PUBLIC PRIVATE PARTNERSHIPS IN AGRICULTURE (AGRI-PPPs)

By HAPPY MULOLANI Calls for innovative partnerships aimed at bringing together actors such as business, government, smallholder farmers and civil society have come to the fore. This is in response to limited government resources and expertise. This approach of bringing together these actors is a well orchestrated mechanism with a view to improve productivity and foster growth in various sectors, referred to as Public-Private Partnerships (PPPs). Through such initiatives, the possibilities of contributing to transform the agriculture sector and heightened multiple benefits are expected to assist in pursuing sustainable agricultural development which includes smallholder farmers. With respect to enhancing agriculture development, PPPs are much focused on responding to food security, wealth creation and the viability of rural areas. Agri-PPPs also have the capacity to not only “leverage finances, share risks fairly, develop innovations but also create market access for all players” (MAL Concept Note, 2019). However, Agri-PPP is often deemed to be externally positioned in the context of the conventional institutional framework for PPP governance. Agri-PPP naturally consists of lower scale of investment, multi-stakeholder involvement, and largely puts emphasis on social objectives such as food security and poverty reduction (MOA Concept Note, 2019). The foregoing has presented some challenges implementing the Agri-PPPs due to lack of clear guidelines and regulations to enable contracting authorities and the private sector have specific focus. Further, the present existing institutional set-up for PPPs mostly focus on infrastructure projects, which are characterized by a larger scale of capital investments, commercial risk and contractual arrangements which are different from most common types of Agri-PPPs (FAO, 2016). This status quo has culminated in a series of appraisals and discussions in scaling up appropriate interventions aimed at supporting the agriculture sector through the Agri-PPPs in order to enhance development. This has led to Food and Agriculture Organization (FAO) and the African Union (AU) to spearhead the formulation of guidelines and regulations which support agriculture development in the Zambian context in August, this year. In a recent, multistakeholder meeting to formulate guidelines for Agri-PPPs in Zambia, Food and Agriculture Organisation (FAO) Country Representative George Okech observes that despite the opportunities the agriculture sector presents, it still remains unattractive to the private sector investors and financial institutions for varied reasons. Mr. Okech cites some of the constraints such as low volumes and inconsistent quality of produce, lack of business and technical skills which has also resulted in limiting access to supportive services such as finance and advisory, limitations of access to domestic and regional markets, low adoption of modern technology and lack of consistent policies which govern the agricultural sector. However, he expresses optimism that the role of private sector in agricultural transformation is key as it continues to complement the existing public sector efforts, specifically to enhance development of strategic agricultural value chains, both at national and regional levels. For this reason, the public sector needs to re-position itself by creating and maintaining conditions that favour investments in agribusiness and agro-industries by the private sector. “PPPs are a significant mechanism for attracting investment and technical expertise and have the potential to transform the agricultural sector and deliver multiple benefits that can contribute towards the pursuit of inclusive agricultural development,” retaliates Mr. Okech. And FAO Agribusiness Officer Stepanka Gallatova based in Rome shares her sentiments that there is a lot of interest generated around PPPs not only in Africa but globally. It seems as a mechanism for agriculture. This is premised on the fact that over 60 percent of sub-Saharan African countries depend on agriculture for their income and employment, mainly in small-scale farming. Ms Gallatova explains that bodies such as Comprehensive Africa Agriculture Development Programme (CAADP), New Partnership for Africa’s Development (NEPAD) and Malabo declaration have all focused on transformation of the agriculture sector on the African agenda, which is as a result of the many opportunities the sector presents to its populace. “Transformation of the African agriculture sector is important but needs huge injection of funds. Clearly the public sector needs to be supported because they cannot do it by themselves, which is why PPPs are key to sustain the process,” says Ms Gallatova. Ms Gallatova reveals that over 11million youths who join the job market each year are likely to be absorbed by the agriculture given the opportunities the sector presents. Due to these constraints, there is limited investment, agricultural value chains are not operating at optimum efficiency due to poor infrastructure, lack of appropriate technology and limited market access. Ministry of Agriculture Permanent Secretary Songowayo Zyambo highlights the importance of transforming the agriculture sector through the Agri-PPPs. He says the need to adopt best practices is key in ensuring productivity among smallholder farmers. And Ministry of Fisheries and Livestock Permanent Secretary Benson Mwenya says PPPs need to re-look at the private sector supporting the public sector. He cites government’s development of aquaculture parks as one of the investments that the private sector needs to support if they are to be viable. And Technical Working Group lead Christopher Mbewe says identified partnerships which include private, public and joint partnerships need to be supported by the national agriculture policies. “Though Zambia has a national PPP Act, but it focuses more on a large scale infrastructure PPPs. Instead, this notion has to include specificities of PPPs in the agriculture sector,” says Mr. Mbewe. He noted that critical aspects such as institutional arrangements, the provision of equity and acting as guarantors is important in ensuring that risks are taken care of. Mr. Mbewe observes the need for government to provide an enabling environment by ensuring that proper policies are put in place. “The Ministry of Agriculture and Ministry of Fisheries and Livestock needs to be seriously considered if identified Agri-PPPs are to succeed in the Zambian context,” he says. And National Small-Scale Farmers Union President Frank Kayula says the concept of Agri-PPPs is pivotal to improving productivity and fostering growth if key stakeholders properly target specific value chain commodities which can contribute to economic growth. Given the critical role which government is mandated to implement the national agriculture policies, Agri-PPPs have come at a time when the necessity for supporting smallholder farmers is evitable if the targeted enterprises within the agriculture sector are to be sustained. Clearly, Agri-PPPs if properly implemented and supported will not only result in sustained efforts that empower smallholder farmers to be viable but also improve extension services and create market linkages within identified value chains. In this way, the envisaged goals and priorities will ultimately contribute to agriculture development and growth of the economy.