African Case Stories: A Snapshot of Aid for Trade on the Ground in Africa Stephen Karingi Regional Integration, Infrastructure and Trade Division United Nations Economic Commission for Africa 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Contents • Aid for Trade Flows to Africa • Overview of the Case Stories Sample • African Case Stories • Lessons and Emerging Best Practices • Conclusions 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana AfT Flows to Africa AfT to Africa enjoys continuing growth, with no apparent fall off following the global economic crisis and no signs of diversion from other ODA. AfT and ODA Commitments to Africa 57.1 billions of constant 2009 US$ 60 58.8 55.1 48.8 50 41.0 40 30 16.5 20 13.8 7.6 9.1 11.3 10 0 2002-05 avg. 2006 Total AfT 2007 2008 2009 Total ODA 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana AfT Flows to Africa What’s more, Africa now supersedes Asia as the principal regional recipient of AfT. AfT Commitments by Region 20 2002-05 avg. 2006 18.8 billions of constant 2009 US$ 18 16.5 16 15.4 13.8 14 12.8 12.2 12 2008 11.3 2009 10 8 2007 13.3 9.1 7.6 6 4 3.1 1.7 2.0 2 2.3 1.9 1.6 2.2 1.7 1.4 1.4 0.2 0.4 0.3 0.4 0.3 0 Africa America Asia Europe 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Oceania AfT Flows to Africa Economic infrastructure continues to enjoy the largest share of AfT to Africa, closely followed by building productive capacity. AfT by Broad Sectors 8 7,2 7,0 7 6,5 Billions of Contant 2009 US$ 6,4 6 5 4,8 4,1 4,0 4 3,6 3,5 3,8 3,7 3,6 3,1 3,2 3 4,3 3,5 3,1 2,6 2 1 0,29 0,41 0,17 0,25 0,30 0,12 0 2002-05 average Com m itm ents 2007 Commitments 2009 0,23 0,17 2007 Disbursements 7th Ordinary AU Ministersand of Trade, November adjustment 2011, Accra, Ghana TradeSession Policyof&the Regulations Trade-related Building Productive Capacity Economic Infrastructure 0,18 2009 AfT Flows to Africa The magnitude of AfT commitments varies massively across African countries… Top 5 Recipients Bottom 5 Recipients (2009 Commitments, constant US$) (2009 Commitments, constant US$) Nigeria (US$1.3bn) Algeria (US$13m) Uganda (US$1bn) Libya (US$8.2) Kenya (US$962m) Botswana (US$4.7m) Ethiopia (US$884m) Seychelles (US$2.3m) Tanzania (US$881m) Equatorial Guinea (US$1.1m) 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana AfT Flows to Africa … The same is true for the different regions across Africa… AfT commitments to Africa, millions of constant 2009 US$ 2002-05 2006 2007 2008 2009 2006-09 COMESA (19 countries) 3149 3335 4694 3640 5548 4304 ECOWAS (15 countries) 1704 1763 2833 3609 4873 3270 SADC (14 countries) 2199 1878 2589 3332 3144 2736 CEMAC (7 countries) 324 567 518 380 617 521 EAC (5 countries) 1115 1366 2497 1981 3404 2312 ECCAS (15 countries) 908 869 1233 820 1493 1104 UMA (5 countries) 781 1109 746 2387 1142 1346 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana AfT Flows to Africa … But the picture is different for AfT analysed on a per capita basis AfT Commitments per capita 2002-05 avg. 2006 2007 2008 2009 2006-09 avg. G5 Economies 4.3 5.6 4.3 10.8 7.4 7.1 LDCs 9.8 9.2 12.8 12.9 16.0 12.8 Non-LDCs 5.9 7.6 8.5 12.1 11.4 9.9 Land-Locked Countries 9.4 9.7 15.3 11.8 19.2 14.1 Non land-locked Countries 7.3 8.0 9.2 12.7 12.1 10.5 Island Economies 22.8 12.3 15.7 26.6 15.7 17.6 Non-Island Economies 7.5 8.3 10.5 12.2 13.7 11.2 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Overview of the Case Stories Sample 60 Of the 269 case stories submitted to the WTO, 114 pertain to Africa. 51 50 37 40 30 20 10 1 0 Donor The 37 case stories from member States came from 31 different countries, and 8 regional entities also contributed. 14 11 Partner Country WAEMU 17% REC SouthSouth Other AfDB 8% CEN-SAD 8% UNECA 17% ECOWAS 26% SADC 8% SACAU 8% Northern Corridor 8% 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Overview of the Case Stories Sample 32 of the 33 African LDCs were cited in at least one case story. 18 Submitted about LDCs 16 2 14 Submitted by LDCs 2 1 12 1 1 4 4 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Zambia Uganda Togo Sudan Sierra Leone Senegal Sao Tome and Principe Rwanda 10 9 1 Somalia 8 1 Niger Mali 2 8 12 10 1 5 Multiple 3 Mozambique 5 Mauritania 2 Malawi 4 Madagascar 1 2 Liberia 4 Lesotho 5 10 Guinea Bissau 1 1 Guinea 1 4 Gambia 6 Eritrea 1 2 Djibouti 1 2 Congo DR 5 1 Comoros 1 2 Chad Burundi Burkina Faso Benin 1 1 Angola 0 6 Central African Republic 4 1 1 Ethiopia 13 13 1 6 16 3 14 Tanzania 8 2 2 1 10 African Case Stories Relative to its small share of AfT flows, Case Stories on Trade Policy and Regulations received a disproportionate share of those submitted. • Trade Education and/or Training: Focus on strengthening negotiation capacities. Training of Trainers featured heavily • Trade policy and Administrative Management: Characterized by the necessary regulatory or procedural changes required to accommodate trade reforms emanating from WTO commitments e.g. Gambia and the West African Quality Programme • Trade Facilitation: Emphasis on the regional integration dimension of trade facilitation e.g. Zambia and Zimbabwe on the Chirundu One Stop Border Post 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Case Stories Submitted by African Member States Recurring issues in the Building Productive Capacities categories include: • Linking trade to poverty reduction targets • Food security considerations • Increasing market access or export diversification • Standardization of procedures and production • Promotion of lucrative activities with high value addition potential. Morocco’s National Programme of Rural Transport, supported by the AfDB and AFD, was the only case study on Economic Infrastructure submitted by an African member State. 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Case Stories Submitted by African Member States Several case stories on Processes concentrated on the various stages on EIF. Other member States’ case stories include: • Gabon’s experience mainstreaming trade • A technical assistance project led by the ITC to promote trade in services in Niger • Mauritius’ struggle to attract AfT to support trade reforms and adjustment costs • the ECOWAS Economic Partnership Agreement Development Programme The UNECA’s case story documenting on the impact of AfT on specific binding constraints was a notable contribution on AfT Appoaches for the whole continent. 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Lessons and Emerging Best Practices Factors of success cited in AfT case stories: 30 26 25 21 23 22 21 20 15 17 14 12 10 8 10 5 5 4 4 2 1 6 5 3 4 3 1 1 7 6 4 1 1 0 Commitment of partner to implement lessons learnt Effective national coordination or implementation mechanisms Private sector engagment and commitment Ownership by partner Commitment of country (e.g. political donor (political, commitment, financial, flexibility in imlementation etc) 7th Ordinary Session AU Ministers Trade,South-South November 2011, Accra, Ghana Donorof the Partner Country of REC Other None reported Lessons and Emerging Best Practices Factors posing problems in AfT case stories: 28 30 26 25 25 20 18 20 14 15 10 8 10 5 5 2 8 5 5 3 1 1 9 8 4 1 4 1 2 7 6 3 5 2 3 0 No local Project Problems on Project Difficulties in Inadequate Ownership, private sector sustainablility partner management Monitoring funding alignment or ownership or issues country side difficulties and conditionality engagement Evaluation problems 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Donor Partner Country REC South-South Other None reported Lessons and Emerging Best Practices AfT case stories report impacts in many areas, although the number of case stories (45 of 114) not reporting any impact is concerning. AfT case stories reporting on impacts of AfT 50 45 45 40 35 30 26 24 25 19 20 15 19 16 14 15 10 10 5 2 0 Domestic Export growth Foreign Gender Positive Positive Poverty Employment EconomicNone reported investment investmentempowermentimpact on impact on reduction creation growth mobilized mobilized MDGs regional trade/ 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana integration Conclusions • The momentum of AfT supplies to Africa continues to be maintained with no signs of diversion of resources from nonAfT • A few countries and regions appear to receive a disproportionate share, but per capita AfT tells another story • The focus of disbursements has been on economic infrastructure but a great majority of the case stories focus on other AfT categories • Member States’ case stories do not fully reflect regional aspects of AfT • Case stories from regional organizations prioritize interventions to address supply side constraints with a regional integration dimension • Widely accepted M&E mechanisms need further development 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana Thank you for your kind attention Stephen Karingi skaringi@uneca.org www.uneca.org/atpc 7th Ordinary Session of the AU Ministers of Trade, November 2011, Accra, Ghana