NETHERLANDS MINISTRY OF FOREIGN AFFAIRS AND MINISTRY OF ECONOMIC AFFAIRS, AGRICULTURE AND INNOVATION Food and Nutrition Security & Water Support Mission Embassy of the Netherlands Bamako, Mali Final Draft Report, July 2011

Developed by: Jeroen Rijniers, Monique Calon, Antje van Driel, Jille Niehof, Jean Luc Frerotte, Roland Waardenburg, Bert Satijn and Simone van Vugt

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Contents Executive Summary......................................................................................................... 4 1.

Introduction and Background ................................................................................... 6

2.

Team composition, Mission activities and Overall Outcomes ........................................ 6

3.

Mali Context .......................................................................................................... 7

3.1 Key features of Mali on Food & Nutrition security, Agricultural development, Water & climate change and Education ........................................................................................ 7 3.2 4.

Netherlands position (added value) relative to the Malian context ........................... 11 Programme Focus ................................................................................................ 14

4.1

Guiding principles and key questions ................................................................... 14

4.2

Water and Food & Nutrition Security.................................................................... 17

4.3

Option 1 Office du Niger .................................................................................... 18

4.4

Option 2 Alatona irrigation scheme ...................................................................... 19

4.5

Option 3 PADIN ................................................................................................ 21

4.6

Option 4 Alternatives ......................................................................................... 23

4.7

Delta Development Support Programme (DDP), some considerations ...................... 28

4.8

Option 5 Competence based education ................................................................ 30

4.9

Option 6 Policy Support ..................................................................................... 31

4.10

Linking with existing Dutch initiatives .................................................................. 31

5.

Next steps........................................................................................................... 32

5.1

Preparations for the long term / input in the MASP ................................................ 32

5.2

Fast & Longer Track projects .............................................................................. 33

5.3

Embassy Capacity and Resource Needs ................................................................ 34

Annex 1: ToR and Programme of the mission.................................................................... 36 Annex 2: Public private partnerships in Mali

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Executive Summary Background In the context of the new Dutch development co-operation priority themes of food & nutrition security and water, support missions have been organized to provide embassies concerned with advice for their strategic programming process. In the case of Mali a partly combined mission on food security/water has been conducted in June 2011. Given the serious circumstances of climate change and vulnerability of the area to climate roughness, due to a lack of resilience of the soil-water system, food & nutrition security is largely depending on water availability. The embassy in Bamako has been active in food security and agriculture throughout the past years. The embassy coordinates donor efforts in the huge irrigation area of the Office du Niger, supports policy efforts in agriculture, and has provided support to value chain development through SNV and IFDC. Also the embassy continued financing a program in the Inner Delta (North of the Office du Niger) focusing on small scale (30 to 60 ha) irrigation and food security, implemented by CARE International. For their future programming of interventions that contribute to Food & Nutrition Security, the Embassy specifically asked the mission to look into the following options: 1. To develop some 5000 ha of irrigated farm land in the region Office du Niger (prepared by MCA) for agricultural production (staple food/cash crops). 2. To extend the project area of the ongoing programme for the agricultural development of the Inner Delta (PADIN), with a specific focus on intensifying production, processing and commercialisation of dairy and meat products. Two more options that the Embassy asked the mission to assess were: 3. Opportunities to enhance the development of strategic views on the agricultural sector as a whole (e.g. National Agricultural Policy and investment plan) and on specific agricultural zones (Office du Niger, Inner Delta). This would particularly entail making available experts on processes of policy development as sparring partners for the Malian government. 4. Ways to increase knowledge-to-business cooperation on the issue of food security, e.g. through strengthening vocational education and higher education. In addition to this, the mission also looked at the current support to the Office du Niger, as well as to alternative sectors/chains that have market outlets (cities) and offer opportunities for involvement of Dutch know-how and businesses while contributing to food security. As regards Integrated Water Resources Management (IWRM), specific areas of intervention to be analysed by the mission were: 5. Efficient and sustainable water use, especially in agriculture, in particular in the zone Office du Niger and the Inner Delta 6. Safe deltas and better river basin management, also in view of climate change, building on past experience and earlier projects funded by the Netherlands

Results On Options 1 and 2: The mission recommended further analysis of ways and means to increase not only productivity through more efficient use of water and land in the Niger Delta but also the possibilities for processing and marketing of rice, vegetables and other products from the Delta region. The mission recommended a broad Delta Development Support Program which would deal with these issues and other programmatic issues (e.g. development of horticulture, empowerment of farmer organizations, integration of livestock keeping - pastoralism - with irrigated agriculture ) which transcend the project level and reflect Netherlands knowledge and expertise as well as

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interest from the Dutch private sector. At the project levels, it was recommended to conduct further research on water availability, private sector interest, land tenure arrangements and a number of other issues to guide the embassy in decision-making. The studies could be launched in 2011 as a fast track initiative and be used as input for the MASP. On option 3: The mission has not been able to tackle this issue in depth. It is recommended to explore possibilities to engage relevant senior policy makers of EL&I and DGIS, supported by a limited number of acknowledged international agricultural economists, and to organize an exchange with the Malian MoA. Still some ideas are forwarded to set up an Agricultural System Innovation Platform on national level with 2 or 3 braches on regional level around experimental PPP. On option 4: As an entry point the mission identified the newly established University in Ségou, which will include a faculty for agriculture, food security and water management. To start the process in 2011, two activities can be supported: one focusing on the labour market - this being the demand side for expertise in agriculture related sectors - and one focusing on curriculum development for degree training for agriculture (including livestock and water). These will be done in close collaboration with relevant Dutch institutions such as the WUR, PTC+ and Nuffic. The overall objective is to develop private sector oriented competence based training at all post primary levels and support the complete educational chain on Agriculture. An additional recommended course of action is to further analyze the following options and possibly set up some pilot activities:  For development of the livestock - dairy and meat – sector and for product lines where the Dutch NGO sector is already involved in. The initial findings of the food security mission indicate that there are opportunities both in the Niger Delta, linked to the Delta Development Support Program and near Bamako where urban demand for milk and meat products is increasing. This will be developed and implemented in strong collaboration with the members of Agri Pro Focus and other Dutch actors.  Also the possibilities for the setup of an accelerator fund seems to be a clear option to learn from the new approach by funding a number of activities/projects that would fit into the new set of thinking. Funding does not imply the definite decision for the defined products but will be used as a pilot to learn how to proceed in the near future. This funding could be linked to activities of APF but also other ongoing activities, already partly supported by the different funding lines of the embassy and ministry.

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1. Introduction and Background In the context of the Food & Nutrition Security Support Initiative (FSSI) of the Ministry of Foreign Affairs and the Ministry of Economic Affairs, Agriculture and Innovation, a support mission was conducted to Mali to assist the Embassy with the design of the food and nutrition security and water programme. The Cabinet letters on Development Cooperation to Parliament of November 2010 and March 2011, and the Strategy Note on Food Security (May 2011) are the point of departure. As Mali has also been long-listed as one of the countries in which to investigate opportunities to intensify activities on water management and the fact that Food Security and Water issues are closely linked, the mission included an expert on water The point of departure for water management activities is the Strategy Note on Water (May 2011). These policy papers emphasize the role of private sector development and other type of Dutch expertise in achieving the food security and water objectives. This mission is part of a series of six support missions for the Fast Track Process to Ethiopia, Kenya, Ghana, Mozambique, Rwanda and Mali. Discussions between the Embassies and the Task Team Food and Nutrition Security have resulted in embassy-specific terms of reference and proposals for Fast Track action plans. Specific activities in Mali were an appraisal of possible “Fast Track” proposals, water issues included, advice on options for the 2012-2015 Multi Annual Strategic Plan (MASP) and suggestions for support to private sector development, the use of public private partnerships and economic diplomacy more in general. Competency based education and policy support have been taken into account as integral part of this mission also.

2. Team composition, Mission activities and Overall Outcomes Team composition The five-day support mission took place from the 6th of June to the 10th of June 2011 in Mali. The FSSI mission team was composed of: Jeroen Rijniers (EL&I -Task team), Monique Calon (BuZa DDE -Task team) , Antje van Driel (BuZa DME), Jille Niehof (Expert livestock), Jean Luc Frerotte (Expert Water – Royal Has Koning), Roland Waardenburg – ( Independent consultant ex Ahold) and Simone van Vugt (Mission Leader , Expert Multi stakeholder processes and M&E CDI-WUR). Bert Satijn (Expert Water - Leven met water) arrived on the last day of the mission and continued together with Jean Luc Frerotte for a more thorough analysis of the water sector in Mali. The mission team worked in close collaboration with the team of the Embassy which was composed of: Jacob Waslander (HOS and agriculture), Caro Pleysier ( Economy), Nana Danté (Water), Diourou Cissé (Education) and Joris van Bommel (Education). Also the incoming HOS, To Tjoelker was part of the team.

Mission Activities The Embassy prepared several concept notes and identified 4 potential options: The Office du Niger; Alatona irrigation scheme, the PADIN program in the inner Delta and, fourthly support to private sector engagement in Mali. The embassy also requested that attention should be given to livestock in particular the dairy and meat value chains. Special attention was given to the integration of water into all the options above. Governance & enabling environment, gender, integrated natural resources management & climate adaptation, knowledge to business cooperation and vocational training are transversal themes, which were taken up by the mission throughout the analysis of the options (See figure 1).

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The programme was prepared by the Embassy with input from the mission team. It consisted of meetings with the donor community, the Dutch NGO sector - Agriprofocus, field visits to Office de Niger, Alatona, PADIN and a milk collection point. On the 4th day the team was split in three in order to gain deeper insight into competency based education, private sector involvement and the water & environmental integration. During the last day the team met the General Secretary of the Ministry of Agriculture for an exchange around the strategic plan (See for details of the program annex 1).

Fig.1

The mission led to the following outcomes:      

Appraisal of the Fast Track Initiatives in the Office du Niger, Alatona, the Inner Delta/PADIN and private business initiatives in the livestock and fruit + vegetables sectors. Listing of issues that should be addressed in the final MASP. Identification of actions to further develop the competency based education chain in favor of agriculture and water. Suggestions for improved policy support. Suggestions for strengthening the support to the (Dutch) private sector active in Mali or planning to invest in Mali, and regional dimensions. Specific report on water (basis of a Quick Scan of the water sector in Mali, with emphasis on the role of water in food security). In the present report, water is considered mainly in its relations with food security. This option is based on the recommendations done by the staff of the Embassy in Bamako. A separate report of the Quick Scan of the water sector is available.

3. Mali Context 3.1

Key features of Mali on Food & Nutrition security, Agricultural development, Water & climate change and Education

Context of Mali Mali is a landlocked country in the Sahel region. However, due to a favorable climate in the south and the huge irrigation potential in the Niger Inner Delta, it has the potential to become a „breadbasket‟ for the West Africa region. Mali is also one of the few countries in the region that has had a stable democracyfor a number of years. . In 2012 new elections are foreseen. Factors which prevent Mali from reaching its potential are a poor investment climate and a severe lack of capacity, particularly for market oriented private sector activities. Poor infrastructure and service delivery also limit economic growth. In recent years, the Malian government has taken important steps to promote agriculture and food security. The adoption of the „Loi d‟Orientation Agricole‟ and a master plan for rural development (SDDR) are clear signals that agriculture and food security are at the top of the political agenda. The government has also increased its own investments in agriculture to 13% of the national budget in 2010 being one of the few countries in Africa which has exceeded the

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target (10%) set in the context of the AUC/NEPAD Comprehensive Africa Agriculture Development Programme (CAADP).. The massive drive to attract foreign however, raised serious concerns about the future of small scale farmers and (semi)nomadic livestock holders. There are also concerns about water and land management in the Niger Delta. Concessions totaling more than 320.000 ha have been awarded to UEMOA, Libya, and some large scale private investors. Depending on the types of crops, it is estimated that there is sufficient water available for 200,000 300,000 ha. According to the recent water mission (June 2011; Jean Luc Frerotte and Bert Satijn) there is already a shortage of water at the end of the dry season, even though some of these schemes are not yet in full operation.

investment, especially in the Niger Inner Delta has



       

  

In short: Despite Mali‟s enormous agricultural potential, current low yields and high post-harvest losses limit the net quantity of food available to feed a quickly growing population (Low productive value chains) Financial institutions regard agriculture as a high-risk endeavour due to smallholder-based systems dependent on irregular rainfall. Limited access to financial means / products (credits, insurances, collaterals etc.) Not enough infrastructure for irrigation, processing and commercialisation ( including developing regions which could become more accessible) Not enough strategic & operational management of water Limited access to sustainable energy sources No clear policies on land tenure issues Low household incomes, particularly among women, limit peoples‟ ability to purchase nutritious food. Improper feeding practices, high disease burden, poor sanitation and access to clean water and low health service utilization leads to significant health problems, including stunting and wasting. Limited quality extension services and education Limited regional research Weak agricultural policy environment restricts investment and competitiveness (Limiting commercial factors [national, regional, international] )

Small scale farmers do not have sufficient access to inputs to make their enterprises viable. Many are in debt and, in the Office du Niger, risk eviction. Most farms are too small to become viable enterprises. Increased water use (and losses) will affect water availability downstream in the Inner Delta and further north into Niger. According to a recent study (Brondeau, 2011) there have been no studies to assess the impact of uncontrolled expansion of the area under irrigation. The main cash crop in the south of Mali is cotton. Cotton production has fallen in recent years as a result of low world cotton prices and poor implementation of reforms in the sector. Whereas in 2003/2004 Mali produced more than 600.000 tons of cotton, estimates for the 2010/2011 season are 261.000 tons despite the recent increases in prices on the world market. Although performance of the cotton sector remains poor, rain fed and irrigated cereal production is increasing rapidly. Cereals output reached a record 6.3m tons in 2009/2010. However, the backlash in the cotton sector has had a negative impact of food production. As cotton rotates over patches of land, food crops such as dry land rice, millet and sorghum and fodder crops benefit from residues of fertilizers and conservation practices used to promote cotton production. The near collapse of the cotton sector has also encouraged diversification. Producers are less dependent on a single cash crop and therefore becoming more resilient to changing weather patterns, risks of crop failure and the vagrancies of world price fluctuations. In terms of policy trends the EIU notes that „cereals output is the largest component of GDP growth and that Mali could realistically move from being a net importer of cereals to being a net exporter and emerging regional breadbasket‟ They also point out the challenges of „balancing the desire to attract export oriented foreign investment in the cereals sector with the interests of local producers‟.(EIU, May 2011).

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Food & nutrition security In 2006 more than half of the population lived below the poverty line of USD 1,25 p/day and more than 70% under the line of USD 2 p/day. The Global Hunger Index in 2010 indicated between “Serious and Alarming” (between 19 and 20) and diminished since 1990 (24); The rural and urban poverty increased in the period 1990-2009 (resp. from 30 to 32% and from 75 to 80%). The calorie-intake p/d (2525Kcal) is above the FAO norm (2450 Kcal), but this is overlooking the undernutrition of children under 5 years and the shortage of protein, vitamins and minerals in the daily food intake. Mali‟s food security problem is characterized by an underdeveloped agricultural sector that has not fulfilled its potential to stimulate broad-based economic growth; unreliable food markets with seasonal price variations that do not consistently provide sufficient quantities at affordable prices; and a significant proportion of people that do not have nutritionally sufficient diets. Concerning the production aspects the challenges can be found at the level of quantity, quality and variety and concerning the demand side there are problems around the purchasing ability, accessibility and awareness. In the south of Mali where cotton should have contributed towards wealth creation, levels of poverty (83%), and under five stunting (45%) and wasting (16%) are among the highest in the country. This shows that there are risks involved in dependency on a single non-food cash crop such as cotton. APF has identified this as a focus area for their interventions. Some evidence based figures below are the following: Underdeveloped Agricultural Sectors  7% of 43.7 million arable hectares of land currently cultivated.  14% of 2.2 million potential irrigable lands currently irrigated. There is never enough water to irrigate all this land. Only extension of rain fed irrigation might be possible  2% of agricultural products on selected value chains planted with improved seeds. Unreliable Food Markets • Between 30% - 40% of crop production lost before it reaches the market. • Seasonal price fluctuations because farmers sell immediately after harvest. Under nutrition • 29% of population malnourished. • 16% of children under five wasted. • 38% of children under five stunted.

Sources: Ref: Demographic Health Survey 2006 PNIP-SA 2010 Mali: The Demographic Challenge; World Bank 2010 West African Seed Alliance EKN: policy notes

In short, some trends are: Growth of the agricultural sector is not stable : 13,2% in 2008, 5,7% in 2009, 10% in 2010. With a population growth of 5,6% / year the growth should be for each year at least 9,4% p/year in order to achieve the MDG1 in 2015. Nevertheless Mali has been able to dramatically increase cereal production and is promoting diversification. Agricultural production is increasing mainly through the use of new land for agricultural production and through increase of productivity due to improved inputs ( seeds, mechanisation, etc.) At the same time certain production areas have been given to largeforeign and domestic enterprises, depriving small scale farmers of access to prime lands. The effect on poverty reduction / improvement of food en nutrition security is indirect and not yet verified

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(increase of work possibilities, more income cash crops in order to buy staple foods). In irrigated areas water accessibility for small farmers is a risk. Another important trend is the development of the agricultural policy with investment plan. One crucial part is the development of the policy and legal framework, supported also by the Netherlands

Water & climate change Water With the Niger River, its tributaries and the Inner Delta, Mali has large quantities of surface water coming for large parts from upstream areas in Guinea and Ivory Coast. Groundwater is also abundant in many sedentary areas. The relation between surface water and groundwater has been studied but are no really well known yet, particularly in the complex region of the Inner Delta. Since decades, Mali has considered irrigation a priority to become independent from the rainfed agriculture which is increasingly at risk due to the climate change. About 1 million hectares in the inner Delta area is said to be available for irrigation, but in the recent years, it appeared more clearly that water is the limiting factor, especially in low flow periods and during dry years. However, this opinion of water scarcity compared to available land is not widely known or accepted by decision-makers and donors. No serious crisis has happened yet, but some clear signs and data indicate that such a crisis might happen in the coming years, and with increasing frequency. It will be certainly the case if recently allocated land is used for irrigation of crops which require large amounts of water (Malibya, extension of sugar cane for Chinese company, rice in Alatona). New infrastructure is planned in the Niger Basin in Guinea, Mali and Niger.After construction, the hydrological behaviour of the Niger River and of the Inner Delta will change significantly, some areas will win, other areas will lose, and the future situation has not yet been adequately studied nor is it clear what types of management will be needed to ensure equitable access to and efficient use of water resources.. A general conclusion is that water conservation and improvement of water use efficiency must be two key guidelines for all water uses, including irrigation. This explains some of the options proposed for food security. Two other aspects must be noticed about water management in Mali: 1. The information system on water and land resources and uses is not developed enough in Mali. There is some progress and some services do a good job (for instance monitoring of surface water), but in general, all technical partners in Mali agree that information on water and land is not sufficient and does not allow proper coordinated management. 2. Coordinated water management is insufficient also. There are several institutions or organisations in Mali which are responsible of coordination for water uses (Commission de Gestion de Sélingué, Commission Interministérielle de l'Eau, Comités de bassin, Niger Basin Authority).As the complexity of the situation has increased significantly (climate change, population pressure, investment policies and practices) , there is no proper mechanism for a coordinated management at the national level and in relation with Guinea, the source of the Niger River. Mali urgently needs such a mechanism able to have periodic meetings and to take common decisions about infrastructure and its management, on the basis of a reliable information system. Such a mechanism will be soon proven to be indispensible to share water between all users, taking in account the natural constraints and to avoid social conflicts.

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Climate change Mali is highly vulnerable to climate change. Although periods of drought have always occurred and predictions remain uncertain, annual temperatures are expected to increase. Also the extremely uneven distribution of rain over the rainy season will increase. This poses huge problems for agricultural planning. It is important that agricultural policy and policy on water management deal with these uncertainties and use a precautionary approach. To anticipate on climate change, the National Action Program of Adapation to Climate Change has been prepared with support of the Global Environment Fund. A number of actions from this program have been taken in to account by the Malian government in formulating strategies and programmes for sustainable agriculture development and food security The lowering of the discharge of the river Niger in the past decade is partly accounted for by diminishing pluviometry which leads to reduction of river runoffs and water recharge. Large scale irrigation schemes will contribute to reduction of discharge down-stream. Natural resource management, food security as well as water issues are intricately linked. For example integrated water management implies that water resources management is integrated with the management of soils, forests, wetlands and other land uses that are directly linked. It implies also integration across scales, involving local, national regional and international users in basin level decision making, explicitly recognizing the tradeoffs that may arise between the different levels and between up and downstream water use. Mali harbours the largest inland wetland of West Africa which was announced a Ramsar site by the Malian Government in 2004. The Ramsar Convention is an intergovernmental treaty which has as its mission is "the conservation and wise use of all wetlands through local and national actions and international cooperation, as a contribution towards achieving sustainable development throughout the world". The Ramsar site in Mali covers the entire Inner Niger Delta‟s floodplain of more than 4 million hectares.

Education Within the current PRSP (Cadre Stratégique pour la Croissance et la Réduction de la Pauvreté, CSCRP) as well as within the discussions on the future PRSP (as from 2012) strong emphasis is made on the relation between the growth agenda and required progress in social development (especially education and the development of human capital). Therefore, the Government of Mali has over the last years increased its budget to the education sector (from 19% of government recurrent expenditures in 1995 to 35% in 2011). In line with this vision in the current PRSP, the main objective of the third phase of the education sector investment programme (PISE III) is the improvement of the quality of education. A second focus will be on technical and vocational education and the link with the needs of the Malian economy. The focus on economic development and the importance of human resource and skill development fits well with the new Netherlands priority themes. One of the top priorities of the government of Mali is the development of the rural sector. Vocational training and university level education in agriculture are part of the PRSP.

3.2

Netherlands position (added value) relative to the Malian context

The development of the rural sector in Mali is top priority, in the PRSP is this sector mentioned as the motor of the economic growth. Therefore the development of policy, legislation and investment plans for the rural sector are priority as well. Local government and civil society actors support these and stimulate the sense of urgency. The support to value chain development and improving the access to sustainable energy are important in this sense also. The progress is not very high on the level of financial products and the limitation of commercial barriers are important actions to be worked on by the private. Also competency based education is see as prior, still difficult to change.

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The Netherlands has a long standing development cooperation relationship with Mali which started in the 1970‟s. The main focus has been on developing irrigated agriculture in the Office du Niger. This is also one of the success stories in Dutch development cooperation. At present The Netherlands is responsible for donor coordination in the Office du Niger. In the past, The Netherlands also supported activities in the cotton producing areas in the south and agricultural research. SNV has been involved in agricultural value chain development and pastoralist livestock for a number of years throughout the country. In the Netherlands, there is good knowledge of the Malian context with a strong focus on agriculture and water management. The Netherlands is seen as a reliable and neutral partner-country in the Malian context. Also on the level of educational support, the Netherlands has a strong position. Policy and budget support for the PRSP has been a constant factor as well. Stimulating private sector investments, whether these are Dutch, national, regional and international is a more recent development which has not yet fully taken root. However, the Netherlands have not yet fully exploited the opportunities to use their expertise in horticulture, livestock and water management to promote agricultural development and food & nutrition security. Also the support to education could be more focused and policy support as well. The Netherlands could add value in the following areas:

Land and Water management Netherlands expertise in land and water management has been one of the success factors in support to the Office du Niger. The Netherlands has been instrumental in reforms in the Office du Niger to build irrigation infrastructure, manage water resources, strengthen farmers‟ organizations and support the allocation of land. Knowledge institutes like the WUR with its specific units for water and land management, and different experts have been supporting the Office du Niger in all these aspects. Private sector engagement in this sense could very well be envisioned and much more stimulated.

Horticulture The horticulture sector is growing in Mali. In irrigated areas such as the Office du Niger and the inner Delta, horticulture is becoming even more profitable than rice production. In these areas, vegetables are produced during the dry season mainly by women for whom it is an important source of food and income for the family. The Netherlands has a strong tradition in horticulture, agro-logistics and food processing in both Western countries and in developing countries. Developing horticulture value chains is a logical Dutch entry point. The Netherlands has expertise: inputs, production, knowledge, logistics, finance, organization and marketing. The private sector is also an important potential partner and has extensive experience in other parts of Africa. RijkZwaan is one of the leading seed suppliers in the world, and is ready to start in West Africa. Bakker Barendrecht and Ahold have been instrumental in Mali building expertise for mango exports. Invaluable expertise has been built up at the knowledge institutions such as the WUR and KIT and at the level of the Dutch NGO‟s, like SNV, ICCO, Hivos, Oxfam Novib etc. Food security problems in Mali go hand in hand with the underdevelopment of its agricultural sector. Market-driven improvement of agricultural productivity and agro-chain development are a necessarycondition for increased food security in Mali. Dutch strengths in top sectors like agro-food and horticulture have a lot to offer in that respect. The challenge is to avoid supplydriven or policy-driven top down approaches and to respond to market demands in a way that that, directly or indirectly, enhances the food security situation in Mali.

Livestock Another area of expertise within the Dutch private and public sectors is in livestock management and dairy and meat production. Companies such as the Frisian Agro Consultancy, Nammen Schaap and Farmco have expertise in livestock keeping. Other companies such as Friesland Campina are involved in dairy processing. A large number of Dutch companies are involved in production of animal feed supplements. The WUR has a unit specializing in livestock.

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Support to the Education Sector in favor of the rural sector in Mali For EKN Bamako education is not only seen as an important sector in itself but also in relation with the other two main sectors of our Development Cooperation Programme in Mali: Sustainable Economic Development and the Health Sector. The Embassy signed recently a new MoU for its SBS to the PISE III in which more specific attention will be given to the whole education sector and more specifically to quality indicators, indicators related to vocational and technical education and the reforms in tertiary education. As one of the flanking measures the Embassy will identify in the course of 2011 (as preparation for its next MASP) how to assure more institutional support to both the Ministry of Basic and Secondary Education and the Ministry of Labour and Professional Training (together responsible for vocational and technical education). Another area identified is an opportunity for Dutch support to the diversification of the higher education landscape through support to the creation of a new University in Ségou. There‟s a relatively small donor group for the education sector in Mali, especially when taking into account only the like-minded or the „bigger‟ donors (only 3 SBS donors). The Netherlands has been an active partner in the education sector as from the beginning of the first phase of the Education Sector Investment Plan in 2001 and has been a driving force to establish the sector wide approach. The Netherlands continues keeping a leading role in the SBS subgroup as one of the biggest donors over the last several years (€ 94 million for PISE II, in 2010 € 20 million for PISE III). Also with the considerable budget cuts in 2011 and probably in 2012, The Netherlands will remain an important donor both in financial as in technical terms and within the process of coordination, harmonisation and alignment. Over the last few years, various donors have stepped out of the education sector such as Sweden and Belgium (for harmonization and donor coordination reasons). Various Donor Partners are currently changing their priorities within the education sector from a focus on basic education towards a focus on Vocational and Technical Education and Training. AFD just organized an intensive identification mission, USAID just signed a program on Vocational Training and also ACDI is reflecting on a broader involvement in vocational and technical training. The World Bank is investing more and more in the reforms in Higher Education. Collaboration with the Ministry of Higher Education and Science and the World Bank in this regard started recently through the co-financing of a series of studies. In this regard opportunities for collaboration with Dutch Higher Education institutions like the WUR, including van Hall Larenstein (through NICHE programme) are multiple. Not only ate the level of development of the curricula, pedagogical methodology , but also at the level of market research and the support to the setting up of the whole educational chain, WUR has proven to be well experienced.

Coordination with other donors The Netherlands play a lead role in the donor coordination in Mali, especially in the educational sector and the support to the Office du Niger. Also in health, the Netherlands play a lead role. As the Dutch are seen, since long as a neutral country partner by Mali, the Embassy could play a more prominent role in specific subsectors related to food security and water. Inputs from Dutch knowledge institutions and potentially from investors based in The Netherlands will contribute towards raising the profile of Dutch cooperation with Mali.

4 Outcomes, the Netherlands wants to make a difference on As mentioned in the Strategic Note on Food and Nutrition Security (May 2011), The Netherlands distinguishes 4 outcomes on which it wants to make a difference. These are (1) improved food production, (2) more efficient markets; (3) increased access to healthy food and (4) improved business climate.

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Based on the discussions, the FNS support team has tried to link the identified FNS-specific binding constraints to the afore-mentioned outcomes. Although the team clearly realizes that these links are not simply linear and that are certainly linkages between the 4 outcomes as well, this categorization and clustering has helped the team to identify entry points for further consideration and action (see below). The FNS support mission has identified the following binding constraints in relation to each outcome: Food production 1. limited access to financial services in rural areas 2. limited availability and use of high quality seeds and other inputs 3. limited and/or poorly available and operational advisory/technical services (e.g. in the area of extension, laboratories, disease control etc.) 4. poor management of land tenure issues and water management (poor knowledge on laws, very weak or corrupted enforcement, very limited administration) 5. poorly developed or absent infrastructure (such as dams, irrigation schemes, flood control structures etc) In relation to the outcome efficient markets, 1. weakly developed or absent infrastructure (such as roads, electricity, communication means etc) 2. limited market participation of smallholder farmers 3. absence of a level playing field in which competition is fostered in a transparent way 4. limited skills in linking producers, agribusinesses and consumers In relation to the outcome access to healthy food, 1. weakly developed or absent capacity in implementing interventions that effectively reduce malnutrition (both in towns as in rural areas) 2. very limited possibilities for decent incomes (either by self-employment or as labourers) within and outside the agricultural sector In relation to the outcome business environment, 1. limited or often no access to (formal) financial services for Malian-based SMEnterprsises in rural and urban areas 2. breaking contracts/agreements in business deals (at different levels, as in overall culture) is quite common 3. weak management and often ineffective and/or non-transparent use of natural and public resources 4. very limited or often no linkages between research, markets and (potential) entrepreneurs, including small scale farmers. 5. infrastructural works are limited in relation to the needs (railways, roads, electricity, ICT etc)

4. Programme Focus 4.1

Guiding principles and key questions

The mission elaborated a number of guiding principles and criteria that could guide the Embassy in taking decisions for new interventions. The guidelines were chosen based on: the analysis of constraints, the lessons learned during the range of interviews and the field visits, the paradigm shifts in the Dutch development policies, and the current changes in the world markets and the opportunities arising from this. The questions formulated below have been based on the frameworks developed by Woodhill and van Vugt (CDI WUR) around the FNS challenges for these missions.

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The overarching guiding principle: All FNS interventions should lead, in a coherent way to household food and nutrition security. This includes sustainable incomes as well as food production and risk management. In 1. 2. 3. 4. 5. 6. 7. 8.

General: Align interventions to the policies of Mali Build on demand and evidence based programming Recognise the private sector as a driving force Link NL interventions to inclusive growth Ensure added value of NL‟ contribution Include capacity development at all levels Keep the big picture in mind Closely Link FNS activities with Water Programmes (availability and allocation)

More specific criteria for concrete interventions are: 1. Concentrate on geographical and corridor approaches: focus on “smart” areas: where you can make a difference ; regions which are connected 2. Focus on improving efficiency of water and land use (in already cultivated areas) rather than expanding cultivated areas 3. Stimulate improved river basin/delta management (including adaptation to climate change) 4. Increase efficiency of existing infrastructure 5. Stimulate entrepreneurial farming: increase „crop and sales per drop‟, focus on the reduction of post-harvest losses 6. Stimulate and strengthen the market orientation: demand driven integrated supply chain development 7. Strengthen the Dutch connection: know how, business, capacity development, farmers. 8. Give attention to farmers as private sector entrepreneurs. 9. Focus on private sector involvement in achieving efficiency gains in agricultural value chains: focus on diversification and cash crops as well as basic food crops. 10. Focus on integrated supply chain development: i. Basic Business skills ii. Vocational training iii. Input improvement iv. Improved productivity, quality and sustainability v. Efficient / logistics: transport, storage, packaging  Marketing and sales: local, national, regional, international  Branding, pricing, adding value vi. Organizational development 11. Explore creative means to increase access to finance for innovations and pilotsFoster effective networking but abstain from unproductive coordination 12. Collaborate with successful implementing actors 13. Stimulate coherent activities 14. Where possible, opt for co-funding promising transformation activities 15. Promote synergy between all NL instruments 16. Avoid crowding out private sector initiatives and stimulate NGOs to exploit their strengths i.e. capacity development activities of smallholders associations

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Fig .2

Fig .3

When you take into account the frameworks developed above, several questions seem important to ask, which also link very closely with the criteria developed above: 1. Is economic development leading? 2. What is the level of self-reliance? (Social, political, economic....) 3. Can the Netherlands make a difference? And where? What is the added value of the Netherlands? ( eg. water) 4. Are there opportunities for linking between the Dutch and local / regional expertise, knowledge, private companies, NGOs ? 5. What is the level of visibility linked to the level of effectiveness? 6. What is the opportunity around: consumer, markets, production? 7. What is the contribution to Food en Nutrition Security – income increase? 8. How are the farmers taken into account as entrepreneurs? 9. What is the level of improvements for the business environment? 10. How is the option embedded in the institutional context? 11. How many beneficiaries and what are the costs? (costs per farmer and revenue and profit per farmer)

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4.2

Water and Food & Nutrition Security

As mentioned already before, the FNS mission in Mali is completely interlinked with the water mission, which explains the necessity of the development and explanation of the framework below. Figure 4 shows the interlinkages between water management and food security. In the Malian context, especially in the Delta region which is considered to be the breadbasket for the region, efficient water management is a basic condition to achieve food & nutrition security. In the proposed Delta Development Plan, increasing efficiency of water use will play a major role. Considering the adopted principles (chapter 4.1), three main options are proposed for water in relation with food security. Technical instruments (networks, models, GIS) water/soils/environment climate change

Fig.4

Communication (international, national, regional, local)

TO KNOW the resources

self-subsistence Storage Transport Transformation Standards quality Continuity Knowledge of the market Improved seeds

Management of inputs Techniques (agricultural, pastoral, piscicultural

sale

TO SELL production

TO INCREASE yields Professional training Private sector & farmers organisations

More food Sustainable to eat to make money

TO DECIDE In dialog Social Impacts Economic impacts Potentialities of market TO SAVE water

TO CREATE infrastructures Participative

Governance Mechanism for decision making at various levels: local – basin committee National - International (policy documents, infrastructures, management plans for water, soils, environment, assembly of the interests)

?

Types of production

Techniques of transport and water mobilization

Company

Option 1: To build a framework on long term adaptation on water, spatial planning, land use and climate focusing on sustainable water management, food security and a progressive adaptation to climate change. The objective of this option is to contribute to increasing the resilience of the system water-land resources and uses. The implementation of this option can be largely based on the experience of a similar approach in The Netherlands (Delta Plan). Option 2: To build regional instruments on water management to develop knowledge, models, instruments, monitor processes and implement adaptation measures supporting integrated river basin management. This option concerns the box "to know the resources" in the previous figure Option 3: To strengthen governance capacities on institutional and managerial competences on legislation and enforcement, finances and economics, communication and participation. This option concerns the box "To decide in dialogue". These 3 options will be detailed in the specific report on water. As regards to the main options considered by the EKN Bamako, the conclusions about water can be found integrated in each chapter.

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With these criteria, questions and water-options in mind, the team analyzed the following options: 1. Office de Niger (ODN) 2. Alatona irrigation scheme 3. PADIN: Inner Delta village irrigation schemes 4. Alternatives, including activities of the Dutch NGOs 5. Professional training 6. Policy Support

4.3

Option 1 Office du Niger

Netherlands support to the Office du Niger is mainly in the form of budget support for implementation of the „contrat plan‟ (agreed 3-5 year program of work between the government of Mali, Office du Niger and the farmers). One of the major problems in the zone is the high population density. As a result farms are too small to be economically viable. Approximately 360,000 people depend on 90,000 ha of irrigation land for their livelihood. Two of the main concerns of the donors involved are (i) finalization of the master plan for irrigation and livestock („Schema Directeur d‟Amenagement Hydroagricule et Pastoral‟) and (ii) land tenure issues. Large scale land allocations to outside investors largely surpass the estimated potential irrigation area (est. is 200,000 ha to maximum 300,000 ha). The government of Mali sees the zone of the Office du Niger as one of the main pillars for national food security with rice production at its core. The position of the Office du Niger as an institution responsible for land and water management, however, is being undermined by land allocations through the President‟s Office. This makes it difficult for the Office du Niger to plan water use in line with technical and social imperatives. This option is closely related to the 3 options proposed for water. These 3 options (framework on long term adaptation, instruments for water management, governance capacities) will contribute to secure and to enhance efficiency of the production on a long term vision in the area of the Office du Niger. In the case of Office du Niger, the relations between food security options and water are very important because of the large consumption of water in the area and the large extension of land allocation in future projects. Key Messages 1. Limit extension of infrastructure and focus on increased efficiency and sustainability (water, land use, crops); introduce measures to reduce water losses. The priority n°1 must be to optimize the use of water for all the production, before extending to new irrigated areas ("to produce more food per water drop")

2. Improve value chain efficiency and effectiveness (seeds, processing, transport storage, etc..) Rethink focus on rice in favour of other cereal crops and horticulture ( less water use, commercial, better income and better nutrition). A better balance can be encouraged between rice/sugar cane (high water consumption) and the other productions (low water consumption, but still high economic value).

3. Strive for consistency of policy and practice with regard to land allocation (president‟s office) ; there is a lack of transparency in land allocation decisions, which exposes the need to actively involve Malian NGO‟s and farmers in lobbying/advocacy to protect the interests of small farmers (countervailing power) 4. Netherlands involvement should also include knowledge institutions (not limited to (Dutch) private investors who are probably not interested in investing heavily in the OdN. There may be more interest on the part of local, regional and other international companies.

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5. Embassy could also consider other types of Dutch investment e.g. in services and inputs such as seeds and technological expertise. The link with education here is evident, taken into account the university and vocational chain development in Ségou. 6. Review division of functions and roles with other stakeholders (private enterprises, NGOs, knowledge institutes, etc..) Advantages  Lead donor, high visibility  High level of coordination between donors and with government  Potential Netherlands involvement in input supplies, processing, technology innovation with a special focus on horticulture:  It is a favourable area to use Dutch know-how of irrigation, water management, and\processing.  Central part of the national government policy for food security Risks (to be mitigated)  Interest of investors who have stakes which are not always favorable for all.  Water shortages because of climate change and competition for water: There is an increasing risk of water crisis due to the projects for future extensions. As said previously, land is not the limiting factor, but water is. In the present situation of the ON, a crisis might happen in February- June when a dry year occurs.  There are no alternative groundwater resources (about 1 water well for 10 hectares). Locally, groundwater could be used to replace surface water, but this solution is applicable for local areas only and not for the entire area of ON.

4.4

Option 2 Alatona irrigation scheme

In the Alatona zone funded by the Milleneum Challenge Corporation, 14,200 ha of land in the zone of the Office du Niger but not under its direct supervision are being prepared for irrigation. The first tranche of 5200 ha will be „sold‟ at concessional rates to the inhabitants of displaced villages and 9000 ha awarded to private investors. 1000 ha have already been brought under cultivation by local villagers in the first tranche. The MCC project will end in October 2012 by which time most of the first tranche is expected to be under cultivation. MCC wants to get other donors involved to ensure continuity. There are however, serious concerns about the availability of water and the turn-key approach used by MCC (which includes free inputs, housing, schools, clinics, etc.). Alatona is at the end of the water pipeline, quite far from the Markala dam. In case of conflicting competition due to a water crisis, Alatona will be the first to suffer from water shortage. On the other hand, alternative groundwater resources might be available, but the cost would be very high and probably economically not feasible (In average, 1 water well is necessary for 10 hectares). The rain is very weak and irrigation will be necessary during longer periods than in the rest of Office du Niger area. There are also concerns about the integration of livestock keeping and crop production. Last but not least, security is becoming a major problem in this area. Alatona will depend on OdN water management capabilities, the Office du Niger is responsible for the primary and secondary infrastructure and water distribution. When the MCC support ends next year a merger with ON may be needed to ensure a consistent follow up. As mentioned already, there are major concerns about the availability of water and to what extent small scale farmers will still have sufficient access to water. There are also doubts about the capacities of the OdN to effectively manage such a large area.

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No adequate information was available to sufficiently assess the environmental impact of the Alatona irrigation scheme. To get „ a permis environnemental‟ of the Malian government, the project was forced to compensate part of the deforested area with a reforestation scheme which has not yet been established. Therefore, before any decision can be taken, it is recommended to engage the Commission MER to carry out an Environmental Impact assessment. An environmental assessment procedure, like EIA or SEA should be carried out. Preferred land tenure arrangements are different for small farmers (need secured land titles) and larger investors (long term leases to avoid land speculation). It remains to be seen whether the Office du Niger will adopt the Alatona approach of giving producers secure land ownership, which seems to be the preferred option. Not clear whether investors (esp. Dutch investors) would be interested given the distance (from Bamako), the security situation and the uncertainty about water availability, which could all be critical constraints. Institutional arrangements for the sustainability of the programme (1st tranche) are still very weak; at this moment the programme falls under the presidential office and it is not clear how this will continue in future. To date it has been managed independently from existing institutions. Like for Office du Niger, the 3 options for water management are concerned in Alatona. The most important option is option 2 (instruments for water management). Due to the position of Alatona at the end of the hydraulic network, far from the Markala Dam, a close monitoring of water resources combined with a short and middle term modeling of water management is required to ensure water availability and to reduce as much as possible the risk of water shortage. Key Messages The mission recommends further studies to assess: 1. Land tenure and land use issues, including integration of pastoralism 2. Water availability and distribution mechanisms 3. Environmental & social impact 4. Potential private sector investments 5. Security requirements 6. Institutional sustainability and ownership creation Advantages  Joint ventures or investments between Mali and The Netherlands : increased production of rice and horticultural products. Possibilities for other cereal crops and biofuels. As a part of a broader Delta Development Support Programme support, a.o. through the private sector, could be provided in specific sub-sectors. Risks (to be mitigated)  There is a great risk of water crisis: Alatona is not the best place to consider for fast track investments; in the event of a Dutch commitment, it is clearly a priority area to cultivate crops other than rice or sugar cane, both of which require large amounts of water.  Land tenure and land use: the people have their own land ( this is not the case in the OdN) but these could be easily sold and the bank could confiscate this in case of non-payments of credits etc. This can also lead to emergence of uncontrolled land market  Limited capacity of the OdN to manage the whole water supply system.

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





 

Reputational risk; The reputational risk is related to the social impact of the irrigation scheme as 33 villages were displaced. Although the population received considerable compensation, it was not clear what had happened to the population from tranche 2 and 3. Furthermore no attention was given to the fact that a large part of the population will still keep a lot of cattle. Integration of pastures in the area are foreseen but probably pastures have to be found outside the irrigated zone also. Without securing access to pastures and water, major problems can occur for which the project will be held accountable. There is also a risk that people in other areas will raise objections to free distribution of inputs and other facilities. In a way, this still could be mitigated by the transparency and reputation of the donor and, in future, a more consistent approach towards allocation of resources based on current thinking about community participation Unavailability of investors due to security risks and limited accessibility Security, water shortages because of climate change and competition for water, distance

4.5

Option 3 PADIN

Before presenting the PADIN as an option for food & nutrition security, a brief presentation of the PDD-DIN is necessary, PADIN being a part of this PDD-DIN. The "Programme de Développement Durable du Delta Intérieur du Niger" (PDD-DIN) plans to contribute substantially to the socio-economic development of the Inner delta of Niger (DIN), which in spite of its important water and land potentialities remains a zone of poverty for the million and half of inhabitants who live there. The preparation of this plan has been financed by the EKN Bamako. The DIN is an original zone, it has very great environmental value and is characterized by a completely particular hydrologic system, with the fluctuation of water level whose amplitude reaches 6 meters and which affects up to 30,000 km2 at the time of the exceptionally wet years. Economic potentialities and the environmental wealth of the delta are directly related on the height and the duration of the flood. However this rising is more and more threatened by the infrastructures carried out in the upstream basin of the river (mainly irrigation and power producton) and by the unfavorable effects of the global climate change. It is now certain that the flood conditions will change, and consequently the economic potentialities of the valorization of the lands and water also will change. The traditional modes of exploitation of agriculture, cattle breeding, fishing, navigation will not be viable any more, more especially as the growth of the population continues at an intensive pace, one of highest of the West African area. The irrigation with total control of water must be the heart of this development, by associating rice and high value productions. It is the "PADIN" part of the PDD-DIN. At the horizon 2020,65.000 hectares thus arranged will be necessary to ensure food selfsubsistance, by taking account of the increase in population. The sectors of the cattle breeding and fishing will be those which will suffer more of the hydrologic conditions. For these two sectors, the priority must be given to improve valorization of the available capital rather than to increase this capital (livestock or tonnage of produced fish). In other words, it is necessary to improve these sectors without seeking to increase their production capacities rough. Lastly, three important actions must join the PDD-DIN, and for this reason, they are registered as actions of the plan: the opening-up of the delta, the security of available water by taking account of infrastructures and the needs for the upstream, and the safeguarding of the major waterway that is the axis of the Niger river, threatened in many places by sedimentation and sand banks.

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The PDD-DIN thus proposes 39 actions, defined on a 10 years horizon, and a 38 billion francs CFA budgetary programming over the first 3 years. This first phase includes the creation of 2000 hectares irrigated (beginning od PADIN, being performed now with the contribution of Care Mali) The actions of the plan relate to general activities (opening-up, security of water, institutional implementation of the plan), and the sectors of agriculture, cattle breeding, fishing, energy and the environment. The PADIN programme, implemented by CARE, is located in the inner Delta to the north of the Office du Niger and south of Mopti. 2 million small scale farmers en pastoralists live in this area and depend on rain fed crop production and livestock for their livelihoods. According to the statistics 89% of the population is poor and malnutrition widespread. The project focuses on village based irrigation schemes of 30 to maximum 60 ha. each which are irrigated directly from the Niger River using pumps. Village residents participate in the construction of the sites and are trained in management and maintenance. The aim is to build several schemes to serve at least 30% of the population within 5 years. CARE works closely with village leaders who sometimes take the initiative to further develop agriculture related infrastructure (e.g. storage sheds) and take responsibility to maintain the infrastructure, including measures to control livestock movements to avoid damaging the water channels. In the schemes, special areas are reserved for women involved in vegetable production. The embassy has agreed to fund the project for two years and would like to extend the funding for a longer period. The 3 options for water management will contribute to food security in the PADIN area like for Office du Niger and Alatona. But in this case, the main risk is by far the shortage of water on a middle and long term due to the increase of water uses upstream. So the option 3 (water governance) will be a key option to secure the development of sustainable irrigation in the PADIN area. Without an efficient mechanism for water sharing and for a coordinated water management in the basin, the PADIN area will be the most vulnerable to possible impacts of upstream infrastructures and water uses. This conclusion is also valid for environmental impacts of irrigation and water infrastructures on the Inner Delta of the Niger River. In the present situation, the development of irrigation is just at the beginning in the PADIN area and there are no significant problems of water resources. But within 10 years, if the irrigated area are increased up to 50.000 to 100.000 hectares as proposed in the PDD-DIN document, water availability may become a problem, particularly if it is combined with upstream adverse impacts linked to water uses and climate change effects. Key messages 1. Continue with Padin (6000ha 2011 and 2012) with 5000ha every year 2. Potential to reduce food insecurity in the region by 1/3 in 2017 if plans are implemented 3. Adaptation to climate change 4. Increased income- high value crops, increase of livestock 5. Due to the scattered distribution of small irrigated plots (average 30 hectares) and availability of water in the Inner delta, the risk of lack of water is not very important. 6. Due to the small size of the plots, alternative groundwater resources can be considered (improving the resilience of the local systems) 7. Solar energy (or wind mill?) for water pumping must be considered, and if tests are positive, alternate devices must be supported and popularized. 8. The interventions should add to the percentage that is available to be sold on the market.

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Advantages  High visibility  Included in the national government policy for food security  Potential Dutch involvement in input supplies, processing, technology innovation in horticulture and livestock  The area presents an interesting potential for Dutch suppliers of equipment. Risks   

(to be mitigated) Very limited (Dutch) private sector investment possible Difficult to significantly upscale Low margins although this is relative to the context of the local economy

4.6

Option 4 Alternatives

1.

Increase efficiency in the livestock sector value chain

In Mali different livestock production systems co-exist. (1) Transhumant pastoralism is marked by seasonal movements between complementary ecological zones. These transhumant breeders increasingly have to deal with agricultural pressures, greater environmental constraints and changes in land tenure. Many of these producers forcedly turn towards agropastoralism or to a sedentary breeding system. The major product of the herd is milk - which is sold on local markets - but the herds also provide mature male animals for transfers as draught animals to neighboring agro pastoral and sedentary systems. When animals are no longer producing milk the are sold for their meat and often transported to the coastal area of West Africa which is a net importer of meat. Although the Niger delta is used by transhumant pastoralists, the mission did not identify possibilities to improve the system in the present scope. The only activity one could think of is to improve the value chain of meat by establishing slaughterhouses in Mali instead of exporting live animals. (2) The second production system, is the agro pastoral livestock production system in which besides livestock (often including draught oxen), agriculture constitutes an important part of the household economy. However, farm surplus is often invested in livestock and the main sociocultural identification is still related to cattle breeding. In the Niger delta this production system is wide spread. (3) The third category, the agricultural stock keepers have their main focus on agriculture but they invest in cattle and keep draught oxen to support their agricultural system. Small ruminants are kept primarily as a source of meat and as a ready source of cash. Key messages For the latter two production systems the following would be advisable in order to improve the value chain of milk and meat: 1. Raising the level of the professional knowledge, f.i. establishing practical training centers. 2. Improve the fodder situation to increase nutritional stress and to prevent massive fluctuations in weight; improve housing and nursing of the animals to raise the production 3. Improving the genetic quality of the cows by using artificial insemination. 4. Establishing small milk processing plants which could be a possibility for transforming and marketing the (raised) milk production.

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5. The demand for poultry products seems to be increasing. There may be opportunities to set up medium sized poultry farms Bigger farms (bovines) in the neighborhood of cities Besides the livestock systems in the Niger delta there are large farms near the cities. Most often the animals are pastured around the farms and stabled at night. Here we find entrepreneurs with vision and sometimes clearly described plans for the near future. Key messages 1. It would be possible to assist these kind of farms to extend their production (milk and meat)and to help them in transforming and valorising the products. 2. A possibility would be to establish an “industrial” farm for the production of milk or meat and transforming and marketing the production in a professional way including milk processing plants and slaughterhouses. 3. Farmers have been identified who are willing to establish “modern” milk processing plants and fodder production plants but are looking for assistance: In finding well educated employees and (foreign) counterparts willing to invest and provide skills and knowledge; machinery, artificial insemination and veterinary services. This can probably be done on a win-win basis. 4. Also there are farmers, wanting to make some smaller steps towards improvement and looking for capital (expensive in Mali) to realise their plans. Important Concluding remarks: High potential for livestock improvement in the Delta areas Also potentials to improve livestock holdings in the vicinity of Bamako and Ségou Working with the Dutch NGO sector in this is highly recommended, especially as SNV is known about her expertise. Linking to the Agrihub could give added value. 2. Other products identified for improved value chain development & the accelerator fund Within the context of Mali there are ample opportunities to develop value chains for local, regional and even international markets. Having said that, there are not may examples of successful chains. One of them is mango‟s, which are now being exported to Europe in reasonable quantities. Export to international markets is a challenge in itself for Mali, because it needs to transport any product that is shipped, to one of the neighboring countries with a harbor or ship by air which is often too costly given the limited air connections Key messages: Working with products in Mali, one needs to pay attention to the usual aspects that drive a supply chain (integrated supply chain development):  Basic business skills (the existing business development services (BDS) should be better looked in relation to their quality, accessibility, existence etc)  Specific vocational training  Input improvement  Improved productivity, quality and sustainability  Efficient logistics: transport, storage, packaging  Marketing and sales: local, national, regional, international, branding, pricing, adding value  Organizational development  Access to finance / Financial support: which products for which target groups

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These aspects should be taking into account for any region/assortment matrix that is considered. These products could be: Onion, Tomato, Mango, Sesame, Millet, Sorghum, Meat, Milk, Vegetables, Shea, Cashew, Peanuts, Fish, Spices, etc. Also an idea could be to focus on wheat and corn: Less water needed, feed cattle and people and higher nutritional value. Potential for rain fed agriculture and rice production (Nerica) in the swamps (‘bas fonds’) in the south of Mali is another very interesting option! (according to SEGAL only 20 % of total rice production is from the OdN). The production of several crops in the Bas Fonds of Mali could be an interesting alternative or an add on to the focus on the Delta region. Realizing the agricultural potential of inland valley lowlands in sub-Saharan Africa while maintaining their environmental services is a programme which is conducted by WUR [CDI] / ICRA in collaboration with CIRAN. The Dutch NGO sector via their APF network has gained over the years lots of experience in this. One of the recommendations is to link very well with the ongoing activities. Decision matrix Fish

Fruits (mango's, water melon)

Knock-out criteria Donor saturation

Grains

Livestock

Nuts

Shea

Rice

Lacking Dutch connection Decision criteria

Peanut oil

Adding value (processing) Cost per farmer

Middle term

Long term

Climate shockproof Dutch connection Huge market demand Match funding by private sector Number of direct beneficiaries Potential gains through improvements in technology, skills and or institutional arrangements (nutrition, postharvest, productivity, quality) Quick wins Women participation

Mitigation necessary/may be a binding constraint Can be improved Good starting position

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Spices

Tubers

Vegetables

Also linking with the Integrated Seed Sector Development programme in Africa (WUR [CDI] ) is an very interesting opportunity for the different crops cultivated in the DDP but also in the other areas. In general the Embassy should be prepared to take certain risks (e.g. Plaza was a high risk investment but paid off well). This means that investment in pilots as a means to check viability could be a viable option. For this it would be interesting to set up an accelerator fund. Taken into account the above developed quick analysis of potential products, it is clear that some more profound analysis should be done in order to find the products which could be the so called low hanging fruits. From a quick scan viewpoint there are few considerations to be made on top of the matrix above: 1. Which products could fall within the scope of the DDP? 2. Which products can be leveraged together (through expertise already on the ground) and are creating quick wins? Products that can fall into both categories would be:  Fish  Grains  Nuts  Tubers  Vegetables Further discussions with APF and major donors could lead to identification of pilot activities to test whether certain value chains are worth investing in. At any rate it should be stressed that an integrated assortment and a focused area approach has preference over a product-byproduct all-over-the country approach. Based on an assortment, marketing programs can be created to add value and gain a stronger position in the market place. 3. Some other options can be proposed for water as key factor of food security Other options for the water investments can be the following:  Development of the irrigation upstream of Bamako (left bank) can be considered. The potential is more than 10.000 hectares easily suitable for productions with high added value. There is no risk of water crisis, access has become recently very easy as the road has been tarred. It can be an interesting area to attract Dutch investors (horticulture). A precondition is to examine why isn't the zone already developed? According the Director of Genie Rural, besides some social conflicts in local villages, there is no reason to exclude the area for irrigation. For this option, the option 1 of water (framework on long term adaptation) will be the most important. The option 2 is not so important as water will not be a problem: the site is just along the Niger River just after the border with Guinea. If this area is developed, the responsible organization for its management (whatever private or public) must be a part of the option 3 (governance of water) to contribute to a coordinated management of the basin. 

The Embassy in Bamako can continue its support for the monitoring of water quality (laboratories, programs of monitoring of water quality for agriculture, drainage networks, water quality for fish). This aspect is still weak in Mali and water quality may become a problem in some areas in relation with irrigation (increased salinity, impact of fertilizers and pesticides). It can be also a positive point or the contributions of the Dutch competences on the matter, laboratories, university, suppliers of equipment. It would also secure the investments already engaged by the EKN for the laboratories of Mopti and Bamako.

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Clearly, this option fits with option 2 of water (instruments for water management). Water quality is still a weak point of water monitoring and it must be improved, in the interest of the water users themselves and in the interest of the protection of environment. 

The Embassy should resume the support and/or the establishment of Local Committees of Water, in relation with SNV. It will improve the support to the local water governance and the development of the irrigation of proximity, which is an important element of the national policy for agriculture. Although DANIDA has taken over the support to the Local Water Committees, the EKN has an interest to develop activities in this direction. It will allow to capitalize the engaged process, to facilitate the irrigation of proximity and to relieve the exploitation of the Niger river. It can be also very favourable for the reputation of the Netherlands. The Local Water Committees are very well considered by the local populations and there is a demand for further support and creation of these kind of committees. There is certainly space enough beside DANIDA to continue the development of these local governance mechanisms. This option offers few potentialities for the Dutch private sector but does link in well with Dutch experience with water users associations. This option will contribute to option 3 of water (governance of water). The Local Water Committees are typically a good approach to develop local governance of water and to share water and land resources at the level of the communities. As such, it is a key element to complete the governance of water at higher levels, sub-basins and basin.

Although no complete Quick Scan of water could be achieved during the brief mission, some other alternatives can be considered in the water sector. It would be very useful to learn the lessons from the past support of the Netherlands. This can be done on both side , in Mali and in Netherlands. Today, such a clear picture doesn't exist. It would be a very good basis to better know what were the strong and the weak points of the relations between the Malian demands and the Dutch input and of the Dutch support over the years. It is strongly suggested to deepen a complete scan of the water sector (See figure 5: drinking water, sanitation, health, power, mines and industries, environment , transport and wetlands). On the basis of the recommendation of the Embassy in Bamako, the mission was focused on the role of water in food security, and due to the short time of the mission, just little attention has been given to other subsectors of water. However, during meetings with many stakeholders, some demands appeared on the Malian side which should be analyzed deeper and not excluded from possible options too quickly. Aspects and subsectors of water

Fig.5

Drinking water sanitation Food security

Humid zones

WATER Health

Transport

Industries mines

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At this stage, two alternative options can be given as examples: 1. To consider a return of the Dutch support in the sector of drinking water/sanitation, especially for urban areas: despite the input of other donors, there is still clearly a strong demand of Mali. It is justified by the fast increase of the urban population. Investments in this sector offer a good visibility, a high potential for the Dutch private sector (infrastructures, furniture‟s, management). An argument proposed by the Malians is also the fact that since the withdrawal of the Netherlands from the water supply sector, the conditions have changed and the input of other donors has not been what it was expected. 2. A synergy can be developed between water and reproductive health by providing autonomous units of production of drinking water for the rural health centers. In many of these centres, water quality is still poor. The creation of water wells is not sufficient and even if water quality is good just out of the wells, there are frequent problems for water quality in the storage tanks and in the piped network. A really good and clean water is a crucial factor in a health centre, particularly for medical care of reproductive health, and small autonomous units scan provide clean water on the demand. Some of them are easy to maintain and such an option could certainly improve availability of good water in the health centres. It could be also a good opportunity for Dutch providers of equipment.

4.7

Delta Development Support Programme (DDP), some considerations

The three projects have common characteristics which could be integrated into a Delta Development Support Program focusing on specific sub-sectors which are relevant to all of the intervention areas. For each option, however, it is necessary to weigh the advantages against the risks. Taking into account the analysis of the options above and the very quick analysis here below in the table, preferences of the mission go into the support to OdN and PADIN with possibilities of support for specific subsectors such as horticulture also in the Alatona area. This program would focus on water and land management issues, involving the private sector in improvement of horticulture and livestock and vegetable, fruit, dairy and meat value chains, strengthening of farmer organizations as well as providing a platform for potential (Dutch) investors. The basic marketing elements have to be improved leading to well-balanced assortment catering towards the producers themselves as well as to local and regional markets. It seems that the government of Mali is in the process of developing a master plan for development of the Niger Delta in the Office du Niger, but not yet covering the whole Delta. A key element of the programme would be to support the government in developing a broad delta development strategy for water and land management throughout and beyond the Delta area. The IFDC-program that has been supported by BuZa can be tapped in to build a basis for inputs and productivity increases. IFDC also gained experience in marketing produce and could collaborate with the Agri Pro Focus network. Although the Agrihub (related to APF) will focus on the Sikasso region, extension of experience, knowledge and possible implementation could be considered by the members of the Agrihub. Dutch expertise should be brought in to leverage the Delta plan, not just in terms of irrigation, but also in terms of developing the assortment and sales of products which are produced in the Delta region. This would include horticulture which becoming a major source of income next to rice production, particularly for women. Options for other crops which consume less water should also be explored.

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Quick Comparison of the three options Decision matrix Criteria

Alatona

OdN

PADIN

Availability of water Climate proof Cost and profit per farmer Dutch connection Livestock opportunities Market opportunities Number of direct beneficiaries Participation by beneficiaries Quick wins Reputational risk Scalability Security situation Women participation Mitigation necessary/may be a binding constraint Can be improved Good starting position

The DDP will not replace the existing project interventions but is expected to make them more effective by using Dutch expertise and knowledge of particular subsectors. It may also facilitate access of private sector investors. Some development outcomes which the program would aim for are: Increased incomes for small and medium scale farmers Farmers motivated to adopt improved farming practices and increase productivity Development of organizations which can more effectively meet market demand Improved availability of high value products on the market Better nutrition Import substitution Important for the Embassy concerning the support to water:  Knowledge of water is a key for a sustainable management and support to an information system will clearly be an option to be considered by the Embassy of The Netherlands.  The Embassy of The Netherlands can also play an important and very useful role to define and to establish a mechanism for coordinated water management and to secure a key factor of the economic development.

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4.8

Option 5 Competence based education

The government of Mali has adopted a policy to promote agricultural education and training at all levels. The Ministry for employment and vocational training conducted a study to identify the competences needed in the public and private sectors to achieve food and nutrition security. This includes, for example seed production specialists, horticulturalists, land use planners, knowledge of processing technologies, marketing and business practice, value chain development and water specialists. There is also need for degree training focusing on private sector development of agriculture. The new university in Ségou focuses on agriculture and water management training. This is a good entry point for further development towards a program which would include technical and vocational training. There are opportunities for Dutch and regional knowledge and private sector institutions to be involved. The responsible people of the university already have good contacts with the WUR. Support to the university and other professional and vocational training institutions could be included in the Delta Development Support Program thereby creating linkages with other actors, including the private sector. Two studies for the new university have been identified for fast track funding, one focussing on employment opportunities for graduates and another to develop curricula for agricultural studies. Fast track funding could be used to finance these and other studies needed by the university and to develop a full range of post primary vocational training. A wide range of Dutch institutions and private sector enterprises could be involved. These could include WUR, Van Hall Larenstein. Next to PTC+ and CAH exists the HAS Den Bosch and Inholland. Water is part of The northern high school Leeuwarden en Saxion and a few ROCs. Further are UNESCO IHE, ITC, WUR and TU Delft the most important water institutions. Input from Nuffic, based on its participation in a Workshop on the Higher Education Reforms in Mali and the elaboration of the Ségou University is being formulated. The longer term interventions should focus on two levels ( system and organisation) in order to have maximum effect and sustainable results. Good governance structure of the educational sector / system ( framework, norms, quality, strategy, pedagogical ways of working, private sector participation, etc.) and at the same time working on de improvement of the specific curricula will be necessary. In Benin, the WUR [CDI] and Larenstein have interesting experience to share in this aspect. The World Bank is eager to support these changes and The Netherlands could very well step in together with the Malian actors. Currently The Netherlands is the lead donor in the education sector A rapid phasing out of the Netherlands support will have serious consequences for the implementation of the third education sector investment programme. There are no other donors at the moment that can fill that gap. Their budgets are also decreasing (except for USAID) and there is already a considerable financing gap for the implementation of the plan. Currently, Mali is preparing FTI request for the coming years (US$ 80 million). Financially a withdraw of the current Netherlands contributions could be integrated in an increased (but probably unrealistic) request for Fast Track Initiative funding.

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4.9

Option 6 Policy Support

The embassy is well positioned to engage in policy dialogue with the Government of Mali on specific (sub)sectors which reflect Netherlands expertise (water, horticulture, livestock, environmental assessments). Economic diplomacy to promote Dutch business interests while responding to development challenges in Mali itself will be an important part of the policy dialogue. To provide a basis for the policy dialogue, the embassy could consider creating a platform (or more than one platforms depending on the subject matter) to engage with Dutch knowledge institutions and the private sector. This could also serve as an innovation platform to test new approaches and new technologies. For this purpose, the embassy would need a special flexible funding mechanism („seed money‟) to recruit technical assistance, conduct studies, organize meetings, and initiate pilot activities. DDE is in the process of setting up a pool of experts/multidisciplinary team on which embassies can draw. At this moment the sector agricultural policy formulation is incomplete. And as EKN already has been highly recognized by the Malian government for its support, EKN should continue supporting and influencing the strategic plan in terms of systemic linked agricultural transformation and private sector development. Key messages: 1. Continue and expand promotion of business climate reforms to promote not only Dutch but also national, regional and other international business interests, Schema Directeur is being updated ; embassy could provide TA to support sector policy formulation and input to the Schema Directeur. 2. Use Netherlands expertise; value added of Dutch experts as sparring partners in areas where we have added value Think „out of the box‟ e.g. role of EL&I and DGIS/DDE/DME in policy dialogue with Malian Ministry of Agriculture 3. An Agricultural System Innovation platform, could be supported by EKN. This platform could support the different actors involved in agriculture to think and experiment with the different changes needed in order to create an agricultural system which could react to climate changes, population growth etc. This innovation platform on national level could support several platforms in certain experimental regions like the delta region. On that level a group of representatives of government, civil society, farmer cooperations and knowledge institutes could learn and exchange about certain, still to be identified value chain development or agrihub activities. The proposed DDP, but also the other alternatives formulated, would provide opportunities to engage with the Malian Authorities on crucial issues such as water management in and beyond the delta, efficient water use, crop diversification, land tenure and private sector development, including measures to improve the investment climate. The embassy could also link in to APF activities to lobby for specific measures to improve alternative value chains. The limiting factor may be the limited capacity at the embassy. An additional senior policy officer with experience in these types of policy dialogues would need to be recruited. TA can be drawn from specialised Dutch institutions and international institutions (e.g,. IFDC) which receive support from the Netherlands.

4.10 Linking with existing Dutch initiatives The embassy has good contacts with Dutch (e.g. SNV, ICCO, Cordaid Agriprofocus members) and international NGO‟s (CARE, IFDC). There is limited knowledge of private sector actors (with the exception of Ahold and some others - see list below-) who could play a role in providing services and knowledge. Agriprofocus has developed a strategic plan (agrihub) to promote agriculture in the Sikasso region and would be prepared to start activities in the Delta region if requested to do so by the embassy. Dutch knowledge institutions such as KIT and WUR have a

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long history of involvement in the agricultural sector. However, in recent years, this has not been the major focus of the Dutch Development Cooperation. The Dutch private sector is not yet very active in Mali. NABC has offered to contact its members to assess whether there is sufficient interest for an agricultural trade mission. In the context of the preparations for a new regional program, IFDC is working with a number of Netherlands based multinational companies which may lead to commodity specific activities (PPPs) in Mali. Mali is eligible for a wide range of business support initiatives such as PSI, PUM, MMF, CBI, BoP, IDH which can be useful to develop agricultural value chains. Royal Haskoning has a local branche office and is involved in the development of the agricultural programs like Office du Niger and Delta Intérieure; also implementation of the ORIO-programme (waste water treatment)is done by them in collaboration with Van den Herik. The last is recommended for a PSI demand. MMF had at the end of 2010 6 demands and the PSI had 4. Mali will also be eligible for funding through the GAFSP (Global Agriculture and Food Security Program) private sector window implemented by IFC. The Netherlands expects to become the largest donor with a four year contribution of 100 million Euros‟. Other regional initiatives include the IFDC Marketing Inputs Regionally (MIR+)0 program in West Africa and the value chain development program which is expected to start in 2012. This is a follow-up to the successful 1000+ program which will be ending this year. Still some organisations are active in Mali. Oikocredit and Terrafina (Rabo Foundation) are active in the financing of the agricultural sector in Mali. FMO is contemplating whether to invest in OdN and has also interest in the Bank of Africa Mali. PUM will in 2011 support more than 30 advisory missions and has also a “vehicle” programme. CBI has 14 Malinese participants for the Export Coaching Programs. Rural Energy Foundation, FRES Foundation (NUON), KIT Holding, NOTS Foundation, ETC Energy, Triodos Facet, Fact Foundation are active in the area of sustainable energy. Different Dutch companies have commercial relations with Malien MKB (AHOLD, Bakker, Oskam, K.I. Samen, Sunsia BV, Transmotors, Jansen Watertechniek etc.). Concerning the livestock and agricultural opportunities the following organisations showed interest: Agriprom International, Buizer advies, JOZ BV, De Haan Loonbedrijf, Rijk zwaan, East west, Heifer, BV CRV Global Sales & Development. Veteffect has an added value in education and training. WUR and Agriterra implement an agrarian research programme the CoS-SIS. Also WUR and the University of Twente will be linked to the development of the university of Ségou. Moreover the Integrated Seed Sector Development Programme offers huge opportunities for the improvement of the seed sector ( quality, accessibility, availability).

5. Next steps 5.1

Preparations for the long term / input in the MASP

The mission proposes the following number of general steps for EKN in order to have the MASP in the area of Food and Nutrition Security & Water in general lines ready by September 2011: 1. Use the input of the first draft recommendations of the mission in your first round of the MASP process meetings (June); 2. Compare those with the current HMA activities and prioritize (June) 3. Read/discuss and agree on the final report (July)

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4. Elaborate on the proposed rough building blocks (July) 5. Make an inventory in NL interested parties/investors and assess feasibility for inclusion (July) 6. Get feedback on draft Multi Annual Strategic Plan from Malian stakeholders (July / August) 7. Discuss final draft at EKN level /Align with the DGIS – EL&I policy and decide on final set up (August) 8. Elaborate and finalize MASP, including the Theory of Change (value chain resulting in Food and Nutrition Security outcomes linked to water) and Result Chain (Aug / September) 9. Continue with deeper assessments and stakeholder consultations:  with not only the Malian actors but also the Dutch connection ( NGOs, Knowledge & research institutes, Private sector) as indicated in this report but also already planned for by EKN.  Moreover consultations should be done with the neighboring countries and the regional networks, Mali is part of, in order to align with regional approaches concerning the markets and the water situation.

5.2

Fast & Longer Track projects

1. Besides these general steps, the mission recommends also to start, when possible and as fast as possible, with the following steps. Taken into account that there is ample opportunity within Mali to develop production and marketing of agricultural products, it should be a concerted effort, maximizing the return for every FCFA invested and directly linked to the water issues. 2. Desk study to assess marketing situation around existing and alternative livestock, agro- and horticulture including history of initiatives; Embassy to commission scoping study to assess feasibility of commercially viable innovation on small and medium scale commercial horticulture and livestock. 3. Decide on assortment using an extended product decision matrix and preferably related to the Delta Development Plan. 4. Start with stakeholder consultation and debates on the assortment chosen. Review and contact Dutch companies who could support the development of the production (input supplies, knowledge and skills, marketing, agro-logistics). 5. Start with “Joint Ventures” Linking of Dutch Enterprises and Institutions with local (private) actors in areas of storage, soil labs, seed production, fortification of feed etc. 6. Develop integrated plan within the Regional Delta Plan, taking into account the steps for integrated supply chain development and deepening of studies around improvement of water use efficiency, water and land management (including f.e. best bets for land titles), promoting horticulture and livestock value chains, provision of inputs for rice production and horticulture). 7. Finalising Fast track initiatives and studies, clarification of road map: Vocational training linked to Ségou, Setting up of an accelerator fund, support APF, develop some action plans in the DDP and invest in livestock opportunities. 8. Overview centrally funded instruments and programs with implications for Mali embassy (BuZa, EL&I). Look into the option of an accelerator fund next to the existing instruments and roll out simple procedures stimulating initiatives. Look into the option of an Innovation committee, where different representatives take part ( Draft a ToR for support, when needed) 9. Develop an overview of private sector funding opportunities together with the ministries (EVD instruments, other Dutch investment funds, matchmaking facilities) .

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Advice during the process can be solicited from the DDE responsible, the Agricultural Counselor and other experts. Also the members and their networks of the mission are available for support. But EKN might decide otherwise after the first step.

5.3

Embassy Capacity and Resource Needs

Appropriate financing mechanisms An accelerator fund next to the MMS, IPS EVD and other finance instruments could be a possibility to consider; this kind of innovation fund in order to support fast experiments with different PPP could be coordinated by an innovation platform on national and more local / district level. To facilitate and coordinate such innovation networks and related funds, expertise can be found within the Dutch NGO and knowledge sector like SNV and the WUR. But this is only necessary when the need is felt at Embassy level where there is already good knowledge and expertise around certain elements of this theme. Still, additional expertise may have to be hired to complete overviews of financial instruments for companies, and when the embassy decides to engage in a PPP. Potential partnerships with agri-business platforms To ensure that the ambitions set with respect to food & nutrition security are met, connection with Dutch, Malian and International expertise ( knowledge, Research, Training & Advise) networks are important and can be further developed. Especially the part for innovation, and linked to these, the Monitoring and Learning which should be carefully taken into account. Types of services The services EKN should be able to provide varies from brokering & linking to technical support, facilitation of innovation networks and processes, guidance for system change, strengthening of capacities of organisations, Policy advice, regional overview and analytical support. Some of this the Embassy has already “inhouse” and some expertise should be contracted from a pool of qualified and known experts. Overall Personnel issues and required expertise (pool of experts, national, regional, international) The Embassy demonstrates flexibility and a capacity to innovate with respect to adjusting existing programmes to the changing context The embassy has the capacity to make the general context analysis for the food and nutrition security component in the MASP. Considerable analysis has been done by other donors on the overall food security situation in Mali. Coordination mechanisms amongst development partners and with the government are sufficiently developed for assembling relatively quickly an overview of the major investments already taking place to avoid duplication. By partially refocusing existing work packages among staff, the Embassy should be able to implement the food security and nutrition component of its programme. In addition, by working closely with implementing partners, such as Solidaridad, IFDC, Technoserve and others, the new programmes could be implemented efficiently. The NABC and the Malian-Netherlands Chamber of Commerce and Industry could play its part in mobilizing the Dutch private sector in Mali. Still, taken this all into consideration, the Embassy could carefully analyse whether she should still consider to contract certain expertise in house. Some ideas are:  An additional senior policy officer with experience in policy dialogue and sectoral planning (chapter 4.9) would need to be recruited. There will also be need for a full time water expert, with experience in river basin management and irrigation.

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 

TA can be drawn from specialized Dutch institutions and international institutions (e.g,. BoP Innovation Centre, Partnership Resource Centre, CBI, IFDC, WUR, KIT) which receive support from the Netherlands. Another option could be to select “assistance” from a Pool of experts on national, regional and international level who can provide regular support and input on the subjects identified.

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Annex 1: ToR and Programme of the mission FOOD SECURITY & WATER MANAGEMENT MISSION

After the Nairobi meeting in February 2011 Mali has been chosen as one of the countries to intensify activities for food security. To further develop the proposals that EKN Bamako has presented at the Nairobi meeting, a support mission on food security had been proposed to visit Mali. At the same time, Mali has been long-listed by DME as one of the countries in which to investigate opportunities to intensify Dutch activities on water management. Subsequently, DME offered to send a mission to perform a scan on Malian water needs and opportunities for Dutch entities to respond to those needs. In order to synergize both initiatives and enhance results on these interrelated issues, EKN Bamako proposed the integration of the two missions. It makes sense to include water experts in a food security mission to Mali because of the close linkage between the two fields of expertise. In addition, the initiative of Agri-ProFocus to set up an agri-hub in Mali will also be dovetailed with this mission, to the benefit of all involved. EKN Bamako already financially supports the Malian government in its endeavour to create an enabling environment for rural economic development. Continuation of this support will be assessed in terms of added value of Dutch support, within the framework of discussions on the new MASP 2012-1015. As pilot programmes to enhance food security, EKN Bamako proposed the following two concrete project options in Nairobi: (1) to develop some 5000 ha of irrigated farm land in the region Office du Niger (prepared by MCA) for agricultural production (staple food/cash crops). (2) to extend the project area of the ongoing programme for the agricultural development of the Inner Delta (PADIN), with a specific focus on intensifying production, processing and commercialisation of dairy and meat products. In addition to those concrete options, the mission will also consider the following possibility (3) to intensify cooperation with SNV, IFDC, ICCO and/or Terrafina on alternative agricultural products and in alternative geographic areas Two more options (for process interventions) that the mission will assess are: (4) opportunities to enhance the development of strategic views on the agricultural sector as a whole (e.g. National Agricultural Policy and investment plan) and on specific agricultural zones (Office du Niger, Inner Delta) need to assessed by the mission. This would particularly entail making available experts on processes of policy development as sparring partners for the Malian government. (4) ways to increase knowledge-to-business cooperation on the issue of food security, e.g. through strengthening vocational education and higher education. As regards Integrated Water Resources Management (IWRM), specific areas of intervention to be analysed by the mission are: (5) Efficient and sustainable water use, especially in agriculture, in particular in the zone Office du Niger and the Inner Delta (6) Safe deltas and better river basin management, also in view of climate change, building on past experience and earlier projects funded by the Netherlands GOAL

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The purpose of the mission will be:  to further shape EKN‟s thinking on its rural economic development programme, in which food security and water management will play a large role (MASP preparations).  to assist the EKN in assessing the five above-mentioned options in the domain of food security and the two intervention areas on water management as concrete ways to integrate the Dutch policy priorities into the current programme of the EKN, in line with the new MASP.  to explore opportunities to work together with Dutch, regional and national expertise and Dutch, regional and national business interests on activities/partnerships that stimulate local PSD and economic self-reliance and that contribute to enhanced water management and food security.  to explore opportunities to contribute to enhanced water management and food security through PSD and Knowledge to Businesses interventions via PPPs.  to assist EKN in shaping its thinking on (Dutch) knowledge transfer in the field of food security and water management. MEMBERS OF THE MISSION

From the Ministry of Foreign Affairs:  Monique Calon, DDE  Antje van Driel, DME From EL&I:  Jeroen Rijniers (EL&I) External:  Simone van Vugt (CDI- WUR – Mission leader)  Roland Waardenburg (private sector expert)  Jille Niehof (expert on Dutch dairy & meat sectors)  Bert Satijn (expert on Integrated Water Resources Management; arrived at the end of the mission and continued with Jean Luc Frerotte for several extra days)  Jean Luc Frerotte (expert on Integrated Water Resources Management) The latter two experts would execute the quick scan of water management needs (Mali) and opportunities (NL), as proposed by DME, in relation to the specific areas of intervention mentioned above. The embassy wishes to stress that in order for this important mission to yield maximum results, it is absolutely necessary for the mission members to master the French language, be knowledgeable on the specifics of (agricultural) development in a Sahel-country, be able to write concise and to the point mission reports and to quickly develop a clear vision on opportunities based on profound knowledge of the Dutch offer. PREPARATORY WORK TO BE DONE:

     

Coordinate mission with DAF to enhance outcomes of the mission (BZ) Organize preparatory meetings with Malian government and with donors (EKN: Caro Pleysier, Nana Danté, Joris van Bommel, Jacob Waslander) Prepare 2-pagers on each of the four proposals on food security (EKN: Caro Pleysier, Nana Danté, Joris van Bommel, Jacob Waslander), including financial issues and specific issues to be discussed with the food security mission Prepare 2-pager of present EKN rural economic development programme (EKN: Caro Pleysier) Prepare 2-pager on current situation in Mali as regards water management (EKN: Nana Danté) Prepare 2-pagers on experiences in other countries with business-to-business cooperation and knowledge-to-knowledge cooperation with regard to the development of

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

a dairy/meat sector and the support to agricultural policy development processes (EL&I, WUR/CDI) Prepare 2-pager on food security knowledge (including courses) available for embassies within EL&I, BZ and with other relevant partners: “What does The Hague has to offer EKN in the field of food security” (EL&I, BZ)

MISSION OUTPUTS (adapted during the mission)

   

Power Point presentation in English (to be discussed on the last day of the mission), which includes findings and recommendations on inclusion in next MASP of actions to intensify EKN activities on food security and water management. Ten-page mission report (within three weeks of the end of the mission), including analysis, meeting reports etc. as well as clear description of pilot activities and follow-up actions (incl. result chains and timeline) Mission‟s recommendations on knowledge transfer within (new) EKN programme. Agreement on broad parameters for further programme development in view of the rural economic development part of the new MASP; definition of knowledge needed by EKN Bamako during the MASP formulation process.

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Programme of the mission The mission would be fielded from 6-10 June 2011, with an additional two days (13-14 June 2011) for the water experts. DATE

TIME

Sunday, 5/6/2011 Monday, 6/6/2011

Tuesday, 7/6/2011

Wednesday, 8/6/2011

Thursday, 9/6/2011

ACTIVITY

PARTICIPANTS

Arrival in Bamako

Monique Calon, Roland Waardenburg, Simone van Vugt, Jeroen Rijniers, Antje van Driel, Jean Luc Frérotte and livestock expert

08.00 – 09.30

Briefing at EKN Bamako

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier, Joris van Bommel/Diourou Cissé

10.00 - 11.30

Meeting with Group Thématique Economie Agriculture Rural (donor group agricultural sector)

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier GT EAR

12.00 – 14.00

Lunch meeting with ICCO & Agri-ProFocus on AgriHub (restaurant Le Relais)

Mission, Caro Pleysier, Christel Schiphorst, Egbert Hoving, ICCO

14.30

Departure for Ségou (from EKN)

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier

17.30 - 19.30

Briefing field visit by MCA with donors active in Office du Niger (Motel Savanne)

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier PTF-OdN

20.00

Dinner at Hotel Djoliba

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier PTF-OdN

06.00 – 17.30

Full day: field visit MCA project area in Alatona (pilot activity one) detailed programme to be received from MCA

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier PTF-OdN

19.30

Dinner meeting with Président Directeur Général + 4 staff Ofice du Niger

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier

06.00 - 8.00

Visit Ke Macina (maraîchage) at Office du Niger

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier Office du Niger, CARE International Mali, local government

08.00 – 17.30

Visit project area PADIN (pilot activity two) Site de Kéra ou les travaux d’aménagement du PPIV viennent de démarrer, et le site de Hampathé à Diafarabé ou les travaux de revêtement du canal du PPIV sont en cours. Return to Bamako (brief visit of milk collection/processing facility en route)

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier CARE International Mali, local government

06.00 – 09.00

Higher Education/Vocational Training

Private sector development

Water& environment

Simone van Vugt, Monique Calon, Joris van Bommel/ Diourou Cissé

Jeroen Rijniers, Roland Waardenburg, livestock expert, Caro Pleysier

Antje van Driel, Jean Luc Frérotte, Nana Danté

9.30 – 11.00

Meeting on Higher Education/University of Ségou with :

Meeting on the private sector development with:  Conseil National du Patronat du Mali

Meeting on river basin management safe deltas and better river basin management, also in view of climate change with:

  

the World Bank, Rector of the University of Ségou Secretary General/Director Higher Education of the Ministry of Higher Education and Scientific Research

    

Agence pour la Promotion des Investissements Chambre de Commerce & des Industries Centre du Secteur Privé representatives of livestock related companies representatives of agro-businesses

Location: tbd (EKN, WB, Ministry of Higher Education) 11.30 – 13.00

13.30 – 14.30

Meeting on Vocational Training with:  Ministry of Employment and Vocational Training  USAID  AfD  ACDI  PUM

     

DNH NACPN Point focal ABN Partenariat National de l‟eau Comité des utilisateurs des ressources du basin CRU Projet suedo-danois sur le Plan National PAGIRE

Location: tbd Location: tbd (CNPM, API, EKN) Meeting    

on alternative value chains with: SNV IFDC ICCO Terrafina

Meeting on environmental problems, climate change, NRM/Biodiversity with :  Cabinet Ministry of Environment  DNEF  ABFN  Agence environnement et développement durable

Lunch (location: tbd (EKN, restaurant)) Mission, Caro Pleysier, Nana Danté

15.00 – 17.00

Visit to Lycee Technique et Professionnelle

Visit to PSI project, Doucouré (chickens), dairy factory, fodder producer (tbd)

Visit to National laboratory for water quality in Bamako (rive droite)

Friday, 10/6/2011

…..

Arrival in Bamako

Bert Satijn

08.30 – 09.30

Meeting       

Mission, Nana Danté

10.00 – 12.00

Wrap-up meeting at EKN Bamako on basis of two-page mission report

Mission, Jacob Waslander, To Tjoelker, Nana Danté, Caro Pleysier, Joris van Bommel/ Diourou Cissé

12.30 – 14.00

Lunch meeting with ICCO & Agri ProFocus on AgriHub (restaurant tbd)

Mission, Christel Schiphorst, Egbert Hoving, ICCO

22.40

Departure to Paris/Amsterdam

Monique Calon, Roland Waardenburg, Simone van Vugt, Jeroen Rijniers, Antje van Driel and livestock expert

Food Sovereignty & Water Management with: Secretary General Ministry of Agriculture Ministre Délégué Office du Niger (MDDIZON) CPS-SDR representative Ministry of Livestock & Fisheries representative Ministry of Water and Sanitation representative Comité Sécurité Alimentaire DNH

13-14 June 2011, continuation programme water experts: Bert Satijn & Jean Luc Frérotte Monday, 13/6/2011

09.00 – 11.00

Meeting     

with main donors on Natural Resources Management : KFW DANIDA ASDI AFD BAD

Water experts (Nana Danté)

Location: tbd (EKN, BAD,..) 14.00 – 15.30

Tuesday, 14/6/2011

08.00 – 14.00

Meeting   

with main NGOs on Natural Resources Management : Wetlands International CARE international AMPRODE SAHEL

Location: tbd (EKN, CARE,..) Field visit to Kangaba and Banankoro with the Comité local de l‟eau (CLE); visit to river bank protection works

Water experts (Nana Danté)

Water experts, DNH, GIRENS, Nana Danté

Annex 2: Public private partnerships in Mali Brief analysis and findings 2. PPS for companies/ SMEs

Concept Development (often innovation)

Design (of

Financing

Business case)

implementation

3. PPS for financial instrument/ funds 4. PPPs for procurement

1. PPPs as alliances: public,

(infrastructure)

private, NGO, knowledge institutes The figure above illustrates the possible forms a Public Private Partnership (PPP) can take. It shows that there are many forms. In view of this mission the whole range of PPP possibilities is examined. In the Annex of this document a short introduction to the various forms of PPPs is provided. Based on this mission: The figure makes a clear distinction between: A. PPPs that are aimed at creating opportunities by bringing further project ideas resulting in concrete business plans for e.g.: o

Companies (small or medium enterprises);

o

Projects (e.g. infrastructure) or programs;

o

Financial instruments/ facilities (e.g. investment funds).

In this case a PPP is a form of cooperation between public and private stakeholders with the objective to further explore and refine ideas. This kind of PPPs are particularly useful if there are too little incentives for the individual stakeholders to further develop the idea but there is common ground and interest to jointly explore it. For example this can be a (private) business concept that takes too much investments and/or risks to further explore from the private perspective or is interesting but not the companies core business. Or it can be the design of a financial instrument that is only interesting when public investors intend to invest

in it (public investments in financial instruments reduce risks for private sector participants. Because of this such instruments can invest in-, loan-, or guarantee to projects that are not feasible from a purely private perspective). B.

PPPs that are aimed at financing concrete business plans that are clear in terms of objectives, investments needed, returns in terms of money and socio-economic benefits. A distinction can be made between: o

Financing of companies/ SMEs that are facing problems with access to finance.

o

Financing of projects (e.g. infrastructure) or programs;

o

Financing of financial instruments.

Questions related to A 

Is it to be expected that there are companies with ideas towards possible opportunities in mali? How many ideas? (market size)



What the embassy/ government can do to on one hand identify such opportunities and on the other support the initiators by providing support.

Questions related to B – Financing companies of financial instruments Questions are: 

In which sectors do companies deal with a clear financing need?



Under what conditions will companies be able to finance?



What can the embassy do create these conditions?



What instruments already exist? (Either Dutch or international)?



Is there a clear need for additional financing or new instruments?

Questions related to B – PPPs for infrastructure Questions are: 

What are the objectives in various sectors to attract private finance for infrastructure?



What support is already provided to the government of Mali to help them attract private finance for their infrastructure (Either Dutch or international)?



What is the interest of Dutch companies towards infrastructure?



How does this interest relate to the finance of infrastructure?



What can the embassy do assist Dutch companies?