Cover_Rebuilding West Africas Food Potential

XXXII Rebuilding West Africa’s food potential

is linked to the localized nature of a captive dairy market with only one operating agriprocessor within

the region. These conditions strongly favour a closer business relationship featuring coordination and

collaboration.

Public-private partnerships for value chain development

Both the public and private sectors are essential players in the rebuilding of the region’s food potential,

but with different roles and objectives. Public-private partnerships can be an effective instrument for

creating the synergies required to achieve competitive and inclusive value chains. There are a number

of best practices to illustrate how these can work in staple food value chains. One example is from

the rice value chain in Senegal, where the government, concerned about improving local rice supply,

has supported the creation of a privately-led consortium to process and distribute local rice to urban

markets through a network of rice importers. The consortium is composed of 13 import marketers and

6 producer organizations, plus processors. Within a short period, the company managed to improve the

rice quality offered into the market; it was also working on building up rice collection and processing

capacity, which requires heavy investments in processing machinery.

A second example is from Ghana, which started the Outgrower and Value Chain Fund (OVCF). Through

this programme, the government aims to improve access to medium-term and long-term financing for

productive investment by small-scale farmers participating in outgrower schemes. The OVCF facility

brought together farmers, technical operators (processors, exporters or aggregators) and banks. Several

factors have contributed to the success of the OVCF programme, including: (i) a tripartite contract

arrangement (between farmers, technical operators and banks); (ii) provision of quality technical and

financial services and access to information; and (iii) transparent pricing and knowledge of financing for

value chain links by participating banks. A noteworthy feature of the programme is the enforcement of

merit-based eligibility criteria for each of the three main categories of stakeholders.

Another successful case of a public-private partnership, also from Ghana, is the government-supported,

privately-led Root and Tuber Improvement and Marketing Programme (RTIMP). The programme offers

services to cassava producers and processors to enhance post-production stages. The RTIMP works

with cassava producer groups and focuses on productivity-enhancing activities, such as multiplying

and distributing improved planting material and supporting good practice centres, exposure visits and

financial analysis of chain activities. The programme also supervises a network of small plots in which

participating farmers grow improved varieties, as well as good practice centres to process cassava using

standardized equipment. A noteworthy feature of the programme is that farmers are required to pay

for all training services they receive. Another crucial criterion is pre-screening for producer groups to

ascertain readiness before enrolment. To ensure sustainability of the programme, a business advisory

committee focuses on self-financing options as part of an exit strategy when the government/donor

funding support ends.

2.4 Examining the critical role of intra-regional trade in rebuilding West Africa

food potential

Enhancing access to markets, whether local, regional, or international, is the basis for sustainable

food value chain transformation in West Africa. Yet there is strong evidence that this region as a

whole continues to undertrade, compared with its potential, with intraregional trade being particularly

weak. Locally grown maize, for example, only accounted for three percent of Economic Community