1. Promoting an African Green Revolution Luanda, Angola 26 th November 2009 Sean de Cleene Vice President – Yara International

2. Date: 2006-09-18 - Page: 2 1 Trinidad2 JV in Libya3 JV in Qatar4 Porsgrunn5 Sluiskil Yara global supply network

3. Date: 2006-09-18 - Page: 3 Yara presence in Africa Yara sells about 1.7 million tonnes of fertilizer to 30 countries each year

4. Date: 2006-09-18 - Page: 4 Key global challenge - more people needing more food from less land It is a global challenge to feed people when arable land per person decreases. Arable land in m2 per person (left axis) World Population in billions (right axis)

5. Date: 2006-09-18 - Page: 5 Sub-Saharan Africa has huge untapped potential

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8. Date: 2006-09-18 - Page: 8 Yara initiatives to support African agricultural growth and food security Provide anchor investment to support the development of agricultural growth corridors in key coastal hub locations Promoting a green revolution Develop value chain partnerships Agricultural growth corridors Develop balanced fertilization programs adapted to local growing conditions Success of the Oslo Green Revolution Conference series and Yara Prize - leading to African Green Revolution Forum in Africa in 2010 Develop agricultural value-chain partnerships to help promote African agriculture and achieve food security.

9. Date: 2006-09-18 - Page: 9 9 Based on a value chain approach to solving food insecurity and achieving sustainable agricultural growth … DRAF T Farmers Markets Subsidies & gov’t interventions Fiscal Policy & Legislative Reform Support for facilitating & catalyst institutions Infrastructure and port facilities Trade Reform and Cutting Red Tape Training & Technical Assistance Research, Extension & Accreditation Business Planning & Capacity Building Financial Services & Warehouse Receipting Market Development & Brokerage Value addition Input Suppliers Creating an enabling environment Creating value chain efficiency Developing Business Services Strengthen investment into entire value chain OBJECTIVE: To promote sustainable agricultural growth

10. Date: 2006-09-18 - Page: 10 Addressing specific value-chain challenges through partnership Challenge While farm productivity improvements are essential to improving overall agricultural growth. In many markets key elements of the agricultural value chain are weak leading to significant market inefficiencies making small holder farmers uncompetitive in the market place. This includes: raw material inputs, distribution systems, transportation and storage services, agronomic advisory services, financing facilities, market outlets etc Initiatives Develop working partnerships, with different companies, NGOs, donors and government departments where each has a vested interest in coming together and contributing core knowledge and expertise to address specific gaps along the agricultural value-chain. Examples are:  Ghana Grain Partnership (Masara N’Arziki),  Tanzanian Agricultural Partnership (MAP)  Malawi Agricultural Partnership (MAP)  Beira and Dar es Salaam Agricultural Growth Corridors

11. Date: 2006-09-18 - Page: 11 Management Risk sharing Innovative financing Access to affordable infrastructure Agriculture related infrastructure - a critical missing piece of the puzzle? Irrigation cost per Kg (diesel): $0.60-$0.90 Irrigation cost per Kg (electricity): $0.10 Slide supplied by InfraCo

12. Date: 2006-09-18 - Page: 12 Beira Agricultural Growth Corridor Business as unusual

13. Date: 2006-09-18 - Page: 13 A major transport route for the South-Eastern Africa region...

14. Date: 2006-09-18 - Page: 14 Like Angola, Beira has significant and proven agricultural potential...... but there are major constraints on profitable agriculture Enormous potential to increase yields of farmers through access to knowledge, improved seed varieties and balanced & appropriate use of fertilisers and greater access to irrigation Critical need to develop innovative financing approaches and business models to include small holder farmers into overall regional market development approach Inadequate agriculture related hard infrastructure (e.g. feeder roads, electricity, dams) and critical soft infrastructure constraints (customs, red tape, port handling) are driving up costs of production & transport, making African agriculture less competitive. A lack of access to medium and long-term finance, preventing most farmers, especially smallholders, from being able to invest into increased production. Need for more focus on disentangling currently complex agricultural value chains in a way that support small holder farmer increased production & market access Limited opportunities for value-addition through storage or processing. Lack of coordination between role players that play a critical role in catalysing agriculture including: electrification, transport, infrastructure and finance

15. Date: 2006-09-18 - Page: 15 Value chain development Risk sharing Access to affordable infrastructure Innovative Financing Mechanisms Agricultural corridors provide an opportunity to bring the pieces together? Community of experienced African farmers in Southern Africa Interest from international companies to get involved across the value chain Key links into govt, civil society and business networks (CAADP, CEPAGRI, Technoserve, NBF, AICC etc) Potential scope for cross border regional value chain initiatives New “social impact investors” emerging e.g. TransFarm, Africa Agriculture Fund G8 $20bn for food security New guarantee facilities announced, e.g. AGRA/ Standard Bank Critical need for catalytic funding to fast track growth and corridor innovation Pilot models (e.g. InfraCo irrigation project in Zambia) proven to work and can be replicated Interest from donors and multilaterals to support new approaches, e.g. “patient capital” Slide adapted from InfraCo

16. Date: 2006-09-18 - Page: 16 The BAGC initiative aims to stimulate a major revival of agriculture along the corridor Jan ‘09Mar‘09Jun ‘09Aug‘09Dec‘09 Oct ‘09 Concept launched at Davos First meeting BAGC Working Group in Maputo BAGC Concept Note presented at WEF, Cape Town BAGC Stakeholder workshop in Maputo Investment Blueprint underway Planned first meeting BAGC Partnership Present results at Davos Jan ‘10 High-level review of agricultural potential of the Beira corridor Interviews with farmers and private investors involved in agriculture Analysis of donor programmes to support infrastructure and agriculture Detailed mapping and forecasting of agricultural potential Develop proposals for a BAGC Partnership Identify 5-6 “priority” investment opportunities in agriculture and infrastructure Propose new financing/ project development mechanisms PHASE 1PHASE 2 $0.6m mobilised

17. Date: 2006-09-18 - Page: 17 Can the Value Chain and Agriculture Corridor model be replicated elsewhere? There needs to be strong commitment and leadership from all levels of government to promote agriculture in line with CAADP There needs to be catalytic funding from donors and government and a willingness to work actively with private sector partners A number of companies see a critical need to engage in developing new models to promote agricultural growth that supports both small and larger commercial farming enterprise development Pre-competitive nature of the corridor allows companies to engage in addressing key constraints such as infrastructure which were traditionally beyond their sphere of influence as individual companies Bottom line is there is a critical need to be able to show fast and real agricultural progress on the ground in Africa => and that means $$$ into projects and development of new and innovative financing mechanisms that leverage in private sector investment into agriculture

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