Updated Africa Trade and Investment info.pdf

USAID AFRICA TRADE AND INVESTMENT PROGRAM1

ABOUT - USAID’s proposed new Africa Trade and Investment Program will advance Prosper

Africa’s goals to boost trade, increase investment, and support business-friendly policy reforms.

Its team of transaction advisors will work closely with U.S. Embassy Deal Teams across Africa to identify and close deals. The program will complement the U.S. Government’s trade and investment tools through customized services – from business consulting and transaction facilitation to targeted policy interventions.

WHAT’S NEW -Through a continent-wide approach, with satellite offices supporting North and sub-Saharan Africa, the new program will provide well-coordinated services aligned with private sector needs.

IMPACT - For every $1 of public funding, this program is expected to leverage more than $9 in private investment – delivering billions of dollars in exports and investment and yielding hundreds of thousands of African and American jobs by 2026. About 80% of funding will provide subcontracts and grants under contract directly to private sector actors. Linking

USAID’s funds to private sector capital will derisk transactions, scale opportunities, and attract firms to the African market.

SAMPLE SERVICES

● Business to Business (B2B) and Investor Matchmaking – for example, organize sector specific trade shows that bring African and U.S. companies face-to-face, including virtually, to establish relationships, encourage investment in shared value-chains, increase sourcing, and grow exports.

● Transaction facilitation – for example, provide a corps of private sector experts working with

U.S. Embassy Deal Teams to identify, evaluate, and structure opportunities so U.S. and

African companies can invest and grow their businesses together.

● Support African exports under the African Growth and Opportunity Act (AGOA) – for example, help African firms access working capital and export finance so they can increase production to meet U.S. demand and reduce the cost of exporting to U.S. stores.

● Targeted reforms – for example, provide direct technical and legal assistance, in collaboration with the U.S. government, to help firms, governments, and industries propose regulatory reforms that will remove restrictions, advance specific deals, and open sectors for more investment.

1 Formerly titled Transformative Trade in Africa

FREQUENTLY ASKED QUESTIONS

How will the new program work with U.S. Embassy Deal Teams?

The program’s private sector experts will help Deal Teams identify potential deals and provide basic due diligence to ensure that Embassies are focusing resources on the deals with the greatest potential for impact. The program will also support Embassies to track and assess existing deals.

How will decisions be made on Prosper Africa resources and how they are allocated?

Prosper Africa resources will be focused on countries, sectors, and deals with the greatest potential for impact, in line with U.S. foreign policy and the goals of the initiative.

Will there be physical locations for businesses to seek assistance?

There will be offices on the continent, locations to be determined, as well as a team in

Washington, D.C. These regional offices will provide flexibility to expand and contract in response to current opportunities. USAID bilateral Missions may buy in to establish country-specific offices.

Will other agencies be able to buy in or access program services?

This program will support the whole-of-government Prosper Africa initiative. Other U.S.

Government departments and agencies may transfer funds to USAID to provide added support for specific bilateral or regional priorities.

How will activities be determined?

Activities will be determined by three main factors: 1) Market Analysis, including tracking B2B and African government procurements, and direct engagement with businesses and investors, as well as input from Deal Teams; 2) Private sector identification of need or opportunity, especially where businesses and investors are willing to commit their own resources; and 3) The requirements of the funding source for an activity, which may specify a particular sector, country, or development goal.

How will the program avoid distorting markets?

The program is private sector driven. Activities will be determined by opportunities and priorities identified with the private sector and will be implemented through grants under contract or subcontracts directly to the private sector.