Delivering quick wins

1. Delivering quick wins Agriculture

2. Agenda Introduction Future structure Reminder of lab outputs Quick wins and action plans Next steps

3. After successful labs, the momentum has to be kept up to deliver big results now Focus • Important milestones have been achieved … • … and delivery needs now to be pushed • Deliver results ü • 6 labs conducted • Identify “quick wins” and ensure delivery of visible results until open day ü • 3-feet plan for all initiatives developed • Ensure on-track progress on 6-month implementation plans ü • Lab recommendation presented to cabinet • Setup delivery bureau • Set up formal PDB • Formalize ecosystem and interactions ü • Lab reports fully signed-off by government of Tanzania • Initialize KPI tracking and reports

4. Major focus should be on delivering quick wins until end of May, while on-track progress has to be ensured for midterm (6 months) results • Apr • May • Jun • Jul • Aug • Sep • Oct • Deliver visible quick-win results • Ensure on-track progress (6 months) • Identify initiatives that can be implemented within the next 3-5 weeks (end of May) and will show visible results -so called quick wins • Assign responsibilities to each of these initiatives • Ensure weekly problem-solving meeting within ministries and with key stakeholders to ensure rapid progress • McK/ Pemandu team will support implementation of quick wins • Identify all initiatives which start within the next 6 months • Make leadership of ministries aware that 3-fleet implementation tracking incl. scorecards will start already in May • Ensure that responsibilities are assigned to these initiatives and that ministries set up regular meetings

5. To get started, a couple of questions have to be discussed with the ministry leaderships Get status regarding lab reports • 1 • Have ministers/ PS received detailed lab reports (incl. 3-feet plan)? • Have ministers/ PS read lab reports? Do they buy-in? Discuss plans to communicate 3-feet plans • 2 • How will lab report and 3-feet plan be communicated to ministry departments, agencies and regions? (need of kick-off?) • Is there a need to update 3-feet plans? Identify and align on quick wins • 3 • Identification of quick wins • Assignment of responsibilities to quick wins Align on KPIs and 6-month progress • 4 • Identify initiatives that start within next 6 months • Create awareness of KPIs and rating procedure Agree on future working routine • 5 • Schedule next meeting with PS/minister • Prepare assignment of responsibilities to quick win initiatives • Discuss/agree on working routine (i.e., 2 problem solvings/week)

6. Agenda Introduction Future structure Reminder of lab outputs Quick wins and action plans Next steps

7. Big Results Now! – Tanzania’s delivery system • President • Level 1: Governance and prioritisation • Transformation & Delivery Council • CEO reports to President • President’s Delivery Bureau (PDB) • Performance dialogue • Level 2: Performance management and problem-solving • PDB support to NKRASteercos • PDB runs labs • Updates on lab implementation • Ministers • MDU reports to PS / Minister • Lead Ministries & their MDUs • Level 3: Implementation and execution • Delivery labs • NKRA Steering Committees • Prepares plans • Implements plans

8. NKRA governance structure 1 • Transformation & Delivery Council • Meets monthly but NKRA reports quarterly • Minister and Steerco presents key progress made to President as well as any challenges President (chair) Secretariat: PDB • Members: • CS, PS-PMO, BOT, CEO • POPC, PS-MOFEA 2 • NKRA Steering Committee (meets ~1/month) • Monitor progress on NKRA delivery. • Problem-solves issues in delivery, escalating to TDC if cross-ministerial issues are involved. • Identify and resolve ministry skills gaps. • Prepare for TDC meetings and other review meetings (e.g., the performance dialogue between the President and relevant Minister). NKRA Steering Committee Chair: Lead Minister Secretariat: Ministry Delivery Unit (supported by PDB) • Potential members: • Permanent Secretary • PDBDirector • Ministry of Finance lead • Agency representatives • Private sector members 3 • Working level: • Meets ~1-2/week • Progress update by each initiative • Deep dives on key challenges and areas needing discussion / agreement by members of NKRASteerco • Sharing of plans for month ahead Ministry delivery unit – core team Initiative 1 Initiative 5 Initiative 2 Initiative 3 Initiative 4

9. Agenda Introduction Future structure Reminder of lab outputs Quick wins and action plans Next steps

10. The Agriculture Lab focused on 3 objectives achieved through commercial farming and smallholder aggregation • Increase agriculture GDP growth • Commercialfarming • Impact • Smallholderaggregation • Impact • Social inclusion & sustainability • Increase foodsecurity • Increase smallholder income • Impact

11. We have 3 big ideas to transform agriculture in Tanzania • 25Commercial farming deals for paddy and sugarcane • Commercial farming • 1 • 78Professionally managed collective rice irrigation and marketing schemes • 2 • Smallholder aggregation • 275 Collective warehouse based marketing schemes “COWABAMA” • 3

12. We want to achieve Big Results Now by 2015 • 350,000 hectares1new commercial farm land • 330,000 hectares smallholder farm land enhanced • 150,000tonnessugar crop planted • 290,000tonnesnew rice production • 100,000tonnesnew maize production • 400,000smallholders involved in commercialand smallholder schemes • Initial focus on3 crops: initiativebenefits extendthroughoutthe sector2 1 Not including area occupied by outgrowers 2 Second wave of priority crops to include horticulture, oil seeds

13. Access to land and an enabling business environment are needed to ensure investments into 25 sites • 1 • Action • Description • Result • i • Create a Special Lands and Infrastructure Task Force • Atemporary cross-agency team to accelerate securing land title, building infrastructure and conducting agro-ecological studies for 25 land parcels • 25 sites ready for investment • CCROs for smallholders ü • ii • Conduct community engagement • Communities readyfor engagement with investors • Conduct “pre engagement” training to educate communities on business, good agriculture practices and farmer organization ü • iii • Develop standard tender assessment criteria and Term Sheet • Create standard meritocracy assessment criteria to award sites to investors • Create prototype Term Sheet including “investment incentive package”, terms and conditions and KPIs • 25 high quality commercial agriculture investors ü • iv • Uplift mandate of TIC and Investor Complain Bureau • Efficient “one stop center” for investors, and avenue to address investor issues • Dedicated unit within TICresponsible for attracting investors, coordinating applications, addressing complains and monitoring compliance ü • Together with selected interventions – ensuring availability of rice seed and developing industry associations – we believe that 25 deals can be pushed through the pipeline by 2015

14. 1 We resolved some of the bottlenecks to accelerate closing of the Bagamoyo Eco-Energy sugar project in the Lab • v At risk because of bureaucracy and Government inefficiency Large scale iconic project inTanzania, with high potential impact We used a “pressure cooker” to resolve issues … Pushed AG Chambers to give immediate feedback on key documents Renegotiated water rights from 5 to 30 years • Production of 150,000T of sugar, 11,000cbm ethanol and 32MW electricity • 2,300 direct jobs, 10,000 indirect jobs • 2,000outgrowersproducing about 300-400tonnesof sugar Accelerated Implementation and Shareholder’s Agreement … to bring the deal closer to financial closure

15. 2 The smallholder rice farmers will have a ‘one stop shop’ for all the services they require Existing structure Proposed model Input supplier Buyer/processors Input supplier Extension services Irrigators Organisation (IO) supported by Professional management Smallholder farmers Financial services Extension services Warehousing Warehousing Aggregated smallholder farmers Financial services Buyers/processors • IO currently only manages irrigation services • Farmers do not receive support, and must fend for themselves • IO services are boosted by professional management from private service provider • Farmers can rely on IO for support

16. 3 275 collective warehouse based marketing schemes will provide farmers with access to the market • Maize farmers lose out to high post-harvest losses andlow farm gate prices… • Existing warehouses are rehabilitated • Professional Service Provider organises farmers, manages warehouse operations and links farmers to buyers WHAT’SDIFFERENT? … farmers receive a higher farm gate price for a quality product

17. High level implementation plan • Jan 2014 • Jun2014 • Jan 2015 • Jun 2015 • … to • TDV25 • Now • Year 1 • Year 2 • 25 Commercial farming deals for paddy and sugarcane • Closed deals and commenced operations for 5 pilot sites and capture lessons • Closed deals and commenced operations for 20 additional sites • 78 Professionally managed rice irrigation and marketing schemes • Contract Service Providerfor 8 districts • 78 sites operational • Commodity exchange established • Capacity enhancement of farmer organisations to manage 78 schemes • Trading of rice through commodity exchange • 275 Collective warehouse based marketing schemes (COWABAMA) • Completed assessment of 275 sites • Commenced rehabilitation of 100 sites • Contract service provider • 100 schemes operational • Rehabilitation underway on an additional 175 sites to begin operations July 2015

18. Agenda Introduction Future structure Reminder of lab outputs Quick wins and action plans Next steps

19. Assess and profile 275 maize warehouses • Initiative description • Necessary actions and responsibilities • The Government of Tanzania has made a decision that the Agriculture NKRA component of the President’s Delivery Bureau will be the ADA – on a “first among equals” principle • Action • Responsibility • Step • Advertise tenders and awards a consultancy firm to assess and profile 275 existing warehouses 1 2 • Organize inception meetings to get buy in from key stakeholders • MAFC and ASLMs • MAFC, MDU • Expected quick win • Awarding of tender to consultancy firm to assess and profile 275 existing warehouses SOURCE: Post lab team

20. Establish a special Land and Infrastructure Task Force • Initiative description • Necessary actions and responsibilities • Aims to obtain land titles and build infrastructure in 25 sites for commercial agriculture. The cross-ministerial Task Force will be empowered to resolve all outstanding issues. • Responsibility • Action • Step • Conduct desktop exercise to overlay maps from all relevant agencies to determine if boundaries are consistent • Prepare and distribute Land for Equity principles and guidelines 3 1 2 • Create the Task Force. Identify members, develop terms of reference, appoint members, and inaugurate Task Force. • MAFC (via Mary Shetto), PMO • Ministry of Lands • Ministry of Lands • Expected quick win • Set up a special Land and Infrastructure Task Force SOURCE: Post lab team

21. Ensure soil and water suitability for 25 sites and sharing of relevant data • Initiative description • Necessary actions and responsibilities • Appoint and equip one stop shop/center as a custodian of agricultural related resource data for 25 investment areas • Action • Responsibility • Step • PS-PMO to convene one day meeting to set the mechanism for sharing Agricultural Resource related Data (ARD) 1 2 • PS-PMO to appoint and announce TIC as custodian of all agricultural resource related data for investments • PS - PMO • PMO • Expected quick win • PS-PMO to appoint and announce TIC as custodian of all agricultural resource related data for investments SOURCE: Post lab team

22. Conduct community education and awareness programs • Initiative description • Necessary actions and responsibilities • To educate communities on business, good agriculture practices and farmer organization • Action • Responsibility • Step • Identify district members from 5 sites to join the ministerial team. Conduct seminar and field studies. 1 2 • Create Inter-Ministerial team of 24 people to develop concept note for undertaking field studies on Community training needs. Develop tools for undertaking community training needs • Director of Training - MAFC • DEDs • Expected quick win • Develop module and tools for community field training, education, and awareness programmes SOURCE: Post lab team

23. Ensure sufficient rice seeds for commercial farms and outgrowers • Initiative description • Necessary actions and responsibilities • Promote use of few selected high yielding seed varieties to improve rice productivity • Action • Responsibility • Step • Negotiate further specifics (Qty:ASA 3,500tons, TanSeed 1500tons, Agri Seed 250tons; variety, funding, timing, sale price). MAFC and seed companies to sign contract. 1 2 • MAFC to finalize terms and sign MoU with seed producing companies (ASA, TanSeed International, Agric Seed Tech) • PS - MAFC • PS - MAFC • Expected quick win • Sign MOUs and contracts between MAFC and seed companies SOURCE: Post lab team

24. Institutionalize the new “fast track process” for NISC to grant “Strategic Investor” status • Initiative description • Necessary actions and responsibilities • Part of initiative to create transparent “one stop center” for agriculture investors • Action • Responsibility • Step • PM’s Office convenes NISC meeting to approve new process 1 2 • TIC to convene meeting with NISC Technical Committee to discuss and finalize process • TIC • PS - PMO • Expected quick win • Work with relevant government agencies to create a standardized "investment incentive package" that includes standard terms for investments (e.g. tax exemptions, non-tax incentives) and penalties in case of non-compliance on the part of investors SOURCE: Post lab team

25. Agenda Introduction Future structure Reminder of lab outputs Quick wins and action plans Next steps

26. Next steps • Establish work routine with the team • Confirm budget allocation for proposed initiatives • Assemble and inform stakeholders • Other?