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

9. People, the Planet and Profit:
The triple bottom line – a market
driven approach to development

10. Choosing high-potential sectors

11. Choosing high-potential sectors

12. Choosing high-potential sectors

13. Choosing high-potential sectors

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.

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

18. Success Story – Kadijatou Lah, Mali

19. Success Story – Homefoods, Ghana

20. Success Story – Clarisse Djionne, Senegal

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

23. International Trade Shows
• Cashews:
AFI, ANUGA, CENTA, INC, PTNPA
• Fish & Seafood: Sustainable
Seafood Summit
• Handcrafts: Ambiente, NYIGF, SIAO
• Shea: InCosmetics
, NYSCC, Sustainable Cosmetics
Summit

24. International Conferences

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

26. Communications
Websites
Nine websites
to market products
and disseminate
information

27. Performance-based Financial
Service Providers
• Business Plans
• Investment Promotion
• Financial Structuring
• Negotiations
• Management
Coaching
• Product costing and
Pricing

28. Case Study: Nigeria Cashew Cluster Financing Scheme

29. Why so many road barriers in West Africa?

32. BORDERLESS Campaign
Launched March 2010 for:
• Credible, Visible, Versatile
Communication
• Evidence-based Advocacy

33. Building regional partnerships...
Together We Build

34. …and leveraging the private sector

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

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