Download or read book The Role of Law and Regulation in Scaling Up African Value Chains written by Katrin Kuhlmann and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Like agricultural value chains themselves, laws, regulations, and policies form an intricate system that impacts agricultural development and opportunities for small farmers. This system, often collectively referred to as the “enabling environment,” affects all aspects of value chain development and includes a variety of functions and actors. Law, regulation, and policy can influence farmers' ability to use land and water, obtain financing and inputs, and access services and broader markets. A deeper understanding of the role of legal and regulatory issues in value chain development is needed both as a component of inclusive agricultural development and as a system in and of itself. How legal and regulatory systems are designed and, importantly, implemented, will impact the degree to which markets in sub-Saharan Africa and other parts of the world can grow in an efficient, equitable, and sustainable way. The enabling environment is a critical factor in determining whether value chain interventions will succeed and can be brought to scale, particularly in a way that is inclusive of the needs of small farmers and women. This work examines the legal and regulatory framework around value chain development, relying upon a body of work and methodology developed by the New Markets Lab (NML) and International Fund for Agricultural Development (IFAD), including IFAD's Scaling Up framework and initiatives on south-south collaboration. It represents the first stage of a timely and necessary exploration of these issues and will be followed by additional work by the authors and other partners. This Occasional Paper presents a framework for approaching legal and regulatory challenges to help bring value chain development to scale. It explores common legal and regulatory challenges at different stages in the value chain, namely: access to land, water, and productive resources; access to finance; access to inputs; access to services; and access to markets. Appendices one and two outline the scope of this project and propose a second, more in-depth stage to follow.Without question, land tenure is a significant issue in value chain development and food security. Land is a main source of employment and a critical factor in increased agricultural investment, and balancing the needs of small farmers and communities with agricultural investment is of particular significance for inclusive value chain growth. Land tenure is also particularly important issue for women in the agricultural sector, many of whom must also contend with gender discrimination. Laws and regulations governing land tenure can be complex, with customary and formal land tenure systems operating alongside each other in many countries. Enabling small producers and women to better understand and enforce their rights within these systems is critical to value chain development. Incomplete and inequitable systems for registering land and resolving disputes can limit opportunities for employment and investment and constrain productivity. Laws and regulations around water access are another factor in increasing productivity and improving value chains, as is the system regulating labor. Closely related to issues around land tenure are legal and regulatory issues around access to finance. These issues impact farmers of all sizes and intersect with other areas of law and regulation. Since land rights are often looked to as a form of security in financial transactions, insecure or unclear property rights can impact farmers' ability to obtain financing. In addition, gaps in laws and regulations governing deposits, loans, investment, contracts, and insurance all present particular challenges for small and medium-sized farmers' access to credit. Laws and regulations around remittances are also significant due to their increasingly important role as a means of finance in developing countries. Third, laws and regulations governing inputs, especially seeds and fertilizer, play a significant role in value chain development. Lengthy processes for release of new seed varieties, costly seed certification processes, and uncertainty around application of quality standards and sanitary and phytosanitary (SPS) rules can limit the availability of (and access to) high-quality seed. Regulations around fertilizer can also affect access to a much-needed input. Access to essential market services, including transport, storage, and distribution services, along with financial and legal advisory services, are also integral to well-functioning agricultural value chains and are directly impacted by law and regulation. In many countries, regulations may limit market entry, making it difficult to ensure adequate competition in the market and the availability of services that can respond to the needs of small farmers. Finally, laws and regulations around access to markets, at the domestic, regional, and international levels, impact agricultural value chain development. Harmonizing and coordinating administration of sanitary and phytosanitary (SPS) standards at multiple market levels (within and between regions and internationally), implementing clear and consistent packaging and labeling requirements, and improving customs and borders procedures can improve access to larger markets and impact the growth of value chains. Understanding and addressing these legal and regulatory components comprehensively and in a manner that incorporates the needs of small farmers and women, who are often left out of rulemaking systems, will result in greater opportunity as value chains develop. As a result, this work focuses in particular on various issues within legal systems and how individual issues are addressed within these systems. Taking value chain development to scale and achieving systemic change may also call for new approaches that implement best practices in law and regulation (including those arising from regulatory best practices in the global south and south-south collaboration), ways in which to bridge public and private efforts, and an increased ability to work through challenges in the system as they arise.