WEF_GrowAfrica_AnnualReport2014

2013 in Review 2013 in Review
LETTERS OF INTENT
The Year in Numbers
2013 action for transformation
A selection of companies engaging in each country have outlined their investment plans by signing “Letters of Intent”. For 2013, the
following statistics aggregate any data shared by these companies in the spirit of mutual accountability.
16 Companies have
Letters of Intent (LoIs)
IMPLEMENTATION PROGRESS REPORTED
0% Complete
8% Performing well
31% On plan
13 of 16 companies provided data.
$29 million of investments made in 2013
$26 million of capital expenditure.
$3 million of operating expenditure.
6 of 16 companies provided data.
OUTCOMES REPORTED FOR 2013
1,042 jobs created:
46% Minor problems
15% Major problems
0% Cancelled
Planned investment
estimated at $20 million
5 of 16 companies provided data.
174,000 smallholders reached:
Leadership and alignment
•¡
High-level government support (including
from the Prime Minister’s office and key
Ministries) makes a national priority of
facilitating the connection of smallholder
farmers to viable, sustainable markets.
•¡
Cooperative Unions, NGOs, local
government and agriculture agencies all
increased their understanding and practical
engagement with market-led agricultural
transformation.
Strategy setting
•¡
The GTP and the ADLI strategy offer a
clear national vision and approach for
transforming the sector.
•¡
Priority value chains are well-established as
a guide for investment.
Investment pipeline
•¡
Partnerships between companies, farmers
cooperatives, the GoE and donors are
catalysing investments within key value
chains.
•¡
Investment pipelines could be strengthened
by further involvement of catalytic partners
such as donor organisations, microfinance
institutions (MFIs) and NGOs, as well
as through further improvements to the
enabling environment for private sector
development and investments.
Risk mitigation and financing
•¡
Risk mitigation and insurance structures
for smallholder famers are still at very
early stages, with the Swiss Re/Oxfam R4
programme offering a progressive model.
•¡
Cooperative Unions improved their
provision of support to financing
smallholder production.
•¡
Domestic companies have significant
liquidity constraints and very limited tools
available with which to overcome them.
•¡
Policy barriers limit external financing
solutions and foreign exchange availability.
Infrastructure and policy
•¡
Agriculture is predominantly rain-fed, and
few smallholders can access the irrigation
needed to boost yields.
•¡
Major road networks are reasonable and
improving, but rural feeder roads still
constrain market access significantly.
•¡
While some new warehousing was
constructed, limited storage facilities
continue to contribute to price spikes and
wastage.
Delivery and implementation
•¡
The ATA is the coordinating agency for
implementation of Ethiopia’s agricultural
strategy. Its PPP Unit offers a focal point
with government for companies looking to
enter agro-processing in ATA’s focus crops.
25% 75%
27% 73%
•¡
The Ethiopia Commodity Exchange (ECX)
offers a pioneering new marketplace that
serves all market actors, from farmers,
traders and processors to exporters and
consumers.
5 of 16 companies provided data, of which
80% was gender disaggregated.
52,320 with services
11,760 with sourcing
11,760 with production contracts
3,735 with training
98,002 unspecified
•¡
The GoE’s agriculture extension network
is well-established and reaches farmers
throughout the country.
7 of 16 companies provided data, of which 57% was gender disaggregated.
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Ethiopia
Ethiopia
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