EXPLAINING THE EIF PROGRAMME
AND STATUS OF PROGRAMME
IMPLEMENTATION IN ZAMBIA
Presentation to the EU Technical Officials Accredited to Zambia
May 21, 2014
Presentation by Healey Mweemba
Project Team Leader
Presentation Outline
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EIF Within the Context of Aid for Trade
Explaining the EIF Programme
Zambia and the EIF Programme
Conclusion
EIF within the context of Aid for
Trade
• Aid for Trade (AfT or A4T) is a generic concept
describing development assistance provided in
support of partner countries’ efforts to develop
the capacity to expand their trade by helping
LDCs address critical supply side constraints (e.g
infrastructure; both hard and soft) needed to
facilitate international Trade.
• In 2005, members of the WTO launched the Aid
for Trade initiative with the goal of promoting
trade as an engine of growth and poverty
reduction.
Aid for Trade Delivery Mechanisms
• Implementation of AfT programmes is
multifaceted, encompassing a diverse range
of delivery mechanisms. These include:
1. Bilateral Cooperating partner, e.g MATEP
2. International financial institutions, e.g WB,
Regional Development Banks
3. Multilateral agencies, e.g WTO, ITC, UNCTAD
4. EIF Programme – LDCs access Aid for Trade
Technical Assistance and financing
Explaining the EIF Programme
• The Enhanced Integrated Framework (EIF)
programme is an Aid for Trade partnership among
Least Developed Countries (LDCs), International
Organisations and Bilateral development partners.
• The programme seeks to assist LDCs to be more
active players in the global trading system by helping
them tackle supply side constraints to trade.
Promotes economic growth and sustainable
development and helping to lift more people out of
poverty.
• EIF is a catalyst programme
Background to the EIF
• The IF was launched in 1996 during the 1st
WTO MC in Singapore
• At the 6th WTO MC in Hong Kong in 2005, the
WTO Ministers agreed on three elements that
would constitute an enhanced IF, namely:
1. Increased, additional, predictable financial
resources
2. Strengthened in-country capacities to
manage and implement the IF process
3. Enhanced IF governance
EIF Partner Agencies
Eight (8) international organisations have
combined their efforts with those of LDCs (47) and
bilateral development partners (23) to respond to
the trade development needs of LDCs
EIF Core Agencies
Additional Partner Agencies
1
The World Bank Group
UNIDO
2
International Monetary
Fund
UNOPS (EIF Trust Fund
Manager)
3
International Trade Centre
4
UNCTAD
5
World Trade Organisation
6
UNDP
Objectives of the EIF Programme
• Mainstreaming trade into national
development strategies
• Coordinating the delivery of trade –
related technical assistance
• Building capacity to trade, which includes
addressing supply-side constraints
Governed by the principles of ‘Paris
Declaration on Aid Effectiveness’
The Concept of Mainstreaming Trade
• MT – the process of integrating trade into national
and sectoral development planning, policy making,
implementation and review in a coherent and
strategic manner
• Taking trade-related issues into account when
planning and executing broader development
objectives. Using trade as a tool for poverty
reduction
• MT takes place at three levels; policy, institutional
and International Cooperation
EIF governance framework
Funding for the EIF Programme
23 Cooperating partners (donors) contribute
to a basket fund managed by the EIF Trust Fund.
The funding status as of June 2011.
• Stockholm target (2007)
• Total commitments
US$250 million
US$232 million
Projects Funded by the EIF (1)
1.Tier 1 Projects (US$1.5 million over 5 years )
Support greater in-country capacity and
ownership with the objectives of:
Building the human resource capacity of the
National Implementation arrangements (NIAS
= NSC, NIU, MT)
Providing support to NIAs
Preparing and/or updating the Diagnostic
Trade Integrated Studies (DTIS)
Facilitating and supporting trade
mainstreaming actions
Projects Funded by the EIF (2)
2. Tier 2 projects (US$ 3 million per year/country)
They are projects funded by bilateral or multilateral
local development partners or theEIF Trust Fund to
address priorities identified in an EIF beneficiary
countriy’s DTIS, the DTIS update and its Action Matrix.
Exemples of Tier 2 projects:
 Assistance to implement WTO or other trade policy
committments
 Preparation, formulation and implementation of sectoral
strategies
 Capacity building activities for key trade support institutions
and government officials, professional federations (farmers
associations)
 Specific actions aimed at enhancing SMEs’ competitiveness
for priority sectors identified in the DTIS
Zambia and the EIF Programme
• Diagnostic Trade Integration Study (DTIS) is the
corner stone to the EIF programme as it forms
the basis for eligibility to the programme
• The DTIS and its Action Matrix is an analytical
report or document that LDCs use to develop
concrete national AfT implementation plans
(Tier 1) and to identify initiatives for donor
funding (Tier 2) projects.
• Cooperating partners can then elect to support
projects or programmes identified in the Action
Matrix
Zambia and the EIF Programme
cont’d
• The Integrated Framework was launched in
Zambia in 2004, with the undertaking of the
Diagnostic Trade and Integration Study (DTIS)
• The DTIS and its Action Matrix were validated
by stakeholders in July 2005 and formally
approved by the GRZ in 2006
• DTIS reviewed Zambia’s Trade Policy, assessed
Zambia’s potential for export diversification,
outlined an Action Matrix
Institutional Arrangements for the
Implementation of EIF in Zambia
• EIF programme was integrated within the
PSDRP
• EIF National Steering Committee- TEWG
• EIF Focal Point- Director- Foreign Trade
• National Implementation Unit- Three (3)
officers
• EIF Donor Facilitator- Embassy of Finland
• PS-MCTI- to report to the PSDRP SC on EIF pgr
EIF Tier I Project for Zambia
• Following the findings of the DTIS, the GRZ prepared the
National Implementation Unit Sucetanence and
Capacity Enhancement (NIUS & CE) Project proposal
in November 2009
• The GRZ presented the NIUS & CE project proposal to
the EIF Board for consideration
• In February 2010, GRZ through MoFNP and the UNOPS
(EIF Trust Fund Manager) signed a MoU on the
implementation of the project
• GRZ designated MCTI to host and coordinate the
implementation of the project
GRZ Contribution to the Project
• Political will and support necessary for the successful
implementation of the project
• Provide a framework within the PSDRP that will
ensure integration of the EIF activities with trade
expansion activities and other donor supported
programmes
• Provide a member of staff from MCTI to work with
the NIU and provide financial resources to facilitate
their participation in the EIF process
• GRZ will provide office accommodation,
telecommunication services, water and electricity
EIF Tier II – Projects for Zambia
Project 1:
Trade and Investment Project for Enhaced
Competetiveness in Zambia’s Apiculture Sector
(TIPEC ZAS) Project
Project Proposals unde developement
Enhaced Production and Competitiveness for
Smallholder Dairy Farmers in Zambia
- Aquaculture
- Eco Tourism
Challenges to the implementation
• Lack of appreciation of the DTIS and Action Matrix
by stakeholders, thus slowing the implementation of
the EIF programme
• Challenges in rolling out Trade Mainstreaming and
appreciation of the cross cutting nature of trade at
institutional levels within and across line ministries
• Weak Public Private Dialogue structures within the
context of Private Sector Development
• Awareness and Knowledge GAP on the EIF between
Geneva and Capital (Lusaka) based CPs staff
Opportunities
• EU and its member states are the largest
provider of Aid for Trade
• Africa accounts for the largest share of Aid for
Trade from the EU and its member states
• Participation in the EIF and reporting to their
capitals how the funds contributed by your
Governments are being utilised
• Strengthen synergies on coordinated delivery
of TRTA
Opportunities
• Contribute to Trade Mainstreaming
• Platform to engage the Government, private
sector and civil society on trade and other
economic matters
Thank You
Contact
9th Floor New Government Complex
Ministry of Commerce, Trade and Industry
Lusaka
E-mail : Hmweemba@mcti.gov.zm
Web Site: www.enhancedif.org