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Action Plan for Developing Agricultural Input Markets in Africa: Evidence and Strategies

This document presents an actionable framework aimed at enhancing Agricultural Input Markets (AIMs) in Africa, based on studies conducted by IFDC and supported by USAID. It outlines the collaborative efforts to improve input supply systems, including seeds, fertilizers, and crop protection products. The findings highlight key constraints—such as high input prices and poor accessibility—and propose measures for enhanced efficiency. The report underscores the potential of the private sector and emphasizes a holistic approach involving public-private partnerships, government commitment, and sustained donor support to drive agricultural productivity.

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Action Plan for Developing Agricultural Input Markets in Africa: Evidence and Strategies

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  1. An Action Plan for Developing AIMs: Evidence From Africa By B. L. Bumb, Program Leader and Principal Scientist—Economics, IFDC Presented by Ian Gregory, Director, MDD, IFDC

  2. Genesis • USAID/Carter Center Study, 1997 • IFDC/SG 2000 Partnership Work, 1998-2000 • USAID-Funded Strategic Framework for Developing Sustainable Input Supply Systems in Africa, 1998/99 IFDC

  3. The Framework • Collaborative Effort • Seed, Fertilizers, and CPPs • Holistic Approach • Validation Workshop • Action Plans to Test the Framework IFDC

  4. Action Plans • Completed • Malawi • Nigeria • Ghana • Uganda • Planned • Zambia • Tanzania IFDC

  5. Nature and Scope • Functioning and Performance of AIMs • Constraints Affecting Their Performance • Measures Needed to Make Them More Efficient • Potential of the Private Sector IFDC

  6. Findings—Functioning and Performance • Underdeveloped and Fragmented • High Input Prices • Poor Accessibility • High Transaction Costs IFDC

  7. Findings—Constraints • Macropolicy Constraint • Market Development-Related Constraint • Technical Constraints IFDC

  8. Constraints Affecting AIMs in Africa IFDC

  9. Findings — Potential Potential of the Private Sector Is Good but Constrained IFDC

  10. The Approach • Supply Side of the Market Equation • Shifting the Supply Curve to the Right • Technology Transfer Efforts IFDC

  11. The Conceptual Framework: The SSCR Approach* *Shifting the Supply Curve to the Right. IFDC

  12. Measures Needed to Make AIMs More Efficient • Policy • Human Capital • Finance • MIS • Regulatory Frameworks • Technology Transfer Efforts IFDC

  13. Policy Human Capital Regulatory Mechanisms Finance MIS Market Development Process Holistic Approach IFDC

  14. Institutional Arrangements • Holistic Approach • Public-Private Partnership • Government Commitment • Donor Support IFDC

  15. Public-Private Partnership • Identification of Roles • Private Sector — Directly Productive Activities • Public Sector — Public Goods and Externalities • Identification of Areas • Market Information • Technology Transfer • Regulation/Quality Control • Risk Management • Implementation of Action Plan IFDC

  16. Government Commitment • Maintain Market-Friendly Policy • Invest in Infrastructure and Institutions • Implement Market Development Projects IFDC

  17. Donor Support • Abstain From Creating Distortions • Strengthen the Process of Marketization • Provide Funds for the Implementation of Market Development Projects IFDC

  18. Conclusion • It’s the beginning, not the end. Well-functioning AIMs will lay the foundation for enhancing agricultural productivity in Africa. • With government commitment and long-term donor support, it can be achieved. IFDC

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