Objective Capital's West Africa Investment Conference 2012
Moevenpick Ambassador Hotel in Accra, Ghana
7-9 May 2012
Speaker: Vanessa Adams, USAID West Africa Trade Hub
1. WEST AFRICA
INVESTMENT 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
2. USAID West Africa Trade Hub
Best Practices in Export Promotion Programming
Vanessa Adams
March 6, 2012
3. 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.
4. 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 Africa's 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?
5. 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.
6. 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
7.
8.
9. People, the Planet and Profit:
The triple bottom line – a market
driven approach to development
15. Alliance Operates Independently: The
ACA was conceived in 2005, and now
operates independently.
International Marketing
Launched: Shea companies
exhibit under the Global
Building Membership: An interim Shea banner at international
Executive Committee was elected to trade shows
run the Borderless Alliance, and build
a 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.
16.
17. Case Study: Global Shea Alliance annual conference connects
industry, leverages resources to drive business opportunities
21. Case Study: New jobs in Apparel, Ghana
Technical assistance to apparel
manufacturers and links to investors
have led to the creation of more than
500 jobs in the last six months.
Key Factors
• AGOA – increasing
awareness, technical assistance on
utilization
• Connecting stakeholders to leverage
opportunities “I’m learning a lot of things at
• Identifying international buyers at trade this job – particularly how to
shows 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,
22. 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
35. Top Priority Issues for the Borderless
Currency
Alliance
Implement AxleConvertibility
load 9% Stakeholder Online Survey
11%
Total Responses =
106, including Transport &
Logistics
Companies, Manufacturers
Implement single Reduce and Donor Partners
bond & ISRT Checkpoints
12% 52% Covering respondents from
21 countries, including West
Simplify & Central Africa
Cargo
Clearance
16%
36. 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
37. Parking area identified by Ghana Opening Ceremony of Border
Customs for Express Lane Information Center
Ghana-Togo officials meet on Express Lane Pilot
Leveraging resources: sponsorship covered 90% of the total conference costs (background logos). Photos from top left, clockwise: Almost all shea nuts are collected by women – the conference connected stakeholders for more business. Advance promotion on Ghana’s largest TV network. The conference launched the Global Shea Alliance – with an executive committee composed mainly of women (4 of 7 slots). Communications materials advance the theme – planet, people, profit (sustainability; triple bottom line). High-level VIPs emphasize the importance of the conference. Grafting shea trees just one of dozens of training opportunities for participants.
77 (77%) including 20 (40%) women financial professionals trained9 (26%) loans made by allied banks to client ERCsMore than $2 million (100+%) loans disbursed in 4 sectors Lessons LearnedNew productsNot adapted type and level of guarantees required for lendingNeed to source the creation of guarantee facilities in support of lendingNeed to develop new products like crop insurance, warehouse financing, etc.ERCsNeed assistance in debt restructuring as well as operations financingNeed to dramatically improve accounting systemsCommercial BanksLack of knowledge and interest in the nontraditional export sectorsNeed for better knowledge transfer and internal communicationPartnershipsIFC, Root Capital, Greylock Capital, Grassroots Business Fund and Makeda Fund in the USAICCO (Dutch NGO) and Oikocredit in The NetherlandsMaking Finance Work for Africa (MFW4A) Secretariat and Funds for Africa Group of AfDB in TunisiaWest African Development Bank (BOAD), ECOWAS Bank for Investment and Development (EBID), Ecobank, BanqueAtlantique, Bank Of Africa (BOA), Attijari/ Compagniebancaire de l'Afriqueoccidentale (CBAO) in West AfricaBank of Industry and United Bank for Africa in Nigeria
77 (77%) including 20 (40%) women financial professionals trained9 (26%) loans made by allied banks to client ERCsMore than $2 million (100+%) loans disbursed in 4 sectors Lessons LearnedNew productsNot adapted type and level of guarantees required for lendingNeed to source the creation of guarantee facilities in support of lendingNeed to develop new products like crop insurance, warehouse financing, etc.ERCsNeed assistance in debt restructuring as well as operations financingNeed to dramatically improve accounting systemsCommercial BanksLack of knowledge and interest in the nontraditional export sectorsNeed for better knowledge transfer and internal communicationPartnershipsIFC, Root Capital, Greylock Capital, Grassroots Business Fund and Makeda Fund in the USAICCO (Dutch NGO) and Oikocredit in The NetherlandsMaking Finance Work for Africa (MFW4A) Secretariat and Funds for Africa Group of AfDB in TunisiaWest African Development Bank (BOAD), ECOWAS Bank for Investment and Development (EBID), Ecobank, BanqueAtlantique, Bank Of Africa (BOA), Attijari/ Compagniebancaire de l'Afriqueoccidentale (CBAO) in West AfricaBank of Industry and United Bank for Africa in Nigeria
77 (77%) including 20 (40%) women financial professionals trained9 (26%) loans made by allied banks to client ERCsMore than $2 million (100+%) loans disbursed in 4 sectors Lessons LearnedNew productsNot adapted type and level of guarantees required for lendingNeed to source the creation of guarantee facilities in support of lendingNeed to develop new products like crop insurance, warehouse financing, etc.ERCsNeed assistance in debt restructuring as well as operations financingNeed to dramatically improve accounting systemsCommercial BanksLack of knowledge and interest in the nontraditional export sectorsNeed for better knowledge transfer and internal communicationPartnershipsIFC, Root Capital, Greylock Capital, Grassroots Business Fund and Makeda Fund in the USAICCO (Dutch NGO) and Oikocredit in The NetherlandsMaking Finance Work for Africa (MFW4A) Secretariat and Funds for Africa Group of AfDB in TunisiaWest African Development Bank (BOAD), ECOWAS Bank for Investment and Development (EBID), Ecobank, BanqueAtlantique, Bank Of Africa (BOA), Attijari/ Compagniebancaire de l'Afriqueoccidentale (CBAO) in West AfricaBank of Industry and United Bank for Africa in Nigeria
77 (77%) including 20 (40%) women financial professionals trained9 (26%) loans made by allied banks to client ERCsMore than $2 million (100+%) loans disbursed in 4 sectors Lessons LearnedNew productsNot adapted type and level of guarantees required for lendingNeed to source the creation of guarantee facilities in support of lendingNeed to develop new products like crop insurance, warehouse financing, etc.ERCsNeed assistance in debt restructuring as well as operations financingNeed to dramatically improve accounting systemsCommercial BanksLack of knowledge and interest in the nontraditional export sectorsNeed for better knowledge transfer and internal communicationPartnershipsIFC, Root Capital, Greylock Capital, Grassroots Business Fund and Makeda Fund in the USAICCO (Dutch NGO) and Oikocredit in The NetherlandsMaking Finance Work for Africa (MFW4A) Secretariat and Funds for Africa Group of AfDB in TunisiaWest African Development Bank (BOAD), ECOWAS Bank for Investment and Development (EBID), Ecobank, BanqueAtlantique, Bank Of Africa (BOA), Attijari/ Compagniebancaire de l'Afriqueoccidentale (CBAO) in West AfricaBank of Industry and United Bank for Africa in Nigeria
Achievements(100%) ECOWAS capacity building activity completed6(40%) trade and investment enabling environment diagnostics conducted8 (53%) consultative processes with private sector engagementValidation of 6 country reports with both private and public sectorKey actors responsible for the facilitation of regional integration and implementation of the ETLS identified in each countryDevelopment of searchable web-based tool to make rules on national customs and transport procedures accessibleGap analysis credibility in regional trade issues which will be used as momentum for reformECOWAS has requested assistance to apply Trade Hub gap analysis methodology to evaluate ETLS implementation in remaining countriesActivitiesSurveyed the implementation of the ECOWAS Trade Liberalization Scheme (ETLS) from the viewpoint of the public and private sector in 9 countries: Benin, Burkina Faso, Cote d’Ivoire, Ghana, Mali, Niger, Nigeria, Senegal and Togo Organized Gap Analysis workshop with ECOWAS representatives and members from the private sector to discuss ETLS implementation strategies and confirm Trade Hub findings and recommendationValidated and disseminated key findings through meetings with senior officials from six of nine Member StatesLessons LearnedThe need for high-level buy-in to gap analysis recommendations at the ECOWAS and Member State level - to be sought at the next ECOWAS ministerial meetingNeed to complement high-level discussions with corridor level stakeholders initiatives ; training of border officials and information dissemination via information centersValidation exercise in countries revealed surprising level of stakeholder interest in ETLS implementation in member states and effect on interregional tradeGap analysis has highlighted various trade and transport issue to both national and international community.Need to develop pa way of achieving regional improvements without relying on overextended ECOWAS personnel
For example, knowledge in Nigeria due to presence of ECOWAS, the UEMOA member states not so much because they follow UEMOA customs proceduresMore knowledge in Free movement of Persons – Immigration and visa free travel. Movement of Transportation – especially road transport, since rail and sea are not in extensive use. Brown card, vehicle inspection, license plates are in effect in Benin, Togo and Cote d’Ivoire but not Nigeria. Brown Card should act as insurance for trucks but it can take up to a year for a claim to be processed in many of these countries
ECOWAS , UEMOA & USAIDPublic institutionsUniformed ServicesCivil SocietiesMedia/JournalistsAssociations and Unions
BORDERLESS Alliance is a partnership of public and private sector stakeholders across West Africa Region.In May 2011, the Alliance was estalished as a private sector led advocacy initiative.MembershipThe Alliance includes:Transport companies(Tarzan Enterprise)Freight forwarders( Bollore, DAMCO)Financial Institution(ECOBANK)Producers and Exporters(Unilever, Blue Skies)Aggregate and leverage corporate capacities and expertise to achieve free movement of capital, goods and people in West Africa.A- 7 member Interim Executive Committee has been set upTwo executive committee meeting heldSecretariat established at the Trade HubParticipated in Border Information Centre Launch.Featured on GTV programme: Business Advocate (GTV) Talk Show