CAADP MEETING, KIGALI, RWANDA MARCH 29-31, 2007

UNCLAS NAIROBI 001709 SIPDIS AID/AFR/EA/JESCALONA JEFFREY BORNS, AFR/SD THOMAS HOBGOOD, AFR/SD/EGEA SUSAN THOMPSON AND JOHN R THOMAS EGAT/AG/ARPG POLLY BYERS, F/AF/EA WILLIAM HAMMINK, DCHA/FFP SUSAN BRADLEY, DCHA/PPM JERRY BROWN, RCSA/RPIO ERNA KERST, RCSA/DIR ROBERT KAGBO, WA/ANRO ADDIS PLEASE PASS TO USAU SIPDIS E.O. 12958: N/A TAGS: RW SUBJECT: CAADP MEETING, KIGALI, RWANDA MARCH 29-31, 2007 Rwanda is the first country in the COMESA region to launch a country Compact for the Comprehensive African Agricultural Development Programme (CAADP). ¶1. Summary March 29-31 in Kigali, the Government of Rwanda and COMESA hosted a regional partners? meeting and a country round-table meeting on the Comprehensive African Agricultural Development Programme (CAADP). On March 31, a CAADP Country Compact was signed by the Rwandan Government, the African Union, the NEPAD Secretariat, COMESA, and development agencies represented by the World Bank. This document commits the government and the development partners to expeditiously modify the Economic Development and Poverty Reduction Strategy (EDPRS),and to align it and related programs in agriculture with the CAADP objectives. The Compact reaffirms the commitment to allocate 10% of the national budget to agriculture, as well as to improve donor coordination and predictable financing in support of the program. It proposes to establish joint review processes involving the government the private sector, civil society, and development agencies. Implementation will be overseen by the government and the development partners, with a strong reliance on private sector capacity. A Sector Wide Assistance Program (SWAP) will be established to facilitate implementation. Steps are underway in Uganda, Kenya, Ethiopia, Zambia, and Malawi to establish country implementation platforms for CAADP. Representatives of most of these countries participated in the meeting to coordinate their respective plans with each other and with the regional platform, which is being coordinated by the COMESA Secretariat. Steps are also underway to establish a SIPDIS regional CAADP Compact, which is expected to be completed by the end of 2007. USAID is committed to support and align its efforts with CAADP at the bilateral and regional levels. ¶2. Objectives of the CAADP Round Table Process The CAADP round table process provides an African led forum, common framework and a commitment to evidence based planning for countries to review and improve the efficiency of their ongoing and future agricultural development efforts aimed at stimulating economic growth and reducing poverty. Preparation for the roundtable involves: a) An inventory and review of current policies, programs, investments and sector governance and coordination mechanisms; b) Analysis to determine whether the current efforts (programs and investments levels) are adequate to achieve the CAADP objectives of six percent agricultural growth and meet MDG NO.1 - to cut hunger and poverty in half; c) Analysis to determine the areas of potential investment with the highest potential for achieving the growth and poverty reduction objectives, and the levels of investment that will be required; d) Analysis first to benchmark the current levels of government and donor funding and then to project the future financing from all sources that will needed to meet the objectives; e) A review to determine if sufficient and appropriate institutional capacity and skills exist to deliver on the agenda. The roundtables bring key stakeholders and development partners together to review this information, to identify changes that will be needed among government, donors, private sector and civil society to achieve the CAADP objectives, and to chart a way forward. ¶3. Summary of the CAADP Roundtable process in Rwanda Rwanda is the first country in Africa to complete the CAADP round table process. The process was clearly owned and led by Rwandan Government leaders. They used the opportunity to inform their ongoing national planning process for their Economic Development and Poverty Reduction Strategy (EDPRS),and the Strategic Plan for Agricultural Transformation (PSTA) which is a multi-year set of operational programs that guide the implementation of specific programs. Through CAADP, IFPRI provided analytical support, modeling the impact on growth and poverty of different investment choices. The round table process in Rwanda has set a high standard for serious analysis and high quality debate, and stimulated valuable discussion among the representatives of other countries. The analysis of types and levels of investment being made projected that with the current portfolio, growth will slow down, and that the government?s existing plans would reduce poverty by at most 20 percent by 2020. Continuing current plans and programs (business as usual) would mean that Rwanda could not meet the CAADP objectives and the related MDG goal for poverty. To meet the MDG, significantly higher investments will be needed, along with a portfolio that balances sub-sectors to stimulate growth among lower income strata, as well as promoting export commodities that may have higher rates of return but which involve only relatively few farmers. Rwanda has proposed to organize its future programs into four pillars that are responsive to but different from those in the CAADP framework. Within each, plans for specific sub-programs and indicative targets were developed, and then budgeted according to different assumptions about the financial resources expected to become available. These templates provide a flexible framework within which specific programs can be further developed. a) The intensification and development of sustainable production systems, including soil conservation, intensification of marshlands, expansion of irrigation, increased supply of seed, fertilizer, and other inputs, improved animal production systems, and improved access to food and better management of supplies available to vulnerable groups b) Support to professionalization of producers, including the strengthening of farmers? organizations, restructured extension services, research for development, and credit c) Promotion of commodity chains and development of agribusiness, including export promotion and business development, promotion of specialty crops, agro- processing and improved competitiveness, and rural infrastructure d) Institutional development, including increased staffing and training for key institutions, improved agricultural statistics, and comprehensive monitoring and evaluation One very valuable output of the Rwanda CAADP Roundtable Process has been the publication of clear, concise briefs that explain the process, which will facilitate coordination and clarity among the partners involved. ¶4. Meeting Participation A total of nearly three hundred people attended the country-round table. The following COMESA member states were represented, several at the Ministerial level as well as by country CAADP focal person and other stakeholders: Burundi, Djibouti, Egypt, Kenya, Malawi, Uganda, and Zambia. The Rwandan delegation was led by the Ministers of Agriculture and Finance, both of whom participated actively, and included representatives of Ministries, government institutions, NGOs and civil society, and the private sector. The following international organizations were represented, some by staff from headquarters and others by representatives in Rwanda: the African Union, COMESA, the NEPAD Secretariat, the FAO, FARA, ASARECA, FANRPAN, the World Bank, BMZ, the Global Donor Platform for Agriculture and Rural Development, SIDA, IFAD, the WWF, the EU, JICA, Belgian Cooperation, the African Development Bank, the Micronutrient Initiative, IFPRI, Michigan State University, NR International (U.K.),The U.S. Corporate Council on Africa, and The African Organic Food and Fiber Initiative (USA). USAID was represented by Kevin Mullally, Rwanda Mission Director; Ryan Washburn, Head of the Economic Opportunities office in the Rwanda Mission; Jeff Hill from AFR/SD in Washington; Peter Ewell and Walter Knausenberger of the Regional Economic Growth and Integration office at USAID/East Africa; and David Rinck of the regional office of Food for Peace. ¶5. The Rwanda CAADP Compact The Rwanda CAADP Compact was signed on March 31, 2007 on behalf of the Government of Rwanda by the Minister of Finance and Economic Planning, James Musoni and by the Minister of Agriculture and Animal Resources, Anastase Murekezi. It was signed on behalf of donors by Victoria Kwakwa, the World Bank Country Manager and co-chair of the Rwanda donor platform; by Sindiso Ngwenya, COMESA Assistant Secretary General, on behalf of COMESA, and by AU Commissioner of Rural Economy and Agriculture, Ms Rosebud Kurwijila, on behalf of AU and NEPAD. It was also signed by representatives of the private sector and of civil society in Rwanda. The Compact reaffirms the joint commitment to increase investments in the agricultural sector to achieve an annual growth rate of at least six percent, and the Maputo decision to allocate at least 10 percent of the national budget to the sector. Specifically, the government is committed to private sector led growth underpinned by public sector investments. Market- oriented agriculture is central to the strategy, leading to transformation and modernization of the sector, with a target growth rates by 2011 of 7% for agricultural GDP, segmented into 6% for food crops production, 8% for animal production and for export crops. Through the Compact, the Government of Rwanda commits itself to strengthen and add value to the national Strategic Plan for the Transformation of Agriculture (PSTA),under the ongoing Economic Development and Poverty Reduction Strategy (EDPRS),as identified its Vision 2020 document. It will work through existing mechanisms to ensure maximum, efficiency and effectiveness in the utilization of resources, and recommits to ongoing dialogue, coordination, mutual; review, and accountability mechanisms. The development partners reaffirmed a joint donors? statement made at a meeting in November, 2006. They commit collectively to align assistance to the sector to the programs and priorities identified in the EDPRS/PSTA agenda, and to scale up assistance over the next five years to help meet the investment costs of the programs defined under that agenda. They agree to provide indications of future aid on a multi-year basis to improve predictability to improve planning budgeting, and implementation. Starting immediately, the GOR and the development partners will consult through the existing Rural Sector Cluster and Development Partners Coordination Group to commit funding through a sector- wide approach. The African Union and COMESA commit to support Rwanda?s national strategies as defined in the EDPRS and PSTA by mobilizing political, financial, and technical support. The private sector and civil society collectively pledge their support to realizing the aspirations of the Compact ¶6. Highlights and Observations COMESA is leading the development of a regional CAADP strategy and Compact. Further analysis and strategic planning leading to a CAADP regional Compact will be completed before the end of 2007. The inventory of ongoing programs and coordination processes in Rwanda revealed that valuable processes have been developed to facilitate coordination and dialogue, involving government, development agencies, private sector and civil society. As noted earlier, the available evidence indicates that the continuation of current efforts and plans cannot enable Rwanda to meet the CAADP objectives or the MDGs. Adjustments are needed to improve the efficiency of how existing development resources are used, and to focus future plans and necessary levels of investment. Working groups were set up to discuss the proposed activities and relative levels of effort. Many good point were made that will need attention as Rwanda moves to implementation. The Rwandan team has organized fora at which these will be discussed further. The differences between the pillars of the Rwandan EDRPS and the pillars of CAADP pillars may cause confusion or complicate regional monitoring efforts. Further discussion is needed on how align the categories. In Rwanda as the pathfinder, this was complicated by the fact that specific guidance on programmatic issues is still to be developed by AUC and NEPAD. . It was notable that the Rwanda analysis and proposed set of programs did not have a clearly defined agenda for CAADP Pillar III concerns related to food security and vulnerability. This shortcoming will need to be addressed in other country analyses and round table processes, as well as the regional CAADP portfolio. USAID/Food for Peace/East Africa is concerned that a food security strategy that under-emphasizes access and utilization issues will not sufficiently address the full range of causes of food insecurity in the region, which may thereby limit the usefulness of CAADP in reducing poverty in line with the Millennium Development Goals. Addressing policies and uses of food aid, a major tool for addressing food insecurity, would be a useful additional component in future national compacts. ¶7. The role of COMESA and upcoming actions The COMESA Secretariat played a key role in coordinating the support provided by development partners to help Rwanda organize its CAADP Roundtable. COMESA has been assigned the task by AUC and NEPAD of coordinating assistance to its member countries in getting the roundtables organized, and for developing a regional platform to implement CAADP. COMESA continues to be short of staff, and urgently needs to bring on board additional support staff that has been planned through various mechanisms, to assist with the development of Compacts in the remaining first-stage countries and at the regional level. At the regional level, COMESA needs to build upon the good work that has been done to date in laying the foundation for CAADP implementation. Specifically, by the end of the year, a concise regional strategy for CAADP as a whole in the COMESA regions should be developed. This will help to clearly identify and align ongoing activities that are in support of CAADP, and set clear criteria and standards for the selection of new activities. The Re-SAKKS node should play an important role in this effort to assist COMESA to establish an evidence-based investment portfolio for stimulating agricultural growth in the region. ¶8. Summary of the current status of the CAADP round table process Six COMESA member countries were chosen in 2006 to ?fast-track? the round table process and develop country Compacts. Rwanda has passed that milestone and five additional countries have initiated the process, and expect to develop Compacts between now and August. ¶1. Zambia: Indicative date for round table: June. Focal person: Mr. E.C. Kalaba, Deputy Director, Policy, Ministry of Agriculture and Cooperatives, eckalaba@maff.gov.zm ¶2. Uganda: Indicative date for round table: June. Focal person: Mr. Keizire Boaz Blackie, Principal Economist, Ministry of Agriculture, Animal Industry and Fisheries keizire.Boaz@apdmaaif.or.ug; blakiesq@yahoo.com ¶3. Malawi: Indicative date for round table: June. Focal person: Ms. Fiskan Nkana, Planning Department Ministry of Agriculture and Food Security fiskaninkana@yahoo.co.uk. ¶4. Kenya: Indicative date for round table: August Focal person: Mr. John Mungai, Director for Policy, Ministry of Agriculture, : jkmungaike@yahoo.com ¶5. Ethiopia: Indicative date for round table: August Focal person: Mr. Lema Gebeyehu, Head, Crop Protection Department, Ministry of Agriculture and Rural Development, lemag@msn.com Two additional countries have now decided to push ahead, to take advantage of the synergies of the ongoing process, and organize round tables and Compacts this year: 6: Burundi: Indicative date for round table: August Focal person: Mme Evelyne Nduwimana, Conseiller au Cabinet du Ministre de l'Agriculture et de l'Elevage ndevelyne@yahoo.fr ¶7. Djibouti: Indicative date for round table: August Focal person: M. Ahmed Darar Djibril, Conseiller Technique du Ministre de l?Agriculture, de l?Elevage et de la Mer djidarar@hotmail.com ¶9. USAID?s support for and commitment to CAADP The G-8 countries and major OECD partners committed themselves to support the implementation of CAADP at their meetings at Sea Island, Gleneagles, and St. Petersburg. Specifically, the US is committed to program an estimated $200 million per year to support CAADP implementation, and to align the US Presidential Initiative to End Hunger in Africa (IEHA) with the CAADP process and strategic priorities. In each of the focus countries and regional portfolios that are implementing IEHA, it is anticipated that the local USAID missions will provide local country and regional assistance to the roundtable processes, and that they will actively contribute to joint consultations with governments and development partners to shape the CAADP Compacts. RANNEBERGER