-ValueProducts

However, with >value-addition other factors determine competitiveness!


RADSRADS

Current Potential and Priority Areas for Zimbabwe’s Economic Development

• Agriculture

• Mining

• Energy

• Manufacturing

• Tourism


RADSRADS

Current Constraints to Zimbabwe’s Economic Recovery

• Low savings and investment• Banking system not fully globally

accepted = high transaction costs• Distorted and temporary monetary system• Restricted global markets access due to

political situation• Skills gap due to brain drain and

maintenance of quality of education


RADSRADS

Prospects for Diaspora participation in Economic Recovery

• More systematic inflow of Diaspora savings and investment – Incentives

• Skills repatriation and reintegration• Technology transfer to replace outdated and obsolete

plant, and for new ventures• Promotion of Zimbabwe’s products/services on global

markets, e.g., tourism• Frog leap certain high potential industries/sectors to

global best practice standards– Organic agriculture and value-added products– Renewable energy and general green economy– Refurbish the schools and offer services to the region

• Facilitate full participation of Zimbabwe in regional and multi-lateral development support programmes


RADSRADS

• The bulk of JRCs (Junior Resource Companies) operating in The bulk of JRCs (Junior Resource Companies) operating in Africa are from Europe and its settler colonies (Canada, US, Oz) Africa are from Europe and its settler colonies (Canada, US, Oz) which poses problems of political sustainability;which poses problems of political sustainability;

• Need to facilitate the growth of indigenous exploration Need to facilitate the growth of indigenous exploration companies (JRCs) to build local buy-in & legitimacy;companies (JRCs) to build local buy-in & legitimacy;

• Possible PRC-African JRC exploration partnerships?Possible PRC-African JRC exploration partnerships?• Soquem (mineral DFI) in Canada successfully facilitated the Soquem (mineral DFI) in Canada successfully facilitated the

growth of French-speaking JRCs in Quebec from 1965, by growth of French-speaking JRCs in Quebec from 1965, by identifying potential targets and taking up to 49% of the identifying potential targets and taking up to 49% of the risk/equity- risk/equity-

• AfDB has shown willingness to establish African Soquem to AfDB has shown willingness to establish African Soquem to share risk and nurture local participation in mineral share risk and nurture local participation in mineral development? development?

• Dev Banks and DFIs should target indigenous investment into Dev Banks and DFIs should target indigenous investment into mining inputs (supplier) sector;mining inputs (supplier) sector;

Growing African JRCsGrowing African JRCs


RADSRADS

African FDI inflows

Data Source: UNCTAD- World Investment Report 2005


RADSRADS

Africa has significantAfrica has significantAgri-potentialAgri-potential


RADSRADS

Withdrawals by sector

Region Agriculture Communities Industries Total As % of total

% of internal resources

x 10 6 m³/yr x 10 6 m³/yr x 10 6 m³/yr x 10 6 m³/yr % %

Northern 65 000 5 500 5 800 76 300 50.9 152.6

(85%) (7%) 18%) (100 %) Sudano-Sahelian 22 600 1 200 300 24 100 16.1 14.2

(94%) (5%) (1%) (100%) Gulf of Guinea 3 800 1 600 700 6 100 4.1 0.6

(62%) (26%) (12%) (100%) Central 600 600 200 1 400 0.9 0.1

(43%) (43%) (14%) (100%) Eastern 5 400 900 200 6 500 4.3 2.5

(83%) (14%) (3%) (100%) Southern 14 100 3 000 1 800 18 900 12.6 6.9

(75%) (16%) (9%) (100%) Total 127 900 13 000 9 020 149 920 100 0 3.8

(85%) (9%) (6%) (100%) Source: FAO

And water potential…And water potential…(except for North Africa)(except for North Africa)


RADSRADS

Water ScarcityWater Scarcity

However, much of Africa’s water resources are difficult to access!

Realisation of water potential will require Realisation of water potential will require large investments in water infrastructure large investments in water infrastructure


RADSRADS

Although water resources are large, by 2025 availability/cap. will be under stress in most African states!


RADSRADS

Agri-potential: Possible repeat of Agri-potential: Possible repeat of Brazil's soya success?Brazil's soya success?

Brazil Soy Boom replicable?


RADSRADS

However, the African “Green However, the African “Green Revolution” failed to happen?Revolution” failed to happen?


RADSRADS

African agricultural growth is still based on African agricultural growth is still based on area expansion (deforestation)…area expansion (deforestation)…Rather than intensification!Rather than intensification!

??


RADSRADS

FAO Index of Net Food Output per Capita, 1961-2000

80

90

100

110

120

130

140

150

160

World E SE Asia South Asia Sub-Sahara

And, African food output/capita And, African food output/capita has been falling…has been falling…


RADSRADS

Causing Africa to become a net Causing Africa to become a net agri-importer!agri-importer!


RADSRADS

Although some agri-exports have grown:

Commodity African Exports 2005

(kt)

% World Exports

2005

% Growth 1995-2005

maize 2308 3% -1%

sorghum 80 1% -77%

sugar 6 6% -3%

cocao 2073 71% 52%

coffee 642 12% -6%

tea 430 26% 35%

cotton 306 23% 45%


RADSRADS

Average annual nutrient depletion (NPK) 1993-95

Fertilizer application rates (1997)

Source: FAOSTAT 1999.

Compiled by Stan Wood, IFPRI

kg NPK per hectare

0 10 20 50 100no data

But, nutrients are being rapidly depleted…But, nutrients are being rapidly depleted…


RADSRADS

Due to the lowest fertiliser useDue to the lowest fertiliser use in the world! in the world!

Africa <10% Global Average!

Regional Fertiliser Use (kg/ha)Regional Fertiliser Use (kg/ha)


RADSRADS

Agri-mineral deposits (ex- gas/coal & K)

Yet Africa has abundant known fertiliser minerals!

Nitrogen sources (oil/gas & coal) &

K resources

But, generally unexploited, mainly due to severe logistics constraints


RADSRADS

Resulting in the the lowest Global Value of Agricultural Crops/Ha

Source: FAOSTAT 1999.

0 150 250 350 450 600 1000 No data

1989-91 US$/Ha1989-91 US$/Ha


RADSRADS

Africa also has important forestry Africa also has important forestry production, and large potential.production, and large potential.

But much of it is logging, not sustainable… Region Industrial round

wood production (million m3)

Product production (million m3 EQ)

Product consumption (million m3 EQ)

1996 2010 Annual growth



Africa 68 84 1.5% 61 74 1.4% 35 37 0.6%Asia 280 421 3.0% 334 479 2.6% 510 653 2.1%Oceania 41 54 1.9% 23 39 3.8% 18 28 3.3%Europe 370 502 2.2% 368 509 2.4% 347 469 2.4%North America

600 658 0.7% 585 639 0.7% 499 589 0.8%

South America

130 153 1.2% 120 131 0.7% 80 97 1.4%

World total

1490 1872 1.7% 1490 1872 1.7% 1490 1872 1.7%

Notes: Product production and consumption have been converted to their roundwood equivalents (m3 EQ) to be compatible with roundwood production and potential figures. Growth rates shown are growth over the period 1996 - 2010. (source: FAO)


RADSRADS

Desertification is spreading…

Global warming, >climate Global warming, >climate variability & over-usage pose variability & over-usage pose frightening threats to African frightening threats to African

agriculture: agriculture: Alternative Alternative livelihoods are needed!livelihoods are needed!


RADSRADS

Agriculture should be the principal driver of African development

Why is agriculture struggling?Why is agriculture struggling?

–Prices/subsidies/Doha…Prices/subsidies/Doha…–Access to finance (collateral/title) Access to finance (collateral/title) –Access to inputs (Access to inputs (Infrastructure)Infrastructure)–Access to markets (Access to markets (Infrastructure)Infrastructure)–Information (extension services)Information (extension services)Infrastructure is a necessary, but Infrastructure is a necessary, but not exclusive, enabling factor!not exclusive, enabling factor!


RADSRADS

Subsidies to Agriculturedepress agri-commodity prices


RADSRADS

Thus the demand boom has Thus the demand boom has disproportionately increased mineral prices!disproportionately increased mineral prices!

(also lower mineral supply elasticity)

The prices of metals have increased spectacularly, whilst

agri-commodities have languished…

Due to:• Market distortions (agri-subsidies)• High mineral supply inelasticity (windfall rents)


RADSRADS

•Africa has the world’s highest relative logistics costs (poor infrastructure);•Africa is the highest continent (few navigable rivers), and•93% of Africa is in the tropics (ITCZ, high ppt): >cost of infrastructure provision and O&M;•Incoherent European balkanisation resulted in many African states being landlocked;•Africa has only 10% of land within 100km of coast (cf. 18% OECD & 27% Latin America) and•Only 21% of its people live within 100km of coast (cf. 69% OECD & 42% Latin America);

Africa’s potential could be realised through integrated Development Corridors (not a neo-

colonial “scramble for resources”)

But this huge commodities potential is But this huge commodities potential is critically constrained by poor critically constrained by poor

infrastructureinfrastructure


RADSRADS

Insurance and freight import values Insurance and freight import values for selected groups of countriesfor selected groups of countries

Freight & insurance as a % of costFreight & insurance as a % of cost 1985 1990 1995 1997

World totalWorld total 4.64.6 5.55.5 4.44.4 4.14.1Developed market economy countries 3.8 4.2 3.5 3.4

Developing countries total: of which: 7.7 11.2 7.4 6.5

AfricaAfrica 11.311.3 10.610.6 11.311.3 1010America 6.7 12.8 6.4 5.6

Asia 7.7 11.2 7.4 6.5

Landlocked Africa: 14.8 15.8 10.7 ..

East Africa 17.9 20.2 16.7 14.6

Southern Africa 12.5 11.5 9.9 ..

West Africa 30 30.2 24.6 ..

Least developed countries 13.8 14.6 12.5Source: UNCTAD

Africa’s logistics costs ~250% global Africa’s logistics costs ~250% global average!average!


RADSRADS

Resource-based African Development Resource-based African Development Strategy:Strategy:

4 sub-strategiesAgric,

Forestry,Mining

ResourceProcessing Refining

Inter-mediate products

Fabri-cation

Resource Capital Goods & Resource Capital Goods & Services (generic tech)Services (generic tech)

Lateral Migration into Lateral Migration into Unrelated knowledge-Unrelated knowledge-based Industriesbased Industries

eg: process controleg: process controlconstruction construction equipment,equipment,atmospheric control,atmospheric control,pumping, materials pumping, materials handling, etc, etc….handling, etc, etc….

Enhance resource-tech (HRD, R&D) capacity


RADSRADS

Enhance resource-tech (HRD, R&D) capacity

Mining,Agric,

Forestry

ResourceProcessing Refining

Inter-mediate products

Fabri-cation

Resource Capital Goods & Resource Capital Goods & Services (generic tech)Services (generic tech)

Lateral Migration into Lateral Migration into Unrelated Hitech Unrelated Hitech IndustriesIndustries

eg: process controleg: process controlconstruction construction equipment,equipment,atmospheric control,atmospheric control,pumping, materials pumping, materials handling, etc, etc….handling, etc, etc….

Strategy 1: Beneficiation (RBI)Strategy 1: Beneficiation (RBI)

Strategy 2: Resource InputsStrategy 2: Resource Inputs

Strategy 3: Lateral MigrationStrategy 3: Lateral Migration

Resource-based African Development Resource-based African Development Strategy:Strategy:

4 sub-strategies


RADSRADS

Maghreb Coastal

Red Sea - Nile

Djibouti

Mombasa

Madagascar Bas Congo

Libreville Lomie

Niger: Dakar –Port Harcourt

ConakryBuchanan

Gulf of GuineaCoastal

SekondiOugadougou

Douala

Current SDIsRSDIP

NEPAD SDP: 1st Pass

Strategy 4:Strategy 4:Resource-Based Development Corridors Resource-Based Development Corridors

(Nepad SDPs)(Nepad SDPs)

Strategy 1: Resource Beneficiation (RBI)Strategy 1: Resource Beneficiation (RBI)Strategy 2: Resource Inputs IndustriesStrategy 2: Resource Inputs IndustriesStrategy 3: Lateral Migration of Knowledge Strategy 3: Lateral Migration of Knowledge

intensive (inputs) Industriesintensive (inputs) IndustriesStrategy 4: Integration: Resource-Based Strategy 4: Integration: Resource-Based

Development Corridors (Nepad SDPs)Development Corridors (Nepad SDPs)


RADSRADS

Spatial Development Spatial Development InitiativesInitiatives

(Nepad SDP)(Nepad SDP)


RADSRADS

Sharing of Best Practices in Southern Africa SDIs/Dev.Corridors

Based on Based on UNREALISED UNREALISED economic potentialeconomic potential


RADSRADS

BASIC DC METHODOLOGY: KEY ASPECTSBASIC DC METHODOLOGY: KEY ASPECTS

• Inherent economic potential: Natural resources (agric& mineral);

• Configuration of investments to ensure infrastructure viability through sustainable revenue streams;

• Crowding-in of private sector investment;• Promotes PPPs where feasible;• Secure political commitment (Govts) and

provide the requisite conducive environment;• Ensure rapid planning and delivery projects

and programmes (momentum).• Ensure densification: open-access, linkages

and value-addition


RADSRADS

infrastructure needs

est. of sustainable infra

SDP methodology:SDP methodology:SynchronousSynchronous

INVESTMENT CONFIGURATIONINVESTMENT CONFIGURATION

Viable Viable resource resource

investment investment projectsprojects

DimensionDimensionrequisite requisite

infrastructuinfrastructure with re with revenue revenue streamstream

Addresses 4market failures:1)Infra econ-of-scale2)Sync users (time)3)Political borders4)Information/data


RADSRADS

• Addresses the urgent need for effective investment & capacity prioritisationinvestment & capacity prioritisation based on sound economic rationale;

• Links and synchronises private sectorprivate sector economic investment project opportunities with key infrastructure projectsinfrastructure projects;

• Promotes the realisation of wider developmentwider development potential (densification) catalysed by infrastructure provision and anchor investments;

• Provides spatial focus for strategies to promote regional economic integrationregional economic integration & development.

• However, it is onlyHowever, it is only oneone component of an component of an integrated growth & development strategy!integrated growth & development strategy! (focus on “low-hanging-fruit” to catalyse development)(focus on “low-hanging-fruit” to catalyse development)

THE NEPAD SDP APPROACH: What value does it add?


RADSRADS

Due to the global market distortion of First Due to the global market distortion of First World agri-subsidies (Doha), mineral-based World agri-subsidies (Doha), mineral-based opportunities are generally the only ones with opportunities are generally the only ones with requisite rentsrequisite rents to pay for the provision of to pay for the provision of costly infrastructure (transport & energy).costly infrastructure (transport & energy).For this reason the indicative NEPAD SDP For this reason the indicative NEPAD SDP “anchor” projects tend to be “anchor” projects tend to be minerals/energyminerals/energy based which establish infrastructure to based which establish infrastructure to underpin the viability of projects in other, underpin the viability of projects in other, sustainable, sectors: “densification”).sustainable, sectors: “densification”).

Underlying NEPAD SDP DriversUnderlying NEPAD SDP Drivers

The NEPAD SDP goes beyond the “colonial” The NEPAD SDP goes beyond the “colonial” paradigm (resources to coast) to paradigm (resources to coast) to integrated integrated growth & developmentgrowth & development using resources to using resources to catalyze the processcatalyze the process


RADSRADS

APPLICATION OF APPLICATION OF THE SDI METHODOLOGY:THE SDI METHODOLOGY:

SOME EXAMPLESSOME EXAMPLES


RADSRADS

MAPUTOMAPUTO

Mature SDP Example: Mature SDP Example: The Maputo Development The Maputo Development

CorridorCorridor

Pande-Secunda Gas line. PPP Sasol completed

Coal-based Power Station2 transmission lines to

Matola completed

Liquid Fuels & Petro-chemicals: Sasol

Al smelter 500ktpaBHPB completed

Joburg-Maputo HighwayPPP- BOT completed

Port of Matola/MaputoUpgrades, PPP

Joburg to Maputo Railway line: Upgrade

GA

UTE

NG

GA

UTE

NG


RADSRADS

MAPUTOMAPUTO

Mature SDP Example: Mature SDP Example: The Maputo Development The Maputo Development

CorridorCorridor

Pande-Secunda Gas line. PPP Sasol completed

Coal-based Power Station2 transmission lines to

Matola completed

Liquid Fuels & Petro-chemicals: Sasol

Al smelter 500ktpaBHPB completed

Joburg-Maputo HighwayPPP- BOT completed

Port of Matola/MaputoUpgrades, PPP

Joburg to Maputo Railway line: Upgrade

GA

UTE

NG

GA

UTE

NG

Major investments to date: Major investments to date: >$5bn>$5bn

New MDC Potential Projects:New MDC Potential Projects:• Greater Limpopo Trans-frontier Park Greater Limpopo Trans-frontier Park

(underway)(underway) Mozal III (Al: $1bn) Mozal III (Al: $1bn) • Corridor Sands (Ti & Fe: >$0.3bn) Corridor Sands (Ti & Fe: >$0.3bn) • Maputo Metallurgical Complex (MMC) (Fe & Maputo Metallurgical Complex (MMC) (Fe &

Steel: >$1bn)Steel: >$1bn)• MMC (Ti & Fe: $0.3mn)MMC (Ti & Fe: $0.3mn)• Fertiliser complex (Phos & Nitrogen)Fertiliser complex (Phos & Nitrogen)• Chlor-alkali complex (Cl, TiOChlor-alkali complex (Cl, TiO22, NaOH), NaOH)• Numerous mega-project inputs industries Numerous mega-project inputs industries • Tourism Investments (Cluster: >$0.3bn)Tourism Investments (Cluster: >$0.3bn)


RADSRADS

High Cu Magnetitedumps > 300 MT

Magnetite (>Cu)dump upgrading

plant

(Ti/V) MagnetiteSep. & conc. plant• magnetite• ilmenite

Rail

Slurry pipeline

Pande Gas Pipeline

Gas Connector

RailwayMajor RoadDuvhaPower LinesPande GasPipeline

MDC phase II: MDC phase II: Maputo Metallurgical ComplexMaputo Metallurgical Complex

Other Potential:Ilmenite smelter Ti/Fe

Fertiliser plant N/PChlor-alkali plant Na/Cl

Fe pelletising plant

MMC:MMC:Iron (DRI) &Iron (DRI) &Steel PlantSteel Plant

Fe exports

Elec transmission

Possible Ti/Fe From Chibuto


RADSRADS

Under implementation-Under implementation-The Zambezi Valley DevelopmentThe Zambezi Valley Development

Mt Mulanje bauxite

Cabora BassaHEP

Mpande Uncua HEP

Sena Sugar

Mt Muambe Fe

Moatize coking and steam coal (CVRD):

Sena Rail Rehab

Beira Port Rehab

Moatize Thermal Power Station

Elec trans-mission

Potential Al Smelter

Possible BOF Muambe Fe ore & coking coal

Alternative bulk (coal) rail route

Rehab of peasant

cotton (ex-prazos)


RADSRADSAnchor & “cluster”

Stranded investment

Stranded investment

Anchor & “cluster”

Agri-node & “cluster”

feed

er

“TRUNK” Infrastructure: PPP

Idealised DC ConfigurationIdealised DC Configuration

Problem feeder

Problem feeder

“DENSIFICATION”DENSIFICATION”Feeders often Feeders often

need to be funded need to be funded thru’ fiscus/grantthru’ fiscus/grant

DC logistics “catchment”


RADSRADS

NEPAD SD PROGRAMMEPortfolio of Possible SDPs

Region No. SDP Countries

North Africa 1 Maghreb Coastal Morroco, Algeria, Tunisia, Libya, Egypt

2 Red Sea-Nile Egypt, Sudan

West Africa 3 Niger (Dakar-Port Harcourt)

Senegal, Gambia, Mali, Niger, Nigeria

4 Conakry-Buchanan Guinea, Liberia, Cote D’ivoire

5 Sekondi/Takoradi-Ouagadougou

Ghana, Burkina Faso

6 Gulf of Guinea Nigeria, Benin, Togo, Ghana, Cote D’Ivoire, Liberia

Central Africa 7 Douala-N’djamena Cameroon, Chad

8 Libreville-Lomie Gabon, Republic of Congo, Cameroon

9 Bas-Congo DRC, Republic of Congo, Angola

East Africa 10 Mombasa Kenya, Uganda, DRC, Sudan

11 Djibouti Djibouti, Ethiopia, (Kenya)

Southern Africa 12 Madagascar Madagascar


RADSRADS

Corridor

Solid Mineral Potential

Agricultural Potential Projects Logistics Power

Clustering Potential

Regional Integration

Data Availability Score

Bas Congo SDI (current) 30 5 20 15 20 30 20 10 150

Maghreb Coastal 15 5 15 15 20 30 30 10 140

Niger (Dakar - Pt Harcourt) 15 15 23 15 13 20 30 5 136

Conakry-Buchanan 30 10 23 13 13 10 20 5 124

Gulf of Guinea- coastal 0 5 25 15 18 20 30 5 118

Mombasa 15 10 20 8 13 10 30 5 111

Madagascar 30 10 23 13 15 10 0 10 111

Libreville-Lome 15 5 18 15 13 20 10 5 101

Douala- N'djamena 30 5 18 8 13 10 10 5 99

Red Sea-Nile 0 5 5 15 13 10 10 10 68

Djibouti 0 10 3 15 8 0 20 5 61

Sekondi-Takoradi 0 10 3 15 13 0 0 10 51

SELECTION CRITERIA & RANKING

But selection more likely to be through buy-in by DC footprint states!


RADSRADS

Maghreb Coastal

Red Sea - Nile

Djibouti

Mombasa

Madagascar Bas Congo

Libreville Lomie

Niger: Dakar –Port Harcourt

ConakryBuchanan

Gulf of GuineaCoastal

SekondiOugadougou

Douala

NEPAD indicative Spatial Development

Program (SDP) First Pass!

Current SDIsRSDIP

NEPAD SDP: 1st Pass


RADSRADS

POTENTIAL SDPs IN POTENTIAL SDPs IN THE 4 REGIONSTHE 4 REGIONS


RADSRADS

Maghreb Coastal SDPMaghreb Coastal SDPCountries: Morocco, Algeria, Tunisia, Libya, EgyptCountries: Morocco, Algeria, Tunisia, Libya, EgyptAnchors: Oil/gas & PC industry, iron & steel (gas), Anchors: Oil/gas & PC industry, iron & steel (gas), tourism (coastal & heritage), phos & fertilisers, agric, tourism (coastal & heritage), phos & fertilisers, agric, fishing & aquaculture, gen. industry (HCs)fishing & aquaculture, gen. industry (HCs)Infra: HC grid, elec grid, coastal highway, cabotageInfra: HC grid, elec grid, coastal highway, cabotage


RADSRADS

Niger SDP:Niger SDP:Countries: Senegal/Gambia, Mali, Niger, NigeriaCountries: Senegal/Gambia, Mali, Niger, Nigeria

Anchors: Resource: Fe (Faleme) & iron/steel, Au Anchors: Resource: Fe (Faleme) & iron/steel, Au (Loulou), U (Niger), Oil/gas (Delta), GTL (Escravos), (Loulou), U (Niger), Oil/gas (Delta), GTL (Escravos), Al (Alscon), Ti (Dakar), Phos (Tiaba), agriculture Al (Alscon), Ti (Dakar), Phos (Tiaba), agriculture (cotton), etc.(cotton), etc.

Infra: riverine transport , rail to Dakar (??), Ore Infra: riverine transport , rail to Dakar (??), Ore terminal (~Dakar), power (elec grid), roads upgradeterminal (~Dakar), power (elec grid), roads upgrade


RADSRADS

Conakry-BuchananConakry-BuchananCountries: Guinea-Liberia (Cote d’Ivoire)Countries: Guinea-Liberia (Cote d’Ivoire)Anchors: Fe (Nimba) & iron/steel (gas line?), Al Anchors: Fe (Nimba) & iron/steel (gas line?), Al (Conakry, Friguia), Au (Siguiri), Ni (Man) & FeNi (Conakry, Friguia), Au (Siguiri), Ni (Man) & FeNi (gas?), agriculture(gas?), agricultureInfra: gas line, rail (ore), elec grid, port upgradeInfra: gas line, rail (ore), elec grid, port upgrade


RADSRADS

Gulf of Guinea Coastal SDPGulf of Guinea Coastal SDPCountries: Nigeria, Benin, Togo, Ghana, Cote Countries: Nigeria, Benin, Togo, Ghana, Cote d’Ivoire, Liberiad’Ivoire, LiberiaAnchors: Oil/gas (Delta & pipeline), GTL, Al (Delta), Anchors: Oil/gas (Delta & pipeline), GTL, Al (Delta), Iron/steel (Sekondi/Takoradi, Buchanan), Mn (Nsuta) Iron/steel (Sekondi/Takoradi, Buchanan), Mn (Nsuta) & FeMn (Sekondi- gas?); tourism (coast, heritage), & FeMn (Sekondi- gas?); tourism (coast, heritage), gen. industry (gas), agriculture (palm oil/carbon), gen. industry (gas), agriculture (palm oil/carbon), fishing & mariculturefishing & maricultureInfra: gas line,, elec grid, ports, cabotage, coastal Infra: gas line,, elec grid, ports, cabotage, coastal highwayhighway


RADSRADS

2 Indicative SDPs: 2 Indicative SDPs: Douala-Douala-N’djamena & Libreville-LomieN’djamena & Libreville-LomieCountries:Countries: Cameroon, Chad, Gabon, (CAR) Cameroon, Chad, Gabon, (CAR)Anchors:Anchors: Oil & Gas, elec/Al, Fe/Steel, Fe-alloys Oil & Gas, elec/Al, Fe/Steel, Fe-alloys (Mn) agric (coffee, et al), fertilisers (NPK), general (Mn) agric (coffee, et al), fertilisers (NPK), general industry (agri-processing), tourism,industry (agri-processing), tourism,Infra:Infra: rail upgr rail upgrades ades & ext., gas pipelines, elec grid, & ext., gas pipelines, elec grid, port upgrade, road network, power plantsport upgrade, road network, power plants


RADSRADS

Bas CongoBas CongoCountries:Countries: Congo Braz, DRC, Angola Congo Braz, DRC, AngolaAnchors:Anchors: Electricity (Inga), oil/gas & PC industry, Mg (P. Noire), Electricity (Inga), oil/gas & PC industry, Mg (P. Noire), Al (Al (Matadi), phos & fertilisers, base metals, construction Matadi), phos & fertilisers, base metals, construction (lmst/cement), agric(lmst/cement), agric (cane et al), fishing & aquaculture, gen. (cane et al), fishing & aquaculture, gen. industry (HCs), tourismindustry (HCs), tourismInfrastructure:Infrastructure: HC grid, elec grid, ports (Banana et al), Congo R. HC grid, elec grid, ports (Banana et al), Congo R. bridge, cabotage, road net.bridge, cabotage, road net.

DRC request to fast-track DRC request to fast-track this SDI (SA-DRC this SDI (SA-DRC

Bilateral, Aug 2007)Bilateral, Aug 2007)Angola & Congo-Braz Angola & Congo-Braz

need to joinneed to join


RADSRADS

Mombasa SDPMombasa SDPCountries:Countries: DRC, Sudan, Uganda, Kenya,Anchors:Anchors: Fe & iron/steel (Kodo), agric (coffee et al), soda ash, phos & fertiliser (NPK), gen. industry (agri-proc), tourism, aquaculture (L.Vic)Infra:Infra: rail upgrade & ext., gas pipeline, elec grid, port upgrade, road net.

Kodo Fe & Sudan gas?

NCTTCA request to NEPAD NCTTCA request to NEPAD SDP & RSDIP to assist in SDP & RSDIP to assist in

transforming into a SDI/DCtransforming into a SDI/DC(Aug 2007)(Aug 2007)


RADSRADS

Central SDI: Dar to Kigali (Kisangani?) RSDIPCentral SDI: Dar to Kigali (Kisangani?) RSDIPCountries:Countries: Tanzania, DRC,Rwanda, Burundi Tanzania, DRC,Rwanda, BurundiAnchors:Anchors: Nickel (Kabanga), Nickel (Kabanga), Gold (Mwanza Au Belt), Ta/Nb (DRC), Gold (Mwanza Au Belt), Ta/Nb (DRC), agriculture & agri-industries, fishing/aquaculture, tourismagriculture & agri-industries, fishing/aquaculture, tourismInfra:Infra: rail upgrade & ext., port upgrade, road net., elec gen & grid rail upgrade & ext., port upgrade, road net., elec gen & grid

Extend to Kisangani?

Current RSDIP Development Corridor (SDI)Current RSDIP Development Corridor (SDI)


RADSRADS

TAZARA SDPTAZARA SDPCountries: Tanzania, Zambia (DRC, Malawi)Countries: Tanzania, Zambia (DRC, Malawi)Anchors: Cu/Co (Copper-belt), Fe/steel (Liganga), Coal (Ruhuhu-Anchors: Cu/Co (Copper-belt), Fe/steel (Liganga), Coal (Ruhuhu-Ketawaka),Ta/Nb (Mbeya) Fe/C (Njombe); Forestry P&P (Mbeya), Ketawaka),Ta/Nb (Mbeya) Fe/C (Njombe); Forestry P&P (Mbeya), argic & agri-proc (Iringa, Mbeya & Mkushi highlands), tourism argic & agri-proc (Iringa, Mbeya & Mkushi highlands), tourism (Selous, Ruaha, Luangwa), mineral & agri-processing & inputs(Selous, Ruaha, Luangwa), mineral & agri-processing & inputsInfra: rail, road network, energy grid, rail & pipelines rehab,Infra: rail, road network, energy grid, rail & pipelines rehab,


RADSRADS

East-West SDPs: Critical for African integration!East-West SDPs: Critical for African integration!

GMRA High min potential

?

USGSGMRA

High Mineral Potential

Zones

WB Trade Study

(Buys et al)


RADSRADS

Inter-African Inter-African SDP?SDP?Great Lakes Great Lakes SDP?SDP?Countries: Zambia, Countries: Zambia, Mozambique Malawi, Mozambique Malawi, Tanzania, DRC, Tanzania, DRC, Burundi, Rwanda, Burundi, Rwanda, Uganda, S.SudanUganda, S.SudanAnchors: Generic Anchors: Generic development potential, development potential, particularly inter-African particularly inter-African trade. trade. Tourism (Gt Lakes)Tourism (Gt Lakes)Infra: waterways, Infra: waterways, road,rail, port upgrades. road,rail, port upgrades. Note

This was NOT assessed in the indicative SDP scoping study


RADSRADS

Madagascar SDPMadagascar SDPCountries: MadagascarCountries: MadagascarAnchors: FeNi, Cr (FeCr?) & stainless steel?, Ti/Zr Anchors: FeNi, Cr (FeCr?) & stainless steel?, Ti/Zr (Ti slag & Fe, pigment?), Al (alumina?), Forestry (Ti slag & Fe, pigment?), Al (alumina?), Forestry (P&P?), agric (vanilla et al), gemstones (P&P?), agric (vanilla et al), gemstones (jewellery?), tourism, (jewellery?), tourism, Infra: rail upgrade & ext., elec grid, port upgrades, Infra: rail upgrade & ext., elec grid, port upgrades, road net (S.coastal).road net (S.coastal).


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The “Resources Curse”The “Resources Curse”Improving Governance in the Natural Improving Governance in the Natural

Resource SectorResource SectorNew developmentsNew developments

• African Peer Review Mechanism (APRM) • EITI- Extractive Industries Transparency

Initiative• Equator Banks Principles• Governance of “Conflict Minerals”• Standards/monitoring• Windfall Rent Management• Regional authorities: power pools; river

catchment bodies, DCs, customs/currency unions, etc.


RADSRADS

APRMAPRM• The African Peer Review Mechanism (APRM) is a

mutually agreed instrument voluntarily acceded to by the member states of the African Union (AU) as a self-monitoring mechanism.

• The mandate of the APRM is to encourage conformity in regard to political, economic and corporate governance values, codes and standards, among African countries and the objectives in socio-economic development within Nepad.

• 25 countries have acceded (APRM MOU):– Algeria, Angola, Cameroon, Republic of Congo, Egypt,

Ethiopia, Gabon, Benin, Burkina Faso, Mali, Mauritius, Senegal, Tanzania, Lesotho, Sierra Leone, Malawi, Ghana, Kenya, Mozambique, Nigeria, Rwanda, South Africa, Sudan, Uganda and Zambia.

• The APRM is not meant to exclude or punish countries. There is no conditionality attached to the mechanism.


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• EITI creates transparency over the EITI creates transparency over the flow of moneyflow of money from oil, gas and mining companies to the from oil, gas and mining companies to the governments of the countries in which they operate governments of the countries in which they operate (Launched at WSSD Joburg in 2002)(Launched at WSSD Joburg in 2002)• The objective is to increase accountability over the The objective is to increase accountability over the use of natural resource wealth to ensure it is a use of natural resource wealth to ensure it is a blessing and not a curse.blessing and not a curse.• Country led: Brings together governments, Country led: Brings together governments, companies, NGOs, investors, international institutionscompanies, NGOs, investors, international institutions• > 25 countries implementing> 25 countries implementing• However, perceived as “rehab” facility- Needs However, perceived as “rehab” facility- Needs support from low-risk extractive states like SA, support from low-risk extractive states like SA, Botswana, Oz, Norway, Canada, etc.Botswana, Oz, Norway, Canada, etc.• COST- construction/infra “EITI” launched ’07 (UK)COST- construction/infra “EITI” launched ’07 (UK)


RADSRADS

• The "Equator Principles“: A financial industry benchmark for determining, assessing and managing social & environmental risk in project financing

• The Equator Principles Financial Institutions (EPFIs) have adopted the Principles in order to ensure that the projects they finance are developed in a manner that is socially responsible and reflect sound environmental management practices.

• Over 50 Banks have joined (mainly 1st World).• These Principles are intended to serve as a common baseline

and framework for the implementation by each EPFI of its own internal social and environmental policies

• Disadvantages: Mainly 1Disadvantages: Mainly 1stst World driven (WB/IFC & NGOs) and World driven (WB/IFC & NGOs) and 11stst World concerns (don’t look at the developmental impact) World concerns (don’t look at the developmental impact)


RADSRADS

– Minerals used to finance civil wars & crime Minerals used to finance civil wars & crime need governance systems, particularly need governance systems, particularly precious & semi-precious minerals targeting precious & semi-precious minerals targeting the “fashion” market.the “fashion” market.

– Diamonds:Diamonds:• The Kimberley Process Certification Scheme The Kimberley Process Certification Scheme

(KPCS) is a process designed to certify the origin (KPCS) is a process designed to certify the origin of diamonds from sources which are free of of diamonds from sources which are free of conflict. The certification scheme aims at conflict. The certification scheme aims at preventing "conflict diamonds" (also known as preventing "conflict diamonds" (also known as "blood diamonds") from entering the mainstream "blood diamonds") from entering the mainstream rough diamond market.rough diamond market.

– Other Minerals: Other Minerals: Regulate gold (fashion Regulate gold (fashion market), coltan, etc. in a similar way?market), coltan, etc. in a similar way?

Governance of “Conflict Minerals”Governance of “Conflict Minerals”


RADSRADS

Managing Windfall RentsManaging Windfall Rents• Windfall mineral rents need to be

equitably appropriated (rate of return tax regime, as per oil & gas sector).

• However, large forex inflows could distort the economy (Dutch Disease). Need a method of inflows management:

• “Stabilisation” or “Future” Funds for investment in long-term African infrastructure (c.f. Pan-African Infra Fund: PAIDF)?


RADSRADS

e.g. Norwegian Global Fund• Oil & gas taxes are invested in a global portfolio and earnings are used by government for current expenditure.

Source: Fridjof Barents, UNCTAD 2006

For African countries the windfall earnings could be invested For African countries the windfall earnings could be invested in an offshore fund (PAIDF?) and committed to long-term in an offshore fund (PAIDF?) and committed to long-term

infrastructure investment, thereby diluting currency infrastructure investment, thereby diluting currency appreciation (Dutch Disease) and improving national appreciation (Dutch Disease) and improving national

competitiveness.competitiveness.


RADSRADS

ProcessingProcessing IntermediatesIntermediates(feedstocks)(feedstocks)

ResourcesResourcesExploitationExploitation

Exploitation capital goods: e.g. plant, equipment,

after-market, etc.

.

Exploitation services:

e.g. financial, technical, consumables, logistics,

energy, skills, etc.

Processing capital goods

Processing services

Intermediatescapital goods

Intermediatesservices

Infrastructure: transport, energy, skills (SDP)

Other Sectors & areas (agri, tourism, etc.)

Feedstocks & Tech. (bene.)

Manufacturing (cap goods)

Resource-inputs key to diversification (e.g. Nordics)

BEYOND COMMODITIES?BEYOND COMMODITIES?Use Asian resource demand to kick-start an

African Resource-based Development Strategy“RADS”

RADS RADS Recap:Recap:


RADSRADS

Way ForwardWay Forward• Invest in African resource-knowledge Invest in African resource-knowledge infrastructure (geosurvey- AfDB, PRC?) and infrastructure (geosurvey- AfDB, PRC?) and facilitate African JRCs (AfDB- Exploration DFI?)facilitate African JRCs (AfDB- Exploration DFI?)• Update African mineral regimes (UNECA ISG)Update African mineral regimes (UNECA ISG)• Launch 1 or 2 pilot, high impact, DCs as Launch 1 or 2 pilot, high impact, DCs as learning programmeslearning programmes• Use DCs to build institutional capacity for Use DCs to build institutional capacity for areas with high economic potential?areas with high economic potential?• Collective self-reliance between neighbouring Collective self-reliance between neighbouring states (DCs, X-border authorities & RECs)?states (DCs, X-border authorities & RECs)?• Support from multi-laterals (AfDB?) on Support from multi-laterals (AfDB?) on negotiating large investments?negotiating large investments?• Deepen and widen continental and Deepen and widen continental and international protocols (APRM, SHE, EITI, international protocols (APRM, SHE, EITI, COST, Africa-PRC?, etc.)?COST, Africa-PRC?, etc.)?


RADSRADS

e.g. an Africa-PRC “Compact” “Compact” for Growth & Development?

• Configure a mutual benefit “compact” of intent between the AU/AfDB and PRC that “balances” access to resources and markets with:– Infrastructure not only for resource extraction, but also

for integrated development (Nepad SDP concept)– HRD in all the FDI areas– Resource beneficiation before export– Resource inputs (supplier) industries– JVs to develop local capital– Location of consumer products industries for products

destined for African markets (where viable) – (AGOA, EPAs, MGOA?)

– Adherence to codes of conduct (EITI, Equator Banks, SHE codes)

• Establish a joint Africa-PRC investment facilitation & monitoring commission?

ACHIEVABLE??


RADSRADS

Implications for African LDC Growth & Implications for African LDC Growth & Development (UNCTAD)Development (UNCTAD)

• Use resource boom to leverage high rent resources Use resource boom to leverage high rent resources (minerals) to establish infrastructure for high impact (minerals) to establish infrastructure for high impact agriculture, tourism, manufacturing, etc.;agriculture, tourism, manufacturing, etc.;• Ensure equitable state share of resource and windfall Ensure equitable state share of resource and windfall rents (UNECA ISG project);rents (UNECA ISG project);• Focus on unleashing areas of highest economic potential Focus on unleashing areas of highest economic potential (often areas of relative competence) in the short-medium (often areas of relative competence) in the short-medium term (NEPAD SDP);term (NEPAD SDP);• Link requisite infrastructure financing to user (resources) Link requisite infrastructure financing to user (resources) investment (“use or pay”)- PPPs;investment (“use or pay”)- PPPs;• Pool capacity with neighbouring states along high Pool capacity with neighbouring states along high potential DCs to “kick-start” development (low hanging potential DCs to “kick-start” development (low hanging fruit);fruit);• Ensure “densification” (donor agencies?) and realisation Ensure “densification” (donor agencies?) and realisation of collateral opportunities to avoid enclave development;of collateral opportunities to avoid enclave development;• Build x-border economic governance capacityBuild x-border economic governance capacity


RADSRADS

How can Zimbabwe benefit from How can Zimbabwe benefit from RADS and SDIs?RADS and SDIs?

SDP/Dev CORRIDORS ARE the focal point for regional development initiatives. Initially based on transport routes, the corridors are critical to the achievement of the region's economic and political objectives. This is particularly so given that almost half of the SADC Member States are landlocked and require efficient regional transport links for access to the sea.


RADSRADS

Spatial Development InitiativesSpatial Development InitiativesZimbabwe needs to lobby/negotiate for her

rightful participation in:• Development Corridors (DCs) that have

become microcosms of regional integration as manifestations of initiatives targeted as regional development within the framework of Spatial Development Initiatives (SDIs).

• Influence the location of anchor investments in Zimbabwe as a land-locked country;


RADSRADS

Beira & Zambezi Development Corridors Beira & Zambezi Development Corridors

• Initiatives aim to develop an economic region linking Malawi, Mozambique, Zambia and Zimbabwe, anchored to the port of Beira.

• Need to rethink the inland anchor investments to fully take cognizance of what Zimbabwe has to offer

• Key objectives are to re-establish and upgrade the infrastructural linkages inland. Infrastructure development projects include upgrading of Beira port, electricity supply, gas and liquid fuel pipelines; the proposed Harare-Beira toll road, the Harare-Beira railway line upgrade and upgrade of airports.


RADSRADS

Beira/Zambezi Development Corridors Beira/Zambezi Development Corridors (cont.)(cont.)

Implementation of a number of natural resources-based projects include:• Reopening of Moatize coking coalmine• Development of a thermal power station• Agricultural development in Dondo and

Chimoio• Tourism in the Eastern Highlands of

Zimbabwe and the Zambezi ValleyAgain, Zimbabwe could feature more here as

the inland anchor


RADSRADS

Limpopo Development Corridor Limpopo Development Corridor

This initiative by Mozambique, South Africa and Zimbabwe (and ultimately Botswana and Zambia) is spatially focused on the Limpopo river basin. The primary development and investment focus areas are in the agriculture, mining and mineral processing, tourism, and related infrastructure sectors.


RADSRADS

Limpopo Development Corridor Limpopo Development Corridor Cont’d Cont’d

• A programme has been implemented to rehabilitate the irrigation infrastructure and work is underway to re-establish sugar growing and processing activities at Maragra Sugar and at Xinavane Sugar.

• The initiative also aims to establish a nature-based tourism development zone of some 260,000 sq km. This will include the key anchor projects of the Great Limpopo Trans-Frontier Park.


RADSRADS

Potential for Growing Zimbabwe’s Potential for Growing Zimbabwe’s Agriculture?Agriculture?

Setting the Scene: Revitalizing and Setting the Scene: Revitalizing and Increasing commercial investment in Increasing commercial investment in Zimbabwe Agribusiness.Zimbabwe Agribusiness.

Unleashing areas of highest economic Unleashing areas of highest economic potential potential

Information courtesy of Industrial Development Corporation(IDC) , Zimbabwe


RADSRADS

Selected High Potential Selected High Potential IndustriesIndustries

Citrus fruit production and processing About 6000 hectares are under citrus cultivation in Zimbabwe. Citrus fruits grown include grapefruits, lemons, naartijies, nectarines and oranges. Types of oranges grown are in line with what the consumers want, which is a fruit of the right size, colour which must be orange, skin texture and good external and internal qualities.


RADSRADS

Economic Potential Cont’dEconomic Potential Cont’dMushroom production and processing

Potential export markets for Zimbabwean mushroom include Japan, SA, France, Italy, Germany and the USA.

Soya bean production and processing In Zimbabwe Soya beans contribute 30 % of all the cooking oil production while cottonseed contributes 50%. Soya is also a potential bio-diesel feedstock (when food needs have been met)


RADSRADS

Economic Potential Cont’dEconomic Potential Cont’d

Tea and coffee production and processing Tea is one crop that can be grown on a very small scale because of the productivity and its resistance to pests and diseases.


RADSRADS

Economic Potential Cont’dEconomic Potential Cont’dFloriculture

Zimbabwe is the second largest producer in Africa after Kenya and is the fifth producer in the world. There is a potential to expand the industry to three or four times larger and still remain profitable. This is based on the fact that the industry produces the cheapest flowers in Africa due to cost –effective production; the markets for the produce are available.


RADSRADS

Economic Potential Cont’dEconomic Potential Cont’dHoney production and processing

In Makoni District of Manicaland province, there are over 600 registered beekeepers, each with a minimum of four beehives. One beehive can yield 20 litres of honey per harvest. Harvesting is done three times a year for well managed hives. This translates to z$144 million per annum. After harvesting, honey can be further processed into clear syrup.


RADSRADS

Economic Potential Cont’dEconomic Potential Cont’dPoultry production and processing

The industry has a high potential for growth since Zimbabwe is ideally suited to poultry production due to the favourable mild climate that is ideal for chickens and for growing both maize and Soya which are main sources for the industry.

Wheat and Barley production and processing Wheat is the second staple food in Zimbabwe after maize. Barley is used for production of clear beer..


RADSRADS

Economic Potential Cont’dEconomic Potential Cont’dPork production and processing

Pig industry is comprised of both small-scale and large scale pig producers who breed their own pigs and fatten them up to slaughter stage. Zimbabwe has excellent agriculture conditions for the competitive production of pigs.

Dairy production and processing Zimbabwe is the second country after South Africa with an organised dairy industry in Africa.


RADSRADS

The Role of DFZ in Agricultural The Role of DFZ in Agricultural Productivity EnhancementProductivity Enhancement

• Increasing commercial investment along the entire agric value chain

• Supporting infrastructure, farming, and processing, input supply chains (fertiliser, seeds etc)

• Opening/enhancing access to markets (storage, wholesale markets etc)

DFZ must participate in addressing the DFZ must participate in addressing the issuesissues


RADSRADS

What are the issues?What are the issues?• Market LiberalisationMarket Liberalisation-only sustainable interventions are

needed to address market failures.• Producer PricesProducer Prices-increased production requires

incentives i.e. viable producer prices.• PartnershipsPartnerships-true partnership btwn Govt, pvt sector and

international community (FDI).• FinanceFinance-appropriate financing mechanisms.• Research, Training & ExtensionResearch, Training & Extension-experienced agric

entrepreneurs.• Supporting Supporting InfrastructureInfrastructure-Irrigation development, grid-

connected electricity, all weather feeder roads.


RADSRADS

Isn’t It Obvious?Isn’t It Obvious?

Clustering of agribusiness within Corridors reduces costs, improves access to inputs and markets and therefore creates competitive, profitable, rapidly growing agricultural sector and therefore a vibrant economy and a PROSPEROUS PEOPLE.


RADSRADS


RADSRADS

Thank Thank YouYou

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