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Paepard presentation pastoralism financing
by François Stepman on May 20, 2013
• 145views
14th Annual Meeting of the Inter-Agency Donor Group (IADG) ...
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Paepard presentation pastoralism financing Presentation Transcript
• 1. Presentation by Francois Stepman 14th IADG meeting in Berlin, 22nd-24th May

9. • 2. “The growing global demand foragricultural innovation makes it vitalto assess the
characteristics thatseparate effective from ineffectiveinnovation fund
mechanisms”DESIGNING AND IMPLEMENTINGAGRICULTURAL
INNOVATION FUNDS:Lessons from Competitive Research and Matching Grant
Projects© 2010 The International Bank for Reconstruction andDevelopment/ The
World Bank
• 3. What went wrong withfunding agricultural research for development?
• 4. ϒ The absence of well-elaborated national policy,over-compensated by an excess of
donor initiativesϒ The unrealistic time frame of donor initiated-development goalsϒ
The frequent ‘adjustments’ according to the donors’own priorities and the methods
and procedures infashionϒ Donors and their aid administrators have shortmemories,
repeating the same mistakes
• 5. ϒ Too many disorganized, uncoordinated andtechnically weak actors at all levels,
resultingin a multitude of fragmented, competing,contradicting, parallel activities
which haveoften interfered with the development ofnational institutional capacities by
enticing thebest people to come and work for themϒ Low enabling environment for
privateinvestments and for farmers to re-invest intheir farms
• 6. How to finance innovations inpastoralism?
• 7. 1. Value chain financing2. Value chain based funding3. National research calls4.
SME development funds
• 8. Agricultural Value Chain Finance Toolsand LessonsCalvin Miller and Linda
JonesPublished by FAO and Practical ActionPublishing 2010195 pages• What is
value chain finance, how is it applied andwhat can it offer to strengthen
agriculturaldevelopment?• How can financial systems, governments andservices be
prepared for the demands of financingmodern agri-food chains?• How does
agricultural value chain financing affectinclusion, especially for small producers and
whatcan be done to make these systems moreinclusive?• What can governmental and
non-governmental(NGO) agencies do to support increased and moreeffective
agricultural financing through valuechains?
• 9. As agriculture and agribusiness modernize withincreased integration and
interdependentrelationships, the opportunity and the need for valuechain finance
becomes increasingly relevantϒIt can improve the overall effectiveness of
thoseproviding and requiring agricultural financing.ϒIt can improve the quality and
efficiency of financingagricultural chains
• 10. ϒ identifying financing needs for strengthening thechain;ϒ tailoring financial
products to fit the needs of theparticipants in the chain;ϒ reducing financial
transaction costs through directdiscount repayments and delivery of
financialservices;ϒ using value chain linkages and knowledge of thechain to mitigate
risks of the chain and its partners.
• 11. ϒ Meeting the challenges of consumer trends and thedemand for more processed
or value addedproducts requires increased investment inequipment, working capital,
and skills andknowledge.ϒ Such investment is not only costly for individualvalue

10. chain businesses, but can only be undertakenif there is an assurance from elsewhere in
the chainfor supplies, produce or markets.
• 12. ϒ Some countries have managed to put in placestructures for platforms to
encourageoperational use of research results byproducers and took a serious option
forsolving the problem of financing the system.
• 13. In Ivory Coast 18 value chains work with theFond Interprofessionnelle de la
Recherche et duConseil Agricole (FIRCA) and 13 to 14 arecollecting fees.ϒThe value
chain actors identify the projectswhich FIRCA finances in the field of
appliedresearch, agricultural advice, technical trainingand the reinforcement of
capacities.ϒExamples: hevea , palm oil, coffee, cacao,pigs, poultry, fruit-citrus
• 14. In Burkina Faso, the Ministry of ResearchScience and Innovation created in
January 2011the National Fund for Research and Innovationfor Development
(FONRID).ϒorientation of research towards demand andnational
priorities;ϒimproving the quality of scientific research;ϒthe promotion of invention
and innovation;ϒdiversification of the scientific, technical andfinancial partnership.
• 15. ϒ Most businesses focus on managing theiroperations.They are not necessarily
focused on howto improve their competitiveness throughinnovation?ϒ Many
businesses have limited ability to developgood proposals. Developing concept notes
andgrant proposals and assembling the requireddocumentation entails transaction
costs (time,resources).The private agri-sector may find it verydifficult (or reluctant) to
provide time and cash tomatch the grant?
• 16. ϒ Limited experience and mistrust make the privatesector reluctant to engage with
NGOs orgovernment-“driven” research activities andthereby prevent actors outside
the private sectorfrom entering into collaborative arrangements?ϒ Besides, the
challenges of working withsmallholders in out grower schemes limits theprivate
sector’s interest in submitting proposals
• 17. The Delegation of the European Union to Uganda willlaunch a SME Development
Fund (Equity Fund) over2- 3 months.ϒIt will be open to all sectors of agribusiness,
includinglivestock.ϒThe selection will be made on the basis of socio-economic-
environmental criteria and financial returncriteria.ϒThe EU/Uganda aims at targeting
at least 25-30companies with the first closing of the fund.
• 18. ϒ GlobE - Global Food Security.Federal Ministry of Education and Research of
Germany♣ Reduction of Post Harvest Losses andValue Addition in EastAfrican
FoodValue Chains (University of Kassel): pastoralmeat value chains♣ Trans
disciplinary research: Stakeholder processes,knowledge integration and collaborative
learningϒ Two new Dutch Funding instruments on foodsecurity
challengesNetherlands Organisation for Scientific Research♣ the Global Challenges
Programme (preliminary applications9 July 2013)♣ the Applied Research Fund
• 19. ϒ ERAFRICA JOINT CALL♣ Themes:♣ Renewable Energies , Interfacing
Challengesspecific call, New Ideas♣ Participating countries:South Africa, Germany,

11. Austria, Belgium, BurkinaFaso, Côte d’Ivoire, Egypt, Finland, France, Kenya,The
Netherlands, Norway, Portugal, SwitserlandetTurkey.♣ Deadline 15 April 2013.
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