Agro-Industrial Development: Context

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DEVELOPING COUNTRIES

Agro-industrial development

Context
In large parts of the developing world, the potential of agroenterprises remains unexploited as a result of limited access to
markets, information, infrastructure, technology and finance. Nevertheless, the agricultural sector is still the backbone of economic activity,
employment and livelihoods in developing countries. Strengthening
the sector and adding value to agricultural commodities are instrumental in enhancing food security, stimulating economic growth and
reducing poverty in a sustainable manner.

Strategy
The High-level Conference on the Development of Agribusiness and
Agro-industries in Africa held in Abuja in March 2010 launched the
African Agribusiness and Agro-industries Development Initiative
(3ADI). The Conference mandates UNIDO, in partnership with the
African Development Bank (AfDB), Food and Agriculture
Organization of the United Nations (FAO), International Fund for
Agricultural Development (IFAD), to initiate joint action in the areas of
agribusiness value chains, food security, policies, financing and
related trade. The initiative calls for the accelerated development of
agribusiness and agro-industries to ensure value addition to agricultural products of developing countries. Selected pilot countries
are: Afghanistan, Comoros, Democratic Republic of the Congo,
Ghana, Haiti, Liberia, Madagascar, Nigeria, Rwanda, Sierra Leone,
Sudan and the United Republic of Tanzania.
UNIDOs technical assistance programme focuses on selected
countries where one or two key agricultural products would be
selected by the local authorities in line with national strategies.
UNIDOs interventions include productivity and competitiveness
improvement, quality improvement, and facilitating access to markets. UNIDO also supports an investment programme designed to
significantly increase the proportion of agricultural produce in the
selected countries and transform it into differentiated high-value
products.

Expected results

A flow of private sector funds into the agri-business sector in


3ADI countries to be facilitated

United Nations Industrial Development Organization (UNIDO), July 2011

Large-scale agribusiness development programmes to be


developed as public-private partnerships, which will trigger
economic growth, improve food security and reduce poverty

On an inter-agency level, the project will create additional


synergies and will further strengthen the collaboration between
UNIDO, other UN organizations and public/private partners

Impact/Outlook
By 2020, the technical assistance, reforms and attraction of private
sector investment through the 3ADI programme are expected to
result in productive and profitable agricultural value chains wherein:






SMEs effectively linked to domestic/regional markets


Income of producers increased through participation in value
addition processes
Higher value and differentiated agricultural products supplied to
local, regional and global markets
Higher proportion of consumer price retained in countries where
primary production takes place
Natural resources utilized in an overall sustainable manner
Sector provides an effective basis for industrialization and generation of increased employment
A second round of countries is expected to join the 3ADI framework
during its second year of implementation. A flow of private sector
funds into the agri-business sector in 3ADI countries to be facilitated

For more information on this project: [email protected]


For more information about UNIDO: [email protected]

At a glance:
Goal:
MDG:

Agribusiness and agro-industrial development


1. Eradicate Extreme Poverty and Hunger, 7. Ensure Environmental
Sustainability, 8. Develop a Global Partnership for Development
Thematic area:
Poverty Reduction through Productive Activities
Donors:
Government of Finland, UNIDO
Partners:
African Development Bank (AfDB), Food and Agriculture
Organization of the United Nations (FAO),
International Fund for Agricultural Development (IFAD)
Budget:
EUR 739,000
Status:
ongoing
Duration: August 2010 August 2020

www.unido.org

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