Supporting The Comprehensive African Agriculture Development Programme

Situation

The African Union's NEPAD Planning and Coordination Agency advances the CAADP agenda to stimulate productivity, investment and evidence-based policy making in African agriculture. CAADP encompasses holistic considerations such as sustainable land and water management, market access and infrastructure, increased food security, and improved agricultural research. Dalberg has been engaged in several defining initiatives in support of CAADP at the national, regional and continental levels.

Dalberg Approach

Over the course of several engagements, we developed in-depth national policy roadmaps focused on raising competitiveness and seizing market opportunities, increasing investment in commercial and trade infrastructure, furthering the development of robust agricultural value chains, increasing access to financial services, and strengthening farmers and trade organizations across the continent. We conducted an investigation into the actual usage of research and data-driven analysis in agricultural policy-making processes. We also developed the overarching governance structure for CAADP core funding through a World Bank Multi Donor Trust Fund.

Results

At the start of Dalberg's engagement with CAADP only one country had fully endorsed the process by signing a CAADP Compact. At the close of our most recent engagement, nearly two thirds has. Key global initiatives and financiers in African Agriculture and Food Security now anchor their work in the CAADP agenda. While CAADP success is the result of the tireless efforts of our clients and partners, we are proud of our contribution to this Africa-led process to address complex challenges.

To learn more about our Agriculture and Food Security practice area, click here.

Developing the agriculture value chain and chickpea market in Ethiopia

Situation

Ethiopia is Africa's fourth-largest economy, with a population of 85 million and an expected annual growth of 11% over the next five years. Ethiopia is situated in one of the most food insecure regions of the world, where 44% of the population is under or malnourished. Three out of four hectares of arable land in Ethiopia is currently uncultivated. Despite these challenges, the Food and Agriculture Organization of the United Nations estimates Ethiopia is one of the top ten global producers of chickpea, a nitrogen-fixing, protein rich legume. Given the nutritional and ecological benefits of this easy-to-grow crop, it is easy to see impact potential of increased chickpea production for Ethiopia.

PepsiCo's enterprise in Ethiopia (PepsiCo EthioPEA) recognized this potential and aimed to develop the agriculture value chain and chickpea production and processing in Ethiopia. Dalberg worked with PepsiCo to refine their initiative and identify partners to realize the potential of Ethiopian chickpea. Our work included financial modelling, assessment of partnership opportunities and the development potential business models for local production and processing.

Dalberg Approach

Dalberg developed a preliminary financial model to understand the scale of investments needed across the chickpea value chain. We refined the business model to help inform PepsiCo's specific contribution to EthioPEA and assessed potential partners and their positioning within the initiative. The project culminated with a set of high level recommendations on ideal market opportunities for production and processing, and an assessment of the associated socio-economic benefits and drawbacks. Dalberg also provided support to the PepsiCo representative at the World Economic Forum's Grow Africa Forum to boost the EthioPEA profile and harness partner support.

Results

PepsiCo has gained firm commitments from organizations such as the World Food Program (WFP) and the United States Agency for International Development (USAID) to engage in development of the chickpea value chain in partnership with the Ethiopian government. Local organizations and other private sector corporations have also expressed strong interest to support the implementation of the initiative.

To learn more about our Agriculture and Food Security practice area, click here.