South Sudan Infrastructure Action Plan - A Program For Sustained Strong Economic Growth - Chapter 6 - Development of Agriculture in South Sudan

6 Development of Agriculture
in South Sudan
6.1 Current Status of Agriculture, to 62% in Western Bahr el Ghazal and to as much as 95%
in Northern Bahr el Ghazal. For the country as a whole,
Fisheries and Forestry cereal consumption accounts for about 48% of total basic
food consumption in term of value. Livestock accounts for
approximately 30%, fish 4%, roots 2%, seeds about 3.8%
6.1.1 The Setting and other non-cereal crops combined, 12.7%.
Agriculture is the backbone of the economy of South Sorghum is the main crop cultivated with a wide range
Sudan. Estimates on value addition by agriculture, forestry of local landraces. It is the main staple food in all states,
and fisheries accounted for 36% of non-oil GDP in 2010 except for the three Equatorias where the local diet is also
(see Annex Table 2.4). It is evident that about 80% of the based on maize flour (largely imported from Uganda)
population lives in rural areas, with agriculture, forestry and cassava (mainly in the Green Belt). In Northern and
and fisheries providing the primary livelihood for a Western Bahr el Ghazal, Warrap and Lakes, sorghum
majority of the households in each state (Map 6.1). Much of is often intercropped with sesame and millet. Maize is
the rural sector activity is currently focused on low-input normally cultivated in limited areas, close to homesteads
Development of Agriculture low-output subsistence agriculture instead of production

for markets. Among the significant reasons for this are: (i)
the need for improved agricultural inputs and techniques
and often used for green consumption. In some locations
such as Upper Nile, maize is cultivated in larger plots,
instead of sorghum, provided the soil is suitable. Minor
such as seeds and fertilizers, storage facilities and advisory cereal crops such as bulrush millet, finger millet and upland
in South Sudan services, and irrigation development; (ii) the difficulties

faced by farmers in accessing markets due to the poor road
network, lack of other transport modes and nuisance taxes
rice are also cultivated in certain locations. Groundnut is
cultivated on sandy soils in most locations and makes an
important contribution to the household diet. It is the
and charges, including bribes; (iii) the lack of a critical main cash crop which contributes to farming household
mass of farmer and rural producer associations as a means income at certain periods of the year. In parts of Central
of entering the market place with the aim of minimizing and Western Equatoria, sweet potato, yam, coffee, mango
the cost of inputs, accessing loan finance at affordable rates and papaya are commonly grown. Okra, cowpea, green-
and influencing farm-gate prices; and (iv) uncertainties gram, pumpkin and tobacco are also widely grown around
pertaining to property rights and access to land. homesteads. Vegetables such as onions or tomatoes are
not commonly grown in rural areas, but are increasingly
Two and a half decades ago, the country was net exporter of cultivated near cities to supply urban markets.
agricultural product to regional markets; due to war-related
destruction, poor infrastructure and lack of investment in Livestock provides the main source of livelihood for a
the agriculture sector, South Sudan is now a net importer substantial portion of the population, with herds (mostly
of food. It currently imports as much as 50% of its needs, cattle) concentrated primarily in western parts of Upper
including 40% of its cereals from neighboring countries, Nile state, and in East Equatoria, Jonglei and Bahr El-
particularly Uganda and Kenya. Total food imports are Ghazal states. Livestock are raised by nomads and semi-
estimated to be in the range of $200-300 million a year. nomads and are entirely dependent on access to grazing
land and watering points. However, the increasing number
While the country produces and consumes a wide range of of sedentary farmers is reducing the amount of grazing
agricultural commodities, with the passage of time some land available, and as noted in Chapter 5, that is a source of
commodities have become prominent in the national internal conflict in the country.
pattern of consumption. Cereals, primarily sorghum
and maize, millet and rice are the dominant staple With over 95% of agricultural production being rain-
crops in South Sudan. According to the 2009 National fed, weather variability is a major factor in determining
Baseline Household Survey (NBHS) more than 75% of crop performance. In lowland areas, flooding is a normal
rural households consume cereals. At the state level, the occurrence, but variability of the water levels affects
percentage ranges from a low of 28% in Upper Nile state harvested area and yields. Agriculture is, for the most
130 South Sudan: An Infrastructure Action Plan South Sudan: An Infrastructure Action Plan 131
part, based on small, hand-cultivated units often farmed Lakes, Warrap and Bahr el Ghazal States. In addition various policy papers that, in turn, has led to the drafting of the official policy document for guiding agricultural
by women-headed households. Despite land availability to social and cultural barriers, lack of spare parts and a comprehensive food and agricultural development policy development in the country.
for farming, manual land preparation limits the area skills to maintain moult-board ploughs and adaptability framework for the country.48 A major ongoing concern for
households can cultivate. Making use of animal traction of ploughs model to local soil conditions are the main policy makers is that most of the food sold in the market
would allow household to cultivate larger plots and plant constraints. Mechanized farming is practiced mainly in in South Sudan is imported and a significant proportion 6.2 Agricultural Land Use
in line to ease weeding. The GoSS, FAO and NGO-based
extension agents make efforts to promote animal traction
the Upper Nile counties of Renk, Melut and Wadakona
and to a limited extent in Malakal and Bentiu in Unity
of food insecure people rely on imported food aid. An
important focus of the ongoing review of the food security
in South Sudan
on a small-scale in Central Equatoria, Western Equatoria, State. policy and related framework has been the following:
• Development of production support services, with 6.2.1 Estimates of the Cropped Area
particular emphasis on how the private sector can be
MAP 6.1: Share of Households Depending Primarily on Agriculture and Livestock harnessed to provide various services including input The country lies entirely within the River Nile Basin and
delivery and mechanization. is covered by grassland, swamps and tropical forests.
• Expansion of agricultural markets, value chain As noted in Chapter 5, 75% of the country’s land area is
development and finance, with special emphasis on suitable for agriculture while, approximately 330,000 square
agribusiness development. kilometers, or about half of the total land space, is estimated
• Inter-relationships between food security, social to be suitable for culivation. With its high potential for
development and climate change. agricultural production, some expert observers have said
that, with the development of appropriate and adequate
The draft policy statement is to be presented to the Council infrastructure, South Sudan could become the bread basket
of Minister of South Sudan and if approved, it will become of Africa.49
Table 6.1: Land Use in South Sudan (In hectares)
Category Area Share (%)

Cultivated 2 760 131 4.3
Trees 20 742 243 32.6
Shrubs 25 032 308 39.3
Herbaceous 14 522 385 22.8
Urban/industrial 34 188 0.1
Bare rock & soil 159 106 0.2
Water bodies 462 105 0.7
Total 63 712 466 100.0
Source: Annex Table 6.1.
6.1.2 Institutional Arrangements is to transform agriculture from traditional subsistence

farming to achieve food security through scientific, market In spite of having 50% of its arable land mass as prime The Western Flood Plains livelihood zone has the most
agricultural land only 4% of this area is cultivated cropland (34% of national cropland). Greenbelt and
for the Sector oriented, competitive and profitable agriculture without
compromising the sustainability of natural resources continuously or periodically. The very low ratio of Eastern Flood Plains zones are the other two important
for future generations. The mandate of the Ministry of cultivated to total land compares with 28% in Kenya and crop production regions, accounting for, respectively,
At the national level, primary responsibility for agriculture,
Animal Resources and Fisheries is to promote, regulate 8% in Uganda. Most of this land use in South Sudan is 18% and 26% of national cropland. Altogether, these three
forestry and fisheries rests with two ministries: the Ministry
and facilitate animal production and fisheries, value- accounted for by smallholder subsistence farmers that, livelihood zones account for 78% of national cropland.
of Agriculture and Forestry (MAF), and the Ministry of
added addition and access to credit and regional and in the absence of fertilizers, pesticides and herbicides, Five states account for 70% of the national cropland (and
Animal Resources and Fisheries (MARF). In addition,
international markets for food security, poverty alleviation practice some form of shifting cultivation. As Table 6.1 56% of the national territory): Upper Nile, with 19%
the Ministry of Cooperatives and Rural Development
and socio-economic development. indicates, the total area that is cultivated on a shifting basis of total cropland; Warrap, 15%; Jonglei, 14%; Western
and the Ministry of Water Resources and Irrigation
is estimated at about 2.8 million hectares. Areas covered Equatoria, 11%, and Central Equatoria with 11%. Almost
have significant responsibilities for particular aspects of
A series of policy papers were prepared during 2006-2007 with trees and shrubs account for 72% of land use, with all irrigated crops (mainly rice) are in Upper Nile; rice on
agricultural development.
for food and agriculture, forestry, animal resources, and grasslands accounting for about 23% of the total area. flood land is all in Northern Bahr el Ghazal while fruit trees
The mandate of the Ministry of Agriculture and Forestry fisheries.47 In 2010, the FAO sponsored a review of these
48 See Mengistu, Diress (2010), “A Review of Selected Sector Policies of the Government of Southern Sudan to Identify Gaps in Food Security Policy.” Report submitted to the
47 See the following papers prepared by the Ministry of Agriculture and Forestry: Food and Agriculture Policy Framework (FAPR), November 2006; MAF Strategic Plan Food and Agriculture Organization of the United Nations/Sudan Institutional Capacity Programme: Food Security Information for Action, Southern Sudan, Subprogramme,
2007-2011, June 2007; MAF Forest Policy Framework (2007) and Strategic Plan 2007-2011. In the case of the MARF, the following papers were prepared: Animal Resources June 2010.
Sector Policy and Strategic Plan (2006-2011) and Fisheries Sector Policy and Strategic Plan (2006-2011). 49 Source: Several assessments by FAO; Huliq “US envoy on South Sudan’s economic potential” February 2007; and, BBC “Sudan, one country or two?” May 27 2011
and tree plantations are exclusively in Green Belt Zone expand and scale up agricultural production by bringing areas include agricultural potential, access to markets, are Western Bahr el Ghazal, the three Equatoria states,
encompassing Western, Central, and Eastern Equatoria more of the arable land into cultivation by smallholder and and density of population. For the purposes of this Warrap, Upper Nile and Jonglei. As Table 6.2 indicates,
which have the longest LGP in South Sudan. commercial farmers, introduction of appropriate modern Report, this ongoing analysis has provided the basis for the Western, Central and Eastern Equatoria states would
farming technology and the use of higher yielding seeds. an indicative estimate of the prospects for expansion in account for almost 60% of the proposed increase in
According to the World Bank, the actual area cultivated cultivated areas in all 10 states. The results are set out in cultivated areas. Large amounts of additional land (26%
in any one year in South Sudan has ranged between a As discussed in Chapter 1, the vast majority of the Table 6.2 below. The analysis suggests that the livelihood of the proposed increase) would also be brought under
minimum of 1% and a maximum of 2% of the total land population lives in rural areas with low population zones with large potential are the Green Belt, Ironstone cultivation in Jonglei, Warrap, and Western Bahr el
area – that is, from about 650,000 to 1.3 million hectares.50 densities. Even though the density varies widely, the Plateau and Hills and Mountains; the relevant states Ghazal.
According to FAO-WFP reports, about 1 million hectares average population density for South Sudan is estimated
were put under cultivation in 2008. Cereals typically at 13 people per km2 compared to 166 in Uganda, 70 in
account for 80% or more of the cultivated area each year; Kenya, 83 in Ethiopia, and 36 people per km2 for Sub- Table 6.2: Current and Proposed Additional Cropland for the Medium and Longer-Term
for example, the area under cereals that was harvested in Saharan Africa in 2009. Two states have a population (In hectares ‘000)
2008 was about 850,000 hectares. Sorghum is the main density of less than 10 people per km2: Western Bahr el
cereal, followed by millet and maize. The average area Ghazal (3 per km2) and Western Equatoria (8 per km2),
State Cropland Share (%) of Cropland as % of state total
culivated by these household is typically in the range of while five states have a density that lies between 10 per
1-4 feddans (0.4-1.7 hectares). km2 and 20 per km2. Of these, Upper Nile has the largest Current Additional Total additional Current Total
cropland cropland cropland cropland cropland cropland
cropland area nationally, but a population density of 13 per
km2. Three other states – Warrap, Northern Bahr el Ghazal
6.2.2 Rainfall, Land Use and and Central Equatoria – also have relatively high shares of Upper Nile 504.9 178.8 683.7 5.0 6.6 8.9
the national cropland, but they have population densities Jonglei 373.6 262.5 636.1 7.3 3.1 5.3
Population Densities of more than 20 persons per km2. Unity 119.5 48.4 167.9 1.3 3.2 4.5
Warrap 405.4 318.2 723.6 8.9 9.4 16.7
Agriculture is predominantly rainfed with the level of A recent World Bank study finds that areas in South Sudan Northern Bahr Ghazal 247.6 146.5 394.1 4.1 8.4 13.4
annual rainfall rising from north to south and from east that have “high” and “medium” production potential Western Bahr Ghazal 73.1 373.9 447.0 10.4 0.7 4.4
to west. As noted in Chapter 5, it ranges from less than based on the LGP have the highest population density.52 Lakes 248.2 183.0 431.2 5.1 5.7 9.9
500 mm/year in the semi-arid lands of Eastern Equatoria According to Boserup (1965 and 1981), 50 people per Western Equatoria 317.0 977.7 1 294.7 27.3 4.1 16.6
to about 1,800 mm/year in the Green Belt zone. South km2 is a threshold population that indicates the possibility Central Equatoria 313.9 878.4 1 192.3 24.5 7.3 27.6
Sudan experiences unimodal and bimodal rainfall of promoting agricultural intensification.53 Map 6.2 sets
regimes, the bimodal areas covering much of Greater Eastern Equatoria 77.6 219.1 296.7 6.1 1.1 4.1
out the spatial distribution of areas with high, medium
Equatoria (Western, Central and Eastern Equatoria) Total 2 680.8 3 586.5 6 267.3 100.0 4.1 9.7
and low agricultural potential and high, medium and low
while the unimodal areas characterize the rest of the population densities. In South Sudan, there are high to Source: Annex Table 7.1 and estimates by authors. Note: current cropland includes 10% of «grass with crops» and «trees with crops.»
country. Agricultural performance consequently varies medium population densities in areas of high and medium
considerably from place to place and from year to year, agricultural potential: the high agricultural potential An important unresolved practical issue at this juncture is hectare in Egypt where the bulk of the cereals are grown
ranging from the possibility of two harvests per annum in areas have a population density of about 66 persons per the pace at which this land can be developed. The answer under irrigation. These low cereal yields in South Sudan
Greater Equatoria between Tambura and Kejo-Keji, to one km2 while areas with medium agricultural potential have a depends to a considerable extent on the extent to which the stem from a range of problems faced by smallhold farmers.
harvest in the unimodal areas further north. population density of 54 persons per km2. Although these Government, with assistance from the donor community A survey undertaken in 2006 by Ministry of Agriculture
areas presently have low per capita cropland values, they and private investors, address the existing constraints to and Forestry, with support from FAO and the WFP, asked
The length of growing period (LGP) ranges from 280-300 are likely to generate quick wins in terms returns from agricultural expansion in South Sudan.
days per annum in the southern parts of South Sudan new public and private investments leading to expansion
to 130-150 days in the northern parts.51 More than 70% Table 6.3: Cereal Yields (Tons per hectare)
of South Sudan has a LGP longer than 180 days and is,
of cropland and increased agricultural production.
6.3 Key Challenges for the Sector
therefore, suitable for crop production, but as noted With assistance from USAID and World Bank, the
There are a number of major constraints to agricultural Country Average
earlier, only a very small percentage of this area is actually National Government has formulated strategies for
cultivated each year. Classifying the aggregated land use by and rural development in South Sudan, in addition 2005-2009
expansion of the areas under cultivation that takes into
LGP shows that 27% of cropland in South Sudan is located to those discussed in Chapter 1. In order to achieve
account the assessments of the agricultural potential Burundi 1.31
in areas where agricultural potential is high (an LGP more sustained and broad-based economic development, these
in various parts of the country.54 The objective of these Chad 0.78
than 220 days) and another 42% in areas with medium challenges/constraints must be addressed. Infrastructure
assessments is to identify geographic areas in the country DRC 0.78
agricultural potential (an LGP between 180 and 220 days). improvement, provision of public goods and access to
that can have a high payoff in terms of their development Djibouti 1.64
The implication is that there is tremendeous potential to extension and veterinary services will be a crucial aspect
impact. Typically, the criteria used in identifying such Egypt 7.53
of the Government’s strategic response to these challenges.
Notwithstanding the range of crops produced, agricultural Ethiopia 1.49
production in South Sudan remains largely traditional Kenya 1.54
with low yields. In the cereal subsector, for example, it is Malawi 1.58
50 World Bank (2007), Final Proposal for a Multi-Donor Trust Fund Grant to the Government of Southern Sudan for the Support to Agriculture and Forestry Development widely acknowledged that the vast majority of farmers do Rwanda 1.11
Project (SAFDP), Washington DC, August 2007.
51 The length of growing period (LGP), defined as the number of days when both moisture and temperature conditions permit crop growth, is often used as a proxy for an
not use high yielding seeds nor do they use any synthetic South Sudan 0.94
area’s suitability for farming. For example, an area with LGP 120 days per year (a dry or semi-arid area) may allow for no crops or for only one crop per year while an area with fertilizer or herbicide. As Table 6.3 indicates, South Sudan’s Uganda 1.53
a LPG between 180 and 220 days per, (e.g., Green Belt Zone) may have multiple crops grown sequentially within one year.
52 World Bank (2011), “Strategic Choices of Realizing South Sudan’s Agricultural Potential.” World Bank, Washington DC, October 2011. avergage yield is low relative to most other countries in Tanzania 1.19
53 Rural population density varies positively with land productivity but only up to the point where overcrowding leads to land degradation. the region, averaging only 0.97 tonnes per hectare during
54 See World Bank (2011) and USAID (2011), “Achieving Agricultural Growth and Food Security in South Sudan.” Report prepared for USAID by McKinsey & Company, Source: FAO database and Table 6.5.
Discussion document, September 2011. 2005-2009; it is far below the average of 7.64 tons per
farmers what were their primary constraints to improving diseases, shortage of seeds and erratic rainfall were the
crop production. As Figure 6.1 indicates, pests and crop three most important concerns.
MAP 6.2: Spatial Patterns of Agricultural Potential and Population Density
Figure 6.1: Constraints for Crop Cultivation in South Sudan
Pests/crop diseases 21%
Shortage of seeds 18%
Erratic rainfall 17%
Lack of agr. tools 13%
Poor soil fertility 9%
Shortage of labour 8%
Insecurity 6%
Lack of ox plough 5%
Limited access to land 3%
0% 5% 10% 15% 20% 25%
Source WFP-FAO-MAF (2006).
The wide range of challenges that face the sector today can raised for prestige and for dowry payments rather than Lack of agricultural productivity-enhancing technologies. Weak markets and non-existent market information
be conveniently grouped around the following nine sets of for meat, milk, hides and other by-products). The private There is little use of improved varieties of seed or breeds systems. As Chapter 10 indicates, South Sudan has yet to
concerns. sector is nascent and has weak business management skills. of livestock. Crop farmers save their seed for planting in achieve the level of mobile voice and data telecommunication
the next season, and there is little selection for improved that is now commonly available in many rural communities
Weak entrepreneurship base and absence of commercial Weak or non-existent capacity to provide farm and varieties. There is a need for improved varieties that in Africa. In addition, the absence of ICT in rural
farming. Agriculture remains a subsistence activity by off-farm extension services to farmers. A recent joint are resistant to common diseases and which are more communities limits market information generation and
smallholder farmers using simple implements; the average GOSS/FAO baseline survey report on agriculture and productive. The traditional livestock breeds could increase dissemination. This also restricts market size, outreach
farm size is in the range of 0.4-1.7 hectares. Intensive farming animal resources found that weak extension service productivity by upgrading the genetic base, but market and agricultural value chains development. Consequently
with little fertilizer application has progressively lowered support to agricultural and livestock farmers is a major incentives to improve quality are lacking. the economic benefits of modern telecommunication still
yields and depleted soils. There are very few cooperatives concern for farmers throughout South Sudan. The public elude rural communities in South Sudan.
and little commercial farming and/or the adoption of sector extension and veterinary/animal care services Poor and inadequate infrastructure. Lack of developed
modern farming technologies. Farming remains primarily are extremely limited. Inspection services are weak in trunk and feeder roads (and, other types of infrastructure Paucity of microfinance facilities. Formal banking
rain-fed; irrigation farming is still limited. In addition, enforcing standards and lack equipment and training. – railway/rolling stock, electricity and transport systems as services are still extremely limited.9 The Southern Sudan
livestock farming is dominated by culture and tradition There is lack of critical mass in the number of Community well as ICT) inhibit movement of goods and services into Microfinance Facility is a government sponsored private
that lack business orientation (cattle, for instance, are still Animal Health Workers. and out of rural areas, increases the cost of transportation micro-finance umbrella agency that is attempting to foster
and dampen producers’ incentives to generate surplus. micro-finance market development. Presently, only a
The absence of rural and feeder roads and, therefore, few microfinance institutions provide minimal financial
access to domestic, regional and international markets services in some market towns, but there are no financial
is a key bottleneck to increased agricultural production. services for the agricultural sector – for producers or for
Similarly, the near complete absence of rural electrification agribusinesses.
limits the choice of farm implements and the adoption of
modern farming techniques. These concerns are addressed Weak farmer/producer organizations. Years of war and
at some length in the various sectoral chapters in Part B of displacement of population have weakened or destroyed
this Report. whatever farm cooperatives existed before. Some donor
55 Some commercial from banks in Kenya (e.g. Kenya Commercial bank and Equity bank) have opened branches in Juba and a few other towns in Southern Sudan. The
portfolio is still narrow with no lending to the agriculture sector at the moment.
projects have worked with smallholders to organize feasible way to enable broad-based economic growth and
themselves into groups, cooperatives or associations.56 food security in the short- to medium-term. South Sudan Table 6.4: Indicative Plan for Cropland Development (In hectares ‘000)
However, many of the producer members do not farm soils and ecological characteristics make the country
as a business, and decisions are not made based on cost/ suitable for the supply of wide range of agricultural
benefit basis. There is little ability to calculate costs of products. Furthermore, the strategy envisages a South Indicator Estimate Indicative
production and to use market information to determine Sudan that would exploit opportunities to process food 2010 2020 2030
if products will be competitive and profitable in markets. products and raw materials for value addition, job creation
Extremely weak literacy and numeracy skills, particularly and increased earnings. The key drivers in the strategy Harvested area
among women, are constraints to smallholders becoming for expansion of agricultural production are threefold: Cereals 921 1 880 2 800
commercialized. (i) expand substantially the area under cultivation; (ii) Other crops 79 620 1 900
increase yields in areas that are already under cultivation Total 1 000 2 500 4 700
Shortage of farm labor. Even though 90% of the population along with ensuring high productivity on newly farmed Cultivated land under rotation 1 681 1 500 1 570
of South Sudan lives in rural areas, close to 80% of farm lands; and (iii) expand opportunities substantially for Cultivated area 2 681 4 000 6 270
labor is provided by women who combine this activity production of marketable surpluses of livestock and fish Memo items:
with their other domestic chores. Farming is not viewed products. Irrigated area (ha ‘000) 32 400 1 000
favorably (as a befitting profession) by young men and Cultivated as % total land area 4.2 6.2 9.7
women, who often migrate to cities. In addition, farm labor, Harvested as % of cultivated 37.3 62.5 75.0
when available, is expensive and often lacks appropriate 6.4.1 Strategy for Expansion Irrigated area as % total harvested 3.2 16.0 21.3
skills and the incentive to work. The expectation that many
of the South Sudanese returning from Sudan would swell of Cultivated Agriculture Source: Table 2.7.
the ranks of farm works may not materialize in the absence
of incentives for the returnees to settle and farm in rural
in South Sudan
communities. Besides, it is instructive to note that most
There is, of course, a range of possible scenarios for the As discussed below, much more work is needed on the about 6.3 million hectares by 2030 as in Table 6.4 above.
returnees were not farmers previously; most were city
development of very large potential for exp ansion of details of a possible strategy for cropland development In this scenario, the harvested area increases to 4.7 million
dwellers and may, in the absence of incentives, have little
cropland agriculture in South Sudan. For the purposes of for the next one to two decades. Therefore, the scenario ha, or 10% of the land area, with 75% of the total cultivated
inclination to move to rural communities and engage in
this Report, one possible scenario for expansion of cropland presented here is largely indicative at this stage. In this area being harvested annually. About 20% of the harvested
farming activities.
has been considered. The total cultivated area would be scenario the total area of cropland harvested annually area would be irrigated. This level of irrigation in the
increased from 2.7 million ha in 2010 to 4 million ha by would increase from about 1 million hectares at the longer-term would almost certainly raise important issues
Unclear land tenure and demarcation. The concerns about
2020 and based on Table 6.2 above, perhaps 6-7 million present time to 2.5 million hectares by 2020. A large for Nile Basin riparian countries regarding the use of water
land tenure are discussed at length in Chapter 5. Large-
hectares by say 2030 (Table 6.4). These increases in the part of the increase would be accounted for by increased within the Basin.
scale farming requires access to land with unambiguous
cultivated area would come from bringing areas currently cultivation of cereals, initially for the domestic market
rights to profitably develop the land.57 Under the 2009
covered by forest, shrubs and grass under cultivation. to address the ongoing food security problem, but later More work is needed on the proposed strategy for the
Land Act foreigners are not permitted to own land, but
in the decade for export of surpluses to regional markets decade ahead (2011-2020) to determine: (i) the likely cost of
can lease land for a maximum of 99 years; community
A two-pronged approach would be used in the decade as well. The remaining cultivated areas would be used to bringing this additional land under cultivation in particular
lands may be allocated for investment purposes, but
ahead to develop this large potential for crop production: expand substantially the production of high value fruits parts of the country; and (ii) the off-farm costs for roads,
that investment must reflect an important interest for
and vegetables for local and export markets, and other electric power and other infrastructure, and for off-farm
the community and contribute to economic and social
• A larger share of the existing 2.7 million hectares of land cash crops such as sugar, groundnuts and tree crops such storage and processing of products. The discussion below on
development of the local community; and land acquisition
that is cultivated periodically by smallholder farmers as oil palm, tea and coffee. In this indicative scenario, infrastructure requirements for agriculture and the related
of 250 fedans or more (104 hectares) must be approved by
would be brought under continuous cultivation with the cultivated area would increase from 4.2% of the total discussions in other chapters of this Report provide insights
state authorities. Having a uniform national land law and
improved access to markets, lower transport costs that land area at present to about 6.3% by 2020; however, into the off-farm development costs associated with these
transparent ownership rights and obligations will facilitate
reduce the cost of and access to inputs such as fertilizer the cultivated area that is harvested annually would programs. In the case of on-farm costs, these may range
the decision of foreign investment in agriculture in South
and herbicides, use of out-grower models, and so on. increase from about 37% at present to 63% by 2020. This from the equivalent of a few hundred US dollars per hectare
Sudan. In addition, given the predominant role that
expansion in cultivated cropland would be supported with for modest improvements to as much as $3,000 per hectare
women play in farming, the laws must be gender sensitive
• A substantial investment would also be made in a substantial investment in irrigation in the decade ahead. for the water distribution costs of large-scale irrigation
and accord women the right to land ownership.
cultivation of new land by medium- and large-scale The irrigated area would increase from a negligible 32 projects. At an average of $500 per hectare, for example, the
commercial farming operations, many of which thousand ha at present (3% of the harvested area) to 400 on-farm cost of bringing the additional 1.3 million ha of
would operate with out-grower models that would thousand ha by 2020 (equal to 16% of the harvested area). land under cultivation and improving capacities of the areas
6.4 Strategy for Development of allow nearby existing or new smallholder farms to Successful development and implementation of this model already cultivated could be in the range of $1 billion. At an
in the decade ahead would then lay the foundations for average of $1,000 per hectare the on-farm development cost
the Agricultural Potential supply fresh foods and agricultural raw materials for
processing by the commercial operation. (For example, further large expansion of the cultivated area to about 6.3 rises to $2 billion. Most of these on-farm costs would have
sugar cane grown by smallholders, and processed by million hectares by 2030. to be borne by the private sector, either by smallholders or
Developing the country’s agricultural and livestock large-scale commercial investment, much of which would
a central facility operated by a large-scale commercial
potential has been identified in the SSDP as the most Successful development and implementation of this model have to come from offshore investors. The mobilization of
operation.)
in the decade ahead would then lay the foundations for these levels of investment for agriculture represents another
further large expansion of the cultivated area perhaps to major challenge for the decade ahead.
56 FAO through its Sudan Productive Capacity Program and GIZ have been actively helping farmers to form groups and associations.
57 In early 2009 USAID started up a new, 2-year land tenure program, which is helping to develop a new land policy for Southern Sudan.
6.4.2 Choice of Models for the Sudan, which is seeking to transform its rich but barely
exploited agricultural endowments, knowing what model Program (CAADP) provides framework and the Northern Ghana Program the vehicle for national implementation of
Transformation of Agriculture of agricultural development approaches has or has not
worked in other countries is advantageous. Box 6.1
CAADP; (ii) agricultural transformation using pilot schemes in high potential areas and subsequently replicating and
scaling up in other regions (Volta Region and Accra Plains); (iii) holistic and participatory, involving all stakeholders:
summarizes the approaches taken by Ethiopia and Ghana. government, local authorities, resourced smallholder farmers and farmer cooperatives; (iv) scaling up using private
To achieve these objectives, given the small size of the South
While every country is unique, with different ecological sector operatives, national and international; and (v) work with blueprints comprising detailed designs and execution
Sudan market, the strategy must be both domestic and
characteristics and agricultural practices, a key lesson modules, and delivery units.
export-oriented, contributing to food security, facilitating
agriculture-supported domestic industrialization and from the experience of these two countries is that the
Government of South Sudan will need to play an important Key components of the value chain for the Ghana model were as follows: (i) 200 warehouse entrepreneurs to operate
maximizing exports. A high priority would be accorded to
role in fostering agricultural development. as aggregators of smallholders; (ii) 25-35 private sector-led commercial farms using idle arable land- government
scaling up production of high value crops using adaptive
facilitates land aggregation and allocation ensuring social equity; (iii) a nucleus farm/out-grower system for high-value
technology and cost effective means of production. And,
Under the AU/NEPAD CAADP framework, it is the role crops; (iv) a transversal support system that included farm inputs, credit, infrastructure, and off-farm logistics; and (v)
in order to achieve technical efficiency, resource allocation
of government, with assistance from its development a credibly manned delivery unit under the Ministry of Agriculture to drive implementation.
should be rationalized and output maximized. In addition,
binding transport and other trade logistic constraints to partners, to articulate the sector development strategy,
market access must also be addressed. create an enabling policy environment, demonstrate
commitment to promote the attainment of key targets and As has been stated above, only 4% of South Sudan’s Supportive policy environment. A conducive policy
increase public and private investment to levels that will estimated 320,000 km2 or more of arable land is being environment with incentive mechanism for domestic and
Like Ethiopia, Ghana, Kenya, Uganda, Tanzania
result in sustained growth in agriculture of 6% a year.58 An cultivated mainly by smallholder subsistence farmers. The foreign investment in agriculture value chain activities
and Rwanda, South Sudan can enhance agricultural
integral part of an enabling environment is the provision transformation of the agriculture sector will, of course, is a prerequisite for transforming the sector. Hence, the
production and increase productivity by creating a
of basic infrastructure and extension services. These require that more cropland be brought under cultivation; government should strive to enact policies and adopt
conducive policy environment as well as making new
investments would take the form of budget allocations by it will also entail a holistic approach that encompasses regulations that promote and protect equitable private
and sustained investments in agricultural production and
the government, as well incentive-driven private domestic recognition of the role of smallholder farmers and their investment in arable land development, encourage market-
related supporting services including off-farm processing
and foreign direct investment. associations as the nucleus that must be nurtured and driven seed production and distribution system, adopt a
and infrastructure services. For a country such as South
strengthened. Above all, the strategy will be export- national investment codes and actively promote domestic
oriented and driven by foreign direct investors who will and foreign trade in agricultural commodities.
Box 6.1: Models for Promoting Agricultural Growth: Experience of Ethiopia and Ghana undertake the development of modern large scale farms
with capacity to scale up farming as business units as Strategic International Partners in Agriculture. South
Ethiopian Model. Ethiopia is considered a leader in the use of strategic international (foreign) partner to promote
well as train the small scale farmers; the establishment of Sudan’s private sector is still nascent and domestic private
agricultural development. Agriculture is the backbone of the Ethiopian economy, accounting for 85% of employment
holistic farm systems based on rain-fed cropping as well investment in agriculture and livestock is hampered
and nearly 50% of GDP. Since 1991, the Agricultural Development Led Industrialization Program (ADLI) has served
as irrigation systems that can prudently and profitably by traditional practices that lack market orientation.
as the vehicle for promoting agricultural modernization, national growth and poverty reduction. Through ADLI,
harness land and water resources to expand agricultural Successful implementation of the agriculture development
agricultural development has resulted in significant commercialization and entrenchment of value addition in the
production, process and market value chain products in strategy will, necessarily, require the stimulation of local
agricultural sector, expansion of capital base and accumulation of investment and technology. At the federal level,
national, regional and global markets; enhanced market investment in agriculture, which will take time to realize. At
the Agricultural Investment Support Directive (AISD), under the Ministry of Agriculture and Rural Development
access by rural communities to urban centers, regional and this point in time, South Sudan requires robust investment
serves as a central office to facilitate land leases of 5,000 hectares (ha) or larger for investment purposes. AISD is the
global markets; and, transversal provision of extension and of capital in land and technology; this can only be realized
central depository of these plots and expedites the issuance of licenses, permits, and approval of all land leases. At
research services. Rising global demand for agricultural through the attraction of strategic international partners,
the state and local levels, the relevant authorities provide extension services and facilitate access to micro-finance and
products and cereals, in particular, suggests that, if ever individual, institutions and even foreign governments
technical assistance services and training for smallholder farmers and farmer cooperatives. The aim of AISD is to lease
there was an opportune time for a strategic transition to willing to invest in agricultural land development,
three million hectares of land for large-scale commercial farming. Since 2004, the agency has allocated 607,760 ha to
a more efficient farming system in South Sudan, it is now. production of high value crops and the development of
investors (of which 157 projects are over 1,000 ha), realizing total investment commitment of approximately US$ 78.6
associated infrastructure.
million. Foreign direct investors include a German bio fuel project; an investor in a livestock project (leasing 150,000
ha), and a Saudi Arabian government-backed company investing in rice and palm oil projects. 6.4.3 Other Key Elements Infrastructure. Years of war and benign neglect has left
South Sudan with destroyed or neglected transport,
Ghana Model. In 2005 the Government of Ghana launched the Northern Ghana agricultural development program of the Strategy power, water/sanitation, ICT and other infrastructure
aimed at raising agricultural GDP, promoting national food sufficiency and raising smallholder income. The region was
and support facilities. The need to rebuild the country’s
targeted because of its relative high poverty, large agricultural potential due to the existence of abundant uncultivated Leadership and Alignment. To be successful, a lead agency infrastructure is the subject of South Sudan Infrastructure
arable land, good water supply and yet low output yields. The region has agricultural high potential for import must assume overall responsibility for the implementation Action Plan. The implementation of the recommendations
substitution in rice, maize and soy. The key targets of the program are: (i) double the per capita income of 250,000 of the strategy. As noted earlier, responsibility for promoting of the Plan and agriculture transformation strategy will be
farmer per year; (ii) increase cultivated land by 20% by end of program; (iii) achieve 70% food sufficiency in rice; and agricultural and rural development lies with four ministries. key determinants of whether or not the country can transit
increase: agricultural GDP by $500 million/year, earmark $100 million public investment through the program and, Effective implementation of the agricultural development from the present low production low productivity mode to
attract $600 million private (domestic and foreign). The Government, with support from AGRA, mobilized financial strategy will require the establishment of a Joint Board or a virile, diversified modern economic base that is driven by
and technical support from the World Bank, the African Development Bank, bilateral donors and domestic and foreign Steering Committee comprising the four ministries and the a transformed agricultural sector.
private investors. The program aims to upgrade all segments of the agriculture sector value chain by mobilizing private Ministry of Industry and Investment, with the later serving
sector contractors to organize and empower smallholder farmers, produce aggregators and marketing agents. The the Chair of the Steering Committee. Other relevant Delivery mechanisms. This will entail use of market driven
Ghana program is built on five key principles: (i) The AU/NEPAD Comprehensive African Agriculture Development stakeholders must also be co-opted into the Committee. organizations with policy and regulatory support from
58 Other African countries that have managed similar high agricultural growth rates for a decade or more include Morocco and Togo in the 1980s, and Benin, Cameroon,
Malawi and Chad in the 1990s. Burkina Faso and Nigeria also had similar high growth rates during 2000-2005. See World Bank country database at www.WorldBank.org.
government. To this end, the attraction of the right type the ever increasing demand for bio-fuels and rising
of FDI will bring with it efficient delivery structures such demand for animal feed. These demand-pull forces, Table 6.5: Projected Production and Consumption of Cereals in South Sudan
capital investment in off farm infrastructure (collection, aided by erratic weather patterns, have outstripped
processing and storage systems) and out-grower farmer impressive global technological advances, resulting in
organizations that ensures that smallholder farmers are ever increasing food prices for rich and poor countries
Indicator Estimates Projected Growth (% p.a)
integrated into the production and delivery mechanisms. alike. With its agricultural potential, the country should
2010 2011 2012 2013 2014 2015 2020 2011-20
be able to beneficially fill some of the huge global cereal
supply gap. Production
6.4.4 Expansion of Crop Production Total available cultivated area (‘000 ha) 2 681 2 694 2 746 2 754 2 835 2 991 4 000 4.1
Net production of cereal (i.e. less post harvest loss of Cereal area harvested (‘000 ha) 921 500 939 986 1 060 1 166 1 880 7.4
Current status of crop production. As noted earlier, a wide 20%) stood at approximately 695 thousand tons while Cereal area as % total cultivated 34 19 34 36 37 39 47
range of food and cash crops is grown in South Sudan consumption was about 885 thousand tons, resulting in Production (‘000 tons)
depending on the agro-econological zone. The Green Belt the importation of about 200 thousand tons (see Table Gross
zone with the highest level of annual rainfall is the area 6.5). Not only does the shortfall constitute a serious Net 695 475 916 971 1 060 1 225 2 444 13.4
with high potential for sustained crop production. The food security challenge, but it also raises the risk of
Imports/Exports (‘000 tons) (190) (480) (250) (307) (330) (277) 614
crops include casava, sorghum, groundnuts, sesame, maize, eroding external and fiscal balances, increasing food aid
finger millet, cow peas, beans, pigeon peas, vegetables Consumption
dependency and impeding development of the sector.
(onions, okra, tomatoes, cabbage, egg plant, cucumber Cereal consumption (‘000 tons) 885 955 1 165 1 278 1 391 1 501 1 830 7.6
Against this backdrop, the Ministry of Commerce, Industry
and pumkins). Rice production was expanded under the and Investment, in collaboration with the Ministry of Memo items:
Awei Rice Scheme which collapsed during the war. At Agriculture and Forestry, proposed the following targets Net yield (tons/ha) 0.75 0.95 0.98 0.99 1.00 1.05 1.30 3.2
the present time some rice production is continuing by for the development of the cereals sub-sector by 2016: (i) Per capita cereal consumption (kg) 93 95 110 115 120 125 130 3.4
farmers who adopted rice production outside the scheme. increase the volume of cereals produced to 1 million tons; Population (‘000) 9 494 10 048 10 594 11 116 11 589 12 012 14 079 4.0
Coffee is also grown commercially and, there are a handful (ii) increase yields for cereals from 0.97 tons per hectare
of tobacco farmers. Fruit trees include banana, plantain, to 1.1 tons per hectare; (iii) increase the volume of cereal Source: Estimates by authors.
pineapple, mangoes and citrus. Other crops include sweet exports from the current level of 148 thousand tons to 1.5
potatoes, yams, and papayas which are grown for home million tons; and (iv) mobilize $350 million of FDI for Strategy for production of high value fruits and vegetables. with Kenya, Uganda and Tanzania accounting for a sizeable
consumption and sale in local markets. The proposed commercial production of cereals for the domestic and With its rich soil and favorable climate, several parts of share of this trade.
strategy would aim to encourage expansion in most of international markets. South Sudan have enormous potential for competitive
these activities, subject to access to profitable marketing
production of high value fruits and vegetable for the With its vast unexploited arable land and a favorable
opportunities. As noted earlier, production of cereals (and other crops) domestic and external markets. South Sudan smallholder climate, South Sudan has high potential to prosper from
in South Sudan can be expanded by (i) increasing the farmers cultivate pineapples, mangoes, onions, tomatoes participation in the global market for fruits and vegetables
Strategy for cereals production. The sub-sector is critical area of cropped land; and (ii) raising productivity, that is, and yams. At the present time, the contribution of these provided it is able to create the necessary transport logistics
to the prosperity of South Sudan, given its importance in increasing the amount of production per unit area. The fruits and vegetables to agricultural output is negligible; and associated cold chains and adopt a market-oriented
the livelihood of a vast majority of the population. The need scenario outlined in Table 6.4 above is elaborated on in production has fallen dramatically and so has the export system for commercial production. A successful transition
to revamp the sector and significantly increase production Table 6.5 below, which incorporates both of these strategies. values of these products. Furthermore, the industry has from subsistence to a commercial model in these products
is compelling for the following reasons: This Report proposes a doubling of the harvested area of only minimal commercial orientation. In general, due to would yield high returns for the country. However, having
cereals in the decade ahead to about 1.88 million hectares infrastructure constraints producers have limited access fertile soil and good climate are necessary, but not sufficient
• At the domestic level, South Sudan has the potential to and through improved farm productivity and reduction in to consumers beyond their local markets. As a result, conditions for competitive entry into regional or global
be both self-sufficient and to become a major exporter the current high level of post harvest losses, raise yields decisions about area to be cultivated are often made on the markets for fruits and vegetables. Fruits and vegetables are
of cereals. The main constraints to realizing this from the current average of about 0.94 tons per hectare to basis of own household consumption needs, not market highly perishable and subject to high post-harvest losses
potential are largely internal and therefore, within the 1.3 tons per hectare by 2020. These strategies, if successfully demand. Any surplus produced is usually sold or bartered if not preserved under ideal temperature conditions. As a
control of the policy makers: marginal use of available implemented, would increase cereal production (net of for other goods in the local market. At the present time, result, competiveness in the sector is determined by the
arable land, low and declining productivity due to poor post harvest losses) from about 700,000 tons in 2010 to 2.4 the country is a net importer of these products, primarily availability of adequate logistics, including cold chains,
farming methods, high marketing margins caused by million tons by 2020. Assuming a steady increase in cereal from Kenya and Uganda, notwithstanding South Sudan’s to move products to markets. Furthermore, a sustainable
poor infrastructure, and, proliferation of taxes. The consumption per capita with improved supply conditions potential for producing high value fruits and vegetables, entry into the terminal market, mostly in Europe, Asia and
removal of these constraints is not only feasible and and livelihoods from about 100 kg per person at the rising global prices for these items and an unmet regional the Middle East, requires fast, dependable and adequate
within reach but will be transformative and beneficial present time to 130 kg per person by the latter part of the demand. transport arrangements that can move the products
to the country; decade, South Sudan would meet domestic consumption to the markets consistently and on a timely basis. Ever
requirements by 2016-2017 and then have an exportable Driven by globalization, technology and logistics, the more demanding customers in these terminal markets
• The opportunity cost of not developing the sector is surplus of cereals in the range of 600,000 tons a year by market for high value fruits and vegetables has become require products that arrive consistently on time and are
huge. Cereals, encompassing wheat, maize, sorghum 2020. At recent international prices of about $300 per ton global. Currently, trade in horticulture accounts for more of the highest quality. In order to meet these conditions,
and rice, among other grains, is a US$80 billion a for maize and wheat, the value of cereal production would than a fifth of global trade in agricultural commodities. it has become necessary for many fruits and vegetable
year global industry and the average prices have risen increase from about $200 million in 2010 to about $700 The value of horticulture exports has risen from $ 82.5 suppliers to own or control the entire value chain from
steadily in recent years due to increasing demand from million a year by 2020, with an exportable surplus of a little billion in 2005 to over $ 122 billion in 2010.59 Horticulture production through marketing as this allows the supplier
larger and more affluent societies, particularly China, under $200 million a year at that time. exports of Sub-Saharan Africa now exceed $2.3 billion, to control the logistics without having to rely on third
59 UNCTAD Trade Statistics, 2010.
parties. Consequently, the industry is characterized by the A three-pronged strategy has therefore been formulated
dominance of large commercial firms with the capability for expansion of production of high value fruits and
and capacity to move products through the entire value vegetables in South Sudan:
MAP 6.3: Locations for Potential Commercial Investment in South Sudan
chain, supplying high quality products to end markets
consistently and on a timely basis. • Identification and attraction of the right kind of
strategic foreign direct investment;
In 2011, the Ministry of Commerce and Investment
proposed the following key objectives for the industry: (i) • Establishment and support of farmer cooperatives that
increase exports from current levels of about $800,000 a can be linked to larger commercial farms; and
year to $10 million a year by 2016; and (ii) attract FDI of
$100 million to spearhead the development of the industry. • Linking these commercial farms to regional and
international transport and logistics networks.
Box 6.2: Expanding Horticulture Production: a Kenyan Example Company Profile:

Homegrown Company Ltd.
Homegrown is the largest vegetable exporter in Kenya. It is a success story of packaged horticulture produce. The
company ventured into Kenya in 1982 and focused on processing and exporting vegetables to the United Kingdom.
The firm’s strategy has been the production and packaging of produce at the source for export directly to market
without further packaging abroad. The firm operates its own nucleus of farm production units to meet a given level of
demand, plus a network of farmers contracted to provide the balance. It is an out-grower model.
In order to ensure quality, and supply of fresh produce, Homegrown enters into partnership with local farmers to
complement its own production. Through this partnership, the company is able to source about 25 % of total requirements
and in some cases, such as French Beans, 100 % of the total requirement from independent farmers (as opposed to
employees farming company land). Farmers are supplied with the latest farming technology, such as crop varieties and
husbandry techniques. The provision of technical extension by the contractor has played a key role in ensuring that
farmers are able to optimize production in both quality and quantity. Homegrown also supplies fertilizers, and agro-
chemicals on credit to those farmers who need it, as many small farmers still find it difficult to obtain credit despite the The MAF has recently outlined a more detailed program provide the logistics at a level that ensures economies
importance of the sector. Kenya’s financial market remains somewhat biased against agricultural production. for private investment in high value fruits and vegetables scale in operations; (ii) meet the demand preferences of
(as well as for cereals and tree crops such as oil palm, tea supermarkets who prefer to deal with a small, but well
All farmers supplying to Homegrown must have a supply contract. The contract stipulates the specific commodity, and coffee). Map 6.3 highlights the locations where these organized and integrated suppliers; and (iii) adhere to
the supply period, the desired quality and quantity, and the price. The system implies that farmers manage production investment opportunities may be pursued.60 the stringent quality assurance (phytosanitary standards)
schedules and the necessary inputs to meet the contracts. Farmers also agree to follow recommended crop husbandry requirements of importing the countries.
practices to maintain required quality. Contracts allow Homegrown an assurance of production. The major constraint The foregoing strategy is informed by the characteristics
faced by the company is ensuring that farmers follow technical instructions so as to produce the required quality and of the market as well as lessons drawn from the experience The Kenyan model for development of a high value fruits
quantity standards. This is especially important for those commodities in which the company is entirely supplied by of Kenya and other Sub-Saharan countries. Kenya is and vegetables market is built on the following seven key
contracted farmers. The EU market has exceptionally stringent standards for agricultural products; so there is very a successful exporter of fruits and vegetables, and is elements.
little room for error. presently the leading all-season supplier of high quality
horticultural products to brand name supermarket chains • Policy of openness to FDI: The government has
There are both benefits and constraints to Homegrown out-grower model. Farmers enjoy the benefits of an assured in the EU and several other countries in Europe. The sector enacted laws and adopted legal frameworks such as
market for their produce, and an assured price for various grades of produce. Homegrown can assure farmers of a has had phenomenal growth rates averaging over 15% a the abolition of export and import taxes, allowing
market for their produce because of its extensive knowledge of, and connection with, global buyers. Homegrown will year with consistently rising annual sales, which reached residents to open foreign currency denominated
also look after the logistics of the sale. The “just in time” nature of the business makes this a critical activity. However, $330 million in 2010.61 As of June 2011, as many as 22,000 accounts and liberalizing borrowing regulations for
Homegrown requires strict adherence to delivery schedules, agreed quantities and quality standards. The contract smallholder Kenyan farmers were engaged in export- domestic and foreign companies. In response to these
terms can be very demanding with little flexibility. Furthermore, farmers sometimes feel that the market price offered oriented horticulture, with over 17,000 persons employed incentives, new investments have been attracted from
by the company is low compared to the prices for the final product, a tension that needs careful management to ensure by firms across the horticulture value chain. The industry India, China, United Kingdom, Italy and Germany.
all parties feel fairly treated. has made a transition from the dominance of an amalgam Due to its openness, Kenya, as a member of the East
of smaller farmer/local exporter selling their produce to African Community and COMESA, now serves as the
independent importers in Europe to a fully integrated business hub for investors in Eastern Africa.
sector controlled by a few large farms controlling the
value chain and selling directly to large supermarkets • Upgrade of human capital: Kenya has moved from
in the importing countries. These firms are able to: (i) low cost labor force to one with critical mass in the
60 See Hon. Betty Achan Ogwaro, Minister of Agriculture, “South Sudan: The World’s Newest Investment Destination.” Presentation to the AgriBusiness Forum, Johannes-
burg, South Africa, 19th October 2011.
61 USAID DIA report, 2011
number of workers with skills and technical expertise, product upgrading through packaging and processing Livestock is an important economic asset, in addition to and Kenya and through the Port Sudan to Saudi Arabia
capable of meeting the human resource needs of the such as canning, drying and freezing. having a huge cultural value. Ownership of cattle is also a and other regional markets. Paradoxically, South Sudan
firms in the sector. Investors point to a competent and risk mitigation tool for pastoralists and farmers, the latter currently imports meat from Uganda in spite of having the
motivated and productive labor force, • Expand extension services and encourage private sector continually facing uncertainty caused by crop failure. Data largest number of livestock per capita in Africa.
and civil society organizations: Kenya farms enjoy a from the Ministry of Animal Resources and Fisheries as
• Build key infrastructures: Kenya has a good network of high level of extension services from the Ministry well as the Food and Agricultural Organization (FAO) Major challenges facing the livestock industry. Perhaps, the
roads (trunk and feeder) that leads to ports (Mombasa) of Agriculture and Rural Development and Kenya indicate that about 85% of South Sudanese households single most important challenge to the transformation of
and Jomo Kenyatta International airport with modern Export Development Support (KEDS) and Kenya own one or more animal. This suggests that South Sudan the industry is social model, which circumscribes market
cold storage and freight handling facilities. Kenya’s External Trade Authority, which is responsible for the has approximately 1.1 million livestock farmers. orientation and limts value chain exploitation. Currently,
export processing zones (EPZ) boast of good supply overall policy direction. The government also provides livestock in South Sudan is not viewed as an industry as
water, electricity and ICT. support to the Kenya Agricultural Research Institute Even though livestock is ubiquitous across South Sudan, much as it is a deeply rooted cultural phenomenon that
(KARI), the Fresh Produce Exporters Association of from the southern equatorial forests to the arid and represents the very fabric of South Sudanese society. The
• Decrease investment risk: Although Kenya is still Kenya among others. savannah north, the commercial value of livestock remains livestock ownership is not measured by the market value
experiencing high level of corruption, there have negligible. The estimated value of livestock production of the animals; instead, it represents a status symbol that
been improvements as reflected in Kenya’s ranking and products suggest that the income generated currently commands respect of the community and provides the
in the World Bank Doing Business Index. Kenya 6.4.5 Development of the stands at about SDG 1.4 billion annually, equivalent to owner with a source of nutrition and the ability to settle
laws recognize and protect property rights and the only 20% of the sector’s potential. Market value is limited marriage dowry. Occasionally, cattle owners sell some
enforcement of contracts. Furthermore, the level of Livestock Industry to the sale of red meat, mostly within the immediate local stock, usually from his/her very old (oxen) stock to
communal violence has decreased in the aftermath of rural market and adjacent urban centers, particularly Juba, generate supplementary income. Consequently, only a
the 2007 election crises. Current status of the industry. Livestock production Yei and Malakal; some livestock is also sold to Sudan. small fraction of the commercial value is currently being
represents a significant proportion of agricultural activity Several years back South Sudan exported cattle to Uganda realized.
• Create business friendly institutions and support in South Sudan. The main populations of livestock are
industry: In order to diversify its economic base Kenya cattle, goats, sheep and poultry: the main products are
created the Industrial and Commercial Development meat, dairy products, hides and skin and eggs. Livestock
Corporation (ICDC) and the Development Finance production, especially cattle, is undertaken in the more
Company of Kenya (DFCK). Both organizations arid and semi-arid zones such as East Equatoria. Livestock Figure 6.2: Constraints to Livestock Production in South Sudan
provide loan and equity financing. Furthermore, while systems are either normadic pastoralist or mixed crop-
providing facilitating leadership, the government has livestock systems and are a major source of livelihoods,
allowed firms to operate without undue government especially in the floodplains and the semi-arid pastoral Lack of vet. Services 31%
intervention or bureaucracy. areas. Table 6.6 shows the estimated livestock population
by state. According to these estimates there are almost 12 Insecurity 18%
• Improve on natural resources: Although Kenyan million cattle, 14 million goats and 13 million sheep in the
horticulture firms engage in crop production, they country. This population is equivalent to about 2.6 animals Lack of water 15%
have engaged in value adding production system and per hectare of grassland in South Sudan as a whole and
product transformation such as increase fertilizer use, 1 animal per hectare of grassland and savannah. These Lack of pasture 15%
all season cropping through irrigation farming, and population densities per hectare are relatively high.
Lack of labour 8%
Lack of shelter/space 6%
Table 6.6: State Distribution of Livestock in South Sudan (In thousands)
Lack to access to markets 5%
State Cattle Goats Sheep Total
Number Share (%) Other 2%
Upper Nile 990 651 447 2 088 5.4 0% 5% 10% 15% 20% 25% 30% 35%
Unity 1 189 1 511 1 784 4 484 11.7
Jonglei 1 475 1 423 1 227 4 126 10.7 Source: WFP-FAO-MAF 2006
Northern Bahr el Ghazal 1 590 1 306 1 658 4 554 11.9
Western Bahr el Ghazal 1 256 1 184 1 139 3 579 9.3
Lakes 1 320 1 252 1 489 4 061 10.6 The prevailing social model is not only a hindrance domestic and external demand for livestock and livestock
to growth and poverty reduction in the country, but products highlight the urgency to transform the current
Warrap 1 539 3 131 1 392 6 061 15.8
represents a significant opportunity cost, in terms of lost social model into one with a commercial orientation.
Central Equatoria 883 1 286 1 173 3 342 8.7 growth and income. It is also a risk to food security and Furthermore, as the livestock population increases,
Eastern Equatoria 895 1 042 1 152 3 088 8.0 sustainable development of the country’s natural resources. there will be more pressures on grazing land and water
Western Equatoria 680 1 189 1 152 3 020 7.9 Projections of South Sudan population growth and resources, heightening the prospects of more conflicts
Total 11 816 13 974 12 612 38 402 100.0
Source: FAO, South Sudan, 2010.
among pastoralist and between pastoralists and farmers on transactions. In the livestock sector, the absence of Strategy for expansion of the livestock industry. The o Establishes and disseminates information
as they compete for limited fodder and water resources. trusts can hinder the formation of farmer cooperatives livestock industry in the country has a very substantial on structures to help farmers, including for
Transforming and commercializing the sector is, therefore, and the establishment of partnership in value chain potential to emerge as a major food product industry in example, extension services and transport
an urgent necessity. Achieving this transformation will exploitation. the decade ahead. The Government has identified the logistics.
require, in addition to a mindset change, the alleviation of industry as a principal axis for making agriculture the
other constraints facing the sector. • Poor breeds. The prevalence of domestic genotype engine of growth and poverty reduction in the country. • Creating a market-driven commercial platform. This
livestock breeds limits the productivity and yield of the Under the medium-term industrial strategy (2011-2016) will entail establishment of several primary markets
The above-mentioned 2006 survey undertaken with the sector. Almost all livestock in South Sudan comprises outlined by the Ministry of Commerce, Industry and for the sale of animals, the exchange of information
support of FAO and WFP identified a number of concerns of the Toposa and Ingessana indigenous breeds, which Investment in 2011 the key objectives for the livestock between farmers, traders, agents and slaughterhouses.
among livestock producers, the most important of which have not been upgraded for many generations. sector are: (i) increase domestic sales of red meat from The objective here is to bring market players together
was the lack of veterinary services. As Figure 6.2 indicates, the current level of about $200 million to $250 million a in an integrated system to improve the value chain for
31% of producers cited lack of these services as their main • Poor animal health. The prevalence of animal diseases year by 2015; (ii) expand the number of primary markets meat production. The system should be built around
concern. limits the market value of livestock and represents a for livestock from 117 at present to 380 by 2015; and (iii) the existing commercial trading market centers,
binding constraint on exports of South Sudan livestock. develop an export market for red meat, with sales of $50 including industry working groups in Greater Kapoeta
Even though changing from the social model is the Rampant existence of tse-tse fly and recurrent million a year by 2015. region in Eastern Equatoria, Nyrol and Pibor Counties
paramount obstacle to transforming South Sudan’s outbreaks of Rift Valley Fever effectively quarantine in Jonglei, Nasir, Baliet and Renk in Upper Nile;
livestock sector into a commercial orientation, several livestock to local markets. Low availability and access As with programs for cereals production, South Sudan Panyinjar, Mayon and Leer in Unity; and Terekeka in
other constraints must be addressed if the sector objective to adequately qualified animal health service providers can draw on the experience of Ethiopia for the design Central Equatoria. With support from the Ministry of
is to be realized. Looming among these other constraints and poor animal husbandry practices among farmers of its livestock program (see Box 6.3 above). However, Animal Resources and Fisheries, the working groups
are the following: lead to low births and high mortality rates for both the design of the program must also address the unique should include all segments of the meat production
young and mature herds, resulting in low yields constraints facing the sector in South Sudan, particularly value chain, including operators of slaughter houses,
• Weak off-farm infrastructure. In addition to generalized with respect to the imperative for a paradigm shift from the traders and market agents. The Chamber of Commerce
paucity of basic infrastructure such as roads (trunk and • Inadequacy of animal feeds. South Sudan livestock social to a market mindset model. A three-tier approach could play a key role in facilitating the working group.
rural/feeder), South Sudan suffers from inadequacy of suffer productivity losses due to poor animal nutrition is proposed for attaining the objective: (i) changing mind- Such a market-driven system will value and price
livestock markets where farmers trade their livestock. doe to poor or inadequate grazing practices, poor set using a versatile and context relevant information animals according to their potential for high meat and
Given the size of the country and the dispersion of pasture and water management and lack of supplement communications campaign; (ii) the creation of a market- hides quality, sending a tacit message to farmers about
farmers over a wide area, there is need to create several in animal diet. based platform; and (iii) with government support, the value that the market places on the intrinsic quality
more markets with the necessary facilities. creation of a private sector driven value chain system that animals.
• Nascent private sector and low level of entrepreneurship. focuses on production.
• Insecurity and cattle rustling. Even though the war with The private sector in South Sudan is under developed • Creating a sustainable value chain, emphasizing
Sudan has formally ended, South Sudan is still faced and lack entrepreneurship, stifling the formation and • Launching a national campaign to change mind- production of high quality livestock. The low quality of
with pockets of internal insecurity from ethnic conflicts management of agric-business in general and livestock sets in local communities. Changing to market and breeds, poor animal health practices and low quality of
and the existence of factional militia. In addition, operations, in particular. commercially oriented mindset is the single most animal product safeguards constitute the main technical
cattle raids are still pervasive. Both factors combine to important factor for the development of the country’s challenge because of the impact they exert throughout
impede trade and limit investment, circumscribing the • Challenging economic policy environment. Several livestock sector. Unlocking the enormous commercial the value chain. In addition, the government should
development of the livestock sector. policy factors inhibit growth of the livestock sector. potential of the industry will entail a transformational rein in cattle rustling and improve infrastructure
These include: (i) inadequate and high cost of labor; cultural change from the current social model of logistics. A key imperative for creating a strong value
• Lack of trust. Inter-communal strife and low level of (ii) high transportation costs; (iii) unclear land tenure; acquisition and conservation to a commercial market chain hinges on the production of high quality market-
trust among South Sudanese constitute a hidden tax and (iv) high and multiple taxation. model that monetizes stock through market-based bound animals. Hence emphasis should be placed on:
transactions. It will entail the use of a detailed focus
group that does the following: o The enactment of policies and regulatory
Box 6.3: Insights from the Development of the Livestock Industry in Ethiopia initiatives to raise the quality of cattle and meat.
o Identifies the target audience which is all This will entail the adoption of international
In 2006 Ethiopia had close to 45 million head of cattle, which is continuing to expand rapidly in number. Ethiopia is
citizens, particularly livestock farmers. SPS standards.
currently the largest livestock exporter in the Eastern Africa representing about 10% of the country’s export earnings,
which amounted to US$165 million in 2007 with strong showing in live animal sales, meat and hides and skin exports.
o Conveys a clear message that development of o Improvement of animal husbandry, including
Export destinations are diversified and include regional markets, Kenya, Somalia, Egypt and Sudan and global
a commercial livestock industry will enhance technical assistance through the provision
destination, primarily: Saudi Arabia, UAE for live animals and meat and, UK and China for hides and skin.
economic welfare. of a critical mass of experts who are paired
o Identifies change agents. These will include with community animal health workers, and
Ethiopia’s exports are driven by small-scale pastoralists and livestock cooperatives that work closely with private sector
commercially oriented farmers, key government extension service officers that cover all aspects
value chain operators – all with a strong trading mindset; the country has very few large-scale livestock farmers. The
advocates, committed community leaders, of animal husbandry – from training of
government has played a support role in the industry, including: (i) enforcement of animal health and product quality
logistic providers, and niche markets that can farmers to ensure proper feeding and breeding
standards, deregulation of domestic prices, liberalizing foreign trade; providing institutional support for the export
benefit livestock producers. of animals to the establishment of modern
sector; (ii) promoting a liberal investment climate; and (iii) with the support of state governments, providing access to
slaughter houses and cold storage.
grazing pastures. With support from the central and state government, support institutions have been created such as
o Highlights successful cross-border livestock
high quality SPS labs, an extensive research and development platform that includes several veterinary faculties, and
examples, including Ethiopia, Kenya and o An overt effort to produce high quality animals.
colleges for the training of farmers, health workers and service providers.
Uganda. Government could initiate a time-bound price
subsidy program with a minimum price offer does not migrate but becomes more fully integrated into Forestry. South Sudan has diverse natural forests • A network of market access roads: trunk roads as well
for animals that meet international quality farming operations that combine cultivation and sale of and woodlands, making it one of the richest areas of as rural/feeder roads.
standards. This may entail entering into sales animals for meat production and into the development of concentrations of biodiversity in Africa. It is estimated
contracts with guaranteed prices. The subsidy grazing reserves that combine forest reserve management that natural forests and woodlands of South Sudan cover • Off-farm storage and processing facilities.
should be phased out as soon as market agents with livestock farming, or integration of livestock farming a total area of about 207,422 km2 or about 33% of the total
are entrenched and equipped to handle grade with tree crop agriculture, including for example, oil land area. These moist forests contain valuable commercial • Cold chain facilities, including cold storage at airports
classification and pricing animals based on palm, cashews, coffee, citrus and mango. In addition to products, including cabinet grade timber trees such as and other locations throughout the country.
quality. forage found under these plantation crops, products from mahogany, ebony and teak, among others. In addition to
the tree crops can also be used to increase feed supply for the direct benefits in the form of income, food and fodder • Reliable supplies of electricity and water
o Create quality and reliable infrastructure to livestock.62 for wildlife and domesticated animals, the forests provide
enhance timely market access of farmers. many vital indirect benefits in forms of environmental • Airfreight processing stations key airports that can
The access should include both backbone protection (shade, wind belts), improved agricultural operate 24 hours a day.
infrastructure and feeder roads that reduce 6.4.6 Fisheries and Forestry production (from increased soil fertility through mulching
transport costs and ensure timely arrival of and nitrogen fixation) and food (Shea butter and wild • Reliable and economically affordable road and air
products to the market as well as cold storage Development fruits and fodder for wildlife). As Table 6.7 indicates, forest freight to the main consumer centers in the region and
and other facilities. reserves account for only 3% of the total forested area of overseas.
Fishery development. According to a 2010 baseline survey the country and commercial plantations are negligible
o Launch a robust survey of regional and report on agriculture and animal resources in South Sudan, accounting for about 0.1% of the total forested area. • Access to low cost communications networks.
international markets to determine demand about 14% of households in South Sudan, particularly those
requirements and develop an action plan to in the Sudd area along the River Nile and its tributaries, The main challenges to the existing natural forests and • Adequate supplies of skilled labor.
meet the needs of these markets. Given the engage in fishery as a means of livelihood.63 Detailed woodlands in Southern Sudan include: forest base
limited size of the domestic market, a central statistical data for the industry does not exist because degradation from wild fires; overgrazing and over cutting Some of these facilities would be provided by the national
thrust of the marketing strategy will entail the no field assessments have been undertaken; however, of trees during successive wars. According to a MAF- or state governments and some by the private sector. As the
development of external niche demand markets the fisheries production potential is believed to be in the GOSS 2006 report, the productivity of South Sudan natural discussion in the next Section indicates, where appropriate
mimicking relevant elements of the Ethiopian rage of 100,000 to 300,000 metric tons per year. This is forests and woodlands is low and declining due to shallow the latter should be integral parts of the proposed SIAP
market diversification model. based on combined water surface area of 90,000 square soils found in many areas and intermittent droughts, agreements with potential investors.
kilometers of the River Nile. According to an FAO (2008) which limit tree growth. The absence of a strong forestry
For the purpose of estimating the water requirements of report, aquaculture development may have vast potential management, policy and regulations, has also contributed Transport requirements for agricultural development.
the livestock industry for the water demand analysis in in the Central, Eastern and Western Equatoria states, in to degradation and inefficiency in forestry development The transport requirements of the country and proposed
the Northern and Western Bahr El Gazal states, as well as
Chapter 5, Annex Table 6.4 assumes that the livestock and exploitation. action plan for addressing these requirements is discussed
population will grow at 3% a year in the decade ahead, in Warrap state. In addition to river and lake fishing, there at some length in Chapter 7. In sum, the current road
with the total population of cattle, sheep and goats is significant potential for fish farming in South Sudan that network is fragmented with many roads unusable during
exceeding 50 million by 2020. It is by no means certain remains to be exploited. 6.4.7 Infrastructure Requirements the rainy season. Transport typically entails long travel
that the livestock population will grow in this manner, time and high prices. These shortcomings impede access
but if it did, livestock densities in South Sudan would The main constraints to fisheries development in South for Agriculture to rural and agricultural production areas, leaving them
rise in the decade ahead, also driven in part by the Sudan are the absence of policy incentives, lack of storage isolated from markets for more than half of the year. There
proposed expansion in cultivated areas. These potential facilities due to weak or total absence of power supply The availability of arable land and favorable climate is is substantial evidence that investments in roads and
land pressures will require close attention to the manner and the absence of effective processing technologies. In a necessary, but not sufficient condition for successful improved road connectivity positively affect agricultural
in which the commercial livestock industry is developed. addition, inadequate transport infrastructure which limits development of the sector. A critical requirement is productivity and output. Experience from other countries
With a major expansion in commercial farming, it may be producers access to markets, is a deterent to fisheries the availability of logistics, including key off-farm in Sub-Saharan countries indicates that a relatively low level
that an increasing large share of the livestock population development in South Sudan. infrastructure, to facilitate timely and cost-effective of road infrastructure and long average travel times result
movement of products to domestic and international in high transaction costs for sales of agricultural inputs
markets. The required infrastructure includes, for and output that, in turn, limits agricultural productivity
Table 6.7: Forest Land in South Sudan (Hectares ‘000) example, trunk and feeder roads, airports with regular and growth.64 However, remoteness and demand
fights to market destinations, cold chain facilities that constraints may not be the only factor limiting production.
include cold storage at airports and other destinations, Improved roads will not reduce transport and marketing
Land use category Area Share (% of total) reliable road transport services at competitive freight rates, costs significantly in the short-term if transport and trade
prompt customs clearance for exports and key agricultural services are not competitive or volumes of marketed
Forest reserves 640 3.1 inputs that must be imported,. To compete effectively in products are small. Similarly, production increases may
Forest plantations 23 0.1 regional and international markets and against imports not be forthcoming in the absence of availability of credit,
Other forested areas 20 079 96.8 of agricultural products from neighboring countries, and land tenure arrangements that encourage investment and
Total 20 742 100.0 attract the large amounts of FDI that will be required, government policies that increase risk.
South Sudan must have the ability to facilitate the provision
Source: Table 6.1 and government sources. of essential off-farm infrastructure. The key requirements The Government is keenly aware of the poor state of the
include the following: road network and of the fact that lack of rural connectivity
62 The integration of livestock into tree crop farming has been studied in some detail in Asia and the Americas, for example, but there has been very little done on these pos-
sibilities in Africa. See, for example, FAO, “Integrating Crops and Livestock in West Africa.” Chapter IV. FAO Corporate document Repository. www.fao.org/DOCREP/004/
X6543E/X6543E04.htm. 64 See Dorosh, Paul et al. (2009), Crop Production and Road Connectivity in Sub-Saharan Africa: A Spatial Analysis. Africa Infrastructure Country Diagnostic, World
63 The Joint Baseline Survey Report of the Agriculture and Animal Resources in South Sudan by GOSS/FAO with financial assistance for the European Union. A table sum- Bank, Washington DC, Working Paper 19, February 2009; and Doroash, Paul et al. (2012), “Road Connectivity, Population, and Crop Production in Sub-Saharan Africa.”
marizing the key agriculture baseline survey indicators as attached as Annex 1. Agricultural Economics 43 (2012), pp.89-103.
(trunk and feeder roads) is the binding constraint to population living within two km of an all-season
agricultural transformation and growth in South Sudan. passable road. Table 6.9: Length of Road Required for Rural Connectivity Target (In kilometers)
It is the inability to connect rural communities to urban,
regional and global markets that severely constrains • Market Accessibility: An approach used by the Road category Required all- Total Required as
economic growth and poverty reduction, particularly in African Infrastructure Country Diagnostic studies season roads roads % of total
the rural areas. (2009) focuses on market accessibility of agricultural
production zones. Interstate primary roads 2 697 2 697 100.0
Rural connectivity measures the access to means of Other primary roads 2 764 4 476 61.8
transport, particularly roads by rural communities. Rural • High Population-High Agriculture Potential Measure: Secondary roads 3 695 6 285 58.8
connectivity is measured in the following conceptual Advocated by the World Bank in its recent report Tertiary roads 2 303 2 303 100.0
ways: on the agricultural sector of South Sudan, this is a Total 11 459 15 761 72.7
composite measure of accessibility to the road network
• Rural Accessibility Index (RAI): A social-oriented by areas with both high population density and high Source: World Bank (2011)
measure that is computed as the share of the rural agricultural potential.
To provide this level of access to an all-season network of put forward in this Report to improve road connectivity
roads, about 11,460 km of existing roads would need to in the decade ahead calls for the upgrade of 14,560 km of
Table 6.8: Distribution of Road Network by Zones of Agricultural Potential (kilometers) be converted to all-weather status, either as paved roads road to paved and all-weather status, including a notional
or all-weather gravel roads. This includes the above- allocation for 2,180 km of tertiary roads pending the
Agricultural Interstate Other Secondary Tertiary Total mentioned 10,220 km of roads in the zones with high results of the ongoing inventory of the road network that
potential and the balance of 1,240 km of the interstate will determine the actual length of the tertiary network in
potential zone roads primary roads roads roads
road network. Such a program would convert about 73% place today.
HH 389 1 249 1 004 887 3 529 of the existing road network in South Sudan to all-weather
HL 485 641 1 570 1 416 4 112 status. Analysis of the location of these roads relative to Additional road development targeting areas with high
MH 582 874 1 121 2 577 the land areas that are classified as having high potential potential for irrigation-based commercial agriculture
ML 276 939 1 193 2 408 for agriculture indicates that the bulk of the roads are in should also be prioritized and rehabilitated on the merit
the three Equatoria states and Jonglei. These four states of the expected high pay-off in terms of agricultural
LH 443 373 535 1 351
account for almost 80% of the all-weather road network expansion, employment creation and technology transfer.
LL 522 400 862 1 784
required to meet the rural connectivity target. Most of this As Map 6.4 indicates, areas with high irrigation potential
Total 2 697 4 476 6 285 2 303 15 761 proposed all-weather network is located in the Greenbelt for possible development in the decade ahead include
(34% of the proposed network), the Hills and Mountains areas of Western Equatoria, Eastern Equatoria, and parts
Source: World Bank (2011).
agro-ecological zone (22%) and the Pastoral zone (21%). of the Western Flood Plain Zone, including Northern Bahr
As Table 7.7 in Chapter 7 indicates, the proposed program el Ghazel and Warrap
The development and rehabilitation of roads in areas with and high potential for agricultural production. Under this
the highest agricultural potential and population density approach, priority access is given to regions or area with
would have a high development impact, allowing small “high production potential and high population density”
scale farmers to expand production and compete with (HH), “high production potential and low population
Table 6.10: Proposed Distribution of All-Season Roads for Enhanced Rural Connectivity
food imports in the short-run and commercial firms to density” (HL), and “medium production potential and
(In kilometers)
penetrate and conquer cross-border market and compete high population density” (MH). The objective is to achieve
State Interstate Other Secondary Tertiary Total Share of
effectively in global markets in the medium- to long- a high Cropland Connectivity (CLC).
run. To facilitate an assessment of the actions needed to roads primary roads roads roads total
improve rural connectivity, the portion of the national Application of the RAI Index with a 2 km requirement Upper Nile - 9 17 - 26 0.2
road network that is located in each of the six zones of for access to the interstate primary road network of South Unity - 72 15 - 87 0.8
agricultural potential has been estimated. As Table 6.8 Sudan results in a CLC Index measure of 39%. About 18% Jonglei 84 553 660 590 1 886 16.8
indicates, about 10,220 km of roads are located in the three of the rural population and 7% of the currently cultivated
Northern Bahr el Ghazal 200 72 126 - 397 3.5
zones with a high agricultural potential (HH, HL and areas of high agricultural potential are within 2 km of
MH) – equivalent to about 65% of the national network, the all season primary road network. This level of rural Western Bahr el Ghazal 286 75 140 - 501 4.5
using the World Bank estimates for the size of the national connectivity was judged to be too low. However, if the Lakes 575 69 232 2 878 7.8
network, which are somewhat larger than the estimates rural population and high potential agricultural land that Warrap 129 130 282 - 542 4.8
used for this Report in Chapter 7.65 is within 5 km of an all-season road is used, the CLC Index Western Equatoria 589 512 686 539 2 326 20.7
measures 64% for that part of the country that is classified Central Equatoria 578 891 188 562 2 220 19.8
For the purposes of this Report, the High Population-High as having high agricultural potential. About 51% of the
Eastern Equatoria 256 305 1 192 610 2 363 21.1
Agriculture Potential Measure has been used to formulate total cropland and 71% of the rural population in these
Total 2 697 2 687 3 539 2 303 11 226 100.0
a strategy and action plan to improve rural connectivity high potential areas would be within 5 km of all-season
in the decade ahead. The approach emphasizes the need roads. This level of road access is judged to provide the
Source: Ministry of Roads and Bridges.
to invest in roads in areas with high population density basis for a strong agricultural supply response.
65 The road network data used in the recent World Bank study differ from that used in Chapter 7 of this Report. See Annex 8 for a discussion of these differences.
Water resources and irrigation. Before the second have high population densities. On this basis, the best livestock farmers. There are good prospects for commercial the Green Belt has a high LPG in addition to being densely
war broke out in 1983, the overall plan for irrigation opportunities for expanded smallholder and commercial livestock farming in the medium term.67 In addition to populated. It is among the livelihood zones with the
development in Southern Sudan was to irrigate about irrigated-based agriculture appear to be in parts of the facilitating crop and livestock farming, the construction of highest agricultural potential, having both a long growing
270,000 ha of land.66 Because of the ensuing conflict these Eastern and Western Flood Plains, the Nile-Sobat Rivers catchments will contribute to a reduction of the incidence period and relative high population density. The zone has
plans were not realized and there has been no significant area, and the Green Belt zone. of cattle raiding and the attendant ethnic conflicts over approximately 500,000 ha of virgin land under tree cover,
development of the country’s irrigation potential. The control of water resources, which is prevalent in the zones. some of which can be converted into agricultural land.
current area of irrigated crop area is negligible occupying Nile-Sobat River Basin Irrigation Schemes. The potential The introduction of irrigation schemes would provide
only 321 sq km (32,100 hectares) – less than a tenth of area that can be irrigated in the Nile-Sobat River Basin Mangalla Irrigation Scheme. Mangalla is located at the significant opportunities for year-round cropping activities.
one percent of national land space. About 12,700 ha sq is estimated to be about 654,700 ha. On average, the confluence of the White Nile and one of its tributaries in The development of small- to medium-scale irrigation
km of the irrigated cropland in South Sudan is in Upper annual rainfall in the Basin area is between 200 to 400 Central Equatoria state. The area has considerable potential schemes in the Green Belt would increase agricultural
Nile state; irrigated areas in Jonglei and Western Equatoria mm. However, with the introduction of irrigation, the for large commercial farming using irrigation to produce production and income of smallholder farmers engaged
states are 300 and 500 ha respectively, with the remaining area acquires huge potential for increased agricultural sugar cane. The region has rich alluvial soil within a vast in fruits and vegetables farming. The region’s proximity to
18,600 ha in small parcels of land across the country. In production. Development of this potential would make marshy plain from the overflow of rivers during the rainy EAC and COMESA regional markets with sizable unmet
addition, about 6,000 ha of flood land, confined primarily a significant contribution to agricultural output, enhance season. It is estimated that approximately 250,000 hectares demand for cereals and oilseeds provides good market
to Northern Bahr el Ghazal, is used for rice production. food security and boost export earnings. It is anticipated can be irrigated. Mangalla is only 45 km from Juba. It has opportunities for producers. In addition, the region has
By livelihood zones, Eastern Flood Plains has most of the that cereals (sorghum, rice, maize), oil seeds (groundnuts good market access and power supply from bagasse and easy and fast access to international markets through the
national irrigated cropland, followed by the Green Belt and sesame, sunflower) and gum acacia would feature presents opportunities for operating a cane processing seaport of Mombasa and Juba and Nairobi international
Nile Sobat River Basin. prominently in these programs because of the suitability plant that could supply domestic and regional markets. airports. Nairobi airport is known to have world-class
of the soil as well as the large unmet domestic, regional produce handing logistics for exporters of fresh fruits and
Given the country’s rich land and water endowment, and global demand for these commodities. Along with the Irrigation schemes in the Green Belt Zone. As noted earlier, horticulture.
the potential for irrigated agriculture is large. With its introduction of large-scale commercial irrigation, there
substantial water resources, South Sudan can, though are opportunities for development of small- to medium-
irrigation, increase agricultural production by converting scale irrigation schemes (primarily for production of rice
into cropland, some parts of its land cover that is currently and possibly sugar cane) in the following areas of the Nile-
not under cultivation or is cultivated only periodically. Sobat Basin: MAP 6.4: Location of Prospective Areas for Development of Irrigation Schemes
The MWRI has identified irrigation as means for attaining
food security and improvement of water management for • Between Geigar and Gelhak the development of pump
agriculture and as a remedy to the dual problems of recurrent schemes for smallholder farmers is feasible. As much as
droughts and periodic floods. The locations for potential 11,840 ha could be irrigated in this manner.
development include the following: (i) the lowlands, where • Between Gelhak and Melut there is an estimated
farmers make use of flooding to supplement water for irrigable area of 27,890 ha.
growing rice; (ii) areas adjacent to river floodplains, where • Between Melut and Malakal an area estimated at 17,000
farmers cultivate short-maturing varieties of sorghum; ha could be irrigated.
(iii) areas around swamps/marshes where extension of the
growing season is possible by planting in moist soils left by Western and Eastern Flood Plains Irrigation Scheme. As
receding floods; (iv) drought-prone eastern mountainous with the Nile-Sobat River Basin, the Western and Eastern
semiarid areas with low water storage and infiltration Flood Plains have a significant proportion of its land area
capacity; and (v) southwest and western (Green Belt zone) is prone to floods. It is estimated that as much as 600,000
whose agricultural output usually exceeds subsistence hectares of land could be converted into cropland in
level and where modern irrigation techniques can further Warrap, Unity and Jonglei states. However, in these two
increase agricultural production, enhance food security zones a large amount of the total landmass is covered
and supply agro-industries. by trees, flood land and water with rocks. Before this
potential can be developed, extensive due diligence and
The choice of locations for irrigation development should environmental assessments must be first undertaken to
be guided by the prospects and potential to increase ensure that such development is sustainable and based on
cropland and cropping season (i.e. LGP) in areas where, sound environmental and ecological principles. Moreover,
due to low rainfall, unutilized arable can be converted construction of such schemes must also be in compliance
to cropland using irrigation schemes to harness water with the evolving provisions of the Nile Basin Initiative
resources for agricultural production. The analysis of on water resource management/utilization. Within these
the classification of aggregated land use in South Sudan two zones, flood rice and sugar cane can be grown on a
shows that 27% of existing cropland is located in areas commercial scale to meet local demands and generate
where agricultural potential is high (LGP > 220 days) export earnings. Furthermore, alongside irrigation for
while as much as 42% is located in areas with medium crop farming, there are opportunities to construct water
to low potential because of low LPG. Furthermore, as catchments for better management of floods and droughts
underscored earlier, the areas with medium to low LGP and for provision of a year-round supply of water for
66 Among the schemes considered then were the Mangalla Sugarcane Scheme in Central Equatoria, Panko (Penykou) scheme for different varieties of crops in Jonglei and,
with support from UNDP and FAO, the Aweil Rice Scheme in Northern Bahr el-Ghazal. The Aweil scheme was expected to irrigate an area approximately 2,440 ha. 67 The livestock population of Jonglei, Unity and Warrap accounts for 35% of total livestock in South Sudan.
Development of a national strategy for irrigation and related A possible program for irrigation development. As a first
Indicator 2010 2011 2012 2013 2014 2015 2020
water management. The foregoing discussion about the step in the development of this potential, this Report
potential for irrigation suggests that there may be as much proposes that as a matter of priority, a master plan for
as 1.5 million ha of land that could be brought under irrigation development be prepared for the decade ahead. Smallholder program 2 000 2 000 2 000 2 000 2 000 2 000 2 000
irrigation by smallholders and commercial farming. The The master plan will need to give particular attention to Large scale commercial 3 000 3 000 3 000 3 000 3 000 3 000 3 000
World Bank has noted that experience in Sub-Saharan the amounts of existing or potential cropland to be brought Cumulative capital cost (US$ mill)
countries indicates that economic returns on small-scale under smallholder irrigation schemes and the amount to
Smallholder program 64 70 80 100 120 160 400
schemes have averaged about 26% compared to 17% for be developed under medium- and large-scale commercial
Large scale commercial - (47) (9) 10 78 156 600
large-scale schemes.68 These results depend on keeping farming and the likely investment cost per hectare.
investment costs down to best-practice levels of $3,000 per Construction costs in South Sudan are known to be high. Total 64 23 71 110 198 316 1 000
hectare for the water distribution component of large-scale In the event that water-related investment costs per hectare Annual capital expenditure (US$ mill)
irrigation and $2,000 per hectare for small-scale irrigation. for large-scale commercial operations were say $6,000 Smallholder program - 5.8 10.0 20.0 20.0 40.0 50.0
For each 100,000 hectares of smallholder and medium- per hectare, it is entirely possible that the viable area of Large scale commercial - (47.0) 38.3 19.2 67.4 78.2 106.9
and large-scale irrigation brought into production at these irrigation land would decline substantially. Furthermore, Total - (41.2) 48.3 39.2 87.4 118.2 156.9
best practice costs, the investment costs would be $200 the proposed program for irrigation development needs
million and $300 million respectively. However, these to be drawn up within the framework of a national water Source: Estimates by authors.
World Bank studies of African experience indicate that the resources strategy that includes close attention to the
cost of public irrigation has been excessively high. Many domestic and regional institutional arrangements for Such a program would require mobilization of FDI from growth without direct foreign assistance, particularly,
schemes failed to capture higher yield levels and failed development of these water resources, along the lines strategic international agriculture partners (SIAP) and foreign direct investment. The lack of financial and
to transition to higher value crops. Another important outlined in Chapter 5. expansion of cropland. The attraction of investors of the technical resources required for the country to achieve
consideration drawn from experience in Sub-Saharan Hybrid model should aim to stimulate the development of its development objectives is clearly evident in the
Africa is that in most cases, irrigation is only viable for Subject to the completion of a master plan for irrigation a local outgrower schemes, farmer cooperatives and other agriculture sector. As discussed in the preceding sections
cash crops or high value food crops (such as horticulture). that addresses these foregoing concerns, an indicative farmer-based organization. The SIAP investor would also of the Chapter, notwithstanding its natural land and water
Experience has shown that the economic viability of program for the development of 400,000 hectares of be expected to contribute to the provision of modern resource endowments, the agriculture sector is producing
irrigation for staple food crops in often doubtful. These irrigated agriculture has been included in the program technology and agric-business management systems at substantially below capacity with yields that are far below
concerns about economic viability, farm-level profitability for agriculture. The underlying assumption is that 50% and facilitate the creation of the necessary logistics, those of less endowed neighboring countries. If the country
and sustainability should guide investment decisions in would be smallholder farm development and 50% would including river and rural transport infrastructure. One of is to achieve an export-led agricultural transformation
the decade ahead. be large-scale commercial farming with links to the the side benefits of such a program may be its impact on and growth, it must attract high impact foreign direct
smallholder outgrowers. Assuming application of best complementary farming systems, including in particular investment and link it to the country’s smallholder farmers
The country’s development and growth will also benefit practice investment costs, the water related component livestock. These new investments in irrigated cropland and farmer cooperatives. Further, given the importance
from enhanced use of the Nile and its tributaries as of the program would cost $1.0 billion (Table 6.11). The farming may also bring investment opportunities in the of cereals in the food basket of the population, the cereals
sources of water for irrigation and as a means of transport. $600 million for commercial farm operations would livestock value chain activities and processes, focusing industry should be at the center of efforts to strengthen the
However, development of the country’s large irrigation have to be mobilized from private investment. The $400 on market development and consolidation, processing traditional sector and lay the foundations for a competitive
potential will need to be undertaken within the framework million required for smallholder development would have of hides and skin (leather and leather goods) and the performance in export markets.
of a national strategy for agricultural water development. to be funded from public sources using Government and establishment of modern slaughterhouses and cold storage
At this stage, it is not clear how much water may be available donor resources. Assuming the program was successful in facilities. The challenge is to identify and attract the right type of
for irrigation programs from multipurpose dams that are concentrating on the production of high value crops that foreign direct investment in South Sudan: those with high
under consideration for the decade ahead, how much yielded revenue of say $2,000 a hectare, gross revenues An important concern related to this proposed program impact on development and that contribute to building the
water would come from run-of-the-river type schemes, from the program would amount to about $1 billion a year. for irrigation is its implications for water demand. Section capital base of the country. South Sudan can benefit from the
and how much would come from tapping aquifers. More This would be a substantial contribution to the GDP of 5.6.3 in Chapter 5 includes a detailed discussion of the experience of many other African countries in this regard.
work is needed on the implications of the program for the country, to employment opportunities and to import possible growth in demand for water by the agricultural The recent experience of South Sudan’s neighbors provides
downstream riparian states. replacement and or export revenues. sector. Driven by the proposed expansion in irrigation, a valuable lesson on the type of Strategic International
water demand for cropland agriculture is projected to Agriculture Partners (SIAP) that South Sudan should seek
increase from an estimated 0.42 billion m3 at present to 4.8 to attract. Summarized below are a set of best practices and
Table 6.11: Proposed Investment Program for Irrigation Development billion m3 by 2020 (see Table 5.5). insights from Ethiopia, Ghana, Kenya, Uganda and other
East African countries. Experience elsewhere in the region
suggests that there are three widely used operating models
Indicator 2010 2011 2012 2013 2014 2015 2020 6.4.8 Promoting Commercial for large-scale commercial agriculture:
Investment in Agriculture • Investor Controlled Model, under which the investor

Land under irrigation (hectares ‘000) manages the farm and is the sole entity that grows,
Smallholder program 32.1 35.0 40.0 50.0 60.0 80.0 200.0 harvests and markets crops.
Attracting high impact foreign direct investment.
Large scale commercial - (15.7) (2.9) 3.5 25.9 52.0 200.0
As a direct consequence of decades of war and abject
Total 32.1 19.3 37.1 53.5 85.9 132.0 400.0 • The Out-grower Model: Under this model, the investor
neglect, there has been near complete depletion of the
Capital cost per hectare (US$) does not directly engage in large-scale farming; instead
country’s technical, institutional, financial, man-made
the investor relies on local farms and a farmer groups
and social capital, which has, in effect, circumscribed the
and independent suppliers to produce crop, which the
68 See Foster and Briceño-Garmendia (2010), op cit., and Svendsen, Mark, Mandy Ewing and Siwa Msangi (2008), “Watermarks: Indicators of Irrigation Sector Performance country’s ability to engineer and sustain development and
investor then purchases. A prerequisite for operational
in Sub-Saharan Africa.” Africa Infrastructure Country Diagnostic, Summary of Background Paper 4, World Bank, Washington DC, April 2008.
effectiveness of this model is the existence of a In order to maximize the mutual benefits of the investor in the domestic market. The yield percentage must be availability and use, seed cultivation and multiplication,
well-organized and coordinated structure of local and the host country its citizens, the following factors clearly specified in the agreement. integrated pest control and management, and post-harvest
out-grower farmers, with sound agricultural knowledge should be central to the agreement: management.
and capacity to maintain standard and produce high • Taxation. When structuring agreements care must be
quality crops with minimum supervision from the • Duration of the agreement. Land leases (not outright taken to balance the tax revenue interests of the state Government should facilitate the leveraging of the
investor. Investors in bio-fuel schemes often use this sale) range from 10-99 years. The actual duration will and the profitability of the investment of the investor. strategic partner basket of resources to support the
model. depend on the crop. For example, for annual crops, the Depending on the crop and complexity of the farming traditional sector. It is well known and empirically
duration typically does not exceed 30 years. operation, investors would like to monetize their documented that most international agricultural investors
• Hybrid Model: This model combines elements of the investments as soon as possible and often seek the provide financing resources, technology, off-farm and
investor controlled and out-grower models. Under • Labor force and technology transfer. Most SIAPs agree granting on tax holidays in order to generate quick cash some basic infrastructure. To galvanize the impact of these
the hybrid model, the investor maintains a large-scale to recruit and train the local labor force. Labor force flows. Other provisions in the agreement deal with benefits, the government should support the creation of
farm and also buys crops from local out-grower farmer is a subject of mutual interest of the country and the land transfer rights, land duties and transfer of profits agro-business hubs and formation of community-based
groups or cooperatives. A key advantage of this model, investor. SIAPs are concerned about the availability to the investor’s parent company in foreign countries. grower cooperatives and other farmer-based organizations
at least from South Sudan’s standpoint, is that the of dependable labor force from which they can draw that would be linked with the foreign commercial scale
investor plays a role in organizing and training local from; the host country and involved communities are • Security. Having a stable and political and economic operations in their area. These integrated clusters of the
farms, thus the community benefits from employment, interest in employment creation and skill development. environment that is devoid of conflict is the traditional sector are the channeled through which the
and knowledge and technology transfer. It is common Some agreements do include provisions for temporary responsibility of the host government, but is crucial to government, in partnership with commercial farm, could
for the investor to initiate this model. However, many and time-bound importation of some labor force when the investor. If an investor perceives high political risk provide technical assistance packages, design some basic
African countries, including Ghana, Morocco, Kenya the required skills are not yet available. Many SIAP such as arms conflict, unstable policy environment with infrastructure as well as provide technical and managerial
and Ethiopia have developed investment criteria that agreements specifically require that the investor brings the prospects theft or government expatriation, then training in very cost ways.
mandate the foreign investor to integrate traditional modern agricultural practices and technology to the they will not enter into agreement. It is not unusual
farmers and local out-grower producers in the firm’s host country, very often transforming the sector from for investors to demand a stabilization clause to ensure The strategic partner can deliver technical assistance.
production and supply chain structure. dependence on traditional agricultural methods using that the regulatory framework governing investment is Raising the productivity of the country’s cereal subsector is
simple instrument to the use of mechanized equipment not threatened. Both the government and the investor imperative. The country cereal producers have the lowest
The position taken in this Report is that South Sudan (tractors) and other productivity-enhancing tools and are interested in and will ensure the inclusion of a fair yields in Africa. The presence and support of the strategic
should identify and attract a SAIP that falls with the equipment. arbitration process that will address disputes that may commercial farmer can reverse this phenomenon. GoSS,
Hybrid Model because the relevant local community arise. through the Ministry of Agriculture, the state level
will benefit from employment opportunities arising from • Compensation. In addition to taxes, it is common ministries and county departments of agriculture, in
scale operations of the investors as well as the technical for compensation to include the construction of partnership with the scale farmer can provide technical
transfer and managerial knowledge. The Government community facilities such as rural roads, irrigation 6.4.9 Linking Strategic Investors training to extension officers and the establishing of farmer
should aggressively seek out this type of investors using schemes, water treatment and supply systems, schools, field schools.
the resources of the country’s investment promotion clinics and as well as the training of local farmers or to Smallholder Farms
agency. The Government should also develop structured farmer groups on agricultural methods, raising their Strategic farmers can assist seed production programs.
investment standards and codes that would ensure the knowledge and productivity.
and Cooperatives With support from government, the strategic international
inclusion of South Sudan’s smallholder farmers and farmer could facilitate the establishment of viable county
In order to maximize the benefits from foreign direct
farmer cooperatives in the supply chain of the commercial • Land. Property rights and enforceable land lease seed production units. Within the framework of a supply
investment local stakeholders must be mobilized
investor. Prior to entering into SIAP agreements, the contracts are central in land deals as is the protection chain that links the international scale farmer to traditional
and actively linked to the larger commercial farmers.
Government of South Sudan may want to draw on of the land rights of the community. The involvement farmers organization, the international farmer will benefit
Furthermore, in order to create effective farmer
international experience with best practice SIAP models. of the host government and civil society is central to from the establishment high yield seed production units.
cooperatives that will supply the larger commercial
ensuring the safety of the SIAP investment as well as The government should provide a time-based subsidy to
farmers, the members of the cooperatives must be trained
Design and implementation of SIAP agreements: The securing equitable compensation to the community. the seed units pending when farmers’ operations become
by the commercial farmer on modern farming approaches,
principal actors are usually the national host government The central government is best suited to arbitrate financially self-supporting.
including the application of fertilizer and pesticides and on
and the international agricultural partner. The foreign and protect the rights of the investor as well as the
methods of ensuring high standard of products.
partner can be a foreign government, a sovereign wealth communities involved in the host country. A good Fertilizer production and distribution. At the present
fund, a private enterprise endorsed by its home country and transparent land deal will entail early involvement time, the vast majority of traditional farmers do not use
In recognition of the importance of logistics and access
government. Depending on structure of the deal, other of civil society, creating a process where the voices of any synthetic fertilizer, herbicide or pesticide, which, in
to good arable land and favorable climate (mainly in the
actors, such as multilateral financial institution such as community members can be heard and their concerns part, accounts for the low yields relative to farmers in the
Green belt zone) and airfreight services and communities
the World Bank or the African Development Bank, or addressed. The deal must be seen to be fair and seen to broader region. GoSS, through the Ministry of Agriculture
within a radius of one hundred miles to the Juba airport
MIGA may be included. The need to involve the host be equitable in terms of quantity, quality and price of and Forestry, in close collaboration with the scale farmer,
should be targeted. Farmer-based organizations and
country’s government is pivotal because it is the authority the land involved. Some land deals also address water should earmark funds for financing the establishment of
cooperatives, under the guidance of the Ministries of
best suited to: coordinate internally with state and local access issues, including annual water rents. a fertilizer plant and a distribution system that enables
Agriculture and Forestry and Rural Development and
governments as well as civil society; structure a legally farmers and farmer based organization to acquire fertilizer
Cooperatives, would enter into supply agreements with
binding agreement; and, place the investment within • Yield. One of the many advantages of large-scale in a timely and cost effective manner.
the commercial farmers. A technical assistance package
the framework of the national development plan. The farming is that it can contribute to national food
for farmer-based organizations and out-growers would
involvement of the national government also ensures a security by increasing yields and supply of crops in Higher quality and more widely available extension
be designed and supported by the commercial farmers
uniform approach and avoids the prospects of different the domestic market. Agreements usually specify the services. Continuous training and development is an
and the government. Key issues to be addressed in the
localities offering competing concessions. percentage of output of the investor that must be sold absolute necessity in order to upgrade the competitiveness
technical assistance packages would include fertilizer
of the cereal industry. Specific and dovetailed training
targeting agronomists should be institutionalized and
6.4.10 Capacity Building public service capacities would be undertaken by the
government with strong support from the international
6.5.1 Private Investment in Agriculture
administered though State and County government
structures. Training/skills development is needed in:
and Technical Support donor community. In the latter part of the decade, large
scale commercial investors would become important
As discussed earlier, a key objective for the sector is to raise
the growth in production and value added to about 6% a
A key component of the proposed strategy outlined in suppliers of services to smallholder farms that contract
year in real terms by the latter part of the decade ahead.
• Production practices of the different grains This Report for agricultural development in the decade to supply agricultural, livestock and fisheries products
Achieving sustained strong growth of this kind will require
ahead is to build capacities with the national government on a regular basis. As Table 6.11 indicates, operating
a substantial increase in private investment in the sector in
• Food science and practical skills in grain processing as and the state governments for provision of basic services services funded by the government an donor community
the decade ahead.
business units to smallholder farming communities. As noted earlier in would need to increase to close to $100 million a year by
this Chapter, farmers, pastoralists, and people that depend 2020, with much of the $50 million increase going into
There is no up-to-date and complete information about
• General business skill (including farm management on fisheries for a livelihood, have cited lack of technical extension, veterinary and other direct services to farm
current levels of private investment in the sector. There
and financial, marketing and risk management support services for a wide range of activities in the families.
are two distinctly different components for the estimates
sector as a major obstacle to increased production. These of private investment. One is capital improvements on
• Pesticide use and handling, market quality assurance
and SPS requirements
include, for example, inadequate supplies of improved
seeds and planting materials, inadequate support for the
6.5 Development Expenditure smallholder farms that are undertaken primarily with the
use of farm labor with little or no use of outside capital.
• Collection, handling and interpretation of market and
management of animal diseases and pests and diseases in Requirements and Financing The other is investment undertaken on medium- and
crops, and issues relayed to land use. large-scale farms that are funded primarily with debt or
business information The proposed program for agriculture, forestry and equity financing by the private investors concerned. In
A comprehensive list of ongoing donor-funded capacity fisheries will require a significant build-up in recurrent kind capital expenditures by smallholders is assumed to
Adaptive research. Sustainable competitiveness of the building and technical support is not available for the and capital spending in the sector. The program for the be about $10 million a year during 2010-11, with a steady
South Sudan cereal sub-sector will depend on its ability Ministry of Agriculture and Forestry, the Ministry decade ahead is built around three broad thrusts: (i) a increase to about $65 million a year by 2010.69 Investment
to adopt and adapt latest and relevant production and of Animal Resources and Fisheries, and the state major expansion in private investment in medium- and outlays by commercial farmers are assumed to be in the
processing technologies. A research laboratory that aims government ministries responsible for the agriculture large-scale commercial farming to supply the domestic range of $20 million a year at the present time. Commercial
at commercial application of such technologies will ensure sector. Information from the AIMS database of the and international markets with a range of food products investment in agriculture is projected to increase sharply
that extension services provide and dovetailed to South MoFEP identifies $11.5 million of technical support and and agricultural raw materials; (ii) a substantial build-up in the decade ahead to about $600 million a year by 2020
Sudan circumstances. capacity building in 2010, with actual disbursements of in public spending on services provision, especially for (at 2010 constant prices and exchange rate). A substantial
$6.8 million during the year – equivalent to 11.4% and smallholder farms, combined with efforts to improve access part of this investment would come from offshore private
Mechanized farming equipment. Currently approximately 9.4% of planned and actual total disbursements in 2010. to working capital loans and agricultural inputs; and (iii) a investors, some of which would involve joint ventures with
80% of local production comes from small and traditional There is significant provision of technical support and substantial improvement in the quality of infrastructure in domestic partners. For the decade as a whole, the amount
farmers. Only a tiny proportion is mechanized agriculture capacity building in other ongoing programs supported these areas, in the degree of access to markets and in the of private investment required to achieve a 6% growth
and limited to the Upper Nile region. The absence of of donors. For the purposes of this Report, it is assumed cost of the infrastructure services. rate is projected to be about $2.6 billion (at 2010 constant
mechanized tractors (or at the least, animal draught that the total amount of technical support and capacity prices and exchange rate).
ploughs) has resulted in the absence of scale and yields on building funded by donors in 2010 was 30% of their total
all of the main cereals in South Sudan. The Government disbursements. This puts the total amount of such support
has purchased various models of tractors and distributed at about $27 million a year at the present time. The total
to each of the ten states with the objective of encouraging operating budget (salaries plus operating expenses) of Table 6.12: Indicative Cost for Development of the Agriculture, Forestry and Fisheries Sector
the mechanization of land preparation and other field the MoAF and MoARF taken together for 2010 and 2011 ($ millions at 2010 constant prices and exchange rate)
operations. The tractors are, in principle, available for was $19 million equivalent (Table 6.11). Donors and
hire by farmers, farmer groups and cooperatives, at a cost government are therefore spending about $50 million a Category Estimate Projection Total
ranging from 50 to 240 SDG/feddan for land preparation. year on agricultural services of various kinds (other than 2010 2011 2012 2013 2014 2015 2020 2011-2020
Over 400 tractors have been distributed to the states since capital expenditures) – equivalent to about $35 a year
2005. Given the limited infrastructure on the ground, Management and service provision
for each rural household. It is not clear how much of
there are concerns regarding the capacity to maintain these National government 18.3 19.9 21.9 24.5 27.4 30.7 54.1 342.8
these services provide reasonably direct benefits to the
tractors locally. The Ministry of Agriculture and Forestry Capacity building & technical support
rural population of the country. The position taken in
should scale up the acquisition and distribution of tractors this Report is that for successful implementation of the Donor programs 21.9 27.1 28.5 30.0 31.5 33.0 36.8 326.3
and ploughs along with the requisite comprehensive proposed strategy for agriculture, there will have to be a Capital expenditures
training program for operators. In this regard, selected major expansion in basic extension and other services to Donor programs 51.0 63.2 66.5 70.0 73.5 77.0 85.8 761.4
farmers should be trained in basic tractor operations, smallholder farmers, pastoral and fishing families. Some National government 4.1 16.1 32.3 48.1 65.6 84.6 172.9 964.0
including the mounting and setting of implements. Fully of the increase in services will come from commercial Private sector 25.0 30.0 60.0 100.0 150.0 206.0 675.9 3 109.9
equipped workshops should also be established in the state investors under the proposed out grower models; but Sub-total 80.1 109.3 158.8 218.1 289.1 367.6 934.5 4 835.4
centers along with trained mechanics to maintain, service there will also have to be a significant increase in public Total
and repair both government and privately owned tractors. support services as well. Government 22.4 36.0 54.2 72.6 93.0 115.3 227.0 1 306.8
The Government should also ensure that access to these
Donor funding 72.9 90.3 95.0 100.0 105.0 110.0 122.5 1 087.8
tractors is equitable and that they are available to female In the early stages of the program, build-up in these
farmers.
69 See Annex 7 for a discussion of the basis for these estimates.
Category Estimate Projection Total Indicator Realized expenditures Budget
2010 2011 2012 2013 2014 2015 2020 2011-2020 2006 2007 2008 2009 2010 2011
Private sector Memo items:
Smallhold farmers 10.0 11.4 17.5 23.9 36.7 49.7 65.6 460.7 Total expenditures (US$ mill)
Commercial investment 15.0 18.6 42.5 76.1 113.3 156.3 610.3 2 649.2 Total 21.6 15.2 28.1 25.3 22.4 36.0
Sub-total 25.0 30.0 60.0 100.0 150.0 206.0 675.9 3 109.9 Capital - - - - 4.1 16.1
Grand total 120.3 156.3 209.2 272.6 348.0 431.3 1 025.4 5 504.5 Total expenditures as % national budget 1.3 1.0 1.0 1.4 1.0 1.8
Memo items:
Growth in basic services (% p.a) 8.5 10.0 12.0 12.0 12.0 12.0
Source: Ministry of Finance & Economic Planning (2011), Approved Budget, 2011. March 14, 2011.
National budget allocation for sector (%) 1.0 1.5 2.0 2.5 3.0 3.5 5.0
Total budget expenditures (US$ mill) 2 342.9 2 423.2 2 710.0 2 905.0 3 100.0 3 295.0 4 540.0
Capital outlays by the national government have averaged Role of the donor community. The agricultural sector
Public investment in irrigation (US$ mill) - 5.8 10.0 20.0 20.0 40.0 50.0
less than $10 million a year in the past two years. However, (including crops, livestock, fisheries and forestry) currently
Exchange rate 2.38 2.38 2.38 2.38 2.38 2.38 2.38 the strategy set forth in this Report calls for a substantial receives support from 16 multilateral and bilateral donors.
build-up in government capital spending on field service As of October 2011, total donor commitments for ongoing
Source: Estimates for 2010 and 2011 from 2011 National Budget and MoFEP AIMS database. Projections for 2012-2020 prepared by authors. facilities, and extension and research services. As Table 6.12 projects in 2010-2013 amounted to $192 million (Table
indicates capital outlays by the government would build up 6.12). The commitment of $101 million in 2010 was
6.5.2 Public Expenditures on Government support for the program. During 2006-
2010, national government spending on programs for
to about $170 million a year by 2020, a level that would
be substantially larger than the proposed donor program.
equivalent to about 10% of the donor-funded development
assistance program (excluding humanitarian assistance)
Agriculture, Forestry agriculture, forestry and fisheries accounted for about 1%
of total expenditures in the national budget (Table 6.12).
These capital expenditures would, for example, include
the $50 million a year being spent on expansion of public
for that year. Disbursements against these ongoing
programs amounted to $73 million in 2010 (implying a
and Fisheries The 2011 budget allocation amounts to 1.8% of proposed irrigation schemes for smallholder farms in 2020. In this disbursement ratio of 72% in 2010). The livestock, fisheries
total expenditures. scenario, donors would increasingly become cofinanciers and forestry sub-sectors account for about 17% of the
In 2010, public spending on programs for agriculture, with the government in these capital works programs, ongoing program, with support for cropping activities,
forestry and fisheries amounted to about $95 million, As Table 6.13 indicates, recurrent spending by the government in contrast to the current situation where donors fund a capacity building and institutional development such
including donor support in the amount of $73 million and on service provision to the farming community, pastoralists substantial part of the capital works program independent as land tenure issues accounting for about 83% of the
national budget expenditures of $22 million equivalent. and those depending on fisheries for a livelihood is currently of the government. program.
Public expenditures on programs for which the Ministry of about $20 million a year. Under the proposed program this
Animal Resources and Fisheries is responsible amounted would increase to about $54 a year by 2020. As noted in
to about $30 million equivalent in 2010; for Ministry of the above discussion, this growth in capacities for service
Agriculture and Forestry programs, total public spending provision would be supported by the donor community with Table 6.14: Ongoing Donor Funded Agriculture, Forestry and Fisheries Projects ($ thousands)
was about $65 million. At the time this Report was capacity building and technical support increasing to about
prepared, total outlays in 2011 were estimated to be about $35 million a year by 2020. (Both expenditure programs are
$125 million. at 2010 constant prices and exchange rate.) Budget allocation Disbursement
2010 2011 2012 2013 Total 2010 2011 2012 2013 Total
Livestock 8 294 2 809 1 647 420 13 170 6 423 3 509 2 113 1 124 13 169
Fisheries 9 628 1 277 1 753 400 13 057 9 390 1 438 1 737 491 13 057
Table 6.13: National Government Expenditures on Agriculture, Forestry and Fisheries Forestry 5 984 400 800 7 184 4 197 2 187 800 7 184
(In SDG millions)
Crops and other 77 056 61 738 13 708 6 334 158 836 52 872 58 427 41 203 6 334 158 836
Total 100 962 66 223 17 908 7 154 192 247 72 882 65 562 45 853 7 949 192 246
Indicator Realized expenditures Budget
2006 2007 2008 2009 2010 2011
Source: Ministry of Finance and Economic Planning. AIMS database.
Ministry of Agriculture & Forestry
Recurrent expenditure 28.044 36.950
The United States of America and European Union have the donor program is a matter of concern for the National
Capital expenditures 4.797 25.345
the largest ongoing programs with commitments of almost Government. The proposed action plan for agriculture set
Sub-total 33.363 18.507 32.356 44.443 32.841 62.295
$70 million and $50 million respectively (Table 6.15). The forth in this Report calls for a carefully focused set of public
Ministry of Animal Resources & Fisheries MDTF, Canada, Common Humanitarian Fund and World and private interventions in selected geographic areas of
Recurrent expenditure 15.527 21.656 Bank account for another $60 million of the ongoing the country, backed by programs of technical support and
Capital expenditures 4.899 22.176 commitments. The other 10 donors account for the balance capacity building at the national and state levels. Successful
Sub-total 13.484 12.129 26.354 14.080 20.426 43.832 of $19 million of ongoing commitments, six of whom have implementation of this strategy will require a close attention
Total for two ministries programs of less than $2 million. The fragmentation of to issues of donor coordination in the sector.
Recurrent expenditure - - - - 43.571 58.606
Capital expenditures - - - - 9.696 47.521
Total 46.847 30.636 58.710 58.523 53.267 106.127
to several provisions in the current South Sudan land law71,
6.6.2 Insecurity in South Sudan which prohibits foreigners from owning land in South
Table 6.15: Ongoing Donor Commitments (In $ millions) Sudan. Although a recent IDS Academie publication
Even though the war between Sudan and South Sudan
claims that, between 2007 and 2010, at least 10 large-scale
Donor Amount Share was formally declared over by the signature of the CPA-
investment in agricultural land and 4 in forestry/carbon
Protocol on Security Arrangements, persistent episodes
(%) credit have been concluded, it also states that some of the
of violence and insecurity have continued to afflict
land acquisitions have been conducted under questionable
USA 68.5 35.6 various parts of the country and continues even after
conditions and are being reviewed, risking abrogation.72
European Union 49.3 25.6 independence. The proliferation of opportunistic militia
Multi-Donor Trust Fund 18.1 9.4 groups and violent activities by the Lords Resistance Army
Arguably, commercial/large scale farming, which is
have made many communities throughout South Sudan
Canada 15.8 8.2 essential for FDI in agricultural development, requires
vulnerable to effects of violent conflicts- deaths/injury,
Common Humanitarian Fund 13.4 7.0 assess to land with unambiguous right to develop the
displacement and destruction of social and economic
land. Under the 2009 Land Act (i) foreigner are not
World Bank 8.5 4.4 assets. As a result of the proliferation of small arms, too
permitted to own land in South Sudan; they can, however,
Other donors (10) 18.6 9.7 few productive opportunities for unemployed youth,
conditionally, lease land (for a maximum of 99 years);
distrust among many tribes and ethnic groups, and poor
Total 192.2 100.0 (ii) community lands may be allocated for investment
and inadequate physical infrastructure, especially in the
purposes but that investment must reflect an “important
Source: MoFEP, AIMS database.
rural areas, violence and insecurity remain and constitute
interest of the community” and contribute to economic
a source of concern across South Sudan. Criminal cattle
and social development of the local community; and
raids have become a frequent phenomenon, leading to loss
(iii) land acquisition of 250 fedans (104 hectares must be
6.6 Managing Risks productivity-enhancing knowledge and skills. Livestock
farmers are in need of a transformational mindset change
of life and destruction of economic assets.
approved by state authorities). If South Sudan is to transit
from traditional farming to FDI-led commercial farming,
and Uncertainties and must, therefore, be trained to see the advantages
of and embrace the commercial model. It is also well
Insecurity is both a threat to personal safety as well as an
then access to land must be equitably liberalized. Having
impediment to economic transformation and development.
recognized that South Sudan suffers from a deficit of trust a uniform national land law and a clearly defined and
The main risks and uncertainties facing the strategy The security of and confidence in large-scale and long-
among South Sudanese ethnic/tribal groups, which has transparent ownership right and obligations will facilitate
outlined in this strategy for attaining agricultural term projects are crucial decision variables for foreign
been the source of ethnic/tribal tensions, which can very the decision of potential foreign investors in agricultural
transformation and a sustainable agriculture – led investors, which can have far reaching consequences for
well obstruct the implementation of the strategy. To this land in South Sudan. In addition, given the predominant
growth of South Sudan include: (i) doubts about South investment and medium-term development and economic
end, the government must develop and implement an role that women play in farming in South Sudan, the laws
Sudan’s ability to effectively implement the strategy; (ii) growth. If farms are threatened by violence, theft, or
awareness campaign aimed at promoting peace and good must be gender sensitive and accord women unfettered
continued insecurity in parts of the country; (iii) unclear government expropriation then investors will pull their
neighborliness among the ethnic groups, particularly at the right to own and develop land. There is, therefore, a need
land laws; (iv) acute infrastructure shortage, including projects and funding from the country and new investors
state and local levels where tolerance and amicable social for the government to adopt land development policies
the cost financing rural connectivity; and, (v) weak will be reticent to enter. Investors seek projects with low
interaction are desirable for the formation of cohesive that allow potential investors to acquire, develop land
entrepreneurship and the high cost of labor in South political risk and strong government support.
cooperatives and other farmer groups. and reap the benefits of their investment in commercial
Sudan. These risks must be managed if the strategy is to
agricultural land.
succeed. The following paragraphs highlight the risks as Security, peace and good governance are cornerstone
well as propose some remedial measures to attenuate the There is also a need to harness and streamline the wide array pillars of the SSDP. In this regard, the Government is
of donor and NGO systems in South Sudan, transforming
risks.
them into a nucleus for strategy implementation. The
working towards providing a peaceful and stable political
and economic environment. To assuage potential investors
6.6.4 Acute Shortage of Infrastructure
government should establish a national coordination task concern about security of investment, the government
6.6.1 Ensuring Effective force. The task force, to be co-chaired by the Ministers for should be willing to provide stabilization clauses, ensuring Poor and inadequate physical and soft infrastructure
Commerce and Industry and Investment and the Minister that the regulatory framework governing investment in is a binding constraint to economic development in
Implementation of the Strategy for Agriculture and Forestry, should include representative land are not threatened (i.e., investors do not want the South Sudan. A central assumption of the agricultural
of states, private sector, donors and NGOs. In addition, project’s original economic equilibrium to be in jeopardy). transformation strategy outlined in this Report is that
Key implementation risks include organizational inertia the government should convene sector-working groups The Government should also establish dispute settlement alongside investment in agriculture there will be a parallel
and the lack of implementation and coordination capacity to drive the implementation of the subsector strategies. mechanisms and arbitration processes that are transparent development of rural infrastructure that will serve as an
at the national and state levels. The social model, which Already, there exist working groups for Livestock, Cereals and viewed as fair and equitable by all potential parties in incentive for smallholder and commercial farmers to
has impeded development of the livestock sector, and High Value Fruits and Vegetable. Their knowledge any dispute. increase production knowing that markets are accessible.
illustrates one of the core implementation risks that must and commitment should be harnessed to drive the If rural connectivity is not improved, then the strategy
be addressed. implementation of the sector strategies. will be in jeopardy. From the analysis undertaken in this
6.6.3 Unclear Land Tenure Report it is obvious that government must increase its
To this end, there is a need to rebuild South Sudan’s Furthermore the government should strengthen the South
institutional and human/technical capacities, which were Sudan Investment Authority (SSIA), enabling it play its and Demarcation70 budgetary allocation for rural infrastructure in order to
improve rural connectivity. One of the ways of through
depleted as a result of decades of civil conflicts and wars. role of identifying, attracting and supporting the type of which allocation to rural roads can be increased is by
Agricultural institutions need to be rehabilitated or rebuilt foreign direct investors whose commercial interests are There is a risk that current land acquisition laws may
adopting cost–saving material and technology measures
from scratch. In addition, individuals and organizations aligned with the strategies outlined in this Report. Such hinder or complicate access to land by a SIAP. This is due
that will reduce the cost and budget allocation to interstate
must be trained and empowered with skills and knowledge investors can enhance capacity building, bring managerial
needed to fulfill their roles. Farmers must be trained on expertise and support infrastructure development in
70 In early 2009 USAID funded 2-year land tenure program which is helping the government efforts to develop a new land policy for South Sudan.
modern farming methods, including the acquisition of South Sudan. 71 See “Laws of Southern Sudan: “The Land Act, 2009”
72 See IDS Academie, “South Sudan –Food Security and Land Governance Fact Sheet”, 2011 and D. Deng: “Land belongs to the community, Demystifying the ‘global land
grab’ in Southern Sudan, a paper presented at IDS conference in April 2011
roads, thus channeling the savings towards the financing High cost of labor. The country suffers from an aberration
of more rural/feeder roads. Another plausible measure of two twin risks: high labor cost and low labor
will entail shifting part of the cost of enhancing rural productivity. Furthermore, given the high cost of living in
connectivity to the SIAP as an integral part of any SIAP South Sudan and the experience of other natural resource-
agreement. As a general guiding principle, for all public dependent countries, it is unlikely that labor wages - the
investment in infrastructure, it is important to ensure most significant component of total farm production cost -
that government expenditure is used to “crowd in” private will decline in the short to medium term. Thus, reductions
investments rather than discourage them. in farm production costs in South Sudan would have to
accrue from a combination of increased cropland ushering
in economies of scale and labor productivity gains through
6.6.5 Weak Entrepreneurship mechanization of some of the production processes. Sebit
(2011) shows that when tractors are used, 16% less labor
and High Cost of Labor is used and higher output realized. Further expansion of
such practices will have greater productivity impact and
lower the unit cost of labor. Furthermore:
Weak entrepreneurship. The agricultural sector in
South Sudan is constrained by weak entrepreneurship
• South Sudan should accelerate the pace of formulating an
base and the absence of commercial orientation: to date
agricultural mechanization policy that will help improve
agriculture remains a subsistence activity by smallholder
the use and efficiency tools, implements, and machinery
farmers using simple implements; the average farm size
in agricultural production and associated value chain
is small and in the range of 0.4-1.7 hectares. Intensive
operations. In this connection, the government has
farming undertaken with little fertilizer application has
to recognize that the private sector is better placed
progressively lowered yields and depleted soils. There
to provide mechanization services and should strive
are very few cooperatives and little commercial farming
to create conditions for self-sustaining development
and/or the adoption of modern farming technologies.
of mechanization with minimal direct government
Farming remains primarily rain-fed; irrigation farming is
intervention. There is need to build on some of the
still limited. In addition, livestock farming is dominated
already existing and successful private sector-driven
by culture and tradition that lack business orientation
models in Upper Nile, Unity, and Central Equatoria;
(cattle, for instance, is still raised for prestige and for
dowry payments rather than for meat, milk, hides and
• In tandem with mechanization, South Sudan should
other by-products). The private sector is nascent and has
pursue other productivity enhancing measures if it is
weak business management skills. These characteristics
to reduce farm production costs. Key to this will be the
must begin to change and change at a fast pace if the
use of tradable inputs and the provision of advisory
transformation of the sector is to gain traction and
services on technology and other production related
drive change and foster economic growth. To maximize
activities; and,
growth in the agriculture sector, the government
should encourage the transition to a culture that values
• The government should also realize that to achieve
innovation, competition and commercial success and
yield potentials for improved varieties will necessarily
create a business environment that welcomes ideas, talent,
require significant increase in the level of fertilizer use
and capital, regardless of its origin.
in South Sudan.

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6 Development of Agriculture

Development of Agriculture low-output subsistence agriculture instead of production

in South Sudan services, and irrigation development; (ii) the difficulties

Table 6.1: Land Use in South Sudan (In hectares)

Category Area Share (%)

Source: Annex Table 6.1.

6.1.2 Institutional Arrangements is to transform agriculture from traditional subsistence

Figure 6.1: Constraints for Crop Cultivation in South Sudan

Pests/crop diseases 21%

Shortage of seeds 18%

Erratic rainfall 17%

Lack of agr. tools 13%

Poor soil fertility 9%

Limited access to land 3%

0% 5% 10% 15% 20% 25%

Source WFP-FAO-MAF (2006).

59 UNCTAD Trade Statistics, 2010.

Box 6.2: Expanding Horticulture Production: a Kenyan Example Company Profile:

Source: FAO, South Sudan, 2010.

Investment in Agriculture • Investor Controlled Model, under which the investor

69 See Annex 7 for a discussion of the basis for these estimates.

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