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Best Practices in Export Promotion Vanessa Adams USAID Trade Hub

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USAID West Africa Trade Hub

Best Practices in Export Promotion Programming


Vanessa Adams
March 6, 2012

Unprecedented Growth
Between 2000 2010, Africas GDP grew by 4.7% p.a. - twice the pace of its growth in the 1980s and 1990s. Africas collective GDP stands today at $1.6 trillion, or roughly equal to those of Brazil and Russia. Africas Population: 1 billion; SSA: 840 million. ECOWAS 300 million. SSA to hit 2 billion by mid-century. By 2030, SSAs 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.

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

Whats Holding Intra-Trade Back?

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

Alliance Operates Independently: The


ACA was conceived in 2005, and now operates independently.

International Marketing Launched: Shea companies Building Membership: An interim


Executive Committee was elected to run the Borderless Alliance, and build a membership base. exhibit under the Global Shea banner at international trade shows

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 connects industry, leverages resources to drive business opportunities

Success Story Kadijatou Lah, Mali

Success Story Homefoods, Ghana

Success Story Clarisse Djionne, Senegal

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 Identifying international buyers at trade shows Making the case for doing business in West Africa

Im 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

Communications
14,000-member distribution list for: Newsletters (Tradewinds, ACA, GSA) Brochures Directories & Reports

Communications
Websites
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 Currency


Convertibility Implement Axle 9% load 11%

Stakeholder Online Survey Total Responses = 106, including Transport & Logistics Companies, Manufacturers and Donor Partners Covering respondents from 21 countries, including West & Central Africa

Implement single bond & ISRT 12% Simplify Cargo Clearance 16%

Reduce Checkpoints 52%

What the Trade Hub does.


Collect, analyze information Communicate Mobilize Facilitate Support Advocacy

Evolution of IRTG indicators per trip - Ghana


21 19 15 13

Bribes (GHC)

19

Number of controls
Delays (min)

15 103

14 107

15
121

84

Q3-09

Q4-09

Q1-10

Q2-10

Q3-10

Q4-10

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 Secretariat USAID West Africa Trade Hub Accra, Ghana www.borderlesswa.com www.facebook.com/borderlesswa

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