Increas creasing ing oppo port rtunities unities to tra rade - - PowerPoint PPT Presentation

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Increas creasing ing

• ppo

port rtunities unities to tra rade e an and inve vest t in Southe uthern rn Af Afric rica a

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Increased trade and investment Enhanced food security & increased incomes Increased regional, international exports and financing Strengthened strategic partnerships Improved efficiency & reliability of business environment and trade

Go Goals ls & & Objec ectiv tives es

Priori iority ty Inter terventio ventions s by y Com

• mponen

ponent

Integrated Gender Strategy Ex Expor

• rt

t Com

• mpe

petit itiven eness ess

Increase exports to global markets and the U.S. under AGOA

En Enabl bling ing En Environ

• nment

nt & Trade de Facilit ilitati tion

• n

Priority: ty: Implement trade facilitation

• agreements. Address NTBs to
• trade. Improve advocacy platforms.

Support logistics improvements.

Agribu busi sine ness ss

Increase regional trade in staple/non-staple foods and agricultural inputs and services

Finance ance & Invest estmen ent

Priority: ty: Increase capacity to export and trade higher volumes and values through investment and financing of SMEs, Coops

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Market-driven strategy to improve trade competitiveness and investment

Industry/ value chain Service Providers National Regional

Partner engagement

• Financial

institutions

• Investors
• Strategic

funds

• Consumer

goods: Apparel Accessories/ Leather Specialty foods

• Agribusiness:

Staple crops Cash crops

• Transport
• New

technologies

• ICT
• Marketing
• rganizations
• Trade shows
• National

export strategies

• AGOA

strategies

• Trade policy

reforms

• Business

enabling environment

• Cooperation,

reforms among SADC Member States

• Reducing

constraints to trade

Finance & Investment

Agr grib ibusiness usiness Trad ade

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Stra rateg egies es

• Support structured trading of quality

staple/non-staple food crops

• Improve trade of inputs & services
• Facilitate use of new agricultural technologies
• Leverage private partnerships including co-

investment (PPPs) Output puts-Outco Outcome mes s

• Incre

reased sed regiona nal trade de

• Imp

mproved ed structure tructured d trade de: : Commodity dity exchanges nges/ / Warehouse

• use Receipt

pt Syst stems/s ms/sta tandar ndards ds/t /testi esting ng

• Stre

rengthe ngthene ned d trade de in agricultur cultural input nputs and servi vices es

• New techno

hnologies, gies, manageme ment nt practi tice ces s

• Stre

rengthe ngthene ned d trade de associ ciati tions ns

INTE TEGR GRATED TED GENDER DER STRATEG TEGY

Incr crea ease e Regiona

• nal

l Trade, , Enhanc nce e Struc uctur tured ed Trade

• Staples (Maize)
• Non staples: oilseeds

eeds (sesame, soy, groundnuts) and pulses es (pigeon peas, cow peas, soy)

• Strengthen structured trade through warehouse receipt systems, with focus
• n Malawi, Mozambique and Zambia including a pipeline of transactions for

ACE, MCX and ZAMACE

• Develop marketing

ting and training ning aimed at informing value chain stakeholders

• n the advantages of using a structured WRS
• Improved Standards (testing, calibration, certification, inspection etc)

Identi ntify fy mark rket t opportun tuniti ities es mark rketab table e surp rplus us:

• Increase regional trade
• Private sector investment and collaboration
• Grow value chain in volume and value

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Facili litate tate the Transfe fer r of N f New w Technol nologi

• gies

es and Adopti ption

• n of

f Improved ed Inputs ts

• Partner with agribusinesses to scale the use of

quality seed, fertilisers, equipment and services

• Assess Market Information Systems and

Warehouse Receipts Systems to leverage successes in Southern Africa

• Support development of a private sector-led

regional market information system

• Facilitate private sector technology transfer

through use of the strategic partnership fund

• Strengthen regionally focused Cooperatives

and Trade Associations and Seed Trade Associations

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Public blic Pri riva vate te Par artner nership ships

• Olam: Cotton/maize/rotational pulses outgrower scheme with off-

take agreement (mobile phones – climate/fertilizer application/ maize seed) ; WRS in Mozambique; expansion into Malawi

• Export Trading Group (ETG) – Feed processing plant; Ethiopian

sesame seed intro to Mozambique; WRS

• JSE Johannesburg Stock Exchange with ZAMACE to increase

utilization of the WRS certifications and futures trades

• AFAP—Regional Fertilizer Policy study focused initially on

Mozambique, Malawi and Zambia

Export port Competitive mpetitivenes ess

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Stra rateg egies es

• National AGOA Strategies and Action plans
• Support industry associations for

international export promotion

• Firm level technical assistance for increased

exports of processe cessed d foods ds, ingre gredie dients nts, , appare rel, , access ssorie ries, s, leathe her r goods

• Trade Shows, Buyers Missions and B2B

Events

• International Standards improved, including

certifications

• Leverage private sector partnerships (PPPs)

Output puts-Outco Outcome mes s

• Increased export from AGOA countries to US

and global markets

• Linkages between buyers and sellers

created or strengthened

• Increased competitiveness meeting

international standards

INTE TEGR GRATED TED GENDER DER STRATEG TEGY

Buil ild d Capacity pacity to Inc ncrease ease AGOA GOA Utili liza zatio ion Target Ex Expect cted d Resul sults ts

Develop lop Moz

• zamb

ambiq ique and d Namib ibia ia AGOA A Strat rateg egies ies and Ac Actio ion Plans  3 AGOA Strategies completed Revi view and d Up Updat date e Mala lawi i AGOA A Strat ateg egie ies s and d Ac Actio ion Plans  Malawi AGOA Strategy reviewed/updated and Action Plan developed Develop lop and impl mpleme ement t Zamb mbia ia AGOA A Ac Action tion Plan  Zambia AGOA Action Plan developed  Selected activities implemented Suppor

• rt

t Impl mplem emen entat tatio ion of Bot

• tsw

swana a AGOA A Ac Action tion Plan  Botswana AGOA Action Plan finalized  Selected activities implemented Sec ector

• r-sp

spec ecif ific ic trai ainin ings s and wo workshop hops s on AGOA A strat ateg egic ic utilization ization (Strateg egy launch, , sector

• r-sp

spec ecif ific ic AGOA A awar aren eness ess and action tion plan wor workshops) hops). .  1 AGOA Strategy launch  3 AGOA and Action Plan Awareness workshops  Coordinate & support on Mozambique AGOA strategy  Train 400 on updated market competitiveness requirements

AGOA Natio ional al Respo ponse nse St Strategi gies es and Pla lans

Strategy, Action Plan Workshops, Committees Botswana Complete – Public launch pending Nov 2016 - June 2017 Malawi In development April - July 2017 Mozambique Support, collaboration June - August 2017 Zambia drafted Jan - June 2017 Lesotho Refresh August 2017

Results: ults: Textiles es & Ap Apparel parel

• More than ten company assessments in Lesotho & South Africa
• Technical assessments (social compliance, production capacity) of 8 companies

to propose technology and investment in Lesotho

• MAGIC trade show – 3 pre-MAGIC workshops.
• At MAGIC supported 11 companies with over 50 B2B linkages + 10 assisted via

SAFLEC/DTI. Attendance from Minister of Trade in Lesotho and collaborated with the other two Trade and Investment Hubs on the Africa Pavilion

• Set up Africa Advantage website which is being used to promote

manufacturers for all the 3 Hubs

• Identified factories that require investment support
• Coordination, promotion, exhibits at Source Africa

Re Results: ults: Af Africa a Fine e Foods ds

• Factory assessments in South Africa,

Swaziland, Mozambique, Namibia, Zambia, and Malawi (41 companies)

• Gulfood Show support (6 companies; 4

countries). More than 40 B2B linkages.

• Fancy Food Show (NYC) 8 companies

exhibiting.

• Consultative meetings with investment

agencies in South Africa, Zambia, Malawi, and Swaziland (over 6 companies) –Identified areas of collaboration supporting

• Workshop on processed foods in Zambia to

discuss export/buyer requirements, trade show prep and participation (attended by 53 participants: 41 private sector companies and 12 support institutions)

• Meeting with Malawi Organic Growers

Association and 7 members

• Research on export potential of macadamia,

cashews, pulses, and sesame (South Africa and Mozambique)

• USD 120.5

.5 bn (US mark rket et)

• 58 of 61 special

alty y foods s categorie

• ries

s saw double le-di digit git growth in 2015

• Gulfood
• od Dubai Februa

uary 2017

• Fancy

y Food

• d Show June

e 2017

Speci cialty lty and Processed

• cessed Foods

ds

Co Connecting necting companies panies to markets rkets

Fin inanc ance e & & Investme estment nt: : 5 P Pil illa lars

1. 1. Fina nanci ncial Sector

• r Strengthe

ngtheni ning – including regulatory or procedural issues and bank capacity building in partnership with DCA, other USG agencies and DFIs. 2. 2. Investme stment nt Policy cy Enabling ng Envi vironm

• nment

ent – working with SADC and other stakeholders on implementation of regional investment policy framework (SADC-IPF) and its domestication through national action plans on investment (NAPI). 3. 3. Suppor port t Fina nanci ncing ng Platforms

• rms – 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 target markets. 4. 4. Wareho hous use Rec Receipt pt Fina nanc nce e (WRF) ) – focusing on WRS Systems development (together with the Agribusiness team), Financial Institution capacity building around warehouse receipt financing, improved ecosystem to overcome barriers to WR Finance deployment. 5. 5. Incre reasin sing Invest stmen ent t – Collaborating with regional and global investors to facilitate investment, including through regional transactions and investments from outside of Southern Africa, partnering with USG teams and agencies such as PCM, OPIC, USDA and

• thers.

Country Sect ector

• r

Type Summary Malawi National Action Plans on Investment (NAPI) Working with local consultants finalize the development of National Action Plans on Investment in consultation with stakeholders. Develop a rollout dissemination mechanism Botswana National Action Plans on Investment (NAPI) Working with local consultants finalize the development of National Action Plans on Investment in consultation with stakeholders. Develop a rollout dissemination mechanism Zambia National Action Plans on Investment (NAPI) Working with local consultants finalize the development of National Action Plans on Investment in consultation with stakeholders. Develop a rollout dissemination mechanism Lesotho Information Dissemination Partner with the Lesotho National Development Corporation (LNDC) to produce a “cost of doing business in Lesotho” publication. SADC Investment Marketing strategy Partner with SADC to develop a modern interactive investment portal linking all Member State Investment Promotion Agencies

Policy icy/E /Enabl nabling ing Enviro ironmen nment t Op Opportuniti

• rtunities

es for Hub b Suppor port

Warehouse ehouse Receipts eipts Fi Financi ncing ng

In Malawi, USD 35 million will increase private sector storage capacity by as much as 50% from an estimated 500,000 MT to 740,000 MT and reduce post-harvest losses from estimated 20-30%

SMEs Mid-Size Firms Corporates Project Finance Grants Dev Finance* Debt Equity Guarantees Insurance

Investment Protection

Commerciality of Terms Returns Impact

$120,000 for SME tool rentals $50m Telecoms Guarantee

Inves estor

• rs

s active e in r n region gion in o n orde der r to und nder ersta tand nd the e capi pital l land ndsca scape e and nd identify tify transa nsacti ction

• ns to supp

ppor

• rt

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In Investment Facilitation: Active Portfolio

Coun untry Sector

• r & tran

ransa saction

• n

size Desc escri ript ption

• n

Inves nvestmen ent faci cilitation

• n suppor

upport

• The Investee is a Microfinance institution, primarily focused on

government payroll lending. Current transaction focuses on investments in Malawi and Zambia. Investment will be used to expand the investee’s lending capacity in the region

• Market assessment with a focus on

regulatory environment

• Commercial due diligence
• Loan book analysis to identify key risks

US$1 $1m - US$5m S$5m

• The Investee is a South African restaurant chain - sourcing some regional
• inputs. Investment will be used to integrate investee with an existing

investment and provide capital to expand the enlarged business across the region

• Market assessment
• Commercial due diligence
• Procurement strategy analysis
• Merger facilitation

US$5 $5m - US$15 S$15m

• The Investee is a small Malawian retail chain. Investment will be used to

expand the chain to primarily untapped rural and peri-urban markets, and partner with a local abattoir to expand the value chain and product

• fferings
• Market assessment
• Commercial due diligence
• Expansion strategy analysis

US$1 $1m - US$5m S$5m

• The investee is a Namibian horticulture producer. Investment will be used

to improve investee’s productivity by enhancing the greenhouse cooling system and optimizing electricity and storage facilities

• Market and regulatory assessment
• Commercial due diligence
• Go to market strategy

US$1 $1m – US$5m $5m

• The investee is a leading distributor of food and non-food FMCG in
• Mozambique. Investment will be used to increase trading volumes,

improve services and enhance local production of certain food items

• Market assessment with a particular

focus on the informal market

• Commercial due diligence

US$1 $1m – US$5m $5m

En Enabling ling En Envir ironment nment & Tr & Trade Faci cili litat ation ion

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Strategies ies

• Facilitate and increase trade along

key regional trade corridors

• Support the implementation of

trade facilitation agreements

• Support logistics sector

improvements and innovations for key value chains

• Address SPS and TBT related

barriers Out utputs uts-Outco Outcome mes s

• Reduced time/cost to cross

borders

• Implement existing trade

facilitation agreements

• Promote enabling environment,

and support transparency of public sector procedures

• Improve capacity of associations

to advocate for trade policies

INTE TEGR GRATED TED GENDER DER STRATEG TEGY

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Why y fac acilit litat ate e tr trad ade e in th the e SADC DC region?

• n?
• SADC exports average 28 days – global average is 9 days
• Only 1%

1% of global exports originate from SADC

• Less than 20%

20% of regional imports originate within SADC Reduce delivery time by 1 day, reduce landed cost by 0.8%* Potential for SADC region to save US$400m on intra-region exports and US$2bn on global exports (2013 figures)

*(Hummels, D.L. 2013. “Time as a Trade Barrier”. American Econonmic Review)

Ena nabl bling ing Env nvironment ironment & Tr Trade de Facilitation acilitation St Strategy rategy

Support regional and national partners in enabling transparent, reliable, efficient, and cost-effective trade by

• Partnering to facilitate and increase

trade along regional trade corridors

• Supporting implementation of trade

facilitation measures

• Supporting logistics sector to eliminate

constraints for key value chains

• Addressing non-tariff barriers
• Empowering private sector partners

with regional linkage opportunities and strengthened advocacy skills

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Catalyze lyze va valu lue e chains ins acro ross ss cor

• rridors

ridors

“Hard and soft infrastructure needs are prioritized and sequenced along corridors in a manner whereby activities mutually reinforce each

• ther, resulting in quick

and tangible improvements for priority industries and value chains.”

Source: “SADC Industrialization Strategy & Road Map-Action Plan”

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Single Window Authorized Economic Operators Chirundu OSBP Compliance Audit Excise Law, Customs Regs & SOPs Expedited Shipments Broker-Freight Forwarders and transport Associations Trade Information Portal

Mem ember St State In Interventions

NTB 727 SPS Kazungula TFA awareness & support to NTFC Awareness of Trade Information Portal Assessment & harmonization of SPS Border Inspections Support to ANSI Support to domesticate SPS Annex

As Associa

• ciation

tion Buildin ilding g Cap apac acity ity

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Output puts-Outco Outcome mes

• Assess 50 Associations
• Build capacity of 25 associations
• Increase Associations advocacy to

government and provide members access to information to assist in growing, improving their businesses, access to market development, promotion and branding and visibility

INTE TEGR GRATED TED GENDE DER R STRATEG TEGY

Stra rateg egies es

• Strengthen internal systems and operations of

partner associations to support their memberships and assist the Trade Hub in meeting targets

• Ensure associations and cooperatives have

adequate strategies, systems, procedures and sustainability plans

As Associa

• ciation

tion Cap apacity acity As Assessment: sment: Ke Key y Fi Findings ndings

• Opportunities exist to strengthen national level associations by forming regional

partnerships

• Some established associations with large membership numbers have

questionable impact and services to those members

• Smaller associations can have dependency on single dynamic leader with

little/no succession planning

• Need to diversify revenue streams beyond donor financing
• Need to strengthen program monitoring and evaluation within associations
• Even well-staffed, well-equipped local branches do not reach sufficient numbers
• f remote and rural farmers thereby increasing the reliance on the informal

market

• Fragmentation in transportation and logistics leads to problems with industry

groups speaking in a single voice

• Opportunities exist to increase scalability of associations for regional exports

Stra rategic tegic Par artner tnership ship Fu Fund nd

INTE TEGR GRATED TED GENDER DER STRATEG TEGY

Strategies:

• Accelerate intraregional agricultural and consumer goods

trade and exports to the United States and global markets

• Facilitate provision of processing and grading equipment
• Mitigate risk and facilitate private sector technology

transfer regionally as well as international transfer and adoption of new technologies

• Support cluster development and regional industry

association capacity building towards

• Facilitate increased level of international certifications, new

technologies and capital equipment upgrading resulting in increased international competitiveness

• Leverage private sector investment to facilitate greater

regional and international trade Output puts-Outco Outcome mes Contribute to Life of Project Results:

• Increase in exports to global

markets

• Increase in regional agricultural

trade

• Leverage private sector

investment

• Facilitate agricultural loans
• TA to MSMEs

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Strategi tegic c Partne nershi rship p Fund Guiding ding Princ ncipl iples es

Strategic egic Pa Partner ershi ship p Fund Guidi ding ng Principl ples es

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Market Growth Sustainability Innovation Leverage Strategic Interventions Transparency

Lif ife e of f Pr Project

• ject Res

esults lts Targets gets

• 600 MSMEs receive technical assistance, 300 companies

adopt new technologies

• $58 million in regional agribusiness trade
• $190 million in increased exports
• $160 million of private sector investment leveraged
• $60 million in loans facilitated
• % reduc

ucti tion

• n in time

me and cost t to trade goods across borders and along corridors

• 15 p

policies icies or regulations improved or implemented to increase trade and investment

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