The project for the development of livestock and fish farming value chains (PD-CVEP) stems from the desire of the Government of Cameroon to actively involve the livestock and fisheries sub-sector in the search for economic growth that will generate jobs and substantial income for the rural world. Its instruction follows the Government's request dated July 13, 2015 requesting the Bank to provide financial support likely to contribute to achieving the growth rate of 9.3% assigned to this subsector under the National Agricultural Investment Plan (NAIP). This plan was validated in April 2014 and requires additional resources of about 1500 billion CFA francs for its implementation.

Initially, this operation should be a component of the Agricultural Value Chain Development Program (PD-CVA). For reasons related on the one hand to the principle of institutional anchoring of the programmes and projects enshrined in Law No. 2007/06 on the new financial regime of the State and on the other hand to the exhaustive consideration of the needs of the livestock sub-sector and the maintenance of the internal coherence of the operation, it was agreed to separate the PD-CVEP from the PD-CVA.

This five-year project, which will cost EUR 99.27 million (including EUR 84 million from the AfDB), addresses the concerns of modernising the productive apparatus and will ensure the food and nutritional security of the population and the profitability of cattle, pigs and fish farms. It is also a question of highlighting the contribution of the enormous potential of this sub-sector to the consolidation of sustainable and inclusive economic growth and to enable Cameroon to fully play its role as the main production basin of the Central African sub-region.

It will focus on strengthening the links in the value chains of the three selected sectors, from genetic improvement to the marketing of products, including fattening through proper feeding, the construction of slaughtering infrastructure and livestock and fish farming equipment. The involvement of the private sector in the commercial, industrial and financial sectors is an option that will facilitate the establishment of strong economic links between the actors of the value chains concerned and banks and MFIs with a view to facilitating their access to credit. It will also contribute to capacity building of the actors involved in the three selected value chains.

The diagnosis of the sub-sector and the ongoing operations have made it possible to orient the project's intervention in three major sectors: cattle, pigs and fish. The value chain approach has been adopted to strengthen the productivity and competitiveness of these sectors with the involvement of the private sector of trade, industry and banking while offering business creation opportunities to young graduates.

The project has an economic rate of return of 24% and an internal rate of return of 22% with a net present value of 2.95 billion CFA francs at a discount rate of 12%.

Needs assessment: Consultations with various actors in the agro-pastoral and fish farming sub-sector, including professional and trade unions of butchers, breeders and fish farmers, officials of technical ministries, municipalities, FEICOM, ANOR, SODEPA, large-scale distribution (CENTRAGEL, CASINO, MAHIMA and SANTA LUCIA) and commercial banks as well as MFIs made it possible to assess the needs of the three sectors. The results of these consultations can be summarized as follows: (i) the urgency of ensuring the availability of bovine, porcine and ichnological breeds/species with high genetic performance and good nutrition for animals and fish with a view to a rapid increase in production (ii) the need for infrastructure to facilitate access to slaughter (clandestine slaughter rate 60% for cattle, 80% for sheep and 90% for pigs) and markets; (iii) the need to strengthen and structure the actors' organizations so that they can access financing and technological innovations; (iv) the need to support microfinance institutions (MFIs) and commercial banks through the establishment of guarantee and refinancing mechanisms to increase the supply and accessibility to credit; (v) the need to reform the management of the transport and distribution of meat and fish by supporting the modernization of logistics and compliance with sanitary and hygienic standards, and (vi) the need to facilitate access to seeds, food and other inputs necessary for pastoral and fish production.

The Bank's added value: The PD-CVEP is part of the contribution to the financing of the national agricultural investment program (2014-2020), estimated at 1500 billion CFA francs and the Bank's commitment amounts to nearly "300 billion CFA francs". In addition, the PD-CVEP consolidates the Bank's involvement in the diversification of the country's economy and will create synergy with the Bank's other interventions, in particular the PD-CVA, Grassfield and the transport projects that have opened the corridors with the prospects of opening up to external markets (Economic Community of Central African States – ECCAS and Nigeria).

Knowledge development: Given its innovative nature, the PD-CVEP includes several axes relating to the integration of the different links in the livestock and fish farming value chains by addressing bottlenecks in their operation and promoting a framework for collaboration between its actors. In addition, the PD-CVEP will pilot in these value chains: a) inclusive financing mechanisms capable of stimulating private investment and b) youth entrepreneurship through incubation. In addition, a system for monitoring the dynamics of the fish and fishing sector will be set up, which will help the Government to establish a policy of regulating fish imports in relation to the development of local production. Finally, the initiative to extend social protection in rural areas is a process that will make it possible to strengthen the comfort of young people who wish to get involved in agriculture. All these interventions will constitute pilot experiences for the Bank, the Government and other stakeholders in the value chains and will generate knowledge of great value for future developments in agricultural value chains in Cameroon and beyond.