Regional Economic Growth Programs

1
Regional Economic Growth Programs

• Global Competitiveness Hubs and Bilateral
  Missions implementing the African Growth and
  Competitiveness Initiative (AGCI)
• Regional Agriculture Program and the Initiative
  to End Hunger in Africa (IEHA), in several cases
  components are implemented by the Global
  Competitiveness Hubs and Bilateral Missions

2
African Growth and Competitiveness Initiative
(AGCI)

• The goal of AGCI is to promote the export
  competitiveness of SSA
• enterprises in order to expand African trade with
  the U.S., with other
• international trading partners and regionally
  within Africa by
• improving the business and regulatory environment
  for private sector-led trade and investment
• strengthening the knowledge and skills of SSA
  private sector enterprises to take advantage of
  market opportunities
• increasing access to financial services for trade
  and investment and,
• facilitating investments in infrastructure.

3
African Growth and Competitiveness Initiative

• Objective 1 Improve the Business and Regulatory
  Environment for Private
• Sector-led Trade and Investment
• The expected results of the improved business and
  regulatory environment objective include
• African Growth and Opportunity Act (AGOA) Forum
  support provided
• Improved capacity of SSA countries to meet World
  Trade Organization (WTO) agreements
• A 25 reduction in the time and cost to establish
  a formal business and comply with formal business
  regulations, in participating countries
• Reduced tariff and procedural barriers affecting
  at least 50,000 enterprises in at least 25 of
  AGOA eligible countries. Work with Regional
  Economic Organizations to reduce mean tariff
  rating (scale from 1 to 10, World Bank Doing
  Business Indicator), particularly along the
  selected transportation corridors and,
• Improved intellectual property rights laws and
  regulations in at least six countries.

4
African Growth and Competitiveness Initiative

• Objective 2 Improve the Market Knowledge,
  Skills, and Abilities of Private Sector
• Enterprises to Trade
• Results of increased private sector
  competitiveness in AGOA eligible countries
  include
• Improved enterprise competitiveness and expanded
  domestic and international sales, including
  meeting AGOA requirements
• Adoption of more competitive business practices
  to meet market and regulatory requirements by
  over 25,000 employees of African enterprises,
• 20,000 enterprises, trade and business
  associations are able to analyze market
  information and make changes to product
  development and marketing as needed
• Stronger links in value chains, establish
  business linkages to the U.S., African
  businesses, and businesses in other continents
• Improved ability of the private sector to meet
  international requirements for sanitary and
  phytosanitary standards for exports
• Private business or trade associations are
  effectively promoting public sector reform in
  trade, investment, and business development
  regulations in at least 25 of AGOA eligible
  countries.

5
African Growth and Competitiveness Initiative

• Objective 3 Increase Access to Financial
  Services for Trade and Investment
• Expected results of facilitating enterprises to
  gain access to finance are to increase
• the flow of finances to enterprises through major
  reforms in several AGOA eligible
• countries in areas such as the following
• Improved information flows and reduced credit
  risk through introduction/expansion
  of credit bureaus, assuring the participation of
  small and medium borrowers, including women
  entrepreneurs (e.g., countrys rank for ease of
  getting credit and percent of tertiary business
  students that are women)
• Expanded access to asset-based finance by
  facilitating the adoption of a system of
  harmonized collateral lending in at least 20 of
  the SSA AGOA eligible countries, assuring access
  to small and medium borrowers, including women
  entrepreneurs
• Increased proportion of credit to the private
  sector in the banking sectors portfolio and,
• Strengthened borrower financial transparency,
  such as countries credit information index (scale
  from 0 to 6 World Bank Doing Business).

6
African Growth and Competitiveness Initiative

• Objective 4 Facilitate Investment in
  Infrastructure and Associated Governance
• Increased investments and improved economic
  governance related to trade, where investments
• could total over 1.0 billion dollars in AGOA
  eligible countries, resulting in decreased costs
  of
• production and delivery of goods and services.
• Reduced time and costs of trading across borders
  along at least five major transportation
  corridors by leveraging investments and
  financing of the road infrastructure and
  facilitating one stop border crossings and
  helping to introduce procedural reforms and
  improved economic governance for trade
  facilitation measures particularly customs and
  procedural reforms, at border crossings.
• Increased availability of affordable and reliable
  supply of energy in the West Africa Power Pool,
  the Southern Africa Power Pool, the Central
  African Power Pool, and the East Africa Power
  Pool
• Expansion of information and communication
  technology
• Diversification in the number of institutions
  investing in infrastructure to include 1/3
  capital markets, 1/3 financial institutions, and
  1/3 host country governments and,
• Local capacity built to develop, finance,
  construct, operate, regulate, manage, and
  maintain economically viable infrastructure
  projects.

7
Southern Africa Regional Program

• In FY 2009, the Trade Hub will focus on
• Trade and investment enabling environment
• Financial services
• Modern energy services
• Agriculture enabling environment
• Private sector competitiveness

8
Trade and Investment Enabling Environment
Southern Africa Regional Program

• Regional support to the Southern African
  Development Community (SADC) through MOUs signed
  2007 (Trade) 2008 (Transport)
• SADC Trade Protocol Audit Monitoring
• Trade capacity building in the SADC Member States
• Modernization of trade-related laws and
  regulations to reduce burdens to businesses
• Facilitate WTO Trade Facilitation Assessments in
  SADC region
• Assist with WTO Trade Policy Reviews
• Assist with WCO Time Release Studies
• Assist with the implementation of the Single
  Administrative Document (SAD500)
• Support key transport initiatives through
  regional corridors (mainly the Trans-Kalahari,
  Maputo and Dar corridors)
• Support the development of good road user
  policies and practices
• Mainstreaming trade through INSAT, videos, Hub
  Happenings, website, outreach events

9
Financial Services
Southern Africa Regional Program

• Assist SADC Members States with WTO financial
  services liberalization initiatives.
• Assist SADC Member States with regional
  integration and the establishment of a SADC Free
  Trade Area to prepare for Customs and Monetary
  Union.
• Liaise with SADC Member States and the World Bank
  concerning Making Finance Work for Africa.

10
Modern Energy Services
Southern Africa Regional Program

• Regional support to the Southern African
  Development Community (SADC) through MOU signed
  with Regional Electricity Regulators Association
  of Southern Africa (RERA) in February 2008.
• Capacity building of regulators and utilities in
  the SADC Member States.

• Modernization of energy-related laws and
  regulations to reduce barriers to private sector
  participation in the energy sector.
• Facilitating late state energy-related
  transactions to leverage funds in the energy
  sector.

11
Agriculture Enabling Environment and Private
Sector Competitiveness
Southern Africa Regional Program

• SPS Annex to the Trade protocol
• Addressing critical regional SPS and
  certification issues.
• Promoting understanding of private standards.

• Assistance to SADC exporters to reach the South
  African market.
• Sourcing inputs for AGOA specialty food products.
• Collaborating with other donors to foster
  agricultural productivity and jobs in Mozambique
  and Zambia.

12
Private Sector Competitiveness AGOA Support
Southern Africa Regional Program

• Assisted more than 100 companies with requests
  for assistance on export logistics.
• Facilitated and responded to more than 1,000 AGOA
  information requests.
• Assisted more than 50 U.S. Government
  stakeholders with trade and AGOA-related
  requests.
• Saved firms 40,000 in duties (Nandos and
  Elephant Pepper).

13
Private Sector Competitiveness Trade Shows
Southern Africa Regional Program

• Fancy Food Show Introducing African specialty
  foods to the United States.
• MAGIC Apparel Show Exhibiting Africa as a
  sourcing destination of choice for U.S. apparel
  buyers. The February and August 2008 show may
  yield more than 20 million in new exports.

• Business to Business events 2 days of direct pre
  matched meetings resulting in 22 million from
  2007-2008.
• Direct Buyer Engagement Critical resource for
  sourcing information in Southern Africa.

14
Hubs Based in Accra, Ghana and Dakar, Senegal
West Africa Regional Program
Trade and Investment Trade Infrastructure Finan
cial Sector Services

15
Hub Based in Nairobi, Kenya
East and Central Africa Regional Program
Trade Capacity Building AGOA Customs
Modernization Transport Efficiency Energy
Finance

16
Contacts

• Southern Africa
• Tina Dooley-Jones and Neil Boyle, USAID
• Maxine Kennett, AECOM, mkennett_at_satradehub.org
• Amanda Hilligas, Carana Corporation,
  ahilligas_at_satradehub.org
• Trade Hub Website www.satradehub.org
• West Africa
• Jeffrey Cochrane, USAID
• Vanessa Adams, Carana Corporation,
  vadams_at_watradehub.com
• Trade Hub Website www.watradehub.com
• East and Central Africa
• Candace Buzzard, USAID
• New Contract is under Procurement