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Cost Benefit Analysis of Senegal’s Rice Value Chains

Mikhail Miklyaev (), Majid Hashemi and Melani Schultz ()
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Melani Schultz: International Development Group

No 2017-04, Development Discussion Papers from JDI Executive Programs

Abstract: This paper presents the findings of the CBA of Senegal’s rice value chains (looking at rain-fed and irrigated rice specifically). The analysis looks at evaluating the recent Feed the Future (FtF) activities implemented under the PCE (Projet de Croissance Economique) in Senegal. Overall, the analysis points to two important conclusions: 1. The GoS, other donor partners, and the PCE project significantly improved the productivity of the irrigated rice VC over the last five years. From an economic point of view, the benefits of domestic rice production currently outweigh the costs, even with GoS subsidies and donor support. 2. The ERR is only one percent above the discount rate of 12%, emphasizing the importance of a well-defined exit strategy for both the GoS and international donors. The removal of subsidies or the inability of the budget to sustain such significant fiscal outflows may result in adverse effects throughout the VC.

Keywords: : cost-benefit analysis; investment appraisal; stakeholder analysis; dairy value chain; marketing; Senegal. (search for similar items in EconPapers)
JEL-codes: D13 D31 D61 D62 E23 H42 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2017-04
New Economics Papers: this item is included in nep-mac
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