Enabling Policy Environment for Functional Markets and Transformative Institutions

ASARECA has made significant contribution in policy analysis and advocacy in the past and, therefore, this thematic area will build on these past successes and lessons learned. The focus for this invetsment area is, therefore, to support and advocate for creation of enabling environment, establishment of functional and structured regional markets and strengthening of regional institutions.

The strategic result areas required to deliver this investment area include:

1. Support and advocate for establishment of transformative enabling policy and regulatory environment;
2. Support and advocate for establishment of functional and structured regional input and output markets; and
3. Support and advocate for establishment of transformative regional institutions and institutional arrangements.

Agricultural policies are a powerful tool for enhancing sustainable agricultural transformation and development as they provide incentives to make choices for agricultural production and, at the same time, address the need for functioning markets and institutions to handle increased production. In majority of the ECA member States, policies for agriculture consist of government decisions that influence the level and stability of input and output prices, public and private sector investments, costs, revenues and allocation of resources. These policies affect agriculture either directly or indirectly and are all aimed at improving agricultural production. To achieve inclusive and sustainable agricultural transformation in the ECA sub region, transformative institutions and institutional arrangements are needed to facilitate increased agricultural production, productivity and value addition.

Under this thematic area, ASARECA supports the identification of critical regional policy, markets and institutional gaps and advocates for convening of specific processes for addressing them. Work in this area builds on experiences from the former Eastern and Central Africa Programme for Agricultural Policy Analysis (ECAPAPA) and Policy Analysis and Advocacy Programme (PAAP) of ASARECA. ASARECA continues to engage the RECs as well as the African Union Commission (AUC) and NEPAD to leverage appropriate convening power as key institutions in facilitating adoption of harmonized policies, establishment of functional and structured regional markets and transformative institutional arrangements.

• Some of the major challenges, stated in the opportunity format, that investments in this area shall address include:
• Harmonizing the national and regional policies on division of labour between research and extension systems to improve the uni-directional linear model of research-extension-farmer that has been shown to be ineffective.
• Strengthening partnerships among relevant organizations and agencies involved in advocacy and formulation of agriculture related policies to advance the ECA sub regional AR4D agenda.
• Strengthening policy research and analysis to generate data and information for use in formulating evidence based policies and regulatory frameworks.
• Improving communication between policymakers and researchers and packaging of information in forms that can be easily understood by policymakers.
• Enhancing market research and market development to improve efficiency of market systems and achieve competitive advantage.
• Improving market facilities, institutions and institutional arrangements to enhance market access.
• Enhancing agricultural product diversification and value addition to capture export markets and reduce vulnerability of incomes.
• Advocating for establishment of enabling environment to facilitate exploitation of the regional market potential created by regional integration and globalization.
• Strengthening farmer and producer organizations to improve their participation in policymaking, trade negotiations and access to inputs and outputs markets.​
• Strengthening capacity of national systems to enhance implementation and enforcement of national laws, regulations and standards to improve quality control and facilitate trade.
• Improving on the wide variations in regional policy implementation practice among ECA member States.
• Addressing the weaknesses in harmonization and implementation of intellectual property rights to improve sharing of technologies, germplasm exchange and investment in the agricultural sector especially by the private sector.