1. ACEC: U.S. African Initiatives Session Jim Wilson – Senior Coordinator for Trade Promotion U.S. Department of State Grand Hyatt Hotel – April 30, 2014

2. “Sub-Saharan Africa is a region of extraordinary opportunity for growth and economic development.” “[Through the DBIA campaign] we continue the work of creating jobs and expanding economic opportunity that will help drive our economy and support the growth of our African trading partners.” Barack Obama President of the United States of America

3. Overview Africa is huge: it is the world’s second-largest and second-most-populous continent. Sources: 3 The Economist (2010), 4 A.P. Sayre (1999).

4. What’s Driving Africa’s Growth? The commodity boom only explains part of Africa’s growth story. – Natural resources, and the related government spending, generated just 32% of Africa’s GDP growth from 2000 through 2008. The remaining 68% came from other sectors, including wholesale and retail, transportation, telecommunications, and manufacturing. Source: 11 McKinsey & Company (2010).

5. A Growing Workforce Africa will have the world’s largest workforce by 2040! Sources: 5 McKinsey Global Institute (2012), 7 The United Nations (2010).

6. A Diminishing Political Risk There have been 35 peaceful transitions of power since 1982. Successful coups have decreased from over 20 in the 1960s to fewer than 10 in the 2000s. The number of democracies and democratic-leaning governments has grown from 10 in 1980 to over 30 today. Source: 8 The Economist (2012).

7. Prospects for Long-Term Growth The continent’s growth also picked up during the oil boom of the 1970s, but slowed when oil and commodity prices declined in subsequent years. While short-term risks are ever present, professional consensus is that Africa displays long-term growth prospects. – This is driven by the internal (regional) improvements previously discussed as well as global economic trends. Source: 11 McKinsey & Company (2010), ), 2 Ernst & Young (2012.

8. Potential U.S. Company Trade and Investment Sectors Source: 10 ExIm Bank (2012).

9. Infrastructure Africa has as many cities with populations in excess of one million people as Europe, yet its infrastructure remains vastly underdeveloped. Investments in infrastructure are investments in growth, which enable commercial activity, builds a middle class, and spurs more consumer activity. Infrastructure will lead all African industries with a projected 9% compound annual growth rate in the next decade. Source: 5 McKinsey Global Institute (2012).

10. Infrastructure There are major untapped opportunities for the private sector in areas such as power generation, transport, information and communication technologies, and water treatment. Source: 5 McKinsey Global Institute (2012). Africa has a huge infrastructure deficit, presenting many investment opportunities for U.S. companies.

11. Multilateral Development Banks Multilateral development banks (MDBs) are “institutions that provide financial support and professional advice for economic and social development activities in developing countries.” MDBs include: the World Bank Group; the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; and the Inter- American Development Bank Group. MDBs present several business opportunities for U.S. companies. Source: 14 The World Bank (2012).

12. The World Bank-funded project cycle presents many opportunities for bids from U.S. companies… Source: 13 The World Bank (2012).

13. World Bank-funded Bid Opportunities Source: 13 The World Bank (2012).

14. Project Cycle Documents 1. Project Information Document (PID): The first publicly available document about a given project is the 6 to 7 page PID, which conceptualizes the project. 2. Project Appraisal Document (PAD): The 100+ page PAD offers detailed information, including a procurement plan for the first 18 months. 3. Procurement Notice: Procurement notices are published locally and in the “UN Development Business” publication. Source: 13 The World Bank (2012). There are three main project cycle documents used by the World Bank and MDBs : There are business opportunities available before, during, and after each of these documents is published.

15. Source: 13 The World Bank (2012).

16. How to be Successful? Partnerships with local champions Estimated 90% of MDB contracts are awarded to host country companies U.S. firms are typically interested in only part of overall project, often equipment supply One of our strengths is knowing leading local players (also have AfDB lists) Lower cost/lower risk for U.S. companies

17. How to be Successful? (continued) When to report, when to promote partnerships? At the early stages of project development (pre-pipeline and project identification stage) Key info sources: MDB Country Assistance Strategies, Sector Strategies, Monthly Operational Summary, and the Project Identification Documents Discussions with local DFI reps

18. State Department Initiatives Business Information Database System (BIDS) – Web portal to help U.S. businesses learn about significant international commercial opportunities – WWW.BIDS.STATE.GOV WWW.BIDS.STATE.GOV – Description of projects and links to detailed data – Provides continuously updated picture of procurement opportunities worldwide

19. State Department Initiatives Direct Line Program – Program of conference calls with select U.S. Ambassadors to connect U.S. executives with political and commercial insight on specific foreign markets – WWW.STATE.GOV/E/EB/DIRECTLINE

20. Economic Statecraft Secretary John Kerry: Economic policy is foreign policy, and foreign policy is economic policy. I’ve challenged every Foreign Service officer to be an economic officer and make our prosperity agenda an all-hands-on-deck job at the State Department.

21. Thank You Jim Wilson Senior Coordinator for Trade Promotion Bureau of African Affairs U.S. Department of State email: WilsonJM2@state.gov