WEF_GrowAfrica_AnnualReport2014

2013 in Review 2013 in Review
Status on Letters of Intent
Goals
Year 2 – Progress update
In 2013, no further companies directed Letters of Intent to Burkina Faso.
In 2012, 14 companies directed Letters of Intent to Burkina Faso (with 4 more
making reference to working in the country).
African
Cashew
Initiative
(ACi)
Goals
Contribute to increasing competitiveness of cashew
production and processing in Benin, Burkina Faso,
Côte d’Ivoire, Ghana and Mozambique, by:
1. convening investments from corporate partners
(around $21 million);
2. linking processing industry to farmer groups so
processors can source up to 60% of raw cashew
stock directly from farmers or their organisations;
3. utilising matching grant funding to assist privatesector
projects to enhance farmer productivity; and
4. planning to invest around $50 million through
Phase 1 (lasting into 2013) – 50% from private
companies, and potentially $20-$30 million from
2013 to 2015 including 60% from private players.
Year 2 – Progress update
Across all countries:
•¡
271,617 farmers trained since 2009 (around 20%
being women), increasing additional net income by
approximately $18.2 million.
•¡
Introduced Cashew Matching Grant Fund enabling
private-sector partners to design and implement
projects for farmer linkages and improved planting
material.
•¡
16 projects (total investment of $7.86 million) are being
implemented in Burkina Faso, Ghana and Mozambique.
•¡
Improved planting material in Burkina Faso, Ghana
and Mozambique benefiting 74,500 cashew farmers,
with another 48,600 directly benefiting from Matching
Grants.
•¡
Introduced Master Training Programme to develop key
knowledge-holders as trainers in the cashew value
chain.
Competitive
African Cotton
Initiative
(COMPACI)
EBT-Trading
Contribute to improving the livelihoods of
smallholder cotton farmers by:
1. convening investment in the cotton value chain
from corporate partners to train farmers in soil/
water conservation, balanced crop rotation, and
business principles;
2. expanding cotton demand by promoting the
“Cotton made in Africa” brand; and
3. linking smallholders to larger markets by partnering
with the “Better Cotton Initiative”.
Support the production and marketing of all-season
cereal and food crops (maize, cowpea, sesame and
certified seeds) through joint-venture farms at 3 sites
(Koumbo, Kakaole and Bagré Growth Pole), utilising
drip irrigation technology.
•¡
Continuing with strategic investment plans through to
2015.
•¡
In partnership with the Aga Khan Group, reached over
24,000 smallholders to purchase around 33 tonnes of
seed cotton.
•¡
Trained around 21,000 smallholders in 2013.
•¡
Plans underway to invest $1.5 million over 2013-2015 to
reach 25,000 farmers.
•¡
Koumbo and Kakaole farms already operating with
maize, cowpea and sesame, and seed production, with
plans to improve irrigation on these sites.
•¡
Exploring options for a feasibility study to advance
progress on proposed joint venture with Savent Brokers
and smallholder producers of rice, maize, soya and
seeds in Bagré, which has been held up by delays
affecting the overall Bagré Growth Pole project.
AGCO
Contribute to capacity building, knowledge transfer
on the agronomic system, and the intensification of
agriculture and farming mechanisation by:
1. establishing a demonstration farm and training
centre, together with global and local partners,
aimed at large- to small-scale farmers, agriculture
students and local schoolchildren;
2. providing infrastructure and technical support with
mechanisation, storage and livestock systems,
including after-sales services for commercial
smallholders, and emerging and large-scale
farmers; and
3. offering finance solutions and developing leasing
models for tractor supply to small-scale farmers
with little working capital.
•¡
Conducted field trips to Bagré.
•¡
Evaluated opportunities for agricultural training centre of
excellence and demonstration farm.
•¡
Private-sector member participating in consortium for
the Competitive African Rice Initiative (CARI) for West
Africa and Tanzania, with the objective of reaching
at least 120,000 smallholders over 5 years (10,000
in Burkina Faso, at least 30% being women) and
developing downstream value-chain structure.
Ecobank
Groupe
Velegda
Continue to work towards improving access to
affordable finance for the agriculture sector through:
1. providing $3.36 million in direct lending and via
microfinance institutions that on-lend to the sector,
estimated to result in over 60 new loans of around
$50,000 each with an average maturity of 1.5 years;
2. securing an accompanying portfolio guarantee from
USAID covering 50% of the potential losses from
this lending; and
3. in 2014, pursuing a partnership with DANIDA to
support value-chain financing for maize, shea nuts,
livestock, Arabic gum and cowpea.
Contribute to improving smallholder productivity and
livelihoods by advancing a project to farm 600 ha of
rice and maize and establishing a rice husking plant.
•¡
44 projects financed for a total of 1,886 million CFA
Francs in the non-cotton sector.
•¡
USAID’s credit guarantee set up and commencing
operation (via the Development Credit Authority – DCA).
•¡
Efforts underway to finance value chains and facilitate
access to credit for specific projects in the Bagré
Growth Pole.
•¡
Invested 16 million CFA Francs in the 50 ha allocated
to date (situated in Bagré), which have been developed
with maize, soya and sesame.
•¡
Water irrigation pumps installed in early 2014 to boost
productivity of exclusively rain-fed crops on these 50
ha.
•¡
Responded to a Bagré Call for Applications with a view
to securing a further 500 ha – awaiting land allocation.
Agence Deli
Internationale
(ADI)
Create a modern hibiscus processing plant that will
contribute to:
1. developing production of varieties adapted to various
uses;
2. collection and selection of hibiscus suitable for local
processing;
3. production of juices, soft drinks, sweets, tea and
infusions from hibiscus, through the addition of other
local raw materials; and
4. promoting the development of small family farms, with
a special focus on working with rural women.
•¡
Slow progress due mainly to a lack of access to credit
at interest rates lower than 8% and with payment
deferral terms beyond a year.
•¡
Promising opportunities identified, in particular in
Japanese tea market, with plans also underway to
prospect the Middle-Eastern and American markets.
•¡
Potential funding from the Danish development
cooperation service (DANIDA) is being explored, while
a proposal has already been submitted to the AfDB
for financial support under the Agriculture Fast Track
Facility.
Pickou Export
Develop a significant network of smallholder sesame
and cowpea farmers by:
1. establishing a 1,600 ha farm to launch the project
(with coverage to be expanded to 20,000 ha over
5-10 years);
2. providing training to introduce improved cultivation
techniques (equipment and certified seeds);
3. creating a 400 ha production field school;
4. constructing a storage warehouse and delivering a
“one-stop” shop for produce buyers; and
5. setting up a sesame oil extraction plant.
•¡
A 200 ha production field school is in place, and 750
ha is being cultivated by 800 smallholder farmers, with
further progress constrained by a lack of working capital
to buy inputs.
•¡
Sesame produced is being exported to Egypt, while
cowpea is servicing the local market.
•¡
Two 200-tonne warehouses have been built, with a
500-tonne facility under construction.
•¡
Efforts underway to partner with APME.2A to strengthen
the value chain and further develop the nucleus farm
model.
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Burkina Faso
Burkina Faso
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