USAID Southern Africa Trade and Investment Hub FY2017 Workplan

USAID Southern Africa Trade and Investment Hub FY2017 Workplan

Increasing efficiency and opportunities to trade and invest

Advancing new technologies

Sustainably reducing poverty

Revised June 2017

USAID Southern Africa Trade and Investment Hub FY 2017 Work Plan

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USAID Southern Africa Trade and Investment Hub FY2017 Workplan Contract No. AID-674-C-16-00004 Disclaimer

The views expressed in this publication do not necessarily reflect the views of the U.S. Agency for International Development or the United States Government.


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Table of Contents

Table of Contents .......................................................................................................... 3

List of Abbreviations ..................................................................................................... 6

Introduction ................................................................................................................... 9 The Case for Trade, Growth and Regional Integration ............................................................ 9 Implications for SATIH: Market-Driven Technical Assistance ............................................. 11

Executive Summary .................................................................................................... 14 Finance and Investment .......................................................................................... 15 Export Competitiveness ........................................................................................... 15 Agribusiness Trade................................................................................................... 16 Enabling Environment and Trade Facilitation ....................................................... 16

1. Agribusiness Trade ............................................................................................ 19

1.1 Regional Context and Overview ..................................................................... 19

1.2 Vision and Strategy ...................................................................................... 20

1.3 Key Activities ................................................................................................ 21

1.4 Key Initiatives .............................................................................................. 24

1.5 Annual Targets and Expected Results ........................................................... 27

1.6 Strategic Constraints Analysis ....................................................................... 27

1.7 Key Events ................................................................................................... 28

1.8 Agribusiness Trade GANTT .......................................................................... 30

2. Export Competitiveness ..................................................................................... 31

2.1 Build Capacity to Increase AGOA Utilization ................................................. 31 2.1.1 Context and Overview ..................................................................................................... 31 2.1.2 Vision and Strategy ........................................................................................................ 36 2.1.3 Annual Targets and Expected Results ........................................................................... 37 2.1.4 Key Activities ................................................................................................................. 37 2.1.5 Strategic Constraints Analysis ....................................................................................... 39 2.1.6 Key Events ..................................................................................................................... 40

2.2 Specialty Foods ............................................................................................. 41 2.2.1 Regional Context and Overview ..................................................................................... 41 2.2.2 Strategic Constraints Analysis ...................................................................................... 42 2.2.3 Vision and Strategy ....................................................................................................... 42 2.2.4 Annual Targets and Expected Results .......................................................................... 43


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2.2.5 Key Activities ................................................................................................................. 43 2.2.7 Key Events ..................................................................................................................... 43

2.3 Nuts, Dried Fruit, Pulses and Sesame .......................................................... 44 2.3.1 Overview ........................................................................................................................ 44 2.3.2 Key Activities ................................................................................................................. 45 2.3.3 Key Events ..................................................................................................................... 45

2.4 Accessories and Footwear ......................................................................... 46 2.4.1 Context and Overview .................................................................................................... 46 2.4.2 Vision and Strategy ....................................................................................................... 49 2.4.3 Annual Targets and Expected Results .......................................................................... 50 2.4.4 Key Activities ................................................................................................................. 50 2.4.5 Strategic Constraints Analysis ....................................................................................... 51 2.4.6 Key Events ..................................................................................................................... 54

2.5 Apparel ......................................................................................................... 56 2.5.1 Overview ........................................................................................................................ 56 2.5.2 Vision and Strategy ....................................................................................................... 58 2.5.3 Annual Targets and Expected Results........................................................................... 58 2.5.4 Key Activities ................................................................................................................. 58 2.5.5 Strategic Constraints Analysis ....................................................................................... 60 2.5.6 Key Trade Events............................................................................................................ 61

2.6 Export Competitiveness Gantt Chart ........................................................... 62

3. Finance and Investment .................................................................................... 65

3.1 Regional Context and Overview .................................................................... 65

3.2 Vision and Strategy ..................................................................................... 66

3.3 Annual Targets and Expected Results ........................................................... 67

3.4 Key Activities ................................................................................................ 67 3.4.1 Financial Sector Strengthening ..................................................................................... 67 3.4.2 Investment Enabling Environment .............................................................................. 68 3.4.3 Development of Funding Platforms and Vehicles ........................................................ 70 3.4.4 Warehouse Receipt System Strengthening ................................................................... 72 3.4.5 Increasing Investment into the Region .......................................................................... 75 i. Engagement ................................................................................................................. 76 ii. Capital mapping: identifying the trends and gaps in the investment landscape .......... 77 iii. Market engagement: presentation of the Investment Team to clients ........................ 78

3.5 Strategic Constraints Analysis ..................................................................... 82

3.6 Partnerships ................................................................................................ 85


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3.7 Key Events ................................................................................................... 86

3.8 Finance and Investment Gantt Chart ............................................................ 87

4. Enabling Environment and Trade Facilitation .................................................. 89

4.1 Regional Context and Overview.................................................................... 89

4.2 Vision and Strategy ....................................................................................... 91

4.3 Targets and Expected Results ....................................................................... 91

4.4 Strategic Constraints Analysis ...................................................................... 91

4.5 Key Initiatives and Activities ......................................................................... 93

4.6 Key Events .................................................................................................. 103

4.7 Enabling Environment and Trade Facilitation Gantt Chart ......................... 105

5. Knowledge Management ................................................................................... 115

5.1 Overview and Strategy ................................................................................. 115

5.2 Key Activities ............................................................................................... 117 5.2.1 Annual Pause and Reflect Knowledge Management Workshop ................... 119

5.3 Evaluating Success ..................................................................................... 121

6. PMEP Plan, Indicator Table & Target Results ................................................ 122

6.1 Context and Overview ................................................................................. 122

6.2 Baseline Assessment and Establishment of Targets .................................... 122

7. Hub/Southern Africa Development Community Implementation Plan ........ 128

Annex 1: Organizational Chart ................................................................................. 132

Annex 2: Partnership Tables .................................................................................... 136


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List of Abbreviations ACE Africa Commodity Exchange (Malawi) AAFF American Apparel and Footwear Association ACTESA Alliance for Commodity Trade in Eastern and Southern Africa ACTIF African Cotton &Textile Industries Federation AFCA Africa Fine Coffees Association AFSTA African Seed Trade Association AGMARK Agricultural Market Development Trust AGOA African Growth and Opportunity Act AMCHAM American Chamber of Commerce APS Annual Program Statement ASARECA Association for Strengthening Agricultural Research in Eastern and Central Africa ASIF Agricultural Storage Investment Facility AWAN African Women in Agribusiness Network-East Africa B2B Business to Business BURS Botswana Unified Revenue Service CAADP Comprehensive Africa Agriculture Development Program CABI Center for Agriculture and Biosciences International CAGR compound annual growth rate CBI Center for the Promotion of Imports CCA Corporate Council on Africa CGIAR Consultative Group on International Agricultural Research CLUSA National Cooperative Business Association, CLUSA CMP Common Market Protocol COMESA Common Market for Eastern and Southern Africa COPE Center of Phytosanitary Excellence DCA Development Credit Authority DFI Development Finance Institution DFID Department of International Development DQA Data Quality Assessment EAC East African Community EIB European Investment Bank EMPEA Emerging Market Private Equity Association ENS Existing Notification Systems FAO Food and Agriculture Association FDA Food and Drug Administration FEWSNET USAID Famine Early Warning System Network FI Financial Institution FSNP Food and Nutrition Security Policy FTF Feed the Future GDP Gross Domestic Product


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GIS Geographic Information Systems HTS Harmonized Tariff Schedule ICT Information and Communications Technology IFDC International Fertilizer Development Center ILFS Infrastructure Leasing & Financial Services ILO International Labor Organization IPA Investment Promotion Agency IPPC International Plant Protection Conventions ISPM International Standards for Phytosanitary Measures ITC International Trade Center JSE Johannesburg Stock Exchange LNDC Lesotho National Development Corporation LSP logistics service providers MIS Market and Information Systems MOU Memorandum of Understanding NAPI National Action Plan on Investment NBM National Bank of Malawi NBT non-tariff barriers to trade NEPAD New Partnership for Africa’s Development NPPO National Plant Protection Organizations NSW National Single Window OCA Open Capital Advisors OECD Organization for Economic Cooperation and Development OPIC Overseas Private Investment Corporation OSBP One-Stop Border Post PF Partnership Fund PIMS Pest Information Management System PMP Performance Monitoring Plan PPP Public Private Partnership PRA Pest Risk Assessments REC Regional Economic Community REI Regional Economic Integration RFA Request for Applications RFBS Regional Food Balance Sheet RISDP SADC Revised Regional Indicative Strategic Development Plan 2015-2020 RoO Rules of Origin SADC Southern Africa Development Community SATH Southern Africa Trade Hub SATIH Southern Africa Trade and Investment Hub (“Trade and Investment Hub”) SCAA Specialty Coffee Association of America SCAE Specialty Coffee Association of Europe SFAA Specialty Food Association of America


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SME Small and Medium-sized Enterprises SOPs Standard Operating Procedures SPS sanitary and phytosanitary SSA Sub-Saharan Africa STR Simplified Trade Regime STS Structured Trading Systems STTA Short Term Technical Assignment TBT Technical Barriers to Trade TF Trade Facilitation TFA WTO Agreement on Trade Facilitation TFP Trade Facilitation Program TTTFP Transport and Transit Facilitation Program WRS warehouse receipt system WTO World Trade Organization ZAGIS Zambia Grain Information Service ZAMACE Zambian Commodity Exchange


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Introduction

The Case for Trade, Growth and Regional Integration The Southern Africa Trade & Investment Hub (“Trade and Investment Hub” or “Hub”) has an ambitious transformational goal: to improve the lives of Southern Africans through sustained economic growth. This will require overcoming various challenges, including food insecurity, government interventions that distort incentives for farmers and private enterprises, weak institutional capabilities, infrastructure inadequacies, corruption, and market distortions that undermine productivity.

Trade is central to economic growth and development of the region for SADC and its member states. In fact, evidence supports the importance of trade as a key driver of growth and poverty reduction.1 A study of 14 countries in the 1990s found that poverty fell in the 11 countries that experienced growth, while poverty increased in the three countries that had stagnant or no growth.2 USAID’s evaluation of trade capacity building programs from 1999 – 2009, funded at $12 billion, showed that $1 of trade assistance was associated with an increase of $53 dollars in exports in two years and had discernible employment and income impacts on individuals and families.3 Economic growth and development also benefits America, expanding markets for US exports and creating opportunities for US investors; they also promote US national security interests: extreme poverty is correlated with extremist ideologies.

In 2017, six African nations are on pace to be among the top 10 fastest growing countries in the world. Visitors to African cities see cranes dotting the skyline and investors arriving from all over the world. Visitors also notice web-based apps, such as Hello Tractor -- an “Uber-Like” platform that allows rural farmers to access tractors. Over the next five years, 19 sub-Saharan African countries are expected to achieve average growth rates of five percent or higher. Africa is moving steadily on a trajectory of economic growth and increasing self-reliance. In realizing that vision, African and international efforts to promote peace and implement economic reforms are bringing a new generation into a new consumer class. Studies by McKinsey estimated that, by 2025, an additional 90 million African households will enter the consumer class, contributing to a total household purchasing power of $2.1 trillion. This buying power is essential for sustained economic growth. That growth is generating demand for new infrastructure, new machinery and equipment, and new consumer products and services.

But growth alone does not guarantee poverty reduction, particularly among the extreme poor. Evidence suggests that the link between trade and poverty reduction is stronger in African countries that have deeper financial sectors, better education levels and stronger governance,

1 “The Role of Trade in Ending Poverty,” Joint publication of the World Trade Organization and the World Bank Group, 2015. 2 Operationalizing Pro Poor Growth Programme (2005), Pro Poor Growth in the 1990s: lessons and insights from 14 countries. 3 “From Aid to Trade: Delivering Results, A Cross Country Evaluation of USAID Trade Capacity Building,” November 24, 2010, Molly Hageboeck, et al., Management Systems International for USAID.


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emphasizing the need for the Trade and Investment Hub to improve financial services and innovation, link training of workers with value chain development, and promote public-private partnerships to improve economic performance.4

Research also finds that increasing agricultural productivity, combined with value-added processing, contributes to rising incomes in rural areas. The development of an internationally competitive rural non-farm sector is necessary for creating jobs and raising incomes, and will complement Feed the Future strategies deployed in the region.5 Maximizing agricultural productivity will be of critical importance for the 75% of poor Africans living in rural areas.

To the extent that growth derives from trade, the benefits to the poor (bottom 40% of the population) depend in part on the skill intensity of the products that benefit from trade. Extrapolating from this evidence, and building on three generations of USAID Trade and Investment Hub research and investment, the Trade and Investment Hub’s support for value chains such as garments, specialty foods, and agricultural products, is more likely to benefit the poor.

4 “Does Trade Reduce Poverty? A View from Africa” Maelan Le Goff and Raju Jan Singh, World Bank Working Paper, January 2013. 5 “The Role of Trade in Ending Poverty”, p. 30 – 31.


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Implications for the Trade and Investment Hub: Market-Driven Technical Assistance To compete in the global and regional economy, producers and industries need to understand and meet buyer and market requirements, develop integrated supply chains and invest in technologies and quality systems to improve productivity. SADC Member States need to reduce trade-related costs and risks, improve the free movement of goods and services, and enhance productivity to increase trade competitiveness, which is crucial to achieve growth and reduce poverty through job creation.

To achieve meaningful progress and economic impact, the Trade and Investment Hub will simultaneously support: 1) private sector trade and investment transactions that achieve measurable commercial results; 2) policy and institutional reforms that enable a more dynamic, integrated, and competitive regional market; and, 3) advocacy efforts of civil society and industry associations to ensure local ownership and lay the foundation for long-term sustainability. The Trade and Investment Hub will focus on economic and commercial incentives that drive trade and investment transactions, trade policy improvements and institutional reforms in a mutually reinforcing process of market formation and productivity enhancement. The Trade and Investment Hub will build capacity with its partners to improve their performance: for public sector actors to improve regulatory functions and deliver services for a competitive market; and for smallholder farmer groups and businesses to produce, process and deliver goods, exports and services on time at the quality and specifications required by buyers.

The Trade and Investment Hub’s first year work plan incorporates a market-driven strategy to improve trade competitiveness and the investment climate across priority SADC Member States to support productivity and growth by engaging a wide range of actors at multiple levels:

• At the enterprise level, achieving growth and value addition through financial innovation, technology adoption and productive capacity upgrading, based on sound commercial transactions that generate greater profits for firms that can produce to meet regional and global standards

• At the industry or value chain level, creating new governance arrangements through trade associations, partnerships, and alliances to attain productivity gains to clearly demonstrate that private sector collaboration results and advocacy resulting in greater profitability, more exports and jobs, and greater market share

• Working with service providers, including investors, banks, certifying bodies, freight forwarders, transporters, and equipment suppliers to supply internationally competitive offers to small exporting and trading businesses

• At the national level, facilitating cooperation among government, private sector, and civil society actors to coordinate export strategies with action plans designed through facilitated consultation and complementary roles for workforce development, trade policy reforms, and services that support globally competitive industries that export to the U.S. under AGOA, as well as regional and other global markets

• At the regional level, supporting more effective cooperation and reforms among SADC and its member states to reduce the risks, the costs and the time of moving goods and people across


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borders, reducing the institutional, legal, procedural and regulatory constraints to doing business, and creating a competitive investment climate for attracting, retaining and leveraging investment for business-led growth.

Primary trade corridors in Southern Africa.


Executive Summary Implementing a market-driven strategy requires a disciplined approach that links every activity to measurable results of sales and profits for entrepreneurs and farmers, and progress toward market reforms that generate fiscal revenues and economic growth for government. This project will facilitate and broker commercial transactions, financial and business services, and investments to build credibility and trust among small farmers, entrepreneurs, international buyers, and CEOs—and leverage that trust to build sustainable alliances and partnerships for greater commercial gains and market share. This workplan has been developed through consultative dialogue with regional and national partners and stakeholders in the public and private sectors, representatives of USAID’s regional and bilateral missions, and donor partners.

Figure 1 presents a summary of the core activities related to outputs and outcomes and to top line results in the Trade and Investment Hub’s five components for Year 1: Finance and Investment, Export Competitiveness, Agribusiness Trade, and Enabling Environment and Trade Facilitation. The PMEP (Chapter 7) provides a presentation of all indicators and results for Year 1.

Figure 1: Linking Results to Activities, a

Each component below presents a brief analysis of the core activities and implementation modalities for achieving outputs, outcomes and results. In each component, the Hub will work with associations and partnerships that are aligned with Hub strategies and activities, and use a


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Strategic Partnership Fund to leverage resources. Gender inclusion will be emphasized across components and all activities.

Finance and Investment Firms in Trade and Investment Hub target markets face significant barriers to raising capital. Nineteen percent of these markets identify access to finance as their primary obstacle to growth– making it the most commonly cited obstacle among those examined by the World Bank’s Enterprise Surveys. Contributors to limited access to finance fall into two categories: firm-level barriers (specifically information asymmetry and transaction costs) and market constraints (including interest rates, banking constraints, and external risks including drought and commodity prices). To increase the flow of capital to firms in Southern Africa, on-the-ground transaction support and viable new platforms are needed to overcome these perceived risks and absorb the cost of engaging investment opportunities in the region.

To address these challenges, the Trade and Investment Hub’s Finance and Investment team will focus on the execution of innovative strategies and activities to accelerate access to finance through five pillars.

• Pillar 1 – Strengthen the financial sector. Activities include support for regulatory or procedural issues and bank capacity building in partnership with DCA and other USG agencies

• Pillar 2 – Implementation of a regional investment policy framework, with SADC and other stakeholders, including its domestication throught national action plans on investment

• Pillar 3 – Support the development of funding platforms/vehicles • Pillar 4 – Further development of, capacity building around, and ecosystem support for

Warehouse Receipt Financing • Pillar 5 – Facilitate investment through collaboration with regoinal and global investors,

including through intraregional transactions and investments from outside Southern Africa, in partnership with USG teams and agencies such as PCM, OPIC, USDA, and others

Export Competitiveness Businesses across Southern Africa seeking to compete in international markets face many constraints, including lack of market knowledge, difficulties accessing credit, high input costs, weak marketing and branding, anemic regulatory environments, and lack of economies of scale.

To overcome these obstacles, Trade and Investment Hub support will focus on assisting companies to establish buyer linkages and attract investment. Targeted sectors include accessories and footwear, apparel, and specialty foods, with a specific emphasis on dried spices, fruits and nuts. In addition, the Hub will support cluster development and capacity building for regional associations, and business planning and investment facilitation. By providing technical assistance along the value chain, the Trade and Investment Hub will not only help manufacturers


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maximize their capacity and increase exports, but also reach a significant number of women who work in these value chains.

The Export Competitiveness team will help facilitate the development and implementation of utilization strategies for the African Growth and Opportunity Act (AGOA), a preference program offering duty-free access into the U.S. for qualifying exports from eligible Sub-Saharan African countries. The Hub will promote utilization of the agreement throughout the region to encourage entrepreneurs to take advantage of AGOA and improve overall export competitiveness.

Increasing exports from non-traditional sectors has multiple benefits, not only creating jobs and increasing incomes, but also improving the transfer of technical capacities, including the introduction of new technology.

Agribusiness Trade Agriculture remains central to poverty reduction, growth, and food and nutrition security in Southern Africa. It provides subsistence, employment, and income for nearly 61% of the region’s 284 million people (2012). Based on its natural endowments, there is great potential to expand agricultural production and trade in the region. Furthermore, the growth in the urban population, coupled with global demand for agricultural products provides the region with additional commercial opportunities. However, despite this potential, the region remains a net importer of most agricultural products. Malnutrition is endemic and the food insecure population remains high. Despite SADC’s stated commitment to the creation of a free trade area and common market in Southern Africa, constraints to intra-regional trade still persist.

The objectives of the Trade and Investment Hub’s Agribusiness component are to enhance competitiveness of selected regional agricultural value chains and increase regional trade in staple and non-staple foods and inputs through investment, technology transfer, and greater private sector participation. The outcomes of this work will support the Global Food Security Strategy with the objective of Enhanced Regional Food Security through Increased Agricultural Productivity and Regionally Integrated Markets to Sustainably Reduce Hunger.”

To achieve this vision, the Agribusiness team will facilitate greater intra-regional trade of staple and non-staple food crops including coordinated activities in inputs and services (including fertilizer) in conjunction with bilateral and regional FTF programs. Increased trade of inputs and services will serve as an enabling factor to increase trade of staple and non-staple foods.

Enabling Environment and Trade Facilitation Effective participation in the global economy requires rapid turn-around and predictable deliveries. Despite significant potential, SADC still faces challenges in these areas: SADC exports take 28.3 days on average to reach their destinations compared to 6 to 12 days for the rest of


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globe.6 SADC Member States represent less than 1% of global exports with only 15 to 20% of exports to neighboring SADC countries, much lower than the global average.7 Though several SADC Member States rank well according to the World Bank Doing Business Trading Across Border export surveys, other prominent SADC Member States (Namibia, South Africa, Zambia) rank quite low. The consequences of border inefficiency include reduced truck utilization levels; loss of production time and retail sales for customers due to delays; loss of customs revenue due to corrupt practices; and, reduction in the regional economy due to loss of foreign trade. By improving cross-border delays by one day intra-SADC trade can improve by USD 400 million and SADC global exports by USD 2 billion per annum.

In 2013, Hummels8 commented that if the delivery time can be reduced by one day, and the landed cost can be reduced by 0.8%, the SADC region has the potential to save US$400m on intra-regional exports and US$2bn on global exports.

U.S. business leaders engaged in Africa recently advised the President: “Full implementation of the TFA is a ready-made opportunity to support the changes that Africa needs to address administrative burdens that raise trade-related transaction costs to unsustainable levels.” And WTO estimates that, if the least developed countries fully implement this agreement, it would reduce costs and enhance competitiveness, generating a 35 percent increase in exports.9

To overcome the challenges, the Enabling Environment and Trade Facilitation (EE&TF) team will support regional and national partners in enabling transparent, reliable, efficient and cost-effective trade. This will involve working with regional economic communities, particularly the SADC Secretariat, SADC Member States, private sector stakeholders and academia to strengthen regional actors’ ability to implement multilateral and regional trade policies and agreements. It will also involve efforts to improve regional transport corridor management; address key non-tariff barriers affecting Trade and Investment Hub value chains; and, build partners’ capacity to advocate for trade- and investment-friendly policies. The Trade and Investment Hub will also coordinate with other USAID-funded and supported initiatives such as bilateral trade capacity building projects and alliances, including the Global Alliance for Trade Facilitation and the Standards Alliance.

These activities will support the Trade and Investment Hub’s broader goals of increasing intraregional trade, promoting exports, facilitating investment and reducing the time and cost of

6 Hoffman, Grater, Schaap, Maree & Bhero. A Simulation Approach to Reconciling Customs and Trade Risk Associated with Cross-Border Freight Movements. South African Journal of Industrial Engineering 27.3 (2016): 251-64. sajie.journals.ac.za/pub/article/download/1659/730 7 Jansen, M. (2006) Services Trade Liberalization at The Regional Level: Does Southern and Eastern Africa Stand to Gain from EPA Negotiations? World Trade Organization, Economic Research and Statistics Division,7. Retrieved from: https://www.wto.org/english/res_e/reser_e/ersd200606_e.pdf 8 Hummels, D.L. 2013. “Time as a Trade Barrier”. American Economic Review 9 “Africa: Address by Secretary of Commerce Wilbur Ross Corporate Council on Africa's U.S. Africa Business Summit. ~” 15 June 2017. http://allafrica.com/stories/201706151038.html

https://www.wto.org/english/res_e/reser_e/ersd200606_e.pdf


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trade. Through both a top-down, policy-level approach, and bottom-up activities supporting traders and associations, the Trade and Investment Hub will achieve commercially meaningful results.

These activities will support the Trade and Investment Hub’s broader goals of increasing intraregional trade, promoting exports, facilitating investment and reducing the time and cost of trade. Through both a top-down, policy-level approach, and bottom-up activities supporting advocacy efforts of associations, the Trade and Investment Hub will achieve commercially meaningful results.

Subsequent workplans will elaborate strategies for promoting broad institutional reforms that will generate sustainable impacts. Some of these will include strengthening the capacity of the SADC Secretariat in the trade area, increased coordination with other donors, and weighting policies which will most increase trade.

Technical teams will seek to strengthen partner associations to ensure they have adequate strategies, systems, procedures and sustainability plans to support their memberships in meeting targets. By strengthening these partners, the Hub can obtain quality data including barriers to trade, and increase advocacy towards trade and investment policy reform and implementation. By building sustainability planning through technical assistance and grants to these organizations and evaluating opportunities for income generating activities, the reach of the Trade and Investment Hub’s assistance can continue beyond the life of the project.

The Trade and Investment Hub will work with approximately 25 associations throughout Southern Africa. These organizations will be key partners over the life of the project and play a key role in sustainability. Each of these associations has hundreds of business members, and each of the cooperatives represents thousands of farmers, which are key to realizing growth objectives.

Trade and investment are central to economic growth and development. To achieve transformational economic and social impacts, the Hub represents a multifaceted, dynamic, and robust program of mutually reinforcing initiatives. That program, described in this work plan, involves the private and public sectors and civil society throughout the region.


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1. Agribusiness Trade

1.1 Regional Context and Overview Agriculture remains central to poverty reduction, economic growth, and food and nutrition security in the region. It provides subsistence, livelihoods and the opportunity for wealth creation for nearly 61% of the region’s 284 million people (2012). Furthermore, it contributes 17% of the SADC region’s Gross Domestic Product (GDP), which rises above 28% when all middle-income countries are excluded.10 The performance of agriculture has been positive, at an annual growth rate of 2.6%, against a population growth rate of 2.5% during the last decade. Regional production of cereals increased by 46% (2003 – 2012) due mainly to maize production increases of 40%11, while production of rice, wheat, sorghum and millet has remained relatively constant. Similarly, livestock production has increased on average by 3% per annum.

Value chains such as sesame, pigeon peas and soya beans are global export products with huge regional and global demand. Furthermore, the growth in urban population and global demand for agricultural products provides the region with added opportunities.

Despite this positive performance, the region remains a net importer of most agricultural products. Malnutrition is endemic and the food insecure population remains high; the proportion of underweight children is above 26% in nearly all countries in the region. A variety of challenges remain, including:

• Low labor productivity in agriculture, which is 30 times lower than in developed countries (though labor productivity in commercial agriculture is comparable to international standards)

• Low land productivity, which has grown by a mere 1% per annum from the 1990s • Low cereal yields which have remained between 1.5 and 1.7 mt/ha on average since

2000 (this is below the Africa average of 2 mt/ha and the average of 8 mt/ha for developed countries)

• Access to structured trading systems and commercially available technologies • While intra-regional agricultural trade has performed better than other sectors,

overall intra- regional trade remains at 10% of total trade, compared to 30% in the Association of Southeast Asian Nations (ASEAN) region12

10 SADC Regional Agricultural Policy Document: http://www.nepadsanbio.org/sites/default/files/2017-01/SADC_RAP_Policy_Document_%28Final%29_for_Publication_12_Sep_2014.pdf 11 Maize production increases in Malawi and Zambia have been supported in part by the two countries’ input support programs 12 SADC Regional Agricultural Policy Document: http://www.nepadsanbio.org/sites/default/files/2017-01/SADC_RAP_Policy_Document_%28Final%29_for_Publication_12_Sep_2014.pdf

http://www.nepadsanbio.org/sites/default/files/2017-01/SADC_RAP_Policy_Document_%28Final%29_for_Publication_12_Sep_2014.pdf





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1.2 Vision and Strategy

The guiding vision of the Trade and Investment Hub’s Agribusiness Trade (AgT) component is increased competitiveness of selected regional agricultural value chains for export and regional trade in staple and non-staple foods and inputs through investment, technology transfer, and greater private sector participation. The outcomes of this component will contribute towards realization of: “Supporting the Global Hunger and Food Security Initiative (GHFSI) with the objective of Enhanced Regional Food Security through Increased Agricultural Productivity and Regionally Integrated Markets to Sustainably Reduce Hunger and the U.S. Government Global Food Security Strategy FY 2017-20121.13

To achieve this vision, the AgT component will facilitate greater intra-regional trade of staple and non- staple food crops through coordinated activities in input sectors (seed, fertilizer and service); the policy environment (harmonization and domestication of SADC policies); finance and investment and trade facilitation interventions to complement bilateral and regional FTF programs. Greater access to technology and services, regional harmonization and integration and efficiencies in cross border trade will serve as an enabling factor to increase production and trade of staple and non-staple foods. Staple foods include maize and other grains, oilseeds such as sesame, soybeans and groundnuts, pulses and legumes, and possibly horticultural products and animal products.

The AgT component will contribute to other components’ activities, such as the Finance and Investment component’s target new private sector investment leveraged from the agricultural sector, evidence based policy (advocacy) and other cross cutting activities such as individuals and institutions trained within the agricultural sector.

Guiding Principles The Trade and Investment Hub’s approach is guided by the following two principles:

Leverage private sector co-investment Leveraging private sector investment will be an over-arching theme and result across the AgT component where appropriate to ensure sustainability of interventions beyond the life of the program. The goal will be to encourage private sector participation and investment to increase scale and impact towards poverty alleviation so that the program can achieve greater scale as private sector partners have long-term interests in sustainability and growth.

13 Examples include: IR 1: Strengthened inclusive agriculture systems that are productive and profitable – access to inputs (page 13); IR 2: Strengthened and expanded access to markets and trade – information services (page 26); IR 4: Increased sustainable productivity, particularly through climate-smart approaches (also contributes to Objective 2) - productive and resilient small-scale producers, Support local development of input services etc. Examples include: IR 1: Strengthened inclusive agriculture systems that are productive and profitable – access to inputs (page 13); IR 2: Strengthened and expanded access to markets and trade – information services (page 26).


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Coordination with other programs, stakeholders and components There are several on-going programs and activities in regional agricultural trade within SADC and Feed the Future (FtF) countries. SATIH will collaborate with those whose objectives and aspirations align with ours, such as Seed Trade, Food Trade East and Southern Africa, SPEED+, AgDiv, etc.

1.3 Key Activities

To achieve the objective of increasing competitiveness and bolstering intra-regional agricultural trade, the AgT component will focus on the following five initiatives:

1. Support structured trading of staple food crops

Major opportunities in the region affecting structured trading of staple food crops include:

• Unpredictable government intervention and policies in staple food markets, and especially ad-hoc import and export bans as a tool to achieve food security

• Lack of harmonized and domesticated regional grades and standards • Under-developed commercial grain storage, warehouse receipt and commodity exchange

systems • Inadequate market information systems to convey real time price discovery mechanisms,

market and production dynamics and agro-ecological information relevant to farmers and agribusinesses in the region

2. Improve trade of inputs and services

The Trade and Investment Hub will apply a market systems approach, which views the value chain as a set of interconnected market relationships that contribute to the effective functioning of the whole value chain. In this vein, focusing only on the tradable out (maize, soya, vegetables and livestock) without addressing the input side of the market system will not yield sustainable and lasting impact in the region. Therefore, the Trade and Investment Hub will investigate impediments to regional trade of inputs, in particular seed14 and fertilizer, which are critical to improving the productivity per hectare of key crops which are significantly lower than African and global averages as highlighted in the introductory section. Major opportunities that the Trade and Investment Hub will focus on include:

• Lack of capacity of regional industry associations to increase access to and to advocate for to improved varieties, seeds, fertilizers as well as crop, soil, water and animal management practices;

• Need for finance, crop insurance and allied services e.g. appropriate packaging and branding for vegetables and specialty foods

14 The Trade and Investment Hub will ensure there is no duplication of effort with the Seed Trade program, and focus on business linkages between seed and fertilizer companies.


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3. Support trade in key non-staple commodities (horticulture, livestock, oilseeds)

Horticulture, livestock and oilseeds are increasingly becoming important sectors in the region. The Trade and Investment Hub will support market-driven private sector-led initiatives that facilitate greater intra-regional and international trade in value chains within these broad sectors. Illustratively, sesame in Mozambique and fruit and vegetables in Zambia are becoming important export value chains and the Trade and Investment Hub will seek out private sector partnerships to support relevant change-making initiatives that will increase regional and international trade in these products. Major opportunities that the Trade and Investment Hub will focus on include:

• Lack of strategic market linkages; forward market contracts and commodity finance and structured trading investment in non-staple value chains

• Market information systems to disseminate real-time relevant information for non-staple trade

• Regional grades and standards, especially in relation to aspects such as foot and mouth disease in livestock and fruit fly in fruit exports in the region

4. Facilitate systemic use of new agricultural technologies

To increase the competitiveness of regional value chains, farmers, traders, agribusiness and other important stakeholders must adapt and use new and improved technologies that will drastically improve their competitiveness. The Trade and Investment Hub will explore aspects such as satellite storage facilities and support investment in regional information, database and accreditation systems. While the Trade and Investment Hub will not operate at the farm level, i.e. directly work with farmers, it will facilitate stakeholders in the wider system to avail such technologies to famers, agribusiness, etc., within the various targeted value chains.

5. Strengthen trade associations and relevant trade bodies Within SADC Member States, farmers’ associations and trade facilitation bodies exist that seek to coordinate and maximize efficiencies in regional agricultural trade. The Trade and Investment Hub will work with a broad spectrum of these to facilitate increased competitiveness and trade in agriculture. Illustratively, the Trade and Investment Hub will:

• Collaborate with National plant protection bodies to enable member states’ access to global markets. For example, a body like the Perishable Products Export Control Board in South Africa is important in regulating and providing the necessary exports for farmers to export regionally and globally.

• Work with relevant farmers’ and trade associations such as the Southern African Confederation of Farmers’ Unions (SACAU) and the South African Association of Freight Forwarders, among others.


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6. Cross-Component Collaboration

The AgT component activities will be integrated with other Trade and Investment Hub components especially in areas where policy reform, finance and investment as well as removal of administrative and regulatory bottlenecks will be needed to spur cross border trade in staple and non-staple foods. Areas of cross-component collaboration include:

Finance & Investment component Similarly, the agricultural sector will be a prime recipient of the Finance & Investment component. This will include applying an investment lens to target gaps in the agricultural value chains that improve competitiveness and efficiencies. Illustrative examples may include investments in grain warehousing, agro-processing, input supply/service distribution, mobile money technology and others.

Enabling Environment and Trade Facilitation There will be collaboration between the Trade and Investment Hub and SADC’s Trade, Industry, Finance and Investment (TIFI) Directorate. The Trade and Investment Hub EE&TF team has assisted with the design of all AgT component enabling environment and policy implementation activities. For example, while most work on staple foods value chains will be done under the AgT component, efforts to fully implement harmonized regional SPS policies to facilitate trade and as an advocacy tool to promote evidence based sustainable, informed policy on staple foods trade will be done in close collaboration with the EE&TF Team.

Activities include coordination on logistics and freight forwarders/transporters for more efficient trade across borders and on improving the capacity of practitioners, private sector and accredited conformity assessment bodies as a means of supporting the Standardization, Quality Assurance, Accreditation and Metrology (SQAM) framework within SADC15.

7. Support trade in key non-staple commodities (horticulture, livestock, oilseeds)

Horticulture, livestock, and oilseeds are increasingly becoming important sectors in the region. If funding and time permit, the Trade and Investment Hub will support market-driven private sector-led initiatives that facilitate greater intra-regional and international trade in value chains within these broad sectors. Illustratively, sesame in Mozambique and fruit and vegetables in

15 SQAM covers

• Ensuring that the region’s approach to dealing with sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT) issues are aligned with WTO norms and do not result in the creation of non-tariff barriers (NTBs)

• Facilitating industry competitiveness through ensuring the use of relevant standards and the production of quality goods in the region

• Ensuring the protection of consumers through use of regulations based on international best practices for quality, safety and conformity assessment


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Zambia are becoming important export value chains and the Trade and Investment Hub will seek out private sector partnerships to support relevant change-making initiatives that will increase regional and international trade in these products.

1.4 Key Initiatives The approach for all activities will focus on leveraging private sector partnerships and investment. The AgT component is using a systemic private sector-led approach to most interventions. Where public participation is key, such as in grades and standards boards, lab certification bodies, SPS regulators, investment incentives, government participation will be engaged.

INITIATIVE 1: SUPPORT STRUCTURED TRADING OF STAPLE FOOD CROPS Structured trade to focus on several pillars to be effective and sustainable including

• Grading and grading regulations and standards • Testing or independent verification (laboratories) • Warehousing (grain storage, warehouse receipts & systems) • Financing and Insurance • Logistics (including border crossings, tariffs, quotas, other non-tariff barriers) • Price discovery / market information systems • Trading (local and cross border) • Surveys and GPS Mapping

The Trade and Investment Hub will work on these simultaneously to develop an effective warehousing and services industry and Warehouse Receipt System since it “forces” industry participation in respect of many of the different components. It brings the different parties to the table.


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Figure 3 Evolution of a Warehouse Receipt System

1.1. Strengthen regional market information systems to support trade

• Identify partners, systems, users interested in the platform

• Develop agribusiness indicators and market data sources

• Decide the scope and frequency of data collection

• Work with regional partners such as the South African Grain Information Services or BFAP to compile the data into a virtual database

1.2. Strengthen and roll-out warehouse receipt systems, with specific focus on Malawi, Mozambique and Zambia, linking with South Africa. The collaborating partners will be private sector partners such as banks and traders.

• Assess the status of commodity exchanges and WRS in the region

• Develop a pipeline of deals/transactions for the commodity exchanges in the region

• Communications marketing strategy informing the value chain on the advantages of using a structured WRS. The marketing effort will target farmers; farmers’ associations; traders and traders’ associations; banks; insurance providers; national Governments and RECs.

1.3 Develop the regional commodity trading environment

• Assess the national and regional regulatory and policy environment for the regional commodity trading environment

• This will require a re-cap on what is traded regionally (formal and informal), price transmission between countries, obstacles (non-tariff barriers) based on several studies


26

that have been conducted in the past • Assess the outcome of the SAFEX activity on the listing of a Zambian USD maize contract

on the JSE and apply lessons learned • Conduct a learning visit to EAGC to understand the needs and successes of G-Soko EAGC with

a view of supporting a Southern African Grain Council (SAGC)/SAGNET

INITIATIVE 2: IMPROVED TRADE IN INPUTS AND SERVICES From a market system perspective, use of better and improved inputs is an important aspect in improving productivity and consequently income for farmers. The Trade and Investment Hub will focus on the regional provision of key inputs including seed and fertilizer to enhance the competitiveness of regional value chains.

Key activities envisaged under this initiative in FY2017 include: • Work with institutions like AFAP on fertilizers, fertilizer companies and packaging seed

with agricultural services and equipment through established distribution networks • Assess the state of trade in fertilizer in the region and identify areas for improvement and

develop a Regional Fertilizer Strategy in collaboration with AFAP

INITIATIVE 3: FACILITATE SYTEMIC USE OF NEW AGRICULTURAL TECHNOLOGIES The Trade and Investment Hub will facilitate use of new technological advancements such as e-accreditation and satellite storage in facilitating efficient trade. Key activities under this initiative include:

• Visit the G-Soko platform in East Africa Grain Council to understand its functioning and other platforms as a market information portal (RATIN)

• Assess the feasibility of supporting investment in e-accreditation systems • Support investment in the development of a private sector-led regional market information

system or platform (such as SAGNET) • Facilitate private sector technology transfer regionally through use of the strategic

partnership grant (SPG) i. Use the Strategic Partnership Grant (SPG) to leverage private sector-led

expansion of new technologies in the region in staples, oilseeds, legumes/pulses, horticulture and livestock value chains

ii. Facilitate investment plans and opportunities in private sector-led new technologies such as mechanization, agro-processing, cold chain, digital exchanges and certifications that enable access to regional and global markets

INITIATIVE 4: SUPPORT TRADE IN KEY NON-STAPLE VALUE CHAINS There are other non-staple commodities that are of importance for the livelihoods of people in the Southern Africa region. Key among these are horticulture, livestock and oilseeds. Key activities under this initiative include:

• Conducting sector assessments in horticulture, livestock and oilseeds to identify high


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demand market opportunities: i. Potential for regional trade/expansion

ii. Private sector interest in investment and collaboration iii. Growth trajectory of value chain in terms of volume and value

• Potential resource and collaboration partners include institutions and companies such as ETG, OLAM, Cargill, Capespan International, Freshmark (already has vegetable operations in South Africa and Zambia), Westfalia (already operations in South Africa and Mozambique)

INITIATIVE 5: STRENGTHEN REGIONAL TRADE ASSOCIATIONS & RELEVANT TRADE BODIES There are national and regional associations and trade bodies that are involved in trade facilitation activities across the region. The Trade and Investment Hub will focus on regional- level interventions with associations and trade bodies, including:

• Collaborate with national plant protection bodies to enable access to global markets o Competitiveness in regional and global markets is highly dependent on the

ability of regulatory authorities to convince their counterparts in other countries that their systems for grading, standards, pest detection and quarantine are above board. This is more so for perishable products such as horticulture and livestock

• Institutional Support to national farmer and trade associations, building on capacity assessment and develop a plan for capacity building

• Support the SADC SPS coordinating committee • Work with recognized trade associations to organize strategic growth business matching

in member countries • Assist leading trade associations to establish a trade information exchange platform(s)

1.5 Annual Targets and Expected Results 150 organizations or MSMEs receive technical assistance 50 organizations or MSMEs applying new technologies 50 people trained $5 million in sales and cross-border trade $1 million in investment facilitated $3 million in agricultural loans

1.6 Strategic Constraints Analysis Despite SADC’s stated commitment to the creation of a free trade area and common market in Southern Africa, constraints to intra-regional trade persist. The development and strengthening of efficient borders, development and implementation of effective regional grades and standards and transparent, efficient regional markets face numerous challenges, among them:

• Restrictive impact of non-tariff barriers (NTBs) to agricultural trade—rules and regulations that unduly restrict trade—continue to negate the positive impact of successful


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tariff reductions within SADC, as implementation of harmonized SPS policies and procedures agreed is slow

• Export/Import bans or restrictions, in particular of staples such as maize, through NTBs of agricultural produce

• Inadequate understanding of markets, price formation, lack of transparent and reliable market and price data at all levels

• Tariff, NTBs, and local barriers can lead to corruption and creation of special interests • High transport costs on major transit corridors • Inconsistent and overlapping policies, for example between RECs (SADC and COMESA) • Competition among ministries for dominance in decision making in cross cutting issues • Inconsistent and overlapping mandates amongst donor agencies operating in the same

regional trade space • Poor quality roads along main corridors and important feeder routes • Long clearance processes at borders caused by poor border infrastructure and inefficient

customs and clearance procedure • SPS requirements which are not standardized and/or are applied inconsistently • Strong and relatively open regional trade policies adopted by regional economic

organizations have not been fully domesticated and implemented at the national level • Small trader challenges, including security at borders, foreign exchange/currency

limitations and women’s security in cross border trading

1.7 Key Events

Dates Event Name Event Location

Objectives

February 2017

Argus FMB Africa Fertilize

Cape Town, South Africa

• The largest event dedicated to fertilizer in Africa

• Will focus on practical problems to increasing use of fertilizer on the continent

• Over 500 participants drawn from across the supply chain, from all over Africa and key exporting countries


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April 2017 Agritech Expo Chisamba, Zambia

• Agritech Expo Zambia is a business-to-business platform for agricultural professionals, from small-scale farmers to commercial enterprises

• Agritech Expo Zambia offers a unique opportunity to meet some of the world's leading agricultural companies, network with agricultural professionals as well as government and union officials,

May 2017 NAMPO Harvest Day

Bothaville, South Africa

• Grain SA’s NAMPO Harvest Day is one of the largest agricultural exhibitions under private ownership in the southern hemisphere

• Over 600 exhibitors showcasing the latest farm machinery; seed technology; innovations and finance and insurance providers.

June 2017 Cape Agri Week Expo

Worcester, South Africa

• Cape Agri Week Expo is an agricultural consumer expo focused on the fruit, vegetable and wine industries.

• Fresh produce, world-class processed agri products, job creation, secondary industries and optimization of the full value-chain will be showcased

August 2017

PMA Fresh Connection Southern Africa


• Focused on business connections, featuring an expo with more than 50 companies

• Local and global supply chain leaders throughout Southern Africa are expected to attend; including: Growers; Exporters/Importers; Distributors; Fresh Produce Markets; Market Agents; Retailers; Input suppliers (more than 350 participated in 2016) and Government Officials

September Agri Mega Week Arniston, South Africa

• Farm show focused on several value chains including livestock, grains and horticulture

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Strategy/Initiative 1: Structured trade of foodcrops

Procure software services to facilitate WRs

1.2 Develop partnerships to promote regional trade

Identify partners to committ usage of regional trade systems/platforms

Traders, financiers, insurance companies, logistical companies

Four traders, three financiers and one insurance company

5 crossborder transactions facilitated by end of September 2017.5 MOUs facilitated

1.3 Increase certified warehousesIdentified warehouses suitable for storage and safekeeping.

Warehouse owners and operators, independent collateral managers and financiers & insurance companies

Register and list five warehouses suitable for structured trade

5 warehouses

1.4 Promote harmonized standards and grading

Identify partners to promote regional standards and grading

Government authorities, industry associations and regional organisations

MOU by key partners to committ to negotiation in pursuit of regional harmonized standards

1 MOUs signed by each FtF country

1.5 Promote regional accreditation of laboratories

Indentified suitable laboratories and usage by industry

Laboratories, industry & government

Increase usage of accredited regional laboratries by trade

- Engage with 3 laboratories- Demand from industry

1.6 Targetted capacity building towards regional ag trade

Develop training curriculum for grain graders (to be implemented using trainer of trainers approach).

Training institutionsTraining curriculum developed on grading and standards

Strategy/ Improve trade and use of inputs and services

2.1Leverage partnerships to increase trade of agricultural inputs (fertilizers, pesticides, seeds, equipment and

Indentify and develop key partnerships with business, non-profits to increase the use of inputs in the region

Agribusinesses, non-profitsPartnered with two companies or organizations

2 partnerships established with ag input

Strategy/Initiative 3: Facilitate systemic use of new agricultural technologies

3.1 Develop and rollout new technologies to improve regional trade

Identify businesses to implement technological solutions (standards, food security, price discovery etc) in the region.

Businesses (software developers, data management systems, laboratories, mobile operators, traders)

Partnered with two companies1 technological solution implemented

Strategy/Initiative 4: Trade in non-staple commodities (livestock, oilseeds, horticulture)

4.1 Identify market opportunities through value chain asssessments

Livestock or meat export assessment in Zambia using Namibia best practice example and model

Assessment report1 assessment completed

4.2 Facilitate investment and export trade for the oilseed industry

Conduct an oilseeds (soybeans, pigeon peas & sesame seed) assessment and develop plan for Malawi, Mozambique and Zambia

Research Institutions (e.g. Universities, traders, associations)

Reports with recommendations 1 Plan

Strategy/Initiative 5: Stengthen trade assocaitions and trade bodies

5.1 Institutional capacity development to regional agbiz and inputs associations

Based on existing capacity assessment identify association partners and specific needs.

Associations 2 partnerships signed1 strategic plan for assn developed

1.1 Develop and link country systems to promote cross-border trading

Identify STTA for the development and rollout of WR and trading systems

IT developers and commodity exchanges/platforms

MarFebJanDecTargets/ResultsDeliverables / MilestonesKey Partners

Three commodity exchanges assisted

Linkages between commodity

systems in the region

TasksSATIH Agribusiness Trade FY2017 WorkplanSeptApr May June July Aug


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2. Export Competitiveness Businesses across Southern Africa are competing in international markets. Support of exports from other sectors has multiple benefits, not only creating jobs and increasing incomes, but also improving the transfer of technical capacities, including the introduction of new technology. Trade and Investment Hub support will focus on assisting companies to establish buyer linkages and attract investment. Targeted sectors include Specialty Foods, with specific emphasis on Nuts, Accessories, and Apparel.

Export Competitiveness activities will involve the following activities, although the level of activity within each value chain will vary as companies’ general issues are not identical across value chains. Gender inclusion will be emphasized across all activities.

• Building capacity to increase AGOA utilization • Provision of company-level technical assistance • Assistance participating at international trade shows and to build B2B linkages • Marketing and promotion of Southern African products • Improved knowledge of market conditions • Association and export agency capacity building

These activities will:

• Lead to the development and implementation of strategies to overcome constraints to making use of the AGOA facility

• Lead companies to make use of new technologies • Increase companies’ knowledge and understanding of market conditions • Establish business linkages and help companies fulfill new export deals

2.1 Build Capacity to Increase AGOA Utilization 2.1.1 Context and Overview On May 18, 2000, the U.S. Congress enacted the African Growth and Opportunity Act (AGOA) to help spur Sub-Saharan Africa (SSA) market-led economic growth and development and deepen U.S. trade and investment ties with the region. AGOA is a non-reciprocal unilateral trade preference program that provides duty-free access into the U.S. for qualifying exports from eligible SSA countries. The current 10-year extension of AGOA from 2015 to September 2025, which is the longest in the history of the trade deal with SSA, recommends that each AGOA-beneficiary country develops an AGOA utilization/response strategy to enable the country to take advantage of, and realize the full potential of, the AGOA trade initiative. In the SADC region, countries such as Lesotho, Malawi, Madagascar, and lately Botswana and further afield, Ethiopia, Ghana and Kenya, among others, have since developed national AGOA strategies while others are at various stages of developing this strategic document.

On an annual basis, the U.S.-SSA hold a Trade and Economic Cooperation Forum, commonly known as the AGOA Forum, to dialogue trade and investment issues. The


32

15th AGOA Forum was held in Washington, D.C. in September 2016, under the theme “Maximizing AGOA Now while Preparing for the Future Beyond AGOA.”

The AGOA extension underscores the importance of the robust trade between the U.S. and SSA and it introduces measures designed to make the agreement more responsive to unique circumstances in each country. AGOA accords duty-free treatment to virtually all products exported by beneficiary SSA countries to the US. The signature trade initiative provides the most liberal access to the U.S. market. Currently 39 of 49 potentially eligible countries16 in SSA are eligible for AGOA benefits.

However, the U.S. annually reviews each country to determine eligibility consequently beneficiary status may be granted or withdrawn at the discretion of the US President. To be eligible, the US President determines that the country has met or is making continual progress toward establishing, a) a market-based economy; b) rule of law, political pluralism, and right to due process; c) elimination of barriers to U.S. trade and investment; d) economic policies to reduce poverty; e) a system to combat bribery and corruption; and, f) protection of internationally recognized worker rights. Furthermore, the country must not engage in activities undermining U.S. national security or foreign policy interests and gross violations of internationally recognized human rights.

Eligibility requirements, including product and general Rules of Origin (ROO), are set out in the legislation (see www.agoa.info). The table below shows the current AGOA beneficiary countries and their eligibility status for other aspects of the AGOA preferences and the U.S. Generalized System of Preferences (GSP) as well as U.S. imports under AGOA and GSP for each SADC member country, including Gross Domestic Product (GDP) per capita.

Table 1: AGOA and GSP Eligibility, U.S. Imports and GSP/Capita by Country

Country GSP GSP-Least Developed

AGOA AGOA TCF

Provision

U.S. Non-Energy Imports under

AGOA/GSP ($000, 2014

GDP/Capita ($s, 2013

1. Angola 6 5,783

2. Botswana 9,460 7,315

3. Democratic Republic of Congo

N/A 484

4. Lesotho 288,971 1,126

16 Congressional Research Service, April 2015

http://www.agoa.info/


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Country GSP GSP-Least Developed

AGOA AGOA TCF

Provision

U.S. Non-Energy Imports under

AGOA/GSP ($000, 2014

GDP/Capita ($s, 2013

5. Madagascar 3,421 463

6. Malawi 60,031 226

7. Mauritius 226,698 9,203

8. Mozambique 8,704 605

9. Namibia 407 5,693

10. Nigeria 4,080 3,006

11. Seychelles 0 16,186

12. South Africa 3,103,848 6,618

13. Tanzania 18,280 695

14. Zambia 4,991 1,845

15. Zimbabwe N/A 953

Source: Adapted from Congressional Research Service (2015)

Over 6,400 product lines are eligible under the AGOA unilateral trade preference program, including more than 1,800 new tariff line items (including some apparel, footwear, wine, luggage, handbags, watches, certain motor vehicle components, chemicals, steel and many others) in addition to the 4,600 items enjoying duty-free status on the GSP program.

The AGOA renewal through the AGOA Extension and Enhancement Act of 2015 covers the Third Country Fabric (TCF) provision, which is a special rule that allows lesser-developed beneficiary countries17 duty-free/quota-free access into the U.S. for apparel made from fabric imported from non-AGOA beneficiary countries. Although not considered to be a lesser developed country (LDC), Botswana qualifies for the TCF provision together with Namibia and Mauritius following the granting of the lesser-developed beneficiary countries status under AGOA.

AGOA has been credited with creating an estimated 300,000 jobs during the 16 years it has been in existence. Lesotho, a successful apparel exporter under AGOA, estimates that employment in manufacturing rose from 19,000 in 1999 to 45,700 in June 2011 (https://agoa.info). While oil/energy has been the biggest beneficiary

17 Lesser-developed countries are those with a per capita gross national product of less than US$1500 a year in 1998 as measured by the World Bank.

https://agoa.info/


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sector, several non-oil sectors have registered significant exports under AGOA, especially automotive and parts, primary metals and textiles and apparel. The AGOA facility has increased non-oil exports from SSA countries from US$1.4 billion in 2001 to US$4.1 billion in 2015, even though total exports from SSA have dipped due to a decrease in oil and commodity prices. In addition, AGOA has been credited with increasing trade and development provisions, promoting export diversification and encouraging the regional integration agenda.

Of the 15 SADC countries, the Democratic Republic of Congo and Zimbabwe have never been eligible for AGOA while Swaziland was suspended from the program effective January 2015. Madagascar was suspended from AGOA in 2009 before the suspension was lifted in 2014 while Seychelles becomes the first country to graduate out of AGOA, and will cease to be an AGOA beneficiary as of January 2017. Eight of the Trade and Investment Hub’s priority countries are AGOA eligible.

Table 2: SADC Regional AGOA Exports

Country

Total Exports (US$000’s) AGOA Exports (US$000’s)

Total 2014 Total 2015 Total 2015 YTD

(Jan-Jul)

Total 2016 YTD (Jan-Jul)

AGOA 2014

AGOA 2015

AGOA 2015 YTD

(Jan-Jul)

AGOA 2016 YTD (Jan-Jul)

Angola 5,477,548 3,009,896 1,637,013 1,643,288 4,384,113 1,830,569 974,096 1,049,502 Botswana 317,999 225,286 130,269 181,701 9,460 8,259 5,210 3,064 Lesotho 361,252 329,809 175,022 166,414 288,975 299,367 155,548 157,904 Madagascar 217,448 322,267 207,744 235,235 3,537 43,570 18,829 50,725 Malawi 80,259 60,556 28,757 28,937 59,777 49,708 22,179 14,639 Mauritius 401,353 394,888 225,765 191,511 226,803 218,079 123,387 109,641 Mozambique 99,848 109,897 63,513 72,623 8,704 8,568 46 9,120 Namibia 256,220 110,529 59,690 66,941 407 204 15 1,086 Seychelles 3,891 5,839 3,945 2,635 0 0 0 4 South Africa 8,278,624 7,436,989 4,293,803 3,890,174 3,116,064 2,858,203 1,550,951 1,685,861 Swaziland 81,527 19,915 2,824 2,815 77,175 NE NE NE Tanzania 86,236 106,686 76,979 116,236 18,280 28,598 15,567 19,465 Zambia 55,646 58,609 36,528 37,311 4,644 3,739 3,235 1,760 Total 15,717,851 12,191,166 6,941,852 6,635,821 8,197,939 5,348,864 2,869,063 3,102,771 Source: USITC, https://pubapps2.usitc.gov/africa/total_gsp_agoa_import_suppliers.jsp

Table 2 above shows regional AGOA exports from each AGOA beneficiary country in the SADC region from 2014-2016 (YTD January-July). Over 54% and 47% of exports to the U.S. from SADC were under AGOA in 2014 and 2015, respectively, with South Africa being the highest AGOA exporter and the most diversified in SSA. South Africa’s and Angola’s exports constituted 91.4% of the total AGOA exports in 2014 and 87.6% in 2015. This is mainly because of the oil, automotive and mineral exports from these two countries.

South Africa is the only country with a diversified number of sectors taking advantage of AGOA. Angola is predominantly oil. Apart from apparel and energy products, South Africa exports a wide range of goods with vehicles becoming the

https://pubapps2.usitc.gov/africa/total_gsp_agoa_import_suppliers.jsp


35

country’s major export under AGOA – making South Africa arguably the biggest AGOA beneficiary.

Table 3 shows AGOA Exports for seven of the 11 countries covered by the Trade and Investment Hub in comparison with other SSA countries exporting under AGOA. It is evident from Table 3 that other than South Africa and Lesotho, in 2015, Kenya, Mauritius, Ethiopia, Madagascar and Ghana exported more than all the other countries covered by the Trade and Investment Hub. (Note: Although oil remains the top U.S. import under AGOA, oil imports from the region to the U.S. have fallen by about 80% (nearly $40 billion) since 2011.)

Table 3: AGOA Exports for the 7 Priority Countries for the Trade and Investment Hub

Country TOTAL 2014 TOTAL 2015 AGOA +GSP 2014

AGOA +GSP 2015

AGOA + GSP 2016 (YTD Jan-Oct)

South Africa 8,278,624 7,436,989 3,116,064 2,858,203 2,369,300

Lesotho 361,252 329,809 288,975 299,367 243,558 Malawi 80,259 60,556 59,777 49,708 37,738 Mozambique 99,848 109,897 8,704 8,568 10,970 Botswana 317,999 225,286 9,460 8,259 4,348 Zambia 55,646 58,609 4,644 3,739 1,790 Namibia 256,220 110,529 407 204 1,347

Totals 9,531,375 8,331,675 3,565,206 3,228,048 2,669,051

AGOA % of Total Exports 37.40% 38.74%

Comparison

Kenya 591,319 573,208 423,484 434,021 324,665 Mauritius 401,353 394,888 226,803 218,079 177,501 Ethiopia 207,209 310,322 40,996 48,004 57,964 Madagascar 217,448 322,267 3,537 43,570 81,332 Ghana 325,019 309,368 80,340 34,342 46,862 Source: USITC: https://dataweb.usitc.gov

https://dataweb.usitc.gov/


36

Figure 1: 2015 AGOA Sector Profile Including GSP Provisions

2.1.2 Vision and Strategy As highlighted above, currently in the SADC region, South Africa is the only country with a diversified number of sectors taking advantage of AGOA. Angola is predominantly oil. Other countries like Lesotho and Botswana are primarily exporting textiles/apparel.

The vision for this section is to encourage export-led growth and economic development in the SADC region through increased global trade and investment into the region. Focus will be on helping to increase utilization of AGOA in SADC through:

• Assisting selected countries to develop/update/review their national AGOA Response/Utilization Strategies and Action Plans in line with the country National Export Strategies

• Assisting with AGOA promotion, awareness and implementation strategies • Supporting the establishment of new value-added export-oriented industries

particularly light manufacturing in food processing, apparel, footwear, specialty foods as well as accessories

• Promoting women-owned businesses and Small to Medium Enterprises (SMEs)

• Formation of national AGOA Stakeholder Committees • Facilitating participation at trade/exhibition shows

However, to ensure unity of purpose and ownership of the AGOA strategies, the Trade and Investment Hub will work closely with the beneficiary country Governments and relevant stakeholders in developing AGOA Response Strategies. In addition, the onus will be on each AGOA beneficiary country to identify its comparative advantage and the priority sectors for development, and to identify other sources for the required

5%4%

56%

11%

7%

16%

1% Agricultural products

Forest products

Chemicals and relatedproducts

Energy-related products

Textiles and apparel

Footwear

Minerals and metals


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trade capacity building assistance. Some of the proposed support by the Trade and Investment Hub to facilitate increased utilization of AGOA in SADC is outlined in the section on key activities below.

2.1.3 Annual Targets and Expected Results Target Expected Result

• Review and Update Zambia and Malawi Strategies

• Malawi and Zambia AGOA Strategies reviewed/updated

• Develop and implement Zambia AGOA Action Plan

• Zambia AGOA Action Plan developed • Selected activities implemented

• Finalize and Support Implementation of Botswana AGOA Action Plan

• Botswana AGOA Action Plan finalized • Selected activities implemented

• Support the development and implementation of the AGOA Strategy and Action Plan for Mozambique

• AGOA Strategy and Action Plan for Mozambique developed

• Selected activities implemented • Support implementation of the AGOA Strategy

for Lesotho • Implementation of AGOA Strategy for

Lesotho supported • Sector-specific trainings and workshops on

AGOA strategic utilization (Strategy launch, sector-specific AGOA awareness and action plan workshops).

• At least 1 AGOA Strategy launch done • 6 AGOA and Action Plan Awareness

workshops • Train 600 participants on updated

market competitiveness requirements • 2 trade policies implemented

2.1.4 Key Activities To facilitate companies and entrepreneurs to take advantage of AGOA and improve utilization of the program, the Trade and Investment Hub will conduct the following key activities:

Activity 1: Assisting Botswana, Malawi, Mozambique and Zambia to develop or update national AGOA Utilization Strategies and Action Plans in line with National Export Strategies

All AGOA countries benefit from effective AGOA strategies to ensure enhanced utilization of the AGOA program during the next nine years. The Trade and Investment Hub will support Malawi, Mozambique and Zambia on the development and implementation of their national AGOA strategies. This will include identifying AGOA-eligible sectors that can benefit from the program.

Activity 2: Assisting with AGOA promotion, awareness and implementation strategies

Despite that AGOA has existed well over a decade, awareness of the program remains low; many stakeholders are unaware of its existence let alone the regulations and the requirements beneficiaries must fulfill to take advantage of the trade preferences it confers. There are many opportunities to provide needed support through AGOA


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Awareness seminars during the development and implementation of the strategies. The Trade and Investment Hub, in liaison with the Ministry of Trade (MoT) in the selected countries, will organize AGOA seminars/workshops for targeted participants to help them address identified constraints to increased utilization of the AGOA facility.

Activity 3: Support establishment of value-added export-oriented industries particularly light manufacturing in food processing, textiles and apparel, footwear, specialty foods as well as accessories; Assess companies and prepare business/strategy plans

The Trade and Investment Hub will provide the following support to selected sectors:

• Assess target value chains and design strategies for export development • Advice on export quotations, buyer identification and visits • Technical assistance in product adaptation, labeling, packaging and marketing • In liaison with the Agribusiness component, help selected companies with

relevant management system certification such as HACCP and GAP • Disseminate subsector export know how – workshops • Technical assistance interventions to solve gaps in value chains e.g. SPS, post-

harvest, packing centers, food laboratory accreditation (ISO 17025), supply chain, technology and policies

• Training on regional and U.S. import requirements, SPS, quality standards and best manufacturing practices for agri-food products

• Online platform/catalogue to promote agri-food from the countries • Link supply to tourism sector marketing (e.g. gifts with sauces, preserves,

honey, dried fruits)

Activity 4: Promote women-owned businesses and small to medium enterprises (SMEs)

Apart from oil and oil related industries and the apparel sector, there has been a limited number of countries that made significant use of the AGOA preferences and there are doubts whether AGOA beneficiary countries have managed to translate the short-term preference benefits into transformative changes in their manufacturing capabilities and overall competitiveness. To facilitate improved utilization of AGOA, there would be need to:

• Develop programs aimed at promoting small businesses and entrepreneurship in the region using such initiatives like linkage programs between SMEs and large businesses

• Collaborate with the African Women Entrepreneurship Program (AWEP) a U.S. State department supported program, AWEP chapters in the region and the local women in business associations

• Have targeted interventions for women owned businesses, including support to women entrepreneurs to participate in AGOA Forums’ annual AWEP programs


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Activity 5: Facilitate formation of national AGOA Stakeholder Committees

The Trade and Investment Hub will work the M0T in each of the countries to set up where necessary national AGOA Stakeholder Committees and enable them to ensure effective development and implementation of AGOA strategies.

Activity 6: Facilitate participation at trade/exhibition shows

Adequate exposure of the organization and export-ready products helps to provide opportunities for linkages between the buyers and suppliers as well as possible investors. The Trade and Investment Hub will provide support to export-ready companies to participate at trade/exhibition shows in the region and internationally.

Activity 7: Support private sector business organizations’ efforts to provide optimal shared services to users

This activity will be conducted in collaboration with other partners working in similar ways such as Esoko, Maersk, Standard Bank, etc. For example, Vodacom and Standard Bank are supporting Build, a sales platform for SMEs. Build offers integrated marketing, website design/management, e-commerce, customer relationship management, and analytics tools to help businesses move goods across borders and between continents. Over the past two years, 600,000 merchants have registered for the service, which has attracted interest from organizations with hundreds of thousands of female entrepreneurs, such as Lioness of Africa. Trade and Investment Hub support for innovative platforms like Build will link entrepreneurs to markets, and facilitate regional discussions on challenges facing businesses as well as generate increased business linkages. The Trade and Investment Hub seeks to establish proof of concept by finalizing a SOW or Letter of Intent with a minimum of two business support organizations in at least three countries that have a common interest in providing a shared regional delivery platform to its members.

2.1.5 Strategic Constraints Analysis Despite the touted benefits from the AGOA preference program, the U.S. market has largely remained unexploited over the years. Several factors limit AGOA beneficiary countries from effectively utilizing the program, including limited skilled labor, low levels of technological innovation, lack of economies of scale, and high-cost and unreliable energy (USITC, 2014). In addition, poor infrastructure, especially for transport, and NTBs, such as cumbersome administrative regulations and customs procedures, negatively impact the competitiveness of most SSA products, particularly from the landlocked countries. Below are some of the constraints to effective utilization of AGOA specific to the SADC region:

• Inadequate awareness of the AGOA program and U.S. market requirements • High cost of compliance with technical regulations, standards and quality

certification


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• High production costs especially due to the cost of utilities (water and electricity) and labor

• Inadequate pool of skilled technical manpower coupled with challenges in obtaining work permits for the required number of expatriates

• Poor competitiveness due to distance to market, limited production capacity, and inconsistent quality of products

• Stringent procedures, technical regulations and quality standards in the U.S. market

• Unavailability of raw materials, material varieties, and the required factory facilities

Effective implementation of the above strategies would go a long way in helping to overcome some of the constraints to exporting under AGOA and would help improve utilization of the program.

2.1.6 Key Events Dates Event Name Event Location Objectives

Summer 2017 16th AGOA Forum

Lomé, Togo • Presenting on the regional competitiveness and investment opportunities

• Participation in seminars • Facilitate participation of AWEP

representatives from the region for the Civil Society Workshops


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2.2 Specialty Foods

2.2.1 Regional Context and Overview Specialty food sales reached $120.5 billion in the US in 2015.18 Fifty-eight out of 61 specialty food categories enjoyed double-digit sales growth in 2015, more U.S. consumers are dining out and seeking high-quality and flavorful foods, and e-commerce/online-sales is one of the fastest-growing channels.

Southern Africa boasts of specialty food producers of sauces, chilies, jams, marmalades, jellies, vegetarian products, healthy snacks, olive pastes and olive oils, honey, fruit concentrates, juices, pulps, and guacamole, among many others. Several the companies, including some assisted by the previous Trade Hub, are already exporting to Europe, the US and other markets.

The Mordor Intelligence’s Global Specialty Food Ingredients Market: Growth, Trends and Forecasts (2017- 2022) reports that the increasing number of health conscious consumers who prefer convenience foods is propelling the global specialty food ingredients market, which is estimated to reach US$90 billion by 2021, up from US$63.8 billion in 2016, with a compound annual growth rate (CAGR) of 5.9% from 2016 to 2021.19 North America and Europe are the major end-users of specialty food ingredients and drive demand for the functional foods, which use them.

Companies in Southern Africa extract pulp and powder from plants, mainly marula and baobab fruits, and produce honey. The ingredients are used in the baking, beverage and snack industries, with top-market retailers such as Woolworths stocking flavored snacks and beverages. The Baobab industry in Malawi alone is estimated at US$8m, making Malawi probably the largest baobab hub in Africa. Industry service providers like Baobab Foods are newly established in Knysna, and Afriplex in Cape Town. The previous Trade Hub, through the Southern Africa Baobab initiative (SABi) project, assisted the industry, and, working with PhytoTrade Africa, gained the US Generally Accepted as Safe (GRAS) certification for baobab ingredients. Companies like TreeCrops Malawi have subsequently been able to supply a U.S. company, Baobab Foods.

In addition, companies are also extracting oil from baobab, mongongo and marula nuts, which is used in the cosmetic industry. The potential for increased partnership between the cosmetic oil industry and Shea Butter companies in West Africa merits further exploration and support.

In 2015, the US imported US$583.8m worth of honey (HTS 04090000), and US$332.2m January-October 2016. Of the 2016 value, South Africa exported 18 Specialty Food Association and Mintel (https://www.specialtyfood.com/media/filer_public/c8/f7/c8f79048-0861-4175-8939-0aeb7b55a015/2016_soi_8pg.pdf) 19Mordor Intelligence https://www.mordorintelligence.com/industry-reports/global-specialty-food-ingredients-market-industry?gclid=CNyiiKOIk9ECFcsy0wodkdoNLA

https://www.specialtyfood.com/media/filer_public/c8/f7/c8f79048-0861-4175-8939-0aeb7b55a015/2016_soi_8pg.pdf

https://www.specialtyfood.com/media/filer_public/c8/f7/c8f79048-0861-4175-8939-0aeb7b55a015/2016_soi_8pg.pdf

https://www.mordorintelligence.com/industry-reports/global-specialty-food-ingredients-market-industry?gclid=CNyiiKOIk9ECFcsy0wodkdoNLA

https://www.mordorintelligence.com/industry-reports/global-specialty-food-ingredients-market-industry?gclid=CNyiiKOIk9ECFcsy0wodkdoNLA


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US$27,300 and Zambia US$25,100 worth of honey to the US. According to USITC, other sub-Saharan Africa countries exporting honey were Cote d’Ivoire, Ethiopia and Ghana. Honey is AGOA/GSP eligible.

According to USITC20, in 2015 the US imported US$13.4m worth of Pulp of fruit nesi, and other edible parts of plants nesi, excluding mixtures (HTS 20089980). However, small quantities were exported from South Africa and Ghana.

2.2.2 Strategic Constraints Analysis

Challenges Solutions/Interventions 1

Difficulties to meet quality expectations of the international market due to increasing demand in raw material resulting in decline of quality raw materials.

• Build capacities of companies in managing quality standards better and support train their rural suppliers in quality aspects

• Build capacities at collector and supplier levels to meet basic hygiene standards.

2 Compliance with stringent international regulatory guidelines, including sustainable harvesting.

• Training on regulatory requirements, like product packaging, HAACP.

• The companies can work with and train communities on sustainability and traceability

3 Lack of processing facilities, yet incredible natural resources, the indigenous plants remain untapped.

• Promoting investment in the sector, supporting current processing facility

• Continued market development efforts

4 Market Information and identification of agencies

• Providing sector specific market information,

• Supporting participation in relevant trade events,

• Bringing industry experts to the region to meet the industry players.

5 Lack of collaboration among players in the region, resulting in price distortions.

• The Hub can help bring players together for closer collaboration, volumes management, coordinated buyer approaches.

2.2.3 Vision and Strategy To realize the vision of a specialty foods sector that creates jobs and incomes, the Trade and Investment Hub will seek to increase value of exports to the US and other markets. The strategy includes implementing initiatives to increase export competitiveness, establish B2B linkages and disseminate market information.

20 USITC https://dataweb.usitc.gov/scripts/tariff_current.asp

https://dataweb.usitc.gov/scripts/tariff_current.asp


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2.2.4 Annual Targets and Expected Results Increase exports by US$3 million by Trade and Investment Hub-assisted companies, provide technical assistance to 30 companies, with 12 companies adopting new technologies; exhibit at three trade shows, increase the utilization of AGOA and other relevant trade agreements, and facilitate 300 B2B linkages.

2.2.5 Key Activities Export and regional market development

• Market sensitization workshops, including sector specific AGOA workshops • Facilitating linkages with local and regional retailers, • facilitating inbound/outbound trade missions, buyer visits

Trade Show participation • Pre-trade show training, by a trade exhibition training expert • Organizing B2B linkages, pre-arranged meetings ahead of trade events

Competitiveness and regional integration • Supporting regional collaboration, promoting products from the region and

not just from individual companies, • Conducting market and sector specific labelling/packaging workshops, • Capacitating trade and investment promotion agencies (TIPAs) and

associations on market compliance issues, and • Providing a grant to a specialty food association for the development of the

sector. 2.2.7 Key Events

Dates Event Name

Event Location

Objectives (firms, linkages facilitated, pipeline orders facilitated)

Feb 15-18, 2017 Biofach Nuremberg Germany

Observe largest Organic Food Show in Europe

Feb 26- Mar 2, 2017

Gulfood Show

Dubai, UAE

• Assist 10 food companies access the global market,

• Facilitate 100 business linkages • Generate US$2m export sales

June 25-27, 2017

Summer Fancy Food Show

NY, USA • Assist 15 specialty food companies enter the US market

• Facilitate 150 business linkages • Facilitate US$2m in export sales

within 12 months of the show 14-16 Sept, 2017, Natural

Products Expo East

Baltimore, USA

• Assist 1o natural food and product companies to enter the US market

• Facilitate 100 business linkages • Facilitate US$200K in export sales

within 12 months of the show


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2.3 Nuts, Dried Fruit, Pulses and Sesame 2.3.1 Overview Nuts, dried fruit, pulses and sesame businesses are excellent leverage points to benefit millions of smallholder farmers by increasing volume and value of exports from the SADC region. In Mozambique and Zambia for example, more than one million people in rural areas receive income from collecting cashew nuts. Sesame and pulses are also grown by millions of smallholder farmers in the region. Macadamia presents opportunities for investments in plantations and shelling facilities in most of the SADC countries. The industry has created more than 12,000 jobs in South Africa alone to date. The macadamia market is growing fast: Between 2014 and 2015, demand rose by 15%, according to the International Nut and Dried Fruit Council (INC). The cashew market continues to boom in all major markets – it is US consumers’ favorite snack nut. US imports have grown at an average annual rate of 4.4% between 2000 and 2015, according to Red River Foods, one of the largest US nut importers. Mozambique and Cote d’Ivoire are Africa’s largest exporters of processed cashew kernels. Processing all of Mozambique’s cashew crop domestically could create up to 8,000 new jobs. Pulse consumption is growing strongly in Asia and Africa, projected at 24% higher by 2030 than current levels21. Africa currently supplies 70% of the world’s sesame to a fast-growing market with the strongest growth rates in Asia. Dried fruits are gaining in popularity among US and European consumers as part of a trend towards more health-conscious eating.

21 Global and Regional Trends in Production, Trade and Consumption of Food Legume Crops, University of Michigan, 2011, https://impact.cgiar.org/sites/default/files/images/Legumetrendsv2.pdf.

https://impact.cgiar.org/sites/default/files/images/Legumetrendsv2.pdf


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2.3.2 Key Activities The Trade and Investment Hub will assist exporters of these products to access new markets in the region and overseas by responding to the market’s requirements and taking advantage of the latest trends and developments.

• Cluster Development and regional industry association capacity building—There are a few industry associations which could be further linked with the Southern Africa region. Assistance to ensure expanded focus and engagement will be done through technical assistance and grants.

• Market linkages, assistance with organic certification, traceability and food safety and quality standard implementation will open new market opportunities

• Business Planning and Investment facilitation—several businesses in this sector require expanded and improved capacity and operating funds. Technical assistance to improve business plans and obtain expansion capital will be provided.

2.3.3 Key Events


Objectives

(firms, linkages facilitated, pipeline orders facilitated)

9-11 Feb 2017 World Cashew Convention

Singapore Conference to discuss global cashew issues, networking, business tie-ups and information exchange

25 Feb 2017 Gulfood Show Dubai Middle East market are huge nut importers and consumers and this international food trade show also draws considerable European, Asian buyers and traders as well.

May 19-21, 2017 INC World Congress on Nuts & Dried Fruits

Chennai, India World’s largest nut and dried fruit traders gather to discuss nuts and dried fruit trends, networking, business tie-ups and information exchange

25-27 June 2017 Fancy Food Show NYC US largest specialty food show. September 2017 African Cashew Alliance

Annual Conference Benin Largest Cashew Focused Conference at origin, gathers

buyers, traders, farmers’ associations, processors, researchers, government stakeholders, equipment providers, and financial service providers

October 2017 ANUGA Germany Largest international food trade show


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2.4 Accessories and Footwear 2.4.1 Context and Overview Southern Africa, with its rich handcrafts and underutilized factories, has the potential to tap into the fast-moving and growing global accessories market. While consumers and buyers often hear of or see products made in East or West Africa, the Southern Africa region, except for South Africa, is underexposed at scale to buyers for various reasons including weak regulations, lack of knowledge, weak marketing and branding, and lack of access to market. The Trade and Investment Hub will work with export-ready firms to increase the production and sales of accessory items, such as baskets, wood products, jewelry, and leather goods to regional and global markets. By providing technical assistance along the value chain and by strengthening export marketing associations, the Trade and Investment Hub will not only help manufacturers maximize their capacity and increase exports, but also reach the significant number of women who work in these value chains.

The accessories industry generates over $50.8 billion annually in the United States alone, according to the Accessories Council, which represents over 270 brands, retailers, and associations. In the United Kingdom, Mintel estimates that British consumers spent £2.5 billion (about US$ 3 billion) on fashion accessories in 2013 (Mintel’s Fashion Accessories Report UK 2014) and globally more than $38B is spent on home décor a year (Mintel 2015). The accessories sector includes a range of products, from eyewear to bags to footwear. Global brands and designers tend to place a high emphasis on accessories because margins are higher and accessories are easy to sell and easy to gift (Accessories Council). Smaller accessory items, such as jewelry, are often strategically placed as consumers walk the aisles and check-outs. According to Mintel’s 2014 Fashion Report, consumers over-55 are most likely to buy handbags and jewelry on impulse – more than quarter (26%) of respondents agreeing. In addition, 25% of consumers who have bought fashion accessories in 2013 bought them online (Internet specialists such as ASOS, Amazon, eBay, etc.). It is projected that the accessories market will reach $700 billion by 2019 (Euromonitor International) with costume jewelry in growing demand and a preference for mid-priced bags over luxury labels (Tamara Sender, Senior Fashion Analyst). The Southern Africa region can be a dominant player in this expanding industry with potential to export large quantities of baskets from Zambia and Botswana and jewelry from South Africa. Countries such as Namibia have the opportunity to enter the market as a leather goods producer.

Market Demand. Three markets are appropriate for Southern Africa manufacturers: 1. Retail; 2. Corporate Sponsorship and Giving; 3. Corporate Footwear and Security Wear. The retail market products include jewelry, footwear, bags, gloves, home décor items that are sold by companies such as West Elm, ABC Home, Macy’s, Club Monaco, J. Crew, Harrods, DSW Shoes, Nordstrom and small boutiques. Corporate sponsorship and giving include airlines, business class care items, sports teams, hotel chains, conferences, etc., that include a wide range of items from leather bags,


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keychains, blankets, branded soccer balls, and candles. There are special opportunities to link to buyers such as “To the Market” that are providing Apple and Microsoft with corporate gifts made from developing countries. Additionally, many corporate brands either have a Corporate Social Responsibility mandate or have initiatives to purchase from African or women-owned businesses. For instance, Wal-Mart has the Enactus Women’s Economic Empowerment Project Accelerator and in 2013 West Elm, as part of the Clinton Global Initiative, committed to invest US$35 million in artisan partnerships and has an “Impact Sourcing Program.” Representatives of these initiatives indicate the programs are largely underutilized.

Regionally, companies such as Coca Cola are often purchasing products for their conferences and events. Many firms in the region are currently buying their protective footwear, goggles, and gloves from China. There is an opportunity for manufacturers in Lesotho and South Africa to provide these products domestically and regionally.

In addition, according to ITC, leather and leather products are among the most widely traded products worldwide. It is estimated that the international trade exceeds US$100 billion annually, and it is expected to continue to grow. The World Bank’s report also found that the demand for leather and leather products is growing faster than supply22.

What Southern Africa has to offer (supply). Southern Africa has a growing workforce (the largest in the world by 2035), industrial parks that are already producing quality garments and apparel, and various tax incentives. Under AGOA, accessories such as footwear, scarves, home décor, jewelry, and bags are all eligible (with some exceptions such as all cotton bags, etc.). Southern Africa also has unique craftsmanship in certain value chains that cannot be found anywhere else in the world, such as Zambian baskets, South African beadwork on belts and painted ostrich eggs, and handcrafted candles from Swaziland.

In addition to finished leather goods, there is ample potential for increased exports in the wet and finished leather hide industry. Several of the region’s tanneries are already exporting wet or finished cow, crocodile, and goat hides to China, Singapore, and India. While African countries own the fifth largest global livestock population, they only account for 4% of world leather production and 3.3% of the value addition in leather (World Bank). The ITC reports that this is due to a lack of technical expertise, access to information, visibility, quality management, marketing investments, and international industrial alliances (see http://www.intracen.org/itc/sectors/leather/). The Trade and Investment Hub will work with these tanneries and leather goods companies to improve their quality and scale through technology upgrades as well as new investment.

22 See http://www.worldbank.org/en/country/kenya/publication/kenya-leather-industry-diagnosis-strategy-action-plan

http://www.intracen.org/itc/sectors/leather/)

http://www.worldbank.org/en/country/kenya/publication/kenya-leather-industry-diagnosis-strategy-action-plan

http://www.worldbank.org/en/country/kenya/publication/kenya-leather-industry-diagnosis-strategy-action-plan


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Footwear is also a sector that has high export potential, regionally and globally. Many of the manufacturers have exported shoes in the past, but need assistance with additional B2B linkages. There are opportunities to help manufacturers with investment, B2B, sourcing of raw materials, and upgrades in leather.

Accessories opportunities by country

Country Product

Botswana Baskets and other home décor items

Mozambique Wood carvings for home décor, baskets, jewelry made from wood, cow horn, and straw, and kids toys

Namibia Leather goods, baskets, ostrich shell jewelry, cosmetics, kids’ toys

South Africa Leather goods including belts, gloves, handbags, shoes, jewelry, home décor, cosmetics

Swaziland Candles, baskets, batik, leggings, woven home décor items, kids’ items, brass and cow horn jewelry

Zambia Baskets, wood carvings, leather goods

The accessories market in Southern Africa includes handmade items (handcrafts); large scale factory manufacturers and firms in the region can be grouped by the following categories: A) Firms with global exporting experience, B) Firms with regional exporting experience, C) Firms with no export experience or Greenfield investments.

Assistance will vary by product and experience and will help increase sales of firms in A and B.

The Social Impact. Trade and Investment Hub interventions and support will lead to increased standards in the workplace and more B2B linkages. Global buyers insist that companies follow international regulations on labor requirements, workforce safety, job benefits, etc. The expectations and requirements of the buyers will help enforce better standards and policies.

Expanded trade will also lead to increased job opportunities for women in addition to increased job creation overall. Lesotho’s textile sector growth has shown that manufacturing investment can lead to job creation (McKinsey). Similarly, by upgrading the accessories and leather value chains based on lessons learned from Lesotho, there are opportunities to increase jobs. Accessories, particularly handcrafts, are traditionally a sector that employs more women. "Increasing exports,” said Asad Alam, the South Africa World Bank Country Director, “particularly in


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manufacturing, may be crucial for low-skilled job creation needed to substantially reduce high overall and youth unemployment.”

Increased employment opportunities. A 2012 McKinsey report revealed that the manufacturing sector provides one of the most stable sources of jobs. Other positive multiplier effects have also been noted such as sector recognition, increased savings, increased technology connectivity, increased consumption, improved nutrition, increased access to health care, etc.

2.4.2 Vision and Strategy The Trade and Investment Hub vision is to develop a highly efficient and competitive accessories supply chain that meets the demands of the global market. Trade and Investment Hub activities and development of the accessories value chains will:

• Create sustainable jobs, with an emphasis on empowering and employing women

• Increase the sales and exports regionally and globally of targeted firms, maximizing the capacity of larger-scale factory manufacturers and assisting in building a scaling model for production

• Market and brand Southern Africa as the “go to” for high quality accessories by making sure the products are cost competitive and design conscious

• Raise awareness and utilization of trade agreements, including AGOA

While Trade and Investment Hub activities will focus on the end market, sales are contingent on business management (communication, timeliness), quality of the product, cost of the product, workforce, enabling environment including electricity; consequently, technical assistance will reflect a holistic, whole-of-value-chain approach.

Key initiatives will include:

• Determine the export opportunities of accessories sectors for Trade and Investment Hub- supported countries. Understand the constraints that these sectors are currently facing and where the Trade and Investment Hub can assist.

• Provide technical assistance on certifications that are needed to export certain accessories and goods.

• Assess and determine trade shows to attend based on products and buyer demand. Prep companies for trade shows and provide workshops on AGOA utilization.

• Partner with the Accessories Council to bring buyers to Southern Africa and to showcase accessories from the region to the United States and other markets.

• Conduct buyers survey to better understand market demand and design needs (design orientation). Figure out their non-negotiables and expectations.


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• Facilitate buyers’ missions to select countries around Source Africa, Indaba or other continental trade shows. Target buyers who have initiatives to help women-owned businesses, CSR, Africa or development initiatives, fair trade.

• Benchmark successful models (i.e. what works and what does not, how could or could not this work in other countries). Take the training module to other countries if it could be applied to help strengthen association and buying facilitation.

2.4.3 Annual Targets and Expected Results FY2017 Annual Target Expected Results

Capacity building assistance for 1 association in the region working with accessories and footwear companies.

Strengthening of an association to support export marketing. Increase in membership in the associations.

One partnership and collaboration developed between associations and other accessories platform or groups

Support buying missions in the region. Three deals signed

80 B2B linkages from SATIH TA activities Two deals signed

15 companies trained on utilization of AGOA and buying requirements and trade show preps

15 companies trained to utilize AGOA and to negotiate and fulfill orders with buyers

Membership at the Accessories Council

Participation of 5 companies in Accessories Council events, resulting in increase in knowledge of design concept and consumer preferences for future exports.

2.4.4 Key Activities Date Activity Result / Outcome

Increase Competitiveness in Targeted Value Chains

March/April / May 2017 Analysis of the leather supply chain in Namibia, South Africa, Zambia, and Botswana.

Accessories assessment to be conducted in Mozambique, Namibia, South Africa, and Botswana

-Leather goods opportunities

- TA for leather VC

- Footwear opportunities identified

-Accessories strategy completed

- TA identified

- B2B opportunities

Increase B2B Linkages by supporting export ready accessories firms to attend trade shows

April 2017 Discuss collaboration with the Accessories Council to facilitate buying trip or marketing trip in the US of Southern Africa products

-Marketing and branding expanded

-Increase in B2B

-Exposure to the global market


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-Opportunities to work with women entrepreneurs

-Cost sharing opportunities

June to September 2017 Plan Leather Fair for 2018 with EATIH and WATIH

-Increase in sales and production

-Knowledge sharing

-Opportunity for competitive input sourcing

August/September 2017 Accessories trade show -Increase in exports

July / August 2017 Pre-trade show workshops (working sessions).

-AGOA and other trade agreement awareness increased

-Better understanding of demand

-Understanding of how to fulfill buyer orders

-Negotiation skills increased

-Sample process awareness

-Increase in sales and exports

April to September 2017 Contact designers / brands that have the desire to produce in Southern Africa or that support handmade goods from developing countries – Kate Spade, West Elm, Pier 1 Imports, Club Monaco etc. Invite them to a trunk show or on a buying mission. (Global Goods, Nest, Net-a-porter)

-Increase in exports

-Quality improved

-Design exposure

-Production scaled

-Regs and standards enforced

-Increase in jobs

Investment and Grant Opportunities for Key Value Chains

May/September 2017 Buyers Missions/Investment Forums

-Increase in exports

-Knowledge awareness of the region (marketing and branding)

March to September 2017 Facilitate introductions to the Investment and Credit team to explore opportunities such as foreign investment, DCA, etc.

-Increase in capacity

-Increase in production

-Ability to fulfill POs

-Upgrade in technology

-Credit score history

-Buyer confidence

2.4.5 Strategic Constraints Analysis While Southern Africa has a lot to offer, the sector faces a variety of constraints and challenges. These are presented in detail by country below; however, challenges occur across the region: weak regulatory environments, lack of environmental regulations


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and standards, small production levels that are not currently cost competitive, lack of knowledge on AGOA and other trade agreements, high cost of inputs, and difficulty accessing credit (32% of businesses surveyed in Africa by McKinsey said Access to Finance as major constraint on growth). In addition, the accessories sector, in particular, struggles from small orders, which generally do not get factored in export statistics.

While wages are competitive in sub-Saharan Africa (for instance, monthly unskilled manufacturing wages in Zambia are $105, compared to $240 in China), overall sub-Saharan Africa is less competitive because of poor logistics and infrastructure, as well as cumbersome bureaucratic procedures, high costs for inputs, duties and transportation. Africa’s ports are often congested and poor roads, limited transportation options and a lack of quality logistics providers (McKinsey) are impediments to trade, too. As seen in Swaziland, Zambia, and South Africa, the tariffs and duties are often unclear and costly, and inconsistent energy supply kills productivity.

Constraints Opportunities / Strengths

Threats Proposed Approach

Zambia

Although there is raw material available, growth requires large investments for exporting value added products, as well as training, technology.

Current policies and enforcement create challenges for the development of the new value chains.

Costs of handicraft items such as baskets, horn, wood are quite high.

Lack of access to low cost finance and high interest rates on loans makes borrowing challenging.

High freight costs to markets and high costs for inputs and raw materials as a landlocked country.

Exports of non- value added raw hides and skins create a shortage for the tanneries.

Abundant raw materials especially hides and skins.

Growing crocodile hide production.

Establishment of a horn factory to produce buttons etc. as it’s a byproduct of the slaughter houses. Items produced from horn were great quality, but costly.

Baskets are well-done and unique. Can make other accessories out of the woven materials such as jewelry, bags.

Great potential for investment and expansion of leather industry. The leather and crocodile industry could earn significant foreign exchange for the country and offer employment to a reasonable proportion of Zambians.

Illegal smuggling.

Electricity issues.

Assess capacity, viability of value chain and suggest a strategy for exporting selected products with export potential. Identify potential SMEs and producer/artisan groups. Select two companies for direct assistance.

Provide focused technical assistance in sourcing inputs, production skills, product design and marketing.

Consolidate and expand export supply. Viability study of export consortia and an association or group established.

Promote new investments in the value chain such as production centers, distribution warehouses.

Promote greenfield investments in wooden furniture parts and pieces, metal work in copper and steel, stone jewelry.


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Swaziland

Technical assistance on product development, marketing and branding, and business management.

High costs of raw materials. Importing almost everything.

Vibrant handicrafts industry.

Strong fair trade association and network.

Potential for increased exports as may firms have already been exporting.

Unique products.

High costs.

Regional trade border issues.

Tariffs that are unexplained.

Work with SWIFT to help them become self-sustainable.

Buyers Mission Trip to Swaziland.

Malawi

Inadequate quality material and capacity in the sector.

Limited formal knowledge in hides, skins and leather issues

Lack of value addition to the raw material.

Inadequate/crumbling slaughter house infrastructure.

Inadequate conducive policies to support the sector.

Leather specific:

Existence of community structures that offer a conducive environment to undertake community-based activities.

Presence of good communication facilities and presence of a good extension system for delivery of livestock services.

Cheap labor force.

Too many foreign buyers on the market who compromise on quality.

Lack of investment in the sector.

High staff attrition in the livestock sub-sector due to the HIV/AIDS pandemic.

A dwindling livestock population.

Explore the viability of regional production/ marketing complementarity with other countries that have similar capacities in selected products.

Mozambique

Access to market

Weak associations and organizations

Disorganized groups all working individually

Jewelry

Wood carving

Home décor

Sandals

Quality is not consistent

High costs for raw materials

Find market opportunities for wood products and baskets.

Provide training to an umbrella consortium association that can serve as an export marketing organization.

Namibia

Low capacity of firms.

Opportunities for the leather sector including production of leather goods and footwear. Large livestock market.

Cosmetic market is growing using local Namibian oil (Marula)

Ostrich shell jewelry making is expanding.

Labor force is small Assessment of the accessories and leather sector.

Upgrade in the leather value chain. Work with the association and butchery.

Support cosmetic companies who need assistance on certifications in order to export

Help organizations that are supporting groups make baskets


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Botswana

Manufacturers have been shutting down their factories and moving them elsewhere because there isn’t enough output.

No single authority with overall responsibility for hides and skins improvement. A weak leather association to represent the sector.

No strong financial incentive.

Very low collection of skins and no finished leather tannery.

Sector specific environmental standards are not available and need to be developed.

Lack of equipment, especially lasts and patterns.

Good Animal Husbandry and Artificial Insemination program. Effective disease control strategies.

Bigger hides due to cross breeding.

Well established hides and skins extension services. Good quality hides from Botswana Meat Commission Abattoir (BMC).

Leather Tanning:

Market for wet blue in the European Union.

Labor intensive, could provide employment opportunities

Animal disease outbreaks and natural disasters such as drought.

Environmental pollution and no environmental standards to control.

Domination of the foreign controlled retail chain stores from South Africa.

Strengthen the leather association by connecting them to other leather associations and providing training.

Technical assistance on the application of cleaner technologies to safeguard the environment. Carry out an environmental impact assessment.

Competitive grant opportunities for investment in establishing leather tannery, leather goods factory, butchery, etc.

TA on implementation of grading and pricing policy.

South Africa

High cost of labor. Low productivity.

Unstable currency.

High entry barriers to the establishment of tanneries and footwear factories.

Export parity pricing of raw materials and import parity pricing of footwear and leather goods.

Substantial, world class feedlot industry producing good quality raw material.

Presence of major chemical companies.

Excellent physical infrastructure.

Strong governmental policy framework.

Well established international trading regime.

High unemployment.

High cost of doing business in SA.

Depopulation of the rural areas.

Cost of labor is high.

Work through associations such as SAFLEC and accessories council to support the sectors.

Create market linkages for leather goods, jewelry and home décor.

2.4.6 Key Events Dates Event Name Event

Location Objectives

Feb 2017 Sourcing at MAGIC Las Vegas, Nevada -15 Southern African Companies exhibit at the trade show

-150 business linkages facilitated

-$3M USD pipeline orders facilitated

May 2017 Source Africa


-Partner with Source Africa to increase industry recognition in the region

-18 companies exhibited at the trade show


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Objectives

- $5M in USD pipeline order facilitated

- 150 B2B facilitated

May 2017 Buyers Mission Swaziland, South Africa, and one or two other countries

-$700,000 in exports facilitated

- 5 buyers to the region

August 2017

Trade Show (accessories) NYC, USA

-6 companies exhibited at the trade show

- $2M in USD pipeline orders facilitated

- 200 B2B facilitated

August /September 2017

Buyers Roundtable or Trade Mission for Accessories and Apparel / Shoes

USA, TBD -30 buyers to attend a roundtable to increase awareness of companies in Southern Africa

-5 buyers to sign up for buyers’ mission to the region

-150 B2B linkages facilitated


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2.5 Apparel 2.5.1 Overview Textiles and apparel contribute to the growing economies of several SADC states including Lesotho, South Africa, Mozambique, Botswana and Zambia. Lesotho and South Africa lead the pack in producing textiles and garments with most larger factories owned by the Taiwanese, Chinese, or in a local partnership with a foreign investor.

While the industry has grown in some countries, a shift is occurring in other countries with manufacturers preferring to produce elsewhere due to rising costs of inputs in countries and hampered production. While new companies are taking advantage of trade perks in industrial zones and a highly skilled workforce, they also face challenges such as investment capital and lack of market knowledge or awareness.

According to 2010 export figures, exports of certain products have steadily increased over the last five years, while other products such as textiles have not increased at all or seen only a small increase. For instance, Lesotho, which accounts for the highest utilization rate of AGOA, has seen a large increase of exports of wool and mohair from US$ 7,954,967 in 2010 to US$ 26,607,076, with a steady increase every year. However, with textiles and garments, the numbers are unsteady, with increases some years and decreases others. In addition, some countries, such as Swaziland, have seen manufacturing decrease due to AGOA ineligibility; instead, they have been mainly exporting to South Africa.

Regional Overview Textiles & Apparel Exports to the US

US$000’s

Country AGOA + GSP 2015

AGOA + GSP 2015 YT(Jan-

Sep)

AGOA +GSP 2016 YTD (Jan-

Sep) Total 992,589 734,713 748,301

Kenya 367,282 277,873 261,793 Lesotho 299,314 219,517 209,565 Mauritius 206,892 154,452 139,521 Madagascar 39,851 25,063 67,010 Tanzania 27,262 18,911 27,049 Ethiopia 20,340 14,712 27,001 Ghana 9,118 7,086 5,816 South Africa 7,827 5,796 5,119

Botswana 8,251 6,963 4,129 Malawi 6,268 4,158 941 Rwanda 175 175 326 Source: USITC /dataweb


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Since SADC tariff liberalizations were only attained in January 2012 (free trade was achieved in 2008), regional trade of apparel and textiles has increased. Most countries supplying South Africa retailers have increased their foothold in SADC and other regions.

Overview of SADC countries manufacturing apparel and/or textiles

Country Description

Botswana Only one company, Carapparel, has been exporting to the US under AGOA in Botswana. It has since scaled down and moved to Lesotho. At its peak, over 10 companies were exporting to the US.

Several companies are exporting to South Africa, taking advantage of the SACU arrangement.

There are two vertically integrated companies, B&M Garments (producing T-shirts and underwear) and Nortex (producing toweling)

The buy local drive for foreign retailers based in Botswana presents investment opportunities within the value chain

Malawi Only one company, Win-Win Garments, has been exporting to the US under AGOA. Mapeto is producing traditional fabric.

Mozambique Textiles

There is need to do an assessment trip there; the prior Trade Hubs conducted a SWOT analysis, but it is outdated. We need to find a new direction considering changes taking place, for instance, old mills being revived, new owners/investors taking over companies like Maputo Clothing, etc.

Lesotho Driven by textile and clothing, mostly for US and South Africa

Enabling environment and regulations – have issues.

Diversification needed. Cannot be dependent on AGOA.

B2B linkages

Border/Customs issues with SA

South Africa Market / B2B linkages regionally and internationally.

SA is the market for the region. Retailers have been scaling down their imports from Asia, increasing regional imports for speed-to-market and foreign exchange reasons.

Fabric productivity in SA is improving due to the IDC driven plant refurbishment drive. This will benefit regional fabric sourcing for fast fashion. Need to assess impact of this investment on overall output

The new AGOA legislation provision for sourcing fabric from within South Africa is too restrictive, and requires documentation to demonstrate eligibility for the third country fabric provision especially on fashion fabrics that require imported fibers such as polyester/ elastane etc.

Swaziland Not AGOA eligible now, but maybe need to do a quick assessment to see where everyone is at and how AGOA affects them. Diversification of markets as well is needed.

Raw materials and regional trade barriers.

Zambia Quality control and TA to the factories. Very new. Maybe investment opportunities. Market Opportunities needed.


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An old factory, China-Mulungushi, has been revived.

Need to do an assessment trip in the Copper belt region to see potential developments.

Zimbabwe While SATIH will not be working in Zimbabwe in this sector, it is an important part of the value chain in the region. There are companies producing yarn, in Zimbabwe. Zimbabwe has an old agreement that allows it to export to South Africa duty free.

The fabric manufacturing sector is quite vibrant albeit with old equipment

2.5.2 Vision and Strategy The Trade and Investment Hub intends to work with targeted countries and companies to increase production for regional (primarily Swaziland and Lesotho to South Africa) and global trade, to help companies improve quality and efficiency (economies of scale), decrease cost of goods sold, increase investments in this sector and help companies access credit for orders.

Our strategy is to:

• Focus on high performing or high potential factories in Lesotho, South Africa, and Botswana. Conduct buyers’ missions, trade shows, B2B, technical assistance to upgrade technology, improve quality and efficiencies to meet international standards.

• Select export-ready factories in the other countries to work with on textile and apparel (Zambia)

• Focus on factories that are making uniforms, protective gear and core knit T-shirts – find distributors or buyers in these product lines as there is huge potential

• Invest in upgrading equipment within the value chain to improve regional sourcing (especially yarns), help with the scaling of production with additional technology or skilled workforce

• Assist with letters of credit • Decrease regional trade barriers • Increase knowledge and awareness increasing utilization of regional and

international trade agreements, including AGOA and EPA • Establish and support existing regional clusters

2.5.3 Annual Targets and Expected Results The results expected from FY2017 include $3 million in increased exports, $1 million in loans facilitated, 25 organizations assisted, 10 companies adopting new technologies, and 50 people trained.

2.5.4 Key Activities The Trade and Investment Hub’s key activities in the apparel sector include the following:

Trade shows and pre-trade show workshops


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Trade shows are an opportunity for companies to meet buyers and to showcase their products and capabilities. The Trade and Investment Hub will work with companies pre-trade show to ensure that they understand the expectations surrounding the show, including how to showcase items, what samples to bring, etc. Activities will seek to link buyers to factories pre-trade show and follow-up once the trade shows are over to help with facilitation of orders if needed.

Buyers missions

Buyers missions raise awareness for companies that are not as well-known in the sourcing industry and allow buyers to see the space, workforce, quality, country, investment opportunities in the companies and countries they are visiting. It gives them an understanding of where and who they are buying from, inciting new business.

Trade and investment forums

The Trade and Investment Hub plans to host several trade and investment forums led by government counterparts. This will introduce investors and buyers, among others, to the country, allow them to understand the competitive awareness, help brand the countries in a particular area, and encourage trade and investment in the country. The Trade and Investment Hub will host these around other significant events in the region so that attendees can also participate.

Technical assistance

Based on an assessment of companies, the Trade and Investment Hub will use the export competitiveness tool to select textile and apparel companies that need targeted technical assistance along the value chain for improved productivity.

International Certifications

Many U.S. buyers require apparel factories to have CTPAT and WRAP or other certifications, which ensures the level of security, safety, sanitation, and HR compliance. Matching grants will be a tool to facilitate an increased level of factory certifications and, as a result, international competitiveness.

Access to credit

Work with the Finance and Investment team to assist companies that need access to finance for upgrading of technology, new technology, letter or credit for orders, etc.

B2B linkages

Determine competitively priced markets with larger margins and actively help link those buyers to companies in SADC. For instance, contact hospital uniform distributors (if that is established as a market that is competitive for SADC states).


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Enabling environment for increased regional trade

The Trade and Investment Hub will identify and address trade issues and barriers, especially those that affect goods going into and out of South Africa, including the AGOA provisions for third country fabric sourcing. In Lesotho, the Trade and Investment Hub will examine procedures and rules of origin that are currently affecting timeliness of shipments and quality of goods being delivered once across the border.

2.5.5 Strategic Constraints Analysis AGOA eligibility – diversification of global and regional markets

Aside from the US, the Trade and Investment Hub will help companies diversify their markets to other areas of the globe that have preferential trade agreements with SADC. While AGOA is significant, companies need to be sustainable if the country they are operating in loses AGOA eligibility.

Trade barriers (across borders into South Africa)

Ensure trade barriers are being enforced properly and fairly, determine bottlenecks that are affecting orders, discuss challenges that companies face at border crossings, ensure that regulations are fair on both negotiated sides.

Rising costs and low capacity yields.

Technical assistance and benchmarking.

Cost of inputs.

Help develop cost competitiveness and alternatives for input sourcing.

Lack of knowledge on standards and regulations

The Trade and Investment Hub will work to ensure that all companies ready to export understand global standards and regulations in the workplace, compliance with environmental regulations, etc.

Social issues – provisions for staff

Assist with helping companies establish appropriate provisions for their workforce, including lunch canteens, locker rooms, etc.

High rates of HIV / AIDS which affect labor force

Apparel factories with healthcare programs or guidance being provided to labor force.


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2.5.6 Key Trade Events Dates Event Name Location Objective

Feb 2017 Sourcing @ MAGIC/WWD Las Vegas, USA May 22-25 2017

Source Africa

Cape Town, SA

May Inbound Buyers Trade Mission

Lesotho, Botswana, RSA

Buyer factory visits

June 2017 SAITEX/AB7

Midrand, South Africa

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Initiative 1: Increased Competitiveness in Targeted Value Chains

Determine export opportunities for processed foods, apparel, accessories, and footwear sectors in Southern Africa and possible collaboration and parterships via country assessment and SWOT analysis.

Report on accessories, speciality foods and Textiles and Apparel markets

1 report for processed foods, 1 report for accessories, 1 report for textiles & apparel

Assess specific VCs with high regional potential for exports to regional and global markets, including to the U.S. via AGOA [product quality specs, transport/logistics, role of trade associations, women-owned businesses, etc.] and make recommendations to increase competitiveness; Support VCs using SATIH assistance through grants, TA to Implement the recommendations.

Strategies upgraded for the processed food , Textile & Apparel and accessories value chains

Exports increased by ($5 million) by SATIH-assisted companies in targeted value chains including accessories, processed foods, and texiles / apparel.

1.2

Develop Export Readiness Tool and Assess Export Readiness for companies in key value chains and sectors

Provide required technical assistance to export-ready companies (production, quality, certification to required standards, technology, business plans, and export marketing advice) Companies, associations

Export Readiness Assessment Tool, Assess Company Export Readiness, Provide Company Level Technical Assistance

Assistance provided to 32 companies

1.3

Assess and determine trade shows to attend based on buyer make-up and relevance to Southern African firms

DTI, Trade Promotion Agencies, WATIH, EATIH

Business to Business Linkages, trade show attendance

3 trade shows to attend including 2 processed/specialty foods and 1 textile / apparel , 7 sucessful deals

Organize buyer missions to the region.

Buyers, USG agencies, export-ready firms, export promotion agencies, WATIH, EATIH

2 buyer missions in the region

3 successful deals and B2B linkages

Awareness and workshop preparation to attend trade shows (not MAGIC) Associations, consulting

firms, government agencies, vendors

Workshops attended by firms

2 workshops completed

Connect companies with buyers, marketing channels on an ongoing basis and encourage buyers to meet firms at the trade shows.

vendors, buyers, associations, PR

Recommend companies to buyers vice versa

100 B2B linkages

Dec JanNovDeliverables / Milestones Targets/ResultsKey PartnersTasksExport Competitiveness FY2017 Workplan

Feb JulMar Aug SeptJunMayApr

1.1

Export-ready firms, trade & industry

associations, export promotion agencies

Prep firms to attend MAGIC and coordinate with WATIH and EATIH

Export-ready firms, trade show organizers

(e.g LTE, MAGIC), and TIPAs

15 firms ready to attend trade shows including marketing materials,

product specs and preferences, elevator pitches, samples, price list, buyer list,

B2B meetingsIncrease B2B linkages by supporting export-ready agricultural and textile /

accessories firms to attend trade shows

Upgrade value chains in key sectors with export potential emphasizing regional advantages

3 workshop prep training sessions

Technical assistance on production, quality control, design for market, shipment, etc. Technical experts,

vendors 6 companies assisted with TA.

Increase in production, jobs, and sales. 4 companies export ready

Host a business workshop for regioal AWEP group in the agribusiness, handicrafts and accessories sectors.

AWEP, associations, women-owned businesses, or majority-women employee

1 business workshop to increase knowledge of trade, investment, and marketing

Increase in sales from women owned businesses

Raise awareness and facilitate buyers to attend SOURCE Africa

Origin Africa, MAGIC, Source Africa, WATIH, EATIH,trade associations 1 buyer mission

10 buyers invited to attend Source Africa and 2 deals concluded

1.4

Assess and recommend company level needs for equipment, technology, skills and production systems and certifications resulting in enhanced export competitiveness

Technology suppliers, US and local industry associations, TIPAs

20 companies assisted, 6 companies recommended for investment

Competitive grant process among exporters to support use of new technologies and development of new technologies for export.

Technology suppliers, US and local industry associations, TIPAs

2 grants awarded

Strategy/Initiative 2: Build Capacity of Trade Associations

2.1

Help export promotion agencies and trade associations understand and help businesses overcome regulatory and export readiness challenges

TIPAs, associations Provide Direct Technical Assistance, Training of Trainers to resolve value chain specific trade barriers or export readiness issues: Productivity, compliance with technical regulations such as labelling and packaging, certification and accreditation

3 export agencies and/or trade associations assisted and 50 participants trained

Prepare trade associations for trade shows by hosting a training or workshop 2 months before the shows.

Industry Associations, USG Agencies, TIPAs (e.g LNDC, BITC, GGDA), Textile Clusters

Training of Trainers or Workshop in management and environmental stystem standards certification (e.g. ISO 9000, 14001 & 22000, HACCP, OHS),

2 selected trade associations per trade show are ready to attend the trade shows.

TA for associations on day-to-day management and specific challenges

Industry Associations, USG Agencies, TIPAs (e.g LNDC, BITC, GGDA), Textile Clusters, SWIFT

3 associations receiving technical assistance

1 sustainability strategy developed

Link strong associations to global associations

Industry Associations, USG Agencies, TIPAs (e.g LNDC, BITC, GGDA), Textile Clusters, SWIFT

1 association with membership to global association

Assist with organization of sector specific inbound and outbound US trade missions. Conduct grant competition among trade associations and EPAs that will fund/organize/manage trade missions to their members and provide direct assistance to them

Industry Associations, US Agencies, TIPAs (e.g LNDC, DTI, BITC), Textile Clusters

Inbound and Outbound Trade Missions One inbound Trade Mission

Strategy/Initiative 3: Build Capacity to Increase AGOA Utilization with MOT & Export Promotion Agencies

3.1

Determine and upgrade value chains in key sectors with export potential emphasizing regional cooperation

Conduct technical capacity constraint studies for Malawi, Mozmbique, and Zambia to determine constraints affecting exports and exploring the potential for regional supply chain integration. Update as necessary existing studies for the other countries (i.e. the SACU countries). Support Mozambique AGOA strategy led by SPEED +.

Trade & Investment Promotion Agencies (TIPAs) (e.g. MITC, IPEX, ZDA), Industry sector associations, producers, and , consultant (STTA)

Reports on constraints and identifying value chains with export potential

2 reports on capacity constraints for Malawi, Mozambique and Zambia. 1 updated report for Botswana, Lesotho, Namibia.

3.2

Assist with Developing, Updating and/or Reviewing Country Level AGOA utilization strategies

Assist with the completion of AGOA Strategies for targeted countries including Zambia, Mozambique, South Africa, Malawi, Namibia and SACU

Government Agencies (e.g. ZDA, IPEX, DTI, MITC), SACU, consultant (STTA)

Complete Mozambique, Namibia, South Africa, and SACU Strategies. Review and Update Zambia and Malawi Strategies.

Complete 2 AGOA Strategies

3.3

Assist with AGOA promotion, awareness and implementation Stategies

Assist with AGOA implementation recommendations based on individual country and sector needs

TIPAs, industry associations, Government departments

Sector-specific trainings and workshops on AGOA strategic utilization (Strategy launch, sector-specific AGOA awareness and action plan workshops). AGOA FAQs

2 AGOA workshops

Coordination & Cross-cutting 4: Investment & Grant Opportunities for Key Value Chain Exporters

Recommend companies for Investment Assistance, Technical Assistance Provided and Exports Increased

Support collaboration between local and US government agencies to facilitate potential business deals, trade missions, export opportunities, and similar activities.

Leverage New Technologies in key sectors to Improve Market Access

4.1Identify and introduce companies in key value chains seeking investment to SATIH Finance and Investment team

Selection of companies to link with SATIH investment team. Prepare investment profiles for selected companies.Estimate financial needs for loans.

SATIH Finance & Investment team Brief investment profiles, business plans

developed.

10 Companies

4.1

Facilitate investment needed to fulfill order from trade shows

SATIH investment team, government agencies, banks, DCA

Assist 3 companies with financial needs

3 Companies successfully fulfill orders

4.2

Support identification of matching grant opportunities to build capacity of trade associations and export promotion agencies in key value chain

Identify qualified regional and national trade associations and export promotion agencies.

Existing alliances (e.g Shea Alliance, Cashew Alliance)

Pipeline of key potential grantees trained including export-ready companies to supply new and existing markets

Funding Leveraged

p

5.1

Collaborate with EE&TF to identify and eliminate NTB that reduce or prevent exports in key value chains and sectors

Identify NTB issues through interactions with companies, associations and agencies in region and refer to EE&TF team for action.

SATIH Enabling Environment and Trade Facilitation Team

NTB's identified for action by trade facilitation team for key value chains

Exports increased with support from Trade Facilitation team interventions

Coordination & Cross-cutting 5: Increasing Exports in Key Value Chains by Eliminating Non-Tariffs Trade Barriers


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3. Finance and Investment

3.1 Regional Context and Overview Southern Africa is a significant contributor to finance and investment activity on the continent: for example, between 2010 and H1 2016, the Africa Private Equity and Venture Capital Association (AVCA) tracked 277 publicly disclosed private equity transactions in the region – totaling $3.5bn and accounting for 29% of all private equity transactions in Africa. Nevertheless, these transactions are concentrated in South Africa, which accounts for 75% of the total volume of transactions and 90% of the total reported value.23 Of the 265 transactions tracked by Emerging Market Private Equity Association (EMPEA) in the Trade and Investment Hub’s target countries between 2010 and Q3 2016, 206 were in South Africa, while the remaining 59 were distributed across Botswana, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa, Swaziland, and Zambia.24

Concerning the banking/financial sector, the level of financial development is especially diverse between the various countries within the Southern African region. While South Africa is the frontrunner of the region, other countries like Mauritius, Botswana and Namibia also have fairly developed financial markets in an African context. Countries at the other end of the spectrum include Madagascar and Malawi.

While the banking sector in the region has experienced substantial growth in the past 10 years, credit to the private sector as a percentage of GDP remains low by international standards. In general, Southern African banks are well capitalized, (although recently there have been significant liquidity issues in several countries) and mostly have lower non-performing loan (NPL) ratios when compared to the other regions on the continent. With recent liquidity issues, the higher interest rates and general lack of bankable projects, there is still significant work to be done in assisting the financial sector to expand in the region.

On the other hand, there are several investment funds operating in the region, particularly in the agribusiness sector. Yet there are low volumes of non-South Africa investment transactions in the region, which follows the lack of regional funds, focused on opportunities outside of South Africa. EMPEA has tracked 46 fund closes with partial focus on Southern Africa since 2006. Of these, 26 are focused on South Africa and 22 are South African rand-based funds; seven of the remaining funds are country-specific, targeting Madagascar, Namibia, Swaziland, and Zambia. Only 17 of the Southern Africa funds that EMPEA has tracked are regionally focused. Recent regional funds include the Vantage Mezzanine III Southern African Fund, which achieved close

23 African Private Equity and Venture Capital Association, “Spotlight on Southern Africa Private Equity” (December 2016) 24 EMPEA data is reported by members of the Association and is not an exhaustive overview of opportunities in the region.


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in 2015. Yet even this fund is heavily invested in South Africa, with 40% of its ZAR 4bn allocated to the market.25

Firms in Trade and Investment Hub target markets face significant barriers to raising capital. 19% of Trade and Investment Hub target markets identify access to finance as their primary obstacle to growth (21% not including South Africa) – making it the most commonly cited obstacle among those examined by the World Bank’s Enterprise Surveys.26 As described in the Strategic Constraints below, contributors to limited access to finance fall into two categories: firm-level barriers (specifically information asymmetry and transaction costs) and market constraints (including interest rates, banking constraints, and external risks including drought and commodity prices). These challenges impact investment potential across the region – including in South Africa, despite its higher degree of investment activity.

To increase the flow of capital to firms in Southern Africa, on-the-ground transaction support and viable new platforms are needed to overcome these perceived risks and absorb the cost of engaging investment opportunities in the region.

3.2 Vision and Strategy To address these challenges, the Trade and Investment Hub’s Finance and Investment team will focus on the execution of innovative strategies and activities to facilitate and accelerate access to finance in the SADC region via five pillars:

1. Financial sector strengthening – including regulatory or procedural issues and bank capacity building in partnership with DCA and other USG agencies to increase trade

2. Investment policy enabling environment - working with SADC and other third party stakeholders on implementation of regional investment policy framework (SADC-IPF) and its domestication through national action plans on investment (NAPI).

3. Development/support of funding platforms/vehicles – working with existing funds on additional capital raises as well as investigating the potential of establishment of a unique fund with the goal of better reaching Trade and Investment Hub target markets.

4. Warehouse Receipt Financing – focusing on three areas within WRS strengthening; WRS Systems Development, Financial Institution Capacity-Building around warehouse receipt financing, Broader Ecosystem Support to Overcome Barriers to WR Finance Deployment.

5. Increasing investment into the region – collaborating with regional and global investors to facilitate investment, including through intraregional transactions and investments from outside of Southern Africa. The team will

25 Vantage Capital, “VANTAGE MEZZ FUND III INVESTS R200MIL IN NEW GX” (2016) 26 World Bank, “Enterprise Surveys”


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look to partner with USG teams and agencies such as PCM, OPIC, USDA and others.

3.3 Annual Targets and Expected Results The primary performance metric is supported transactions that reach financial close, targeting the following annual goals:27

Year 1 Year 2 Year 3 Year 4 Year 5

Investment $5 m $35 m $40 m $40 m $40 m

Loans $5 m $5 m $10 m $20 m $20 m

A ramp up of the activities and results for the component allows the Trade and Investment Hub to project $160 million of investment facilitation (comprised of international and regional private equity and debt investors, as well as qualified local bank debt transactions) and an additional $60 million of debt finance within the region, delivered through credit providers, over the life of the project.

3.4 Key Activities 3.4.1 Financial Sector Strengthening Beyond the typical capacity building at the financial sector institution level, the Trade and Investment Hub’s Finance and Investment team will identify regulatory or procedural barriers to expand lending and investment to identified partners in the region. Working with third party stakeholders, the team will communicate the challenges and recommended solutions to relevant industry associations to promote advocacy and Public-Private dialogue into targeted competitiveness reform.

The Finance and Investment team will identify, together with the DCA team, a strategy to assist DCA banks in the region in creating awareness of the partnership with USAID as well as on training of loan officers to create a successful and effective USAID DCA where it creates trade. Capacity building aims to assist the banks to unlock the potential of the banks’ lending efficiencies and outreach to companies operating in the agricultural sector across the region. The DCA guarantee coupled with the new tools developed, such as new risk processes, products, and marketing efforts, will enable the banks in the region to meet goals of promoting economic growth, trade and employment in the SADC region by providing access to capital for businesses operating across the agricultural and export value chains.

An increase in banks’ utilization of the USAID guarantees should ultimately increase access to finance for smaller businesses by reducing other intervention costs and facilitating additional regional trade. The trainings and technical assistance will be based on an initial engagement with the banks, DCA team and other stakeholders 27 NOTE: These performance targets will be adjusted each workplan year.


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appropriate to the partner bank’s scope, sophistication, and scale of operations. The work will consist of sessions creating awareness within the bank as well as by developing tools and training that can be implemented across the bank’s regional branches and loan officers focusing on DCA guarantees that also meet the Trade and Investment Hub’s goals and objectives of investment, agribusiness, trade and export competitiveness. Banks will also receive training to identify, measure, monitor and control risk associated with potential loans made under the DCA guarantee as well as best practice agricultural finance techniques.

The banking sector capacity building work will focus on assisting banks in the region to provide additional capital into the market with a particular focus on export competitiveness lending and agricultural lending. The Finance and Investment team will also focus on helping to utilize toolkits to help banks to develop their small business lending (i.e. Agri toolkit, export development toolkits, other tools to increase capacity of banks).

• Market Assessment - Needs assessment of the FI's in the region to better understand capital and capacity requirements (baseline)

• Work with FI's in the region to better understand their capacity building needs and develop action plans and implementation plans

The Trade and Investment Hub will leverage development partnerships with regional and local financial intermediaries in the SADC region to collaborate to deliver export focused SME and Agricultural finance:

• Visit each priority country to meet with financial sector stakeholders to better understand opportunities to partner

• Develop agreements that indicate sectors and number and volumes of lending to take place.

3.4.2 Investment Enabling Environment A policy framework for investment promotion and trade facilitation

Working with the SADC Secretariat, OECD and other stakeholders, the Finance and Investment team will focus on three countries (Zambia, Malawi and Botswana) to help with the development and implementation of National Action Plans on Investment in each country. Synergies with the Agribusiness Trade and Enabling Environment and Trade Facilitation teams will increase the Finance and Investment team’s impact in this area. Investment promotion will also be a focus. Measures to promote and facilitate investment can be successful if they take place within the broader context of an overarching strategy for improving the investment climate environment, which involves mainstreaming investment across a broad range of policy areas that affect the investment climate, such as those covered in the SADC-IPF and the PFI of the OECD. Developing a broad strategy for investment requires strong political will, support and


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leadership, both from the highest levels of government as well as from front-line agencies and ministries responsible for implementing policy.

The five action areas are: i. Promoting a coherent and transparent investment environment

ii. Ensuring market access and competition iii. Providing security and protection of investors’ rights iv. Ensuring responsible and inclusive investment for development v. Promoting regional and international cooperation

Activities will define strategic policy options that foster a stable macroeconomic environment with predictable investment policies and set out the national marketing plan for the country to create an improved investment climate.

Regional economic integration remains a viable development strategy for SADC, a region characterized by small economies and markets. Integration of these markets can facilitate efficiencies in production, investment and trade, thus enhancing development outcomes.

Over the past few years, global competition for investment has increased markedly. Consequently, developing countries must undertake aggressive campaigns to get a share of global investment, particularly now when there has been renewed interest in emerging markets.

Regional policy initiatives, in alignment with SADC i. The domestication of the regional investment policy framework SADC-IPF: The

Finance and Investment team will look to model the approach for three initially targeted countries (Botswana, Malawi and Zambia) with potentially resident consultants or (embedded) consultants, taking advantage of consultants who undertook the initial work with the previous Hub, for ease of continuity; working on the following:

• Completion of the process of the National Action Plan on Investment (NAPI) initiated by the previous Trade and Investment Hub program (SATH)

• Completion of the consultation process with country stakeholders • Organization of stakeholder validation workshops (×2) per country • Development of an implementation/action plan in collaboration with

OECD and other third party stakeholders • Identification of training needs for key national officers (if necessary) for

the successful implementation of the defined action plan


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ii. NAPI – M & E for Lesotho

We would consult with OECD to assess if they can collaborate with the Trade and Investment Hub in developing & implementing an M & E mechanism for the NAPI

• Capacity building for Senior Officials • Development of Dialogue Platforms – drawing on NAPI Elements

iii. ICT Investment Promotion Platforms

• SADC Investment Portal: The Trade and Investment Hub will partner with SADC to develop a modern interactive investment portal linking all Member State Investment Promotion Agencies and platforming up-to-date content covering all investment regimes and reflection of the latest investment related policy changes of all SADC Member States, as well as investment opportunities at both regional and Member State level. SADC views these as a means of selling the region as single investment destination broader than the individual Member States.

3.4.3 Development of Funding Platforms and Vehicles Although there are several active investment funds (equity and debt) operating within the region, there is still significant scope for additional viable fund platforms to have development impact in the region. Many investors have pointed out that although they would like to support fund managers in the region, there are not enough sustainable platforms across the region for the amount of financing that is looking to be placed and that is needed for further development impact. A recent publication by the Monitor Institute estimates that development and impact investment could, over the next 5 to 10 years, grow to represent one percent of current global assets under management – a figure estimated at $500 billion.

SMEs encounter many challenges when trying to access funding for their growing businesses. Their options are often limited, and where they can access funding, the terms of funding are often onerous. Given these challenges, the team will investigate alternative sources of funding for SMEs, which are new and innovative, and will provide capital and terms that are unique from the typical commercial banking offering, not previously available in the market.

There are several different approaches to development and alternative financing in use around the world, from the impact investment funds that are currently helping to rebuild the inner cities of Detroit, Chicago and other metropolitan areas in the US, to funds such as GroFin, the Medical Credit Fund and Business Partners Limited, which focus on particular sectors or regions in developing economies. These funds range from the simple return of principle capital to offering market rate or competitive market returns to investors. When developing a fund, the team will look to reach out


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to existing fund managers and to develop a new platform that would deliver financial returns as well as significant development impact.

As the team looks to increase access to finance and investment in the region, it will focus on traditional forms of financial platforms (commercial banks, finance companies, etc.), and will also support existing fund managers that are seeking to raise additional resources to invest in the form of equity, mezzanine and/or debt financing. The team will assess the need for new financing platforms (funds) and if needed, can support the startup of a fund.

The approach would focus on a “blended capital structure.” The combination of grant money from public sources, debt/equity capital from private investors and the use of first loss capital and technical assistance programs serve as a structural risk reduction tool. At the same time, a blended or layered capital structure bridges the gap between financially oriented investors and social capital needed for the smaller business/agribusiness market. This has the potential to attract higher amounts of capital from different investor sources, making it feasible to invest into firms in an underserved environment. To be clear, grant funding, if used, will require investors’ contributions to be of much greater value than the grant itself. The grant would be used as a catalyst for other investment money.

Activities will include a capital mapping for the region as part of the work planning for the investment pillar, but also include implementing a needs assessment for additional funding mechanisms/platforms that would support smaller scale transactions in the region, specifically focusing in the agribusiness sector for transactions in the range of USD 250,000 to 2 million. There still is significant need for and substantial opportunity in this smaller scale investment realm. The idea is to support businesses that are more at risk of failing to secure investment due to weak project preparation.

As part of the blended capital model, the team would engage private sector investors as well as DFI’s and other patient capital providers in the fund structure.

The team has begun discussions with SADC on support of the below initiatives which will assist with the establishment of the Agricultural Development Facility (ADF). The Regional Agricultural Investment Plan (RAIP) (2017 – 2022) has outlined the establishment of the ADF which focuses on seven different areas including: value chains; agricultural infrastructure development; markets and trade; environment and natural resources; agricultural information management system; food and nutrition security; and governance and institutional development. To assist with this work, the team will focus on the following:

• The establishment of the Agricultural Development Facility (ADF), with the prerequisite that SADC Member States and/or donors have committed to provide financial support.


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• ADF Financial Strategy: As a facility that will be providing financial support to Member States, it is essential that a financial strategy for its sustainability be developed.

• ADF Guidelines: The purpose of the guidelines is to outline the general rules governing support for agricultural development in SADC within the framework of the RAP and the RAIP.

• Domestication of ADF at the national level: The full functionality of the ADF arises from its successful domestication at the national level which process requires the development, establishment and institutionalization of appropriate organizational, governance, management, control, monitoring and evaluation systems at the national level.

• Program for Funding: For State Parties to benefit from the ADF, they need to develop Program for Funding (PFF) as guided by the ADF Guidelines. This work involves, at the national level, Member States including all parties (public and private sectors and civil society) agreeing on projects and activities to be funded using the various measures of the facilities of the ADF.

3.4.4 Warehouse Receipt System Strengthening In Sub-Saharan Africa (excluding South Africa), the importance of a WRS has been understood principally in terms of its inclusivity as a means for financing the entire value chain. However, a WRS can also act as an important commercial enabler in its own right, as is seen internationally with prominent WRS associated with major commodity exchanges such as the JSE for grains in South Africa and the London Metal Exchange for base metals on a global basis. Building on its extensive track record of support for Warehouse Receipt Systems (WRS) development in the region, the Trade and Investment Hub will continue to operate as a ‘go-to’ partner in this domain, acting as a catalyst and capacity-builder for expediting roll-out of WR finance in regional jurisdictions. Trade and Investment Hub activities during FY2017 falls into three categories:

1) WR Systems Development • Q1: create with Africa Commodity Exchange Malawi (ACE) and Zambian

Commodity Exchange (ZAMACE) a three-year institutional support program identifying the key components of support that the Trade and Investment Hub can provide to strengthen WRS and support sustainable growth and inclusivity of WR finance in each jurisdiction

• Q2: initiate institutional program, and synergize with activities under (2) and (3) below

2) Financial Institution Capacity-Building • Q1: develop a capacity-building program for financial institutions in the region

to support WR finance through WRS


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• Q2: deploy the capacity-building program to partner financial institutions, with initial focus on Malawi and Zambia in particular those that are DCA beneficiaries

• Q2: in tandem, work with partner financial institutions to effectively productize, distribute, risk manage and perform compliance around WR finance.

3) Broader Ecosystem Support to Overcome Barriers to WR Finance Deployment

• Q1: perform in partnership with regional WRS partners a mapping of other bottlenecks to the deployment of WR finance, for example in the areas of transportation and logistics, rural warehousing, and value chain development to support extension of WR finance to serve a broader range of commodities.

• Q1: provide grant and enablement for the Zambia Grain Information Service (ZAGIS), as identified by ZAMACE as a key enabler to overcome operational barriers to WRS deployment in Zambia in conjunction with the JSE Zambia-deliverable grain futures contracts

Opportunities for support in WRS

Multiple opportunities exist to build on prior initiatives under the Agricultural Storage Investment Facility (ASIF) strategy, in conjunction with development financiers such as EIB, AFD and KfW, to facilitate investment into warehousing through developing investment concepts and financing structures that overcome prevailing financing constraints in the local market and then to develop pipelines of sufficient scale to finance a wholesale credit line through a local banking partner. This has been undertaken in partnership with WRS initiatives in Malawi (via ACE), Zambia (via ZAMACE, with the support of Musika), and, in more nascent form, in Mozambique (via the Commodities Exchange of Mozambique (BMM)).

One specific opportunity to rapidly provide catalytic support is the European Investment Bank’s (EIB) EUR 30m facility for financing commercial agricultural warehousing projects with the National Bank of Malawi (NBM). This transaction, which was closed in late 2016, represents an innovative product developed for EIB in which the financing terms have an element of concessionality built in when beneficiary agribusinesses integrate their warehousing into the WRS and open the facility to third party depositors to take on WR finance. In 2017, to support the disbursal of funds into high-impact opportunities, the Trade and Investment Hub will specifically:

• Support the disbursement of financing to eligible counterparties • Support ACE to integrate the new funding facilities into its WRS

A second transaction that the team will immediately support is at advanced stage with AFD, prospectively through First Merchant Bank (Malawi) and prospectively to be


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backed by a USAID DCA, for a USD 8 to 10 million facility focused on smaller-scale rural warehousing, plus a 25% allocation of funds for WR finance. An innovative structure has been developed that aims to address pervasive financing bottlenecks in the local market for rural warehouse investments, and to unlock WR financing by putting in place a structure for independent warehouse management. Planned Trade and Investment Hub activities to support this transaction during FY 2017 include the following:

• Finalize the pipeline with minimum target for investment requirement of USD 6 million

• Ensure availability for a USAID DCA to support the transaction • Finalize the terms of donor support • Support the parties with appraisals and due diligence • Support the disbursement of funds to eligible counterparties • Support the operationalization of the third-party warehouse management

structures envisaged under the concept

In Zambia, another potential transaction is at a nascent stage – albeit after significant prior awareness-raising and deliberation – with KfW for USD 6 to 8 million with focus on smaller-scale rural warehousing. The transaction would replicate the structures developed under the AFD transaction in Malawi, and provide an important foundation for the extension of the rural footprint of ZAMACE, the Zambian WRS, as it launches. Initial engagement with Zambian agribusiness through local partners has already seen interest expressed by two firms. Trade and Investment Hub activities during FY2017 in Zambia to support this transaction could include:

• Finalizing the structure with the local stakeholders and financing partners, identifying the scope for participation of local bank(s) and donor(s), and the timetable for appraisals and disbursement

• Finalizing the pipeline, and negotiations with additional participants in the transaction

A pipeline of USD 80 million had been developed in Zambia for large-scale commercial warehousing, also identified to synergize with the launch of ZAMACE. Transactions were previously explored with EIB for a credit line approach and with FMO and PTA Bank for bilateral transactions around some of the larger individual requirements. However, the precipitous decline in the Zambian economy in mid-late 2015 ultimately led to an increase in agribusiness risk aversion and the freezing of their investment interest. The latent interest of agribusiness remains, however, subject to signs of economic recovery and policy stabilization; and, the financiers remain interested to complete transactions. To help complete these transactions, the Trade and Investment Hub will:


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• Remain apprised of agribusinesses’ investment appetite and re-initiate investment facilitation processes when the time is conducive

In Mozambique, a scoping mission was conducted in September 2016 in conjunction with the local WRS and commodity exchange, the BMM. Provisional investment concepts were developed around agro-processing and rural storage, and at least one investor, the PTA Bank, has expressed interest in the country. However, the policy environment and local institutional relationships present some constraints in taking forward the investment. Addressing these in a satisfactory manner are prerequisites for moving forward.

The investments and related activities around ASIF have generated significant traction in the region in understanding financing bottlenecks and enablers, developing relationships with key partner organizations (agribusiness, investors, WRS/commodity exchanges), finessing methodologies for developing investment concepts, financing structures and credible pipelines, and supporting partners through appraisal and due diligence.

3.4.5 Increasing Investment into the Region To address these firm-level barriers and catalyze investment into the region, the Trade and Investment Hub has subcontracted a team that will serve as a neutral intermediary between capital seekers in Southern Africa and capital providers – both within the region and beyond. The Capital Intermediary Team (Investment Team), which is working as a subcontractor under the Trade and Investment Hub, will follow an Investment Facilitation model aimed at increasing investment between Southern Africa and global markets. The Investment Team’s mandate is to facilitate investment into three priority sectors: agribusiness, financial services, and consumer goods. The Investment Facilitation model is unique in that it addresses firm-level barriers to investment – transaction costs and information asymmetry – that are not directly addressed by existing programs or transaction-centered interventions.

The Investment Team will source, select, and support transactions from either capital seekers or capital sources (e.g. investors) and will report to the Director of Finance and Investment. This team will focus on catalyzing transactions that otherwise might be delayed or not occur without intervention. Qualified transactions must demonstrate fit with the Trade and Investment Hub’s goals, impact in target sectors, and compliance with environmental, social, and governance best practices. The Investment Team supports transactions with an advisory toolkit that includes opportunity validation, market intelligence, fundraising support, due diligence, financial analysis, structuring, neutral facilitation, and post-investment planning.

The Investment Team will deploy an innovative investment facilitation model to lower transaction costs and facilitate investment throughout the region. Under the Trade and Investment Hub, specific development objectives of USAID will guide the


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Investment Team’s provision of transaction support. The Investment Team will use an objective engagement and screening process, which incorporates Trade and Investment Hub priorities, to ensure that transaction support will only be extended to investments with a proximate link to stated objectives.

Figure 1: Role of the neutral intermediary

The Trade and Investment Hub has defined the following high impact sectors. The Investment Team supports investments that contribute to development of these sectors and enabling industries.

Sector Example Focus Areas • Agribusiness • Food production and processing

• Input supply (e.g. fertilizer, seeds) • Logistics (e.g. marketing, storage, distribution,

transport) • Warehousing

• Financial services • Financial services technology • Payment systems • Microfinance • Insurance • Private equity firms

• Consumer goods • Export focused manufacturing • Household products manufacturing • Clothing and textiles • Consumer electronics

i. Engagement

Prior to delivering transaction support, the Investment Team will establish an understanding of the market through a capital mapping and market engagement exercise. This both orients the team’s strategy and develops a foundation for client engagement.


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Once the capital mapping exercise is completed the team will engage the market and will undertake a three-stage process for deploying its investment facilitation model: source, select, and support. These three stages are also activities within the team’s broader implementation and workplan. Within each stage, the team assesses the client’s proposed transaction against specific criteria to ensure that the transaction fits with USAID’s goals. The purpose of the engagement process is to filter transaction leads into a pipeline, then select the most impactful and feasible transactions to receive support as part of an active portfolio. The diagram below summarizes the engagement process. Criteria that guide each stage are articulated within the fit check, qualification framework, and compliance check. The events that drive each stage include targeted meetings and referrals, information requests, Investment Team meetings, and finally, signing of an advisory agreement with client.

Figure 2: Overview of engagement process

ii. Capital mapping: identifying the trends and gaps in the investment landscape

The Investment Team’s capital mapping exercise will compile a list of active investors in the target sectors and geographies, specifying the type of financing they provide, the investment size they target, and any additional available information on investment strategy. This list will also specify country involvement, enabling the database to be broken down by market. It will be accompanied by a visualization of the investment landscape, as seen below. The Investment Team uses capital maps to identify key capital providers, available financing products, investment protection resources, and investment gaps within target frontier economies.

Using this tool – and its accompanying list of investors – the team can both (1) identify active segments of the investment landscape that could benefit from facilitation, and (2) locate a market’s unmet financing needs and determine the appropriate strategy to catalyze investors into the space.


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Figure 3: Illustrative capital map

iii. Market engagement: presentation of the Investment Team to clients As the Investment Team develops an outlook on the market, conducts research on target sectors and geographies, and determines the transaction services needed, two documents will be developed to outline the Trade and Investment Hub Investment Team’s service offerings to clients:

1. Investment Team Fact Sheet: This document provides a one-page overview of the services provided by the Investment Team, the geographies and the sectors that we focus investment facilitation efforts on, and the process for securing support from the Trade and Investment Hub.

2. Investment Team Overview Deck: This full deck details the services provided by the Investment Team, the sectors and the geographies supported, and examples of transactions completed under past Investment Facilitation engagements. For new entrants to the region, the deck also provides an overview of the investment landscape and a summary of how the Investment Facilitation model will enable prospective investors to overcome common firm-level barriers. Finally, the Deck will provide a summary of team members, signaling to clients the level of quality they can expect in any transaction services delivered.

Capital in East Africa Grant Debt Equity

PoliticalRisk

Insurance

DefaultInsurance

CreditGuarantee

Micro

SMEs

Corporates

Projects

Less Commerciality of Terms More

Investment Protection

Large

Inves

tmen

t Req

uirem

ent

Small

Investment Financing


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Figure 4: Role of the neutral intermediary


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Figure 5: Qualification Framework for selecting transactions

Feasibility and Viability

Transaction Size? Additionality? Regional

Trade or Exports Gender Inclusion? Agribusiness Transaction?*28

Weight Ranking 40% 20% 20% 10% 5% 5%

1

Feasibility: Transaction requires in-depth feasibility studies or support beyond Hub capabilities. Viability: The investment itself is higher risk.

Transaction is smaller than $2m and would still require significant transaction support without offering outsized impact.

Transaction would be completed without the Hub in a reasonable period. Client does not have clear understanding of advisory needs.

Transaction has minimal spill over into other investments and minimally impacts intra-regional trade or export potential.

Client and transaction do not consider gender inclusion within business practices or business model.

The opportunity has no exposure – either direct or tangential – to agriculture inputs, primary production, infrastructure, processing, or other value chain components.

5

Feasibility: The Hub is capable of filling identified needs. Client committed to success of proposed transaction. Viability: The investment has strong potential.

Transaction is over $2m and has potential to generate substantial impact.

Transaction would not be completed within a reasonable period without the Hub. Client has clear view on needed advisory deliverable(s).

Transaction is likely to facilitate additional investment. Transaction contributes to trade within the SATIH or supports exports.

Client and transaction incorporate strong gender inclusion into business practices. Gender inclusion is a conscious practice of the management team.

The opportunity is directly tied to the agribusiness value chain.

Total Score out of 5

+ Consideration of portfolio diversity across sectors and geographies

+ Consideration of team capabilities and bandwidth

28 While agribusiness is not the sole focus of the Trade and Investment Hub, it is a major component. Agribusiness opportunities may be given preference for support over non-agribusiness opportunities.


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To accelerate or unlock a selected transaction, the Investment Team offers a range of targeted services depending on client type (capital seeker or investor) and transaction status.

Service Area Capital Seeker Investor

Opportunity Validation • Identify capital needs, uses, and transaction terms

• Identify high-potential local firms for investment

Market Intelligence • Undertake custom market research or feasibility study

• Undertake custom market research or feasibility study

• Provide sector briefs • Provide regulatory guidance • Introduce critical service providers

Fundraising Support • Develop investment pitch • Develop investment

memorandum • Review capital landscape options

and investment process • Source equity or debt for direct

investment

• Source equity or debt for deployment into investment funds

Due Diligence • Assist firm in preparing for or responding to investor’s due diligence requests

• Undertake commercial due diligence • Undertake operational due diligence • Articulate operational gaps and post-

investment roadmap Financial Analysis • Assist firm in aggregating

historical financials and documenting financial practices

• Assist valuation • Develop financial forecasts • Undertake financial feasibility studies

Transaction Structuring • Assist parties to effectively structure transaction including selection of appropriate form of capital (equity, debt or hybrid) and design of terms

• Integrate investment-enabling products including loan guarantees, political risk insurance, and grants, especially from USG partners

• Source additional financing partners • Undertake exit planning • Advise on environmental, social, and governance (ESG) compliance

Neutral Facilitation • Build relationships across public and private sector players, including the Hub’s policy component and AGOA/Trade promotion components

• Serve as a neutral intermediary for all parties Post-investment planning • Design strategy and execution of post-acquisition plans, including

business development, operational support, and cost reductions.


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Figure 6: View of the Investment Process

3.5 Strategic Constraints Analysis Our strategic constraints analysis is based on (1) numerous interviews with investors and capital seekers in Southern Africa and (2) extensive past work in and research on frontier markets investing. The two broad barriers addressed by the Investment Team – information asymmetry and transaction costs – are firm-level barriers. These factors occur directly within the context of a transaction and directly impact the decision making and actions of investors and investees on the ground. Firm-level barriers are present in any frontier market. The specific examples of firm-level barriers identified above during the capital mapping process fall directly within these categories of information asymmetry and transaction costs:


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Transaction costs Information Asymmetry Common example: Firms face capacity challenges and require bandwidth support to capture opportunities; they require support in post-investment planning on complex transactions involving regional integration. Description: Investors face fixed costs to evaluate a market, identify opportunities, and choose appropriate structures.

Common example: Investors indicate a high level of interest in frontier markets but are reluctant to pursue concrete opportunities due to not having experience executing in the market. Description: Outside investors assume they are at a significant operational and informational disadvantage in a market.

Specifically, on the question of why transaction costs are considered “fixed costs.” Investment firms often only pursue projects where they have a physical presence to source and diligence deals. While a firm may have an office in Johannesburg, they are less likely to open in Lilongwe. Further, pursuing any transaction requires a standardized process of (1) sourcing an investment; (2) conducting due diligence on that investment – including commercial due diligence on the target and market research; (3) bringing an investment to committee; and (4) finalizing the investment through a term sheet, structuring, and negotiations. There are anticipated costs tied to this standardized process, including deploying team members to the target market, committing time and labor, and bringing in outside resources to support due diligence and structuring (particularly if outside legal and accounting support is required). If a transaction is associated with a high level of perceived risk (like an investment into an agribusiness in Malawi, for example), an investor may not be willing to absorb these fixed costs to complete the transaction. The Investment Facilitation model offered by the Investment Team absorbs these fixed costs – enabling a transaction to take place or catalyzing a transaction that would otherwise be severely delayed. This model is described in further detail in the paper, “Investment Facilitation in Transitional and Fragile States” published by the Center for Strategic and International Studies. Country-level or market-level constraints are specific to Southern Africa, and are driven by the economic and political context within each country – affecting physical and soft infrastructure and the overall enabling environment. Our capital map addresses these in further detail as well, outlining investment trends and shared constraints in three groups of markets across Southern Africa: (1) South Africa; (2) Botswana, Namibia, Lesotho, and Swaziland; and (3) Madagascar, Malawi, Mozambique, and Zambia. Specific market-level constraints discussed include currency depreciation, commodity prices, and drought. Information on these constraints was sourced from resources including the

https://csis-prod.s3.amazonaws.com/s3fs-public/legacy_files/files/publication/131213_Cusack_InvestmentFacilitation_Web.pdf


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Emerging Markets Private Equity Association, Capital Economics, and interviews with investors and other stakeholders.

In addition to these constraints, there are three key challenges affecting the viability of investments and access to finance in the region: (1) currency depreciation; (2) banking constraints, including illiquidity and high interest rates; and (3) external risks, including persistent drought throughout the region and low commodity prices – impacting the performance of key sectors including agriculture and energy. These three categories of factors are complex and intertwined, but should remain at the forefront of the Investment Team’s considerations as it works with prospective funds to encourage investment into the region.

Currency depreciation is a critical concern for investors considering opportunities in frontier markets. In a 2016 survey conducted by EMPEA, 61% of fund Limited Partners (LPs) and 79% of fund General Partners (GPs) indicated that currency risk is either an important factor or a very important factor to their firm.29 These risks are particularly poignant in Southern Africa, where depreciation has impacted markets including Zambia, Malawi, Mozambique, and South Africa. The Zambian Kwacha reached all-time lows in 2015 (falling nearly 50% against the USD), driving consumer prices up and suppressing imports, thereby impacting consumer spending.30,31 In Mozambique, the slowing of investment from 2015 to 2016 led the local Metical to fall sharply, from nearly 30 Metical to the USD in January 2015 to approximately 70 Metical to the USD in July 2016 – contributing to a year-on-year consumer price increase of 20% by mid-2016.32 Overall, currency depreciation across the region impacts the viability of investments by affecting consumer spending in target markets and raising the cost of servicing foreign debts for local investees.

High commercial interest rates are also pervasive across the region, significantly impacting access to capital and often placing a severe burden on companies servicing local currency working capital facilities. The World Bank reports that Lending Interest Rates among Trade and Investment Hub target markets is 20% on average, compared to a continent-wide average of 15%.33 However, real commercial interest rates on the ground can often far exceed this value: recent on-site research conducted by the Investment Team in Malawi and Zambia, for example, revealed that SMEs and large firms frequently face interest rates between 30% and 40%. In the Trade and Investment Hub’s target countries, an average of 28% of firms in each market use banks to finance investments, compared

29 EMPEA, “Currency Risk Management Survey” (2016) 30 Capital Economics, “Headwinds strengthen in key African economies” (2016) 31 Capital Economics, “The worst is yet to come” (2016) 32 Capital Economics, “Mozambique: Debt worries are overblown” (2016) 33 World Bank, DataBank. Note: interest rates across the region frequently exceed the average reported by the World Bank. Typical interest rates in Zambia and Malawi, for example, frequently exceed 35%.


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to an average of 19% across the continent – indicating the high level of exposure in Southern African markets to burdensome high interest rates.34 Again, broad exposure to high interest rates is a key consideration, as it may indicate high costs of servicing local working capital facilities among investees.

These factors – currency depreciation and high commercial interest rates – are impacted by external risks that cannot be addressed by development interventions. Two key risks in Southern Africa include pervasive drought and low commodity prices. In South Africa, “a once in a century drought is depressing agricultural production and pushing up food prices,” causing consumer prices to jump by 7% year-on-year in February 2016.35 In Botswana, where diamond exports are a key component of the economy, prices ended 2015 “at 39% below their July 2011 peak.” 36 And in Zambia, a major copper exporter, a 2% fall in commodity prices between May and July 2016 – further contributing to the depreciation of the Kwacha and pushing up inflation.37 Again, while these external risks cannot be addressed by Trade and Investment Hub interventions, they will be closely tracked by the Investment Team as it leads due diligence engagements for prospective investors in the region. Remaining mindful of how to mitigate or reduce investor exposure to these risks will contribute to the Team’s efforts to meet its goals in total transactions closed.

3.6 Partnerships The Investment Team will work with a range of stakeholders, including industry associations, USAID and other USG partners, private investors, and Development Finance Institutions. Potential capital sources and clients will come in part from an investor database containing 500 investors including local and international banks, private equity firms, and DFIs that provides insights on investment opportunities. Strengthening associations will be a key strategic activity where the Hub’s and a given association’s strategies and goals are aligned.

In working with private investors, the Investment Team will ensure that transaction support brings additionality and does not crowd out private sector brokers or other transaction services providers. In the Trade and Investment Hub’s targeted markets – particularly those outside of South Africa – transaction intermediaries are limited, and the risk of taking business away from private firms is limited. Regardless, checking for additionality will be completed as part of the pipeline selection and approval process and will be completed for each individual transaction.

34 World Bank, Enterprise Surveys 35 Capital Economics, “The worst is yet to come” (2016) 36 Capital Economics, “Nigeria: Central Bank puts its money where its mouth is” (2016) 37 Capital Economics, “Nigeria: Central Bank puts its money where its mouth is” (2016)


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3.7 Key Events Dates Event Name Event

Location Objectives

May 3 – 5, 2017

World Economic Forum on Africa

Durban, RSA Develop strategic partnerships with targeted financial and investment services firms.

May 16-17, 2017

IFC-EMPEA Annual Global Private Equity Conference

Washington DC, USA

The Emerging Market Private Equity Association annual conference. One of the major EM conferences annually. Focus is transaction sourcing and investor engagement. Develop strategic partnerships with targeted financial and investment services firms

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Strategy/Initiative 1: Banking sector capacity building within SATIH Region

5 FI's identified for potential partnership

Agree on services to be provided to the FI's and targets and reporting

Development MOU/contracts that indicated sectors and number and volumes of lending to take place

Two financial intermediaries signed to participate in the SME and Agri Finance sub-project with lending commenced

Work with FI's in the region to better understand their capacity buidling needs and develop action plan

Market Assessment - Needs assessment of the FI's in the region to better understand capital and capacity requirements (baseline)

Strategy/Initiative 2: Policy enabling environment / Financial sector strengthening to support trade & investment

Engage with Potential PartnersMarketing plans or platforms

Investment and trade promotion & facilitation

Strategy/Initiative 3: Development/support of funding platforms targeting SATIH region

Developing potnetial partnerships with local, regional and global partners that could increase lending in the region through the use of innovative USG tools

2 Transctions in development using innovative fin instruments

Advise USAID and other teams to assist with the development of innovative tools, vehicles and platforms to assist with increasing investment and lending in the region

Concept note for innovative investment vehicle developed

Strategy/Initiative 4: WR Finance

Develop pipeline and documentation, including a mapping by location, value chain and envisaged trade flow

AFD (DFI), FMB (Malawian Bank), ACE, Identified Agribusiness

Investment pipeline and documentation submitted to AFD and FMB

Pipeline and documentation for 5 companies, min USD 8m, min 3 value chains

Trigger final appraisal by AFDAFD (DFI), FMB (Malawian Bank), ACE, Identified Agribusiness

Final appraisal by DFIApprovals for the Credit Line

TasksFinance & Investment FY2017 Workplan

2.2

2.1

Utilize the USG tools to help banks in the region to develop their small business lending. i.e Agri toolkit, export development toolkits, other tools to increase capacity of banks

3 Finalised National Investment Plans (NAPI) & Implementation Action Plans

SADC / Investment Promotion Agencies

Memorandum of Understanding

Deliverables / MilestonesKey Partners

SADC/OECD/Investment Promotion Agencies

Facilitation of 3 Validation Workshops in 3 countries

Commercial Banks; other alternative funding vehicles - asset managers, funds, microfinance and others.

1 Regional Market Assessment and 2 partnering FI's utilizing capacity building services

50 SME loans facilitated by end of December 2017

4.1 Rural Warehouse Investments, Malawi

JanDecTargets/Results

SeptApr May June July Aug

1.1

1.2

3.1

Advocacy {Investment Climate Improvement}

Identify & engage local/resident consultants.Coordinate with local Investment consultant and Investment Promotion Agencies (IPA), validations and Information Dissemination on Investment Policy Framework (IPF) and Proposed National Action Plan

Demand Driven Initiatives designed to improve the investment climate and are complementary to SATIH objectives

Facilitation of additional 3 FI partnerships to develop further

Facilaite innovative investment transactions in the region

USG Agencies; other DFI's, multi-laterals and global partners; commercial banks and other FI's in the region

Mission Reports defining partnerships

Development partnerships with regional and local financial intermediaries in the SADC region that will partner to deliver local SME and Agricultural finance

Visit each priority country to meet with financial sector stakeholders to better understand the opportunties to partner Commercial Banks; other

alternative funding vehicles - asset managers, funds, microfinance and others.

MarFeb

WRS Needs Assessment, including value chain and locational focus

ACENeeds assessment documented and support areas identified

Work area mapping

Detailed concept notes for key work areas and workplan, with impact quantification per value chain and location, incorporating domestic and export value chains

ACE Concept notesMin 4 concept notes

Implementation of work areas ACE WorkplanTechnical documentation

Scoping of capacity-building programme and Malawian banks Scoping document, resourcing plan and 4+ approvals to Preparation of capacity-building programme FMB, NBM, OIBM, Other Technical programme materials and MaterialsExecution of capacity-building programme FMB, NBM, OIBM, Other Bank capacitation 4 banks engaged

Strategy/Initiative 5: Transaction support to increase investment within SATIH Region

Align with USAID regarding process and criteria for sourcing, selecting, and support transactions

Internal among CrossBoundary, Hub, USAID

Strategy Toolkit 1 Toolkit

Examine capital source options to enable efficient capital introductions during transaction support activity

EMPEA, AVCA, Capital Allocators including: private equiy funds, asset managers, local banks, etc

Capital Map & Investor Database 30 investors

Generate transaction leads Investors / Investees Investment Pipeline15 Transaction Leads

Assemble actionable transactions and understand transaction needs

Tentatively selected transaction participants

Information Requests10 Information Requests

Select transactions to engage and validate with Hub

Selected transaction participants

Project Submission Document6 Transactions Approved

Engage selected firms to receive support on specified transactions

Approved transaction participants

Advisory Agreements6 Signed Agreements

Provide transaction support services to firms and investors including analytic deliverables


Deal Support / Analytic Deliverables 6 Work Products

Supporting transactions to contractual close (# of deals)


Selec Deal Legal Docs 1

Supporting transactions to contractual close (Value of deals)


Selec Deal Legal Docs $5 million

5.3

5.4

Transaction Support

Closed Transactions

Market Engagement

Transaction Sourcing

5.1

Bank Capacity-Building for WR Finance, Malawi

5.2

4.2 Support for WRS Development, Malawi

4.3


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4. Enabling Environment and Trade Facilitation

The Trade and Investment Hub’s Enabling Environment and Trade Facilitation team works with regional economic communities (SADC, SACU), SADC Member States, private sector partners and academia to strengthen regional actors’ ability to implement multilateral and regional trade policies and agreements. These include the WTO Agreements on Trade Facilitation, SPS and TBT; improvement of regional transport corridor management; addressing key non-tariff barriers (NTBs) affecting trade in Trade and Investment Hub value chains; and, building partners’ capacity to advocate for trade- and investment-friendly policies. The Trade and Investment Hub also coordinates with other USAID-funded and supported initiatives such as bilateral trade capacity building projects and alliances, including the Global Alliance for Trade Facilitation and the Standards Alliance.

These activities will support the Trade and Investment Hub’s broader goals of increasing intraregional trade, promoting exports, facilitating investment and reducing the time and cost of trade. Through both a top-down, policy-level approach, and bottom-up activities supporting traders and associations, commercially meaningful results will be achieved.

EE&TF will deploy a balanced mix of international and regional experience and knowledge of the various subject matters. The EE&TF team leader will be based in South Africa and supported by professionals based in Botswana and Zambia. This arrangement will ensure both appropriate geographic coverage and breadth of technical expertise in areas where support is most needed. Each long-term expert brings technical expertise – namely, value chain integration, business enabling environment, supply chain logistics, customs and coordinated border management, trade policy, SPS/TBT and trade facilitation. They will apply this expertise to challenges posed at both the regional and national levels. Short- term experts will be deployed to support review and development of legal provisions, business process re- engineering, and other technical specialties as required.

4.1 Regional Context and Overview Effective participation in the global economy requires fast turn-around times and predictable deliveries. Despite significant potential, SADC still faces challenges in these areas: SADC exports take 28.3 days on average to reach their destinations compared to 6 to 12 days for the rest of globe.38 SADC Member States represent less than 1% of global exports with only 15 to 20% of exports to neighboring SADC countries, much lower than the global average.39 Though several SADC Member States rank well according to the World Bank Doing Business Trading Across Border export surveys, other prominent SADC Member States (Namibia, South Africa, Zambia) rank quite low. The consequences of border inefficiency include reduced truck

38 Hoffman, Grater, Schaap, Maree & Bhero. A Simulation Approach to Reconciling Customs and Trade Risk Associated with Cross-Border Freight Movements. South African Journal of Industrial Engineering 27.3 (2016): 251-64. sajie.journals.ac.za/pub/article/download/1659/730 39 Jansen, M. (2006) Services Trade Liberalization at The Regional Level: Does Southern and Eastern Africa Stand to Gain from EPA Negotiations? World Trade Organization, Economic Research and Statistics Division,7. Retrieved from: https://www.wto.org/english/res_e/reser_e/ersd200606_e.pdf

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utilization levels; loss of production time and retail sales for customers due to delays; loss of customs revenue due to corrupt practices; and, reduction in the regional economy due to loss of foreign trade. By improving cross-border delays by one day intra-SADC trade can improve by USD 400 million and SADC global exports by USD 2 billion per annum.

Most global exports are handled by ocean-bound transport; however, five of the eight SADC Member States of interest are land-locked economies, which rely on each other to access each other’s markets and open seas. The Southern African region also includes, and is surrounded by, countries of various degrees of transit and transport efficiency and risk, which can be variably hampered by high transportation and logistics costs, border delays and other non-tariff barriers. Having multiple viable alternatives for trade and transit will increase the economic security of the SADC countries and will lead to greater competition in lowering transport costs and delays.

The implementation of several trade agreements, including the WTO Agreement on Trade Facilitation (TFA), offers strong opportunities to SADC Member States to improve the time and cost of trade. As of this writing, ten out of 15 SADC member states have notified the WTO of their category A, B and C commitments and seven of the SADC Member States (including Botswana, Lesotho, Mozambique, Swaziland and Zambia) have ratified the agreement. Two regional integration “roadmap” programs – the SADC (Comprehensive) Trade Facilitation Program (TFP) and the Tripartite COMESA, EAC and SADC Transport and Transit Facilitation Program (TTTFP) – can also guide member-states in facilitating trade within the region, as well as with external partners. EE&TF will collaborate closely with the SADC TIFI, I&S and FANR Directorates, as well as public and private sector stakeholders at the Member State level, to support the implementation of these programs.

SADC TFP. With the assistance of the USAID-SATH program, the TFP was designed and drafted in 2015 and was subsequently adopted and approved by the SADC Ministers of Trade during the 16th Meeting of the Ministerial Task Force on Regional Economic Integration in March 2016. The TFP is a five-year program to complement and support the SADC agenda for regional economic integration and industrialization. The 28 activities of the TFP build upon the SADC thematic initiatives and priorities clustering around four pillars – transparency, predictability, simplification, and cooperation – to reduce clearance times and trade transaction costs in Member States by harmonizing and simplifying trade procedures, initiating regional trade facilitation schemes, and guiding and supporting national trade facilitation. The TFP is a SADC-specific initiative and addresses regional and Member States’ issues, though notably its goals are compatible with the WTO TFA, and other legal instruments associated with trade facilitation (such as the Revised Kyoto Convention).

SADC TTTFP. The Tripartite COMESA, EAC and SADC Transport and Transit Facilitation Program (TTTFP) has the overall strategic objective to facilitate the development of a more competitive, integrated and liberalized regional road transport market in the Tripartite region. The TTTFP’s purpose is to develop and implement harmonized road transport policies, laws, regulations and standards for efficient cross- border road transport and transit networks,


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transport and logistics services, systems and procedures in the Tripartite region. TTTFP aims to implement the Tripartite Vehicle Load Management Strategy, harmonize Tripartite vehicle regulations and standards, operationalize Tripartite transport registers and information platforms, and improve the overall efficiency of regional transport corridors. EE&TF will collaborate with the SADC Infrastructure and Services (I&S) Directorate to identify the corridors that the Trade and Investment Hub can monitor and focus on to improve performance.

4.2 Vision and Strategy

The Trade and Investment Hub will support regional and national partners in enabling transparent, reliable, efficient and cost-effective trade. EE&TF will strive to achieve this vision in partnership with SADC by:

• Partnering with public and private sector stakeholders to facilitate and increase trade along regional trade corridors

• Supporting the implementation of international and regional trade facilitation agreements, including the WTO Trade Facilitation Agreement (TFA) and the SADC Trade Facilitation Program (TFP)

• Supporting logistics sector improvements and innovations to eliminate constraints for key value chains

• Addressing non-tariff barriers impinging trade at both policy and operational levels • Empowering private sector partners to effectively cooperate and share experiences,

develop and strengthen advocacy skills and capabilities, and to encourage pro-business initiatives

4.3 Targets and Expected Results

EE&TF is committed to achieving the following during the lifetime of the project: 25% reduction in cost to trade goods across borders and along corridors; 8 fewer days required to trade goods across borders and along corridors; 15 policies or regulations implemented to increase trade and investment – and in the first year of operation, EE&TF will contribute to these project-lifetime goals by participating in the events described below and developing the listed deliverables.

4.4 Strategic Constraints Analysis

Balancing long-term regional integration goals with short-term political gains. There are two scenarios EE&TF is likely to encounter – firstly, a national administration may sign up for a regionally donor- supported trade facilitation and/or infrastructure program but stray from the agreed plan to satisfy its own political interests, such as during a national election etc., and secondly, the balance of incentives often favor non-implementation as few regional agreements have penalties for delayed implementation and effective monitoring and compliance mechanisms are still in their infancy.


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Balancing customs’ competing priorities (revenue collection, supply chain security) with trade facilitation. Many national revenue administrations are driven by the need to maximize revenue collection – duties, valued added or sales taxes collected by these administrations in imports is an important source of domestic revenue – specific revenue targets are set which have a direct influence on career development and bonus payments; thus, the commitment to facilitate trade is often a secondary objective, albeit this may not be stated publicly. This constraint can equally apply to the other border agencies that are sources for revenue for the government and/or have specific mandates such as bio-security.

The continuing collusion between national administrations with border management mandates, and certain trade factions. It is generally accepted that the actors currently engaged in cross border trade are familiar with the existing procedures and know how to operate and trade profitably. Engaging in major procedural change is aimed at reducing trade costs; however, there are two groups that will feel threatened by such reforms and may actively oppose any change: small actors, such as those in the forwarding and customs clearance sector, customs officials at the border, and politicians who can confer patronage through approving exemptions; and larger actors, such as financial institutions, clearing and forwarding agents, import competing private companies, and parastatal entities that may be currently benefiting from the existing policy and regulatory framework.40

REC overlap (SADC, SACU, COMESA). The multitude of Regional Economic Communities (RECs) in Southern Africa can cause capacity issue within governments and confusion for traders, as, on average within continental Africa, 95% of the members of one REC belong to another. Within the SADC region, all Member States, excluding Mozambique, belong to at least two RECs, with Swaziland belonging to three. EE&TF will provide assistance to prioritize challenges and opportunities within the various RECs that can yield the most meaningful commercial results for traders in light of the constraints of overlapping membership obligations.

The changing face of SADC (re-organization and changing personnel). The Trade and Investment Hub has a long working relationship with SADC and had developed a very close relationship with key partners in the SADC TIFI and Infrastructure and Services (I&S) Directorates. In 2016, almost all key personnel left SADC due to contract terms ending and for other reasons. These key personnel facilitated the development of the SADC Trade Facilitation Program (TFP) with the support of SATH. The change in personnel is likely to impede the implementation of the SADC TFP due to the limited capacity of Directorate resources as well as the time needed to learn the complexities of the program. The change in personnel is a constraint as well as an opportunity. EE&TF will work to foster new relationships and awareness within these Directorates of the Trade and Investment Hub’s objectives and goals.

40 Robert Kirk, International Development Group. The Political Economy of Trade Facilitation in Eastern and Southern Africa. Political Economy of Regional Integration in Sub-Saharan Africa (2016): 107-124. http://documents.worldbank.org/curated/en/601711468010204270/Political-economy-of-regional-integration-in- sub-Saharan-Africa


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Multiplicity of ICPs/Donors. Within the SADC Corridor development cluster, there are already eight “competing” implementing partners/donors working on closely aligned projects/programs in the SADC Member States – AfDB (4), AUC/EU (1), DfID (3), EU (multiple), GIZ (4), JICA (3), WB/SSATP (1).

This plethora of agencies leads to projects being over-subscribed, confusion at national host country level and unnecessary duplication of work; consequently, funding is wasted. EE&TF will make a concerted effort in each Member State to connect with all donors and implementing partners working in like clusters, and to also “think outside of the box” for new programs/projects.

Limitations presented by exclusion of activities in Zimbabwe and Democratic Republic of Congo (with specific reference to trade corridors). As EE&TF has recently entered the SADC ICP sector behind a considerable number of already established donors, the team will need to identify areas where it can add value. Further limitations include providing support to corridors which traverse all Member States. EE&TF was encouraged to concentrate on the corridors stretching from Maputo to Walvis Bay (East-West) as it would mean working with and in all SADC Member States on those routes.

4.5 Key Initiatives and Activities

The selection methodology for the various interventions will be a combination of research/bench-marked critical path based, and/or because of key constraints analyses which then will drive strategic improvements, and/or demand-driven interventions which demonstrate a willingness to change, and enable opportunities to leverage champions.

4.5.1 Partner with national and regional public and private sector stakeholders to facilitate and increase trade along key regional trade corridors.

Corridor development or spatial development has become a cornerstone for economic and territorial development. There are five main reasons for this41:

• A corridor is a “smart” tool for integrated territorial planning that combines interventions in infrastructure (and related services) with specific actions to boost key sectors.

• Economic corridor programs encompass a set of coordinated actions that ensure a critical mass of investments with the ability to transform the territory.

• Corridors are intrinsically conducive to generating multi-stakeholder strategic alliances for development, with the participation of local and public authorities, private actors and donors, among others.

• There is a symbiotic relationship between corridors and regional trading blocs, which often go hand in hand. According to Ernst and Young (2011a), combining corridors and regional trading blocs helps to deepen conventional country-based macro-analysis, in a

41 “Making economic corridors work for the agricultural sector,” Food and Agricultural Organization of the United Nations. http://www.fao.org/3/a-i4204e.pdf

http://www.fao.org/3/a-i4204e.pdf


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way that enriches strategic thinking about how to spur inclusive and sustainable growth in the developing world.

• Through years of trial and error, best design and implementation practices have been identified, contributing to improving the performance of new and ongoing corridor interventions.

Furthermore, following a comprehensive drafting, consultation and negotiation process, SADC Member States are nearing the completion of the Costed Action Plan to the SADC Industrialization Strategy and Roadmap (SISR Action Plan). A number of conceptual approaches guided this process; in the area of trade facilitation, activities are clustered around two interlinked concepts, namely 1) corridor development and 2) value chain development. The Action Plan proposes that: “Hard and soft infrastructure needs are prioritized and sequenced along corridors in a manner whereby activities mutually reinforce each other, resulting in quick and tangible improvements for priority industries and value chains.” Towards that end, the Action Plan infers that corridor development is at the heart of industrial upgrading, with the value chain focus ensuring that corridors are not developed randomly but in accordance with their actual economic function.

EE&TF will conduct the following activities:

Conduct ‘time’ baseline study of selected corridor(s). EE&TF will examine current trading conditions by contracting with a third-party entity that will take an initial measurement of the time associated with moving goods across borders. Results of the study will be used throughout the life of the project to help EE&TF monitor the progress of interventions that will lead to reduced time of trading along the selected corridors.

Conduct ‘cost’ baseline study of selected corridor(s). EE&TF will develop a model for collecting, analyzing and reporting transport and logistics baseline cost data. The analyses will also contribute to development of a methodology to collect annual cost data corridor performance monitoring within the Southern African Development community (SADC) region. These analyses will be applied to recommend interventions that will generate the highest impact in terms of reduction of cost and increased reliability of exports.

Select and target trade corridors for assistance. EE&TF will create selection criteria that will identify one or more trade corridors to maximize economic impact, and that will offer the most commercially meaningful results. EE&TF will apply the criteria through constructive engagement with private sector, business associations, development partners, and government agencies across eight countries in the region.

4.5.2 Support the implementation of international and regional trade facilitation agreements, including the WTO Agreement on Trade Facilitation and the SADC Trade Facilitation Program.

Among SADC’s goals are poverty reduction, increased investment, and deeper regional economic integration. All Member States and the SADC Secretariat recognize that trade is a stimulus and enabler of integration and that further trade facilitation and financial liberalization, as well as competitive and diversified industrialization, have become imperative.

In support of the regional counterparts, EE&TF will:


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Support SADC and targeted Member States to implement selected measures contained in the Trade Facilitation Programme (TFP). In partnership with SADC, EE&TF will participate in Thematic ICP coordination meetings organized and hosted by the SADC Trade, Industry, Finance and Investment (TIFI) Directorate and liaise with the TIFI Director to consider areas for Trade and Investment Hub support and collaboration; work with SADC TIFI Directorate to clarify and confirm prioritization of TF measures and develop action/activity plans.

Support the SADC Regional Trade Information Portal. EE&TF will support SADC TIFI to conceptualize a SADC Regional Trade Information Portal (TIP) incorporating SME market access information, a regional SPS database, real-time border information such as delays, corridor performance management information/data and Time Release Study results, and to identify and engage with private sector partner(s) to better implement and ensure long-term sustainability of a SADC Regional Trade Information Portal (TIP). The SADC Regional TIP is envisaged to complement and not substitute for the Member States’ national trade information portals.

SADC Member States – who has a trade information portal?

Angola No Botswana Yes DRC No Lesotho Yes Madagascar No Malawi Yes Mauritius Yes Mozambique No Namibia Yes (supported by SATIH) Seychelles Yes South Africa No (but has strong government websites) Swaziland In development Tanzania Yes Zambia No (to be supported by SATIH) Zimbabwe Yes SADC No (to be supported by SATIH)

Conduct a Time Release Study for the Trans-Kalahari corridor. In May 2016, the SACU Trade Facilitation Directorate requested financial support from the USAID/Southern Africa Regional Economic Growth Office to support a time-release study (TRS) for the Trans-Kalahari Corridor. After reviewing the TRS workplan, the Trade and Investment Hub will provide technical assistance, including support for two workshops: one to determine the TRS scope and coverage and a second to finalize the TRS report and prepare for publication/socialization of the results. The Trade and Investment Hub will also support private sector stakeholder sensitization activities, with data collection during TRS implementation, and with compilation and analyses of the TRS outputs for this exercise. The assistance will be sustainable, enabling the Namibian, Botswanan and South African Customs administrations to take ownership of the TRS mechanism, publish the TRS results, and to use the 2017 TRS as the baseline measure for future studies to occur on a bi-annual or annual basis. In February 2017 SACU advised the Trade and Investment Hub they wished to delay the TRS exercise to 2018 as they have emerging priorities.


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Identify information sources of non-tariff barriers (NTBs) that impact key Trade and Investment Hub value chains and other entities along the specific corridors identified. One of the most critical intrusions that has an immense impact on cross-border trade transactions and transport logistics within Southern Africa (both in cost and time) is the proliferation of non-tariff barriers, either created through long-term institutional bureaucracy or illicit and short-term gains. To successfully develop an initiative which hopefully will go a long way to resolving these NTBs, the initial step is to identify the sources and build a real-time or frequently updated virtual database of known and continuously verified NTBs by country, area/vicinity, type and occasion. In-depth consultations will be conducted with all key partners and stakeholders, those involved with driver/operator blog sites, and desktop analyses of NTB portals.

Conduct Stakeholder analyses in selected corridor(s), and formulate stakeholder and development partner matrices. EE&TF will utilize a range of communication tools and techniques to determine the actual interests of a diverse set of private and public sector and development partners in the selected trade corridors, and will also develop a matrix defining the border management, trade policy, trade facilitation and private sector development roles, and identify the potential for collaboration and leverage among these stakeholders. EE&TF will participate in relevant development partner coordination fora, and will contribute to the national trade facilitation action plans accordingly. A comprehensive stakeholder database will be created and maintained that will help EE&TF manage stakeholder relationships, in addition to a problem tree and set of prioritized constraints that must be tackled to further enable the pro-business environment, and to reduce time and costs to trade.

In Botswana, EE&TF was formally requested to include the following activities within the first-year plan. The first is the continuation of a “legacy” activity begun by SATH in 2015/16.

Support the development, enactment and implementation of the new Customs Act and Regulations. Under SATH, USAID supported the legal review of Botswana’s new national Customs law and recommended changes to ensure its compliance with the WTO Agreement on Trade Facilitation (TFA) and the World Customs Organization’s revised Kyoto Convention (RKC). This technical assistance culminated in a draft bill of Customs legal provisions [the new Customs Act] ready for submission to Parliament in mid- 2016. The Botswana Unified Revenue Service (BURS) has now urgently requested expertise from the Trade and Investment Hub to help repeal all provisions relating to Customs from the current Customs and Excise Duty Act. BURS requires technical assistance in the first quarter of 2017 to ensure delivery of the legal provisions to Parliament in July 2017. BURS has also requested assistance with drafting of National Single Window and Coordinated Border Management regulations to the newly drafted Customs Bill. Under SATH, USAID supported the drafting of regulations on NSW and CBM. These regulations should be drafted in time for presentation to Parliament along with the new Customs Bill in July 2017. BURS also requested technical assistance on training and familiarization of the new Customs Act and Regulations within the third quarter of 2017.

Provide technical oversight, assistance and compliance assurance for implementation of a Botswana National Single Window. BURS is currently using its own funds to develop and implement a new Customs Management [ICT] System (CMS) to replace the ASYCUDA++ system


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currently in use. After a prolonged procurement process, in 2015 BURS contracted CrimsonLogic PTE Ltd to develop and implement the new CMS. BURS had already been appointed by the Government of Botswana to be the lead agency for the development and implementation of a National Single Window (NSW) for Botswana and so a decision was made that the new CMS would be the platform or backbone of the NSW. BURS has requested that the Trade and Investment Hub provide a technical adviser to oversee, assist and assure compliance for NSW implementation. BURS has not yet developed the in-house capacity to ensure that the system functionality offered by CrimsonLogic meets public and private sector needs.

Support to resuscitate the Customs–to-Business (C2B) forum. BURS has asked EE&TF to support the revival of the currently dormant C2B forum.

In Malawi, EE&TF was formally requested to include the following activity within the first-year plan:

Support the establishment of an Authorized Economic Operator facility in Malawi. The Malawi Revenue Administration requested EE&TF support to develop s concept note for an AEO program that is applicable from both import and export transactions, and to facilitate discussions with the private sector and other border agencies to ensure the AEO facility offers simplified procedures and other benefits to those accredited. EE&TF will draft the AEO program, and an Action Plan for implementation.

In Namibia, EE&TF have planned for continuation of “legacy” activities begun by SATH in 2015/16:

Provide technical assistance and support for development and implementation of the Namibia National Single Window. EE&TF will help develop procurement documents, finalize the technical and functional specifications for the National Single Window (NSW), and undertake business process re-engineering (BPR) initiatives for two key NSW government agencies.

Provide technical assistance and support to develop, enact and execute new Customs Act and Regulations for Namibia. As in Botswana (see above), the predecessor USAID SATH program contributed to a complete re-draft of the Namibian national Customs and Excise law and recommended changes to ensure compliance with the WTO TFA and the WCO RKC. As with BURS, the Namibia Customs and Excise Service (NCE) requires comparable assistance to confirm the Customs legal provisions and regulations. Additionally, NCE has requested technical assistance and support to draft Standard Operating Procedures (SOPs) for the new Customs legal provisions.

In Mozambique, EE&TF was formally requested to include the following activity within the first-year plan:

Support towards expedited shipments in Mozambique: Provide technical assistance on the implementation of TFA Article 7.8 (Expedited Shipments) in Mozambique to support the setting up of special facilitative procedures to allow expedited release of goods entered through air cargo facilities and for those persons who apply for such treatment. In Mozambique, EE&TF


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participated in the inaugural Trade Sub-Committee to discuss the final report of the Trade Facilitation Agreement Categorization, the official ratification of the TFA, and coordinating support to the notified Category C commitments. Implementation of TFA Article 7.8 will involve reviewing the legislation in relation to urgent air shipments, ensuring the provision of simplified procedures, the qualifying criteria and the allowance of customs controls to be carried out at the operator’s dedicated facility; interviewing relevant stakeholders (Customs, post office, express delivery companies) in order to establish the current handling of urgent shipments; and, proposing the necessary changes to legislation and current practices, enabling conformity.

In Zambia, during January 2017, EE&TF met with Zambian public sector administrations to clarify the Zambian government's requirements for Trade and Investment Hub support. EE&TF will also progress a “legacy” activity begun by the USAID SATH and PROFIT+ programs in 2016:

Support the development of the Zambia trade information portal. In order to support Zambia’s requirement to comply with the WTO Agreement of Trade Facilitation’s provisions for publication and availability of information (article 1), EE&TF will provide technical assistance to determine the project scope for Zambia’s national E-Trade Portal, to establish a steering committee, to begin the identification and collection of trade related content, to engage the private sector to understand its needs and expectations, and to support the compilation of the procurement documents ready for the Zambian Government to act upon engaging a local web design and development company to build the E-portal.

Conduct a compliance audit of the border agency operations at the Chirundu one-stop border post (OSBP) in Zambia. The Zambian government requested the Trade and Investment Hub to conduct an audit on the level of compliance of operational clearance procedures, and to analyze choke-points and provide actionable recommendations to enable better flow of traffic and goods through the Chirundu border. EE&TF will review and compare the legal and policy frameworks and the operational procedures and business process flow in practice at the Chirundu OSBP and prepare a lesson learned statement to enable a more transparent transition of effective clearance procedures at the other OSBPs currently under development.

Conduct diagnostic study missions and meetings in Lesotho. Between February and May 2017, EE&TF will conduct diagnostic study missions and meetings to assess and prioritize the capabilities and effectiveness for risk management and coordinated border management practiced by the Customs and partner-border management agencies, the transparency of trade information, and to learn of nationally prioritized trade facilitation initiatives they are committed to develop and/or implement and for which they have no current donor support.

4.5.3 Support logistics sector improvements and innovations to eliminate logistics constraints for key Trade and Investment Hub value chains.

Transport logistics plays a significant role in any value chain and is vital in connecting industries and countries, for its involvement in driving technology along trade routes (e.g. mobile phone cover), and generally driving towards best practice improvements in value chains through the combination of better facilities, technology advancement and logistics infrastructure.


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Increasingly, transport logistics in developing countries, particularly within Southern Africa, is generally accepted as one of the drivers for opening areas (industrial clusters along routes) and extending their reach into the low-income areas of the least-developed countries.

Within Southern Africa, transport logistics is notable for the diversity of lead firms participating in the sector – including major shipping, air freight and heavy haul road transport companies; the worldwide integrators as well as the ancillary express delivery and distribution organizations; and, finally, the freight forwarding and customs clearance service providers. Added to this mix is the prolific range of local “on the ground” operators that they partner with, and through this association, these sole-trader operators are progressively being brought into the new-age technology of the industry.

The Trade and Investment Hub will support improvements in transport and logistics through the following activities:

Develop and implement solutions to overcome selected logistics constraints/NTBs. Once catalogued and analyzed, solutions for the NTBs will be proposed and discussed in conjunction with the various partners, operators and stakeholders within the industry – and assessed for their effectiveness, evaluated for ease and cost of implementation, and implemented through engaged public and private institutions.

Perform analyses within the logistics sector for capacity building needs. To assist in capacity building within the regional logistics sector, it is necessary to identify the gaps and shortfalls within the various national sectors (transport, warehousing, customs clearing/border management, distribution, technology) in the SADC Member States. Once the gap analysis is complete, EE&TF will provide technical assistance to address the gaps within the private sector identified in the form of capacity building and training resources/aids thus ensuring increased competitiveness and sustainable international capacity, and if appropriate, support the industry associations wishing to invest in new technologies and equipment through the Trade and Investment Hub’s Strategic Partnership Fund application process. With respect to the public-sector administrations, EE&TF will provide similar technical assistance to address the gaps identified within the institutional framework around the selected corridors.

Identify the potential for development and/or implementation of solutions through the intra- regional networks of logistics service providers. Initially, before any potential for turnkey solutions can be determined, the key operators within the logistics sector must be identified, collated and tabulated into a database. The categorization of the logistics service providers (LSPs) can be segmented as follows:

• Transport – bulk liquids, refrigeration, general cargo/bulk commodities, containerization, outsize/abnormal loads etc.

• Warehousing and processing - agriculture, retail, textiles, foods, consumer goods • Distribution - fixed network, express network, variable networks • Technology and Services – supplementary service providers to the above sectors

supplying the necessary equipment, software and infrastructure to insure operational


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efficiencies in the various disciplines

Once the categorization is complete, these LSPs shall be aligned with the key Trade and Investment Hub value chains, enabling intra-regional supply chain solutions to be conceptualized and developed.

Deliver capacity building to selected LSPs and public sector administrations. EE&TF shall initiate consultative meetings with the intention of identifying the participants within the logistics industry/sectors of the representative SADC Member States, to benefit from EE&TF technical assistance for on-going operational and management development. Dependent upon the different attributes and characteristics of the selected recipients, this assistance can be in various forms ranging from, but not limited to:

• Utilization of new technology in scanning/RFID vehicle management techniques • Development of industry wide portals for use in load/transport matching, load

aggregation both by geophysical and physical source or type of commodity • Improvements in cash-to-cash-cycles through utilization of technology in the

warehouse and distribution environment

• Improving knowledge of and/or access to distribution network management skills and customer service through parcel tracking facilities

4.5.4 Address SPS- and TBT-related barriers in collaboration with SADC-regional, and national government agencies.

Effective, science-based implementation of sanitary and phytosanitary measures (SPS) can increase intraregional trade and agricultural exports to target markets, as well as play a critical role in safeguarding public health and consumer protection. The expansion of President Obama’s Trade Africa program is funding bilateral SPS implementation support in Mozambique and Zambia. This support is being provided through USDA and other players, including USAID-funded bilateral assistance programs (e.g., SPEED+ in Mozambique and PROFIT+ in Zambia). EE&TF will coordinate closely with these activities, especially given the imminent procurement of the PROFIT+ successor project. In the meantime, EE&TF has identified several activities to pursue at the regional SADC level and SADC member-states.

Harmonize SPS measures for select commodities in the region. EE&TF will coordinate closely with the Agribusiness Trade team to support the harmonization of SPS measures for target staple and non-staple crops critical to food security and increasing intraregional trade. Illustrative activities may include supporting public-private dialogue at the regional and national levels, building the capacity of agribusiness association partners to advocate for harmonization, and supporting pilot programs between two neighboring SADC member-states.

Harmonize SPS border inspection procedures, at selected border crossings. The SADC SPS Coordinating Committee has requested Trade and Investment Hub support for the harmonization of border inspection procedures for SPS, an activity which plays well to the team’s


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expertise in border clearance and SPS. EE&TF will coordinate with Trade and Investment Hub Agribusiness Trade experts, association partners, agricultural ministries and other border management authorities to design and implement a pilot program to streamline and harmonize SPS inspection procedures for target value chains. The pilot will occur at one or more border crossings on a transport corridor handling significant trade volume.

Support national SPS committees to adopt and implement SADC and COMESA standards for aflatoxin. In 2016, the USAID-funded Leveraging Economic Opportunities (LEO) project assessed SPS trade policy constraints for three value chains (maize, soya and groundnuts) in Malawi, Mozambique, South Africa and Zambia. Aflatoxin is among the greatest plant health and food safety threats to the target value chains; however, national SPS committees in the region are not adopting and implementing international science- based standards and their communications and coordination around the issue are weak. The Trade and Investment Hub’s EE&TF and Agribusiness Trade teams will work with regional/national local partners to promote the development and adoption of science-based policies/standards for aflatoxin; including the development of policies for the alternative use and/or disposal of contaminated testing.

EE&TF will also support regional- and national-level efforts to implement the WTO Agreement on Technical Barriers to Trade (TBT). During the Trade and Investment Hub (SATH) project, this work was funded through the Washington-based Standards Alliance, a partnership between the USAID Office of Trade and Regulatory Reform (based in Washington) and the American National Standards Institute (ANSI), with SATH providing in-kind labor and some travel/logistical support. EE&TF will coordinate with USAID and ANSI in a similar manner. ANSI/Standards Alliance is also supporting TBT implementation in Mozambique and Zambia, and EE&TF will coordinate efforts on these national-level programs as well.

4.5.5 Build capacity of private sector organizations such as trade associations, chambers of commerce, women’s business associations, etc., to effectively share best practices in service delivery, advocacy and pro-business initiatives across the region.

Southern Africa’s private sector recognizes that business enabling environment constraints are a significant obstacle to economic development. Private sector actors join business support organizations as a way of improving business performance through collective action. This often involves advocating for new national and regional laws and regulations that will improve business conditions. Other reasons for joining associations might include an interest in getting training or acquiring knowledge about specific regulatory matters that may be offered through the association or chamber.

In many cases, business support organizations in the region are helping members to achieve results through the provision of pre-competitive services. Greater efficiency and effectiveness can be realized if these organizations develop a pan-regional shared services delivery platform which is made available to all members rather than sticking with an expensive and fragmented


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approach. Support for better advocacy to achieve these business purposes has worked in many regions including Africa, such as42:

A common delivery mechanism will enable the private sector organizations in the region to develop a coherent approach to the issues which brings together diverse stakeholders that will be unified in their objectives and expectation to improve the business enabling environment.

Working closely with the Trade and Investment Hub’s teams, EE&TF will conduct the following activities:

Identify and select private sector business support organizations in that region that are seeking to offer optimal shared services to members. The Trade and Investment Hub will conduct assessments of various associations in respect of their capacity to offer advocacy and other technical services, and in parallel, will develop selection criteria for potential partnerships that are beneficial to support Trade and Investment Hub -focused value chains and economies of specific interest.

Forge strategy regarding common regional trade constraints facing partners and finalize recommendations. EE&TF will utilize a range of facilitation tools and techniques with partners to identify, prioritize, and agree to a shortlist of urgent regulatory issues that have regional appeal to multiple partner organizations.

Complete partner’s capability assessments to develop best shared services and develop a capacity plan in advocacy and business support services. EE&TF will develop an action plan that describes issue-specific advocacy scenarios, and will provide practical capacity building in gap areas identified under the plan with the goal of supporting the partners to develop and offer high quality shared services across the region to members.

42 Source: http://www.cipe.org/region/africa

• In Zimbabwe, nearly 23,000 women in business are now represented through a national coalition – the Women Alliance of Business Associations of Zimbabwe (WABAZ) that meets with government bodies and elected leaders to advocate a better business environment for women.

• In Kenya, the private sector worked together to secure passage of the first law promoting a supportive business enabling environment for SMEs, and business coalitions were successfully supported to advocate for local policy and regulatory reforms on security, infrastructure spending, and taxation.

• In Côte d’Ivoire, seven business associations created a coalition to represent the needs of small and medium businesses and advocate policy and regulatory reforms to the government.

• In Nigeria, the Lagos Chamber of Commerce and Industry was supported with a study and subsequent advocacy campaign on corruption in two regulatory agencies resulted in procedure changes in those bodies, which significantly reduced incidences of corruption.

• In Senegal, the Union Nationale des Commercants et Industriels du Senegal (UNACOIS) successfully advocated the passage of a revised tax code that included a series of provisions to better integrate small businesses into the formal economy.

http://www.cipe.org/region/africa


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4.6 Key Events

Dates Event Name Event Location Objectives

Strategy/Initiative 4.5.1: Partner with national and regional public and private sector stakeholders to reduce time and costs to trading along key regional corridors

Strategy/Initiative 4.5.2: Support the implementation of international and regional trade facilitation agreements, including the WTO Agreement on Trade Facilitation and the SADC TFP

Nov. 28-29 SADC ICP meeting

SADC TIFI Thematic meeting

Gaborone, Botswana Improved ICP (donor) coordination and prioritization of SATIH interventions

Dec. 15 Trade Sub-Committee Maputo, Mozambique Discuss the priorities listed in the ‘2016 US- Mozambique TIFA proposed strategic objectives, priority areas and action items”; connect with donors in the TF cluster; connect with prime government counterparts for TF initiatives; identify where EE&TF can support TFA priorities

Apr. 7 Workshop organized and TRS Report finalized and prepared for submission to the SACU 'sub- committee'

Regional TRS Report accepted and the results of TRS published. Action plans for addressing identified bottlenecks, NTBs, etc.

Jan. 29 – Feb. 10

Roundtable discussions with private sector

Zambia Greater involvement of private sector


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Strategy/Initiative 4.5.3: Support logistics sector improvements and innovations to eliminate NTBs for key SATIH value chains

Nov 21-24 SSATP REC TC Abidjan, Cote d’Ivoire Coordinate with corridor management and trade facilitation methodologies and programs across Africa.

Collect reports and survey tools to contribute to desktop review and baseline report.

Feb 2 MCLI Maputo, Mozambique Connect with the transport logistics service providers for this corridor; to identify partners for the East-West (Maputo-Walvis Bay) corridor performance monitoring exercise; to focus on corridor performance monitoring initiatives or solutions specific to the Maputo corridor; to learn from, and leverage if possible, of discussions for the North-South corridor performance monitoring activities

Mar. 5 – Sep.29

Training content developed and training conducted

Regional Assessment of the capacity of both public and private sectors along the key value chain corridor(s).

Strategy/Initiative 4.5.4: Address SPS/TBT-related nontariff barriers at the policy level (regional and national)

Feb. 19 – Sep. 29

Training, NEP improvement plans, etc.

Regional Regional and member-state implementation of TBT increased

Strategy/Initiative 4.5.5: Empower and enable private sector business support organizations to effectively cooperate and advocate per best practices for pro-business policies across Southern Africa

Apr. 3 – May 19

Capacity building sessions TBD Advocacy function in 3 organizations across 3 countries

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4Strategy/Initiative 4.1: Support the implementation of international and regional trade facilitation agreements, including the WTO Agreement on Trade Facilitation and the SADC TFP

a. Participate in SADC TIFI Thematic ICP coordination meeting and liaise with TIFI Director to consider areas for SATIH support and collaboration

*SADC *ICPs

b. Work with SADC TIFI Directorate to clarify and confirm prioritization of TF measures and develop action/activity plans for SATIH interventions

*SADC

a. Further support and assistance to SADC TIFI to conceptualize SADC Regional Trade Information Portal (TIP) possibly incorporating SME market access information, Regional SPS database, real-time border information i.e. changes, delays, etc., corridor performance management information/data and TRS results.

b. Identify and engage with Private Sector partner(s) to better implement and ensure long-term sustainability of a SADC Regional Trade Information Portal (TIP).

a. Review the SACU-proposed workplan

*SACU Counter-proposal submitted to SACU for consideration

More effective utilization of resources

b. Support a 5-day workshop to determine the scope and coverage of the TRS

*SACU *Namibia, Botswana & South Africa Customs administrations *WCO

Scope and coverage of the TRS agreed and adopted

Constructive and productive TRS established

c. Support private sector stakeholder roundtable sensitization activities

Findings and conclusions from private sector roundtable(s) published and distributed

Greater involvement of private sector

d. Support data collection in the field at Port and Border Crossings

Time and transaction data collected and available for collation and analysis

Time and transaction data available to facilitate study and analysis

e. Support data merging, compilation and analysis

Data merged, compiled and analyzed and distributed

Bottlenecks, NTBs, lack of coordination etc. and good practices identified

f. Support a 3-day workshop for finalization of the TRS Report, adoption by the SACU 'sub-committee' and publication/socialization of the results

Workshop organized and TRS Report finalized and prepared for submission to the SACU 'sub-committee'

TRS Report accepted and the results of TRS published. Action plans for addressing identified bottlenecks, NTBs, etc.

a. Review and advise on compliance to international norms of functional architecture, business processes and implementation strategy for NSW

*BURS *MTI *MTC *BOBS

Analysis and advisory report produced and delivered to BURS

Effective and efficient NSW to be implemented

4.1.3 Collaborate [Partner] with SACU and Member States to conduct Time Release Study on Trans-Kalahari corridor

SACU *Namibia, Botswana & South Africa Customs administrations *Corridor Management Groups *Private Sector

BOTSWANA4.1.4 Provide technical oversight, assistance

and compliance assurance for implementation of the Botswana National Single Window

4.1.2 Provide technical assistance and support to develop and implement the SADC E-Trade Portal

*SADC *Member States *Private Sector *Corridor Management bodies

Agreed Functional Architecture and data content for SADC TIP

Improved private sector consultation leading towards delivery of a more efficient, effective and sustainable TIP

SACU

Aug-17 Sep-17

SADC4.1.1 Support SADC and Member States to

implement selected measures contained in the Trade Facilitation Programme

Agreed prioritized list of TF measures, resource allocation and Workplan

Improved ICP (donor) coordination and prioritization of SATIH interventions

Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17SATIH FY2017 WorkplanSATIH Enabling Environment & Trade Facilitation FY2017 Workplan

Tasks Key Partners Deliverables / Milestones

Targets/Results Oct-16 Nov-16 Dec-16 Jan-17

b. Stakeholder consultations on NSW strategy, functionality, interoperability and sustainability

*BURS *MTI *MTC *BOBS

>3 stakeholder consultation meetings, action plans drafted and TA support identified

Improved public / private sector dialogue

a. Review current Customs & Excise Duty Act and propose legal amendments required for continued application of Excise legislation

Parts and Sections to be deleted or amended are identified and necessary amendments drafted

Revised Customs & Excise Duty Act

b. Provide technical assistance and support to draft Regulations for new Customs Act

New Regulation(s) drafted (either omnibus regulation or business-specific regulations)

Increased capacity within BURS, Regulations ready for new Customs Act

c. Design and support a Customs-2-Business consultation process prior to final submission of new legal provisions to Parliament

*BURS *Brokers *Freight forwarders *Logistics providers *Other interested parties

Public -private consultation on law changes is transparent, and achieved prior to their enactment

The business community is aware of, and had a voice to the interlocution of legal provisions to facilitate trade

d. Advise and assist with training for Customs staff and brokers of the new legal provisions

*BURS *Brokers Association

Training plan developed, support to development of trainer materials, and support to delivery of one train-the-trainer module

Appropriate training is delivered to public and private sector on the new legal provisions

e. Advise and assist with socialization and communication of the new legal provisions

*BURS *Private Sector Communication strategy developed & Outreach session(s) coordinated with the stakeholders

The business community is aware of the legal provisions to facilitate trade, and their obligation(s) for compliance

a. Review the current framework, reasons for latency, and provide technical assistance to strengthen the POD framework using best-practice guidelines

Strategy to re-establish and continue momentum of public-private dialogue

b. Support the re-launch of the Customs-to-Business forum

Re-launched C2B forum

4.1.7 Determine the support required to implement Category C TFA commitments

a. Diagnostic study mission to assess Risk Management, transparency of trade information, cross-border cooperation, and coordinated border management capabilities, procedures and effectiveness

*Customs and Excise Administration *Ministry of Trade and Industry *Private Sector stakeholders

Formal request outlining the country's requirements for SATIH technical assistance

Progress towards implementation of defined Cat C measures


a. Diagnostic study mission to assess Risk Management, transparency of trade information, cross-border cooperation, and coordinated border management capabilities, procedures and effectiveness. Support the operalization of the One Stop Border Post planned with Mozambique. Support the operalization of the One Stop Border Post planned with Mozambique. Support the implementation of the simplified trade regime (STR) at the border with Mozambique. Support the operalization of the cross-border trade charter (CBTC) .

*Customs & Excise Administration *Ministry of Trade & Industry *Private Sector stakeholders



LESOTHO

MALAWI

MOZAMBIQUE

4.1.5 Provide technical assistance and support to develop, enact and execute new Customs Act and Regulations

*BURS

4.1.6 Provide support to resuscitate the Customs to Business forum

*BURS *Private Sector

Increased stakeholder engagement in respect of trade facilitation initiatives

a. Review the national legislation on Customs procedures and postal services

*MCI *Other border agencies *Postal Service providers *Airport owner/operator

b. Interview relevant stakeholders (Customs agents, postal officers, expedited shipment companies) to establish the current treatment of expedited shipments

*Postal Service providers *Expeditors *Customs brokers

c. Propose changes to the legislation, and to current practices, so as to comply with the TFA requirements, article 7.8.

*MCI *Other border agencies

d. Present the findings and proposed legal changes to the national Trade Facilitation Committee for acceptance

*National Trade Facilitation Committee

Presentation of methodology, findings, proposed legal changes

a. Support the drafting of a Customs regulation and standard operating procedures

*MCI New regulation and SOP are drafted

b. Advise and assist with socialization and communication of the new legal provision

*MCI *Other border agencies *postal Service providers *Expeditors *Customs brokers *National Trade Facilitation Committee

Public -private consultation on law change is transparent, and achieved prior to its enactment

Criteria for application for expedited release treatment shall be published

a. Assist to develop procurement documents and to finalize technical and functional specifications

*MITSMED RFP drafted and issued

b. Undertake business process re-engineering (BPR) initiatives for key government departments and agencies involved in the development of a National Single Window

*MITSMED *Other regulatory agencies

Re-engineered Business Processes documented and approved

a. Review current Customs & Excise Act and propose legal amendments required for continued application of Excise legislation

*Namibia Customs & Excise

Chapters and Sections to be deleted or amended are identified and necessary amendments drafted

Revised Customs & Excise Act

b. Provide technical assistance and support to draft Regulations for new Customs Act


New Regulation(s) drafted (either omnibus regulation or business-specific regulations)

Increased capacity within NCE, Regulations ready for new Customs Act

c. Design and support a Customs-2-Business consultation process prior to final submission of new legal provisions to Parliament


Public -private consultation on law changes is transparent, and achieved prior to their enactment

d. Provide technical assistance and support to draft Standard Operating Procedures (SOPs) for the new Customs legal provisions


Draft SOPs prepared SOPs drafted, accepted and implemented

e. Advise and assist with training for Customs staff and brokers of the new legal provisions


Training plan developed, support to development of trainer materials, and support to delivery of one train-the-trainer module

Appropriate training is delivered to public and private sector on the new legal provisions

NAMIBIA4.1.11 Provide technical assistance and

support for development and implementation of Namibia National Single Window

Business processes reengineered in 2 key NSW partner regulatory agencies

4.1.12 Provide technical assistance and support to develop, enact and execute new Customs Act and Regulations for Namibia

4.1.9 Support the development of a solution to ensure compliance with WTO TFA article 7.8

Short report with an analysis of current legislation and practices, and with proposals for changes, including specific language for normative changes

Special facilitative procedures are established to allow expedited release of, at least ,those goods entered through air cargo facilities

4.1.10 Support the implementation of a solution to achieve compliance with WTO TFA article 7.8

f. Advise and assist with socialization and communication of the new legal provisions

*Namibia Customs & Excise *Private Sector

Communication strategy developed & Outreach session(s) coordinated with the stakeholders

The business community is aware of the legal provisions to facilitate trade, and their obligation(s) for compliance



*Swazi Customs & Excise Administration *Ministry of Trade & Industry *Private Sector stakeholders

Formal request outlining the country's requirements for SATIH technical assistance NB: USAID Swazi mentioned to Exp. Comp. there is an issue with non-harmonized border operating hours with SA


a. Determine Project Scope Project Scope defined and accepted

E-Trade Portal project underway

b. Establish a Project Steering Committee, chaired by MCTI

Project Steering Committee established with clear TOR

Regular Steering Committee meetings held with private sector involvement

c. Assign designated personnel to the project team, seconded on a full or part-time basis as deemed appropriate.

Designated personnel identified and seconded to the project team with clear tasks and responsibilities

E-Trade Portal project underway with project team undertaking related activities

d. Begin the identification and collection of trade related content for the E-Trade portal, including from existing institutional websites, as soon as possible.

Trade related content required is identified and collection started

E-Trade portal data base created and updated

e. Engage the private sector to understand their needs and expectations for the portal before finalizing the requirements to guide implementation.

*MCTI *ZRA *Private sector

Roundtable discussions with private sector

Greater involvement of private sector

f. Engage a local web design and development company to build the E-Trade Portal website.

*MCTI *ZRA



*MCTI *ZRA *Private sector



a. Establish criteria for selection of trade corridors among following possibilities - North-South corridor; Walvis Bay-Gaborone, Gauteng, Mozambique (TKC); Pretoria/Johannesburg SA-Maputo (Maputo Corridor), Dar es Salaam corridor

b. Gather data about possible corridors from completed interviews, economic data, published sources.

c. Describe any donor interventions and potential synergies and/or conflicts to ensure effective coordination.d. Prepare, justify, and finalize selections of corridor/s.

4.2.1 Select and target trade corridor(s) for assistance

Partners from the following types of organizations - *multilateral institutions, *Industry-specific and general business associations, *government agencies, *donors - in South Africa, Botswana, Namibia, Malawi, Zambia, Mozambique, Lesotho, Swaziland.

Concise report that contains the selection criteria, data/information about corridors, and final selection with justifications.

1 trade corridor, or a combination of several trade corridors, selected

SWAZILAND

ZAMBIA4.1.14 Technical assistance and support to

develop and implement the Zambia E-Trade Portal

*MCTI *ZRA

Strategy/Initiative 4.2: Partner with national and regional public and private sector stakeholders to reduce time and costs to trading along key regional corridors

a. Analyze existing time-release studies already completed in Africa focusing on types of stakeholders, definitions, methodologies, data collection tools, findings, conclusions, recommendations, and ultimate impact/usefulness, lessons learned

SOW(s) with estimated budgets and schedules for baseline studies

b. Agree on scope, methodology, tools, schedule, budget c. Develop and finalize scope of work with M&E team for work by external survey companies to conduct baseline studies to measure time and cost

d. Construct budget(s) and schedule for completion of studiese. Prepare ITT documents and any addendumsf. Solicit tenders for baseline studyg. Select contractors to do baseline studyh. Work with contractors to develop baseline data collection tools and schedulesi. Train contractors in methodology, tools, data collectionj. Test tools in the fieldk. Make adjustments to tool based on test resultsl. Assess data collected with contractors on regular basism. Finalize studies with conclusions - time, cost to trading along corridors

a. Identify private and public sector stakeholders who might be impacted in the select corridor (s) through interviews and secondary research NOTE: Many will already be identified and analyzed to a certain extent from 2.1. Covers more organizations throughout the region

b. Define roles, interests, knowledge, expectations, and influence levels of private and public sector stakeholders through surveys, interviews, focus groups, and workshops

c. Ascertain potential impact or support that private and public stakeholders could provide to corridor(s)

d. Score potential stakeholders based on capabilities, goals, and potential contribution to corridor (s)

e. Prioritize types of stakeholders in corridor(s)

f. Identify donor interventions by stakeholder

Final baseline study(ies)

4.2.3 Conduct stakeholder analyses in selected corridor(s)

*Expanded range of general business associations(e.g., importer and exporter associations), chambers of commerce *Expanded range of industry-specific associations such as logistics, clearing agents, freight forwarders, transport associations, agriculture, food processing, apparel, light manufacturing industries *Leading private sector investors/companies, corridor management bodies (if private), and government sector players in selected corridor(s) NOTE: Would be helpful to get direct input from leading companies as that might not be accurately reflected by associations *Private/quasi private corridor mgmt. firms *Government agencies co-located on selected trade corridor(s) *PSIs where applicable

Database of private and public sector stakeholders in corridor(s) containing - Identification information, Assessment information, Classification information (champion/driver, supporter, neutral, resistor)

Comprehensive stakeholder database of selected corridor has been developed and delivered (To be updated on regular basis)

4.2.2 Conduct baseline study(ies) of selected corridor(s)

Partners from the following types of organizations in countries located along selected c orridors of interest: *Multilateral institutions *Industry-specific and general business associations *Government agencies *Donors *Market survey company(ies) *PSIs where applicable

Baseline study with consistent data about time and cost to trade along selected corridor has been completed

Interim progress reports from contractors and project

a. Identify external and internal constraints that stakeholders face while conducting or managing trade in corridors through focus group discussions, workshops, surveys, interviews

Problem-tree analysis

b. In parallel, SATIH makes its own assessment of constraints

Priority criteria

c. Develop and finalize criteria for prioritization of constraints

d. Prioritize constraints with stakeholders

a. Define possible projects to address prioritized constraints with stakeholdersb. In parallel, SATIH provides its own suggestions of prioritized projects

c. Identify and analyze donor interventions - past, present, future to ensure proper coordination and synergiesd. Streamline number and types of possible prioritized projectse. Determine roles, responsibilities, and capabilities of parties to be involved in projects implementation

f. Secure buy-in from stakeholdersg. Prepare and finalize MOUs/LOI with partnersh. Determine implementation mechanism for respective interventions (e.g. technical assistance, grants, investment)i. Prepare SOWs, grants, investment plans to implement interventions

j. Find appropriate external parties to help implement specific project depending on requirements of interventions and capabilities of partners

k. Develop the business-sustainability plan with partners and external parties (STTA, investors, SATIH)

a. Finalize contracting arrangementsb. Implement selected and agreed interventions through either technical assistance, grants, investments, loans

Developed public sector / customs capabilities to reduce bottlenecks at borders and expedite trade

Defined implementation mechanism

4.2.6 Implement selected interventions with partner organizations

Similar to types of partners mentioned above, but with focus on supporting institutions. Will include active support from *STTA consultants, as required *Financial institutions *Investors *PSIs, where applicable

Depending on types of projects/interventions that are defined then execution through either - *Grants *SOWs for technical assistance *Investment plans *Completed projects *Actual loans *Actual investments

Developed laws, regulations that enhance trade

c. Develop and implement communications strategies

4.2.4 Map constraints (non-or slow-implementation of trade facilitation initiatives, bureaucratic Customs procedures, ineffective transit regime) with stakeholders in selected corridor(s)

Similar to types of partners above but more focused on supporting institutions: *Associations (industry-specific and general) *Chambers of commerce *Key companies in SATIH value chains *Major domestic and foreign investors *Multilateral institutions *Government agencies *Corridor management companies (public and private) *Market survey companies *PSIs where applicable * STTA, if required

Roadmap of constraints has been finalized that will help design specific interventions to ultimately reduce time and cost to trade along select corridors

List of prioritized constraints in corridors

4.2.5 Identify and prioritize feasible projects for investment and/or technical assistance

*Associations (industry-specific and general) *Chambers of commerce *Key companies in SATIH value chains *Major domestic and foreign investors *Government agencies *Corridor management companies (public and private) *Multilateral institutions *Donors *PSIs where applicable

Report of proposed interventions by stakeholder(s) with objectives, activities, roles/responsibilities, justifications - business

Fully detailed plans of projects that will be implemented with purpose of decreasing time and cost of conducting trade in select corridor(s)

Developed capabilities of private sector importers and exporters, logistics firms, clearing agents, and freight forwarders to comply with trade requirements

a. Assess progress against requirements of SOW(s), loans, grants, investments.

5% reduction in costs to trade across borders and along corridors

b. Analyze results of interventions against PMEP.c. Take corrective actions if needed.d. Analyze lessons learned.

Strategy/Initiative 4.3: Support logistics sector improvements and innovations to eliminate NTBs for key SATIH value chainsa. Consultations with all Key Partners and Stakeholders to identify main NTB sources and create a data base.

Database on NTB information sources

Information Sources Identified

b. Identify NTBS that impact on SATIH Value Chains and create a data base.

Database of NTBs impacting specific SATIH Value Chains

Information sources of NTBs impacting on SATIH value chains / selected corridor corridors identified

c. Access and analyze NTBS as reported through the Tripartite NTBs Reporting, Monitoring and Mechanism website (www.tradebarriers.org)

Classification of the various NTBS and possible recommendations for the eradication of the NTBS

The Final Report and Action Plan for eradication of identified NTBs

a. Through consultation with key partners and stakeholders, identify existing NTB solutions.

Database on existing NTB solutions in the region OR along identified corridors

b. Assess effectiveness of these solutions and identify gaps where we could assist in strengthening their effectiveness and optimizing efficiencies through technical assistance and grants.

Report on the effectiveness of existing solutions, and recommended actions to address the gaps.

c. Design new solutions to address newly identified NTBs.

List of prioritized solutions designed to address the NTBs.

d. Implement new solutions to address identified NTBs.

Implementation of pilot initiative along the selected corridor.

a. Consultative meetings to identify capacity and training gaps within the identified sectors in 8 SADC Member States

Meetings conducted and gaps identified

4.3.2 Develop and implement solutions to overcome selected NTBs

*FESARTA *Trans-Kalahari Corridor Secretariat *WBNL *Walvis Bay Corridor Group *Maputo Corridor Logistics Initiative *SADC TTTFP - program manager *road freight/logistics associations in corridor countries *regional/national Customs clearing & forwarding associations *Business Associations *Chambers of Commerce *relevant local/national Government Institutions in corridor member states

Reduction in Identified NTBS along selected Corridors

4.3.3 Perform logistics sector needs analysis for training, capacity building

*FESARTA *Trans-Kalahari Corridor Secretariat *WBNL *Walvis Bay Corridor Group *Maputo Corridor Logistics Initiative *SADC TTTFP - program manager *road

Assessment of the capacity of both public and private sectors along the key value chain corridor(s).

4.2.7 Monitor and evaluate interventions Will include active support from *EE&TF and M&E components *STTA consultants, as needed *External contractors/consultants, as needed

Completed M&E assessment of activities.

2 fewer days required to trade goods across borders and along corridors

4.3.1 Identify information sources of non tariff barriers (NTBs) that impact key SATIH value chains and other entities along the specific corridors identified

*FESARTA *Trans-Kalahari Corridor Secretariat *WBNL *Walvis Bay Corridor Group *Maputo Corridor Logistics Initiative *SADC TTTFP - program manager *road freight/logistics associations in corridor countries *regional/national Customs clearing and forwarding associations

b. Provide technical assistance in the form of capacity building & training resources to the identified private sector organizations to address these gaps.

c. Provide technical assistance in the form of capacity building & training resources to the identified public sector organizations, to address these gaps within the institutional framework around the selected corridors (including Corridor Secretariats). a. Identify and create a database of the relevant logistics and transport service providers on selected corridor/s and allocate LSPs to type of service provided i.e. transport - bulk liquids, refrigeration, general cargo etc.; warehousing & processing - agriculture, retail, foodstuffs, pharmaceutical, chemicals/oils; distribution - fixed network, express network, variable network

To facilitate the identification of these operators, consult with - *FERSARTA *regional and national transport and logistics associations *business associations such as local/national/regional Chambers of Commerce

Database of Logistics Service Providers (LSPs) broken down into the relevant services

b. Align LSPs with key SATIH value chains and consult with the incumbent LSPs re their potential inclusion in intra-regional supply chain solutions.

*Key SATIH value chains *identified logistics service providers (LSPs)

Agreed integrated supply chains solutions for the SATIH value chains

c. Provide technical assistance in the form of capacity building and strengthening operational reforms, and from the investment perspective aligning grants with the technical assistance.

*Identified logistics service providers (LSPs)

Technical assistance delivered in line with gaps identified

a. Consultative meetings to identify sector operators of 8 SADC Member States requiring prioritized technical assistance

Training needs identified at operator level

b. Provide technical assistance in the form of capacity building and training resources to the identified private sector operators to address these gaps.

Training conducted

a. SATIH value chains identified; coordination with Agribusiness and export promotion teams

b. Stakeholder consultations on harmonization

c. Evidence-based research on pilot commodity, border crossing, etc.

d. Pilot designed

a. Stakeholder consultations on inspection procedures

b. Evidence-based research on pilot commodity, border crossing, etc.

4.4.2 Harmonize SPS border inspection procedures, especially on one-stop border posts

*SADC *National Agricultural ministries *Agricultural associations *Customs and other border authorities *SPS and TF consultative committees

Pilot program designed and implemented

Increased use of risk-based controls--% reduction in total inspections on OSBP between country X and country Y?

Strategy/Initiative 4.4: Address SPS/TBT-related non tariff barriers at the policy level (regional and national)4.4.1 Harmonize SPS measures for selected

commodities in the region*SADC *national Agricultural Ministries *Standards bodies *Agricultural associations *Regional and national SPS consultative committees

Pilot program designed and implemented

Time/cost (volume?) of trade in X commodity between X country and Y country reduced by Z%? Volume of trade increased by Z%?

4.3.4 Identify the potential for developing turnkey solutions through intra regional networks of logistics service providers (LSPs)

Service providers and turnkey solutions identified

4.3.5 Deliver training and support to capacity building of selected LSPs and public sector administrations

To facilitate the identification of these operators, consult with - *FERSARTA *regional and national transport and logistics associations *business associations such as local/national/regional Chambers of Commerce

Capacity of both public and private sectors along key value chains and corridor/s strengthened.

freight/logistics associations in corridor countries *regional/national Customs clearing & forwarding associations *Business Associations *Chambers of Commerce *relevant local/national Government Institutions in corridor member states

Training content developed

c. Pilot designed

a. Gap analysis and action plan developedb. Terms of reference/MOU for drafting support developedc. Draft legislation discussed/examples from other countries

d. Consultations conducted (interministerial and PPD)a. Gap analysis and action plan developedb. Terms of reference/MOU for drafting support developedc. Training/awareness building on SADC and COMESA standardsd. Consultations conducted (interministerial and PPD)

4.4.5 Propose an action plan to achieve NTBs elimination and SPS accreditation with South Africa for Zambian exports of selected fresh produce

a. Coordinate with Agribusiness and Export Promotion Teams as necessary

*ZEGA *SPS Agency of South Africa

Negotiated for free access of selected fresh produce with South Africa

Increased exports to South Africa of sweet peppers, chili peppers, melon, avocado

a. Develop joint action plan Joint action plan; ongoing technical and logistical support

b. Implementation support for national enquiry points, GRP training, quality awards, etc.

Training, NEP improvement plans, etc.

Strategy/Initiative 5: Empower and enable private sector business support organizations to effectively cooperate and advocate according to best practices for pro-business policies across Southern Africa

5.1 a. Prepare long list of potential partners from business support organizations across the region.

Partner scorecard

b. Develop selection criteria of potential partners with other components.c. Identify and select partners according to criteria.d. Draft MOUs/LOI with select partners in individual countries (not have to be in each of the 8 countries).

a. Compile list of business environment issues affecting membership of the partners across the region.

b. Select issues of common interest with partner organizations.c. Ascertain donor interventions in areas of interest.d. Secure consensus about the specific issues of shared interest among the partners across the region with first emphasis on advocacy to drive pro-business legislative and regulatory enhancements.

a. Develop, with partners, range of possible solutions (projects) to address common regional issues.b. Identify, with partners, the types of shared services offered by partners that will address issues.c. Verify what donors have done.d. Prioritize solutions with partners such as shared services models.

5.3 Finalize a range of possible solutions to address common regional issues

Select partners from the following organizational themes in at least 3 or more countries: *Women's organizations *Industry specific associations *General business associations *Chambers of Commerce

Assessment report describing types of capabilities needed to address issues

Range of services/capabilities agreed between partners that are needed to address issues--Signed document --

NOTES: 1. This covers broad business issues and services in all 8 SATIH countries In contrast to Initiative 2 which is more limited in terms of Identify and select private sector business support organizations in the region that are seeking to offer optimal shared services to members

The following organizational themes in 8 countries: *Women's organizations *Industry specific associations *General business associations *Chambers of Commerce

1 MOU (3 organizations 3 countries) concluded

MOUs, LOIs with partner(s)

5.2 Forge consensus regarding common regional issues facing partners


Summary report with agreed shortlist of common regional issues

Common agenda agreed between 3 organizations in 3 countries--Signed document--

4.4.4 Support national SPS committees to adopt and implement regional and/or international standards for aflatoxin

*National SPS coordination committees *Relevant ministries *Agricultural association partners

Standards adopted, implemented following PPD, stakeholder review; new policies drafted re elimination/alternate use of contaminated food

No. of countries adopting and implementing regional standards for aflatoxin?

4.4.6 Develop a Standards Alliance-SATIH joint action plan on regional and national TBT support.

*USAID/E3 Office of TRR *ANSI *SADCSTAN *National Bureaus of Standards *Ministries of trade, et al.

Regional and member-state implementation of TBT increased

(national and regional)

4.4.3 Support the development of a National Food Safety Policy for Malawi

*Ministry of Agriculture, Irrigation and Water *Development (MAIWD), *Ministry of Health *Malawi Bureau of Standards *National SPS Coordination Committee *Agricultural association partners

Gap analysis, including recommendations, as well as draft legislation, public-private dialogue for review/comment of draft legislation/regulations

National Food Safety Policy drafted and made available for public comment

e. Determine what services are needed to address issues with emphasis on joint regional advocacy to drive pro-business legislative and regulatory business enabling enhancements.

a. Conduct assessment of partners' capabilities to address issues and offer prescribed solutions. Initial emphasis

b. Determine gaps in partners' capabilities.

c. Explain and introduce best international practices to advocacy and shared services.

d. Agree on improvement action plan.

a. Prepare and deliver capacity building sessions about issue-specific advocacy for partners which will cover the entire advocacy cycle.

Advocacy training materials

b. Prepare and deliver capacity building sessions about other identified common services.

Capacity building sessions

a. Create and develop appropriate mechanisms/platforms for advocacy activities.

b. Assist partners with preparations for specific advocacy initiatives and other services.

c. Coach partners throughout 5-step entire advocacy cycle on specific initiatives.

d. Develop and implement communications strategy.

a. Analyze results of capacity building activities.

b. Analyze results of advocacy initiatives.

c. Apply lessons learned.

5.7 Monitor and evaluate interventions Selected partners from the following organizational themes in at least 3 or more countries: *Women's organizations *Industry specific associations *General business associations *Chambers of Commerce *STTA (advocacy, subject matter) as needed

Completed M&E assessment of activities

Drafted and in process of enacting 2 policies, laws or regulations

5.5 Deliver capacity building in advocacy and other shared services

Select partners from the following organizational themes in at least 3 or more countries: *Women's organizations *Industry specific associations *General business associations *Chambers of Commerce *STTA (advocacy, subject matter) as needed

Advocacy function in 3 organizations across 3 countries

5.6 Hands-on coaching for successful delivery of advocacy initiative(s) and other shared services

Select partners from the following organizational themes in at least 3 or more countries: *Women's organizations *Industry specific associations *General business associations *Chambers of Commerce *STTA (advocacy, subject matter) as needed

Drafted, proposed, and enacted policies, laws, or regulations

Started initiatives for 4 policies, laws, and regulationsNOTE: We start more initiatives with the hope that at least two are brought to conclusion in year 1

Commerce

5.4 Complete capabilities assessment of partners in order to develop best shared services to address common issues


Gap analysis report that describes in detail what partners need to develop advocacy function and any other services that are needed

Improvement action plan agreed among partners--Signed document--


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5. Knowledge Management

5.1 Overview and Strategy In successfully fulfilling its mandate to expand trade and investment in the Southern Africa Development Community (SADC), the Trade and Investment Hub must identify, manage and incorporate many types of knowledge. Critical knowledge includes secondary reports related to its work, special studies and cost benefit analyses that lead to better decision-making, easy to digest facts and figures that can help tell a story, and lessons learned to ensure continual project learning and improvement on a technical and operational level.

Changing realities in the operating environment mean that the Trade and Investment Hub will need to be agile, devise appropriate innovations and improve its systems and its institutional readiness for continuous learning and sharing. The Trade and Investment Hub’s KM strategy will be spearheaded by the Knowledge Management (KM)/Monitoring and Evaluation (M&E) Manager with a distribution of roles and responsibilities within the Trade and Investment Hub to ensure widespread success and provide for efficiency and accountability.

Within the scope of its mandate, the Trade and Investment Hub will strive to be a learning organization. It will learn systematically and collectively from its own activities, and from the experience of its partners and outside stakeholders, to deliver high-quality services and to enable its partners to find innovative ways to expand trade and investment in the SADC.

What is Knowledge Management?

“Knowledge Management is the explicit and systematic management of vital knowledge – and its associated processes of creation, organization, diffusion, use and exploitation – in pursuit of business objectives43.”

Knowledge Management as a discipline emerged in the early 1990’s. Focused originally in the fields of business, information systems, and library and information sciences, it gained popularity in other fields, ultimately being implemented as a core business process in many fields. As it has grown as a concept, and has been absorbed into other fields, its definition has changed. Fundamentally though both tacit knowledge, the knowledge that is in people’s heads, and explicit knowledge, knowledge that is codified and presented in databases, reports and documents, are its pillars.

43 Skyrme, D. (2011b), 'Definition', [Online], Available at http://www.skyrme.com/kmbasics/definition.htm [03 Jan. 2013]


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In large and multifaceted development projects, such as the Trade and Investment Hub, KM is premised on the understanding that the working environment is both complex and constantly changing, compelling staff and stakeholders to continually cope and adapt to new developments. The objective of a KM plan is therefore to build an environment where explicit knowledge in the form of data and information is systematically organized to ensure ready availability for use and re-use; and to build methods, processes and forums to gather useful tacit knowledge. KM builds a culture of learning and knowledge sharing (of technical, operational, institutional and other functional knowledge) by harnessing collective intelligence among staff and setting up inclusive processes of generating and utilizing organization knowledge.

Trade and Investment Hub Knowledge Management Objective

The Trade and Investment Hub’s knowledge management objective is to strengthen knowledge-sharing and learning processes within and through the Trade and Investment Hub. The KM strategy recognizes Trade and Investment Hub staff as critical knowledge workers who not only possess technical expertise in their fields but also valuable tacit knowledge of the geographical areas they work in, project partners, strategies and procedures that work in different areas, systems bottlenecks and ways to overcome them, etc. This knowledge forms a collective competence, corporate memory, best practices and lessons learned. With that in mind, the KM process will align with the Trade and Investment Hub’s strategy and underscore wide participation of staff and partners in order to build a dynamic organization with a strong culture of learning and knowledge sharing.

Through Knowledge Management, the Trade and Investment Hub will be more impactful in its objectives, incorporating inside and outside knowledge to inform, adapt, plan and implement. This process shall ensure that existing knowledge is captured as institutional memory and new knowledge is continuously created and used to adapt Trade and Investment Hub actions and interventions for maximum impact.


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Figure 1. KM cycle and process

5.2 Key Activities At the Trade and Investment Hub, KM will take several forms. First, it will include effectively organizing knowledge assets for internal and external audiences to position the Trade and Investment Hub as a key knowledge hub providing relevant information, effective tools, advice and lessons in major economic and other sectors. The main resource to do this is the Knowledge Center on the Trade and Investment Hub website (currently under development). This portal will contain key technical reports and resources from Trade and Investment Hub and secondary sources, related to the four Trade and Investment Hub components:

• Trade & Investment • Export Competitiveness • Agribusiness Trade

Adapt

PlanImplement

Inform

KM Internal Sources

(Hub Staff)

KM External Sources

KM External Sources

KM External Sources

KM External Sources

(USAID, Stakeholders, beneficiaries Int’l Orgs


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• Enabling Environment & Trade Facilitation

The online resources will be tagged by topic, sector and other variables to give users effective tools to find knowledge according to their needs. The Trade and Investment Hub Communications team will work in conjunction with the KM team, as well as Trade and Investment Hub Technical Staff to identify and post relevant resources on the platform.

Often when it comes to high value knowledge assets, such as reports of a technical nature or studies on precise areas of interest, published reports can be dense and difficult to use to impart pertinent information to stakeholders. There is a need for succinct easily digestible findings and key statistics, based on the original reports. To that end, the KM team will work with the Communications team to identify high value secondary source materials related to the Trade and Investment Hub’s work, and will distill those into usable forms for wider dissemination to stakeholders and for internal use, thus making relevant knowledge more digestible and easier to communicate to key audiences.

Apart from the technical resources, the Knowledge Center will also capture, organize and store operational knowledge and other knowledge assets relating to various internal Trade and Investment Hub communities. Tools giving access to key procedures, important lessons, tips, warnings, key contacts and other information relating to local Trade and Investment Hub teams and their work environments will be built into the Knowledge Center to facilitate utilization of these knowledge assets for improved performance across the Trade and Investment Hub. The platform will foster integration of internal knowledge and wide utilization by all Trade and Investment Hub staff.

As part on the internal learning initiative, the KM team will also work with component leads to identify gaps in sector knowledge where the Trade and Investment Hub KM team could play a role in commissioning reports that collect and advance key areas of knowledge to help the project and its stakeholders to understand the context better or specific areas within a sector where reliable data and resources do not exist. In this case the KM team would work with technical teams to scope the work, identify partners to conduct the research and then finalize the reports in a usable format.

In addition to making resources available to internal and external audiences, and commissioning reports, the KM Team will work with staff to execute, as appropriate, cost benefit analyses (CBA) of key project activities in collaboration with component leads, to assess Trade and Investment Hub investment priorities for maximum results. This will occur on a rolling basis as needed and as activities are planned.


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5.2.1 Annual Pause and Reflect Knowledge Management Workshop The keystone to the KM Strategy will be an Annual Knowledge Management Workshop wherein knowledge sharing and collaboration, learning and adapting (CLA) will take precedence. All Trade and Investment Hub staff and select key partners will attend the workshop prior to writing the coming year’s workplan. The objectives of the event are to review the activities and outcomes of the current year, identify changing trends in the Trade and Investment Hub environment and systematically capture lessons learned from all Trade and Investment Hub staff and key partners to be incorporated in the coming year’s plan.

In preparation for this event, and occurring throughout the year, the KM team will identify areas where M&E data do not tell the whole story of the Trade and Investment Hub’s work and where there is an opportunity, through focus groups and key informant interviews, for the project to understand a situation beyond the quantitative data and numbers, getting at the why’s and why not’s of Trade and Investment Hub initiatives. The KM team will look at the factors contributing to an activity’s success or in some cases those factors that diminish an activity’s success. These lessons will be important for the project to understand for the effectiveness of future activity planning and implementation.

KM Target Audiences and Participants

Internal

The key to successful knowledge management is found in the culture and mindsets of an organization; therefore, both key participants and audiences for the Trade and Investment Hub KM initiative is Trade and Investment Hub staff.

The Trade and Investment Hub KM Strategy requires active participation of technical staff in identifying and collecting resources related to their work, identifying gaps in those resources where the Trade and Investment Hub can play a role in furthering research that is valuable on a sector-level, participating in CBAs to determine the activities that will lead to maximum results, and participating in proactively capturing lessons learned related to their work. Without their active participation, the KM initiative will be unable to achieve its objectives. Through active participation of the technical teams’ development and management of new knowledge, focus areas will be streamlined, ensuring institutional memory and efficient sharing of tacit knowledge.

Operations and finance staffs also have a role to play in the KM strategy when it comes to internal lessons learned. Their role within the project is to ensure that finance and operations systems facilitate a smooth-running project, that technical staff can effectively


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do their work, while staying compliant with USAID rules and regulations. To this end, there is a process of sharing and learning from lessons learned internally that, if operationalized effectively, will contribute to the Trade and Investment Hub being more effective, stream-lined, responsive to its internal and external stakeholders, and contributing to the overall greater impact of the project. For the Communication’s Team, KM will be an important apparatus to support information flow, to improve communication of project content and other information, and to improve the way people work together. For the M&E team KM will be a vehicle to share results and lessons to technical teams, management and external partners. For Management, KM will be instrumental to reduce the risk of critical knowledge loss and to improve knowledge through organizational learning; and a platform to receive and communicate vital lessons to build into the project

External

External audiences include Trade and Investment Hub partners and beneficiaries, USAID Southern Africa, project stakeholders and key international organizations. Trade and Investment Hub partners will contribute to KM by providing vital experiences, expert knowledge and studies from their organizations to be shared through the Knowledge Center. Trade and Investment Hub beneficiaries, partner organizations and development players in the region will benefit from vital links to international reports, abridged versions of reports and other resources in the E-knowledge hub, the Trade and Investment Hub Knowledge Center.

Implementation Plan Item Timing Responsibility

Introduction of KM Strategy to Trade and Investment Hub staff and partners

Beginning of Implementation period Communications, KM, Management

KM portal for relevant reports & resources

Portal established, some resources uploaded, and updated on an on-going basis

Communications, KM, Technical Leads

Distillation of key facts and figures related to SATIH work

Updated on an on-going basis. To be integrated into quarterly reporting process

Communications, KM, M&E

KM Reports commissioned On-going basis KM, Technical Leads

Annual Knowledge Management Workshop

August annually Trade and Investment Hub staff and partners

Roles and Responsibilities The Knowledge Management/Monitoring & Evaluation Manager will spearhead Knowledge Management at the Trade and Investment Hub. The KM will work closely with


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the Communications Manager and Communications Specialist to produce and publish documents on the Knowledge Portal. Both technical and operational staff will contribute to internal knowledge sharing. 5.3 Evaluating Success

Expected Result Intermediate Result Means of Verification

Strengthened knowledge-sharing and learning processes within, and through SATIH

KM portal for relevant reports & resources established and used

• Relevant reports uploaded regularly • Site analytics show KM site visited and reports

downloaded by visitors

Distillation of key facts and figures related to SATIH work created and distributed

• Digestible KM facts + figures distributed to stakeholders

• Digestible KM facts + figures included in quarterly reports

• Digestible KM facts + figures downloaded from KM portal

• Digestible KM facts + figures used in staff presentations

KM Reports commissioned • Gaps in knowledge identified and KM reports undertaken or out-sourced to fill knowledge gaps

• KM Reports used and cited in decision making at SATIH

Annual Knowledge Management Workshop

• Event held • SATIH staff and stakeholders actively participate • Key learnings from event influence planning for

future of SATIH


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6. PMEP Plan, Indicator Table & Target Results

6.1 Context and Overview

Twelve key performance indicators will be used to measure progress towards targeted USAID Development Objectives (DOs) and Intermediate Results (IRs), identify shortcomings in project activities, inform decisions to adjust course, and facilitate communication of results to USAID, counterparts, and other stakeholders. The Trade and Investment Hub will rely upon systematic collection, analysis and reporting of information (quantitative and qualitative). Information generated from the M&E system will allow project managers to make informed decisions on the overall management and performance of the project, and provide a rationale for any needed changes in project implementation and/or design.

In determining appropriate project indicators, the Trade and Investment Hub M&E team, in consultation with USAID, program staff and management, has considered three key documents: The Trade and Investment Hub contract, ACTE’s PMP and finally, the FtF indicator list. Every effort has been made to consolidate indicators through appropriate disaggregation where appropriate, and keep the number of indicators to a minimum, while maintaining a robust set of multi-level indicators, appropriate for making management decisions and reporting on project progress.

Additional information on the Trade and Investment Hub’s M&E, as well as definitions for project indicators, can be found in the Trade and Investment Hub PMEP Plan.

6.2 Baseline Assessment and Establishment of Targets The project will utilize both primary and secondary sources for a baseline assessment to illustrate the situation, as it relates to the Trade and Investment Hub in the SADC region, prior to project implementation. The Trade and Investment Hub partner Genesis Analytics and Ikapa Data will undertake the baseline assessment, with oversight and guidance from the Trade and Investment Hub M&E and technical teams. This process will begin in late February 2017 and will be completed in July 2017.

The baseline assessment will focus on eight of the eight Trade and Investment Hub countries (Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, and Zambia). Companies, buyers, government partners, associations, investors and banks will be surveyed to understand the current landscape. In addition, the Trade and Investment Hub’s Enabling Environment & Trade Facilitation team will undertake a baseline assessment to determine current baseline values for the time and cost to trade goods across borders and along corridors (indicators 4 and 5). Once the baseline values


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have been determined, annual and life of project (LOP) will be established for these two indicators.

Based on implementation plans, annual targets have been established in conjunction with Trade and Investment Hub management and technical staff, taking into account plans for implementation of Trade and Investment Hub activities and objectives. These targets will be reviewed annually per USAID standard procedures


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Performance Monitoring and Evaluation Indicators Table

# Revised Indicator Output or Outcome

Relevant Contract Indicator

FTF Indicator Reference

Disaggregations

SATIH Project Objective: Expanded Regional and Global Trade and Investment

1

Value of exports in targeted non-agricultural and agricultural commodities from hub-supported firms/entities/associations

Outcome 31 Modified FTF 4.5.2-36/EG 3.2-23

Country, Sector/Ag vs. Non-ag vs. Service; Value chain; FTF vs. non-FTF; Destination market [intra-regional, U.S., and rest of the world]; AGOA vs non-AGOA; by gender of company owner/managing director

2 Value of new private sector investment in agricultural sector or food chain leveraged by SATIH implementation

Outcome 1 4.5.5-38/EG 3.2-22

Ag vs. Non-ag vs. Service; Value Chain; FTF vs. non-FTF; by gender of company owner/managing director; operating capital vs investment capital; type of organization.

3 Value of new private sector investment in non-agricultural targeted sectors leveraged by SATIH implementation

Outcome 14 Country, Sector/value Chain; Service; type of organization; gender of company owner/managing director

4

Value of exports (both intra-regional and international) in targeted non-agricultural and agricultural commodities

Context Indicator

Context 10,19,23

Country, Sector/Value Chain

5 Foreign Trade (X+M) as a percentage of GDP

Context Indicator

Context 24 Country

Intermediate Objective # 1: Increased Competitiveness of Targeted VCs

6

Number of firms experiencing an increase in profitability or associations experiencing an increase in self-sufficiency because of SATIH interventions

Outcome 18 FTF 4.5.2-43 / EG 3.2-21

Country, Sector/Value chain (ag, FTF ag, non-ag), Type of entity (firm, CSO/NGO, other); gender of owner/manager


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7 Number of agriculture and non-agriculture full-time equivalent (FTE) jobs created with SATIH assistance

Outcome FTF 4.5-2; EG 3-9

Agriculture/Non-Agriculture/ (Agricultural totals reported with the other disaggregation to FTF 4.5-2/EG 3-9), Country; gender of job holder

Intermediate Objective #2: Improved Regional Trade and Investment Enabling Environment

8 Trading across borders ranking

Context Indicator

Context 27 By country; will be tracked via World Bank doing business ratings

IR 1: Intra-regional trade in staple foods, agricultural inputs and primary agribusiness products increased

9 Number of metric tons of grain traded through commodity exchanges/certified warehouses supported with Trade Hub assistance

Outcome 12 Sector/commodity, commodity exchanges/warehouse system, country

10 Number of certified warehouses participating in commodity exchanges and/or warehouse receipt systems with trade hub assistance

Outcome 13 Warehouse/commodity exchange system. Country.

11 m3 of installed storage capacity Outcome 4 Country. Type of organization; Sector/Value chain; Type of storage (cold/dry)

IR2: Global and Intra-regional trade in higher value products increased

12

# of for-profit non-agricultural sector private enterprises, producers’ organizations, water users’ associations, women’s groups, trade & business associations & CBOs that applied improved organizational-level technologies or management practices as a result of USG assistance

Outcome 16,40 Custom, [modified Standard FTF 4.5.2-42; EG 3.2-20]

Type of organization), Non-agricultural Sector/Value chain, ag services and non-ag services; type of technology and management practice (for reporting); gender of firm owner/Managing Director

13 # of buyer/seller linkages established in targeted non-agricultural sectors as a result of SATIH assistance.

Output 17 Country, Status of linkage: contact/discussion/deal; Agricultural value chain/Sector; Ag services, non-ag services

14 # of assisted non-agricultural sector firms/associations meeting international grades and standards to export

Outcome 21 Country, Sector/value chain, Type of organization, Type of standard/grade; ag/ag-services


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IR 1: Intra-regional trade in staple foods, inputs and basic agribusiness products increased

IR2: Global and Intra-regional trade in higher value products increased

15

# of for-profit private enterprises, producers’ organizations, water users’ associations, women’s groups, trade & business associations & CBOs that applied improved organizational-level technologies or management practices as a result of USG assistance

Outcome 8 4.5.2-42/EG 3.2-20

Type of organization (women owned, CSO, firm, etc.); Country, Sector/Value chain, Optional – type of technology and management practice (for reporting); women owned or managed; ag/ag services; Non-FTF agriculture;

16 # of buyer/seller linkages established in targeted agricultural sectors as a result of SATIH assistance.

Output 22 Country, Status of linkage: contact/discussion/deal; Agricultural value chain/Sector; Ag/Ag services

17 # of assisted agricultural sector firms/associations meeting international grades and standards to export

Outcome 20 Sector/commodity, country, type of organization; type of standard or grade; Ag/Ag services

18

Value of Loans to target enterprises/groups due to trade hub assistance.

Outcome 2,3 EG 3.2-6 Type of loan recipient: Producers; Local traders/assemblers; Wholesalers/processors; Others.

Sex of recipient: Male; Female; Joint; n/a; Country; Agriculture versus non-agriculture; Value Chain/Sector; Service (ag, non-ag)

19 Number of food security private enterprises, POs, WUAs, women’s groups, trade and business associations & CBOs receiving USG assistance

Output 6 FTF-EG 3.2-4 Type of organization; New/Continuing; Country; Value Chain; Assistance type [access to loans, meeting standards, making linkages, etc.; Service; Gender of owner/Managing Director

20 Number of PPPs formed with hub assistance Output 11(FTF) FTF- EG 3.2-5 Type of Partnership/focus; Country; Value Chain/Sector (FTF,

non-FTF AG, non-AG); Gender of owner/MD; type of organization

IR 3: Regional and multi-lateral trade and investment agreements and support institutions strengthened

21

Number of enabling environment policies analyzed, consulted on, drafted or revised, approved and implemented with USG assistance

Outcome 35,36, 39 FTF 4.5.1-24 – EG 3.1-12

Policy area; Country/Regional Entity; Sector: Agriculture and nutrition – for FTF 4.5.1-24; EG 3.1-12 reporting, Non-agriculture, non-nutrition – for the remaining reporting; Process/Step; gender inclusivity


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22 Number of organizations assisted to reduce Non-Tariff Barrier (NTB), which are relevant to the SADC region,

Output Country, Type of NTB, Type of organization

IR 4: Trade and transportation facilitation measures implemented

23 Time required to trade goods across borders and along corridors as a result of Trade Hub assistance

Outcome 25, 30,32, 34 Process; Country; imports/exports; sector/value chain;

corridor; corridor interval

24 Cost to trade goods across borders and along corridors as a result of Trade Hub assistance

Outcome 26,33 Country; imports; exports; value chain; corridor interval; type of cost

25 Time to export and to import along corridors

Context Indicator

Context 28 Corridor

26 Cost to export and to import along corridors

Context Indicator

Context 29 Corridor,

Cross-Cutting Indicators (all IRs)

27 Person hours of USG-supported training completed in trade and investment

Output 5, 37, 38 FTF-EG 3.2-1 Gender, training type; type of individual; sector/commodity (FtF, non-FTF ag; non-ag), disaggregation to include trade and investment enabling environment trainings


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7. Hub/Southern Africa Development Community Implementation Plan

Southern Africa Trade and Investment Hub activities align with the SADC RISDP

The over-arching objective of the Trade and Investment Hub is increasing opportunities to trade and invest with the ultimate objective of poverty eradication.

Specific Objectives are:

Enhancing food security and increased incomes Increased regional, international exports and financing Improved efficiency and reliability of business environment and trade and Strengthening strategic partnerships

These objectives align with the core objectives of SADC as guided by the SADC Treaty and the Regional Indicative Strategic Development Plan (RISDP) as set out in 2003 and as revised in 2015 and applicable for the period 2015 – 2020.

The purpose of the Revised RISDP being to deepen regional integration in the SADC region and to provide SADC Member States with a consistent and comprehensive program of medium-term economic and social policies. It also provides the Secretariat and other SADC institutions with a clear view of SADC's approved economic and social policies and priorities.

Whilst the RISDP broadly focuses on the four pillars of:

Pillar A: Industrial Development & Market Integration

Pillar B: Infrastructure in support of regional integration

Pillar C: Peace and security cooperation

Pillar D: Special programs of regional dimension

The Southern African Trade and Investment Hub notes the special importance placed on the Industrialization Strategy, which has been front-loaded in the Revised RISDP and will focus mainly on Pillar A Industrial Development & Market Integration. The Hub will pursue a market-driven strategy with a bias towards the Private Sector interventions, the overall objective being to improve the environment for doing business in the region as well as to ensure effective policy and institutional mechanisms and stronger private sector performance in response to policy changes. The emphasis will be on productive competitiveness and supply side capacity through the promotion of regional value chains and increased value addition for agricultural and non-agricultural products and market access, trade facilitation and financial back up systems on the back of policy and institutional framework for private sector involvement. The stimulation of business activity through a combination of interventions will be the primary focus. Within the context of the Trade and Investment Hub interventions, activities will dovetail with priorities as defined within SADC short and medium term plans. As extracted from the Industrial Development and Market Integration of the RISDP the Trade and Investment Hub will support initiatives and activities through the following activities (see attached matrix for elaboration).


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Export Competitiveness AGOA market access facility – this will form the foundation of support to private sector

access to markets and export capabilities that will allow companies to reach any regional and international markets. Business to business meetings will be facilitated as well as capacity building to meeting international standards.

Enabling Environment and Trade Facilitation Non-Tariff Barriers (NTBs) – resolution platform support [advocacy & focal points] Facilitate participation in tripartite and CFTA initiatives Coordinated Border Management (CBM) Corridor and logistics Management Simplified cross border trading regime developed and implemented

Agricultural Trade & Agribusiness

Value chain development, financing and management Information platforms for agricultural input supplies and outputs Marketing process facilitation [Warehouse Receipt Systems] Strengthening compliance with sanitary and phytosanitary (SPS), and food safety

measures; Reducing post-harvest losses for agricultural products Analysis and mapping of Value Chains

Finance and Investment Structured finance

o Warehouse Receipt System o Cash-backed financing arrangements

Regional Action Programme on Investment. o Regional Policy domestication through National Action Plans on Investment

Implementation of the Regional Agricultural Policy Regional Agricultural Investment Plan

Private Sector Support Organization’s institutional capacity building Establish partnerships and collaboration with key stakeholders


Page 130

Implementation Table

Hub Component Area SADC Component Area Activities

Export Competitiveness RISDP Pillar A AGOA Market Access:

• Business to business meetings • Public sector consultations • National AGOA strategies formulation • National AGOA action plans

Enabling Environment and Trade Facilitation RISDP Pillar A Non-Tariff Barriers (NTBs) – resolution platform support [advocacy & focal points]

Facilitate participation in tripartite and CFTA initiatives

Coordinated Border Management (CBM)

Corridor and logistics Management

Simplified cross border trading regime developed and implemented

Agriculture Trade and Agribusiness RISDP Pillar A Value chain development, financing and management

Information platforms for agricultural input supplies and outputs

Marketing process facilitation [Warehouse Receipt Systems]

Strengthening compliance with sanitary and phytosanitary (SPS), and food safety measures;

Reducing post-harvest losses for agricultural products

Analysis and mapping of Value Chains


131 | P a g e

Hub Component Area SADC Component Area Activities

Finance and Investment RISDP Pillar A Structured finance:

- Warehouse Receipt System - Cash-backed financing arrangements

Regional Action Programme on Investment

- Regional Policy domestication through National Action Plans on Investment


132 | P a g e

Annex 1: Organizational Chart The following pages present an organizational chart of the Southern Africa Trade and Investment Hub.

LEGEND

= Technical Team

=Operations Team

= Under recruitment; On hold for now

= Comms/ M&E Team

Chief of PartyVanessa Adams

Deputy Chief of Party

Malvern Rusike

(Botswana office Director)

Director of Strategic Communications

Joe Lamport

Financial Management and

Operations DirectorRekha Lal

Team detailed on following pages

Agribusiness Trade Director

TshililoRamabulana

Finance and Investment

DirectorTerry Wyer


Trade Facilitation DirectorJulie Leaf

Export Competitiveness

Director

TBD





USAID Southern Africa Trade & Investment Hub

Senior Management Team

Strategic Partnerships

Fund ManagerLouise Hogan


USAID Southern Africa Trade & Investment HubTechnical Team

Finance and Investment Director

Terry Wyer

Enabling Environment & Trade Facilitation Director

Julie Leaf

Export Competitiveness Director

SADC Agribusiness Planning Coordinator Martin Muchero (Botswana)

Agricultural Trade Specialist TBD

Agribusiness Trade Specialist Nathan Leibel

Agbiz Specialist Tinashe Kapuya

Agribusiness Trade & Financing Advisor TBD

Warehousing, Commodities Exchange Andre Van Vyer STTA

Finance and Investment Advisor

Akona Nakani

Value Chain Integration Specialist Fred Levitan

SPS Measures Specialist Chiluba Mwape (Zambia)

Trade Facilitation Specialist Magdeline Mabua (Botswana )

Trade Facilitation Specialist Temwa Gondwe (Zambia)

Value Chain Logistics Specialist STTAIan Hunt (Botswana)

Customs/CBM Specialist Stuart Millen STTA

TF/EE Specialist TBD

Transport EconomistSTTA

Investment Facilitation Team

(Johannesburg)

Performance-based subcontract

Textiles, and Apparel Specialist Sim Dube

Trade SpecialistCosmos Mamhunze

Export Promotion & Business Linkages Penny Ndlela, Lisa Ku STTA

Apparel STTA AGOA/Export

CompetivenessStrategies STTA (George Makore, Emilio, Shannon)

Processed Foods Specialists STTA(Christian Dahm and Mark Washburn)

Financial Services Advisor (Palladium

Cost-Share)(Malawi)

DFI and Business Planning

Adam Gross STTA


Gender & Food & Trade(US WOSB subcontract)

Deputy Chief of PartyMalvern Rusike

(Botswana office Director)

Agribusiness Trade Director

Tshililo Ramabulana

USAID Southern Africa Trade & Investment HubCommunications, Knowledge Management, M&E Team; Operations Team; and Strategic Partnership Fund Team

Director of Strategic

CommunicationsJoe Lamport

Knowledge Management/ M&E Manager

Gayle Kasere

Strategic Communications

AdvisorTBD

M&E & Trade Analyst

TBD

Communications Coordinator

Khensane Hlongwane

Graphics Designer and Web

Management Specialists STTA

Genesis E4D Team;

Globaltracksubcontracts baseline

M&E SurveysIkapadata

subcontract

Financial Management and

Operations DirectorRekha Lal


Finance ManagerEmmah Mahume

Operations Manager

Sediba Majinda(Botswana)

AccountantKudakwashe

Nyakunu

Procurement and Logistics Specialist

Bogadi Matsetse(Botswana)

AccountantKagoetsile Motlokwa

(Botswana)

Events/Logistics CoordinatorDoreen Sedibe

Administrative Assistant/

ReceptionistMonica Ramushu

Drivers x 2TBD

IT OfficerNathi Mbandazayo

Grants and Subcontracts

OfficerMiriam Mphuthi

Grants, Subcontracts, and

Procurement Specialist

TBD

Strategic Partnerships Fund

ManagerLouise Hogan

Human Resources Specialist

Vivien Bakainaga

LEGEND

Key Personnel

Operations Team

Communications/M&E Team

Technical Team

Office AdministratorGrace Mapanga

Senior Procurement

ManagerTBC

Annex 2: Strategic Partnership Tables

Strategic Partnership Tables Agribusiness Trade

Partner Key Areas of Collaboration Expected Outcomes

Zambia Agricultural Commodity Exchange (ZAMACE)

Support development of regional structured trade system for grains in FTF countries to improve market access for smallholder farmers and small agriculture firms

• ZAMACE has set its standards against the benchmark of the South African Futures Exchange (SAFEX) and therefore offers valuable lessons for regional commodity exchanges, particularly in the FtF countries of Malawi and Mozambique

• Provision of off-take agreements to warehouse receipt holders will facilitate the growth and further development of the warehouse receipt industry

Southern Africa Grain Council

Support development of regional structured trade system for grains in FtF countries to improve market access for smallholder farmers and small agriculture firms Will be responsible for certifying warehouses, developing partnerships with national farmer unions, grain millers, and traders to aggregate smallholder farmer surpluses and transparent market prices, developing partnerships with banks for collateralized lending to farmers to purchase agricultural inputs from agro-dealers, and collating and making available regional grain trade information within SADC.

• Modelled on the successful East Africa Grain council, the Southern Africa Grain council will look to address the following issues in the SADC region:

o poor information flow, o poor produce standards, o inadequate infrastructure, o lack of access to finance o the unpredictable policy environment,

Zambia Seed Traders Association

Strengthen trade and farmer associations and partnerships for financial, information, extension, and other agricultural services.

• ZASTA worked with SATH in the area of harmonized seed regulations and measures in the SADC Region. SATIH will coordinate with ZASTA and the USAID SeedTrade programme to strengthen the capacity of SADC member states to comply with harmonized seed regulations approved by SADC member states in 2013

• This will ensure more varieties become available for smallholder farmers across borders in an efficient and transparent manner.


Southern African Confederation of Agricultural Unions (SACAU)

Strengthen trade and farmer associations and partnerships for financial, information, extension, and other agricultural services Support regional coordination of farmers associations; work with national associations to standardize processes. Promote agricultural policy/trade in food staples across SADC/EAC

• SACAU is recognized by SADC as their partner on matters relating to agricultural development in the southern African region. As such, SATIH will leverage SACAU’s “convening power” to do the following:

o SACAU has a network of farmers’ unions in all SADC countries which can be accessed by SATIH. This will provide value for money as opposed to dealing with individual associations on a regular basis

o SACAU has the capacity to manage a regional market information system

o All policies from the SADC region to global level are managed through SACAU

Farmers Union of Malawi (FUM)

Strengthen trade and farmer associations and partnerships for financial, information, extension, and other agricultural services Integrate commercial and smallholder farmer approaches to grain production and marketing; develop national training manuals

• Disseminate regional standards requirements to farmers to facilitate greater movement of seed and staples across the SADC region

National Union of Farmers in Mozambique (UNAC)

Strengthen trade and farmer associations and partnerships for financial, information, extension, and other agricultural services

• Disseminate regional standards requirements to farmers to facilitate greater movement of seed and staples across the SADC region

Disseminate information on use and application of new hybrid seed varieties and coordination with regional farmer groups, like SACAU

South African National Seed Organization (SANSOR)

Strengthen trade and farmer associations and partnerships for financial, information, extension, and other agricultural services Advance seed certification and establish a regional seed information platform

• SANSOR will be a source of valuable information and lessons to assist other countries in the region to establish/further develop their seed testing and certification capacity

• SATIH will build on the work of SATH to facilitate the development of a regional information sharing platform

• SATIH will facilitate learning exchanges between SADC countries certification bodies and SANSOR as a way of sharing lessons and tried and tested methods

South African Grain and Oilseed Traders Association (SAGOTA) South African Cereals and Oilseeds Trade Association (SACOTA)


Establish certified warehouses, commercial joint ventures, and harmonized standards across the SADC

• SACOTA and SAGOTA have well-established databases of private sector partners with whom SATIH can work through the SPGs


National Instruments Pretoria


Works with Original Equipment Manufacturers in food processing, controls/robotics for textiles and many forms of manufacturing

SAFEX Strengthen trade and farmer associations and partnerships for financial, information, extension, and other agricultural services Structure regional grain trade and provide technical assistance on establishment of the SAGC, forward contracts, and linking commodity exchanges

• ZAMACE works with SAFEX to align its standards and therefore provides a template for regional standardisation of commodity exchanges and warehouse receipt systems.

Local supermarket chains: Pick n Pay, Shoprite, and Massmart

Upgrade value chains with export potential to increase AGOA exports and regional and global trade. We will do a survey to determine their standards/ requirements to assist SMEs in working with them

• We will build on our existing partnerships with Massmart and Pick n pay to identify export potential product lines

• There is a recently concluded DFID benchmarking exercise covering South Africa, Kenya Ethiopia and Zimbabwe to assess the requirements for exports into European markets. These results will form a baseline of SATIH assessment of AGOA readiness by retail chains in the region

South African Grain Laboratory (SAGL)

Support seed trade under SADC Harmonized Seed Agreement and other ongoing initiatives.

• SATIH will support improved standards and quality in agricultural value chains through an SPG with SAGL for regional laboratory staff to be trained in South Africa

ACTIF (African Cotton & Textile Industry Federation)

Upgrade value chains with export potential to increase AGOA exports and regional and global trade. Help firms that are part of the CTA value chain improve firm-level productivity through benchmarking against global peers to meet quality requirements (including grades and standards), adopt technology, and adopt manufacturing processes and equipment.

Southern African Development Community

Train SADCSTAN and member states on good regulatory practices (GRPs).

Cooperation in Standardizatio n (SADCSTAN)

South African Bureau of Standards

Support compliance with TBT agreement through NEPs

Regional Network for Agricultural Policy Research Institutes (RENAPRI)

Facilitate evidence-based public-private dialogue and M&E to help public/ private partners advance the regional integration agenda Conduct research on structured trade for food staples, aflatoxin, NTBs and standards, and various aspects of trade policy.


University of Pretoria

Support structured trade – Training and database records. Research (across all activities) Training and research has to be conducted across various activities, before during and after initiating programs.

APPSolve Maintain and develop software systems including the (1) warehouse receipt system, and (2) database

Oracle Golden Partner. Award winner together with USAID SA REGO. Operating regionally in Southern Africa

Blink Media Development and maintenance of market information system

Developed and maintain market information system for Mozambique

Banco Opportunity de Mozambique (BOM)

Financier of warehouse receipts in Mozambique

Key partner in the WR program.

Gestao de Cerealis

Mozambique local field trainer of WR, GAP, mobile, etc.

Local trainer and promotor of programs among farmers

Afgri Regional trader and warehouse owner and operator

Key partner in promoting structured trade in non-staple commodities, including grading, standards, WR, financing, cross- border trader.

ETG Regional trader and warehouse owner and operator

Key partner in promoting structured trade in non-staple commodities, including grading, standards, WR, financing, cross- border trader.

OrganiMark OrganiMark was established to participate in the development of new supply chains to meet the increasing demands of ethically conscious consumers.

OrganiMark specialises in the supply of branded natural and certified organic products. Current services are geared for the production of the following products: Honey & nuts; Herbs & spices (dehydrated); Fruit (dehydrated and pulped); Vegetables (dehydrated); Meat (fresh and processed) Edible & essential oils Natural fibres (yarn, fabric, garment)

Export Competitiveness AGOA

Organization Location & Contact

Details Name & Title Key Areas of Collaboration Thanthwe Enterprises

Ngabaghila Chatata, Managing Director & AWEP Member

• Development of the AGOA Response Strategy

• Increase exports of women traders and exporting entrepreneurs

Ministry of Industry , Trade & Tourism

Charity Musonzo, Deputy Director of Trade (Domestic Trade)


• Increase exports and investment for the country

Ministry of Industry, Trade & Tourism

Isaac Gokah, Trade Advisor, The Commonwealth Secretariat “Hub & Spokes Program”



Afrocentric Lifestyle Chikondi Michongwe



AWEP Women in Sub-Saharan African Agriculture (WASAA)

Grace Mhango, President & Chair



Malawi Investment and Trade Centre (MITC)

Clement Kumbemba, CEO



NASFAM Dyborn Chibonga, CEO



Malawi Confederation of Chambers of Commerce and Industry (MCCCI)

Chancellor Kaferapanjira, CEO




Details Name & Title Key Areas of Collaboration MCCCI Hope Chavula,

Head, Public Private Dialogue



African Habitat Grazia Bargellini, Director




RAB Group, Rab Processors

Sai Kiran Josyabhatla, Managing Director



Malawi Bureau of Standards

Fred E Sikwese, Director, Standards Development



• Improve SPS and quality standards as well as accreditation of food testing laboratory

CAPS Ltd Group of Companies (Universal Industries Limited)

Mr. Riaz Kasmani, Group Chairman,


• Increase exports and for the country

Cotton Ginners Africa

Abdul Rehman , Managing Director



Nali Group of Companies

Monica Khoromana-Unyolo, Managing Director



Tea Association of Malawi

F. Mwenibabu • Development of the AGOA Response Strategy


Zambeef/ Zamleather

Mr. Murray Moore, General Manager – Perishables (Meat and Dairy)



Zambia Customs and Forwarding Agents Association (ZAMACE)

Jacob Mwale, Executive Director

• Development of the AGOA Response Strategy & Action Plan



Details Name & Title Key Areas of Collaboration Zambia National Farmers Union (ZNFU)

Mr. Humphrey Katotoka, Senior Economist for Trade and Policy



Zambia Crocodile Farmers Association

Suresh Desai, President



Jewel of Africa

Raj Sharma, CEO


Zambia Development Agency (ZDA)

Albert Halwampa, Manager of Export Development


Zambia Federation of Creative and Value Added Industries

Joseph B. Kota, Chairman


Zambia Bureau of Standards (ZABS)

Margaret Lwenje Lungu, Deputy Director – Technical Services



• Improve SPS and quality standards as well as accreditation of food testing laboratory

Zambian Association of Manufacturers (ZAM)

Lewis Chimfwembe, Acting CEO



Sylva Foods Solutions

Sylvia Banda, Managing Director (also President of AWEP’s Pan-Africa Body)



Ministry of Commerce, Trade, and Industry (MCTI)

Lina Mutandwa, AGOA Desk Officer


Coffee Growers Association of Zambia/Marika Coffee

Teija Lublinkhof, Managing Director of Coffee Growers Association Owner, Marika’s Coffee and Roastery

• AGOA Response Strategy & Action Plan

• Increase exports for the country

Zambia Honey Council (ZHC)

MacDonald Kayuna




Details Name & Title Key Areas of Collaboration Grain Traders Association

Mr. Yotam Mkandawire, Program Manager



Zambia Customs and Forwarding Agents Association (ZCFAA)

Gideon Phiri, CEO



Indaba Agricultural Policy Research Institute

Brian Chisanga, Research Associate



Forest Fruits Daniel Ball,

Managing Director



Lamoz Fashions, Ltd.

Belita Phiri-de la Court, Managing Director and Designer



Moleskin Textiles

Brijesh Patel, Director



Specialty Foods Organization Contact & Designation City

/Country Tel/Cell Email & Website

Western Cape Fine Food Initiative (WCFFI) /Food SA

Nazeem Sterras | Chief Executive

Cape Town, SA

Malawi Investment and Trade Centre (MITC)

Clement Kumbemba, CEO Grandford Banda, Trade & Dev. Facilitation Manager

Lilongwe 3, Malawi

Namibia International Trade Directorate

Benjamin Katjipuka Windhoek, Namibia

Swaziland Investment

Phumelele Dlamini, CEO Mbabane, Swaziland

Organization Contact & Designation City /Country

Tel/Cell Email & Website

Promotion Authority (SIPA) Zambia Development Agency (ZDA)

Lusaka, Zambia

Specialty Food Association, Inc

Louise Kramer

Wesgro

Jason Bell | Senior Manager Che Smith | Manager- Asia & ME

Cape Town, SA

the DTI Stefanus Botes Dir: Export Development

Pretoria

SA Fruit & Vegetable Canners' Export Council (SAFVCEC)

Jill Atwood-Palm | General Manager

Paarl, Cape Town, SA

Various Export-ready companies Food Safety Network

Donna Crockart & Linda Jackson

Food & Bev. Reporter /Dev. Technology

Teigue Payne /Marlene Miles

Johannesburg, SA

USAID EATIH Finn Holm-Olsen | Export Competitiveness Director Fred Kong’ong’o | Market Linkage Specialist

Nairobi, Kenya

PhytoTrade Africa

Arthur Stevens | CEO London, UK

Global Shea Alliance

Joe Funt, Managing Director

Accra, Ghana

Natural Products Expo East

Michelle Spann | Sales Manager (AMEE)

USA

Cashew Organization Contact &

Designation City/Country Tel/Cell Email & Website

International Nut and Dried Fruit Council (INC)

Carrer de la Fruita Seca, 4 Polígon Tecnoparc 43204 Reus (Spain)

Spain

World Cashew Convention

Ms Swapna and Vinayak Meharwade

India

African Cashew Alliance

Sunil Dahiya, Chief Business Officer

Accra, Ghana

Incaju Mozambique (Cashew Association)

Ms Filomena National Director

Maputo, Mozambique

Western Cashew Industries Ltd

Moses Shimbilimbili

Western Province, Zambia

ETG Tristan Guillermo Machado

Mozambique

Olam MD Ramesh Pan Africa

Accessories Organization Location Name & Title Key Areas of

Collaboration Expected Outcomes

Accessories Council USA Marketing, design and quality

TA for 5 firms. B2B linkages. Improved design and quality. Partnership with a brand.

Botswana Craft Marketing

Gaborone, Botswana

Oliver Groth, Managing Director

Compliance and marketing.

Increase in exports

Craft Council of Botswana

Gaborone, Botswana

Barret Annig, Manager

Production coordination and quality.

Increase in quality and production

Namibia Craft Centre Windhoek, Namibia

Shareen Thude, Manager

Production and marketing.

Increase in exports, quality and production.

Organization Location Name & Title Key Areas of Collaboration

Expected Outcomes

World Crafts Council AISBL

Beijing, China Ms. Chen Jing, Secretary-general

Marketing and sales. Technical assistance.

TA on upgrading the VC. B2B, increased exports.

Swaziland Fair Trade (SWIFT)

Mbabane, Swaziland

Julie Nixon, Country Manager

Marketing and quality control.

Increased exports, business strengthening

African Women’s Entrepreneurship Program (AWEP) and all the country chapters

USA

Malawi

South Africa

Zambia

DC

Malawi: Ms. Grace Mijiga Mhango

Mentorship, technical assistance.

Strengthening of business plans, increased exports from women-owned companies, technical assistance for women.

Source Africa Cape Town, South Africa

Trade shows, branding, marketing.

Cost-sharing partnerships, increased awareness of regional accessories and footwear, TA in business management, quality control, etc.

SAFLEC Durban, South Africa

Nerisha X, Executive Director

Policy, trade shows, marketing.

Cost-sharing partnerships, increase in exports

LNDC Maseru, Lesotho

Ms. Mapitso Marina Bizabani,

Policy, marketing. Awareness of country profile, increase in exports, investment to upgrade potential VCs

Zambia Development Agency

Lusaka, Zambia

Export Team Policy, investment, production, marketing.

Investment in upgrading potential VC sectors, partnership to build associations and export consortium.

DTI Pretoria, South Africa

Paul Pieterse, Deputy Director Export Promotion

Policy, investment, production, marketing.

Partnerships for trade shows to increase exports

Global Goods NYC, USA Joan Shifren, Founder

Marketing B2B linkages, increase in exports to the US, region visibility

Apparel

Organization

Location Name & Title Key Areas of Collaboration

Expected Outcomes

Business Women’s Association of South Africa

JohannesburgSouth Africa

Matshepo Msibi, Executive Director

Increase exports of women exporting entrepreneurs

15 Women Export-ready entrepreneurs export international markets

Botswana Textiles & Clothing Association

Gaborone, Botswana

Botswana Investment & Trade Centre (BITC)

Gaborone

Reitumetse Aphiri Executive Director- Investment Promotion

Lesotho National Development Corporation (LNDC)

Lesotho

Marina Bizabani Foreign Investment Promotion Manager

Lesotho Textile Exporter’s Association (LTEA) Lesotho Johnny Lin | Executive

Secretary

Lesotho Industrial Employers Association Lesotho John Lyon | Chairman

Swaziland Investment Promotion Authority (SIPA) Swaziland Phumelele Dlamimi |

CEO

Zambia Association of Manufacturers (ZAM)

Lusaka, Zambia

Zimbabwe Clothing Manufacturers Association

Zimbabwe Thandiwe Chingonzo | Secretary

ZimTrade

Harare, Zimbabwe

Vuyiswa Mafu | Market Advisor

Mozambique Institute of Cotton

Maputo, Mozambique

Norberto Mahalambe | Director

Ministry of Industry & Trade

Lilongwe, Malawi

Christina Chatima Dep. Director- Foreign Trade

Apparel Manufacturers of South Africa (AMSA) South Africa Johann Baard |

Executive Director

National Clothing Retail Federation (NCRF SA) South Africa Michael Lawrence |

Executive Director

SA Household Textiles Manufacturers Assn

Western Cape

Nick Steen

SA Textile Industry Export Council (SATIEC) South Africa

Martin Viljoen | Chief Executive

Textile Federation of South Africa (TexFed)

South Africa

Brian Brink | Executive Director Ralph Roytowski | President

Organization

Location Name & Title Key Areas of Collaboration

Expected Outcomes

SA Department of Trade and Industry (DTI) Pretoria, SA

Abisha Tembo Chief Director (Textiles, Clothing, Leather and Footwear Business Unit)

Collaboration on Trade Promotion Strategy, international visibility of the targeted sectors.

B&M Analysts Durban, SA

Collaborate on expanding the adoption of best practices from the apparel cluster

MAGIC, WWD USA Bob Berg

Leverage the huge visibility of this international marketing event

Trade & Investment KZN Durban, SA

Finance Organization Location Name & Title Key Areas of


Emerging Markets Private Equity Association (EMPEA)

USA Robert W. van Zwieten, CEO

Industry Association – research and opportunity sourcing

Will be a key source for engaging investors and for market research.

African Private Equity & Venture Capital Association (AVCA)

UK Michelle Kathryn Essomé, CEO



Southern Africa Venture Capital & Private Equity Association (SAVCA)

South Africa Erika van der Merwe, CEO



Aspen Network for Development Entrepreneurs (ANDE)

USA Lisa Van Eck, South Africa Regional Chapter Coordinator


Will be a key source for identifying investment opportunities and for market research.

World Economic Forum

Switzerland Elsie Kanza, Head of Africa


A supportive platform for identifying investors, engaging key stakeholders, and for compiling economic research.

USAID Office of Private Capital and Microenterprise

USA David Cohen, Deputy Director

US Government Partner – Collaboration on investment facilitation activity

A critical USAID partner for the delivery of transaction-centered development strategies. Will serve as a channel for collaborating with parallel USAID initiatives.

USAID Development Credit Authority

USA Romi Bhatia, Team Lead/Sr. Investment Officer for Africa Region

US Government Partner – Collaboration on DCA utilization efforts

Provides access to DCA partner banks that may serve as lead investors or co-investors into transactions in the region.

Carlyle USA Bruce Steen, Director

Potential investor / beneficiary

A potential recipient of transaction support and a potential investor for investments identified by the Team.

Abraaj UAE Arif Naqvi, Group Chief Executive



Kibo Mauritius / Kenya

Josep Oriol, Managing Partner


A potential recipient of transaction support and a potential investor for

Organization Location Name & Title Key Areas of Collaboration Expected Outcomes

investments identified by the Team.

Musa Capital South Africa Richard Akwei, Executive Director



AgDevCo UK/Malawi/ Zambia/ Mozambique

Jim Henderson, Associate Director


A potential recipient of transaction support and a potential investor for investments identified by the Team. May also be a recipient of fundraising support.

Emerging Capital Partners

South Africa Bryce Fort, Managing Director



OPIC USA Bruce Cameron, SME Finance Manager



IFC USA / South Africa



FMO Netherlands Alison Klein, Private Equity Manager



BIO Belgium Luuk Zonneveld, CEO



CDC UK Daudi Lelijveld, Fund Manager



SADC-DFRC Botswana Stuart Kufeni Potential partner in DFI capacity building

Seeking to take advantage of SADC-DFRCs knowledge of the institutions we would want to engage as well as identification of low hanging fruits.


African Development Bank (AfDB)

Zambia Damoni Kitabire Resident Representative

Potential Partner in SME funding & guarantee schemes

Joint funding on SME support programs

Botswana Investment & Trade Centre (BITC)

Botswana Meshack Tshekedi National Action Plan on Investment development

Implementation of the National Action Plans on Investment

Zambia Development Agency

Zambia Matongo Matamwandi Director - Investments

National Action Plan on Investment development

Implementation of the National Action Plans on Investment

Enabling Environment & Trade Facilitation Organization Location Name & Title Key Areas of


Regional Partners SADC Trade Related Facility (TRF) Programme

Gaborone, Botswana

Mr. Charles Chaitezvi, Coordinator/Team Leader Fudzai Pamachehe, Key Expert – EPA.

Share information and updates on priority trade facilitation projects for SADC and gaps in terms of resources in the SADC Secretariat and Member States.

TA to implement trade facilitation projects of mutual goals

SADC Gaborone, Botswana

Mr. Lovemore Bingandadi Program Manager /Technical Adviser TTTFP Ms. Mapaolao Rosemary Mokoena; Senior Programme Manager, Transport, Infrastructure and Services Directorate Sadwick Mtonakhuta, Acting Director, TIFI Mr. Alcides Monteiro, Acting Senior Programme Officer, Customs, TIFI Dr. Lomkhosi Mkhonta-Gama, Senior Programme Officer, SQAM

Share methodologies, data and key corridor management and transport technologies and resources

Introduction to various stakeholders within the context t of Transport and Corridor Management

SACU

Windhoek, Namibia

Ms Maggie Tladi Ngoanamokgotho, Deputy Director, Trade Facilitation

Implementation of Trade facilitation measures

TA support in Time release studies along the Trans Kalahari Corridor

COMESA Zambia

Dr Francis Mangeni, Director, Trade, Customs & Monetary Affairs Mr John Chirwa, Simplified Trade Regime Expert Ms. Racheal Kemigisha, Trade Advisor

Share methodologies, data, information and key trade facilitation strategies in Zambia

Collaboration Networking to achieve mutual goals


Commonwealth Hub and Spokes II Project Dr. Mukayi, Musarurwa, SQAM/TBT Consultant

Public Sector Partners Botswana Unified Revenue Service (BURS)

Gaborone, Botswana

Mr. Phodiso P. Valashia, Commissioner of Customs & Excise Mr. Molemi Pule, General Manager, Technical Services, Customs & Excise Mr. Gofaone Gabositwe, Principal Customs Officer, External Relations & Trade Facilitation, Customs & Excise Mrs. Alice S. Kolagano, Customs Manager, External Relations and Trade Facilitation

Review of customs legislations and implementation of National Single window

Amended Customs legislation and regulations and technical assistance in implementation of trade facilitation tools

Botswana Bureau of Standards (BOBS)

Gaborone, Botswana

Mr. Theko Fako, Deputy Managing Director. Mrs. Keolebogile Segomelo, Director Standards. Tebogo S. Kajane, Manager – Laboratory services (Industrial Metrology).

Issues on Standards in trade expansion, private sector motivation to advocate for better alignment of SPS and TBT issues in Botswana and the region

Potential TA in Risk management, legal framework and policy to be aligned with national and regional SQAM policies and other TA support requested.

Ministry of Trade and Industry (MTI)

Maseru, Lesotho

Mrs. Maria Pearl Ncholu, Deputy Director of Trade Ms. Karabo Mosala, Principal Standards Officer Ms. Motheba Malibeng, Chief Trade Development Officer

Share information and updates on priority trade facilitation projects for TA consideration by SATIH



Mr. Molebatsi Rabolinyane, Director of Standards and Quality Mr. Samuel Yeboah, National Trade Adviser, Commonwealth Hubs & Spokes

Lesotho Revenue Authority (LRA)

Maseru, Lesotho

Mrs. Makali Lepholisa, Commissioner Customs Mr. Tseko Nyesemane, Dep. Commissioner Customs



Malawi Revenue Authority

Blantyre, Malawi

Fatch Valeta, Commissioner, Customs and Excise Balness Mdezo, Customs International Relations

Implementation of trade facilitation tools in Malawi

Possible TA in requested areas in implementing trade facilitation tools

Malawi Bureau of Standards

Blantyre, Malawi Fred Sikwese



Ministry of Industry, Trade & Tourism

Lilongwe, Malawi

Christina Chatima; Director of Trade / EIF Focal Point Isaac Gokah, Trade Advisor, The Commonwealth Secretariat Hub & Spekes Program Charity Musonzo, Deputy Director of Trade (Domestic Trade)



Department of Agricultural Research Services

Lilongwe, Malawi David Kamangira,

Senior Deputy Director



Pesticides Control Board

Blantyre, Malawi Misheck Sokoj, Deputy

Trade Advisor



Ministry of Transport

Lilongwe, Malawi John Phiri




Ministry of Industrialization, Trade & SME Development (MITSD)

Windhoek, Namibia

Patricia Liswaniso; Deputy Director: Trade Promotion (NSW PM) Tulimeyo Kaapanda, Programme Manager, Industrial Upgrading and Modernisation Programme Lynnox Mwiya; Chief Trade Promotion Officer: Import/Export Trade Measures Lilian Mundia; Trade Promotion Officer: Import/Export Trade Measures

Implementation of trade facilitation tools in Namibia

Technical assistance in implementing trade facilitation tools

Namibia Customs & Excise

Windhoek, Namibia

Mr. Uazapi Maendo; Acting Commissioner Mrs. Thandi Hambira; Deputy Director: Central Region Mrs. Thandi Hambira; Deputy Director: Central Region Mr Erastus Shipuleni, Controller, Tariff Management and ASYCUDA Program

Implementation of trade facilitation tools in Namibia

Technical assistance in implementing trade facilitation tools

Zambia Revenue Authority

Lusaka, Zambia

Reuben Kunda, Deputy Commissioner Nkanga Shimwandwe, Deputy Commissioner, Operations Customs Service


Implementation of the Trade Information Portal and other TA requested

Ministry of Commerce, Trade and Industry (MCTI)

Lusaka, Zambia

Kayula Siame, Permanent Secretary Lilian Bwalya, Director Foreign Trade Trevor, Sichombo, Assistant Director Ms Langani Phiri, Acting Principal Economist




Ms Yvonne Zulu, Economist Ms Zungaye Phiri, Economist Mr Joe Muzyamba, Economist E.C.M Soko Deputy Director, Planning Mr Wilson Mazimba, Senior Consultant

Ministry of Finance

Lusaka, Zambia

Mukuli Chikuba, Permanent Secretary, Economic Management &Finance Ms Ireen Musonda, Director, Economic Management Mulenga Musepa, Advisor-Economic Management


Implementation of the Trade Information Portal Assessment of the Chirundu border

Zambia Bureau of Standards

Lusaka, Zambia

Ms Peggy K. Chituta, Deputy Director, Inspections Kasuba Kasengele, Senior Inspector



Smart Zambia Institute (SZI)

Lusaka, Zambia

Chisola Simasiku Kashimbi Mulongoti Ms Mirriam Katongo Ms Regina Mushabati



Ministry of Justice

Lusaka, Zambia

Abram Miti, Economic Governance



Associations American Business Council of Botswana [Botho University]

Gaborone, Botswana

Mr. Aditya Raja Ram, Executive Committee member & Treasurer Mr. Mark Spicer, Executive Committee member

Private sector collaboration for promotion of SATIH key objectives

Possible TA in requested areas


Business Botswana

Gaborone, Botswana

Lokwalo Mosienyane, President

Business environment challenges affecting exports and imports

Collaboration in addressing NTBs and implementation of trade facilitation measures of mutual interest

Lesotho Chamber of Commerce and Industry (LCCI)

Maseru, Lesotho

Mrs. Rethabile Mokabe, Business Development Manager



Lesotho Federation of Women in Business

Maseru, Lesotho

Mrs. Malineo Motsepe, Maseru District Chairperson



Malawi Confederation of Chambers of Commerce

Blantyre, Malawi

Chancellor Kaferapanjira



Freight Forwarders Association of Malawi

Blantyre, Malawi Everson, Bandawe,

Operations Director, Alliance Freight Services Limited



Road Transport Association of Malawi

Blantyre, Malawi

Mrs Chrissie Flao



Walvis Bay Corridor Group

Walvis Bay, Windhoek, Namibia

Mr. Johny Smith CEO Clive M. Smith, Project Manager, Logistics Mr. Samuel Sandi, Cluster Secretariat, Walvis Bay-Ndola-Lubumbashi Development Corridor

Share methodologies, data and key corridor and port management issues on the Western Corridors connecting the port of Walvis

Possible TA in requested areas concerning the western corridors and the port of Walvis Bay

Trans Kalahari Corridor Secretariat

Windhoek, Namibia

Mr Lesley Mpofu, Executive Director Zunaid Pochee, Marketing and

Trade facilitation measures aimed at improving efficiency of corridors

Possible TA in trade facilitation measure of interest along the Trans Kalahari Corridor.


Business Development Specialist

Maputo Corridor Logistics Program

Nelspruit, South Africa

Ms. Barbara Mommen CEO

Share methodologies, data and key corridor management issues on the Maputo Development Corridor

Insight into the effectiveness of a private sector driven lobby group with specific notation on the Maputo Corridor

American Chamber of Commerce

Zambia Ms Dailesi Njobvo, Senior Programs Manager



Zambia Customs& Forwarding Agents Association (ZCFAA)

Zambia

Gideon Phiri, CEO



Confederation of Chambers of Commerce

Zambia

Alfred Chitalu, Policy Research



Truckers Association of Zambia

Zambia

Robert Mtonga, Executive Secretary



Private Sector Air Botswana Gaborone,

Botswana Ms. Grace Thedi, Sales Manager

Private sector collaboration in logistics service provision

Possible TA in logistics service provision

Air Botswana Gaborone, Botswana

Mr. Boikanyo Ntwaagae, Business Development Managers

Private sector collaboration in logistics service provision

Possible TA in logistics service provision

FINACCO Gaborone, Botswana

Seth T. Akweshie, Group Director

Crafts, leather, traditional dress

Maseru, Lesotho

Mrs. Mamosiua Nkune Business environment challenges affecting exports and imports


LVG (Sandstone Exporter)

Maseru, Lesotho

Mr Matsoso Nthejane Business environment

Collaboration in addressing NTBs and implementation of


challenges affecting exports and imports

trade facilitation measures of mutual interest

Lesotho Mountain Crafts

Maseru, Lesotho

Mrs. Mateboho Mathibeli



Information Management Services LTD

Windhoek, Namibia

Donald Lim Fat, Advisor to Namibia NSW project

Share methodologies, data and key corridor and port management issues on the Western Corridors connecting the port of Walvis

Possible TA in requested areas concerning the western corridors and the port of Walvis Bay

Independent Consultant Zambia

Mr Mark Pearson, Independent Trade Facilitation Specialist



SAF Marine Transport Zambia Ms Patience Makoloni,

Sales Executive



ZAMACE: SAGNET Board Zambia Mariana Purnell,

SAGNET Board Chair



TUTWA Consulting Group

South Africa Catherine Grant, Director

Information sharing on trade facilitation methodologies and tools applied and past experience gained dealing with trade facilitation issues in the region

Insight into business environment challenges in the region and proposed strategies to address them.

North-West University Faculty of Engineering

South Africa Professor Alwyn J Hoffman, Head of School of School of Electrical, Electronic & Computer Engineering; North-West University

Share methodologies on different types of corridor monitoring systems

Potential collaboration on corridor management system

Woman Power Logistics South Africa Neo Mangope, Sales &

Marketing Manager

Sharing of information on transport and logistics issues

Insight into logistics issues in South Africa


within South Africa and women involvement in the sector

South African Express Parcels Association (SAEPA)

South Africa Mr. Garry Marshall; Share methodologies, data and key express transport and management issues in general

Possible capacity building and knowledge transfer through TA and sustainability through grants

NEPAD Business Foundation (NBF)

South Africa Lynette Chen; Chief Executive Officer Lesley Wentworth; Programme Manager Southern Africa Business Forum Tonderai Mazingaizo (Mr); Financial and Operations Controller

Share best practice and general information on trade facilitation issues

Possible capacity building and knowledge transfer through TA

Southern Africa Shippers Transport and Logistics Council (SASTALC)

South Africa Ms. Yayeri Kisaame; Chief Executive Officer Mr. Lebogang Letsoalo; Chairman

Share methodologies, data and key transport and logistics management issues in general


CILTSA

Johannesburg South Africa

Ms. Catherine Larkin Executive Director

Share general information on logistics and supply chain within the region

Introductions to other CILTs in the region


South Africa Mr. Garry Marshall; CEO

Share methodologies, data and key express transport and management issues in general


The South African Association of Freight Forwarders SAFF

Johannesburg South Africa

Mr. David Logan Share methodologies, data and key express transport and management issues in general


International Cooperating Partners European Union Delegation to the Republic of Botswana and SADC

Gaborone, Botswana

Ms. Mary Horvers, Attachee, Regional Cooperation Mr. Jocelin Cornet, First Secretary, Regional Cooperation

Share methodologies, data, information and key trade facilitation and corridor management technologies and resources



Ms. Mercedes Marin Nortes

GIZ Cooperation to improve economic integration in the SADC region (CESARE)

Gaborone, Botswana

Mr. Philip Madelung, Senior Economist



Embassy of Germany

Gaborone, Botswana

Ms. Jana Schlegel, Counsellor Cooperation



EU Delegation to Lesotho

Maseru, Lesotho

Mr. Jyrki Torni, First Secretary, Operations



US Embassy Maseru, Lesotho

Daniel Kobayashi, Economic and Political Affairs Officer Mr. Mofuoa Mofuoa, Economic Officer

Share information and updates on projects implemented bilaterally and identify gaps and areas of collaboration for the SATIH projects.


Land O Lakes Program

Lilongwe, Malawi Elwood Pye, Chief of

Party Boniface Msiska, Program Specialist

Share information and updates on projects implemented in Malawi and identify gaps and areas of collaboration for the SATIH projects.


World Bank

Lilongwe, Malawi

Richard Record; Senior Country Economist




USAID

Lilongwe, Malawi

Cullen Hughes; Office Director, Sustainable Economic Growth Office Lynn Schneider; Deputy Director, Sustainable Economic Growth Office Chrispin Maghombo; Agriculture Productivity Specialist



DFID Lilongwe, Malawi

Greg, Chikwanda, Private Sector Development Advisor



UNDP Lilongwe, Malawi

Cinzia Tecce, Private Sector Development Specialist



USAID Mozambique

Amanda Fong, Policy Team Leader, Agriculture, Environment and Business Office



SPEED+ Mozambique

Ashok Menon, Deputy Chief of Party Rosario Marupusse, Trade Facilitation Specialist



EU Technical Assistance for the Implementation of the Institutional Capacity Development

Windhoek, Namibia

Bill Fraser, Team Leader




Programme (ICDP)

EUD in Namibia

Windhoek, Namibia

Sonia Godinho, Programme Manager



USG Windhoek, Namibia

John Kowalski, DCM Caroline Dow, Economic and Commercial Officers



JICA/NEPAD

South Africa Eisuke Tachibana; Infrastructure Advisor Takeshi Kozu, Project Formulation Advisor

Share information and updates on trade facilitation projects implemented in South Africa and identify gaps and areas of collaboration for the SATIH projects.


Investment Climate, World Bank/IFC Zambia

Zambia Mr Peter Nuah, Project Leader



DFID Food Trade ESA Project (DAI)

Zambia Mr Daniel Njiwa, Country Representative



UNCTAD ASYCUDA Programme

Zambia Mr Miguel Fernando Siles-Bustos, Regional Coordinator



World Bank Zambia Gregory Smith, Senior Economist



AfDB Zambia

Sydney Chibbabbuka, Customs and Trade Facilitation




Peter Rasmussen, Principal Country Economist

EU Delegation Zambia

Nicholas Gerrard, Economic Advisor Joseph Silavwe, Project Manager, Regional Trade Ms Cristina Banuta, Economic Advisor



Other Regional/International Partners African Union Addis

Ababa, Ethiopia

Mr. Godwin Punungwe; Trade/Transport Facilitation Expert

Sharing of methodologies, information and data on corridor management

Benchmarking trips to the AU Participation in AU Meetings

AfDB Abidjan, Cote de I’voire

Stefan Atchia; Transport Policy Specialist (IC)

Share methodologies, data, information and key trade facilitation strategies in other regions of Africa


Dar es Salaam Corridor Committee

Dar es Salaam, Tanzania

Peter Masi; Executive Director

Sharing of methodologies, information and data on corridor management on the Dar corridor

Possible TA in requested areas concerning the Dar Corridor

World Bank Washington, USA Ankur Huria



World Bank funded Sub-Saharan Africa Transport Program (SSATP)

Nairobi, Kenya Washington DC, USA

Yaya Yedan Olivier Hartmann

Share methodologies, data and key trade facilitation and corridor management technologies and resources

Adoption of tested Corridor Management tools and Methodologies

Tripartite NTB reporting

Nairobi Kenya

Vonessai Hove, Tripartite NTBs Regional Coordinator

Tripartite Online NTBs Reporting System

Possible TA in improving the Tripartite System Framework for effectiveness

FCFASA – Federation of Clearing &

Harare, Zimbabwe

Mr. Joseph Masariri, President

Share methodologies, data and key corridor

Acquire knowledge on the various active C&F Associations and


Forwarding Associations of Southern Africa

management issues in general – collate a list of various Associations of Clearing and Freight Forwarders at national level

updated knowledge regarding issues that the freight and clearing sector are facing regionally – with possible resolutions being discussed

IFC/WBG Abidjan, Cote d’ Ivoire

Christel Annequin; Consultant



Shippers Council of Eastern Africa

Kenya Gilbert Langat; CEO Share methodologies, data, information and key trade facilitation and corridor management technologies and resources


UEMOA/JICA Burkina Faso

Takako Ishizaki; Infrastructure/Transport Advisor



WATIH Ghana Chongo Mukupa; Trade facilitation specialist



IRU Abidjan, Cote de I’voire

Habib Turki; Transport Expert



Strategic Partnership Capacity Building Organization Location Name & Title Expected Outcomes

AWEP Chapter Lilongwe, Malawi Ngala Chatata AICAJU Maputo, Mozambique AWEP Chapter Maputo, Mozambique CTA (Business Chamber) Maputo, Mozambique Tatiana Mata National Union of Farmers Mozambique (UNAC) Maputo, Mozambique AMPCM Nampula, Mozambique Morreno Co Nampula, Mozambique Walvis Bay Corridor Group Walvis Bay, Namibia Namibia Trade Forum Windhoek, Namibia

ASISA Cape Town, South Africa

Leon Campher, CEO

Savings and Investment Association Capacity Building; Best Practice Association to mentor similar organizations in other countries in region

Cape Town Fashion Council

Cape Town, South Africa Ian Stein

Apparel Council Durban, South Africa AFAP (African Fertilizer Partnership)

Johannesburg, South Africa

Bankers Association Johannesburg, South Africa Muzi Mhlambi

Business Women’s Association of South Africa


Matshepo Msibi, Executive Director

SACAU (Southern African Confederation of Agricultural Unions)


Mr. Ishmael Sunga


Johannesburg, South Africa Garry Marshall

Southern Africa Shippers and Transport Association

Johannesburg, South Africa Yayeri Kisaame

South African Association of Freight Forwarders (SAAFF)


Grain SA Pretoria, South Africa National Agricultural Marketing Council Pretoria, South Africa SAFEX - now Equity Derivatives Market under JSE

Sandton, South Africa

Lionesses of Africa Pan-Africa Melanie Hawken

Organization Location Name & Title Expected Outcomes SWIFT (Swaziland Fair Trade) Mbabane, Swaziland Julie Nixon AWEP Chapter Lusaka, Zambia Dorothy Eriksson

AWEP Pan Africa Lusaka, Zambia Sylvia Banda, Executive Director

Strategic Planning ; Strengthened Coordination throughout all Southern Africa AWEP Chapters

COMESA Business Council Lusaka, Zambia Sandra Uwera Federation of National Associations of Women in Business in Southern and Eastern Africa Lusaka, Zambia

Katherine Nyangui Ichoya, Exec Director

Grain Traders Association Lusaka, Zambia

Mr. Yotam Mkandawire

ZAMACE Lusaka, Zambia Lewis Chimfwembe

Zambia Association of Manufacturers (ZAM) Lusaka, Zambia ZNFU Lusaka, Zambia Florence Phiri

USAID Southern Africa Trade and Investment Hub FY2017 Workplan

Documents