EXPLAINING THE EIF PROGRAMME AND STATUS OF PROGRAMME IMPLEMENTATION IN ZAMBIA Presentation to the EU Technical Officials Accredited to Zambia May 21, 2014 Presentation by Healey Mweemba Project Team Leader

Presentation Outline EIF Within the Context of Aid for Trade Explaining the EIF Programme Zambia and the EIF Programme Conclusion

EIF within the context of Aid for Trade Aid for Trade (AfT or A4T) is a generic concept describing development assistance provided in support of partner countries’ efforts to develop the capacity to expand their trade by helping LDCs address critical supply side constraints (e.g infrastructure; both hard and soft) needed to facilitate international Trade. In 2005, members of the WTO launched the Aid for Trade initiative with the goal of promoting trade as an engine of growth and poverty reduction.

Aid for Trade Delivery Mechanisms Implementation of AfT programmes is multifaceted, encompassing a diverse range of delivery mechanisms. These include: 1.Bilateral Cooperating partner, e.g MATEP 2.International financial institutions, e.g WB, Regional Development Banks 3.Multilateral agencies, e.g WTO, ITC, UNCTAD 4.EIF Programme – LDCs access Aid for Trade Technical Assistance and financing

Explaining the EIF Programme The Enhanced Integrated Framework (EIF) programme is an Aid for Trade partnership among Least Developed Countries (LDCs), International Organisations and Bilateral development partners. The programme seeks to assist LDCs to be more active players in the global trading system by helping them tackle supply side constraints to trade. Promotes economic growth and sustainable development and helping to lift more people out of poverty. EIF is a catalyst programme

Background to the EIF The IF was launched in 1996 during the 1 st WTO MC in Singapore At the 6 th WTO MC in Hong Kong in 2005, the WTO Ministers agreed on three elements that would constitute an enhanced IF, namely: 1.Increased, additional, predictable financial resources 2.Strengthened in-country capacities to manage and implement the IF process 3.Enhanced IF governance

EIF Partner Agencies Eight (8) international organisations have combined their efforts with those of LDCs (47) and bilateral development partners (23) to respond to the trade development needs of LDCs EIF Core AgenciesAdditional Partner Agencies 1The World Bank GroupUNIDO 2International Monetary Fund UNOPS (EIF Trust Fund Manager) 3International Trade Centre 4UNCTAD 5World Trade Organisation 6UNDP

Objectives of the EIF Programme Mainstreaming trade into national development strategies Coordinating the delivery of trade – related technical assistance Building capacity to trade, which includes addressing supply-side constraints Governed by the principles of ‘Paris Declaration on Aid Effectiveness’

The Concept of Mainstreaming Trade MT – the process of integrating trade into national and sectoral development planning, policy making, implementation and review in a coherent and strategic manner Taking trade-related issues into account when planning and executing broader development objectives. Using trade as a tool for poverty reduction MT takes place at three levels; policy, institutional and International Cooperation

EIF governance framework

Funding for the EIF Programme 23 Cooperating partners (donors) contribute to a basket fund managed by the EIF Trust Fund. The funding status as of June Stockholm target (2007)US$250 million Total commitmentsUS$232 million

Projects Funded by the EIF (1) 1.Tier 1 Projects (US$1.5 million over 5 years ) Support greater in-country capacity and ownership with the objectives of: Building the human resource capacity of the National Implementation arrangements (NIAS = NSC, NIU, MT) Providing support to NIAs Preparing and/or updating the Diagnostic Trade Integrated Studies (DTIS) Facilitating and supporting trade mainstreaming actions :

Projects Funded by the EIF (2) 2. Tier 2 projects (US$ 3 million per year/country) They are projects funded by bilateral or multilateral local development partners or theEIF Trust Fund to address priorities identified in an EIF beneficiary countriy’s DTIS, the DTIS update and its Action Matrix. Exemples of Tier 2 projects: Assistance to implement WTO or other trade policy committments Preparation, formulation and implementation of sectoral strategies Capacity building activities for key trade support institutions and government officials, professional federations (farmers associations) Specific actions aimed at enhancing SMEs’ competitiveness for priority sectors identified in the DTIS

Zambia and the EIF Programme Diagnostic Trade Integration Study (DTIS) is the corner stone to the EIF programme as it forms the basis for eligibility to the programme The DTIS and its Action Matrix is an analytical report or document that LDCs use to develop concrete national AfT implementation plans (Tier 1) and to identify initiatives for donor funding (Tier 2) projects. Cooperating partners can then elect to support projects or programmes identified in the Action Matrix

Zambia and the EIF Programme cont’d The Integrated Framework was launched in Zambia in 2004, with the undertaking of the Diagnostic Trade and Integration Study (DTIS) The DTIS and its Action Matrix were validated by stakeholders in July 2005 and formally approved by the GRZ in 2006 DTIS reviewed Zambia’s Trade Policy, assessed Zambia’s potential for export diversification, outlined an Action Matrix

Institutional Arrangements for the Implementation of EIF in Zambia EIF programme was integrated within the PSDRP EIF National Steering Committee- TEWG EIF Focal Point- Director- Foreign Trade National Implementation Unit- Three (3) officers EIF Donor Facilitator- Embassy of Finland PS-MCTI- to report to the PSDRP SC on EIF pgr

EIF Tier I Project for Zambia Following the findings of the DTIS, the GRZ prepared the National Implementation Unit Sucetanence and Capacity Enhancement (NIUS & CE) Project proposal in November 2009 The GRZ presented the NIUS & CE project proposal to the EIF Board for consideration In February 2010, GRZ through MoFNP and the UNOPS (EIF Trust Fund Manager) signed a MoU on the implementation of the project GRZ designated MCTI to host and coordinate the implementation of the project

GRZ Contribution to the Project Political will and support necessary for the successful implementation of the project Provide a framework within the PSDRP that will ensure integration of the EIF activities with trade expansion activities and other donor supported programmes Provide a member of staff from MCTI to work with the NIU and provide financial resources to facilitate their participation in the EIF process GRZ will provide office accommodation, telecommunication services, water and electricity bills as well as transport and cleaning services

EIF Tier II – Projects for Zambia Project 1: Trade and Investment Project for Enhaced Competetiveness in Zambia’s Apiculture Sector (TIPEC ZAS) Project Project Proposals unde developement Enhaced Production and Competitiveness for Smallholder Dairy Farmers in Zambia -Aquaculture -Eco Tourism

Challenges to the implementation Lack of appreciation of the DTIS and Action Matrix by stakeholders, thus slowing the implementation of the EIF programme Challenges in rolling out Trade Mainstreaming and appreciation of the cross cutting nature of trade at institutional levels within and across line ministries Weak Public Private Dialogue structures within the context of Private Sector Development Awareness and Knowledge GAP on the EIF between Geneva and Capital (Lusaka) based CPs staff

Opportunities EU and its member states are the largest provider of Aid for Trade Africa accounts for the largest share of Aid for Trade from the EU and its member states Participation in the EIF and reporting to their capitals how the funds contributed by your Governments are being utilised Strengthen synergies on coordinated delivery of TRTA

Opportunities Contribute to Trade Mainstreaming Platform to engage the Government, private sector and civil society on trade and other economic matters

Thank You

Contact 9th Floor New Government Complex Ministry of Commerce, Trade and Industry Lusaka Web Site: