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It gives me great honour and pleasure to participate in this panel for four reasons:

Firstly, the recognition that agricultural investment and development are important, if not central, to both economic and social development on the African continent.

Secondly, it is the fact that at another level we are currently involved in revising the trade relations that exist and there is an opportunity for using the agricultural sector for enhancing economic development in developing countries through improved market access conditions.

Thirdly, with the increasing attention and energy that the African countries and their development partners world-wide are giving to the Millennium Africa Programme, I am convinced that agriculture will secure appropriate support.

The fourth reason is that in twelve months' time we will all be in Johannesburg discussing the experience of and recommitting to world sustainable development, and as you well know, agricultural resources are a critical part of that dialogue.

In short, therefore, Chairperson, this debate is timeous in that it can contribute to a better understanding of the challenges that face us now and it is my hope that the issues and perspectives positively influence the mentioned three processes.

The theme of this panel discussion is Agriculture and Sustainable Food Security in Africa - a focus on meeting basic needs. I will address myself to a few issues in support of the theme and hope that this will add to the debate.

If we were to define the basic minimum of needs for African people and the continent, there would be of course some variety as a result of the rich diversity of the people themselves and the continent as a whole. Notwithstanding, a core set of basic needs which underpin economic and social development and the quest for a better [quality] life would include the following: food; water; health; security; the right of access to a dwelling; and to income generating opportunities. At another level: peace and stability; democratic freedoms; and the right to life would also be included.

The challenge becomes how to ensure that these basic needs are met speedily in the current context of growing poverty, hunger, civil strife and polarisation of opportunities through globalisation. This is also against the background of almost five decades of development partnerships and support to African countries, which do not appear to have provided sustainable solutions.

In our discussions today we should reflect critically on the role of the UN system in facilitating and supporting new efforts aimed at economic and social development. The crux will be in a review to deal decisively with our individual and collective roles and responsibilities as members of the United Nations.

AGRICULTURE AS A STIMULUS TO SUSTAINABLE DEVELOPMENT AND FOOD SECURITY

Today's topic requires us to articulate the building blocks for sustainable food security in Africa and the role that agriculture can play. For agriculture to fulfil its role of economic development, it must be supported in the direction of increased investment in infrastructure, adequate financing instruments, research and institutional and human development in order to ensure and increase in productivity and promotion of market activity. Policies must therefore deal with issues of access, control and use of natural resources, risk management, as well as the issues of equity and efficiency.

World and African experience points to the need for governments to focus on the following as critical components of an agricultural development programme:

Infrastructure:

* Infrastructure has been identified as a major limiting factor in agricultural development. At the farm level there is a case for government support to the farmers to ensure that this long-term investment that also facilitates access to improved technologies is made. Whilst the developed agricultural economies of the world have made these investments, the problem is that most developing countries do not have adequate budgetary resources to undertake this action. It therefore leaves the best of farmers in poor African countries perpetually on the periphery of the world agricultural stage. It is understood that there is a need for governments to invest in supportive public infrastructure such as dams, roads, transportation and communication infrastructure as a prerequisite to sustained agricultural growth.

* This issue needs to be resolved both in term of the principle for support as well as in reaching agreement on the appropriate mechanisms that can facilitate financial investment.

Access to Finance:

* Access to finance, to support production processes and entrepreneurial activity, is another area that has received much attention. However, more needs to be done. Diversifying the forms of collateral use in extending credit, creating new innovative financing products and expanding the operations of the private sector into rural areas in most African countries are probably the greatest challenges yet.

* Indeed, micro finance has been promoted for a long time in support of agricultural and rural enterprise development. In my view whilst this is a necessary component of any rural development, it does not necessarily serve to enhance agricultural productivity.

* At another level there is still room for a redesign of the wholesale financing mechanism in the developing world and the establishment of locally-based institutions which can act as financial intermediaries. One example, which is proving to work in the remotest and poorest regions of our country, is the village bank concept promoted by IFAD.

RESEARCH INVESTMENT AND TECHNOLOGY DEVELOPMENT AND TRANSFER

* Research investment and technology development and transfer is an area which most African countries are increasing engaged in at the level of policy and institutional development. The emerging issues include the need for well-coordinated national agricultural research systems supported and directed by governments as well as the need for mutually beneficial partnerships with developed research institutions and the private sector to maximise the benefits of research outputs. Much of this development is due to the long-standing efforts of the Consultative Group on International Agricultural Research and specifically in terms of stimulating African consensus building, the Special Programme for African Agricultural Research. (For those who may not be aware, these two entities are located and financed by the World Bank).

HUMAN RESOURCES INVESTMENT

People, however, remain at the centre of any development strategy. At one point in time, the big issue was developing a critical mass of adequately trained Africans to lead and work for development on the continent. Since independence, many governments have invested in primary, secondary and even in some cases tertiary education in order to close the literacy gap. Whilst there is still a need to continue these investments, it is clear that the current challenge is attraction and retention of these skills within the countries or regions from which they come. The mobility of African professionals, whilst welcomed, effectively depletes the countries themselves of the much-needed human resources. Subsequently, we are forever training and retraining our people in order to improve their performance but we then loose them to the better-resourced international institutions and countries. The challenge here is how do we create a conducive environment for people to apply their skills and experience amidst the existing conditions of hardship and poverty.

Part of the solution should lie in building institutions that enable professionals to lead and direct change towards a better life for all. There is room for international networks and partnerships in this regard which I believe ECOSOC can explore. It will be important not to isolate agricultural skills needed from the broader need for skills aimed at the development agenda for Africa.

THE NEED FOR GLOBAL TRADE REFORM

Food Security is about access, availability and affordability. The world acknowledges that resolving the problems of the hungry in sub- Saharan Africa is not only about enhancing production at the household level but also includes the need for supply of food to the growing number of cities. A crosscutting issue in all development dialogue has become marketing and trade reform.

At a country level, in the event the local markets do not function, the tendency has been to substitute the need through importation of food products from developed countries where there is an apparent price advantage. While this trend in itself is not necessarily bad, it does however undermine the ability of developing countries to focus in resolving constraints that impact negatively on their domestic marketing system. The other broader question however, is the issue of marketing access in particular for those countries that have a capacity to produce.

Trade barriers, particularly between developed and developing countries, are becoming more sophisticated. Some of the artificial barriers include an abuse of sanitary and phytosanitary measures on the pretext that these are based on rational consumer preferences. While raising these concerns, we accept that managing risks associated with the movement of diseases and pests across borders is a government responsibility. The world trade instruments have been developed in order to regulate the norms standards that should apply across countries.

There has been an argument that says African governments cannot meet such standards; the reality is many of them have not been part of setting these. The other challenge for all of us is the ability to meaningfully create an environment that will allow equal participation. However, where there are resource constraints the challenge is to mobilise resources to strengthen such capacity.

The other important element of this debate on agricultural trade is linked to strategies and support to rural development. A number of African countries have attempted to give support towards public infrastructure, education and health in rural communities. This has left little investment to rural producers, this has however not been the case in developed economies. Our interpretation is that developed economies, in order to support their rural development objectives, need to keep farmers on the land even if they have no competitive edge. We are of the view that unless we recognise that Africa can be a source of quality agriculture and food products for time to come and make efforts to increase markets for such products in developed countries we are merely paying lip-service to supporting African recovery.

MILLENNIUM AFRICAN RECOVERY PLAN

Having dealt with some of the key issues that require attention in order to contribute towards African agriculture development, one is encouraged by the role that African leaders are playing in order to revive Africa's economic potential. In the past year Presidents Mbeki, Bouteflika and Obasanjo were assigned by the OAU to look at ways in which Africa can reconstruct itself. The elements of such a strategy include identifying key elements for success. One of these has been a commitment from African leaders on what they need to do to create an enabling environment that will underpin such a programme. Secondly, creating partnership for development with developed countries and multilateral institutions in such a way that there is respect and appreciation that the leadership of such a programme is indeed retained by Africa.

Exactly seven years ago, today, South Africa started its own reconstruction and development of its nation. It also included redefining relationships with its neighbours by looking at practical ways in which development can be achieved. The Maputo corridor is one such programme that saw a meaningful economic strategy being developed. The Transfrontier conservation area between Mozambique, South African and Zimbabwe - in order to share the benefits of eco-tourism in the region - is another practical way in which we have tested our regional reconstruction programme.

Indeed this has been a long journey; it will continue to be so. However, the commitment of the political leadership to the process of development, both morally and financially through the reprioritisation of countries' budgets in order to succeed, has given all those who have seen such an initiative, hope.

The lessons that we have learnt as a country and as a region has affirmed our conviction that this is a journey, not an event, if we have to succeed.

I thank you for your attention

Issued by: Ministry of Agriculture and Land Affairs, 27 April 2001