BHOS-beleidsnota
Reactie
| Naam | Alliance for a Green Revolution in Africa AGRA (Head of Inclusive Finance H Siewertsen) |
|---|---|
| Plaats | Nairobi |
| Datum | 14 april 2022 |
Vraag1
(see english below)Nexus (samenhang) Ontwikkelingssamenwerking & Buitenlandse Handel
Het Nederlandse bedrijfsleven kan door middel van handel, investeringen en marktkracht een belangrijke rol spelen bij een aantal van de grote wereldwijde uitdagingen van deze tijd. Om de Nederlandse inzet richting het bedrijfsleven een focus mee te geven wordt gekozen voor een focus op de “twin-transities”; de digitale transitie (via onder meer artificiële intelligentie) en de verduurzamingtransitie. Deze twin-transities op digitale innovatie en verduurzaming zullen de komende jaren een grote rol spelen om de Parijs en Glasgow-doelen voor klimaat te halen. Die doelen moeten we in Nederland halen, maar ook wereldwijd. Hoewel er een grote behoefte is aan Nederlandse expertise en investeringen, zien we dat meer nodig kan zijn om het Nederlandse bedrijven te betrekken bij deze transities in (lage en) midden-inkomenslanden.
1. Hoe kan het Nederlandse bedrijfsleven meer betrokken worden bij de twin-transitie in (lage en) midden-inkomenslanden?
(EN)
Nexus between development cooperation and foreign trade
Through their trade, investment and market position, Dutch businesses can play a key role in tackling some of the major challenges facing the world today. The focus of Dutch policy vis-a-vis the private sector will be on the 'twin transitions' of digitalisation (including artificial intelligence) and sustainability – both of which will be key to achieving the Paris and Glasgow climate goals in the years ahead. We must achieve these goals not only in the Netherlands, but across the world as a whole. While Dutch expertise and investment funding are in great demand, we also see that more may be needed when it comes to getting Dutch companies involved in these transitions in low- and middle-income countries.
1. How can we increase the involvement of Dutch companies in the twin transitions in low- and middle-income countries?
The lessons learned from the G4AW investments, point to the fact that strong local (developing country based) partners are needed to ensure the development of viable business cases and consequent sustainability of digital solutions that enable climate adaptation. More user oriented, demand driven development of solutions that address real needs of farmers is key to ensure uptake and usage.
AGRA’s lessons learned from our 25 digital partnerships include the importance of investments in on the ground presence to make sure solutions are responding to a real need and demand and to drive adoption by farmers (Tech vs Touch), the need for digital to reduce cost and risk of existing services delivery (digital on its own does not solve for farmers’ challenges) and the importance of bundling services to get to an affordable price point. The efficacy of digital solutions is anchored on up-to-date data and as such investments are needed to ensure the data provided is continuously informed by the needs
Our recommendation is that:
• More visibility is given to the “Dutch Tech offer”
• Support is provided to local, African digital-climate smart solution providers and users who are enabled/incentivized to ‘buy’ (‘pull’) that expertise from the Dutch companies.
• Support is provided for the ‘Touch’ side of digital (people on the ground to enhance relevance, usage, and user experience of digital solutions for impact)
This demand led approach (demand as understood demand from the final beneficiaries ((farmers) and local solution providers) is different from the current supply-led (being the supply from the Dutch technology solution providers) subsidizing of the Dutch ‘Tech’ companies and knowledge institutions for ‘pushing’ their products into markets they do not always know very well.
Vraag2
Nederland kent een lange traditie van publieke private samenwerking. Nu de mondiale uitdagingen steeds groter worden, is het van belang deze publiek-private samenwerkingen te verdiepen en te versnellen. De duurzame ontwikkelingsdoelen zijn in 2015 vastgesteld als actieplan voor overheden, bedrijven, kennisinstellingen en burgers om duurzame ontwikkeling te verwezenlijken wereldwijd.2. Hoe kunnen overheid, bedrijfsleven en kennisinstellingen beter samenwerken om de duurzame ontwikkelingsdoelen te halen?
(EN)
The Netherlands has a long tradition of public-private partnership. As the global challenges grow ever bigger, it is important to deepen and accelerate these partnerships. The Sustainable Development Goals were presented in 2015 as a plan of action for governments, companies, knowledge institutions and private individuals to achieve sustainable development worldwide.
2. How can government, the private sector and knowledge institutions work together better to achieve the Sustainable Development Goals?
• For the agricultural and food sector, it starts by acknowledging the role each of the actors can play to increase productivity and resilience of smallholder farmers. In line with Gerrit Holtland’s comments, we see the increased productivity and resilience of small-scale producers in Africa as key in meeting many of the SDGs. Smallholder farmers in Africa need systems that work for them, not projects that temporarily solve for their challenges.
• Predictability and implementation of policies, functioning extension systems, creation of an enabling environment for private sector and coordination of the support to the agricultural sector are key roles for Government. The National Agricultural Sector Strategies and National Agricultural Investment Plans coupled with the CAADP (Malabo) commitments are frameworks that can guide each actor’s intervention per country in Africa.
• Knowledge institutions should be supported to develop the innovations that can sustainably increase the productivity and resilience of farmers. More engagement with local private sector players can lead to more responsive and realistic expectations on adoption of innovations. The breeding of climate smart, drought tolerant varieties of crops cannot create impact if the delivery system to get these seeds to farmers does not function.
• Agricultural private sector (seed companies, fertilizer blenders, processors,) should be incentivized to adopt the innovations created by the knowledge institutions and be incentivized to service smallholder farmers (who are not the most profitable and easy-to-serve client) on a sustainable basis with those innovations.
• Most coordination efforts take place at country level within agricultural sector donor groups and system specific networks and platforms that bring private and public sector together. A presence of Dutch private sector representatives and knowledge institutions in those platforms is important to make sure interventions are aligned, coordinated and duplication reduced.
Vraag3
Nederland heeft sinds 2016 een actieplan beleidscoherentie voor ontwikkeling. Beleidscoherentie voor ontwikkeling heeft als doel om in niet-hulp (OS) beleid schade voor ontwikkelingslanden te verminderen en synergiën en samenwerking te versterken. Het Nederlandse actieplan is in 2018 herzien en geeft een overzicht van vijf Nederlandse beleidsthema’s die een invloed hebben op de ontwikkelingskansen in ontwikkelingslanden. Deze thema’s zijn: (1) het tegengaan van belastingontwijking/ontduiking, (2) ontwikkelingsvriendelijke handelsakkoorden, (3) een ontwikkelingsvriendelijk investeringsregime, (4) verduurzaming van productie en handel en (5) het tegengaan van klimaatverandering.3. Hoe kan de bovengenoemde Nederlandse inzet op beleidscoherentie voor ontwikkeling verder versterkt of verbeterd worden?
(EN)
The Netherlands has had an action plan on policy coherence for development since 2016. The aim of policy coherence is to reduce the negative effects on developing countries caused by policies in areas other than development, and to strengthen synergies and cooperation. The action plan, which was revised in 2018, identifies five Dutch policy themes that can enhance developing countries’ opportunities for development: (1) combating tax avoidance/evasion, (2) development-friendly trade agreements, (3) a development-friendly investment regime, (4) more sustainable production and trade, and (5) combating climate change.
3. How can the Netherlands’ efforts to achieve policy coherence for development be further strengthened or enhanced?
To contribute to policy coherence in international trade, the Netherlands can support efforts by regional trading blocs (EAC, COMESA, ECOWAS,..) and Governments that reduce non-tariff barriers, implement standards and grades, develop price discovery mechanisms that stimulate regional trade by harmonizing regulations on seed and commodities trade and create transparent markets.
As recommended by the IOB ‘Gedeelde belangen, Wederzijds profijt’ study, more attention should be given to the political economy aspects. Removing trade barriers and changing regulations might benefit organizations and people in different ways, and as an investor in improving regional and international trade, the Dutch Government should understand who is benefitting from its interventions and investments.
The following coordinating mechanisms can help to ensure coherence in support for Agriculture in Africa:
a) The Comprehensive Africa Agriculture Development Programme (CAADP) outlines the framework for economic growth through agriculture-led development.
b) African Agricultural Transformation Scorecard tracks progress in achieving the Malabo commitments.
There is need to enhance capacities of governments and other actors to exploit synergies across different policy areas for instance on important cross-border dimensions, such as trade, investment, agriculture, health, education, environment to create environments conducive to development
Vraag4
Buitenlandse HandelInternationale handel en investeringen zijn van groot belang voor de Nederlandse welvaart en werkgelegenheid. De Nederlandse welvaart wordt voor een derde verdiend door internationale handel en een derde van onze banen zijn verbonden aan internationale handel. Onze internationale concurrentiepositie is onderhevig aan de “twin-transities” (digitalisering/innovatie en klimaat/duurzaamheid) en verschuivende geopolitieke verhoudingen. Het is voor Nederland van groot belang om het verdienvermogen te versterken nu en in de toekomst.
Strategisch en duurzaam handelsbeleid
In anticipatie op de geopolitieke en transitie-ontwikkelingen sturen ook buitenlandse staten sterker op hun nationale en internationale beleid. Zo passen staten in toenemende mate assertievere economische diplomatie toe en zetten zij economische machtsinstrumenten in om hun internationale doelen na te jagen. Nederland kan hierin niet achter blijven. De verwevenheid van ons land met de rest van de wereld is groter en kwetsbaarder dan ooit. Als onderdeel van een samenhangend buitenland beleid, zal Nederland zich toeleggen op een strategisch en duurzaam handelsbeleid.
4. Hoe kan de overheid het duurzame verdienvermogen van Nederlandse bedrijven in het buitenland versterken?
Foreign trade
International trade and investment are crucial to prosperity and jobs in the Netherlands. International trade accounts for a third of our national income and is linked to a third of our jobs. But our international competitiveness faces risks posed by the twin transitions (digitalisation/innovation and climate/sustainability) and the shifting geopolitical balance of power. It is therefore vital for the Netherlands to strengthen its earning capacity, both now and in the future.
Strategic and sustainable trade policy
Other states are also anticipating the above-mentioned transitions and geopolitical shifts, and are adjusting their national and international policies accordingly, for instance by pursuing their international objectives through more aggressive economic diplomacy and the use of economic instruments of power. The Netherlands cannot afford to fall behind. Our country’s interconnections with the rest of the world are both greater and more fragile than ever. The Netherlands will therefore focus on strategic and sustainable trade policy as part of its coherent foreign policy.
4. How can the government strengthen Dutch companies’ sustainable earning capacity abroad?
By supporting their discovery of opportunities that exist in countries and sectors, getting to know the private sector landscape that can provide partnerships, understanding the political economy in the various sectors that can inform how investments impact the various stakeholders and finally de-risking instruments can be offered to incentivize companies to invest abroad.
Vraag5
Thema’s en sectoren van de toekomstNu de wereld in transitie is om een goede toekomst voor ons en de generaties na ons te bewerkstelligen verandert de focus van bedrijven, overheid en kennisinstellingen.
5. Op welke thema’s of sectoren ziet u kansen om internationaal te ondernemen?
(EN)
Themes and sectors of the future
The focus of companies, governments and knowledge institutions is changing in light of the global transition to ensure a bright future for current and future generations.
5. In which themes or sectors do you see opportunities for international enterprise?
The key sector to invest in to meet many of the SDGs and to build on the expertise of the Dutch international enterprises is to invest in Sustainable Food Systems, which includes:
- Sustainable intensification of (smallholder) agricultural production using innovative technologies and practices (seeds, soil health, agronomy,..) and
- Increased value addition to agricultural produce in Africa for improved nutrition. (Agro-processing with a nutrition lens)
- Access to affordable and appropriate financing for the agricultural sector
Vraag6
Samenwerking publiek-privaat en rol Midden en Klein Bedrijf (MKB)Een succesvolle aanpak op het gebied van internationale handel vraagt samenwerking tussen burgers, bedrijven, maatschappelijke organisaties en de overheid. Het is nuttig om aan te sluiten op de behoeftes van de markt. Waar zijn bedrijven (specifiek het MKB) mee geholpen om de exportkracht en innovatiekracht te vergroten?
6. Hoe kan de overheid het bedrijfsleven (specifiek het MKB) dat internationaal onderneemt (of dat zou willen) beter ondersteunen om zaken te doen in het buitenland?
a. Welke ondersteuning hebben bedrijven nodig om internationaal succesvol te zijn op terreinen van digitale innovatie (innovatiesamenwerking) en verduurzaming?
b. Voor handel met welke landen (of regio’s of markten) zou ondersteuning moeten zijn?
c. Wat zou de overheid op het gebied van handelsbevordering niet meer moeten doen?
(EN)
Public-private cooperation and role of SMEs
A successful approach to international trade requires cooperation between the public, companies, civil society and government. It is also useful to align with market demand. What would help companies, and SMEs in particular, to increase their export performance and innovative capacity?
6. How can the government better support companies (and SMEs specifically), that are doing or wish to do business abroad?
a. What type of support do companies need in order to achieve international success in the areas of digital innovation (innovation partnerships) and sustainability?
b. For what countries, regions or markets should the government provide private sector support?
c. What type of trade promotion activities should the government stop doing?
a.
• Matchmaking with digital innovators based in the developing countries,
• Incentives (exchange visits, learning events, coaching/twinning) to share know-how and invest in digital innovators in Africa
• Identify smaller, more agile implementing partners for financial instruments in digital innovation and sustainability that can act faster, do smaller deals and be closer to the market. AfDB (AFAWA), FMO (DFCD), FAO (food and nutrition security resilience fund) are too big and bureaucratic to invest in smaller projects that can ride on new developments in an agile manner.
• Localize the investment instruments like FMO innovation fund, Farmfit fund, Agri3 fund and G4AW to make sure they can identify investment opportunities faster and be closer to the markets which are rapidly evolving.
• BHOS should be open (and may be more risk taking) to new Africa based partnerships for the implementation of some of the financial instruments that support digital and climate change adaptation and sustainability innovations.
b.
• BHOS should focus on building local (African based) agricultural SMEs so that they can become credible, reliable, growing business partners of Dutch companies that want to enter African markets. Agricultural SMEs are the key drivers for employment creation, food security and sustainable food systems on the continent.
• Without a solid, competitive private sector in Africa, Dutch companies will also find it difficult to do business. Strengthening of the local Agricultural SME sector through building of functioning business development support and agricultural finance markets within an enabling environment should be at the core of the BHOS policy for Africa.
c.
Government should stop trade promotion that is creating unfair competition for local, African small and medium sized enterprises. Support instruments should be additional, contribute to the public good and be solving for risks and costs that cannot be assumed by the private sector
Vraag7
OntwikkelingssamenwerkingDevelopment cooperation
Nederlandse inzet op Ontwikkelingssamenwerking
Nederland is op verschillende thema’s actief op gebied van ontwikkelingssamenwerking. Zo investeren we in het realiseren van de Sustainable Development Goals (SDG’s) en zetten we extra in op opvang in de regio, toegang tot vaccins, klimaatadaptatie en -mitigatie. Nederland gaat door met wat goed gaat en focust op waar Nederland goed in is, zoals verbinding tussen diplomatie en ontwikkelingssamenwerking. Meer informatie over het ontwikkelingssamenwerkingsbeleid van Nederland is te vinden op www.nlontwikkelingssamenwerking.nl.
7. Waar is Nederland op het gebied van ontwikkelingssamenwerking volgens u goed in? Op welke thema’s zou Nederland een aanjagende rol kunnen vervullen?
(EN)
Dutch development cooperation activities
The Netherlands is actively pursuing a number of policy themes in the area of development cooperation. For example, we're investing in efforts to advance the Sustainable Development Goals (SDGs), reception in the region, access to vaccines, and climate adaptation and mitigation. The Netherlands will continue its efforts in areas where progress is being made and will focus on its strengths, such as linking diplomacy and development. For more information about Dutch development policy, go to www.nlontwikkelingssamenwerking.nl.
7. In your opinion, what are the Netherlands’ strengths when it comes to development cooperation? In which policy themes could the Netherlands play a leading role?
Agriculture, Food security and Food Systems; Water management; Financial sector; climate change adaptation and strengthening resilience of Agriculture and food systems
Vraag8
Innoveren op OSNederlandse internationale samenwerking is flexibel en kennisintensief, we zijn vernieuwend. Zo ontwikkelt Nederland nieuwe manieren van werken en partnerschappen die daarna door bijv. de Europese Commissie en Wereldbank worden opgepakt of opgeschaald. De Nederlandse internationale samenwerking fungeert dus veelal als een creatieve en kennisintensieve incubator (een broedplaats voor nieuwe ideeën. Nederland is een relatief kleine donor, maar als lidstaat van de EU en via bilaterale hulp kan Nederland de zichtbaarheid van EU-hulp vergroten en additionele relevante kapitaalstromen generen.
8. Op welke manier en op welk vlak kan de Nederlandse ontwikkelingssamenwerking nog meer innoveren?
(EN)
Innovative development cooperation
Dutch international cooperation is flexible and knowledge-intensive. We are also innovative, developing new ways of working and new types of partnership that are subsequently adopted or scaled up by others, like the European Commission and the World Bank. In this respect, Dutch international cooperation is like a creative and knowledge-intensive incubator. We are a relatively small donor, but as an EU member state and through bilateral aid we can make EU aid more visible and generate additional, relevant capital flows.
8. In what other ways and areas could Dutch development cooperation innovate more?
• Take a system-building approach and invest (or de-risk investments) in identified gaps in each system as opposed to supporting stand-alone projects that solve for a particular challenge. Many pieces of the food systems are functioning, but…:
• Policies are there (but implementation and enforcement is often lacking), farmers are there (but not reached by critical services such as extension, especially women), seed companies and fertilizer blenders exist (but suffer from unpredictable Government interventions), agrodealers are many (but not reaching the last mile), food processors are there (but not getting the right quantity and quality of raw material to operate at full capacity and produce nutritious food), it is often the connection between these different pieces and the investments in those critical gaps that are missing to make the food system sustainable and investable.
• Coordinate and align more with various actors in the ecosystem to reduce duplication, deepen niche areas and contribute to greater impact.
Vraag9
Een donor met durfDe Nederlandse internationale inzet is gedurfd, omdat we financiële investeringen koppelen aan onze diplomatieke inzet en expertise. We continueren thema’s waar we traditionele meerwaarde hebben: seksuele en reproductieve rechten en gezondheid (SRGR), water, voedselzekerheid en veiligheid & rechtsorde. Daarbij kunnen we nog meer gebruik maken van het diplomatieke gewicht van o.a. de EU. We investeren in systeemverandering om te zorgen dat we de SDG’s in 2030 realiseren. Met systeemverandering bedoelen we dat we de systemen die armoede en ongelijkheid in stand houden aanpakken.
9. Op welke manier/welk vlak kan Nederland als donor nog meer durf te tonen?
(EN)
A bold donor
Dutch international efforts can be characterised as bold, because we link financial investment to diplomatic efforts and expertise. We will continue our work on themes where we have always added value: sexual and reproductive health and rights (SRHR), water, food security, and security and the rule of law. We will also make better use of the diplomatic weight of the EU. To ensure we achieve the SDGs by 2030, we will invest in systemic change, i.e. tackling the structures that maintain poverty and inequality.
9. In what ways or areas could the Netherlands, as a donor, be even bolder?
• Be bold and open the discussion on the role public development banks should (be allowed to) play in financing private sector to adapt to climate change, create employment and be more gender inclusive or transformative (AfDB, FMO, EIB, IFC,.).
• These institutions have the mandate to invest for impact (SDG contribution) but are at the same time bound by heavy regulation, compliance and their triple A rating and bank status (by their shareholders including the Dutch Government). This means they cannot take the risks that are often required to invest in the areas where most of the impact can be achieved: the agricultural (SME dominated) sector. Their operational costs also do not allow for investments in smaller and more risky deals which form the majority of private sector in Africa.
• Many of the public development banks, impact investment funds and even commercial banks are competing for the same (large) impactful deals and unfair competition through use of subsidy instruments (deal sweeteners) risks to distort the markets and drive-up valuations and deal origination cost.
• Be bolder in increasing investments into climate change adaptation especially for African agriculture and enterprises, both at the country and regional levels. Africa like many developing countries bears the brunt of the effects of climate change and therefore need more bolder adaptation initiatives. The upcoming COP27 is an important opportunity for greater voices on supporting LDCs and DCs adaptation.
• Greater engagement in supporting policy reforms and institution building. In the realm of agriculture, Netherlands is focused on rural land rights in partner countries. The policy note Investing in Global Prospects mentions the importance of land rights and the expertise of the Netherlands on this topic. While this is important there is a need to make investments into broader policy areas as this is critical for sustainability of development efforts.
Vraag10
Afrondende algemene vraag10. Heeft u nog andere punten van aandacht die u vindt dat meegenomen dienen te worden in de nieuwe beleidsnota?
(EN)
General closing question
10. Are there any other points that you believe should be included in the new policy document?
It is important to take a holistic view on cost of capital for Africa based agricultural SMEs and support measures that can reduce the cost of capital. Lack of access to finance for the agricultural sector is priority number one for African private sector (which represent 65% of employment, 30% of GDP contribution but receives less than 4% of bank financing) and cost of capital is a major barrier in accessing the required finance. The current Dutch instruments are not sufficiently addressing these issues (mostly regulatory and know how).
The required measures will cut across policy measures, innovations, digitization, de-risking instruments, insurance, etc... The current Dutch financial sector interventions in Africa are mostly focusing on larger deals, non-agricultural sectors and financial sector players that are not investing in the agricultural sector either.