Stakeholder-driven funding mechanisms for agricultural innovation: cases from Sub-Saharan Africa

This bulletin focuses on experiences in Tanzania and Benin with stakeholder-driven funding mechanisms for agricultural research and development. This paper discusses how the reorganisation of funding mechanisms for agricultural innovation, with stakeholder management, could combine greater efficiency. It goes on to highlight case studies to show that matching public financing with private financing can enhance ownership and the sustainability of these mechanisms.

Some of the important findings include:

• in sub-Saharan Africa it has become increasingly difficult to mobilise financial resources for agricultural research and development (R&D) from the public sector. A trend exists among donors to channel more of their funds through the demand side
• the resulting pressure on resources calls for alternative financing mechanisms in order to generate incremental funds and use these resources more effectively
• stimulating agricultural development requires important changes (technological, institutional and organisational innovation) to the agricultural innovation system, using amulti-stakeholder approach. One such key innovation is establishing funding mechanisms for technology development controlled and managed by stakeholders
• effective functioning of these innovative funding mechanisms depends on far-reaching institutional changes, such as: enhancing client control over priorities and resources; expanding the range and skills of service providers; and making organisational changes in all stakeholder organisations, whether public sector, private sector or farmers’ organisations.
  

In conclusion, this bulletin emphasis that multi stakeholder-driven funding mechanisms for agricultural innovation will interest those who are involved in stimulating agricultural innovation for rural development. Effective mechanisms remain to be developed to ensure that stakeholders really own the local funds and that poor farmers have a real voice in resource allocation. Decentralised and deconcentrated local innovation development funds have been found to be more successful in technology generation than over other funding mechanisms. This is a result of the competitive element which enhances the quality of research andthe sense of ownership by farmers and other stakeholders.