Your Excellency President Napolitano,
Excellencies,
Ladies and Gentlemen,

I should like to thank His Excellency, President Napolitano, for inviting me to participate in today’s celebration of Africa, which is a testimony to Italy’s long-standing support for the continent. This year’s celebration takes place in the wake of last year’s food crisis and in the midst of the unfolding and unprecedented global financial and economic crises.

The impact of these crises on Africa has been severe and threatens to undo the continent’s notable economic progress of the last decade and a half. For a number of years prior to 2008, Africa was averaging economic growth rates of more than 5 per cent per year¹, giving renewed hope to its people that poverty could, in time, be eradicated.

All this, however, came to a halt last year. Only last week, the IMF revised its forecast for growth in sub-Saharan Africa in 2009, from 3.25 per cent to just 1.5 per cent – well below the rate of population growth.

And yet, if African countries are to continue to improve the standard of living of their people and achieve the first MDG - that is, to halve the proportion of people living in extreme poverty and hunger by 2015 – then their economies have to return to a path of high growth. So the fundamental challenge facing Africa today is how to reverse the current downward trend.

We at IFAD believe the answer lies in creating the right policy framework and incentives for a rapid growth in agriculture. Successful examples of economic growth – whether in Europe in past centuries or in the rapidly growing economies of Asia today – have all shown that agricultural growth is fundamental to economic growth and social development. Africa cannot be an exception. It cannot leapfrog this essential foundation.

In Africa, efforts to develop agriculture must necessarily focus on smallholder agriculture, as it is the major sector in almost all countries. Smallholder farms number some 80 million and supply up to 80 per cent of African agricultural production. In light of today’s challenges, my message is simple: resuming economic growth, resolving the food crisis, and tackling the challenge of poverty must necessarily be based on creating a dynamic smallholder agriculture sector. Investing in smallholder agriculture is the most sustainable safety net for societies.

Fortunately, Africa has the potential – both in terms of its human and natural resources – to lay the ground for a vibrant agricultural sector, which can meet its own food and raw material needs as well as the needs of other regions of the world. Our sister agency in Rome, FAO, estimates, for example, that with the right inputs such as appropriate irrigation and fertilizer, the amount of arable land available in sub-Saharan Africa could be increased four to five times. And with the right investment in agricultural research, new varieties of food staples, such as the New Rice for Africa (NERICA), can be developed that can more than double yields.

I should, however, warn that this immense potential will remain unrealized unless African countries themselves put their political and economic house in order and create the right conditions for growth. For growth and development are intrinsic and endogenous processes. I know no nation, no people whose development was solely dependent on external support. Every tree, every plant must be fully rooted in its own soil for it to fully enjoy the resources of its external environment.

It is therefore essential that African countries continue to deepen the foundations for democracy to help ensure political stability – so critical for economic growth. And it is also essential that they continue to improve their systems of governance to unleash fully the entrepreneurship of their people.

In agriculture, African countries need to invest more and fulfil the commitment they made in Maputo in 2003 to raise investment in agriculture to at least 10 per cent of national budgets. The international community, for its part, should continue to assist Africa’s efforts by fulfilling the pledges made to Africa at Gleneagles to double ODA and improve access to markets.

Excellencies,
Ladies and Gentlemen

I believe that Italy has a unique and historic opportunity this year to play a major role in helping African countries meet their development and food security challenges. Let me give you two reasons why.

First: as host of FAO, WFP and IFAD, Rome is recognised as the global hub of international food and agriculture activities. In the face of today’s global food challenges, there is all the more reason to strengthen the capacity of these institutions. In particular, the three Rome agencies should be supported to lead the drive for action for Africa.

Italy has already set a powerful example in this regard. For IFAD’s eighth replenishment, covering the period from 2010 to 2012, Italy has pledged US$80 million, making it IFAD’s second largest contributor among our 165 member countries. We are indeed grateful for this generous support.

The second reason is your Presidency this year of the G8. It is immensely encouraging that Italy has already announced that agricultural development will be the focus of the G8 Summit in L’Aquila in July. I should also add that the first G8 Agriculture Ministers meeting was held in Treviso just last month. These events send an important signal to the developing world, and to the wider international community, that the G8 will provide leadership in global efforts to address the challenge of hunger and food security. 

Excellencies,
Ladies and Gentlemen,

The Rome-based agencies are ready to work together in support of efforts to address global food security, based on our "twin track" approach of direct action to alleviate hunger immediately for the most vulnerable, and longer-term agricultural and rural development programmes to eliminate the root causes of hunger .

IFAD's mandate focuses on the latter. Over the course of the last three decades, IFAD has developed the knowledge and acquired the experience to help unleash the potential of smallholder farmers. IFAD will have a greater capacity to invest in smallholder agriculture as pledges for IFAD’s eighth replenishment stand to make this our largest.

Over the next four years, through US$3.7 billion in funding to agricultural programmes and projects, it is our hope that IFAD will be able to support some 70 million poor smallholder farmers to enable them to increase their productivity and incomes. And in all such efforts, Africa will continue to be a particular focus of our work, with around 45 per cent of IFAD funding going to Africa.

Let me conclude by stressing that poverty and hunger are inhuman and should not be tolerated. In Africa, these problems are particularly acute and require our concerted attention. I am confident, however, that in continued partnership and with a renewed global commitment, we can enable African countries to lay the groundwork for a brighter future for their people.

I thank you for your kind attention.

Quirinale Palace, Rome
28 May 2009

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1/ African Economic Outlook (11May09)