Global Forum on Food Security and Nutrition (FSN Forum)

Thank you for the interesting and insightful comments so far.

@ Emile: Thank you for highlighting the importance of improving the investment climate in a country as one of the key reforms necessary to promote agri-PPPs. On the point about protecting smallholders and sharing risks fairly, you indicate that the focus should be on getting farmers organized. Beyond strenghening farmers organizations/groups, are there other measures that could protect the interest of smallholders as partners in agri-PPPs?

@Olabisi: Thank you for underscoring the importance of having clearly defined roles and responbilities for the different partners in an agri-PPP. Perhaps, you could share a bit more about the Nigerian e-wallet fertilizer programme that you referred to.

@Getaneh: I think you bring an intesrting dimension of agri-PPPs as an instrument for financial inclusion/enhanced access to finance by the rural poor. Would you have specifc examples on this to share?

@Jessica: Great insights - having clear criteria of engagement; respecting local culture and development needs; tailoring institutional arrangements for specifc projects; having clear objectives and indicators, etc - all very pertinent considerations for effective design and implementation of agri-PPPs. On the point about considering a wide range of investors, as part of the policy reforms that may be needed, could you elaborate a bit more?

@Yves: Mobilization/organization of producers; collective action, long-term capacity development, etc, are indeed key considerations to be made in the design and implementation of effective agri-PPPs. Thank you 

@Tozie: I like the regional dimension of agri-PPPs that you bring into the discussion. The gains from economies of scale, especially in the context of the African Continental Free Trade Area (AfCFTA), are quite obvious. Would you have an example on such regional agri-PPPs to share?

Let's have more insights on the topic as we conclude this consultations on 19th June!

What is your understanding of Public-Private Partnership in agribusiness (agri-PPPs)?

Agri-PPPs brings together both the private sector and the public sector to share responsibilities in a particular field and reaping benefits that are shared by the communities they serve.  Successful agri-PPPs increase the capability and capacity of the agri-sector and therefore improve livelihoods.  

How useful are agri-PPPs in the Ghanaian context? Please provide examples? From your experience, what are the factors key to the successful implementation of agri-PPPs?

Agri-PPPs are not only useful in the Ghanaian context but the African context benefits such as improved health of the people, animals and the planet and addressing societal issues and growing the economy are not only beneficial to Ghana but also its neighbours.  The approach of agri-PPPs should also seek to partner with Regional Economic Communities to foster the development of the region as a whole.  

The private sector benefits from PPPs as they increase profitability and also getting exposure.  However, successful PPPs need to be a win-win strategy for all parties involved.  An example is a partnership between the Government of Ghana, World Bank, Ministry of Finance & Economic Planning -  http://projects.worldbank.org/P125595/ghana-ppp-project?lang=en 

How can we protect smallholders and share risks fairly, while at the same time ensuring that the agri-PPP is attractive to private investors?

To protect smallholders, the partnership should be set on mutual appreciation benefits and goals, a common understanding of the deliverables and strong leadership and resource availability.  The Terms of Reference of the PPPs must be set out clearly, the duration predefined and the benefits understood by all participants.  PPPs should be within the merits of the law and must be applicable to the relevant Government policies.

Which policy changes/reforms are required to improve private investment for agribusiness in Ghana through PPPs?

In this era of environmental degradation, tools such as Environmental Impact Assessment   & Socio-Economic Impact Assessment should guide policymakers on a way forward in order to benefit the people, animals and the planet.  An example is the recently formulated Africa Animal Welfare Strategy by the AU (IBAR) that seeks to balance the wellbeing of animals with that of people and the environment.  A multi-stakeholder forum between government, government agencies, private investors and groups including civil society need to all have a seat at the roundtable.  

Which institutional arrangements are required to promote agri-PPPs in Ghana for effective engagement and investment of the private sector in agribusiness in Ghana?

Well, this depends on the form of the PPPs, e.g. is it a transactional PPP, i.e. government procurement of specific services from the private sector, or is it a collaborative PPP, i.e joint commitment between the public and private sector and end-beneficiaries, may be a consortium of associations, etc. or is it a transformative PPP where there is a forming of capacity building to deliver otherwise complex major programmes.  Whichever form though, the interest of all parties should be satisfied and the governance structures should be in place

How should support for increased private investment in agribusiness through PPPs be coordinated in Ghana?

Something like an 'Agricultural Developmental Plan/Strategy' should be in place, looking at the next 10 - 30 years which involves all stakeholders in the agri-sector.  An implementation agency organised and tool to monitor and evaluate the objectives/goals.

How should progress on agri-PPPs implementation in Ghana be documented and reported?

Transparency is crucial, all ministries involved, e.g. finance, agriculture, development, etc. and investors and communities should be kept abreast of the outcomes.  The Monitoring and Evaluation group/team should report on a quarterly basis to a 'select' coordinating committee comprised of representatives of all stakeholders involved.

Who are the main stakeholders for effective design, implementation and reporting on agri-PPPs in Ghana?

Relevant government departments (finance, agriculture, development, etc), academic institutions, civil society, banks and other agricultural finance houses and developmental organisations (national and international)

Hello,  due to my busy schedule  I will first send what I have started.

1.    What is your understanding of public private partnership in agribusiness ?

In the International Review of Management and Marketing vol 6. Issue 4, 2016, Public Private Partnership (PPP) is defined as an instutional and organisational alliance between government and business in order to implement national and international, large scale and local, but always socially significant projects and programs in a wide range of areas of activity.

In 2013, FAO in the Agribusiness public private partnership (PPP) UGANDA country report defined PPP in agribusiness as a relation with ministries of agriculture and private sector in order to increase competitiveness, value addition, and employement. In 2016, in the Public Private Partnership for agribusiness development in the review for international experience, FAO defined Agribusines Public Private Partnership as a formalized partnership between public institutions and private partners designed to address sustainable agricultural developpment objectives, where the public benefits anticipated from the partnership are clearly defined, investment contribution and risks are shared and active roles exist for all partners at various stages through out the PPP project life cycle. 

2.    How useful are agri PPPs in the Ghanaian context,  please provide example from your experience, what are the factors key to sucesssful implementation of agri PPPs ?

In 2013, FAO in the Agribusiness PPPs Ghana country report presented the impact of PPPs in the Ghana context. The PPPs were initiated to improve some agribusiness domain, These had a significant impact on extension services, research and innovation development and for agriculture mechanization. The implementation of the PPPs in Ghana contributed to meeting both business and goverment interests. Farmers’ employment has increased significantly as well as their production. 

Example the Ghana Rubber Project : it is a project between the Ghana Government represented by the Agricultural Development Bank of Ghana and Agence Francaise de Développement (AFD) of France which leaded to 6000 farmers gaining employment through the out grower scheme. About 80 percent of the income from the tree farming was estimated to remain in the project areas.

The key factors to sucessful implementation of agri PPPs are : the mobilisation of people at the primary end of the value chain is crucial for the success of the PPP and risk mitigation, it comes with the investment in the organization of people and infrastructural facilities. (FAO, 2013, agribusiness public private partnerships a country report of Ghana). There is also monitoring and evaluation (ME) which permit to create a solid evidence base that will provide guidance on the effective design and implementation of agri PPPs and measures their impacts over the long term. (Agribusiness and value chains, FAO, 2018). Collective action is an essential feature of all agri PPPs as it helps to reduce transaction costs and to promote inclusion (Agribusiness and value chains, FAO, 2018)

3.    How can we protect smallholders and share risks fairly, while at the same time ensuring that the agri PPP is attrative to private investors

FAO in the Agribusiness and Value Chains in 2018 publised that agri PPPs should aim to share risks fairly among partners and include risk management mechanisms to protect the most vulnerable. These mechanisms include agricultural insurance schemes, gurarantees, subsidised loqns for smqll scale farmers and firmsm secure purchasing contrats, business management training for farmer organisations, and risk sharing stipulations in case of force majeur. Policy maker promoting agri PPPs for poverty reduction objectives should consider that a certain level of skils and assets are required to be a suitable candidate for participation in these partnerships. This will likely exclude the poorest unless heavy investment is made in long term capacity development.

1- What is your understanding of Public Private Partnership in agribusiness (agri-PPPs)?

FAO has considerable experience of PPPs in agriculture. For example, see here.

PPPs can involve public entities, financial institutions, non-governmental organizations (NGOs), agricultural companies (preferably small and medium agro-enterprises (SMAEs)), farmer organizations (FOs) and individual farmers.

Ideally, PPPs should seek to ensure that the projects they work on meet local development needs, and sustainability criteria (not involving detrimental social and environmental impacts).

Any PPPs should have clear Memorandums of Understanding, including criteria for engagement. Terms should be open and transparent, and clearly indicate public good criteria.

2- How useful are agri-PPPs in the Ghanaian context? Please provide examples? From your experience, what are the factors key to the successful implementation of agri-PPPs?

PPPs could be useful in the Ghanaian context, if they are well motivated, organized and respectful of local culture and development needs. Again, we stress the need for PPPs to ensure that the projects they work on meet local development needs, and sustainability criteria (not involving detrimental social, environmental and animal welfare impacts).

3- How can we protect smallholders and share risks fairly, while at the same time ensuring that the agri-PPP is attractive to private investors?

Here it should be remembered that there is a widening pool of investment opportunities, not just for commercial companies and lenders seeking to maximise profits. There are also charitable foundations and trusts, individual philanthropists, crowdfunding, seed funding, NGO funding (especially for replicable pilot projects), international development funding etc... The primary aim of development projects should be established first – using sound development and sustainability criteria – and then funding should be sought from appropriate sources. Funding sources should not be allowed to dictate the nature of projects – as often this leads to benefits for private investors/corporations, but costs for the country and local producers – for example, unfair competition, loss of local employment and livelihoods, resource use and environmental degradation (not factored into prices, externalised and paid for by countries and taxpayers).

4- Which policy changes/reforms are required to improve private investment for agribusiness in Ghana through PPPs?

Firstly, the range of investors need to be considered, and not just in terms of corporations and investment banks. Then a clear and sustainable policy environment needs to be put in place. Terms of investment need to explicitly take into account environmental, social and animal welfare safeguards, and bring clear benefits to the country and local communities.

5- Which institutional arrangements are required to promote agri-PPPs in Ghana for effective engagement and investment of the private sector in agribusiness in Ghana?

This would be best achieved around specific projects, with clear objectives and action plans. Potential investors do not want to sign blank cheques. They need to know what they are signing up for. Similarly, governments can only ensure that projects are in the country’s development interests if given the full details of individual projects.

6- How should support for increased private investment in agribusiness through PPPs be coordinated in Ghana?

There needs to be an overarching policy framework, which protects both investors and the development and sustainability needs of the country.

7- How should progress on agri-PPPs implementation in Ghana be documented and reported?

Clear objectives and indicators are needed. These should be aligned to the SDGs and other international standards and environmental, social and animal welfare safeguards.

For example, if we take an issue such as animal welfare, then all the internationally-agreed OIE animal welfare standards should be included, as well as other internationally or regionally-agreed animal welfare criteria such as:

- International Finance Corporation Good Practice Note for Animal Welfare,

- EU Animal Welfare Regulations

- World Bank – Animal Welfare Good Practice in Agricultural Development for the Successful Implementation of the 2030 Agenda (currently being developed under the Wageningen process).

Environmental, social and animal welfare impact assessment should be included. Analysis to protect against any unsustainable projects as well – including:

• SDG 1 Poverty – especially protect local jobs and livelihoods.
• SDG 2 Hunger – especially contributing to sustainable local food security/sovereignty.
• SDG 3 Health and Well-Being – especially healthy food systems, without use of chemical inputs and antibiotics, and avoiding close-confinement systems which spread disease.
• SDG 4 Education – especially local research, training and capacity building.
• SDG 5 Gender Equality – especially inclusion of support for female farmers/producers.
• SDG 6 Clean Water and Sanitation – especially avoiding excessive water usage and pollution of waterways and oceans.
• SDG 7 Affordable and Clean Energy – especially ensuring energy efficiency and use of renewables.
• SDG 8 Work and Growth – especially protecting local jobs, livelihoods and flourishing local economies.
• SDG 12 Responsible Consumption and Production – especially ensuring that projects produce healthy and nutritious food in ways that minimise resource use and are sustainable and environmentally friendly.
• SDG 13 Climate Action – especially ensuring that productions systems and products do not exacerbate climate change, but build in positive contributions to lowering climate impacts (for example, agro-forestry, silvo-pastoral systems etc.).
• SDG 14 Life below Water – especially protecting marine life, water quality, preventing agricultural run-offs, dead zones in the oceans, polluted waterways etc.
• SDG 15 Life on Land – especially preventing biodiversity and habitat loss.
• SDG 17 Partnership for the Goals – especially ensuring that PPPs support the achievement of the SDGs across all areas.

8- Who are the main stakeholders for effective design, implementation and reporting on agri-PPPs in Ghana?

Government, financial institutions, international development organisations, non-governmental organizations.

Thank you colleagues for managing this discussion on PPP. It is quite timely. ... PPP has potential for Leveraging Finance? YES. But for this to be reliased, I think there is a need for mutual understanding on access to finance, especially to the poor. I strongly believe that this is a highly misunderstood sector. For example microfinance institutions (MFIs) have expanded their operations in many African countries, now penetrating virtually every village, and reaching the very poor. They are playing a great role in supporting the poor access alternative financial services than the exploitative individual money lenders, pawn shops, etc. The beneficiaries (rather customers, clients) are appreciative of their existence, and regularly using the service. ... Unfortunately, so far, these financial service providers have been going alone, not integrtated with other service providers (e.g agric, health, value chains, etc), -- services which also target SAME poor!! This greatly limits their potential positive impact on their customers. ... Why no integration? Two answers: 1) The financial service providers do not bother much about to integrate with other service providers (or the potential positive impact on the poor). 2) The other service providers also do NOT bother about such integration, regardless of the potential impact. And, perhaps 3rd, the other service providers consider the financial service providers are just there to MAXIMIZE profit (as the Individual money lenders, which they said they are replacing!). Most important, there is no agreement, or consensus on the INTEREST RATE the financial service providers are charging. And there has not been any forum which gives attention to such issues.... Can this forum be the one to highlight on this very important issue... I look forward to hear from you all... Regards, Getaneh.

PPP is a contractual agreement between the government and other stakeholders in the private sector for the general good of developing a nation. In the establishment of PPP in agriculture, it is highly imperative that partners' roles are clearly defined for both the public and private partners involved. Failure to define partners' roles could jeopardize the partnership. For instance, consider a case of Nigerian farm inputs distribution system - fertilizer. Nigerian government has successfully established a well-defined roles for the private and public partners in the ewallet fertilizer policy.  As an architect for enabling environment, government has been able to achieve "crowd-in effect" for the private partners in the fertilizer industry, thereby, increasing access and use of fertilizers among small holder farming population. 

English translation below

Bonjour à tous,

J'ai lu le thème de la discussion que je trouve très intéressant, parce qu'il aborde un domaine dont dépendra l'essor économique et le développement de l'Afrique : le développement de la chaîne agriculture-agroindustrie, à travers le développement du partenariat public-privé (PPP). A cet effet, il me plaît bien de répondre aux questions une à une.

 Qu'entendez-vous par partenariat public-privé dans l'agro-industrie (PPP agricole) ?

Réponse: Le PPP agricole est l'implication et la mobilisation des investissements privés et publics dans les activités de promotion de la chaîne agriculture-agroindustrie dans un pays. 

Quelle est l'utilité des PPP agricoles dans le contexte ghanéen? Veuillez donner des exemples.

Réponse: L'utilité des PPP agricoles au Ghana comme dans les autres pays africains tient à la mise en synergie des forces du secteur privé avec celles du secteur public pour relever le défi du développement agricole et agroindustriel. Il s'agit de respecter les principes de chaque partie pour que la synergie soit réelle. Car, pendant que le secteur privé vise le bénéfice et la rentabilité, le secteur public doit veiller à la création de la richesse et de l'emploi, à la croissance économique d'ensemble et le développement. Il y a donc nécessité pour le secteur public de cibler les volets d'investissements propices à la rentabilité et de les confier au secteur privé, pour par la suite prélever des taxes et impôts pour soutenir l'Etat dans la satisfaction des besoins d'intérêt général (santé publique, justice, sécurité, éducation, infrastructures, ...). 

D'après votre expérience, quels sont les facteurs clés pour une mise en œuvre réussie des PPP agricoles?

Réponse: Les facteurs clés pour une mise en oeuvre réussie des PPP agricoles seraient la rentabilité des activités pour le privé, l'équité, la qualité de la justice, la transparence et la pritection des entreprises privées contre les faillites. Il faudra donc assurer le bon fonctionnement du marché.

Comment pouvons-nous protéger les petits exploitants et partager équitablement les risques, tout en veillant à ce que le PPP agricole soit attrayant pour les investisseurs privés?

Réponse: Je crois qu'il ne s'agit pas de protéger les petits exploitants. Il faudrait plutôt les organiser de manière à leur permettre de rentrer dans la dynamique des grandes productions pour soutenir l'agroindustrie.

Quels changements/réformes politiques faut-il appliquer pour améliorer l'investissement privé dans l'agro-industrie au Ghana dans le cadre des PPP?

Réponse: Améliorer le climat des affaires (Doing business) par des textes réglementaires et légaux motivants pour le secteur privé. 

Quels arrangements institutionnels sont nécessaires pour promouvoir les PPP agricoles au Ghana pour assurer un engagement et un investissement efficaces du secteur privé dans l'agro-industrie au Ghana?

Réponse: Améliorer le climat des affaires, par des services administratifs de qualité et rapides, afin de garantir l'efficacité et la rentabilité des activités.

Comment coordonner le soutien à un accroissement des investissements privés dans l'agro-industrie par le biais des PPP?

Réponse: Maintenir toujours un bon climat des affaires et garantir la sécurité, la promptitude de la justice et la qualité des services bancaires. 

Comment les progrès dans la mise en œuvre des PPP agricoles au Ghana devraient-ils être documentés et notifiés?

Réponse: Le développement des PPP agricoles devrait être inséré dans un processus de recherche, de suivi-évaluation et de renforcement des capacités des acteurs. Cela permettra de suivre la dynamique de l'évolution du secteur agricole et d'opérer à temps les ajustements nécessaires en termes de recherche, de formation et de publication scientifique.

Hello everyone,

I have read the theme of the discussion, which I find very interesting because it addresses an area on which Africa's economic growth and development will depend,  that is the development of the agriculture-agro-industry chain, through the promotion of public-private partnerships (PPP). To this end, I would like to answer the questions one by one.

What is your understanding of Public Private Partnership in agribusiness (agri-PPPs)?

Answer: Agri-PPPs involve and mobilize private and public investments in activities aimed at promoting the agriculture-agro-industry chain in a country.

How useful are agri-PPPs in the Ghanaian context?  Please provide examples.

Answer: The value of agricultural PPPs in Ghana, as in other African countries, lies in the synergy of private and public sector forces to address the challenge of agricultural and agro-industrial development. This means respecting the principles of each party so that the synergy is real. Indeed, while the private sector seeks profit and profitability, the public sector must ensure the creation of wealth and employment, overall economic growth and development. Therefore, it is necessary for the public sector to target the investment components conducive to profitability and to entrust them to the private sector, in order to subsequently levy taxes to support the State in meeting the needs of general interest (public health, justice, security, education, infrastructures, etc.).

From your experience, what are the factors key to the successful implementation of agri-PPPs?

Answer: Key factors for the successful implementation of agricultural PPPs would be the profitability of activities for the private sector, equity, quality of justice, transparency and protection of private companies against bankruptcy. It will thus be necessary to ensure the correct functioning of the market.

How can we protect smallholders and share risks fairly, while at the same time ensuring that the agri-PPP is attractive to private investors?

Answer: I don't think it is a case of protecting small farmers. They should rather be organized so as to enable them to enter into the dynamics of large-scale production to support the agro-industry.

Which policy changes/reforms are required to improve private investment for agribusiness in Ghana through PPPs?

Answer: Improving the business climate (Doing business) through regulatory and legal instruments which motivate the private sector.

Which institutional arrangements are required to promote agri-PPPs in Ghana for effective engagement and investment of the private sector in agribusiness in Ghana?

Answer: Improving the business climate, through quality and timely administrative services, to ensure the efficiency and profitability of operations.

How should support for increased private investment in agribusiness through PPPs be coordinated?

Answer: Maintaining a good business climate and guaranteeing security, prompt justice and quality banking services.

How should progress on agri-PPPs implementation in Ghana be documented and reported?

Answer: The development of agricultural PPPs should be part of a process of research, monitoring and evaluation and capacity building of stakeholders.. This will facilitate the monitoring of the dynamics of agricultural development and the timely adjustment of research, training and scientific publication.