WEST AFRICAINVESTMENT CONFERENCE

MOEVENPICK AMBASSADOR HOTEL IN ACCRA, GHANA ● MONDAY-WEDNESDAY, 7-9 MAY 2012

www.ObjectiveCapitalConferences.com

Best Practices in Export Promotion ProgrammingVanessa Adams – Project Director, USAID West Africa Trade Hub

USAID West Africa Trade Hub

March 6, 2012

Vanessa AdamsBest Practices in Export Promotion Programming

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 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?

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 market driven

approach to development

Choosing high-potential sectors

Choosing high-potential sectors

Choosing high-potential sectors

Choosing high-potential sectors

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.

International Marketing Launched: Shea companies exhibit under the Global Shea banner at international trade shows

Alliance Operates Independently: The ACA was conceived in 2005, and now operates independently.

Building Membership: An interim Executive Committee was elected to run the Borderless Alliance, and build a membership base.

Case Study: Global Shea Alliance annual conference connects industry, leverages resources to drive business opportunities

Success Story – Kadijatou Lah, Mali• Challenge: Multiple small players with weak bargaining

power

• Trade Hub assistance: Market linkage & technical assistance and financing support– Worked closely with the nascent National Federation of Shea

Professional in Mali to host Global Shea 2010 and Mali Shea Day

• Impact: Connected stakeholders in Mali to international buyers, experts and service providers– “Our goals are to improve quality, attract market and increase

value to the women collecting shea nuts and making shea butter,” Lah explains. “Our vision is to be the best supplier of quality shea nuts and butter to the world. And I think we’ll succeed.”

Success Story – Homefoods, Ghana• Challenge: Limited information and exposure to international

market standards

• Trade Hub assistance: Market Linkage and Technical assistance in product development– 10-day workshop bringing US market experts to Ghana to work with food

processors to develop competitive products for international markets– Topics ranged from tasty recipes to appropriate packaging to competitive

pricing and experts provided insights on competing in the American market• Impact

– Homefood Ghana developed groundnut soup and tomato soup recipes reflecting characteristic Ghanaian tastes.

– Soups introduced to buyers at Anuga, Europe’s most important food and beverage show, held annually in Cologne, Germany.

Success Story – Clarisse Djionne, Senegal• Challenge: US market access

• Trade Hub assistance: Market linkage & technical assistance

– The Trade Hub provided technical assistance, sponsored booth space and facliitated deals for Djionne at Sources NY in 2005 and Sources LA in 2006

• Impact: High-end showroom in Miami – Made first sale even before showroom opened.– “I could not have found better for the clientele I want” says Djionne of her

US partner

Case Study: New jobs in Apparel, GhanaTechnical 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• Identifying international buyers at

trade shows• Making the case for doing business in

West Africa

“I’m learning a lot of things at this job – particularly how to supervise employees…. I feel like the sky is the limit.”

Helinda Tetteh, Quality Control Supervisor,

1888LuckyMills, Tema, Ghana

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

International Trade Shows• Cashews: AFI, ANUGA, CENTA, INC,

PTNPA • Fish & Seafood: Sustainable

Seafood Summit• Handcrafts: Ambiente, NYIGF, SIAO• Shea: InCosmetics , NYSCC,

Sustainable Cosmetics Summit • Specialty Foods: Fancy Food Show

International Conferences

Communications14,000-member distribution list for:• Newsletters (Tradewinds, ACA, GSA)• Brochures• Directories & Reports

CommunicationsWebsites

Nine websites to market products and disseminate information

Performance-based Financial Service Providers

• Business Plans• Investment Promotion• Financial Structuring • Negotiations• Management

Coaching• Product costing and

Pricing

Case Study: Nigeria Cashew Cluster Financing Scheme

Why so many road barriers in West Africa?

BORDERLESS Campaign Launched March 2010 for:• Credible, Visible, Versatile

Communication• Evidence-based Advocacy

Building regional partnerships...

Together We Build

…and leveraging the private sector

Top Priority Issues for the Borderless Alliance

Reduce Checkpoints

52%

Simplify Cargo Clearance

16%

Implement single bond & ISRT

12%

Implement Axle load10%

Currency Convertibility9%

Stakeholder Online Sur-vey

Total Responses = 106, in-cluding Transport & Logis-tics Companies, Manufac-turers and Donor Partners

Covering respondents from 21 countries, including West & Central Africa

What the Trade Hub does…….

13 Number of controls

15 14 15

21

Bribes (GHC)15

19 19

84 Delays (min) 103

107 121

Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10

Evolution of IRTG indicators per trip - Ghana

Collect, analyze information

Communicate Mobilize Facilitate Support Advocacy

Parking area identified by Ghana Customs for Express Lane

Opening Ceremony of Border Information Center

Ghana-Togo officials meet on Express Lane Pilot

Borderless Alliance SecretariatUSAID West Africa Trade Hub

Accra, Ghanawww.borderlesswa.com

www.facebook.com/borderlesswa