The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .

2. Involvement of farmers inInvolvement of farmers in
PPPs: a practical example andPPPs: a practical example and
perspectivesperspectives
Brussels Briefing n. 47
Brussels, Belgium, 03rd
February, 2017
Ishmael Sunga
Chief Executive Officer

3. contentscontents
• Introduction
• A practical example of PPPs- the Value
Chain Initiative (VCI) -
• Implementation arrangements
• Main results
• Lessons and observations
• Recommendations

4. • Agricultural development is multi-dimensional, involving many
elements, disciplines, factors and actors.
• A multi-stakeholder and systems approach is thus required.
• Commercialisation of primary production will be a key driver to the
transformation of the agricultural sector.
• PPPs are increasingly used as a vehicle for smallholder
commercialisation.
• Broken smallholder value chains- root of lack of commercial viability of
smallholder production.
• SACAU has been involved in both the concept, design and
implementation of PPP configurations.
• The Value Chain Initiative (VCI) as a practical example of PPPs.
introductionintroduction

5. • Concept: value chain-based cooperation to unlock
value for all players in the chain; and lending
primarily based on the strength of the value chain.
• Guiding principle: risk sharing by all, and profit taking
for everyone after marketing.
• Partnership configurations/the players: Input
suppliers; machinery/equipment services partner;
commercial finance; off-taker; insurance services and
farmers’ organisation.
a practical example of PPP- thea practical example of PPP- the
value chain initiative (VCI)value chain initiative (VCI)

6. • MOU signed.
• Hosting and facilitation by SACAU.
• Partners’ review and coordination
meetings.
• Local implementation agency on a SLA.
• Special purpose vehicle established
implementation arrangementsimplementation arrangements

7. • 2000 ha of maize.
• 67 farmers involved.
• USD1.4m production loan secured.
• Pre-financing (USD423,000) of
inputs and services prior to loan
approval.
main resultsmain results

8. • Productivity increase-+200%.
• Enhanced access to finance.
• Access to expert technical
advice, services and extension.
• Access to structured markets.
main results (cont)main results (cont)

9. • PPPs are indeed an effective vehicle for the development of the smallholders.
• PPPs are effective in de-risking production, marketing and financing smallholder
agriculture.
• Potential of PPPs grossly underutilized.
• Farmers not deriving maximum value from PPPs due to limited negotiation, deal
making and other capabilities.
• Lack of commercial/business development capabilities hampering the
participation of farmers’ organisations in PPPs
• Farmers are rarely the initiators of PPP arrangements. They are approached
• Technology transfer not happening enough.
• The stability and predictability of the policy and operational environment matters.
• Farmers aggregating around off-takers/service providers and thus not reaping
the leverage/benefits of aggregation.
lessons and observationslessons and observations

10. • Develop strategy for maximising great potential for PPPs
• Design practical mechanisms for ensuring fairness/equity in the sharing
of risk and return in PPPs
• Support farmers to proactively identify business opportunities and use
PPPs as a vehicle for making it happen on their own terms
• Support FOs to develop commercially related capabilities
• Establish a business development facility to support farmers in
engaging in PPPs
• Use PPPs to drive the development of a younger generation of farmers
• Measure the performance of PPPs in terms of the extent to which
farmers involved are investing in growth and development of their farms
• Need for farmers to have a stake in the higher value segments of the
chain
recommendationsrecommendations

11. Thank You