AFC Worldwide 2022 by GOPA AFC

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AFC Worldwide Edition 2022

MEMBER OF GOPA CO NSULT ING GR O UP

AFC Agriculture and Finance Consultants GmbH is a private German consulting firm focusing on agricultural, agribusiness and financial development projects in developing and transition countries. AFC was established in 1973. In 2007, AFC became a member of GOPA Consulting Group, Germany’s largest group of consulting firms in development cooperation.

AFC Worldwide Edition 2022

AFC Worldwide 2022

EDITORIAL

Dear partners and colleagues, Working in a pandemic situation for two years now has been a challenge for all of us. In many countries, our offices as well as our partner structures were temporarily not or only partially operational. Nevertheless, our project implementation in 55 countries continued and contracting partners tendered new projects. The GOPA Group held its first GOPA Group Day in a successful hybrid format. We thank our partners and colleagues for their constructive cooperation under the special conditions! The new government in Germany will draw attention to organic agriculture, climate-adjusted production systems and intelligent ICT applications. Reliability, certification and improvement of national and international supply chains became important topics. In all these subjects, AFC relies on strong experiences gained in the last decades. We stay flexible and constantly adapt our working strategies to the new realities. In this context, we developed an online course on agricultural finance. Our team is more than willing to improve our services in agriculture and financial sector development permanently. In recent years, projects implemented under BMZ’s SEWOH focusing on income generation along agricultural value chains and supporting agricultural finance systems were essential for us. Our main activities in this respect took place in Ghana, Nigeria, Mali, Côte d’Ivoire, and India. We appreciate that an adjusted programme of BMZ/GIZ will continue under “One World without Hunger” (EWOH). Green, Gender and Digital Finance are emerging topics in which we assist financial institutions to tailor their products and services and thus reducing inequality and enhancing financial inclusion for example in Nigeria (AFI) and Ethiopia (GIZ) or raising awareness on climate risks in Armenia (KfW). Central Asia, where we are currently implementing nine projects on behalf of BMEL, GIZ, KFW and WB, has always been an important region for AFC. Counting three ongoing projects, Uzbekistan became a new focus for us. In this edition, we present a selection of our projects – some of them recently started such as in Ghana (GIZ/EU) and Egypt (BMEL), some ended such as in Niger (EU). In our headquarters in Bonn, we reduced our carbon footprint and are proud to be certified as a climate-neutral company since 2021, which is very much appreciated by our team. Enjoy reading this edition in electronic form or climate-neutrally printed on FSC-certified paper! Please share your views with our authors and follow us on LinkedIn for future frequent exchange.

Thank you!

Johannes Buschmeier Managing Director / CEO

TABLE OF CONTENTS

Editorial

GOPA Group Day 2021 – “With passion and in all diversity for a better tomorrow”

Our commitment to the environment – ISO 14001 certified and climate neutral

Pushing innovations

Extending our engagement in organic agriculture

AFC develops an interactive e-course on agri-finance

ICT in our projects

Map of selected projects

AFC’s current presence in Africa

Presenting selected projects in Africa

Understanding barriers to finance for Ethiopia’s agri-SMEs

Certification – a lever for agricultural SME exports from Senegal and Côte d'Ivoire

Policy dialogue – a powerful tool for governance of Niger's food and nutrition security and sustainable agricultural development sector

AFC supports Ghanaian MSMEs in the agribusiness

Closing the gender gap in Nigeria – strategy development for women’s financial inclusion

AFC’s current presence in Asia

Presenting selected projects in Asia

AFC’s presence in Central Asia

Women empowerment in agricultural value chains in India

Shaping the future of smallholder farmers in Thailand

Improving access to finance for farmers in Papua New Guinea

AFC’s current presence in MENA

Presenting selected projects in MENA

Quality assurance of plant products in Egypt

Competence Centre to strengthen the dairy sector in Tunisia

Supporting Morocco’s organic agricultural sector

AFC’s current presence in Europe and Caucasian Countries

Presenting selected projects in Europe and Caucasian Countries

Housing Finance Programme in Armenia - A decisive step towards reducing CO2 emissions

Strengthening Georgia’s business resilience in the finance sector

New staff

Expertise of AFC’s Financial Sector Development department

Studies for development cooperation

Expertise of AFC’s Agriculture and Agribusiness departments

In-house news

GOPA GROUP DAY 2021 – “WITH PASSION AND IN ALL DIVERSITY FOR A BETTER TOMORROW” The year 2021 called for digital formats and so the GOPA Group Day was held in a hybrid format. Normally the event takes place in presence every 3 years and only employees of the companies were invited to participate. The hybrid format allowed the first time to invite over 2,000 employees, project staff and experts to participate from all over the world. On 18th of May 2021, the GOPA Consulting Group’s CEO Dr. Martin Güldner welcomed all employees and experts worldwide to the first hybrid GOPA Group Day. A manifold programme led through the virtual day, in which every GOPA Group company had its appearance. The new premises of GOPA Infra in Zambia as well as the offices in Brussels of GOPA.com and B&S Europe were presented. Dr. Güldner drew attention to the future and called to:

in April 2021 (for more information see page 7). An even bigger success was the outcome of the panel discussion: the GOPA Group decided to become a certified climate-neutral company by the end of 2022. What a success for GOPA Group and AFC in particular! The event highlighted once more GOPA Group as a diverse, interdisciplinary and open company. We look forward to the next GOPA Group Day!

“Set the sails towards a greener tomorrow.”

AFC’s Director Mr Johannes Buschmeier was setting the scene with "passion for our projects and diversity as the basis of our actions", as he presented the project “Agricultural Knowledge and Training Centre in Zambia”. Accompanied by a video clip of the project team and further explanations by Mr Buschmeier, the audience gained an in-depth impression of the situation on site. In session 2 “Environment, climate and sustainable action for today and tomorrow”, AFC’s environmental officer Ms Catalina Berger presented and discussed the achievements during the last year with the other GOPA Group environmental officers. Under her guidance, AFC has been certified not only ISO 14001 in November 2020, but also as climate neutral company

Johannes Buschmeier during the panel discussion

Dr. Martin Güldner

Eva Raute and Catalina Berger discussing about AFC’s climate neutrality certification.

For further information, please contact:

Nina Thurn Project Manager ninakristin.thurn@afci.de

AFC’S COMMITMENT TO THE ENVIRONMENT – ISO 14001 CERTIFIED AND CLIMATE NEUTRAL Our headquarters in Bonn are located in a highly energy-efficient building, but we took the challenge to further reduce our environmental footprint.

In November 2020, AFC’s Environmental Management System (EMS) was certified according to ISO 14001. After evaluating the first full year of implementation from June 2020 to July 2021, we achieved tremendous success related to our main environmental aspects and goals. The reasons for the strong reduction in paper consumption are manifold – clients started accepting electronic upload of offers and digital storage of invoices among others. In addition, we introduced the digital signature for contracts and other documents to make printing obsolete. Increased consciousness of employees with regard to print only if not avoidable, print duplex contributed to the impressive result. For AFC’s office in Bonn, the following achievements could be reached in the first year of our EMS: GOAL

-4% ACHIEVED

Reduction of print-outs

-36.4%

Since 2020/21 have been exceptional years, so travel activities declined as conferences and meetings took place virtually. This helped us to reduce CO2 flight emissions to 80t in 2020 (compared to 261t CO2 in 2019). We work on minimising our CO2 balance by not-taking domestic flights, and assessing whether travelling by train can replace flights to neighbouring countries. Our energy consumption was cut by 27%. Small measures contributed to the result by switching off PCs, monitors, beamers and smartboards when they are not in use. However, the shift of activities to the home office has also contributed to the savings. In total, our carbon footprint in 2020 is 179t CO₂ stemming from flights, commuting, home office, heating/cooling and electricity consumption. All figures refer to our HQ Bonn. Holistic climate protection is based on the guiding principles to avoid, to reduce, and to offset unavoidable emissions. A Gold Standard project in Rwanda introduces efficient cook stoves made of local clay and sand, produced by a local cooperative and consuming two thirds less energy than three-stone fireplaces. By purchasing stakes in the project, our corporate climate footprint 2020 has been fully compensated. Since May 2021, AFC is a certified climate-neutral company. The challenge remains to avoid and reduce emissions whenever and wherever possible.

GOAL

-4% ACHIEVED

Reduction of copy paper

-58.8% GOAL

-1% ACHIEVED

-69.4% GOAL

-1% ACHIEVED

-27%

Decrease in CO2 emissions from HQ staff flights

For further information, please contact:

Reduction of energy consumption in our premises in Bonn

GOAL

-1% ACHIEVED

-1.75%

Reduction of water consumption

Catalina Berger Environmental Officer catalina.berger@afci.de

Pushing innovations

EXTENDING OUR ENGAGEMENT IN ORGANIC AGRICULTURE Organic agriculture is constantly growing and gaining more attention. Worldwide, the organic production size has increased from 49 million hectares in 2014 to more than 72 million hectares in 2019. At the same time, the international organic retail market grew from 61 billion euros to 106 billion euros.

Reflecting the development, AFC’s engagement in organic agriculture has increased – we are currently implementing 14 projects in the sector with an upward tendency compared to the last five years. Numerous specific aspects of the topic are relevant, such as setting up and improving local legislative frameworks and strengthening domestic marketing and export conditions. The latest development of the EU organic regulation became an important focus. In 2014, the European Commission initiated an update of the regulatory framework for organic production. After a long revision process, the EU Regulation 2018/848 on organic production and labelling of organic products entered into force on the 1st of January 2022. In one of our recently started projects, AFC organises trainings in order to identify the changes and the impacts on organic agriculture and processing activities. The activities focus on raising awareness and enhancing consultants’ specific knowledge of the differences between the former and the new organic EU regulation. Since the new regulation has an impact on global organic trade, these trainings will serve

as a sound basis for future training concepts, so that organic consultants are able to advise their clients adequately on the changes in law and their implications. Furthermore, AFC supports primary producers in good agricultural practices and by fostering organic associations. Some projects focus on knowledge management in the local language (for example in Ukraine: www.organic-platform.org) while others deal with export promotion (see graphic on page 9 and for more information on Morocco see page 36).

“Organic agriculture continuously gains importance for the economic development, consumer protection and the environment in Ukraine”, Taras Kachka, Deputy Minister of Economy and Trade Representative at the Project Steering Committee Meeting of AFC’s project “Cooperation in Organic Agriculture (COA)” on December 1, 2021

For further information, please contact:

Stefanie Maak Project Manager stefanie.maak@afci.de

AFC’s borderless engagement in organic agriculture

Moldova Kazakhstan

Ukraine

Tunisia

COA ATU

Algeria Morocco

Kyrgyzstan Uzbekistan

Mali Egypt Senegal

Ethiopia Côte d’Ivoire

Rwanda

Ghana Togo Namibia

Madagascar

Botswana Lesotho

South Africa

Working areas Legislative framework

Primary production

Marketing domestic

Associations*

Standards

Processing

Export promotion

Knowledge management

*both collaboration with and strengthening of

Pushing innovations

AFC DEVELOPS AN INTERAC TIVE E-COURSE ON AGRI-FINANCE In the course of 2021, AFC developed the e-course “Introduction to Agricultural Finance for Bankers”.

The interactive e-learning course targets loan officers of commercial banks and microfinance institutions in East Africa, who want to be equipped with the basic principles of agricultural finance and its operational approaches.

text elements and complementing reading material. The total duration of the course counts less than 10 hours. After successfully passing the quiz that captures material from all four learning modules, participants will obtain a certificate.

The course includes a custom-designed online platform, alternating unique video content with infographics, interactions,

Looking forward to seeing you and/or your colleagues taking part, too!

The main topics of the four e-course modules:

Introduction to the agricultural & agribusiness sector Agricultural value chains, actors within the value chain, and their financial needs.

Risk management Individual credit risks, loan portfolio risks, environmental and social risks, and the best ways to manage these risks.

Within the e-learning course, participants learn to: 1. 2. 3. 4.

Credit management The full lending cycle with particular attention to the appraisal phase of potential clients.

Financial products & innovations in agricultural finance Loans and insurance products, innovations such as agricultural value chain finance, warehouse receipt finance and digital financial services.

For further information, please contact:

Identify promising business opportunities in the agriculture and agribusiness sector; Assess and manage risks for individual borrowers and the loan portfolio as a whole; Conduct the steps of the credit cycle; Recommend the most suitable product to an agri-client. Ingrid Smit Project Manager ingrid.smit@afci.de

IC T IN OUR PROJEC TS

For a long time, AFC has been involved in the development and introduction of Information and Communication Technology (ICT) applications in agriculture and financial sector development. This covers a wide area from simple data collection, storage and processing in databases, the use of radio-frequency identification tags to Internet of Things (IoT) devices to track and trace production from the producer right up to the final point of sale. To get an impression on how ICT has become an indispensable part of the projects, we present some of our flagship projects in this regard.

At the BMEL-funded Agricultural Knowledge and Training Centre in Zambia, we work together with BayWa and “Variable Rain“ – the latter is an IT-based precision farming tool. By integrating satellite data, weather data and soil moisture data of a field into a plant growth model, the tool delivers recommendations on variable irrigation rates. This reduced 30% of irrigation water use, while wheat yield increased by 25% compared to previous years in the project without the use of “Variable Rain“. For the GIZ Green Innovation Centre in Mali, AFC developed together with KIAG a digital traceability system for mangoes. This tool traces the agricultural product from field to export and ensures that the supply chain is transparent throughout the whole export process.

SolAntenna measuring data in a potato storage. Photo credit: Metos.

In India, AFC works with the IoT device “SolAntenna Intelligent potato” at the Green Innovation Centre. The intelligent potato tracks the location and environmental data and thus the growth conditions for product quality. Seed potato producers, cold

storage owners and potato farmers are the main users. As all IoT devices, it provides 24/7 real-time data to monitor the crop quality. Data is automatically uploaded to the cloud and can be viewed using the provided portal dashboard. When analysing the data, crop production management can be adjusted and the crop health status improved. In Ghana, AFC is in charge of the project “Consulting services for the implementation of the rural financial services e-zwich”. The biometric-based payment system e-zwich aims at strengthening financial inclusion through reducing cash dependency and problems with access to banks as well as decreasing costs of financial services. Overall, these examples show the wide range of possibilities to use ICT tools in agricultural and financial projects. The ICT spectrum is diverse and AFC always responds with a tailormade country and sector-specific approach in order to add value through information and communication techniques.

For further information, please contact:

Nina Thurn Project Manager ICT and Anglophone agribusiness and agriculture ninakristin.thurn@afci.de

Wael Louhichi Project Manager ICT and Francophone agribusiness and agriculture wael.louhichi@afci.de

Mareike Decker Project Manager ICT and Financial Sector Development mareike.decker@afci.de

MAP OF SELECTED PROJECTS

Egypt Expert dialogue on quality assurance of plant products of primary agricultural production

Tunisia At present, AFC implements 93 projects in 55 countries. Moving from Africa to Asia, then to MENA, and coming to Europe and the Caucasian countries, each following chapter starts with a map of our ongoing projects in the region – as of April 2022! Enjoy reading insights from our 2021’s activities in 13 selected projects in the countries below!

Innovations for Agriculture and Agro-Food (IAAA) Milk Value Chain in Tunisia

BMEL 01/2022-12/2024 EUR 1,148,000

GiZ 04/2021-11/2022 EUR 496,000

Morocco German-moroccan technical dialogue on agriculture and forestry. Component 1: organic agriculture BMEL 10/2019-10/2022 EUR 1,148,000

Niger Additional support to the sectoral reform agreement, “Food and nutritional security and sustainable agricultural development (CRS-SANAD)” EU 03/2018-11/2021 EUR 8,146,000

Senegal/ Côte d’ivoire Alliance for product quality in Côte d’Ivoire and Senegal GiZ

Ghana Sustainable Employment through Agri-business (AgriBiz): Promotion of MSMEs in the agribusiness sector and implementation of the EU component: Ghana Agriculture Programme (GAP)

08/2021-09/2022 EUR 549,000

GiZ

Nigeria Development of a Strategy for Leveraging Agent Networks to Drive Women´s Financial Inclusion in Nigeria

04/2021-03/2024

Alliance for Financial Inclusion (AFI)

EUR 6,774,000

09/2021-03/2022 USD 39,000

12 12

Georgia Technical Assistance Programme to various EIB Microfinance Operations in Ukraine, Moldova and Georgia

Armenia

EIB

Housing Finance, Phase V

01/2019-09/2022

KfW

EUR 2,198,000

04/2021-11/2022 EUR 289,000

Thailand German-Thai cooperation project to promote sustainable development of cluster farms in Thailand BMEL 09/2020-08/2023 EUR 1,665,000

Papua New Guinea Market for Village Farmers Project IFAD

India Ethiopia Study to identify barriers to agricultural finance in Ethiopia

02/2021-02/2024 EUR 450,000

Green Innovation Centres for the Agriculture and Food Sector: India, Phase 2 GiZ 04/2019-03/2023

GiZ

EUR 5,248,000

08/2021-02/2022 EUR 84,000 Donor

Duration

Budget

13 13

AFC’s

current presence in Africa Total projects

WESTERN AFRICA 27

51 Total project offices

576 Total project staff

CENTRAL AND EASTERN AFRICA

376 16

SOUTHERN AFRICA 4

14 14

147

Selected projects in Africa

UNDERSTANDING BARRIERS TO FINANCE FOR ETHIOPIA’S AGRI-SMEs GIZ selected AFC to carry out the study “Barriers to agricultural finance for SMEs in Ethiopia”. The study is a blend of market research and diagnostic study.

In Africa, the need for new jobs is around 20 million per year. They have to be created by emerging African companies or investments of foreign companies. However, missing investment and trade barriers severely limit the activities of the private sector in Africa. Insufficient skilled labour, technology and market linkages pose major challenges to the private sector. In Ethiopia, small and medium enterprises (SME) face limited access to finance, particularly to credits. For agricultural SMEs no data are available so far and thus information is missing about their specific barriers to access finance. To overcome the hindrances, AFC conducted a combination of a market research and diagnostic study reflected in a two-stages approach (more information on studies see page 43).

farmers groups and cooperatives or on SMEs in general. Hence, demand-side barriers in access to finance of the SMEs were not yet analysed. In September and October 2021, the field survey was carried out with 61 respondents of agricultural SMEs counting 25 full-time employees on average. About two thirds of the respondents are active in the value chains of cereals, dairy as well as fruits and vegetables. For Ethiopia, policy barriers resulting in a credit-constraint financial sector were an overarching factor. In recent years, Ethiopia’s government had pursued an ambitious reform agenda and removed several of the policy barriers, e.g. creation of a legal framework for leasing.

In February 2022, the findings of the Geographical distribution The first stage consisted of a desk research field survey were discussed in a stakeholder of SME respondents. to identify research gaps and formulate workshop. SMEs demanded grace periods and research questions. In the second stage, AFC carried at least quarterly instead of monthly repayments. out a field survey designed to answer some of the research Financial institutions asked for improved financial questions defined in stage 1. management practices. But the study finds that SMEs are overconfident in this area, so that there is no need to improve those The desk research found that agricultural SMEs had barely been skills. In the second phase, GIZ and AFC will pilot some of the analysed in Ethiopia; most of the existing studies focus either on recommendations of the study.

For further information, please contact:

On the left, Mr. Wegderes, the manager of Terra Plc at the farm in Debrebirhan where aromatic and medicinal oil is produced.

Oliver Schmidt Project Manager oliver.schmidt@afci.de

Selected projects in Africa

CERTIFICATION – A LEVER FOR AGRICULTURAL SME EXPORTS FROM SENEGAL AND CÔTE D’IVOIRE When entering the European market, compliance with regulatory quality standards and private quality and sustainability standards is required to ensure food safety and meet consumer demands. Non-certified products are excluded from many export markets.

Despite the proximity to Europe, fresh or processed agricultural products coming from Côte d’Ivoire and Senegal often do not access the European market because of a lack of certification. Yet both countries produce a wide range of products that are highly demanded on the European market such as groundnuts, cashews, mangoes, vegetables, cosmetics or textiles for Senegal and cocoa and its derivatives, coffee, pineapples, coconuts or bananas in the case of Côte d’Ivoire. Different categories of standardisation are relevant to food products, such as food safety standards, quality management standards, sustainability standards, quality standards, and social standards. Certified companies gain access to new markets, can reassure investors and are able to meet the customer’s demands. In Senegal and Côte d’Ivoire, it is not easy for SMEs to obtain certificates because of lacking accessibility, missing training and high costs involved in the certification process. Specific processes from diagnostics to the certification audit are mandatory, but they are sometimes inaccessible to SMEs in terms of training and technical assistance.

Tropical fruits ready for export to Europe.

16 16

To overcome these obstacles, AFC is supporting around 30 agribusinesses and cooperatives in both countries to obtain quality, safety or social sustainability certificates in the framework of the “Alliance for Product Quality in Africa” project jointly implemented by GIZ and the German National Metrology Institute (Physikalisch-Technische Bundesanstalt). Through a call for applications, the selected companies were identified and then analysed in order to identify the most suitable certification for their needs. Organic certifications for food, cosmetics and textiles are the most demanded (EU, NOP, Bio Suisse, COSMOS, GOTS), followed by the certification for food safety such as HACCP or ISO 22000 or quality standard e.g. GlobalGAP, sometimes supplemented by a social standard such as GRASP or SMETA. Other companies are supported to get the quality management standard ISO 9001 or the Fair For Life (fair trade) certification.

In December 2021, the first training on organic farming standards took place for a cooperative in Côte d’Ivoire exporting cashew nuts to a Swiss trader. According to initial estimations, the final certification will increase the annual export volume by 80% and will create 25 additional jobs. Between January and September 2022, other agribusinesses will be trained and coached to obtain the desired certification. In parallel, the AFC team will build capacities in the public and private extension and advisory structures. Strengthening training and certification support services will enable more businesses to benefit after the project’s end.

In addition, private sector actors will be sensitised for the advantages of participating in standardisation processes. Through dialogue platforms, private sector actors will be asked to provide written contributions to the national standard setting processes. This ensures that new standards will be commonly established, for example for dried fruits or essential oils. The project is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the German Federal Ministry of Food and Agriculture (BMEL).

Demanded certifications in Côte d'Ivoire and Senegal 4%

32%

Fair for Life

BIO

8% ISO 9001

12% GRASP/SMETA

28%

16%

HACCP/ISO 22000

GlobalGAP

For further information, please contact:

Marie-José Neveu-Tafforeau Team Leader marie-jose.neveu-tafforeau@afci.de

Noëlie Svara Project Manager noelie.svara@afci.de

Selected projects in Africa

POLICY DIALOGUE – A POWERFUL TOOL FOR GOVERNANCE OF NIGER’S FOOD AND NUTRITION SECURIT Y AND SUSTAINABLE AGRICULTURAL DEVELOPMENT SEC TOR

From 2018 to 2021, AFC strengthened the governance of the “food and nutrition security and sustainable agricultural development” sector in Niger by establishing a cross-ministerial policy dialogue. In Niger, the High Commission’s dialogue for the 3N Initiative - Nigeriens Nourish Nigeriens (HC3N) is responsible for coordinating the newly defined “food and nutrition security and sustainable agricultural development” (SANAD) sector, and is deployed to the ministries and institutions of the agriculture, livestock, environment, hydraulics, trade and food crisis prevention and management sub-sectors. During the last three years, AFC supported the HC3N in the setting up of the new sector and its cross-ministerial organisation. One of the most important reforms driven by the project was the improvement of sectoral governance. This has been achieved through the introduction and operationalisation of a range of strategic and operational, technical and financial management and steering instruments. Indeed, governance has been addressed in several aspects, in particular strategic, programmatic, financial, institutional, technical, and operational governance. The multi-actor characteristics of the sector with roles and responsibilities distributed over various institutional actors led AFC to place the upgrading of inclusive political and strategic decision-making at the heart of governance. The instrument policy dialogue was developed, structured and placed at the centre of the sectoral governance. The first policy dialogue was initiated as a culture of governance to lead to concerted and consensual decisions between state and non-state actors and technical and financial partners. The Joint Annual Review (JAR) of the sector is the framework for establishing the dialogue. AFC has redesigned the concept of the joint review in a pyramid approach to programming and reporting. It starts from each of the JAR sub-sectors by conducting a series of assessments, consultations and dialogues on budgetary achievements and programming. This is done first at the level of each of the sub-sectors of water and sanitation, trade and the private sector, environment and the fight against desertification, prevention and management of food crises, agriculture and livestock; then at the overall level of the food and nutrition security sector.

Introduced in 2019, the new Joint Annual Review format, which is based on high-level policy dialogue, has been successfully operationalised in 2020 and 2021. The governance reform has been a tangible and much appreciated success. During 2019, 2020 and 2021, the ministers of agriculture and livestock, water and sanitation, trade and private sector, environment and desertification control, the Prime Minister in charge of food crisis prevention and management, and the High Commissioner for 3N Initiative personally led the JARs and facilitated policy dialogues on the status and prospects of the respective sub-sectors and the overall SANAD sector. The commitments made during the dialogues by the state, the technical and financial partners (TFPs) and the non-state actors are recorded in a memorandum of understanding and are subject to an operationalisation and follow-up plan. The status of implementation of the recommendations is presented and discussed at each review. Visibility and communication that characterise the review and policy dialogue put all stakeholders on the same level of information and facilitate buy-in to all SANAD sector reforms. Today, the sector is the only one in Niger that effectively implements policy dialogue to improve its governance.

The practical approach: Institutional dimension of the tripartite dialogue with:

Technical and financial partners coordinated by the lead partners

The State through the ministries and administrations responsible for the sector

SUCCESS

Anchor on the calendar of annual budget cycle allowing:

Non-state actors (NGOs, professional associations and private-sector actors)

To be supported by previous year’s Annual Performance Reports

To tackle the effectiveness of the current year and also the budget planning for the following year

Mobilisation and organisation of these various stakeholder groups through:

The establishment and training of a JAR organising committee in each ministry and administration

Strengthening and empowering the role of the lead TFP in each sub-sector and the SANAD sector

Structuring and training of non-state actors in each sub-sector and the overall sector

For further information, please contact:

Pascal Mègnigbèto Team Leader pascal.megnigbeto@afci.de

Marie-Laetitia Catta Project Manager marie.laetitia.catta@afci.de

Selected projects in Africa

AFC SUPPORTS GHANAIAN MSMEs IN THE AGRIBUSINESS After a decade of continuous engagement, a new chapter of AFC’s support to the Ghanaian agricultural sector has begun, with the recent start of our activities for the GIZ project “Sustainable Employment through Agribusiness (AgriBiz)”, which will run until 2024.

The project aims at improving the competitiveness in domestic, regional and international markets of approximately 500 micro, small and medium-sized enterprises (MSMEs) in Ghana’s informal and formal agribusiness sector. Special attention is given to MSMEs headed by women and youth to increase their profits and to create around 1,000 full time jobs. In an integrated approach, the project strengthens technical and management capacities, focusing on processing, trading and marketing MSMEs. One of the key instruments is the GIZdeveloped SME Business Training & Coaching Loop, which combines training with coaching activities tailored to the specific needs of participating businesses. Five business development service providers have been capacitated to implement the 6-months cycle trainings, based on experiential learning and individual coaching

sessions. The first loop reaches out to 148 MSMEs. Other locally created approaches to improve business skills through training and mentoring are also supported, specifically for femaleled MSMEs. The MSMEs come from various sub-sectors along the value chain such as agricultural input supply and service provision for mechanisation, food processing and aggregation. Another focus of the project is the facilitation of contract farming arrangements between farmer-based organisations and medium-sized enterprises. In close collaboration with the Ghanaian Ministry of Trade and Industry, the project will build up a pool of contract farming experts. In order to ensure reliable supply for agribusinesses all over the country, the experts act as facilitators to improve business relationships between the two parties.

Graduation of women service providers that have been trained in tractor operation, maintenance and management.

20 20

While related activities are being implemented nationwide, another component of the project simultaneously supports a more sustainable approach of market-oriented agricultural production in selected value chains in North-Western Ghana under an EU co-financing mechanism. Here, climate-sensitive agriculture is promoted and the capacity of small-scale producers is strengthened to effectively supply raw materials to agribusiness MSMEs focusing on groundnut, vegetables, rice, mango, soybean, sorghum and cashew. Around 35,000 farmers benefit from good agricultural practices, which also address climate resilience such as planting density and crop rotation, conservation agriculture, soil and water management as well as integrated pest management among others. In order to improve the availability of quality advisory and mechanisation services, the project supports service and business development of the social enterprise TECAS promoting conservation agriculture in North-Western Ghana. In parallel, the capacity of processors and aggregators is strengthened to provide (embedded) services to some 8,000 outgrowers, such as input credit, agricultural extension or mechanisation. Other beneficiaries of organisational development are input dealers and their associations, farmer organisations, value-chain committees, and farmer-based village savings and lending associations.

Drying of citrus peel for further use in the beverage industry.

For further information, please contact:

Christoph Pannhausen Overall Team Leader in Accra christoph.pannhausen@afci.de

Dr. Andrew Harberd Team Leader of activities in Ghana North-West andrew.harberd@afci.de

Selected projects in Africa

CLOSING THE GENDER GAP IN NIGERIA – STRATEGY DEVELOPMENT FOR WOMEN’S FINANCIAL INCLUSION In 2021, AFC conducted a diagnostic study on agent relationships and assessed the current trends in the regulation of agent banking in selected Sub-Saharan African countries. We identified models of women agent networks, which might be implementable in the Nigerian context.

Nigeria has a gender gap of 8% in access to financial services. Therefore, the country committed to the Denarau Action Plan. This plan outlines ten actions. One is dedicated to integrate women’s financial inclusion and 8 gender considerations in national strategies and prescribes halving the global gender gap by 2021. Women Leadership and Staffing

In 2019, women’s financial inclusion in Nigeria was 7 assessed in a study. A year DFS and Fintech later, the Central Bank Solutions of Nigeria supported by the Alliance for Financial Inclusion (see box below) Financially Sustainable Products developed the Framework for & Delivery Systems Advancing Women’s Financial 6 Inclusion in Nigeria, aiming to close the gap by 2024. The Framework defines eight strategic imperatives. AFC works on imperative 3 “to expand delivery channels servicing female client’s closer to home”, which proposes to encourage gender balance in agent networks and

Alliance for Financial Inclusion Founded in January 2008, the Alliance for Financial Inclusion (AFI) is an international policy institute and public policy network specialised on the unbanked and underbanked population of the world. Its members include roughly 100 institutions comprising central banks, financial regulatory institutions, and policymakers from 80 least developed countries. Since March 2010, the Central Bank of Nigeria is a principal member of AFI.

conducted a diagnostic study (more information on studies see page 43).

The study unveiled the succinct direct relationship between female agents and female customer outreach. A positive Meassures to Support correlation exists between genderAccount Opening balanced management teams of Financial & Digital Literacy financial service providers and the company’s performance. The study was presented to more 3 than 50 stakeholders. Coming Delivery Channels back to imperative 3 and in to Serve Women order to establish female agent networks to drive women’s Systems financial education and to of Gender Disaggregated build trust in financial services, Data Collection 4 Enabling we developed a strategy to Environment Required to efficiently coordinate the efforts of Advance all stakeholders. The implementation of such a financial inclusion strategy 5 requires very strong political and social will on the financial service provider’s side — to consider women’s inclusiveness as an important part of economic development. 2

For further information, please contact:

Vladislav Nimerenco Project Manager vladislav.nimerenco@afci.de

Oliver Schmidt Team Leader oliver.schmidt@afci.de

AFC’s

current presence in Asia Total projects

20 Total project offices

147 Total project staff

TAJIKISTAN KAZAKHSTAN 1

KYRGYZSTAN UZBEKISTAN 2

MONGOLIA 1

CHINA 1

TURKEY 1

LAO PEOPLE’S DEMOCRATIC REPUBLIC

INDIA

PAPUA NEW GUINEA

AFGHANISTAN 2 1

BANGLADESH 3

THAILAND 1

TIMOR-LESTE 1

23 23

Selected projects in Asia

AFC’S PRESENCE IN CENTRAL ASIA

For decades, AFC has been active in Central Asia, but has especially in recent years increased its presence in the region. Programmes supported by GIZ in Kyrgyzstan include flagship projects of AFC followed by new opportunities, where AFC works for GIZ in Uzbekistan. However, projects of BMEL in Kazakhstan and projects of KfW and World Bank in Tajikistan are in no way inferior.

It is not only the number of projects or the diversity of donors that makes Central Asia so special for us AFC Agriculture & Finance Consultants, it is above all the range of workfields that are covered. In Tajikistan, Kyrgyzstan, Uzbekistan and Kazakhstan, all working areas of AFC, play an important role (more information on our technical expertise see page 42 and 44-45). The selected project examples point out our manifold fields of competence.

grants in the agricultural and tourism sector, shows how both the financial and the agricultural background of AFC are relevant. The same applies in the BMEL-funded project “German-Kazakh Agricultural Political Dialogue (APD)” – politicians and managerial staff of the Ministry of Finance and the Ministry of Agriculture in Kazakhstan are being advised in the fields of agricultural policy, agricultural finance and organic farming.

By providing working-capital finance and by increasing the availability of long-term investment finance for agricultural equipment and machinery, the KfW-funded project “Value Chain Agro Finance” focuses on enhanced food value chain competitiveness in Tajikistan. The project supports selected value chains of agri-food products in a sustainable way and promotes the use of good agricultural practices. Furthermore, in Tajikistan the World Bank-funded project “Grant Management Company”, which concentrates on the disbursement of grants and matching

In Kyrgyzstan, AFC implemented the GIZ and SDC co-funded “Sustainable Economic Development Programme” from October 2016 to February 2021. After sucessful implementation and being renamed to “Green Economy for Sustainable Private Sector Development” programme, the cooperation entered into the second phase in April 2021. AFC’s contribution comprises value chain development activities in the areas of early vegetables in the low-lying hot sub-tropical climate of Burgondu, organic prunes in the mountainous area of Aksy at around 1,500m

Imported Aberdeen Angus in the project region of Chong Alai district in Kyrgyzstan.

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altitude, and rice in low lying areas of Batken. These activities aim at increasing income and generating employment, especially for women and youth. Since April 2021, AFC supports the project “Value chain promotion in Livestock and Tourism” under the umbrella of the same GIZ programme. Especially the livestock sector is an important economic factor in Kyrgyzstan. Increasing livestock numbers lead to large overgrazed pasture resources. The aim of the project is to promote a more effective use of the pastures. Therefore, AFC facilitates the import of Aberdeen Angus bulls and cows, which are significantly more efficient in converting fodder into meat than local breeds are able to. Thus, fewer animals are required for the same output. In the long run, this will not only relieve the pressure on pastures, but will also have a positive effect on methane emissions, as fewer animals produce less gas. In addition, AFC improves environmental aspects of the tourism sector. In Uzbekistan, two new GIZ projects were kicked-off in the end of 2021, one in the field of organic agriculture and one in promoting agricultural cooperatives. The selection of projects demonstrates our strong presence in Central Asia. We are pleased to contribute with our technical expertise!

Packed dried plums. Photo credit: Nanufru

For further information, please contact:

Johannes Buschmeier Director johannes.buschmeier@afci.de

Nina Thurn Project Manager ninakristin.thurn@afci.de

Selected projects in Asia

WOMEN EMPOWERMENT IN AGRICULTURAL VALUE CHAINS IN INDIA In 2021, the Green Innovation Centre India adjusted its gender strategy under the umbrella of “Reach-BenefitEmpower” and was not only able to better integrate women into the project’s activities, but also to make previous gender activities in the project more visible.

Participation of women and men in a particular value chain and rural context, is usually not equal. Women’s participation in terms of work, control of resources and benefits, largely depends on intra-household access and decision-making power. Consequently, the ability of women to participate in and benefit from a value chain project is not homogeneous. In agricultural value chain development it is therefore imperative to integrate a gender perspective in all stages of the project cycle. In India, women are rarely identified as owners or proprietors of agricultural land. One of the main reasons is the traditional legal framework, in which men are unilaterally given preference in the allocation of user rights to agricultural land. When women are recognised as owners of the land, this is usually because they are widows or single women who inherited a property from their deceased husband or father. Another difficulty in integrating women in the project was that they are usually not the decision-makers along the selected value chains potato and tomato. To counteract the underrepresentation of women, AFC adapted its approach by integrating more female farmers into the project’s activities. Five core topics for gender inclusion were identified: improved access to information on

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Good Agricultural Practice, improved access to agri-inputs and machinery, women as active members in farmer producer companies and improved working conditions for women in nurseries and on farms. Since 2018, 66 women farmers study groups were established and trained, reaching more than 5,000 female farmers. In 2021, the Reach-Benefit-Empower approach was introduced and allowed for a systematic allocation of activities already in place and identifying potential improvement in the previous strategy. The three dimensions of reach, benefit and empower imply that simply reaching women does not ensure they will benefit, and even if they benefit does not ensure they will be empowered. The current strategy was revised in a series of team meetings wherein gender-based constraints were identified, objectives for the three dimensions defined, and specific actions to further reduce these constraints planned. The classification of seemingly small activities such as the introduction of special counters for women or exposure visits to farmer producer companies enabled a better representation of the efforts of the project to empower women. Based on the discussions an extensive Gender Action Plan was developed and is currently being implemented.

Improved access to information on Good Agricultural Practice GENDER-BASED CONSTRAINTS Women have difficulties to participate in training as time and place are inconvenient for them

The training methodology applied is often not suitable for women

Social norms limit women to travel

Low level of education and limited language skills compared to men

PROJECT OBJECTIVE 1

PROJECT OBJECTIVE 2

PROJECT OBJECTIVE 3

Reach

Benefit

Empower

Women have access to agricultural know-how

Women have increased their productivity and yield

Women are capable and ensured to take agricultural decisions

“Being part of the Green Innovation Centre India and as member of a potato farmer study group in Peth, Maharashtra, has built my confidence level to manage my farm in a better way. I apply and try out most of the innovations learnt in the training offered by the staff and I can see the benefits: The low-cost and eco-friendly practices learnt have reduced my costs of pest and disease management by 70%. Now I feel proud and happy that I am able to convince other farmers in my village to take up eco-friendly practices to protect our environment and mother earth.” Chandrabagha Madnkar Udhape

For further information, please contact:

Marlene Kühling M&E advisor marlene.kuehling@afci.de

Mans Lanting Team Leader mans.lanting@afci.de

Johannes Geisen Project Manager johannes.geisen@afci.de

Selected projects in Asia

SHAPING THE FUTURE OF SMALLHOLDER FARMERS IN THAILAND AFC is supporting the Department of Agricultural Extension to develop an extension concept and to unlock the potential of smallholder farmers groups.

Thailand’s agriculture is mostly driven by small-scale farmers individually cultivating crops. Since 2016, the government encourages farmers to establish cluster farms (see box next page), which consist of a group of more than 30 farmers cultivating the same main crop. To take the cluster farm approach to the next level, AFC developed a specific extension concept together with the Thai Department of Agricultural Extension (DOAE). Upgrading of the cluster farm management and cooperation of the members towards an agribusiness, introducing SMARTfarming technology as well as improving agricultural practices are the three pillars of the concept. In addition, common marketing and optimised logistics and higher bargaining power shall stimulate higher revenues. Together with different divisions of the DOAE, AFC accompanies several pilot cluster farms using participatory methods to develop their own specific short and mid-term strategy and a related action plan as basis for further support and training on business-oriented management. The project team initiated a cooperation between the German Association of Machinery Rings with the DOAE in order to modernise the mechanisation through machine sharing.

At the Agritechnica Asia and Horti Asia Regional Summit, AFC together with the DOAE and DLG-Thai invited for a “Cluster Farm Future Conference”. It was the first event of its kind in Thailand. Governmental actors, cluster farmers, as well as local and international experts exchanged about the needs for sustainable development. New approaches for management, internal cooperation and agricultural production were presented and discussed. The conference took place as a hybrid event with 100 participants joining on site and 169 online. In 2022, AFC will follow up with the cluster farms on managing their strategic action plans. This will be accompanied by group counselling for the cluster-farm managers, meetings with the supply-chain stakeholders and setting-up of clusterfarm networks. A machine-sharing network and a digital farm management application will be established for the pilots to better organise the cluster and provide a platform for exchange between cluster farmers all over Thailand. Furthermore, test plots for agricultural trials will be set up integrating the concerned divisions of the DOAE at national level and the stakeholders at local level.

Organisers and audience of the Cluster Farm Future Conference 17/11/2021 at Agritechnica Asia/ Horti Asia.

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Organisation and concept of Cluster Farms in Thailand In Thai language, the Cluster Farms are named “large plots”, describing the intention of the initiators of the approach of combining adjacent small plots from different holders to larger plots. The cluster farms produce a common main crop using modern technology and thus reducing production costs while increasing productivity and income of the members. In the beginning, government extension officers support the management of the cluster farms. After two years, the members take over the management and elect a manager and a board. The success of the group depends on the formulation of a common goal of the members, a tangible benefit for each of them and the leadership of the manager ensuring an evenly distribution of the latter.

1. Problem identification

Cluster farm

Needs assessment

Evaluation Management Planning/Implementation

The registration and requirements had been kept simple to encourage cooperation at a lower entry level 4. as cooperatives demand. To participate at the 2020/ Implementation 2021 Governmental enhancement project, a registration as a juristic person had been mandatory to receive the related subsidies. Until the end of 2021, 8,188 cluster farms were registered. The new organisational form is for many farmers uncharted territory and a challenge to their organisational capabilities for the moment.

Members

3. Solution modelling

For further information, please contact:

Planting of Sugarcane at the pilot cluster farm at Dan Khun Thod District, Nakorn Ratchasima Province.

Karsten Ziebell Team Leader karsten.ziebell@afci.de

Selected projects in Asia

IMPROVING ACCESS TO FINANCE FOR FARMERS IN PAPUA NEW GUINEA The International Fund for Agricultural Development (IFAD) finances the governmental “Market for Village Farmers Project”, which shall generate access to finance and supports village households during the transition from semisubsistence farming to farming as a business and a market-oriented production.

With more than 1,000 ethical cultures, Papua New Guinea is one of the most diverse countries in the world and the largest economy in the Pacific region. Poor infrastructure, cultural barriers and a high level of illiteracy comprise the key challenges to achieving financial inclusion. Around 80% of the population remains unbanked. Agriculture – widely termed as the backbone of the country – is yet underdeveloped and not sufficiently funded. Most farmers do not have basic bank accounts. In addition, the country’s licenced financial institutions do not provide credit lines neither for cultivating ground crops nor for agriculturebased small and medium enterprises. Farmers face high bank requirements marginalising access to credit.

for financial institutions. Just recently, AFC started establishing the Global Green Growth Institute-funded Inclusive Green Finance Policy for the national banking sector. “We have a commitment not just to Papua New Guinea, but to the agriculture sector. We will find a way to assist the agriculture sector. We are happy to be part of this project and we are committed to making sure we can deliver it and continue the support to Papua New Guinea.” Daniel Faunt, General Manager, Retail Banking, BSP Financial Group when signing the Memorandum of Understanding for starting project activities.

The project will support and improve both the supply and demand side of basic affordable financial services for farm households and other actors in the value chain consisting of bank accounts, credits, remittances and/ or insurances. AFC has a long-standing work experience in Papua New Guinea. From 2016 to 2018, we worked on the Asian Development Bank-funded Risk Sharing Facility project, which provided guarantees

Signing of agreements between collaborating licenced financial institutions in Port Moresby.

For further information, please contact:

Sigitas Bubnys Team Leader sigitas.bubnys@afci.de

A tomato grower in Mt Hagen.

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AFC’s

current presence in MENA 12

Total projects

Total project offices

183 Total project staff

PALESTINE TUNISIA

IRAQ 1

MOROCCO 3

MAURITANIA

EGYPT ALGERIA 2 2

Selected projects in MENA

QUALIT Y ASSURANCE OF PLANT PRODUC TS IN EGYPT While Egypt’s quality assurance of imported and exported commodities is already established, it is still insufficient for staple crops sold at the national market. The German-Egyptian expert dialogue will facilitate the bilateral exchange to better protect the consumers of plant products.

An ambitious goal declared by the Egyptian government is to ensure the safety of food on the local market as well as for export. The quality assurance system for imported and exported food products is already well developed. In contrast to this, primary agricultural plant products intended for local consumption – the essential staple foods of the population in particular – are still not or insufficiently inspected and analysed in specific instances for potential risks. This has led to a number of food scandals in recent years due to pesticide contaminations or diseases e.g. salmonella.

The expert dialogue is part of the Bilateral Cooperation Programme of the German Federal Ministry of Food and Agriculture (BMEL). The aim of the dialogue is to improve the regulatory structures in the field of quality assurance in order to provide the Egyptian market with high-quality foods. The political partners are the BMEL and the Egyptian Ministry of Agriculture and Land Reclamation. The project started in January 2022 and is currently still in its inception phase.

The project aims mainly at strengthening three areas:

Improvement of the monitoring system for quality assurance of plant products for the local market, specifically the procedures for sampling in farms (how, when and from which farms should samples be taken, for which quality criteria and standards should they be examined).

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Introduction of improved extension approaches for farms producing for the local market. A special focus is given to innovative digital extension approaches for Good Agricultural Practices.

Capacity development of laboratories responsible for testing agricultural products regarding the introduction of new methods, training of laboratory staff and procurement of appropriate equipment.

To raise further awareness about project outcomes, the results of the sample tests will be made available for risk and evidence-based decisionmaking both to the respective farms as well as to consumers via a website to be developed. Here, further information will be provided to inform and warn about the risks of contaminated food. The project will initially focus on several key food crops in different pilot regions. Within the dialog format, expert dialogs between Egyptian partners and representatives of German laboratories will be established, study tours for the Egyptian partners to Germany will be carried out, joint laboratory visits will be organised, and regular round table discussions will be held. To ensure the successful implementation of this project, AFC cooperates with renowned German laboratories for food testing, which support the project in the introduction and validation of new testing methods and the training of laboratory staff.

A point of sale for plant products in Cairo.

For further information, please contact:

Peter Hofmann Project Manager peter.hofmann@afci.de

Rana Hajal Project Manager rana.hajal@afci.de

Frank Giesel Team Leader frank.giesel@afci.de

Selected projects in MENA

COMPETENCE CENTRE TO STRENGTHEN THE DAIRY SEC TOR IN TUNISIA Since April 2021, AFC supports the creation and implementation of a Dairy Competence Centre in Tunisia. The competence centre is the result of a partnership between the public and private sectors with the support of the German Cooperation Agency (GIZ).

Milk is one of the oldest foods in the world and has always been at the heart of Tunisians’ dietary habits. In Tunisia, the sector has made remarkable progress, going from a production limited to self-consumption on the farm in the 1960s to one of the few African countries having achieved self-sufficiency in milk and milk products in the 2000s. The progress is the fruit of a common will of stakeholders including the state, which has developed an integrated strategy to promote the entire dairy sector. This strategy is characterised by a continuous increase in production, strengthening of the collection network and the development of the dairy industry. Tunisia has about 112,200 dairy farms, mostly small breeders with less than five cows. The dairy sector contributes 11% of the value of total agricultural production, 25% of the value of animal production and 7% of the value of the food industry. Dairy production accounts for more than 30% of total agricultural employment. It is therefore a sector with a strong knock-on effect and is considered to be a driving force for the intensification of agriculture and the development of the agro-food sector. However, the sector suffers from a series of structural difficulties and periodic crises – sometimes shortages, sometimes surpluses – that have a negative impact on the profitability of the sector and on market supply. One of the major problems is the

34 34

lack of knowledge due to inadequate or non-available vocational training and the dynamic demand on the dairy labour market. The development of the dairy sector in Tunisia has created a pressing need, from upstream to downstream, for skills, upgrading and new emerging professions for which training is not available in Tunisia (e.g. cheese technician, quality manager, analysis laboratory manager, milking and cold equipment technician, milk collection driver etc.). The project will improve the knowledge of various stakeholders in the dairy sector (farmers, collectors and industrialists) through a range of specific training courses with a focus on improving the quality and safety of milk and dairy products, while respecting the specificities of the companies and the future roles of the trainees, in addition to existing courses. In the governorate of Beja in the North-Eastern region, the competence centre for the dairy sector, is located at the secondary agricultural vocational school for animal husbandry in Thibar-Beja belonging to the Agricultural Extension and Training Agency (AFVA). The competence centre is being supported by AFC to improve the trainings. The concept of the training courses is based on an interactive and adult

The proposed curricula are: Technician in cold equipment and milk pasteurisation Milking Equipment Technician Cheese maker Level I Cheese maker Level II Milk driver Milk analysis laboratory technician Qualitician (milk quality manager) Milk collection centre manager Hoof trimming and dehorning of cattle

education approach that respects gender equality. It foresees the mobilisation of master trainers for all activities, from the architecture of the modules to the practical training sessions. The activities in 2021 comprise the design of the methodology and content of the training courses, the preparation of training materials, the training of master trainers on the andragogic approach, the creation of curricula and setting up the web page

of the Dairy Competence Centre in Thibar (https://www.mediaschool.tn/centrethibar/index.html). The first trainings in the nine proposed curricula will start in April 2022. Until the end of November 2022, AFC will organise training courses for the development of professions and the reinforcement of the skills necessary for professional activities in the dairy sector in Tunisia.

For further information, please contact:

Wael Louhichi Project Manager wael.louhichi@afci.de

Michael Handlos Team Leader michael.handlos@afci.de

Imed Werghi National Coordinator imed.werghi@afci.de

Selected projects in MENA

SUPPORTING MOROCCO’S ORGANIC AGRICULTURAL SEC TOR The “Moroccan-German Technical Dialogue on Agriculture and Forestry” is a bilateral cooperation project of the German Federal Ministry of Food and Agriculture and the Moroccan Ministry of Agriculture, Maritime Fisheries, Rural Development and Water and Forests, which strengthens the exchange of technical expertise in the organic agriculture.

Organic farming is an emerging sector in Morocco. In February 2020, the government launched its new national agricultural strategy “Green Generation” at the horizon 2030, to consolidate the achievements of recent years in the agricultural sector. The new strategy sets on human resources promoting employment creation. In this context, organic farming plays a prominent role as an economic prospect in addition to its resource-saving properties. Since 2019, the bilateral technical dialogue accompanies the Moroccan government in achieving the development goals formulated in its new strategy. Public institutions are supported in identifying opportunities and instruments to strengthen the organic production sector. With appropriate and efficient public support and services, organic farmers – and those interested in converting to organic production – will be enabled to increase their production under the legal framework conditions. At the end of 2021, AFC conducted the first training sessions for trainers in organic agriculture. The trainings were dedicated to agricultural managers, engineers and technicians from the public and private sector and consisted of technical aspects of organic production and management as well as international and national regulations. These sessions were organised in Fez-Meknes and Marrakech-Safi – two regions with a high conversion potential for the practice and development of organic agriculture.

The aim of the trainings sessions is to train qualified trainers who will offer courses in organic farming to specialised technicians within the technical institutes of agricultural vocational training. This indirectly contributes to the national strategy targets while increasing qualified human resources in the country. For the year 2022, we will continue to organise training of trainers, strengthen bilateral partnerships and support the Ministry of Agriculture in legal, institutional and commercial aspects related to the organic sector in Morocco. In parallel, partners will be advised in assessing national demand and developing a market strategy for organic products. Pilot activities comprise establishing national organic supply chains as well as partnerships between Moroccan structures and German institutions specialised in organic agriculture.

The national expert Dr. Khalid Azim answers composting and fertilisation questions during a training.

For further information, please contact:

Dr. Martin Baumgart Team Leader martin.baumgart@afci.de

Houda Labazi National expert houda.labazi@afci.de

Daniela Böhm Project Manager daniela.boehm@afci.de

AFC’s

current presence in Europe and Caucasian Countries 8

Total projects

Total project offices

Total project staff

LITHUANIA

AFC HQ

UKRAINE

GEORGIA

ALBANIA

MOLDOVA

ARMENIA

Selected projects in Europe and Caucasian Countries

HOUSING FINANCE PROGRAMME IN ARMENIA A DECISIVE STEP TOWARDS REDUCING CO 2 How to reduce greenhouse gas emissions and energy consumption sustainably? The case of Armenia demonstrates a solution through financial incentives.

Armenia depends on imported fossil fuel resources. Predominantly driven by the housing sector, the demand for energy is increasing. The residential sector is also responsible for the large share of greenhouse gas emissions, so that the practical meaning of energy poverty is not new to Armenians. Improving energy efficiency and increasing the stake of renewable energy, specifically regarding the building sector, was given high priority in the country. The KfW-funded “Housing Finance Programme” implemented by AFC, intends to be a game changer. The programme aims at improving living conditions of Armenian low and middleincome households. The National Mortgage Company (NMC) on-lends KfW’s credit facility of 20 million EUR to Armenian households via 14 qualified partner financial institutions (PFIs). In order to finance energy-efficient investments in houses, the PFIs offer tailored loan products. In addition, bankers are trained to understand the basics of contemporary construction technology and applying energy-efficient measures.

The project faces a lacking legal and regulatory framework and insufficient awareness on the market. This hinders the popularisation of energy efficiency. To tackle this problem, an initiative promoting energy labelling of newly constructed and retrofitted residential houses was launched. An awareness raising campaign was established to increase the demand for energy efficient houses. Moreover, AFC’s experts developed an innovative climate impact monitoring online tool. It allows NMC and PFIs to measure annual CO2 emission reductions, energy savings and long-term monetary savings of clients, achieved because of financing. The application of the tool will not only streamline processing of loan applications and thus increasing productivity of loan officers, but will also enhance awareness of the population about the financial and environmental benefits of energy-efficient housing investment. Implementing the Housing Finance Programme locally in Armenia, AFC is proud to contribute to the global CO2 reduction.

For further information, please contact:

Elena Yunatska Project Manager elena.yunatska@afci.de Residential buildings in Yerevan.

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Sebastian Faryniarz Team Leader sebastian.faryniarz@afci.de

STRENGTHENING GEORGIA’S BUSINESS RESILIENCE IN THE FINANCE SEC TOR What does it mean to realise financial inclusion during Covid-19 times? What can effectively strengthen staff resilience and ensure business continuity during the current pandemic? Read how the Credo Bank and the microfinance organisation (MFO) Crystal in Georgia managed the challenge supported by AFC.

In 2019, the Eastern Neighbourhood Technical Assistance Programme for Financial Inclusion (ENTAFI) was launched to support Partner Financial Institutions (PFIs) of the European Investment Bank (EIB) in crediting any kind of micro, small and medium-sized enterprises in a sustainable and responsible way. In Georgia, the ENTAFI strongly supported two PFIs to overcome the challenging pandemic years 2020 and 2021. One of the leading banks in Georgia – the Credo Bank – created a Business Continuity Plan (BCP) to the existing and upcoming risks and threats during the Covid-19 pandemic. The BCP aims at stabilising and increasing the resilience of the bank’s business. At the same time, supporting micro enterprises shall reinforce economic development in Georgia. The BCP allows the bank to prepare for potential crises – the plan defines roles and responsibilities of the staff, determines the most effective communication channels in case of emergency including the identification of measures. As a result, Credo Bank has been able to deliver continuous service to its clients.

The MFO Crystal is the largest non-banking financial institution in Georgia serving more than 100,000 unique customers across Georgia. We updated and tailored their Staff Resilience Strategy and the Remote Work Manual to Covid-19 circumstances. In addition, the top and middle management benefitted from individual and group coaching. “Many techniques important for managers have been transferred to practice for further use, and coaching culture is underway to be applied at Crystal.” Salome Kvakhadze, Head of Talent Development and Management Department at Crystal MFO.

“I would like to thank the EIB and AFC for successful implementation of the Business Continuity Plan, which is especially important in current unprecedented Covid-19 times.” Zaal Pirtskhelava, Chief Executive Officer of Credo Bank

In Gori, an SME producing apples in an orchard is being supported by the project.

For further information, please contact:

The almond production SME in East Georgia benefits from the project to stimulate economic development.

Elena Yunatska Project Manager elena.yunatska@afci.de

In-house staff

NEW STAFF

Samira Bouazouni joined AFC in January 2022. She strengthens the Human Resources

department and supports the Francophone team in identifying experts, especially in Frenchspeaking countries. Previously, she worked for more than 14 years as a senior management consultant for a human resources consulting company in Germany where she gained extensive experience in the field of human resources management. She speaks French as mother tongue and German, English and Italian.

Rana Hajal joined the Anglophone team as Project Manager in August 2021. Ms Hajal holds

a M.Sc. in Sustainable Agriculture and Food Business from Nürtingen-Geislingen University in Germany and a Diploma in Agronomy from Syria. She has six years of international experience as a consultant for agricultural projects. In Syria, she worked for five years in the department of land management and agrarian reform. In Germany, she completed an internship at GIZ in the field of climate change, rural development and infrastructure. She worked as a student assistant at GIZ in the Global Project “Knowledge Centre for Organic Agriculture in Africa”, where she wrote her Master’s thesis True Cost Accounting in Development Cooperation. In addition to her native Arabic, she is fluent in German and English.

Juliana Lampkowski joined AFC Project’s Assistance Team for the Financial Sector Development in June 2021. She holds a Bachelor in Law and an MBA in Foreign Trade and International Business. From 2017 to 2020, she supported the sustainability of eco-villages and their food production in Brazil. Mrs Lampkowski speaks Portuguese and English.

Wael Louhichi joined AFC as a Junior Project Manager in September 2021. He holds a Master’s

degree in Agriculture Science-Animal Science from the University of Hohenheim in Germany and a Diploma Engineer in Animal Production from the Higher Institute of Agronomic Sciences of Chott Mariem Tunisia. He has both theoretical and practical background in agriculture, which he gained from several internships in Tunisia, Peru, and Germany. Prior to starting his new position at AFC Francophone team in the headquarters in Bonn, Mr Louhichi worked for various private companies in the area of dairy and poultry production. Arabic is his mother tongue and he speaks French, English, German, and Spanish.

Marie Müller joined AFC in August 2021 as trainee to become an office management assistant.

She graduated in bilingual (French/German) A levels and gained first working experience as assistant. From August to April, she works in the Project Assistance team and then starts rotating through all departments in AFC. Ms Müller’s mother tongue is German and French, and she speaks fluently English.

Alexis Nyamugira joined AFC in May 2021 as Project Manager in the department of Financial

Sector Development. He holds a master degree in Microfinance from the Université Libre de Brussels/ Belgium, an MA in financial management and a B.Sc. in Economics. Before joining AFC, he worked for the European Investment Bank headquartered in Luxembourg on a oneyear position as trainee. Mr Nyamugira also worked as a Junior Research fellow and independent consultant in international development with a focus on financial development in DR Congo and Kenya. He speaks fluently French, English, Swahili and is currently learning German.

Johanna Rañola has been freelancing for AFC as proof reader since September 2016. She

joined AFC in May 2021 as a full-time Recruiter/Expert Relationship Managerfor the Financial Sector Development department, she worked as an editor for the CARD MRI Development Institute, Inc., a pioneer microfinance-training centre in the Philippines. She graduated from the University of the Philippines Los Baños with a Bachelor of Science degree in Development Communication, Major in Educational Communication. She is highly proficient in English and Filipino as well as the local dialect, Bikol.

Nora Reichmann joined AFC in October 2021 as a Junior Project Manager/ Management Assistant

at the Anglophone team. She holds a Bachelor degree from the Humboldt University in Berlin and a Master degree in Sustainable International Agriculture with a specialisation in Agribusiness and Rural Development Economics from the University of Göttingen. She has previous work experience with an NGO in India and the GIGA Institute in Hamburg and speaks German, English and French.

Ingrid Smit joined AFC in March 2021 as a Senior Project Manager at the Financial Sector

Development department. In the last 15 years, she specialised in micro and SME finance. Her areas of expertise include portfolio management, lending and savings methodologies, agri-lending, risk management, governance and social performance management. From 2012 to 2021, she operated a consultancy firm in micro and SME finance in Nairobi and worked on numerous assignments in SubSaharan Africa and other regions. Prior, she was Director Sub-Saharan Africa at Planet Rating, a global rating agency specialised in microfinance with offices in Dakar and Nairobi. Ms Smit lived in Tunisia between 2007 and 2009, in Kenya from 2009 to 2018 and is currently based in South Africa.

Ann Christin Weiler joined the AFC Francophone department as Project Manager in January

2022. She holds a Master of Science in Agricultural Science in Tropics and Subtropics from the University of Hohenheim. From September 2019 to December 2021, she worked for the AHT GROUP in Essen and was responsible for irrigation projects in Mali and Guinea. She has gained experience in different agricultural aspects from internships at the BMZ and Oxfam Novib, during her master thesis research in Mali as well as in project coordination of an organic cotton start-up in Myanmar. Ms Weiler speaks German, English and French.

Elena Yunatska joined AFC as Project Manager and Green Finance Consultant in January 2021.

As a project and investment manager in international programmes in East and South East Europe, Caucasus and MENA, she makes a good fit to the Financial Sector Development team. Her expertise comprises sustainable development and green finance. In addition to Ukrainian – her mother tongue – she is fluent in English, German and Russian and currently studying Spanish.

AFC’s competencies

EXPERTISE OF AFC’S FINANCIAL SEC TOR DEVELOPMENT DEPARTMENT Financial sector development plays a crucial role in the economic development of a country. It increases access to finance and reduces inequality. Across the globe, AFC’s specialised Financial Sector Development team advises financial institutions (FIs) — including commercial and central banks, mortgage companies, microfinance and apex institutions — and micro, small and medium enterprises as well as smallholder farmers, in the following focus areas.

Micro and SME Finance: We support FIs, which want to down-scale their operations to lower-income clientele in MSME lending, risk management, product development, business planning and strategic development, and improve their management information systems. Green Finance: Our experts develop and customise “greening” strategies and innovative financial products, support awareness raising on climate risks, demonstrate benefits of environmentally sound investments, establish environmental and social management systems and perform environmental and social due diligence. Digital Finance: Digital financial services like mobile payment, ATMs, and point-of-sale terminals make financial services more accessible to previously excluded people. We support our partners for example in rolling out a national biometric payment infrastructure in rural areas.

Housing Finance: We identify housing needs along with suitable lending products and develop policies and procedures, improving access to housing finance, energy efficiency as well as environmental and social standards. Financial Literacy: Our financial education trainings, adjusted to the realities of micro entrepreneurs, farmers or the rural population, enable individuals to make savvy financial decisions and become more bankable. Gender Finance: We analyse barriers for women-led businesses to access financial products and services, train bank staff in integrating a gender perspective and advise central banks on women’s financial inclusion. At the same time, we aim to mainstream the topic into project implementation, including gender-sensitive monitoring and reporting.

Agriculture and Value Chain Finance: We conduct studies on agricultural value chains financing needs; provide trainings on financing instruments, agricultural risk and cash flow analysis. Moreover, we developed an agricultural loan-scoring tool as well as an outstanding agricultural finance e-course (see p.10). For further information, please contact:

Financial Sector Regulation and Supervision: To ensure transparency in financial markets, we offer our expertise to regulatory authorities in improving regulation and supervision of banks, stock markets, insurance companies, and capital and pension funds. Financial Institutions Development: For the sustainable development of local FIs, we qualify internal trainers and offer capacity building and trainings, improving skills of bank staff necessary to acquire, serve and retain customers. Insurance Systems: Our expertise covers a wide range of products from SME insurance, Islamic bankingcompliant products, credit-life insurance, agriculture and climate-risk insurance.

Holger Christ Director of FSD department holger.christ@afci.de

STUDIES FOR DEVELOPMENT COOPERATION

Development cooperation depends on reliable data to make decisions, formulate projects and allocate resources needed for implementation. Thus, an important part of our work is dedicated to conduct studies and surveys to form the basis for impactful programmes and projects. We apply different study types in our projects depending on the circumstances and expected targets.

Purpose

Methodology

Market research • For a market segment, establish its status, recent trend, and prognosis (not just extrapolation!) of the near and maybe medium future • Definition of the market segment maybe given or as part of the study

• Quantitative and qualitative surveys

Key to success of the study is to kick-off with a clear, joint understanding of the target framework, and how to settle its inevitable trade-offs.

Diagnostic study • Status of performance against given targets • Potential to perform (better) under changing circumstances

• Quantitative and qualitative surveys • Scenario technique

Feasibility study • Analysing adequacy and risks involved • Analysis of potential of how the concept/ approach is likely to work in different (actual and potential) circumstances

Studies are needed to design and implement projects in a meaningful way. Even if non-scientifically sound studies are possible due to the available budget and time frame, experienced consultants can still deliver reliable results with smaller samples, using modern ICT methods and, in particular, the expertise gained from many years of professional experience.

• Technical analysis of the concept’s elements • Scenario and other creative techniques

AFC has rich experience in delivering studies, applying sound, consciously chosen methodology (see figure). Success of a study also depends on aptly handling the practical challenges of primary research. These include reaching the relevant respondents and managing the quality of work delivered by research assistants. Centre-stage is taken by the research instruments – they need to be crisp enough so that interviews are completed, and clear enough so that answers actually reflect the issue of interest (and not the misunderstanding of research assistant, respondent, or both). In the end, the data analysis is transformed into a concisely and attractively presented report, for which AFC relies on its proven structure for backstopping and quality control.

Regulatory Impact Assessment (RIA) • Identify socio-economic effects* • Qualify and possibly quantify * RIA could also take a legal perspective to analyse how different provisions of (different) laws interact; this would be an exercise for a trained lawyer.

• Document analysis • Country-comparison • Key stakeholder interviews

For further information, please contact:

Product research • Understand the (potential) demand • Establish the circumstances which will shape the (choice of ) product features

• Market research (see above) • Qualitative engagement (Humancentered design)

AFC’s FSD department conducted studies in Ethiopia, Kyrgyzstan, Namibia, Nigeria, Papua New Guinea and Ukraine amongst others.

Oliver Schmidt Project Manager oliver.schmidt@afci.de

AFC’s competencies

EXPERTISE OF AFC’S AGRICULTURE AND AGRIBUSINESS DEPARTMENTS Facing a growing population and uncertainties in agricultural production resulting from climate change, the need to adapt farming systems is a necessary step towards food security. A significant aspect of our work comprises optimising crop and livestock production while taking environmental impacts and agro-ecosystem management concepts into account. AFC provides competent consulting services to support to agribusinesses and the agricultural sector in cooperation with public and private sector organisations in developing and transition countries.

Value chain development: We provide advisory services to numerous national authorities as well as private-sector businesses and food associations along the different stages of the food value chain. Furthermore, we have many years of experience in assisting the further development of the agro value chains worldwide, by supporting producers, establishing producer organisations, improving market structures, and supporting the introduction of quality management systems from “farm to fork” in line with EU and international standards. Climate-smart agriculture: Climate-smart agriculture (CSA) enhances the capacity of agricultural systems to support food security. Proven CSA technologies can reduce climate risks through adaptation and can address climate change through mitigation measures, while at the same time increase agricultural profitability. Often, climate change is recognised to be responsible for severe droughts or extreme precipitation events. However, impacts go far beyond the water cycle. Rising temperatures cause a range of issues: amongst others, they increase evapotranspiration and thus water requirements; they threaten the health of people and livestock; and they reduce livestock and plant performance down to complete crop failure thus requiring measures including shading and active cooling. Droughts, erratic or extreme precipitation events cause secondary issues, which lead to increased soil salinity or prolonged flooding, and rise the need for irrigation, which in turn may cause new issues including depletion of and competition for available water sources. Food security and nutrition: Food and nutrition security implies a balanced food intake, in particular the need for a sufficient supply with proteins, micronutrients, and vitamins. The achievement of Sustainable Development Goal 2 – No Hunger is far away and calls for urgent action. AFC with its core competence in the agricultural sector intervenes in the rehabilitation and development of agricultural production systems to enhance food security. In particular, we support poor farmers in adapting and diversifying their production systems to become more resilient to adverse conditions.

Food safety: Our consulting services comprise handling, preparation and storage of food to prevent foodborne diseases. This includes a number of routines and international standards that should be followed to avoid potentially severe health hazards and to ensure food quality. We aim to improve traceability of food and provide policy advice on food safety, risk management and veterinary controls. We provide consultancy services to numerous national authorities as well as private-sector businesses and food associations in different aspects of food safety – beginning with the introduction of HACCP, quality management systems following ISO standards, Good Agricultural Practices (GAP), up to the development of consumer associations and testing laboratories as well as support to adapt national laws to international standards. Crop and livestock production: AFC provides services for intensification and diversification of optimised crop and livestock production techniques for market and environment-oriented development and pro-poor growth. Crop production comprises sustainable water and soil management as well as the expedient use of fertiliser and herbicides and best practices in organic crop production. Looking at livestock production, AFC seeks to implement integrated crop-livestock systems such as plant and animal nutrition, integrated disease control and veterinary services. Marketing and trade: Selling products on highly saturated markets - such as the European market requires a consequent orientation towards consumers' wishes. In our understanding, the successful introduction of a product has to start with the conception according to the consumers' ideas, followed by comprehensive optimisation of all upstream procedures, i.e. transport, storage, processing and production. Marketing strategy advice is a key part of our portfolio and includes customised solutions for agribusiness marketing, support for international trade fairs, study tours, sector studies, etc.

ICT in agriculture: Demands on the agriculture sector are becoming ever more complex. Across all continents, farmers face the challenges of adapting to climate change and protecting natural resources. Access to weather data, salient market information and the visualisation of best practice technologies, tips for plant protection and simple tools for efficient production planning can help improve the daily work of farmers. In order to provide farmers with direct and fast support, classical extension and advisory tools have been coupled with digitalisation. Farmers are not the only target group. Technicians and farmer organisations require data analysis to manage their production adequately. Governments and international organisations rely on precise data for decision-making. Policy advice: Agriculture policy advice and reform projects include legal frameworks, formulation and dissemination of agricultural strategies and support to private-sector investments. We are experienced in the different support concepts used by international donor organisations (e.g. sector approach, programme-based

approach, sector budget support). To support the establishment of a confident and active private sector, special interest groups are necessary to discuss economic requirements in each political context. We therefore actively support the creation of Public Private Dialogue platforms, which aim at fostering a constructive exchange between the parties providing technical information, as well as generating ideas on how to further develop and improve the countries’ performance. Public Private Partnership: A successful Public Private Partnership (PPP) brings together the public sector with private-sector companies from both developed and developing countries with the aim of mutually sharing knowledge, boosting investment, and developing sustainable business relationships. AFC has extensive experience in supporting PPP projects throughout all stages from identification, concept development to implementation. We have a strong network of agribusiness private sector partners in Europe across all value chain stages (input suppliers, service providers, agricultural buyers and processors), which we can mobilise for such projects.

For further information, please contact:

Dr. Ute Jacob Director for francophone countries ute.jacob@afci.de

Johannes Buschmeier Director for anglophone countries johannes.buschmeier@afci.de

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CONTAC T US

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OUR SERVICES AGR ICU LTU RE & AGRIBUSINESS

Value Chain Approach

Climate Smart Agriculture

Food Security & Nutrition

Food Safety

Crop & Livestock Production

Marketing & Trade

ICT in Agriculture

Policy Advice

Public Private Partnership

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FINANCIA L SEC TOR DE VELO PMENT

Micro and SME Finance

Agriculture & Value Chain Finance

Insurance Systems

Green Finance

Digital Finance

Banking Regulations & Supervision

Financial Institutions Development

Housing Finance

Financial Literacy

Gender Finance

vironmenta l En

Baunscheidtstr. 17 53113 Bonn, Germany 48

Tel: +49 (0) 228 92 39 40 00 Fax: +49 (0) 228 92 39 40 98

info@afci.de www.afci.de

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AFC Worldwide 2022

Articles inside

Studies for development cooperation

Expertise of AFC’s Financial Sector Development department

Strengthening Georgia’s business resilience in the finance sector

Supporting Morocco’s organic agricultural sector

New staff

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