Zimbabwe

FY 2001 Program Description and Activity Data Sheets

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FY 2001 Program Zimbabwe is a country at risk. As a result, with strong support from the U.S. Ambassador and the Department of State, the decision to end USAID assistance to Zimbabwe by 2003 was reversed in May 1999. The new crisis prevention/mitigation strategy has three major components. The cornerstone is a democracy program that increases the competition of ideas in the political and economic system by assisting Zimbabwean nongovernmental and governmental structures to allow Zimbabweans greater participation in economic and political decision-making. The goal is to make the government both more responsive and more accountable to its citizenry. The democracy program includes modest technical assistance for land tenure reform and for local groups to design their own resettlement schemes. In FY 2001 a new component will be designed with the objective of increasing citizens' access to local government authorities and their decisions concerning taxation and budget allocations. USAID will expand essential support to the health sector, which currently is unable to adequately respond to the AIDS crisis. USAID will focus on translating increased public awareness about HIV into changes in sexual behavior that will lead to decreases in the rate of transmission. In FY 2000, USAID will design a new community-based initiative to help cope with the nearly 700,000 children orphaned by AIDS. By FY 2001, USAID will have preliminary feedback on the effectiveness of the voluntary counseling and testing effort launched in FY 2000 to encourage behavior change. Additionally, a program to support disadvantaged groups through microenterprises and skills training will be designed in late FY 2000. This program will be linked directly to the orphan program. USAID's Office of Transition Initiatives will provide targeted support to key elements of the new crisis mitigation strategy. USAID's Leland Initiative will launch a modest program to enhance development partners' ability to communicate with USAID, each other, and the rest of the world through internet connectivity. In FY 2001, the development assistance program will continue to see active participation and support from the U.S. Embassy's Country Team, particularly in addressing the HIV/AIDS pandemic and expansion of the democracy initiative. [an error occurred while processing this directive] ACTIVITY DATA SHEET PROGRAM: Zimbabwe TITLE AND NUMBER: Natural Resources Management Strengthened for Sustainable Development of CAMPFIRE Communities, 613-001 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $0 PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $0 STATUS: Continuing INITIAL OBLIGATION: FY 1989 ESTIMATED COMPLETION DATE: FY 2002 Summary: Zimbabwe's indigenous population historically has had little say in how it manages and benefits from its land and natural resources. Under the colonial regime, the indigenous majority was relegated marginally productive "tribal trust" (now communal) lands. Over time, widespread environmental degradation ensued as the indigenous majority of the nation's population attempted to eke out an existence on the country's most marginal and environmentally fragile lands. Since 1988, Zimbabwe's own Communal Areas Management Programme for Indigenous Resources (CAMPFIRE) has sought to redress these serious long-standing problems by empowering impoverished communal area residents to assume control over and better manage their limited available natural resources for long-term economic gain and environmental prosperity. The program's purpose is to develop economically sustainable communities on lands marginally suitable for agriculture by: 1) developing community-based programs to increase incomes while sustaining natural resources; and 2) improving local capacities to protect the resource base. USAID's primary role in CAMPFIRE is increasing the capacity of participating rural communities to manage their natural resources in a sustainable manner. USAID funds local non-governmental organizations (NGOs) and host government agencies that train rural communities in conservation management and administrative skills. The program also uses development grants to communities for infrastructure and institutional strengthening to improve local-level natural resources management and use. The program includes a modest regional communications and information-sharing component in support of similar community-based natural resource management (CBNRM) initiatives underway in other parts of Africa. Key Results: The key results for this program are: 1) the adoption of more sustainable natural resources management practices; and 2) the establishment of sound community decision-making practices. Since the inception of the USAID activity in 1989, the number of rural households participating in CAMPFIRE has expanded from 9,000 to about 319,000. At present, 36 of 57 total districts throughout Zimbabwe--and one out of five communal households--are active program participants. Total CAMPFIRE revenues have increased steadily and substantially over time, from $350,000 in 1989 to $1.9 million in 1997 (the latest year for which complete financial information is available). Cumulative program revenues through the end of 1997 totaled $10 million. The value of CAMPFIRE revenues that devolve directly to participating CAMPFIRE communities has increased as well--from $186,268 in 1989 to more than $5 million in 1997. These resources provide both cash dividends and critical infrastructure, including schools, health clinics, water supplies, grinding mills, meeting halls, housing, roads and bridges for these impoverished rural areas. Moreover, wildlife populations are steadily increasing in program areas, despite persistent drought conditions experienced throughout much of the program implementation period. Program-funded environmental education activities have led directly to the incorporation of natural resources management into the nation's primary and secondary school curriculum. CAMPFIRE's successful model of conservation-based community development has been instrumental in the development of similar CBNRM initiatives elsewhere in Africa and the world. Performance and Prospects: The principal activity supporting this strategic objective is the Zimbabwe Natural Resources Management Project (NRMP). Project activities have focused on three broad areas: 1) research, outreach, networking and communications, covering biological, sociological, educational and policy matters; 2) strengthening the institutional support system for, and the community-based management of, natural resources; and 3) conservation of the natural resource base. USAID's involvement in Zimbabwe's CAMPFIRE program began in 1989 with a $7.6 million pilot-level intervention focused on four districts in Matebeleland Province. Based upon the success of these activities, USAID authorized a $20.5 million extension of the activity in late 1994. Implementation of this second set of activities relied on established CAMPFIRE management structures, including the CAMPFIRE Association and associated NGO and host government support agencies, to expand program coverage nationwide. In 1998, the time frame for completion of the NRMP activity was extended to ensure completion of project objectives. The extension included certain important revisions, most notably, a diversification of program-financed NRM activities beyond the initial focus on sport hunting of wildlife, to include small-scale ecotourism ventures, fisheries, forestry products, and other income-generating activities. Performance continues on target toward the achievement of all major results, with no additional financial resources, by the planned FY 2002 program completion date. As it draws to a close, increased emphasis is being placed on the consolidation of the community-level achievements, the long-term sustainability of its supporting local institutional framework, and the diversification of program revenue sources from wildlife into other sustainable approaches toward community-based natural resources management. Possible Adjustments to Plans: None. Other Donor Programs: USAID has been the largest donor to the CAMPFIRE program, with contributions totaling $28.1 million. Donors carrying out complementary program activities in Zimbabwe (totaling $5.7 million) include the World Bank, the Netherlands, Canada, the European Union, Norway, Great Britain, Germany, Italy and Japan. The Government of Zimbabwe contributes an additional $2.0 million annually in support of CAMPFIRE. Principal Contractors, Grantees or Agencies: Contractors include the U.S. firm Development Associates, Inc. and PriceWaterhouseCoopers (Zimbabwe). Grantees include the CAMPFIRE Association; Worldwide Fund for Nature (WWF/Zimbabwe); Zimbabwe Trust; Action Magazine, Southern Alliance for Indigenous Resources; and the University of Zimbabwe's Centre for Applied Social Sciences. Several Zimbabwe governmental agencies participate in this activity, including the Department of National Parks and Wildlife Management, Forestry Commission, Department of Natural Resources, and Ministry of Local Government and National Housing. Selected Performance Measures: Baseline (1989) Actual (1998) Target (1999) Target (2000) Target (2001) Number of member communities with established NRM programs 0 46 60 75 90 Number of participating households 9,000 319,000 325,000 350,000 375,000 Total value of CAMPFIRE benefits ($ millions) 0.35 1.94 2.35 2.50 2.65 U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Zimbabwe TITLE AND NUMBER: Broadened Ownership in a Growing Economy, 613-002 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $200,000 (DA) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $0 STATUS: Continuing INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2000 Summary: After nearly twenty years of independence, Zimbabwe remains one of the most inequitable countries in the world. At independence in 1980, 5% of the population controlled the most productive land, and most of the industrial and commercial sector was in minority hands. Today, the richest 20% of the population receives 60% of the income, while the poorest 40% receives only 10%. This extreme imbalance is felt most among the historically disadvantaged segments of the population, such as female heads of households, under- and unemployed youth, informal sector operators, the urban poor, and rural subsistence farmers--all of whom are black Africans. The majority of Zimbabwe's growing impoverished class (estimated at 60% of the population in 1995, of whom 45% were considered "very poor") have been suffering under the country's extreme inequity for many generations. This program will help ensure that the benefits of economic growth are broadly shared across all strata of the Zimbabwean population. Key Results: One of the principal avenues to redress this imbalance is to expand the participation of poorer Zimbabweans in economic growth. To facilitate the imbalance, USAID adopted a three-pronged approach that assists poor Zimbabweans to: 1) become homeowners (there are over one million people on a waiting list and one in four families is actively seeking shelter); 2) own a portion of the company where they work, through employee stock ownership; and 3) increase access of micro, small- and medium-sized businesses to capital and new markets for their products. Increasing access by this group to new assets, and the income and employment these assets create, is a critical first step to economic participation and independence. The key results of this approach are: 1) broadened home ownership by low income groups and increased access by low-income households to mortgage financing; 2) broadened ownership in existing businesses; and 3) creation or expansion of micro, small- and medium-sized enterprises. Performance and Prospects: Even though Zimbabwe's economy continued to deteriorate during the year (with less than 1% economic growth in 1999), program performance has been satisfactory in most areas and excellent in others. In the area of low cost housing, the program supported the construction of 7,970 housing units (1999 data). Increases in the availability of low cost housing provided through the USAID program continued to drive down the real price of this housing so that it is now 73% below the 1992 baseline price. In the policy arena, the program achieved major breakthroughs. For example, it assisted in the establishment of the nation's first mortgage securitization mechanism, successfully argued for the removal of burdensome taxes on mortgage holders, and leveraged the first ever privately financed urban sewer and water development program in Zimbabwe. The program has funded an urban credit rating program that has resulted in Zimbabwean cities being rated for credit-worthiness--the first step required to obtain private capital for urban infrastructure development. USAID support has helped leverage $100 million in World Bank funding for local governments' capital development. To date, the employee ownership component of the program has leveraged two deals valued at $2.7 million and affecting 2,500 employees. Investment performance in the micro, small- and medium-sized business area is mixed, depending on how closely the program component is tied to commercial financing and interest rates (which reached 70%). For example, as it became more difficult to source financing and business opportunities, the number of small firms seeking business linkages and loans through the program exceeded planned results, while the value of the business generated fell below expectations. In the microfinance area, where access to capital is more important than the cost of lending, performance far exceeded plans: over 13,000 micro-entrepreneurs were served through a line of credit valued at $1.9 million. These results represent a seven-fold increase in clients and a five-fold increase in loans since this activity began in 1995. Possible Adjustments to Plans: The bulk of the activities in this program will close in September 2000 (low cost housing will continue into FY 2001). While no new activities are contemplated, microfinance and complementary business support and development activities for disadvantaged groups (including those affected by HIV/AIDS) will continue under the new country strategy for the planning period 2000 to 2005. Support to local governments (rural and urban) also will occur under the new strategy as part of the democracy program, with the objective of increasing citizens' participation in local government decision-making. Other Donor Programs: The World Bank currently is implementing a $100 million private sector activity that is modeled after and complements the goals of USAID's local government activities. The United Nations Development Program (UNDP) serves as the clearinghouse to coordinate donor, Government of Zimbabwe (GOZ), and private sector programs for small enterprise development activities. USAID is one of 13 international donors that have invested $25 million in the microfinance sector, helping to establish the Zimbabwe Association of Microfinance Institutions. Historically, USAID has been the largest donor in the low-income shelter sector, followed by the World Bank. The $75 million grant and loan funds under the USAID program are being matched dollar-for-dollar by the GOZ and five private sector Zimbabwean mortgage institutions, making $150 million available for low-income housing and infrastructure. The World Bank is implementing an urban development program that complements USAID's efforts in both the housing and municipal finance sectors. Principal Contractors, Grantees, or Agencies: Principal contractors include the U.S. firms Coopers and Lybrand; Planning and Development Collaborative, Inc., International; Abt Associates; Plan, Inc.; and Palmer Associates. Corporate partners include Barclays Bank and Stanbic Bank. Participating Zimbabwe agencies include the Ministries of Local Government and National Housing; Industry and Commerce; Finance; Lands and Agriculture; and Justice and Legal and Parliamentary Affairs; the National Economic Planning Commission; five local building societies; and 24 local government authorities. Grantees include the U.S. organization International Executive Service Corps and the local organizations Confederation of Zimbabwe Industries; Zimbabwe National Chamber of Commerce; Horticulture Promotion Council; Opportunity International (Zambuko Trust); Mennonite Economic Development Associates (Phakama Economic Development Company). Selected Performance Measures: Baseline (1995) Actual (1998) Target (1999) Target (2000) Target (2001) Low-income housing units built annually per 1000 1992 population 0.77 (1992) 4.8 1.17 1.3 * Number of mortgages provided to urban low-income households 1,220 (1992) 4,803 8,931 8,931 * Loans to microenterprises    Number    Value ($ millions) 2,124 0.4 13,393 1.5 8,800 0.88 10,000 1.0 * * Loans to small/medium businesses    Number    Value ($ millions) 47 0.2 415 1.9 450 2.4 500 4.0 * * * There are no FY 2001 targets since the activity ends in FY 2000. U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Zimbabwe TITLE AND NUMBER: Enhanced Citizens' Participation in Economic and Political Decision-Making, 613-008 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $2,287,000 (DA) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $3,032,000 (DFA) STATUS: New INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2005 Summary: Greater citizen participation in government decisions is central to the achievement of stability in Zimbabwe. Domination by a single party and excessive executive control limit competition in the political and economic arenas. Lack of popular participation in government decisions has fostered a lack of government accountability and transparency as well as increased frustration from the public due to its exclusion from economic and political decision-making. Calls for political change have heightened as the economy deteriorates. In the past two years, the Zimbabwean citizenry has become more restive; government's tendency has been to respond with repressive measures. Zimbabwe is in the midst of a leadership transition, with parliamentary elections in early 2000 and presidential elections in 2002. This strategic objective will enhance citizens' participation in economic and political decision-making by creating opportunities for dialogue between civil society and government. The hypothesis is that the space created through dialogue will mitigate against citizens resorting to violence as a means of political expression. Key Results: In order to increase the competition of ideas and solutions, this new program encourages participation on two fronts. First, technical assistance and grants to civil society organizations (CSOs) will promote their ability to demand good governance and accountability. Second, by strengthening key government institutions (Parliament, land reform institutions, and local authorities), these institutions will become more open and accessible to public input. The key results are: 1) improved civil society organizations' representation of citizens' interests at national and local levels; 2) more effective and accessible selected national government institutions; and 3) more capable and open local government institutions. Performance and Prospects: This strategic objective was formally approved as part of USAID's new Country Strategic Plan in May 1999. It is an expansion of an earlier special objective that was approved in July 1998. While the earlier program was designed to increase opportunities for citizens' participation in economic and political decision-making, it had a narrower scope, focusing on grants to civil society and short-term technical assistance to Parliament. With the approval of the new Country Strategic Plan in 1999, funding has been increased and the objective set at a higher level to actually increase citizen participation (rather than provide opportunities for participation) in different levels of government. The intermediate results were expanded to include more CSO grants, assistance to institutions involved in land reform, a long-term institution-strengthening mechanism for Parliament, and assistance to local government institutions. Prospects for achieving results are good because the strategy relies on reform processes that are "home grown" and have already begun. For example, civil society and Parliament already have begun implementing an agenda for change. The success of the strategy depends on the willingness of the ruling party and executive to allow these processes to continue and to engage in substantive dialogue. However, if the economy continues to decline, the situation could deteriorate rapidly, before mechanisms for improved dialogue become effective. As part of this strategic objective, a five-year parliamentary strengthening activity began in late 1999. Parliament is implementing the recommendations of its ground-breaking internal report that concluded that major remedial changes are necessary if it is to be effective. The USAID activity will help achieve three key reforms: 1) strengthening the committee system; 2) improving the legislative process; and 3) increasing interaction with civil society. Also in 1999, USAID began working with five CSOs to improve their ability to represent their constituents' issues with Parliament. These CSOs work in four critical areas: national budget and business issues; accountable local government; the independent media and freedom of expression; and social and economic justice. Work will begin with an additional six CSOs in early 2000 to help improve their ability to advocate for the rights of the women, victims of torture, the handicapped, orphans and other oppressed groups. In September 1999, USAID provided funding to the University of Wisconsin's Land Tenure Center to assist the Government of Zimbabwe (GOZ) in executing a more effective and efficient land reform process. The Land Tenure Center will provide policy and research assistance to the GOZ and help beneficiary groups prepare alternative land resettlement plans and better consultations with all concerned stakeholders. Assistance activities for local authorities will be designed in FY 2001. The objective is to help selected authorities become more capable and open to citizen input, particularly with regard to taxation, raising private finance, and the use of revenues. Possible Adjustments to Plans: Design of the local authority component will begin in FY 2001. Other Donor Programs: While a range of donors fund democracy and governance activities, including the United Kingdom, Norway, Sweden, Denmark, Canada, Australia, the Netherlands and the United Nations Development Program (UNDP), the U.S. is the largest donor. UNDP, the second largest donor, provides support to Parliament and complements U.S. assistance by focusing on the budget committee and constituent outreach. While all donors support civil society, USAID is the only donor helping to develop advocacy skills and programs. Major donors in land reform assistance include the World Bank, UNDP, Sweden, Norway, the Netherlands, and the United Kingdom. A September 1998 international donors conference created a "Consultative Committee of Donors" to coordinate land reform assistance. United and coordinated donor positions have had a positive impact on important program policies and decisions. Agreement was reached on a two-year "inception phase" prior to full-scale program implementation, testing of alternative approaches to government models, timely and proper legal treatment of illegal squatters, and fair and timely compensation for land. USAID has worked closely with the World Bank to develop the Local Government Capacity Development Program. USAID's assistance will be designed to leverage $100 million in funds under this program that is available for capital projects. USAID established a public/private sector working group that developed a technical assistance plan and conducted local authority credit ratings and an analysis of local government legal authorities. Principal Contractors, Grantees or Agencies: Current grantees and contractors include The State University of New York at Albany; the U.S. organization PACT, Inc.; the University of Wisconsin Land Tenure Center; and various local civil society organizations. Selected Performance Measures: Performance measures are being developed for this new activity, but are likely to include the following: CSO perceptions of valid engagement with Parliament on issues relevant to their areas of concern. CSO perceptions of valid engagement with local government institutions on issues relevant to their areas of concern. Assessment by members of Parliament of the quality of targeted CSOs' input into the legislative process. CSO perceptions of valid engagement with Government land reform institutions. Number of parliamentary committee meetings in which targeted CSOs are involved in substantial interchange. Number of targeted CSOs that show improvement on the Advocacy Index (and that represent women and marginalized communities on issues important to them). Number of parliamentary committee meetings open to citizen groups. U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Zimbabwe TITLE AND NUMBER: HIV/AIDS Crisis Mitigated, 613-009 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $2,000,000 (DA), $4,700,000 (CSD) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $5,500,000 (CSD), $2,687,000 (DFA) STATUS: New INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2005 Summary: Zimbabwe has one of the highest HIV infection rates in the world. An estimated 25% of adults are HIV positive (UNAIDS 1998). Data from Harare clinics indicate that one pregnant woman in three is infected. Officially, 1,200 people die each week of AIDS; however, unofficial estimates put the number much higher. Between 1992 and 1997, the infant mortality rate increased by 21%. Already, there are 700,000 children orphaned by AIDS, and the number is estimated to rise to one million by the year 2005. There is no indication that the epidemic has reached its peak. The HIV epidemic in Zimbabwe is a national disaster of incredible human and economic dimensions. Key Results: USAID support to family planning since the early 1980s has had a significant impact. Between 1984 and 1994, the total fertility rate declined from 6.5 to 4.3 and the contraceptive prevalence rate increased from 27% to 42% of married women of reproductive age. However, two decades of exceptional family planning progress in Zimbabwe now are threatened by the combined impact of the HIV/AIDS epidemic and the severe economic recession. Historically, the program focused on peer education to motivate behavior change to prevent HIV/AIDS infections. While these interventions led to nearly universal awareness of HIV/AIDS, sustained change in sexual behavior at a pace that would alter the infection rate of the disease has not been achieved. Given the disappointing results, in 1998 USAID reviewed "best practices" from other countries--Uganda and Tanzania, in particular--and made a strategic shift from HIV/AIDS peer education to voluntary counseling and testing (VCT) as the cornerstone of its revised approach to achieving behavior change. As approved in the May 1999 Country Strategic Plan, the key results of the new strategic objective are: 1) behavior change resulting from increased accessibility to quality services; 2) behavior change resulting from communications interventions; and 3) enhanced capacity of public institutions, non-governmental organizations (NGOs), and communities to implement effective programs for orphans and others affected by HIV/AIDS. Performance and Prospects: Due to its falling budget, the Zimbabwe Ministry of Health (MOH) cannot sustain family planning and reproductive health services. To become more effective, the MOH must eliminate duplication of services and use all opportunities to educate people about HIV transmission. USAID will assist the MOH to integrate HIV and sexually transmitted disease (STD) prevention into its family planning program. While the Government of Zimbabwe intended to assume responsibility for contraceptive commodity purchases, it failed to do so, due to its declining budget and the fact that currency devaluation has increased contraceptive costs by more than 100%. Thus, contingent on the MOH providing a plan that identifies other definite sources of contraceptives for the future, USAID will continue to provide contraceptive commodity support on a decreasing scale. Development Assistance (DA) funds will be used for family planning services. Five VCT clinics opened in 1999, and four more sites will be opened in the year 2000. To complement the VCT program, USAID will support an expanded information and education campaign to encourage individuals and couples to learn about their HIV status. In addition, the quality of surveillance data currently collected is inadequate; thus, USAID will help improve the system to monitor the epidemic. Condom social marketing, nongovernmental organization (NGO) capacity building and policy advocacy also will be continued. Child Survival and Disease (CSD) funds will be used to support the social marketing of goods and services for HIV/AIDS prevention, including voluntary counseling and testing. Funds will also be used for policy and advocacy work, and support to community based organizations working with orphans and others affected by HIV/AIDS. Prospects for achieving behavior change are mixed. With USAID assistance, the national AIDS policy was launched by President Mugabe on World Aids Day, December 1, 1999. However, the lack of Zimbabwean leadership continues to be a problem. As in most of sub-Saharan Africa, the disease remains highly stigmatized and the public is generally unwilling to acknowledge that a death was caused by AIDS. However, the response to the VCT centers that were opened starting in August 1999 has been more promising. Expected demand for services was based on experience in other countries. Actual demand has exceeded projections by 30%, possibly indicating a growing desire by young people for knowledge of their HIV status before making life choices about marriage and childbearing. It remains to be seen whether the VCT services will stimulate responsible behavior change. In 2001, USAID will conduct a review of the VCT program to determine its impact and the need for modifications in the program. Possible Adjustments to Plans: The design of the new HIV/AIDS program will occur in the second quarter of 2000. USAID will determine which of the interventions from the earlier program, "Reduced Fertility and Increased Use of HIV/AIDS Preventive Measures," will be retained in the new program. The new program will include a component focusing on AIDS orphans, and will be designed in collaboration with the "Economic Opportunities" program. Attention will be given to integrating reproductive health services in order to use the existing family planning infrastructure to promote HIV/AIDS and STD prevention and care services. Other Donor Programs: USAID, a leader in working with HIV/AIDS, works closely with the World Bank, the United Nations, the Netherlands and the United Kingdom (U.K.). The European Union and the U.K. are interested in cofunding contraceptives. Although donor coordination traditionally has not been strong, USAID plans to help establish a donor working group in order to increase communication and find ways to encourage greater Zimbabwean leadership in tackling the epidemic. Principal Contractors, Grantees, or Agencies: A number of U.S. agencies have implemented the HIV/AIDS and family planning programs, including Population Services International; the Population Council; the Futures Group; and PACT, Inc. Local partners include the Zimbabwe National Family Planning Council; the Zimbabwe Ministry of Health; the National AIDS Coordination Program; and the United Nations Children's Fund (UNICEF). Selected Performance Measures: Design of the new program will be completed in early 2000. The performance monitoring plan of the predecessor program will be reviewed and performance measures refined. The following key indicators most likely will be carried over into the new objective's performance monitoring plan.   Baseline Actual (1998) Target (1999) Target (2000) Target (2001) Reduction in total fertility rate 4.3 (1994) * * 4.0 * Total number of condoms sold (in millions) through HIV/AIDS social marketing programs 0 (1996) 4.5 8.2 9.0 10.0 Number of persons tested and counseled at a Counseling and Testing Center (annual) 0 (1998) 0 1,836 8,000 10,000 * Data for this indicator are collected every 4-5 years through the national Demographic and Health Survey. U.S. Finance Table (Microsoft Excel file) ACTIVITY DATA SHEET PROGRAM: Zimbabwe TITLE AND NUMBER: Access to Economic Opportunities for Disadvantaged Groups Expanded, 613-010 PLANNED FY 2000 OBLIGATION AND ACCOUNT: $2,440,000 (DA), $500,000 (CSD) PROPOSED FY 2001 OBLIGATION AND ACCOUNT: $500,000 (CSD), $2,000,000 (DFA) STATUS: New INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2005 Summary: Zimbabwe's economy has deteriorated dramatically. Inflation stands at 70%, and prices for food and other essential commodities have skyrocketed by over 100% in only one year. With over 40% of Zimbabweans living on less than US$1 a day, the already meager purchasing power of the poor has steadily eroded. To make matters worse, under- and unemployment in the cities--currently estimated at 60%--continues to increase. Each year only 10% of over 250,000 new job seekers will obtain formal employment. With interest rates approaching 70% and serious capital flight, there is little hope for increased formal employment opportunities in the foreseeable future. Government coffers are depleted, the social safety net is in tatters, and those Zimbabweans already struggling for a foothold in the economy are finding themselves increasingly marginalized. Under these very difficult circumstances--which most analysts expect to worsen before they improve--the informal sector will remain one of the few viable sources of employment and income for the poor majority of Zimbabweans. Key Results: This new strategic objective builds upon USAID's successes in providing microenterprise support to Zimbabweans since 1995 under the Broadened Ownership in a Growing Economy project. It also provides strong intersectoral linkages to the HIV/AIDS Crisis Mitigated project. Between 1995 and 1998, USAID-supported microfinance institutions increased the number of loans from 2,000 to over 13,700, while increasing the total value of the loan portfolio five-fold. The $1 million invested to date by USAID in Zimbabwean microenterprises is estimated to have reached about 10,000 individuals (each feeding a family of six or more persons). Because of this experience, USAID plans to expand significantly its microenterprise portfolio as a means of reaching the most needy. In order to redress the impact of the current economic downturn on Zimbabwe's poor, the economic opportunity special objective will encourage the expansion of microenterprise services. This will be accomplished in two ways: 1) microfinance services will be expanded into under-served peri-urban and rural areas; and 2) business development services for business groups will be provided to enhance members' management, planning and marketing skills. A component of both aspects of the program will be dedicated to helping mitigate the economic impact of HIV/AIDS on orphans and others affected by the disease. The key results will be: 1) increased access of microenterprises to financial services; 2) improved business capacity; and 3) increased training in business skills development and microfinance services to generate income, protect assets and reduce the vulnerability of groups affected by HIV/AIDS. Performance and Prospects: This special objective was approved in May 1999 as part of USAID's new Country Strategic Plan. Under the new strategic plan, USAID will refocus ongoing microfinance efforts on peri-urban and rural areas and recognize the importance of complementary business development services. Development Assistance (DA) funds will be used for microenterprise support for disadvantaged groups. Child Survival and Disease (CSD) funds will be for micro-finance and business support of groups working with people affected by HIV/AIDS. USAID was instrumental in assisting the formation of the Zimbabwe Association of Micro-Finance Institutions, a 39-member consortium of local microfinance institutions that is committed to ensuring improvements in policy, professionalism and best practices throughout the industry. The Association will be a key partner in designing and implementing the new program. USAID is optimistic about prospects for achieving results since there is great unmet demand for microfinance and related business development services. Currently, only 2% of the 1.3 million microenterprises are serviced through existing programs. USAID's microenterprise experience indicates there is strong demand for this program and excellent prospects for growth in the provision of business services. As the Zimbabwean economy has deteriorated, the demand for microfinance services has increased as the poor depend more on microenterprises as their sole source of livelihood. The importance the poor place on access to microfinance is exemplified by their loan repayment rates of 98% or higher. If the economic situation deteriorates further, the need for a "safety net" provided by the informal sector will require even greater expansion of microenterprise services. Possible Adjustments to Plans: None. Other Donor Programs: USAID is one of 13 international donors that have invested over $25 million in Zimbabwe's microfinance industry. The United Kingdom is considering an investment of $8.5 million to strengthen existing institutions, support expansion into rural Zimbabwe, and develop new microfinance products such as microleasing and risk insurance. Germany may augment its business services program and establish a microfinance facility administered through formal commercial banks. The Zimbabwean Consortium of Microfinance Donors was established in 1997 to encourage greater donor coordination. This informal association of major donors is committed to harmonizing donor policy, introducing a uniform set of best practices, and sharing information on the development of the industry. Principal Contractors, Grantees, or Agencies: Program implementation will begin in September 2000 with the award of a competitively-bid contract. Selected Performance Measures: Baseline data will be established as part of the competitive bidding process. While the indicators may change in the design process, the following illustrative indicators have been developed. All indicators will include impact on individuals and groups negatively impacted by HIV/AIDS: Number and type of groups of disadvantaged people receiving business skills/knowledge; total number of group members. Value of loans repaid and new business generated by program-related activities. Percentage change in the volume of business generated by client/groups after receiving program support. Number of new jobs created through program loans. U.S. Finance Table (Microsoft Excel file)

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