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Returns to investments in fertilizers production in Kenya

An analysis in support of the new “Agriculture Sector Growth and Transformation Strategy”










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    Book (stand-alone)
    Public expenditure on food and agriculture in sub-Saharan Africa
    Trends, challenges and priorities
    2021
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    Monitoring and analysing food and agriculture policies and their effects is crucial to support decision makers in developing countries to shape better policies that drive agricultural and food systems transformation. This report is a technical analysis of government spending data on food and agriculture during 2004–2018 in 13 sub-Saharan African countries – Benin, Burkina Faso, Burundi, Ethiopia, Ghana, Kenya, Malawi, Mali, Mozambique, Rwanda, Senegal, Uganda and the United Republic of Tanzania. It analyses the level of public expenditure, including budget execution, source of funding and decentralized spending, as well as the composition of expenditure, including on producer or consumer support, research and development, infrastructure and more to reveal the trends and challenges that countries are facing. It also delves into the relationship between the composition of public expenditure and agricultural performance. As a way forward for future policymaking, the report offers a set of recommendations to strengthen policy monitoring systems and data generation for effective public investments in food and agriculture. The report is produced by the Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme at FAO in collaboration with MAFAP country partners.
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    Brochure, flyer, fact-sheet
    Analysis of public expenditure in support of the food and agriculture sector in Ghana, 2006-2012 2014
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    This technical note offers an in-depth study of the level, composition and coherence of public expenditure in support of food and agriculture in Ghana using data collected from the Ministry of Food and Agriculture (MOFA), the Ministry of Finance (MOFEP) and 13 development partners active in the country1. The study uses the MAFAP methodology for agriculture public expenditure analysis (MAFAP, 2013) and covers the 2006-2012 period. The summary of the study is presented below. First of all, the sha re of total public expenditure in support of food and agriculture, including administrative costs (EFAAC) within total public expenditure was rather low between 2006 and 2012, fluctuating between 3 and 5 percent. Secondly, the composition of total public expenditure in support of food and agriculture, excluding administrative costs (EFA) varied significantly during these years. The MAFAP methodology distinguishes between agriculture-specific expenditure (monetary transfers that are specific to t he agricultural sector, i.e. agriculture is the only, or principal, beneficiary of a given expenditure measure) and agriculture-supportive expenditure (public expenditures that are not specific to agriculture, but which have a strong influence on agricultural sector development)2. The distribution of EFA between agriculture-specific and agriculture-supportive expenditure evolved from being equilibrated in 2006 to being biased towards agriculture-specific expenditure in 2012, which shows that pub lic investments towards agriculture have been specializing through time. Within agriculture-specific expenditure, a major trend was the substantial increase in the share dedicated to payments to producers in the form of fertilizer subsidies from 2006 to 2012. Concomitantly, the share of agriculture-specific expenditure allocated to agricultural research and knowledge transfer activities (training, technical assistance and extension) decreased sharply, and the proportion of spending on marketing and agricultural infrastructures went up. The driving factor behind this expenditure pattern appears to be a change in the main components of World Bank-funded interventions in the agriculture sector following the introduction of the Medium Term Agriculture Sector Investment Plan (METASIP) by the Government of Ghana (GoG) in 2009.
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    Book (series)
    Agricultural policy incentives in sub-Saharan Africa in the last decade (2005–2016)
    Monitoring and Analysing Food and Agricultural Policies (MAFAP) synthesis study
    2018
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    The study summarizes the results emerging from the 2017 update of the Monitoring and Analysing Food and Agricultural Policies (MAFAP) indicators for the 2005-2016 period for 14 sub-Saharan African countries. These indicators - comparable across commodities, countries and years - are commonly used to assess the extent of policy support in agriculture. They measure the effect of trade and market policies and inefficiencies on the degree of price incentives faced by farmers in key commodity value chains, as well as the level and composition of public expenditures in support of the agriculture sector. Despite results being very heterogeneous across countries and commodities, aggregate figures indicate that price incentives to agriculture are overall increasing across the period. Policies focused on supporting domestic production, through import tariffs and price support, are likely to be the main drivers of such a trend, following the food price crises period (2007–2011) when policy-makers were mainly concerned about consumer protection. Despite that, market inefficiencies still persist as a source of price disincentives to farmers and a major constraint on agricultural development. Consistently, public expenditure indicators confirm that direct budget transfers in support of producers, mainly in the form of input subsidies, continue to represent the largest part of agriculture expenditure in most countries. In general terms, only a few countries increased the share of agricultural expenditure within total public budgets in 2015. Expenditures on research and knowledge dissemination are overall stagnant or declining. Food crops continue to dominate public budgets while spending on cash crops or “innovative” products as well as on value chain integration and commercialization remains limited. Some efforts to convert resources that were previously allocated to input subsidies into investments in agricultural and rural infrastructures are seen.

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