Capacity Building for Strengthening Sectorial Instruments to ...

CAPACITY BUILDING FOR STRENGTHENING SECTORIAL INSTRUMENTS TO ACCELERATE THE ACHIEVEMENTS OF SDG2

January 2022

SDGs:

Republic of Angola

TCP/ANG/3702

USD 360 000

17 June 2019 – 31 May 2021

FAO Representation in Angola

[email protected]

Countries:

Project Code:

FAO Contribution:

Duration:

Contact Info:

@FAO

©FAO/C. Marinheiro

CAPACITY BUILDING FOR STRENGTHENING SECTORIAL INSTRUMENTS TO ACCELERATE THE ACHIEVEMENTS OF SDG2

T C P /AN G /3702

Implementing Partners

Ministry of Agriculture and Forestry of Angola (MINAGRIF),

now Ministry of Agriculture and Fisheries (MINAGRIP),

Ministry of Economy and Planning (MEP), Ministry of

Social Action, Family and Women’s Promotion

(MASFAMU), Ministry of Health (MINSA), Ministry of

Industry and Commerce (MINDCOM), Ministry of

Territorial Administration (MAT), Ministry of Culture,

Tourism and Environment (MINAMB), and National

Institute of Statistics (INE).

Beneficiaries

Human and institutional capacities of ministries involved

in the areas of agriculture, industry, food security and

nutrition analysis, and the environment.

Country Programming Framework (CPF) Outputs

CPF 2020-2023. Priority Area 1, Strengthening smallholder

farming productivity and competitiveness to reduce Food

Insecurity. Priority Area 3, Institutional Capacity Building.

BACKGROUND

Angola has made important progress towards reducing

and eliminating hunger and malnutrition, reducing the

prevalence of undernourishment from 54.8 percent

in 2004-06 to 23.9 percent in 2014-2016. Despite this,

6.9 million people continue to suffer from hunger

(2015-2017), 37.6 percent of children under five years of

age are stunted and anaemia affects 47.7 percent of

women of reproductive age.

Angola recently approved a new National Development

Plan (NDP; in Portuguese, PND) 2018-2022, positioning

sustainable agriculture as one of the main sectors to drive

local economies. In addition, the Government is

committed to promoting a multisectoral strategy to

implement interventions in a coordinated manner in order

to create an enabling environment to achieve zero hunger.

The new NDP is aligned with the African Union Agenda

2063, the Southern African Development Community

(SADC) Regional Indicative Strategic Development Plan

(RISDP) 2015-2022 and the 2030 Agenda for Sustainable

Development, adopted by all United Nations Member

States in 2015. The Government of Angola requested FAO

technical support to improve and update its sectoral

policies and financial mechanisms in line with the new

national context and the NDP 2018-2022.

IMPACT

The project has successfully facilitated the strengthening

of human and institutional links and capacities of the

various ministries involved in the areas of economy,

agriculture, industry, trade and food security, creating a

favourable environment for the implementation of

activities in these areas. The facilitation of a multisectoral

platform has also proved crucial in updating policies,

strategies and action plans within the agriculture sector.

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©FAO/J.C. Domingos

©FAO/C. Marinheiro ©FAO/C. Marinheiro

ACHIEVEMENT OF RESULTS

The project strengthened the ability of the agriculture

sector in Angola to respond to new development

challenges in the social, economic and environmental

context of the country. These challenges included the

COVID-19 pandemic, a fall in the price of oil, the main

source of foreign currency for the country, and the

prolonged drought affecting southern Angola.

The project was carried out in a period during which

implementation was conditioned by Covid-19. This had a

negative impact on activities, particularly those related

to the capacity-building of technicians and the elaboration

of seed strategies, as these required, respectively, mobility

in the field and public dialogue. Despite this, the project

achieved most of its expected outputs. With regard to

Output 1, the project successfully introduced Food

Insecurity Experience Scale (FIES) national surveys. Ten

technicians from different sectors (INE, MINAGRIF and

FAO) were trained in the use of FIES, adopted

internationally to track indicator 2.1.2 of the SDGs. A

report containing the preliminary results was published

in December 2020. Output 2, regarding sustainable

production and the development of a value chain,

comprised four activities. The first involved the updating

and alignment of the National Investment Plan for

Agricultural and Food Security and Nutrition (PNIASAN)

2030 with the new NDP 2018-2022 and SDG Agenda 2030.

The project created a permanent multisectoral PNIASAN

platform for the mapping, coordination and planning

of investment in agriculture in the country. Thirteen

multisectoral technical meetings were held involving

the Comprehensive Africa Agriculture Development

Programme (CAADP) technical group, ministry

representatives, and technicians from the Studies,

Planning and Statistics Offices (GEPEs) of MEP, MINAGRIP,

MASFAMU, MINAMB, MINSA, MAT and MINDCOM. The

second activity regarded the development of a national

seeds policy, with the provision of training in seed

inspection, quality control and certification. Preliminary

contacts were made with the University of Santa Catarina

in Brazil for the training of five technicians from the

National Seed Services (SENSE), but the activity was

impeded by the COVID-19 pandemic. The third activity,

the preparation of a strategy for agribusiness

development and the provision of support to the value

chain of crops prioritized in the NDP 2018-2022, was

achieved at 80 percent. Project UTF/AN/069/ANG,

“Acceleration of inclusive and sustainable investment in

agribusiness in the Economic Growth Corridors” was

designed and initiated in December 2020 as a partnership

between MEP and FAO with the aim of creating an

enabling environment for the Programme to Support

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Production, Export Diversification and Import Substitution

(PRODESI). In addition, FAO facilitated the Plan for the

Integration of Universities in the Development of

Agribusiness and Agrifood Value Chains (UniAgro). An

academic consultation platform was created to support the

development of agribusiness and value chains to ensure

national and territorial dialogue between the different

actors. The final activity involved the assessment of rural

credit capacities and the development of rural finance

mechanisms. This was successfully achieved. A rapid

diagnosis of the microfinance situation in Angola was

carried out. The results indicate that the microfinance

sector in Angola has a weak capacity to satisfy the credit

needs of small entrepreneurs in the formal and informal

sector with commercial banks.

IMPLEMENTATION OF WORK PLAN

Project activities began in June 2019 and ended in

May 2021, with no increase in the original budget of

USD 360 000. As a result of the constraints imposed by

the COVID-19 pandemic, some of the envisaged activities

under Outputs 2 and 3 remained incomplete at the end

of the project.

FOLLOW-UP FOR GOVERNMENT ATTENTION

The Analysis of Agricultural Public Expenditure made under

the project indicates that the composition of expenditure

is positive, as investments are made preferentially in

functional categories that have a strong impact on the

development of the agrarian sector. It is recommended

that the next step be to update the macroeconomic

indicators, the agricultural investment map under the

responsibility of the different ministries, and the rapid

diagnosis of the challenges and opportunities for

investment in the agriculture sector at provincial level. The

microfinance sector in Angola is impeded by the incapacity

of the financial sector to satisfy the need for credit of

small entrepreneurs in the informal sector with

commercial banks. It is recommended that the

Government, non-governmental organizations and all

other actors interested in improving the productive

capacity of small farmers explore strategies to allow the

necessary microcredit to be provided.

T C P /AN G /3702CAPACITY BUILDING FOR STRENGTHENING SECTORIAL INSTRUMENTS TO ACCELERATE THE ACHIEVEMENTS OF SDG2

©FAO/C. Marinheiro

SUSTAINABILITY

1. Capacity development

The NDP 2018-2022 positions sustainable agriculture as

one of the main sectors to boost the local economy. The

Plan inserts PRODESI and is well aligned with the African

Union Agenda 2063, the SADC RISDP 2015-2022 and the

2030 Agenda for Sustainable Development adopted by

all United Nations Member States in 2015. There is,

however, a notable absence of other instruments to

accelerate the local economy, such as a national policy for

the development of agrifood value chains, a national seed

policy and a national product quality policy.

2. Gender equality

Project activities met 60 percent of the needs and

priorities of the beneficiaries/stakeholders, men and

women, as identified in the design phase. The COVID-19

pandemic largely hindered the greater involvement of

stakeholders and partners.

3. Environmental sustainability

Environmental issues were not specifically addressed by

the project.

4. Human Rights-based Approach (HRBA) – in particular

Right to Food and Decent Work

Human rights issues were not specifically addressed by

the project..

5. Technological sustainability

A substantial part of the project contributed to the

development of capacities in agrifood value chain

development through the exchange of experiences with

other countries.

6. Economic sustainability

The project contributed to the preparation of

project UTF/AN/069/ANG, “Acceleration of Inclusive and

Sustainable Agribusiness Investment in the Economic

Growth Corridors (AgroPRODESI)", which began

implementation in partnership with MEP in

December 2020. The project budget has estimated at

over USD 1 700 000.

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DOCUMENTS AND OUTREACH PRODUCTS

FAO. August 2020. Diagnosis of the Status of Microfinance Services in Angola. Technical Note. 22 pp.

Coordination of Ministry of Agriculture and Fisheries, Ministry of Economy and Planning, and FAO. October 2020. Agricultural Public Expenditure Analysis Report. Preliminary report. 35 pp.

Coordination of Ministry of Economy and Planning, and FAO. November 2020. Project UTF/AN/069/ANG “Accelerating Inclusive and Sustainable Investment in Agribusiness in the Economic Growth Corridors (AgroPRODESI)”. Project Document, 69 pp.

Coordination of INE and FAO. December 2020. Report on the Food Insecurity Experience Scale (FIES). Preliminary Results. 36 pp.

FAO. November 2021. Community Boxes - Alternative Services to the Informal Economy. Technical Note. 5 pp.

FAO. TCP Progress Report.

©FAO/B. Adrien

©FAO/J.C. Domingos

ACHIEVEMENT OF RESULTS - LOGICAL FRAMEWORK

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Expected Impact

Agriculture Sector in Angola is strengthened in order to respond to the new development challenges of the social, economic and environmental context of the country in support of SDG2 achievement

Outcome

Institutional and human capacities strengthened for the implementation of the national strategic priorities in order to accelerate the achievements of the SDG2

Indicator Number of governmental institutions having developed strategies or programmes contributing to SDG2.

Baseline 0

End Target Five (Ministry of Agriculture, Ministry of Economy and Planning, National Institute of Statistics, Ministry of Industry and Ministry of Environment).

Comments and follow-up action to be taken

Angola has made important progress in developing the agrifood sector, despite the negative socioeconomic impacts of COVID-19 and prolonged drought in the southern region of the country. However, it is still necessary to improve productivity levels through technological innovation, knowledge transfer and strengthened capacities for the development of value chains to allow agricultural producers to include their products in local and international economies. The project contributed to the strengthening of human and institutional capacities of the ministries involved in the areas of agriculture, industry, food and nutrition security, taking advantage of experts from FAO on multisectoral facilitation. It also supported the Government in the preparation, updating and implementation of important documents and projects for MINAGRIP, such as the FIES report, the CAADP national report, the updated PNIASAN, and the Integrated Plan for Acceleration of Family Agriculture and Fisheries. The project contributed to the planning of project UTF/AN/069/ANG, “Acceleration of Inclusive and Sustainable Investment In Agribusiness in the Corridors of Economic Growth (AgroPRODESI)”. Coordinated by MEP and in partnership with the Institute for Support to Small and Medium Enterprises, the project leverages public-private investment in agriculture and capacity-building for the development of agrifood and agribusiness value chains. At the request of MINDCOM, verification visits were carried out to two units of agro-industrial centres, installed in Malanje and Benguela Provinces, as part of the Rural Industry Incentive Programme, to monitor the state of operation, assess challenges and gather subsidies to redesign an operational strategy.

Output 1

Food Insecurity Experience Scale (FIES) applied to track SGD Indicator 2.1.2

Indicators Target Achieved

Strengthened institutional capacities for Food Insecurity Experience Scale (FIES) integration in the national Multidimensional Poverty Survey (IDREA in Portuguese) to track SDG indicator 2.1.2.

Eight FIES questions integrated in the IDREA. Yes

Baseline 0

Comments The project built capacity to implement FIES as a methodology to monitor SDG2, using such national surveys as the IDREA.

Activity 1.1

Introduction of the Insecurity Experience Scale (FIES) national surveys

Achieved Yes

Comments

Ten technicians from different sectors (INE, MINAGRIP and FAO) were trained in FIES, adopted internationally to track indicator 2.1.2 of the SDGs, at the level of related institutions of statistics and food security in Angola. In 2019, the Government, through MEP/INE and MINAGRIF, decided to incorporate FIES into national surveys, in particular the Angola Employment Survey and Food Insecurity in order to periodically obtain the best data to assess food insecurity in the country and its relationship with various socioeconomic variables. In this context, FAO included FIES in national surveys, as a complementary measure, in order to provide support to the Government for the analysis of food insecurity, which enables the monitoring of the performance of SDG2.

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Output 2

Sustainable Production is intensified and Value Chain is developed through research and innovative approaches


Number of programmes and strategies developed and ready for endorsement.

Four (PNIASAN, National Policy of Seeds, Agribusiness Strategy and Rural Financing Strategy).

Partially

Baseline 0

Comments

Activity 2.1

Update and align the National Investment Plan for Agricultural and Food Security and Nutrition (PNIASAN) 2030 in line with the new NDP 2018-2022 and SDG Agenda 2030.

Achieved Yes

Comments

The updating of PNIASAN was begun, under the coordination of MINAGRIP, in order to bring it into line with the NDP 2018-2022, the Medium Term Development Plan for the Agricultural Sector, 2018-2022 and the Malabo Declaration commitments. It was agreed to create a permanent multisector PNIASAN Platform for the mapping, coordination and planning of investment in agriculture in the country. The PNIASAN Platform is an opportunity to improve the quality of the implementation of agricultural public expenditure in Angola, as it promotes the joint planning of investments in agriculture and greater articulation in the implementation of projects. Thirteen multisector technical meetings were held between the CAADP technical group, representatives of ministries, and technicians from the GEPEs of MEP, MINAGRIP, MASFAMU, MINAMB, MINSA, MAT and MINDCOM. As part of the PNIASAN update exercise, the first mapping of public investment of the main programmes, projects and public actions in agriculture between ministries for 2018 and 2019 was carried out, using the FAO methodology for Policy Monitoring and Analysis of Agrarian and Food Sectors (MAFAP) in order to assess the composition of public expenditures to support the development of the agrarian and food sector, and to establish a link between funding allocations and national expenditures. The MAFAP methodology makes it possible to assess if resources are allocated to priority areas in accordance with national priorities, if they respond to investment needs and if they are consistent with the Government's policy objectives. In general, the Analysis of Agricultural Public Expenditure indicates that the quality of the composition of expenditure appears to be good, as it demonstrates that investments are made preferentially in functional categories that, from the outset, have a strong impact on the development of the agrarian sector. The next step should be to update the macroeconomic indicators, the agricultural investment map under the responsibility of the different ministries and the rapid diagnosis of the challenges and opportunities for investment in the agriculture sector at provincial level. As for Agrarian Public Expenditure, it is necessary to carry out complementary analyses in order to generate more evidence for decision-making, i.e. to determine the reasons for low budget execution in the sector; to investigate the role of institutional coordination in the process of implementing public agricultural expenditure; and to evaluate the correlation of geographic composition of agricultural expenditure with the productive potential of each province.

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Activity 2.2

Operationalize the National Policy of Seeds developing programme, training (seed inspection, quality control and certification)

Achieved Partially

Comments

This output was only partially achieved owing to constraints imposed by COVID-19. Preliminary contacts were made with the University of Santa Catarina in Brazil for the training of five technicians from SENSE. The training was not carried out because of limitations in mobility caused by the pandemic. However, in complementarity with the AgroPRODESI project, over 570 strategic actors from agrifood systems and value chains discussed aspects related to the challenges and opportunities of the seed sector in Angola. The main challenges of the seed value chain are: the lack of a national seed production and access strategy; the lack of a variety profile according to the different agroecological zones; the poor performance of research institutions and the absence of robust programmes for the genetic improvement, production and conservation of improved seeds; and weak articulation with regional and international institutions of reference in the field of seeds. Solutions for these challenges include the following: establish a strategy for the production and access of improved seeds; set up multilateral agreements with institutions and reference organizations in the seed sector, such as the International Maize and Wheat Improvement Centre, the International Centre for Tropical Agriculture and the Brazilian Agricultural Research Corporation; promote agri-public-private partnerships between producing companies and research institutions; institutionalize seed distribution and commercialization mechanisms in the open market; establish tools and mechanisms capable of aggregating catalytic funds to ensure well-structured financing and development; prioritize value chain seed multipliers in the NDP 2018-2022; and ensure scale for national coverage.

Activity 2.3

Prepare a strategy for agribusiness development and support value chain of different crops prioritized in the PND 2018-2022 (Soya, Maize, Cassava, Millet, Sorghum, Mangoes and Avocados).

Achieved Yes

Comments

Since May 2019, FAO has been following the formulation of strategies to accelerate investments in agriculture and strengthen capacities for the development of priority agrifood value chains in alignment with PRODESI, the main programme, facilitating the exchange of experiences for the training of senior technicians from MINAGRIP, MINDCOM and MEP. In June 2019, three senior officials representing the agriculture, economy and industry sectors participated in an Executive Coaching in Rwanda, facilitated by the Government of Ireland. During the meeting, experiences on the development of strategic processes in the agrifood sector were shared. In August 2019, ten senior officials from the agriculture, economy, trade and industry sectors and FAO participated in the exchange of experiences on the development of value chains and inclusive markets in Mozambique, with high-level meetings and guided visits to units of production, to deepen understanding of the functioning of value chains in the poultry, cassava and soya subsector. Experiences from Angola and Mozambique on the successful inclusion of small producers were shared. In October 2019, 120 strategic actors of agrifood systems participated in a multisector forum in Luanda and shared approaches on the vision and development of the cassava, soya and chicken value chains and on the challenges and ways forward for the development of a more inclusive agricultural sector for small producers and small/medium agribusiness. The lessons learned in the exchange of experiences on value chain development in Mozambique were endorsed. In November 2019, seven senior officials from the agriculture, economy, trade and industry sectors and FAO participated in a roundtable on agricultural investment in Africa. In December five officials from the same sectors participated in the second executive training in Uganda, facilitated by the Government of Ireland. As a result of this exercise, project UTF/AN/069/ANG, “Acceleration of Inclusive and Sustainable Investment in Agribusiness in the Economic Growth Corridors (AgroPRODESI)”, has been underway since December 2020, implemented in a partnership between MEP and FAO, with a view to creating an enabling environment for PRODESI to do business in agriculture, specifically by supporting such transversal initiatives (ITs) as: train and qualify human resources (IT6) and promote the establishment of strategic, national and international business partnerships (IT7). Also in this area, FAO facilitated UniAgro, designed to address challenges linked to accessing and using knowledge and innovative technologies in the inclusive development of agribusiness and value chains. An academic consultation platform to support the development of agribusiness and value chains was created to ensure national and territorial dialogue among the different actors, under the coordination of MEP and with the participation of the Ministries of Higher Education, Science, Technology and Innovation (MESCTI), MINAGRIP and MINDCOM. An Action Plan signed between FAO and MESCTI defined the general lines for bringing universities closer to the challenges of agribusiness and value chains.

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Activity 2.4

Rural Credit Capacities assessment conducted and rural finance mechanisms development Achieved Yes

Comments

A rapid diagnosis of the microfinance situation in Angola was carried out. The results show that, as in most developing countries, the microfinance sector in Angola is impeded by the incapacity of the financial sector to satisfy the need for credit of small entrepreneurs in the informal sector with commercial banks. The provision of credit to small farmers in rural areas still involves high operational risks and costs, which often leads microfinance institutions to dedicate the majority of their loan portfolios to urban commercial activities, thus limiting family farmers' access to financial services. Given this obstacle, the Government, non-governmental organizations and other actors interested in improving the productive capacity of small farmers are recommended to explore alternative strategies, in addition to promoting agricultural credit through the financial system. Such strategies include the following: – Strengthen cooperation among smallholders to reap greater economies of scale, i.e. ensure

greater trust among group members. – Exploit the advantages of capital markets for Community Funds. Community Funds create a

community reserve of money to grant loans to their members, which is not always sufficient to meet real needs.

– Transform Community Funds in advanced states into credit unions. The evolution of Community Funding Boxes into legal bodies allows them to become legal entities capable of establishing links with other financial institutions with a view to mitigating the risk of high liquidity at the end of the cycle, as well as vulnerability to fraud.

– Promote strategic leaders in agricultural value chains. A key actor is an active member of the value chain, providing a degree of chain governance without any direct ownership of farms.

– Advocate for in-house specialization in rural finance within microfinance institutions. There is a general inadequacy of staff in the financial sector to assess the risks inherent in agriculture and rural finance.

– Develop specific legislation for the microfinance sector. Current legislation prevents microcredit operators from developing other products in addition to microcredit. Because of this, some microcredit societies have shown interest in evolving into microfinance institutions in order to exploit these advantages.

– Promote access to credit through new digital technologies. The digital evolution offers unique opportunities for microfinance institutions to integrate rural markets and agricultural production activities at low operating costs.

– Develop a detailed study on the demand and supply of microfinance services in Angola. The current analysis offers a synthesis of the sector, but it is necessary to identify the real financial needs of farmers through surveys in order to assess the characteristics of the products or services in demand, and to identify gaps in their supply.

Output 3

Coordination and common implementation strengthened for drought response in southern Angola.


Number of analyses conducted on multisectoral approach to respond to drought in Angola.

One analysis conducted. Partially

Baseline 0

Comments This output was only partially achieved because of constraints imposed by the COVID-19 pandemic.

Activity 3.1

Prepare an analysis of a multisector approach to respond to drought in Angola: focalization and modalities of interventions (technologies and innovations).

Achieved Partially

Comments

This activity was partially implemented (10%). Owing to the constraints in the mobility of people, imposed by the COVID-19 pandemic, the recruitment of an international consultant for the preparation of the analysis document and recommendations for intervention in communities affected by drought was not carried out. The implementation strategy for Activity 3.1. was based on the complementarity of results achieved with the projects GCP/ANG/050/LDF, OSRO/ANG/002/CHA, Fortalecimento da Resiliência e da Segurança Alimentar e Nutricional-GCP/ANG/063/EU, and Small Agriculture Market Access Programme UTF/ANG/064/ANG, aimed at increasing the resilience of family farmers to climate change, sustainable and inclusive production, and food security. Under these projects, multisector strategic dialogues and the capacity-building of local communities were promoted, and production kits were also provided. The results, evidence and lessons learned from the implementation of these projects will be used as input for the preparation of a document with analysis and recommendations to improve multi-stakeholder coordination in order to increase the efficiency of technological and

Activity 3.1

Prepare an analysis of a multisector approach to respond to drought in Angola: focalization and modalities of interventions (technologies and innovations).

Achieved Partially

Comments

This activity was partially implemented (10%). Owing to the constraints in the mobility of people, imposed by the COVID-19 pandemic, the recruitment of an international consultant for the preparation of the analysis document and recommendations for intervention in communities affected by drought was not carried out. The implementation strategy for Activity 3.1. was based on the complementarity of results achieved with the projects GCP/ANG/050/LDF, OSRO/ANG/002/CHA, Fortalecimento da Resiliência e da Segurança Alimentar e Nutricional-GCP/ANG/063/EU, and Small Agriculture Market Access Programme UTF/ANG/064/ANG, aimed at increasing the resilience of family farmers to climate change, sustainable and inclusive production, and food security. Under these projects, multisector strategic dialogues and the capacity-building of local communities were promoted, and production kits were also provided. The results, evidence and lessons learned from the implementation of these projects will be used as input for the preparation of a document with analysis and recommendations to improve multi-stakeholder coordination in order to increase the efficiency of technological and innovative interventions and to improve the short and long-term resilience and livelihoods of drought-affected communities.

Outreach, Marketing and Reporting Unit (PSRR)

Business Development and Resource Mobilization Division (PSR)

For more information please contact: [email protected]

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