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WEST AFRICA REGIONAL PROGRAM
Activity Data Sheet
>> AFR Regional Overview >> WARP Overview Program: WEST AFRICA REGIONAL (formerly Sahel Regional Program)
Title and Number: Assist National Governments, Regional Institutions and Private Sector Associations to Identify, Clarify, and Implement Policy Options which Promote Trade and Investment in the West Africa Region, 625-001
Status: Ending
Planned FY 2001 Obligation and Funding Source: $0
Proposed FY 2002 Obligation and Funding Source: $0
Initial Obligation: FY 1997 Estimated Completion Date: FY 2001Summary: Until very recently the private sector in West Africa has struggled to survive in an environment that was either suspicious of, or actively opposed to, the existence of a viable private sector. As a result, monetary, trade, and investment policy and regulatory systems impeded the development of an active private sector so necessary to sustainable economic growth in the region. The purpose of this activity is to improve trade and investment in Sahel West Africa by strengthening African leadership and intra-regional cooperation in defining trade and investment policy and regulation in the region. Participation by both the public and private sectors is supported. USAID's role has been to provide strategic technical assistance and institutional support to enhance the voice of the private sector on key issues and bring practical applications and approaches to a non-transparent, highly politicized policy-making process. The majority of the Sahelian population and the majority of the poor are rural people who engage in livestock and crop production and related trade. Urbanization in the coastal states is occurring rapidly, and these cities and towns are the fastest-growing markets for livestock products. Thus, at least half of the 260 million people in West Africa who produce, trade, and consume local products are likely to benefit from lowered trade restrictions, increased trade, and increased economic activity. Major beneficiaries will be the rural poor, especially women, because they tend to produce the commodities with the greatest potential for increased regional trade, and poor urban consumers for whom the costs of purchasing local commodities declines. Substantial benefits should flow to women as they are responsible for purchase and preparation of food for urban household consumption, and are especially involved in the production and trade of horticulture crops.
Key Results: Since 1995 this activity has helped create two strong private sector groups, the West Africa Enterprise Network (WAEN) and the national coordination units of the Livestock Action Plan (LAP). The WAEN has grown to include 350 members in 13 countries and is now recognized by West African governments and regional organizations, as well as by international organizations, as a major voice for the private sector in West Africa. The LAP committees have established themselves as a major force for improving trade and trade regulation for the livestock sector. They now constitute a model that is being expanded to cover other areas of agricultural trade in West Africa. The private sector, local governments, and regional organizations now have access to vastly improved information on the impacts of economic policy on regional trade, especially as it impacts on the private sector and the incomes of millions of men and women in West Africa.
Performance and Prospects: The Sahel Regional Program has supported four activities: 1) the Mali/Burkina Faso/Côte d'Ivoire/Ghana/Togo LAP, 2) the WAEN, 3) an analytical activity of the Permanent Interstate Committee for Drought Control in the Sahel (CILSS) on regional trade policy harmonization; and 4) and better coordination of regional economic programs among CILSS, the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU). Some of these activities will be supported under the new WARP regional program.
Livestock trade between the Sahel and coastal markets is a critical source of income to millions of rural Sahelians. USAID helped establish a collaborative effort, facilitated by CILSS, among the governments of Mali, Burkina Faso, Côte d'Ivoire, Ghana and Togo and their respective private sectors to reduce tariffs and taxes on livestock trade, simplify export licensing and other documentation, and improve market information on livestock trade in the region. From 1993 to 1998, farm-to-butcher marketing costs have been under 29%, meaning that farmers receive in income 71% of the coastal market price. The LAP is now fully integrated into and managed by a CILSS policy project. Livestock producers and traders and national governments have continued to strengthen and expand the organizations and programs started under the LAP. Each CILSS member country now has a "Coordination Committee" which serves as an interface between the private sector and the government to deal with easing formal and informal barriers to regional trade of locally produced agricultural commodities (mainly livestock, fruits, and vegetables). The collaborators in this activity agreed in 1998 that they needed to have more information on costs and sources of costs and inefficiencies (import duties and regulations, for example) in the transportation system in the region. A study of the system was completed in 1998. Findings and recommendations were discussed in 1999, with implementation of recommended actions now taking place. The SRP believes that a viable level of sustainability has been achieved and this activity will not be continued under the WARP.
USAID technical assistance has helped the WAEN grow into a self-supporting organization with chapters in 13 West African countries and a total of about 350 members, most of whom operate small businesses. This enterprise network concept has now been expanded, through a multi-donor support mechanism of which USAID is a member, to eastern and southern Africa. The WAEN continues to be recognized (by multilateral donors such as the World Bank, and regional organizations such as ECOWAS and WAEMU), as a strong private sector voice in the policy dialogue. An effort to strengthen the link between American and West African business began in 1998 with funding from the Sahel Regional Program and the Africa Trade and Investment Program. The linkage has been formalized between the Corporate Council on Africa and the WAEN. This activity was revised in 1999 to better emphasize operational business linkage operations between West Africa and the United States, and the target population was enlarged beyond WAEN members. Support for this activity will continue under the WARP.
In mid-1997, USAID helped create an informal group called the Forum of West Africa (FOWA) to strengthen coordination among the WAEN and the three major regional institutions in West Africa - WAEMU, ECOWAS and CILSS. A more detailed agenda was established in 1998, one which includes sharing information to better harmonize trade and monetary policy formulation and implementation, and giving the private sector a stronger voice in identifying and resolving issues inhibiting regional trade in West Africa. Participants agreed in 1998 to establish a mechanism (information collection by the private sector with assistance from CILSS) to monitor trade barriers, and WAEMU and ECOWAS agreed to insure this information is made available to decision makers and to follow up with measures to correct problems. Steps to make this mechanism operational were started in 2000. An assessment is currently being carried out to determine types and levels of subsequent intervention under the WARP.
If food security in the Sahel is to be increased, then economic performance must improve by expanding markets for agricultural and industrial goods. This requires that governments pursue some form of economic cooperation. To achieve greater intra-regional trade volumes and reduced transaction costs, USAID supports negotiation of inter-country reforms at regional fora and analyses of monetary and trade issues of importance to West African countries. Activities in 2000 supported African stakeholders to identify and address policy and regulatory impediments affecting agriculture and commerce. USAID works to bring all stakeholders together. It particularly assists public-private sector planning and implementation of mutually agreed reforms. USAID provides technical assistance and strategically targeted direct support to ensure that the negotiations occur and that progress is made.
Possible Adjustments to Plans: Activities for Other Donor Programs: Direct support to the LAP has been incorporated into CILSS's trade policy activity to which Canada, France, the Netherlands and the United States contribute. Donor support for West African regional economic integration comes primarily from the European Union and France. The European Union and France are, for example, the main source of support to WAEMU. The European Union had been the primary source of support for ECOWAS. USAID complements other donor support to WAEMU and ECOWAS actors in the policy arena with its support to the private sector voice, the WAEN.
Principal Contractors, Grantees, or Agencies: Activities are implemented through grants to CILSS, and via grants and contracts between USAID and U.S. entities, including the U.S. Department of Agriculture, Michigan State University, the Corporate Council on Africa, The Mitchell Group, and Associates in Rural Development.
FY 2002 Performance Tables
Performance Measures:
Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan) Indicator 1: Number of countries which use comparative advantage as a basis for setting trade policy 7 8 8 8 8 NA NA Indicator 2: Marketing costs for major commodities in regional trade reduced 11% 11% 12% N/A 15% NA NA Indicator Information:
Indicator Level (S) or (IR) Unit of Measure Source Indicator Description Indicator 1: S Number of countries Based on data from CILSS, USAID and other donor research, and network activity reports. Number of countries which have policies and implement regulations which do not restrict trade (imports and exports) of inputs and primary commodities. Indicator 2: S Percent reduction in transaction costs from the 1993 base year Based on data from CILSS, USAID and other donor research, and network activity reports. Indicator is a measure of change in marketing costs associated with regional trade of major commodities. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 2,683 DA 1,350 DA 1,333 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 6,375 DFA 6,375 DFA 0 DFA Fiscal Year 2000 3,581 DA 1,404 DA 0 CSD 0 CSD 300 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 6,264 DA 2,754 DA 3,510 DA 0 CSD 0 CSD 0 CSD 300 ESF 0 ESF 300 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 6,375 DFA 6,375 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 0 DA 0 DA 6,264 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 300 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 6,375 DFA
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Last Updated on: May 29, 2002 |
