PO Box 602090, Tholo House, Plot 50668, Fairgrounds, Gaborone, Botswana, Phone: (+267) 3900884, info@satradehub.org

The views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

July 2013

Trade Hub and NWK Collaborate to Improve Soya Bean Production in Zambia By Thapelo Manale, Trade Hub Communications Coordinator The USAID Southern Africa Trade Hub and NWK Limited entered into a strategic partnership aimed at improving small scale farmer production of soy beans. NWK, an established agricultural cooperative business with more than 100 years of experience in the South African market, recently expanded its African footprint through acquisition of a 60% interest in the cotton company, Dunavant Zambia. The Trade Hub provides strategic partnership grants of up to US$100,000 to support South African companies operating in the grain sector and interested in extending their value chain into Malawi, Mozambique and Zambia. Under this partnership, NWK plans to integrate soybeans into the existing Dunavant cotton outgrower scheme. "NWK regards the partnership as an excellent opportunity for Dunavant, an established role player in Zambia, to increase the viability of its outgrowers and to grow its own business in Zambia" said Danie Marais, NWK's Managing Director. Under the outgrower scheme, farmers receive inputs, technical services and training support from Dunavant, which also facilitates access to finance and undertakes to purchase the crop. The private sector has traditionally invested in cash crops like cotton and tobacco. Under this partnership arrangement, the Trade Hub is facilitating and encouraging the private sector to extend its investments to the production of food crops, which will help underpin food security in the region. As global demand for food increases, private sector investment in food production in the region is also becoming important. The Trade

On a smallholder farm, the entire family is involved in threshing soya beans in preparation for the market.

2

Hub believes that this model of expanding and leveraging cash crop outgrower networks offers significant potential to integrate smallholders into commercial agriculture cost-effectively. "In Zambia this type of work has been done before but in an uncoordinated manner," says Andries Radley, Manager of Business Development at NWK. "NWK is assisting emerging farmers in South Africa, but this is a first for NWK in diversifying into the larger market." The outgrower support developed under this grant agreement with NWK will bring finance, quality inputs and improved agricultural technology to an initial group of 920 smallholder and emerging commercial farmers in Zambia. In addition, the grant is supporting the development of a soil mapping database, which will overlay new soil testing information on existing soil type maps to develop specific amendment and rotation plans for farmers. Grant funding supports the upfront costs of developing these technological services for farmers, and NWK will make them available to farmers through their outgrower network. NWK is involved in a wide spectrum of activities and has a range of expertise at its disposal to develop and implement this type of project. Its Silo Services Department provides storage and handling services, while the Grain Marketing Department provides professional marketing and price risk management services to producers, millers and other buyers of grain. Agri Advice offers agronomic, livestock and agri-economic advisory services to producers, and NWK Trade offers a range of input and consumer goods to the farming community. The initial 920 farmers will be chosen from a database of 112,000 smallholders based on their history of good farming practices, productivity and loan repayment. "The focus will be on those farmers with a real passion for agriculture," Radley explains. NWK expects to scale up the soybean program significantly as results come in and farmers realize the benefits. To promote gender integration—a key aim of all the Trade Hub's activities—NWK will ensure that 20% of the participating farmers are women, giving them direct access and control of sales and income. It is hoped that the selected women will also be involved in leading trainings and have the opportunity to run demonstration plots and host field days. This partnership is part of the Southern Africa Trade Hub's efforts to improve food security and agricultural competitiveness across the region. Swaziland Making Significant Reforms in Investment Climate By Reginald T. Selelo, Trade Hub Investment Promotion Advisor

In 2005, USAID’s Southern Africa Trade Hub developed an “Investor Roadmap” in collaboration with the Swaziland Investment Promotion Agency (SIPA), which detailed the administrative, procedural and regulatory barriers hindering investment in Swaziland and offered 90 recommendations to better the country’s investment climate. Implementation of all the recommendations from the roadmap has been slow owing to a number of reasons, including the absence of inter-ministerial consultations on investment issues and delays in developing necessary legislative documents. With the country continuing to face severe economic challenges, the Swaziland government re-

launched the Investor Roadmap on April 27, 2012 led by His Majesty King Mswati III. In June 2013 the Trade Hub undertook an audit review on progress in implementing the re-launched Investor Roadmap to determine what improvements had been made in the investment climate and what challenges remain. The Trade Hub and SIPA convened a public and private stakeholder workshop on June 6 to validate the outcomes of the audit and to chart a way forward for continued implementation of the roadmap. The audit revealed that a number of important reforms have been achieved. The time it takes to acquire

3

work and residence permits has been reduced from 21 to seven days, and there is now a mechanism that will facilitate the issuing of five-year work and residence permits for investors, an improvement from the two-year work and residence permits issued previously. Other successful reforms include the introduction of an online company name search, which has effectively reduced the time taken to incorporate a company to three days. Trade licenses are now issued in three days instead of seven days, whereas a health inspection report (a key prerequisite for acquiring a trade license) is now issued within 48 hours from the previous 14 days. Tax clearance certificates are no longer a prerequisite for company registration, and the Swaziland Revenue Authority (SRA) has introduced an online tax filling platform aimed at improving tax administration and compliance. In order to improve the time it takes to settle commercial cases in court, a case management system has been introduced. Swaziland expects these positive changes to reflect in the World Bank’s Doing Business indicators as well as other international indicators for next year. Source Africa 2014 By Gina van Schalkwyk, Trade Hub Communications Advisor The USAID Southern Africa Trade Hub will once again partner with private sector event management company LTE South Africa to host the flagship pan-African textiles and apparent event, Source Africa 2014. The event will take place at the Cape Town International Convention Centre from May 6-8 and will include a trade show, networking events and business seminars designed to boost sales and investment in the sector. Last year’s inaugural event attracted 1,401 visitors, 170 exhibitors and 26 top buyers from local and international retailers. The African Cotton and Textiles Industries Federation (ACTIF), the American Apparel and Footwear Association (AAFA) and LTE will again use their extensive network to recruit suppliers and buyers for the event. These efforts will kick off in October 2013 with a roadshow in the United States, intended to raise awareness about sourcing opportunities in Africa among US buyers and to obtain feedback that will help match their expectations with the offerings at the event.

Next year’s event is planned to feature more country pavilions such as the highly successful Mauritius Pavilion, which this year featured 45 stands and three young designers, attracting serious buyer attention and impressing other exhibitors. “It was an enormous success much beyond our own expectations, since it was the first time that such an event was being organized at an international fair outside Mauritius,” said Dev Chamroo, CEO, Enterprise Mauritius, about the 2013 pavilion. Source Africa is designed to demonstrate that African suppliers and manufacturers can compete on price, quality and standards and is the only pan-African footwear, textiles and apparel event of its kind. The trade show brings together manufacturers from across the continent in one major integrated event, enabling buyers to examine a wide array of products in one efficient trip. The trade show also encourages African buyers and suppliers to do business with each other and capitalize on tariff advantages and shorter distances to market by bringing suppliers from 20 different countries to the event.

“We have great plans in store for next year’s event to boost intra-Africa, as well as international trade for our industry. An exciting development is that all the USAID Trade Hubs have indicated their interest in partnering with us to grow Source Africa into the most important trade event for the footwear, clothing & textiles industries in Africa. An extensive marketing and promotional campaign will be launched to attract

4

even more African and international trade buyers and exhibitors,” explains William Scalco of LTE South Africa. Praise for Source Africa 2013: ”The whole event was well organized and extremely good quality. Africa is once again becoming a sourcing destination of choice. Therefore, if more foreign buyers are to be attracted, then more manufacturers/countries need to be represented. The venue was excellent,” Roy Ashurst, Sourcing Hub leader for Africa and Indian Sub Continent, PVH Corp, USA “As a manufacturer of protective clothing, we were not expecting a very good show because we thought that the focus was fashion, but we were pleasantly surprised at the diverse nature of both the exhibitors and visitors,” Ravesh Rama, Leo Garments/Rama Group, South Africa “I would like to thank the organizers of Source Africa for all their support and hard work, which greatly contributed to the success of the event. I am delighted to hear that Source Africa will take place in Cape Town again,” Johann Baard, Executive Director, Apparel Manufacturers South Africa (AMSA) Swaziland Ready to Take the Leap to Renewable Energy By Romance Sampa, Trade Hub Clean Energy Advisor Renewable energy has a vital role to play in Swaziland’s energy future. The country currently imports over 71 percent of its power from South Africa and Mozambique, despite the fact that its renewable energy resources—such as solar, small hydro, wind and residues from the sugar industry—could meet the entire national demand of 200 megawatts if fully exploited.

Energy usage is an urgent issue as Swaziland’s demand for electricity will continue to rise: access to electricity is currently about 65 percent in urban areas and 45 percent in rural areas. A developed renewable energy sector in Swaziland has the potential to increase these percentages significantly, which would in turn increase energy security, offer environmental benefits and create green jobs, while providing reliable

affordable electricity. Recognizing this potential, the Kingdom of Swaziland has requested USAID’s Southern Africa Trade Hub to help develop a Renewable Energy and Independent Power Producer (IPP) Policy as well as a Strategic Environmental Assessment of the policy as an urgent priority. The Renewable Energy and IPP policy is intended to guide and expand the role of the private sector in developing the country’s renewable energy sources and diversify the supply and nature of energy production. The policy will provide a clear, easily identifiable roadmap for IPPs with a clear delineation of institutional authority and the Kingdom’s policy with regard to private power. Developing a transparent, robust and predictable renewable energy and IPP policy is critical to attracting the investment of IPPs in the sector. An increase in IPPs’ clean electricity generation contributes to climate change mitigation, economic growth, trade competitiveness and food security. To help the policy formulation process, the Trade Hub will provide renewable energy and environmental technical expertise to the Ministry of Natural Resources and Energy (MNRE), which has decided to form a Task Team of high level policy-makers and a technical steering committee comprised of key stakeholders. The Task Team and steering committee will guide the process and ensure national ownership not only of the policy process, but the final policy document as well.

5

Consultative workshops are planned to ensure that processes are highly collaborative and stakeholder concerns are addressed. The planned timeframe for delivering a final draft of the Renewable Energy and Independent Power Producer Policy and Strategic Environmental Assessment of the policy for the consideration of the Swaziland government is six months. The Trade Hub will also build the capacity of MNRE in policy formulation by attaching the Hub’s policy consultants to local staff during the policy development process.

Hub Digest

The Hub Digest offers views from a rotating panel of experts on a wide variety of issues related to trade and economic growth in Southern Africa, including trade facilitation tools and approaches; agricultural productivity and improvements especially in the maize, groundnut and soy value chains; developments in the textiles and apparel sector and regarding AGOA and exports; clean energy; enabling environment reform and initiatives; environmental compliance and gender integration.  Write to info@satradehub.org with your suggestion for a topic or question. Or start a conversation via our Facebook Page – www.facebook.com/satradehub. Enhancing the Public Communications of Government Initiatives By Brian Glancy, Trade Hub Single Window Program Advisor A growing number of Southern African countries have the vision to implement a National Single Window (NSW), which is designed to reduce the time, cost and cumbersome processes traders face in clearing import, export and transit goods. Countries are also recognizing NSW as a means to improve their business environment and competitiveness, reduce illegal practices and increase revenue and data collection. USAID's Southern Africa Trade Hub has developed a prototype "Roadmap" that governments can use to develop their own direction and sequence of critical tasks towards successful implementation of a Single Window. A critical element at all stages in the roadmap is a plan for ensuring awareness, effective consultation and buy-in from all stakeholders. This article focuses on these aspects. Experience in NSW countries has indicated that a clear communications plan is the one element that makes the difference between relatively smooth or difficult roadmap implementation. Single window significantly impacts the lives and operations of stakeholders in both the public and private sectors. The development of NSW affects numerous government agencies (Finance, Customs, Health, Agriculture, Trade, Transport, Environment, Police etc.) and all private sector players involved in trade (manufacturers, importers, exporters, forwarding and clearing agents, banks, transporters etc.) Articulating a clear, cohesive vision and developing a collaborative platform for these multiple stakeholders is a critical undertaking in the process. The diagram below lays out ten critical components for Single Window development. It is evident in the diagram that Components 2 and 3—Single Window Vision and Articulation, and Stakeholder Collaborative Platform Establishment—overlay and encompass all other components.

6

Source: UNECE Single Window Planning and Implementation Guide A successful awareness, consultation and buy–in strategy ensures that: • target audiences and stakeholders are accurately identified • their roles, responsibilities, interest and potential benefits from a single window are mapped out • key influencers and opinion leaders that can re-enforce (or hinder) progress are identified • methods and means used are tailored for the different role players and interest groups • communication is timely and done well ahead of any implementation or actions • messages and expectations are understood and accepted Awareness Campaigns A first and basic requirement in the process is to create general appreciation, grasp or perception of the purpose and operations of a single window. Even though a public response is not necessarily sought, the desired outcome is the awakening of positive curiosity and interest in knowing more. This aspect of communications seeks to maximize outreach to intended audiences and can use any of the following means: • Media publications • Press releases • Public speeches • Newsletters Awareness campaigns need to identify "target" audiences and to tailor messages to meet each group's unique needs. Communications should be delivered in clear and simple messages that address questions and concerns. Reinforcement of the message and co-opting trusted voices to support the initiative are key success factors. The table below illustrates a basic framework for kick-starting an awareness and communications plan for NSW:

7

Obstacles to Change Change is personal and daunting and can precipitate fear, mistrust and resistance. The only effective antidote is an effective communication and consultative process that is perceived to be transparent, honest and empowering. Otherwise a number of factors can hinder these types of collaboration. Fear of Change: Generally we fear the unknown and dislike change. In creating a new collaboration, we fear what will become of our routine, job, career and way of life. There are too many question marks, so it is tempting to just avoid the whole matter altogether and continue business as usual. Threat: Ceding total or even partial control by engaging in a collaborative effort can feel threatening. Individuals may feel that they are no longer the sole driver at the table, no longer a regulator, no longer the chief authority figure, and perceive this as undermining their position and status. Lack of Incentives for Taking Risks: People are not always rewarded in organizations for their individual contributions, and this can be even more the case in government. There may be no obvious reward for collaboration and indeed, there may actually be a risk in collaborating with other entities. These three hindrances are born out of miscommunication and misperceptions and can be mitigated by the important process of Stakeholder Consultation described below. Stakeholder Consultation This is defined as the process of formally consulting or discussing and obtaining private and public sector stakeholder response in the form of ideas, feedback and standpoint. It is a process by which the public's input on matters affecting them is sought. The greater the participation of the private and public sectors, the greater the level of understanding and buy-in that occurs. It does not necessarily follow that everyone affected by the proposed single window will have an equal voice and influence. The goal is to build broad support and to win over those who will be affected the most and those who have the most influence. The National Single Window process has to be driven by the lead Ministry (which can either be Finance or Trade) as the champion, supported by key agencies such as Customs, and strategic partners such as the relevant business chamber or associations. The process requires these key entities to articulate a proposal that outlines the vision, the desired outcomes, the broad roadmap and the blueprint for the single window, supported by realistic assumptions and basic qualitative and quantitative analysis (a basic business case and rationale). It must allow for responses and opinions, encourage questions and critical debate, and to be responsive to suggestions and recommendations to improve the proposal being discussed. The means for consultation are usually structured as: • Workshops • Focus Forums • Conferences • Written Submissions The expectation driving the consultation process is that the government will not make any final decisions on implementation for the single window without first having discussed the proposal with those whose lives will be most affected by it. This promotes transparency and confidence in the government and the single

8

window. Stakeholder Collaboration Management At this stage the key stakeholders who are willing and ready to implement the single window begin the action of working together. The strategy is to "de-silo" administration of government and introduce contractual and commercial arrangements in planning and implementing the NSW. Central and line agencies begin to collaborate across government jurisdictions to simplify service delivery and reduce the costs of providing services. Collaboration necessitates that parties form a partnership or collective to share the costs and risks associated with introducing the single window. It requires that all parties "buy in" to the proposal from its inception and demands responsibility and accountability for the development of the initiative, including defined standards of performance that must be achieved and maintained for success. An increasingly utilized collaborative arrangement for implementing the single window has been the development of the Private/Public Partnership (PPP) model, in which government and the private sector partner to establish, develop and run NSW on a cost recovery or "fee-based" basis via a special purpose vehicle. Government has the legal and administrative authority to provide a service, and the private sector offers up the technological know-how and funding instruments (in whole or in part) to quickly implement and maintain the service. The arrangement is fixed for a specified period of time. It is viewed as a "win/win" scenario in that the private sector is the ultimate beneficiary of improved and enhanced services offered through PPP arrangements. In addition, engaging a private sector partner has the added benefit of utilizing them as an additional influencer with other private sector entities, and of tapping start-up capital and continuous improvement investment. Effective communications strategies engage with audiences to enable new government policies, services and initiatives to be successfully implemented with a high degree of acceptance from stakeholders and general public alike. The key to successful implementation is to ensure that you have determined your target audiences, articulated the vision clearly, conducted stakeholder consultations and developed an efficient vehicle for stakeholder collaboration. Following each step of this process will help you overcome common obstacles to change and implement rewarding solutions to benefit public and private sector alike

Brian Glancy entered the Public Service of Canada as a Customs Inspector in 1978 where he served for

9

27 years. Since leaving the Canada Border Services Agency, Brian has worked on international development projects based in Uganda, Afghanistan, Guatemala and Egypt. Brian has extensive experience in the design and development of national programs related to border controls, as well as inspection services via automated and alternate means to provide new services, including brokering, testing, training, evaluation and monitoring services in support of the business mandate.

Our People

Each month we will introduce you to a member of our USAID Southern Africa Trade Hub staff: Drew Schneider, Director, Textiles & Apparel Drew Schneider is a private sector development specialist with 20 years of experience designing, implementing and evaluating economic growth programs in the United States, Central & Eastern Europe, South Asia, and Eastern & Southern Africa. He has managed value chain development efforts across a wide range of industries including textiles & apparel, wood furniture, fresh water aquaculture, horticulture, tourism and financial services. Drew studied economics at the University of Colorado in Boulder, and earned his Masters Degree in Public Policy Analysis from The College of William and Mary. He is an enthusiastic supporter of the USAID Forward initiative and contributes to the dialogue on improving the business of development at http://www.getseriousaboutresults.blogspot.com    What led you to a career in development and what have been your areas of interest in the field?  I started my career as a management consultant with Price Waterhouse in Washington DC. After five years I was finishing up a big project with the US Department of Housing and Urban Development, and a colleague asked me if I wanted to try something different before I started my next assignment in Washington. What started out as a six-week adventure to help start up a new privatization project in Bosnia’s Serb Republic turned into a new career; I ended up staying in the Balkans for almost six years. Since then I’ve lived and worked all over the world.    The fundamental question for me is: how can we better organize and manage our teams and resources to make great ideas actually happen? I find it very encouraging that more donors and host country governments are giving more attention to effectively implementing more of the good ideas that are already out there.    How will a robust Textiles & Apparel sector affect Southern Africa’s economy?  The textiles and apparel sector has historically been one of the most effective avenues for newly industrializing countries to establish a manufacturing industry. The apparel business is also very labor-intensive and creates significant employment opportunities, particularly for women. There is potential for the sector here in Southern Africa once we reduce the time and cost of trade, and increase the productivity of the workforce.    Where are you originally from and what have you enjoyed most about living in Africa?  My hometown is just outside of Denver, Colorado, I did elementary school in Europe, and finished up high school in Hawaii. I’ve only lived in Africa for ten months, but I have wanted to come and live here for as long as I can remember. What has been most enjoyable about living here so far is the wide variety of cultures and geography. Every new place I visit in Africa offers something different and unexpected.    What is your favorite thing to do for relaxation in Gaborone?  I love taking my family out for short sunset drives around the city’s game reserve. My daughter is nearly two years old now and she absolutely loves animals - she is becoming an exceptional little spotter! My wife and I finally introduced our daughter to elephants last weekend at Madikwe Game Reserve and the expression of delight on her little face was

10

priceless.    What do you like most about going out to the field and visiting counterparts?  There’s an old saying: “everywhere we go, we meet ourselves.” As each year passes I understand more and more how important it is to immerse ourselves in the unknown. I learn something new every time I go out to the field, and that’s definitely what keeps me coming back.    Who is a famous person (living or dead) that you admire and why?  I’m a huge fan of Abraham Lincoln. What I admire about him most was his extraordinary ability to stay focused and committed to the principles he deeply believed in, while at the same time understanding and accepting the circumstances and constraints that defined what was possible to achieve at any given time. I think his capacity to blend idealism and pragmatism is ultimately what made him such an extraordinary leader.    What is your proudest achievement at work since you started your career in development?  Probably my proudest achievement is realizing that there is very little I can achieve in development as an individual, but there is a lot I can achieve as part of a high performing team. We have an awesome team here at the Southern Africa Trade Hub and I’m excited to be part of it.  

Upcoming Events

AGOA Forum August 10-13, Addis Ababa Southern Africa Power Pool (SAPP) Meetings Aug/Sept 2013, Windhoek, Namibia