WEST AFRICAINVESTMENT CONFERENCE Best Practices in Export Promotion Programming Vanessa Adams – Project Director, USAID West Africa Trade Hub MOEVENPICK AMBASSADOR HOTEL IN ACCRA, GHANA ● MONDAY-WEDNESDAY, 7-9 MAY 2012 www.ObjectiveCapitalConferences.com
USAID West Africa Trade HubBest Practices in Export Promotion Programming Vanessa Adams March 6, 2012
Unprecedented Growth• Between 2000 – 2010, Africa’s GDP grew by 4.7% p.a. - twice the pace of its growth in the 1980s and 1990s.• Africa’s collective GDP stands today at $1.6 trillion, or roughly equal to those of Brazil and Russia.• Africa’s Population: 1 billion; SSA: 840 million. ECOWAS 300 million. SSA to hit 2 billion by mid-century.• By 2030, SSA’s total food and beverage markets to reach $1,000 billion, up from $313 billion, currently.• The increase in food consumption and Fast Moving Consumer Goods (FMCG) will mainly occur in cities.• 40% of Africans live in cities today. By 2030, Africa will have 50 cities with a population over 1 million. Urban markets will expand 4-X in 20 years.• 600 million Africans have cell phones.• FDI - $55 B: 5X a decade ago and much more than donor aid.
Africa – the “New Frontier”• Africa, the “New Frontier”, growth rate over the past 10 years exceeds every region, except Emerging Asia.• BRICS today make up 20% of Africas trade vs 1% a generation ago. Expected to be 50% in 2030.• A growing and aspiring middle class will reach 50 million households by 2020, seeking improved selection and quality of consumer goods and food.• Similar growth will occur in the industrial sectors for inputs, intermediate goods and outputs. WILL THESE GOODS BE PRODUCED IN AFRICA OR IMPORTED?
ECOWAS Regional Trade Pales• ECOWAS’ exports continue to be dominated by minerals, petroleum and primary agriculture.• Biggest markets are USA (35.6%) and EU (28.2%) with China and Asia gaining.• 2000 - 2007 Intra-ECOWAS trade accounted for only 9.3% of ECOWAS’ total trade. Rest of Africa a scant 3.5%.• This is much less than elsewhere. For example: NAFTA – 40% Western European – 63% MERCUSOR - 20%• On average, Intra-ECOWAS exports account for only 4% of countries’ GDPs.• "The East African Community, which launched a common market in 2010, is doing well; ECOWAS less so." Source: Economist• Argument goes that a country & region cannot grow sustainably without intra-regional trade.
What’s Holding Intra-Trade Back?• High costs of doing business and trade• Non-complementarity, non-harmonization• Few differentiated goods & services.• Multiple national currencies with limited convertibility• Different currencies, languages, legal and banking systems• Unfulfilled performance of ETLS and ECOWAS Compensation Scheme• Resistance to change (governments & companies)• Dominance of Informal Cross Border Trade• Red tape, in/formal fees, delays at border crossings
People, the Planet and Profit:The triple bottom line – a marketdriven approach to development
Alliance Operates Independently: The ACA was conceived in 2005, and now operates independently. International Marketing Launched: Shea companies exhibit under the GlobalBuilding Membership: An interim Shea banner at internationalExecutive Committee was elected to trade showsrun the Borderless Alliance, and builda membership base. Preliminary network: A feasibility study on the AfricaNow! alliance was conducted, and the Hub is working with international and regional partners on building a network.
Case Study: Global Shea Alliance annual conference connectsindustry, leverages resources to drive business opportunities
Case Study: New jobs in Apparel, GhanaTechnical assistance to apparelmanufacturers and links to investorshave led to the creation of more than500 jobs in the last six months.Key Factors• AGOA – increasingawareness, technical assistance onutilization• Connecting stakeholders to leverageopportunities “I’m learning a lot of things at• Identifying international buyers at trade this job – particularly how toshows supervise employees…. I feel• Making the case for doing business in like the sky is the limit.”West Africa Helinda Tetteh, Quality Control Supervisor, 1888LuckyMills, Tema,
The market drives the connections• Collect, analyze and operationalize market intelligence International Trade Shows: Key source of market intelligence, market linkages Industry Alliances: Market intelligence, analysis of opportunities, market linkages International Brands: High visibility
Top Priority Issues for the Borderless Currency AllianceImplement AxleConvertibility load 9% Stakeholder Online Survey 11% Total Responses = 106, including Transport & Logistics Companies, ManufacturersImplement single Reduce and Donor Partners bond & ISRT Checkpoints 12% 52% Covering respondents from 21 countries, including West Simplify & Central Africa Cargo Clearance 16%
What the Trade Hub does……. Collect, analyze information Communicate Mobilize Facilitate Support Advocacy Evolution of IRTG indicators per trip - Ghana 21 19 19 Bribes (GHC) 15 15 15 13 Number of 14 controls 121 Delays (min) 107 103 84 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10
Parking area identified by Ghana Opening Ceremony of Border Customs for Express Lane Information CenterGhana-Togo officials meet on Express Lane Pilot
Borderless Alliance Secretariat USAID West Africa Trade Hub Accra, Ghana www.borderlesswa.comwww.facebook.com/borderlesswa