Statement by Secretary of State Clinton, October 16, 2011Footnote 1
Secretary Clinton. Today we remember the founding of the Food and Agriculture Organization and re-commit ourselves to ending global hunger. Food security is a foreign policy priority for the United States. We must continue to find new and innovative ways to get food into the hands of more people.
Rising food prices earlier this year added millions to the nearly one billion people worldwide who suffer from chronic hunger. Today in the horn of Africa, more than 13 million people are affected by a severe drought that has led to a food emergency and a refugee crisis, compounded by terrorist group al-Shabaab's complete disregard for fellow Somali citizens by blocking the delivery of humanitarian aid. This is the most severe humanitarian emergency in the world and it is critical that the international community continue to work to ensure families have access to adequate food and the resources to purchase it.
The United States will continue to provide food aid during these crisis situations, but long-term solutions to food security must be treated with the same sense of urgency. That's why the Obama Administration started our Feed the Future Initiative. Through it, the United States government is working with partner countries, civil society, the private sector, and other stakeholders to improve access and availability to nutritious food. And we are teaching families how to ensure their own food security, so that someday help from donors will no longer be needed.
While we recognize that food security cannot be achieved overnight, we are committed to taking steps in the right direction. We have the know-how, the tools, resources, and, increasingly, the political will to rise to this global challenge. If we unite as an international community and stay focused on both the challenges and opportunities, we will help more people around the world realize their God-given potential.
Excerpts of Remarks by Secretary of State Clinton, October 24, 2011Footnote 2
Secretary Hillary Clinton gave these remarks at a discussion in Washington, DC with Bill Gates, Howard G. Buffett, and Josette Sheeran
Ms. Sheeran. Well, we'll give you your chance now. Secretary Clinton, I know that you want to listen and not speak, but before we let you off the hook, this is the 50th anniversary of the creation of the World Food Program. It was created with the idea that peace cannot be built on an empty stomach, after the experience of a war-ravaged Europe was stalked by hunger and malnutrition, and the power of interventions to transform countries and stability. And it's still going strong, but it's been rare in our history that we've seen a foreign minister, and then presidents and prime ministers, get behind the fight for the hungry, and then such transformational business leaders as this. So the powerful alliance here on the stage really marks a moment in time here, and we want to thank you for bringing us all to the State Department and for bringing the fight to hunger right here. So thank you.
Secretary Clinton. Thank you for that. Thank you.
Ms. Sheeran. And I would just like to ask each of you, to open, why should this be the business of foreign ministers, presidents, and prime ministers, G8s and G20s? And why are you hopeful, why did you personally get involved in the fight against hunger?
Maybe Bill?
Mr. Gates. All right. Well, Howie's the farmer here, so he can speak the knowledge. I'm the city boy on the panel. For me—
Mr. Buffett. He's done okay—
Mr. Gates. For our foundation, as we looked at what the great inequities are, we really kept coming back to health and agriculture as the two that topped the list. Whether you look at the nutrition needs that, if they're not fully met, mean that a child doesn't develop their full potential and the kind of economic impact that has, or if they have childhood diseases, and that tends to interact with—if you have diarrhea, you have malaria fevers, you're not getting enough food, that makes things even tougher. It raises the chance of dying. It raises the chance that you'll have some lifelong disability. And we were able to see that if you can raise these incomes, then farmers will choose to send their kids to school. And it changes livelihoods very quickly. I think it's a World Bank study that said that of all the different development dollars, the one that has the most immediate impact on poverty reduction is investment in agriculture.
Now, of course there's a time scale here. There's the acute needs, like we're seeing in the Horn of Africa right now, that are very, very important. And WFP takes the lead on those and does a fantastic job. Then there's the longer-term issues of creating the seeds, the soil improvements, the delivery systems so that farmers can have this increased productivity. And I was pretty stunned to see the gap in productivity between different locations within Africa or between Africa and the United States. And so the potential really is there.
For the urban poor, our food productivity is going to mean more food security, less volatility in prices. And food is a major part of their budget, unlike in rich countries where we sort of—food is such a small percentage. For them, not only are they not able to buy as much as they want, but instability is actually one of the results when you have food price spikes coming along.
So the idea that we could back some scientists, we could back people in country—particularly in Africa, which is where the focus of our work is—it looked like an intervention that had big payback. Some of it's been dairies, some coffee. The bulk of it has been staple crops because those are quite important. There had been some underinvestment in this area. About four years ago, the world sort of looked around and said that food aid and agriculture investment had come down, and that really was a mistake. World Bank and others decided, okay, we need to rev that back up. And so a lot of energy's been put into it. Unfortunately, it comes at a tough time for increasing these amounts, but some new money is—has come into it. And I'm quite optimistic that we can raise productivity and have pretty dramatic effects because of that.
Ms. Sheeran. Howard.
Mr. Buffett. I think when you ask the question why would a prime minister or president care about this, it's pretty simple: self-interest. A hungry country doesn't do very well. And so I think that at some point, anybody that has much of an IQ in a leadership position figures out that they're going to have a problem. And we've seen it really surface in the last two or three years with 30 countries having food riots. We've seen a lot of activity even more recently—again recently. And I think it's just self perseveration at some point. So I think there's a self interest that drives it.
How we got involved in agriculture is a little less sophisticated than how Bill got involved it. But I remember back in 1992, Dennis Avery said to me, “Howard, no one's going to starve to save a tree.” And I thought about that for a little bit. And I had been going around the world very engaged in conservation, and all of the sudden, I stopped looking—when I was on the Sarengeti, I thought I'm going to go meet these leaders of the villages and I'm going to see what their problems are. And so Dennis's statement drove me in a very different direction.
And then we spent about a decade funding programs a certain way, that is more the traditional development way. And Jerry Steiner, who may be here somewhere—Jerry took me down to a project that they have in Chiapas, Mexico, and I realized just kind of like what I'd heard 15 years earlier. What I saw there was that there was a better way to do this. I always kid Bill because he's always got a book under his arm and he reads more books than I could ever read, and he figures it out by reading it, and sometimes I have to see it. And Jerry took me and saw this, and I thought we have to do this differently. Our money, our investment, can be leveraged in a different way, and we can get better results than what we're getting. And we just weren't doing it the way we needed to do it. And it was a great opportunity for me to say we need to change how we do it.
But agriculture to me has been—I mean, it's been most of my life. And my mom always says I didn't have enough Tonka Toys when I was a little boy, and so I have big tractors now, I guess. I don't know.
Ms. Sheeran. And Secretary Clinton.
Secretary Clinton. Josette, I think that what Bill and Howard said is really at the core of it. I mean, for a country like our own, I think there are four baskets of considerations, basically; one, the moral and humanitarian. It is the right thing to do. If you come from a country as blessed as ours, with the resources we have and the food we take for granted, it is an obligation to try to help those who are in need.
Secondly, the security and strategic considerations that are certainly evident as you listen to both Bill and Howard, the fact that hungry people and hungry countries and poorly managed agricultural systems lead to all sorts of problems that not only cause misery within but very often without as well. So you have refugee flows; you have poor agricultural practices that destroy top soil, create erosion, accelerate the impact of climate change, cause conflict; as the Vice President said earlier, Darfur, which is a classic conflict between pastoralists and herders. And so strategically, you have a ripple effect and repercussions that keep rolling and don't stop in one localized place where people are suffering and hungry and where their land is poorly managed or not producing, or where whether is not cooperating.
Thirdly, there are historic reasons. I'm very proud of the role that the United States played in the ‘60s and ‘70s with the Green Revolution in India and elsewhere, which had a tremendous impact on creating the conditions for people to take care of themselves with the right investments and the right inputs and tools. And then we moved away from those front-end investments and really moved a lot of our agriculture and hunger and food investments to the back end, where we kind of waited for disasters and crises and failures to occur. And when this Administration came in, we thought that doesn't add up. I mean, we ought to get back into the business of helping to improve agriculture, focus on who produces most of the food, recognizing that we're going to have to produce about—last figure I saw—70 percent more food in the next 20 or 30 years to keep up with population growth and to make it affordable and accessible.
And then the final considerations are the pragmatic, practical ones, is we know how to do this. I mean, we do have a lot of really good knowledge and skills that can be shared if we go about it in the appropriate way. So I think for all those reasons the Obama Administration really, right off the bat, decided that we wanted to take a look at our food and nutrition programs, our agriculture programs, and try to begin to sort out what worked, what didn't work, emphasize the former, not the latter, build a broader international consensus.
I mean, Josette has done a terrific job at the World Food Program, sort of making the case, being an advocate for the program. Yes, it was born of the disasters of World War II and the great hunger that swept across so much of Eurasia and killed many millions of people. But it's also true that this institution needed more partners. It needed a better international consensus about what could be done and what would work. So I'm very proud of the fact that we've made this decision, we have realigned our priorities and programs, and I think we're better positioned to be effective in our efforts.
Ms. Sheeran. Thank you. And today we're honoring the commitment that both Bill and Howard have made to Purchasing for Progress, which was really a simple idea to say if we're purchasing 80 percent of the food we purchase, WFP and other partners in the developing world, can we involve the very farmers who would be hungry and dependent on food aid because they can't connect to markets to help supply that food and help feed the world? It requires very patient—it's a more patient market, P for P, and that it can work with these farmers. But I'd like to ask each of you why you decided to support P for P and what you think its promise and potential is?
Mr. Buffett. Well, patience isn't in my vocabulary. But I think for me it kind of evolved, spending a little time in Guatemala with Villam, spending a time in Zambia with David Stevenson, both country directors at WFP, seeing very similar activity to this. And as I said earlier, Josette, it took the leadership at the top of WFP to make it happen. And it wasn't very hard for me to figure out that this was a great idea. And it didn't take me too long to see that this was something that we should support.
One of the things that we've struggled with for a long time was, as we supported projects, we could never see or figure out what's the exit strategy, I mean what gets us—when we leave, we go home, the money's gone. And slowly I realized that—I'm a slow learner—but I realized that the market is an incredible exit strategy. And with WFP's ability to leverage the purchasing, we could really have an impact on not just large numbers of farmers, but we might be able to set up a model that, with certain modifications, could be transferred to different parts. And it truly moves farmers into a competitive environment with the tools so that they can compete long-term. So when I saw all of that, it wasn't very hard for me to think this is something we really should be supporting.
Mr. Gates. Yeah. I totally agree with that. The thing we saw is that when you look at food aid, you want to be as responsive as possible, and so having all of it come many thousands of miles away isn't going to be—shouldn't be your only source for that food, and increasing aggregate demand in Africa for the farmers who were doing well seemed like a very positive thing. But I think the biggest thing is more qualitative, which is that a lot of the small holders, in terms of how they store their output, how they maintain the quality of that output, have not—nobody has worked with them so that they can sell into the bigger markets.
If you take the rice market in Nigeria— Nigeria is a gigantic importer of rice. They actually have a goal over the next four years to not—to be able to be self-sufficient in rice, and they should be if you just looked at the acreage they have. But a lot of is that the post-harvest processing, the kernels get broken, they get a lot of dirt and sand in with the rice, and compared to the almost perfect rice coming out of Asia, there's not a willingness to buy it.
And so having a sophisticated buyer like WFP, who because of the funds from the Buffett Foundation and ourselves could go in there and take the time to help either create cooperatives or to work with them, make a commitment so that they can buy the equipment or invest in new storage techniques, even when WFP's not there as a buyer, these people have learned how to sell into a much broader market. And that's a great thing for Africa. It's a great thing for these farmers. And we certainly have seen even in these first few years some significant success in drawing farmer into commerce that were not participating before.
Ms. Sheeran Secretary Clinton, it has always struck me that hunger can either be seen as a huge problem or a huge opportunity, because everyone has to eat, and it creates jobs up and down the value chain. And one thing that you have done with Raj Shah and others is to really focus on the private sector partnerships. I'm just looking at BCG's work and Yum! and so many others here in the audience. We have—private sector, raise your hand. We have so many partners here that now are being brought into the fold. But what is the power—the transformative power that you think and potential of these new alliances to tackle age-old challenges like hunger and malnutrition?
Secretary Clinton. Well, I think it builds off of what Howard just said. I mean, you want to create a market. You want to be able to create enough demand and quality supply so that people are able to move forward themselves. And for a lot of reasons that the experts in the audience know far better than I, there have been so many disruptions and difficulties in so many places in the world in doing just that. So I think our private sector companies, some of whom are represented here, have expertise, have the skills, have the investment, to really help the whole supply chain improve. And I don't think there's any way we can anticipate meeting the needs of the current and future population unless there's a heavy, market-driven component.
So much of what we've tried to do is to latch up the aid and investment sides of the equation. And what both Howard and Bill do so well is they straddle that. They're able to bring both sides together. We've been working in so many countries to persuade them to open up their own markets to our large companies that will bring expertise, which they currently do not have. And Bill mentioned the whole issue of storage. I mean, it's a nightmare in so many countries. I mean, you have the problems that Bill talked about in Nigeria. Well, India, 40 percent of the harvest is lost because there is no storage system, both either dry or cold storage.
So I think bringing in private sector partners, who understand what a quality supply chain looks like and how a market can grow once you have competitive products that are going to be affordable in the local market and then maybe even available for export, is absolutely essential to how we see the vision of Feed the Future.
Secretary Clinton. Well, I recall when you started this emphasis with P4P and both the Gates and the Buffett Foundations’ requirement that half the recipients be women, there were a lot of people who say, “Why? Why would you make that? That seems like political correctness.” And there was an enormous lack of knowledge, I guess is the most polite way I can say it—about the fact that 60 to 70 percent of the people who labor in the fields are women. And they are an invisible part of the economy and certainly of agricultural production. I'm sure that Bill and Howard have had the same experience I've had in talking with ministers of this, that, and the other in many countries, and talk about focusing on women smallholder farmers. Why? What does that have to do with producing enough food to feed our people and keep the prices down and all the rest of it?
So I really give the three people up here and their able teams a lot of credit for helping to push into greater visibility with those of us who work and care about this area know, which is if you don't focus on women, if you're trying to improve agricultural production, and really the whole chain in access and affordability, we're not going to be successful. So it's not only the smart thing to do, it's the right thing to do. And it is harder to empower women. Often they don't own the land that they farm. They're often pushed off the land if their husband dies and they have no stake in it, even though it was their sweat labor that produced whatever was produced. They are not part of organizations. They are often denied other rights, like for credit or other kinds of support that are needed to be successful.
And so anything we can do to raise their visibility and make them be seen as valued partners in countries where we are working is going to be beneficial to the overall project's possibility of success.
Mr. Gates. Well, definitely when you raise the income on the crops that the woman's involved in, it directly maps to improvement in food for that household and the money is just spent in a better way. So not only are they the majority of the actual agricultural hours, but when you help them, you get a lot more impact. And we just need to understand why there's this separation of roles and how our interventions can offset the tendency to focus on the male roles as opposed to what the women do.
Press Release from the U.S. Trade and Development Agency, November 10, 2011Footnote 3
To support the implementation of water management projects in South Africa, on November 5-17, 2011, USTDA is hosting a reverse trade mission for country officials directly involved in the environmental initiative.
The RTM included two roundtable discussions at USTDA's Arlington, Va. Headquarters, which focused on finance and regulatory issues in mine water management. The South African delegation, which included government officials from the National Treasury and Department of Water Affairs as well as mining company executives, also met with U.S. federal agencies and members of U.S. private sector with expertise in mining environmental policy development, finance and regulatory affairs.
Currently, South Africa is investing in advanced processes and technologies to reduce the cost and amount of water resources required for the country's mining activities. The country also faces rising acid mine-water drainage levels in certain regions, which they plan to mitigate through procedures and processes like those presented during their U.S. visit.
Petrus Matji, South Africa's National Treasury public finance director, was among the delegates attending the round-table and RTM. He said the visit will aid his country in implementing an institutional funding model that will allow the South African government to more effectively respond to mine-water issues.
“By interacting with the U.S. government agencies and other colleagues, we're hoping to learn more and refine what we've already conceptualized,” Mr. Matji said. “We have a very good mix of private sector mining companies, entities and departments that we've brought together here with a common goal and understanding to move forward.”
Roundtable Discussion Kicks Off U.S.-South Africa Visit
Following the roundtable discussion, the delegation will spend the next several days meeting with U.S. government agencies and companies to explore state-of-the-art mine water treatment facilities, equipment and services. The delegation will travel to Denver, CO; Salt Lake City, UT; and Elko, NV, for their visits.
Michael DeRenzo, USTDA Sub-Saha-ran Africa region country manager, helped to organize the roundtable and RTM. He said that the delegation visit was a great opportunity to demonstrate USTDA's mission and a great example of the mutual benefits USTDA seeks with its partnership programs.
“We have an opportunity to partner the delegates with technical experts, financiers, policy makers and U.S. technology suppliers to work together on mine water management issues. The visit is a great opportunity for the agency to showcase what it does,” Mr. DeRenzo said.
Press Release from USAID, November 14, 2011Footnote 4
The U.S. Agency for International Development (USAID) will convene youth from the Middle East and North Africa (MENA) in Casablanca, Morocco, November 14-17, for a conference titled “Our Voices, Our Communities: Emerging Role of Arab Youth in Development.”
A total of 120 youth civil society representatives and USAID staff will gather to discuss challenges and opportunities in economic growth, environment, education, and youth participation in these sectors. Youth participants from Egypt, Iraq, Jordan, Lebanon, Morocco, Tunisia, West Bank/Gaza, and Yemen were selected from an open application process and represent individuals who are active in community development work that is focused on helping find solutions to development challenges.
This meeting will provide young participants with the opportunity to engage in a dialogue on community development priorities, to exchange views with stakeholders on effective development approaches, to comment on key areas of USAID involvement in the region, and to build networks with other young participants from the region.
Nearly 65 percent of the population in the MENA region is under the age of 30; and about 30 percent of the population is between the ages of 15 and 24. The youth population is a potentially valuable partner for USAID across the MENA region, as they will shape the trajectory of countries in transition and will be crucial to developing sustainable democratic institutions and building prosperous economies.
“We are eager at USAID to learn from young people about what they see as the development challenges they face, and how they are engaged in meeting these challenges. As we move forward with our work, hearing from those critical civil society representatives will help us to be more effective,” said Mara Rudman, Assistant Administrator for USAID's Middle East Bureau.
Built from youth input and feedback, the conference agenda will include facilitated discussions, working groups on specific topics (education, economic growth, environment, and youth participation and policy), and site visits to view and engage with relevant development programs. Activities will also include a cultural night and a “Souk of Ideas,” in which participants can set up a visual display to share their community development work.
Press Release from the U.S. Trade and Development Agency, November 18, 2011Footnote 5
President Obama and his counterparts from the Association of Southeast Asian Nations (ASEAN) announced the U.S.-ASEAN Connectivity Cooperation Initiative, to be implemented by the U.S. Trade and Development Agency (USTDA) in cooperation with the U.S.-ASEAN Business Council and its member companies. By launching this Initiative, USTDA is forming a partnership between the U.S. government and U.S. industry that will play a vital role in accelerating the region's economic integration and strengthening ties between our nations.
The Initiative will expand U.S.-ASEAN cooperation and commercial engagement in three areas: energy, transportation, and information and communications technology (ICT) connectivity across the ASEAN region. Leveraging U.S. private sector resources and expertise, USTDA and ASEAN partners intend to support activities such as reverse trade missions, feasibility studies, technical assistance and workshops that foster effective new partnerships between private sector and government entities to increase connectivity and investment in the three sectors. With a population of approximately 580 million and a combined GDP of $1.5 trillion, ASEAN is the United States’ fourth largest export market and a key market to facilitate long-term economic development that is mutually beneficial.
The Connectivity Initiative is designed to support ASEAN's goal of fostering greater connectivity to achieve an economically integrated ASEAN Community by 2015. This vision includes enhancing connectivity in Southeast Asia in three core elements: developing physical infrastructure; streamlining institutions, mechanisms, and processes; and expanding people-to-people ties across the region.
“ASEAN is a critical venue for U.S. exports, and USTDA will continue to promote U.S. export opportunities as well as development of key infrastructure in Southeast Asia by supporting this Initiative,” stated USTDA Director Leocadia I. Zak.
Statement by Secretary of State Clinton, November 19, 2011Footnote 6
Secretary Hillary Clinton made these remarks in Bali, Indonesia
Introductory Remarks Omitted
Secretary Clinton. The MCC embodies the United States’ commitment to work in partnership with nations around the world to support economic growth and deliver results that make a difference in people's lives. So it is an honor to join the finance minister and so many other distinguished ministers, representatives of the Indonesian Government, ambassadors, and friends of—in the Indonesia-United States comprehensive partnership. This signing will further deepen the relationship between us. And I am very committed to doing all that we can to make sure that this compact represents the very best of that partnership.
As you know, the MCC and the Government of Indonesia have worked for almost three years to develop this $600 million compact, one of our largest ever, to reduce poverty and promote economic growth hand-in-hand with the Indonesian Government and people. This is truly a milestone for us all.
The size and scope of this compact over the next five years makes it an essential part of the U.S.-Indonesia comprehensive partnership that our presidents launched one year ago. The three projects in this compact reflect our shared values, and Indonesia's priorities. And each support the economic and development pillar of our comprehensive partnership.
First, green development and efforts to mitigate climate change have long been rich areas of cooperation between our countries. We both understand that unsustainable land use practices threaten natural resources. Illegal logging, polluting of water resources undercuts Indonesia's long-term economic growth, as does a lack of access to affordable, reliable electricity. So we want to work together to find ways to foster low carbon development in local communities. And I mentioned to the ambassador to the United States that I was so impressed by President Yudhoyono's composition lauding the efforts on behalf of climate change and cooperative commitment to preserving the great beauty of Indonesia at the gala dinner last evening.
Under this compact, over half of the 600 million is devoted to the Green Prosperity Project. This will help provide viable renewable energy alternatives, and help support natural resource management. While we see this as an end in itself, we are particularly excited, because we think that rural people will be able to raise their incomes while reducing their reliance on fossil fuels and on logging. And it will complement Indonesia's efforts to meet its international commitment of reducing projected greenhouse gas emissions 26 to 41 percent by 2020.
I am also pleased that Indonesia will have the first-ever MCC compact with a focus on early life nutrition. Ensuring adequate nutrition during the 1,000-day window from a woman's pregnancy to a child's second birthday is the single most effective investment we can make in a child's physical and cognitive development. The scientific research is overwhelmingly clear: If you want a healthier, better educated workforce, it starts in those very early months of life. And ultimately, an early focus on nutrition can reduce poverty, promote broader prosperity, and improve the security and stability of communities and nations. Indonesia is already making critical investments in this area, and we welcome Indonesia's strong interest in joining the UN-sponsored SUN, Scaling Up Nutrition, movement. The Scaling Up Nutrition movement, called SUN, helps countries target under nutrition more effectively, and reach more people by coordinating investments, resources, and programs.
The Community-Based Nutrition to Prevent Stunting Project that we will be working on under the compact recognizes the importance of this investment, and that it pays dividends for generations. This project is expected to help as many as 2.9 million children and their families in 7,000 villages where the rates of childhood under-nutrition and stunting are especially high. We are very eager, not only to partner with Indonesia, but to learn from Indonesia's progress, and together to help carry these lessons on to mothers and children all over the world.
The third leg of this compact reflects Indonesia's commitment to being a leader in open and transparent government. The Procurement Modernization Project will support two of Indonesia's presidential regulations to reform and improve the government's system for making purchases on behalf of the people, everything from office supplies to maintenance contracts. We thinking, working with our Indonesian partners, that this proposal has the potential to save as much as $15 billion annually for the government and people of Indonesia, and it will help develop the Indonesian Government's human resources by supporting career paths for civil servants who have the authority and incentive to do their jobs well.
And Indonesia, as one of the co-founders of the Open Government Partnership and a member of its steering committee, is positioned to really help demonstrate modernizing government practices to countries not only throughout the region but far beyond. Open government practices save money, reduce corruption, improve efficiency and accountability, and produce results for citizens. And we think Indonesia will help shape the international community's thinking on procurement reform.
So, each of these projects represents a significant step forward in our partnership, and we are so excited about this Millennium Challenge Corporation's compact. I look forward to signing it in just a few minutes with my counterpart, Minister Martowardojo, and I invite him now to please take the podium to share his thoughts. Thank you.
Press Release from USAID, November 22, 2011Footnote 7
The U.S. Government expanded its loan financing program in Ethiopia through the United States Agency for International Development (USAID) Development Credit Authority (DCA). USAID and the Bank of Abyssinia, NIB Bank, and Zemen Bank signed two new agreements today which will offer greater access to credit for projects in the agriculture and health sectors. The agreements allow for up to $20.7 million in loans to private health sector enterprises outside of Addis Ababa and small holder farmers and farming cooperatives.
By sharing the risk and offering incentives, the DCA encourages commercial banks to lend to non-traditional clients in sectors that may not have access to capital. By providing access to loans for the first time, it gives the non-traditional clients the opportunity to demonstrate their reliability as borrowers possibly leading to future loans and ventures.
The first USAID DCA agreement in Ethiopia started in 1999 with Abyssinia Bank, supporting small and medium agricultural enterprises. To date, USAID's DCA program has helped leverage more than $47.8 million dollars for over 200 businesses in Ethiopia, improving agricultural exports, agro-processing industries, and supporting diaspora and femaleowned businesses.
Funded by the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), the new health sector loan agreement with the Bank of Abyssinia and NIB Bank will provide up to $13.4 million dollars in loans to private health sector enterprises outside of Addis Ababa, particularly those offering HIV/AIDS and tuberculosis (TB) services. These loans will enable clinics, pharmacies, and hospitals to make quality improvements and expand services that support public health goals.
The agriculture sector loan agreement with the Bank of Abyssinia and Zemen Bank makes it possible for small holder farmers and farming cooperatives to purchase agricultural equipment and machinery- such as tractors, harvesters or irrigation systems—through lease financing arranged with the banks. The agreement, worth approximately $7.3 million dollars in potential loans, reduces collateral requirements by 50 percent and encourages partnerships between agricultural equipment suppliers and private commercial banks. The program will benefit farmers and cooperatives operating in the 83 woredas targeted for value chain expansion under Ethiopia's Agricultural Growth Program and the U.S. Feed the Future Initiative.
USAID Ethiopia Director Thomas Staal stated, “The partnerships we celebrate today will not only boost productivity and growth in the agriculture and health sectors, they will increase employment possibilities and generate income. They will build the capacity of banks to lend to non-traditional clients. I have no doubt that the loans will boost an already growing national economy.”
Press Release from the U.S. Trade and Development Agency, November 23, 2011Footnote 8
Today, USTDA awarded a grant to the Cartagena Water and Sewerage Company (known as ACUACAR) for technical assistance on the start-up of the new, comprehensive wastewater treatment system for the city of Cartagena. The grant was signed on behalf of USTDA by Senior Commercial Officer Cameron Werker, and on behalf of ACUACAR by General Manager Francisco Pérez Tena.
USTDA Director Leocadia I. Zak stated, “USTDA is proud to partner with ACUACAR on this project, which will leverage U.S. expertise to have a tangible impact on public health and the environment in this key tourism destination and port city.”
ACUACAR is a public-private enterprise, which provides potable water and sewerage services in Cartagena. The $513,000 grant will support the integration of existing wastewater subsystems; the startup of a new wastewater system; the creation of an environmental water quality baseline assessment; and the design of an ongoing water quality monitoring program, including recommendations for environmental remediation in an adjacent sea inlet. Additionally, it will also assist with designs for the expansion of the water and wastewater treatment system in the city, especially as it relates to automation and control, monitoring and equipment necessary for operations.
ACUACAR plans to contract for the design and subsequently the construction of a new potable water plant immediately south of Cartagena, which would have a capacity of 160,000 cubic meters per day, thus increasing the system's capacity by more than a third.
This technical assistance activity will provide significant opportunities for the involvement of U.S. firms in the expansion of the water and wastewater treatment system in the city of Cartagena. The selected contractor will organize a workshop in Cartagena to disseminate best practices in water and wastewater treatment in Colombia, with an emphasis on modern treatment technologies, automation, control, monitoring, and engineering and environmental services. Further information about submitting a bid for the opportunity to conduct this technical assistance will be posted on USTDA's website (www.ustda.gov) and on the Federal Business Opportunities website (www.fbo.gov).
Statement from USAID Administrator Shah, November 28, 2011Footnote 9
Dr. Rajiv Shah, Administrator of the U.S. Agency for International Development (USAID), and Rt. Hon Tony Blair, founder of the Africa Governance Initiative (AGI), issued the following statement on the upcoming high level development forum in Busan, Korea.
We are optimists about Africa. Today, Africa offers opportunities one could scarcely imagine a generation ago. The continent is on the move.
Economies are growing, creating jobs and improving livelihoods. Over the past decade, eight economies from Sub-Saharan Africa have more than doubled in size. Foreign direct investment increased fivefold from 2000 to 2010, domestic revenues have grown, and aid dependence fallen. Demand for African resources, if managed transparently and effectively, holds the potential to transform the economies of Africa.
Political progress is no less remarkable. As the Cold War and Apartheid both came to an end, the number of democracies in sub-Saharan Africa jumped from only three in 1989 to 23 in 2008. That movement continues: the Arab Spring is a victory for freedom on the continent and democracy is spreading and strengthening south of the Sahara as well. Today, elections are the norm, women and minorities are increasingly empowered, rights are becoming entrenched, and coups and political violence are rarer than they've ever been.
In large part this progress is due to a new generation of emerging African leaders-incredible men and women who are shaking the old narrative of a dormant Africa and replacing it with one of optimism, determination, and progress. And the youth of the continent are eager to lead their countries into the decades ahead, representing Africa's greatest opportunity of all.
Governments and markets that deliver: listening and responding to citizens
Ultimately, this progress will only be sustainable if we get both governance and growth right. All societies, no matter how wealthy, need governments that can deliver real improvements in the lives of their citizens and be held to account for the results. And they need effective, enlightened, markets that can create wealth and improve living standards for all.
Securing the leadership dividend: capacity and accountability
Getting there requires leadership, and two things are needed to make leadership effective: capacity and accountability. Capacity, so governments can implement development plans and tackle poverty. Openness and transparency, so leaders are held to account for the results.
Supporting African leadership: common challenges and mutual responsibilities
The opportunity is clear, but we need action on all sides. Supporting and nurturing country leadership requires commitment on all sides.
A commitment to African leadership. Development ultimately depends on the effectiveness and legitimacy of a country's political leadership. For country leaders it means defining clear and selective priorities and leading their implementation. For those providing aid this means delivering on the Paris principles of country ownership of aid and backing the priorities of those receiving aid. A commitment to support implementation capacity. Country leaders and those giving aid must focus on developing the capacity of governments to act in support of their priorities. A commitment to openness and transparency. Maintaining and strengthening our commitment to democracy and openness is crucial to delivering development progress. This means accountability of leaders to their citizens, but also transparency in aid and in investment. A commitment to enlightened markets. Economic progress and poverty eradication will come from growing Africa's economies. But this requires governments that are willing and able to make markets work in their citizen's interests, it requires fair access to markets on all sides, and it requires transparency from investors. A commitment to a new partnership for development. The old model of donors and recipients does not work for the modern world. Triangular relations among the rich, emerging, and low income countries should become the norm. And common mechanisms are needed to tackle common problems-whether climate change, food security, national security, or financial stability.
Press Release from USAID, November 28, 2011Footnote 10
Officials from the Government of Haiti, the U.S. Government, the Inter-American Development Bank (IDB), Korean apparel manufacturer Sae-A Co. Ltd. and others celebrated the official laying of the cornerstone for the Caracol Industrial Park in Caracol Haiti. Operations at the park are expected to begin in March 2012.
Haitian President Michel Martelly, along with former U.S. President Bill Clinton, presided at the ceremony for the 246-hectare park, which will be one of the largest and most modern in the Caribbean. The projected is expected to create thousands of jobs.
Sae-A Co. Ltd. is investing $78 million to develop operations in the park and has committed to hiring at least 20,000 Haitians. It is the largest single private investment in modern Haitian history.
IDB is providing $55 million for the initial phase of construction. It is also financing programs that will create local enterprises to supply goods and services to the industrial park's future tenants and workers.
The U.S. Government has committed more than $124 million to modernize regional port facilities, expand electric power generation, improve regional health facilities and construct up to 5,000 housing units in Northern Haiti in partnership with the IDB and Food for the Poor. The U.S. Agency for International Development is carrying out the projects.
Press Release from the U.S. Trade and Development Agency, November 30, 2011Footnote 11
Improving the gas transmission and distribution infrastructure in Nigeria is the goal of a USTDA grant awarded today to Oando Gas & Power Limited. The grant will fund a feasibillty study for the Nigerian energy company to assess the viability of developing a natural gas transmission and distribution pipeline in the southwestern part of the country.
The $446,000 grant was signed at the U.S. Consulate General in Lagos by Joseph Stafford, U.S. Consul General, and Bolaji Osunsanya, managaging director of Oando Gas & Power Limited.
“Nigeria faces a developmental challenge of efficiently supplying energy to a growing number of industrial and commercial consumers in the country,” stated USTDA Regional Director Paul Marin. “This study will not only assist Nigeria in improvimg its energy infrastructure, but will also open up future opportunities for U.S. companies looking to enter into the Nigerian oil and gas market.”
Oando Gas & Power Limited is working to reach more consumers through a new 280-mile gas pipeline project. When implemented, the project will extend access to the country's abundant gas reserves to several significant population and industrial centers in southwestern Nigeria. The USTDA-funded feasibility study will help the energy company in providing recommendations for implementation, including pipeline layout and configuration, as well as a complete financial analysis for the project.
Following the outcome of the feasibility study, the gas pipeline project could generate tens of millions of dollars in U.S. exports of equipment and services if implemented. These export opportunities include construction services and the procurement of piping, compressors and pumps.
The opportunity to conduct the USTDA-funded technical assistance associated with the feasibility study will be competed on the Federal Business Opportunities (FBO) website. A link to the FBO announcement will be posted on USTDA's website at www.ustda.gov. Interested U.S. firms should submit proposals according to the instructions in the FBO announcement.
Press Release from the U.S. Trade and Development Agency, December 2, 2011Footnote 12
Today, the Special Administrative Unit for Civil Aeronautics of Colombia (also known as Aerocivil) and U.S. engineering services firm T.Y. Lin (Coral Gables, FL) signed a contract to update the master plan for the development of El Dorado International Airport in Bogota. This contract was made possible through a grant made by the U.S. Trade and Development Agency to support the expansion of Colombia's aviation sector, a key driver of Colombia's economic growth.
As a result of Colombia's economic success and security gains over the past decade, El Dorado International Airport has witnessed tremendous and unanticipated growth in passenger traffic. The technical assistance contract, valued at over $891,000, will establish criteria for the capacity and efficiency improvements needed for the modernization and expansion of El Dorado International Airport, Colombia's largest and most important airport. The Master Plan Update will also include recommendations for equipment, particularly related to terminal technology and security improvements, representing export opportunities for U.S. firms involved in the aviation sector.
“USTDA has a robust working relationship with Aerocivil, and we are proud to support this important project for the further development of Colombia's air transportation infrastructure,” said USTDA Regional Director for Latin America and the Caribbean Nathan Younge.
Previously, USTDA assisted Aerocivil by developing a CNS/ATM Transition Plan and a related Aeronautical Meteorology System, which has thus far resulted in the acquisition of more than $10 million in exports of U.S.-manufactured goods and services. More recently, Aerocivil participated in USTDA's Aviation Cooperation Initiative for Latin America and the Caribbean, which enabled Colombian officials to gain greater exposure to U.S. technologies and best practices in airport modernization and general aviation.
The contract was signed by on behalf of Aerocivil by Director General Santiago Castro, and on behalf of T.Y. Lin by Juan Nuñez, Vice President. They were joined at the signing ceremony by Cynthia A. Griffin, Regional Director for the Western Hemisphere, U.S. Department of Commerce, and Nicole DeSilvis, Commercial Attaché at the U.S. Embassy in Bogotá.
Press Release from the U.S. Trade and Development Agency, December 5, 2011Footnote 13
Today, USTDA announced two activities to support Turkey's efforts to develop new sources of clean and efficient energy.
USTDA signed a grant with Hema Natural Energy Resources Company to evaluate the critical aspects of a combined coal bed methane (CBM) extraction and power generation project at Hema's coalfield. The $449,960 grant is expected to support over $150 million in new business opportunities in Turkey, as well as create 800 to 1,000 local jobs. Using technology for CBM extraction that is brand new to Turkey, the project will provide an additional source of power to meet the the country's increasing energy needs.
In further support of Turkey's clean energy goals, USTDA also announced a smart grid reverse trade mission (RTM) that will introduce 20 public and private Turkish officials to smart grid technology providers in the United States. Delegates will travel to the United States to gain exposure to advanced smart grid technology through site visits to U.S. utilities and meetings with leading ICT and power sector firms. The RTM is planned for spring 2012.
“Turkey's clean energy sector has enormous potential and plays an important role in Turkey's continued economic development and growth,” stated USTDA Regional Director Carl B. Kress. “Both of these projects are exciting additions to USTDA's ongoing support of Turkey's efforts in this growing market.”
These activities were announced during a U.S. Trade Mission to Turkey led by U.S. Assistant Secretary of Commerce Michael Camuñez, which consists of 16 U.S. companies exploring renewable energy and energy efficiency opportunities in Turkey. The signing took place at the Ministry of Energy and Natural Resources. USTDA Regional Director Carl B. Kress signed the agreement on behalf of USTDA. Mr. Yalcin Umurtak, Project Manager, signed on behalf of Hema Natural Energy Resources Company.
These investments in clean energy represent a continuation of USTDA's support of Turkey's significant efforts in this important sector. In 2009, USTDA signed a Memoradum of Agreement with the Ministry of Energy and Natural Resources that outlines cooperation in the areas of energy efficiency, renewable energy, and clean coal technology. Under this agreement, USTDA has previously provided grants supporting Turkish public and private sector projects in solar energy, smart grid, geothermal and energy efficiency.
Details for the smart grid reverse trade mission, and opportunities to get involved, will be provided on USTDA's website at http://www.ustda.gov/news/. The opportunity to carry out the Coal Bed Methane Recovery and Utilization Feasibility Study will be competed on the Federal Business Opportunities website. Interested U.S. companies should visit www.ustda.gov/businessopps/index.asp.
Press Release from USAID, December 6, 2011Footnote 14
A conference sponsored by the U.S. Agency for International Development and the Middle East Desalination Research Centre (MEDRC) launched December 5 in Muscat, Oman, with opening remarks from U.S. Ambassador to Oman Richard J. Schmierer and Dr. Mohamed S. Al Busaidi, Deputy Director General, Oman Ministry of Foreign Affairs.
The regional meeting of the Middle East and North Africa Network of Water Centers of Excellence (MENA NWC) has drawn over 70 water experts from national research entities from across the Middle East and North Africa and the United States. This initial group will undertake joint research on important water issues such as desalination and integrated water resource management.
The meeting of the new regional water network also launched Thematic Partnerships of research institutions and universities in the Middle East. These partnerships will address longstanding, critical water challenges in the MENA region through collaboration with governments, the private sector, and civil society organizations. The technical areas include efficient and productive use of water, ground water management, sanitation, non-conventional water and energy.
Press Release from USAID, December 7, 2011Footnote 15
The U.S. Agency for International Development has joined the Government of Colombia in launching a program to help struggling members of Colombia's Afro-descendant and indigenous communities.
The program seeks to guarantee human rights, improve governance, provide job skills training and increase awareness and respect of cultural diversity. USAID is investing $61 million dollars into the program that will be implemented in coordination with the Colombian government at the national, departmental and local levels. Traditional authorities of indigenous groups and Afro-descendant organizations will also participate in leadership roles.
Speaking at the program's December 1st launch event in Bogota, Mark Lopes, USAID Deputy Assistant Administrator for Latin America and the Caribbean said, “We are confident that with the collaboration of the Colombian Government and people, this program will serve as a catalyst for change in societal attitudes and help create meaningful economic and other opportunities for these vulnerable communities.”
Press Release from USAID, December 16, 2011Footnote 16
The U.S. Agency for International Development has joined the Western Union Company and its Foundation in adding Libya and Tunisia to the second African Diaspora Marketplace, also called the ADM. The Marketplace encourages sustainable economic growth and employment by supporting U.S.-based diaspora entrepreneurs.
In response to rapid changes across the Middle East and North Africa, USAID began redirecting assistance and putting new programs into place—laying the foundation for a democratic future and economic prosperity. Grants awarded for startup or existing small and medium enterprises initiated by the Libyan and Tunisian diaspora will focus on high priority, high-impact sectors that meet immediate and evolving development needs.
“The events of the past year have offered USAID opportunities to adjust our approaches to assistance in the Middle East and North Africa regions and forge new partnerships across Arab societies,” said Mara Rudman, USAID's Assistant Administrator for the Middle East. “I'm excited these new partnerships also include the ADM initiative and the diaspora who want to make a difference in their homelands during a historical time.”
“The ADM is an innovative model for corporate, government and nonprofit collaboration to promote entrepreneurship and the employment it supports. Expanding the ADM to Tunisia and Libya leverages its unique benefits to help create lasting social and economic impact,” said Aida Diarra, Western Union Regional Vice President for North Central and West Africa.
Currently, 21 countries qualify for consideration of proposals to be submitted by February 3, 2012. Participating countries include Angola, Benin, Botswana, Cote D'Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Liberia, Libya, Mali, Mozambique, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Tanzania, Tunisia, Uganda and Zambia.
The number of grants awarded will be determined based on grant pool and program need. The matching grant size is expected to be up to $50,000, with an additional supplement of $25,000-$50,000 in technical assistance.
Support for the Marketplace is also provided by The Tony Elumelu Foundation, an African-funded foundation that promotes the competitiveness of the African private sector, and George Washington University's Center for International Business Education & Research.
