Investment in Agricultural Water for Poverty Reduction and Economic Growth in Sub-Saharan Africa

iii FOREWORD This report summarizes the results of a Collaborative Programme of a group of international development agencies – AfDB, FAO, IFAD, IWMI and the World Bank – to review the experience of agricultural water investment in sub-Saharan Africa to date and to identify the conditions for successful investment in sustainable, cost-effective agricultural water development. IWMI and the World Bank identified the low level of investment in agricultural water in sub-Saharan Africa as a major development issue. The agencies, therefore, decided on a joint Collaborative Programme to review the current state of agricultural water development and experience gained to date in Sub-Saharan Africa in order to (a) better understand its performance and potential, (b) identify changes in the development context and (c) develop recommendations to improve investment performance. The objective was to improve the quality of assistance to governments and induce greater investment flows, as well as influencing the assistance provided by bilateral donors. As a first step, in June 2001 a stakeholders' workshop was convened in Harare to define the problems and to chart the scope and course of the Collaborative Programme. At the workshop, stakeholders identified factors contributing to low levels of investment. The principal concerns were perception of low economic returns compared to alternative investments; of a lack of financial viability; of poor sustainability; and of the relative wastefulness of agricultural water use. The programme was thus designed to assess the validity of these perceptions and to propose ways to overcome the underlying constraints. At the Harare workshop, it was also decided that there were a number of strategic topics that required study before the overall question of how to catalyze increased investment in agricultural water development for crop production in sub-Saharan Africa could be addressed. Guided by a steering committee and a working group, detailed component studies were prepared on the following topics 1 :  Demand for products of irrigated agriculture;  Assessment of potential of agricultural water management for food supply;  Agricultural water development for poverty reduction;  Costs of agricultural water development;  Private sector participation in agricultural water development;  Health and environmental aspects;  Irrigation development planning and implementation; and  Integrated water-livestock-crop production. In 2002, NEPAD developed the Comprehensive Africa Agricultural Development Programme (CAADP), which gives a central place to the development of agricultural water. With FAO support, NEPAD member states are currently preparing National Medium Term Investment Plans …