National Expert Calls for Establishing a Public-Private Partnership Chamber to Invest in Agriculture

By Ahmed_ALtaiar, 1 December, 2024

 

Investment Magazine / Written by Ahmad Al-Tayyir
A national expert in agricultural policies, Engineer Ali Ashish, has called for the formation of a Public-Private Partnership (PPP) Chamber aimed at providing services and facilitating investments in agriculture. He emphasized the importance of assisting the private sector in establishing agricultural institutions and companies, as well as developing plans, feasibility studies, and various programs to secure financing for agricultural development initiatives.

In a recent study addressing Yemen's agricultural policies, Ashish stressed the necessity for the private sector to offer modern agricultural services, including mechanization (importation, distribution, leasing), irrigation services, terrace protection, and the construction of dams and barriers. He also pointed out the importance of engaging in the improvement of local breeds and adopting artificial insemination techniques.

Engineer Ali Ashish, a member of the Policy Committee, explained that the private sector has lucrative opportunities to invest in field crops such as wheat, barley, corn, and legumes through a contractual farming system. He also highlighted the significant investment potential in the livestock sector, including dairy production, locally produced animal feed, and the improvement of local livestock breeds through genetic enhancement and artificial insemination.

Ashish emphasized that state institutions should encourage the private sector to redirect a portion of their capital—whether saved or active in the import sector—into agricultural investments. He also stressed the importance of creating a favorable investment climate to empower the private sector to meet its national responsibilities.

He further called for investment in the local production of seeds, rather than relying on imports. He urged the Ministry of Agriculture, the Ministry of Fisheries and Water Resources, and affiliated agencies to remove the challenges hindering the private sector’s role in agriculture.

“There needs to be a long-term strategy covering all agricultural activities—plant and animal production, agricultural processing, extension services, water harvesting, veterinary care, research, and seed and seedling production,” Ashish said.

Ashish also called for a review of all agricultural development policies by the Ministries of Agriculture, Fisheries and Water Resources, Economy, Industry, Investment, the private sector, and other stakeholders. He advocated for moving away from the policies of the World Bank, which have dominated the agricultural sector.

He reminded private sector institutions of the importance of recognizing that transforming national capital from being focused on imports to local production would not diminish their commercial role. In fact, they remain the market leaders both locally and internationally.

“The private sector should not delay in promoting ‘Yemenization’ of products. The resources and potential are available, and this should be done gradually. Every product produced locally will reduce the import bill, in line with a structured mechanism that aligns with the import substitution policy,” he said, reaffirming that the private sector plays a vital role in driving agricultural development, which requires collective efforts to enhance domestic production and self-sufficiency.

According to Ashish, the agricultural sector has suffered from negative repercussions due to economic and financial reforms, which have impacted the livelihoods of farmers, destroyed some of the sector's resources, and led to a decline in the competitiveness of local products. This has contributed to a decrease in the agricultural sector’s contribution to the GDP and a drop in the workforce percentage in the sector.

He also noted that final touches are being put on developing sound policies that aim to achieve the country’s goals in the agricultural sector through a clear, unified national framework for agricultural policies. This framework will assess the current state of policies, organize their management, ensure good governance, and integrate them into the country’s institutional performance. This approach will reduce the risks of poor management of agricultural public policies and ensure the integration of the roles of relevant agencies in the agriculture sector with those in other sectors.

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