Public-Private Partnerships
The Global Development Alliance (GDA) represents a commitment by USAID to change its business model, that is, to change the way it implements assistance programs. This relatively new approach grew out of the recognition that significant changes in the environment for delivering economic development assistance have occurred over a period of time. In the 1970s, 70 percent of resource flows from the United States to the developing world were from official development assistance and 30 percent were private. Today, 85 percent of resource flows from the United States to the developing world are private and 15 percent are public. No longer are traditional donor governments and multilateral development banks the only providers of assistance. Rather, over the past 20 years, there have been a growing number of new actors on the scene: foundations, corporations, and even individuals. Under its GDA model, USAID seeks to facilitate linkages between its own programs and the programs of these new and, increasingly important, actors in order to strengthen the overall effectiveness of development efforts.
In Angola, USAID has established a series of valuable partnerships with international corporations which have been fundamental in multiplying the effectiveness and reach of USAID programs.
Chevron Corporation
USAID has two partnerships with Chevron:
- a Municipal Development Program in which Chevron and USAID are each contributing $1.5 million a year for three years to support the development and implementation of municipal development plans that have been jointly developed by municipal authorities and the communities they serve in four provinces of Angola; and,
- an Agricultural Development and Finance Program in which the partners together are contributing a total of $5.5 million ($3 million from Chevron and $2.5 million from USAID) over five years to strengthen the linkages for production, processing and marketing of selected agricultural crops.
Aside from these two partnerships, Chevron has joined USAID and other sponsors on the Board of Directors for Junior Achievement (JA) Angola, subsidizes events, and has committed staff volunteers to mentor students in the Angolan schools during the pilot program. In addition, Chevron has contributed $100,000 to a loan guarantee agreement between USAID and Banco de Fomento Angola (BFA), which seeks to expand access to credit for enterprises in the agricultural sector. Finally, Chevron and USAID are both funding Search for Common Ground to implement a two-year Conflict Mitigation and Community Development Program.
The Chevron-USAID partnership has been a successful one since its beginnings in 2002. Prior to the second generation of partnership programs described above, Chevron and USAID collaborated to help hundreds of thousands of Angolans rebuild their lives in the wake of a prolonged civil war by supporting activities to restore agricultural capacity in the war-torn Planalto region of the country. In another effort, the Chevron-USAID partnership facilitated the start-up of Novo Banco which, in its first two years of operation, extended a remarkable $20 million in loans to Angola’s underserved micro and small entrepreneurs. The partnership also led to the strengthening of institutional capacity of Angolan agricultural institutions and, in Cabinda, helped farmers growing fresh fruits and vegetables to increase yields and link up profitably to markets created by oil industry operations.
ExxonMobil Corporation (Esso Angola)
USAID and ExxonMobil are together partnering with the Angolan Ministry of Health, UNICEF, the World Health Organization and the Global Fund for AIDS, Tuberculosis and Malaria (GFATM) to reduce malaria deaths in Angola by 50 percent within three years, under the President's Malaria Initiative. In 2006, the PMI sprayed over 100,000 houses against mosquitoes, and facilitated the distribution of over 800,000 bed nets in conjunction with a measles immunization campaign. With $1 million contributions in 2006 and 2007, ExxonMobil has contributed a total of $2 million to the PMI that has been used to develop information materials and assist with the distribution of anti-malarial drugs through NGO support.
Esso Angola, ExxonMobil’s local affiliate, has, with USAID, lead the effort to introduce Junior Achievement to Angola. It has made a $50,000 contribution, to JA, is chairing the JA Angola Board of Directors, subsidizes events, and has committed staff volunteers to mentor students in the Angolan schools during the pilot program.
Banco de Fomento Angola
USAID has three partnerships with Banco de Fomento Angola (BFA), an Angolan Bank, whose main shareholder is Banco Português de Investimento, a major Portuguese Bank. Under the first partnership, BFA is contributing $400,000 a year for three years to support USAID-funded youth centers in five provinces of Angola. The primary focus of the youth centers is to promote behavioral change related to HIV/AIDS prevention. The centers also provide training in “soft” vocational skills, such as sewing, cooking, English, and computer use. Under the second partnership, BFA is contributing $400,000 a year for three years in a joint program with USAID to increase access to electricity for productive and social service purposes in two municipalities of Luanda. The program also seeks to strengthen the quality of interaction between communities, local government and the Electricity Service Provider, EDEL (Empresa de Distribuição de Electricidade) and, thus, promote good governance. Finally, in September 2007, USAID signed with BFA a DCA portfolio guarantee agreement that is providing 25 percent coverage to BFA’s new $15 million loan portfolio for the agricultural sector.
Lazare Kaplan International
With Lazare Kaplan International, USAID was able to add a municipality in the underserved province of Lunda Norte to the Municipal Development Program described above. Lazare Kaplan has committed to contribute $500,000 a year to the Program over three years.
Odebrecht
USAID has collaborated with Odebrecht, a Brazilian construction company, in the creation of a private sector alliance against HIV/AIDS, the Comité Empresarial de Combate ao VIH/SIDA (CEC). Odebrecht is also providing free warehouse space for commodities financed by USAID for its HIV/AIDS behavioral change program. Odebrecht is, along with USAID and other partners, serving on the Board of Directors of Junior Achievement Angola, has contributed $50,000 to start-up Junior Achievement in Angola, as well as providing in-kind support to the program through printing publicity material, shipping Portuguese-language JA teaching kits from Brazil to Luanda, and providing leadership through membership on the organization's board of directors. In addition, Odebrecht joined the Water and Development Alliance, a Coca-Cola-USAID program, by providing $80,000 in in-kind support to construct water points in two peri-urban municipalities of Luanda.
The Coca-Cola Company
The Water and Development Alliance, of $500,000, is being funded as a new part of the global partnership between USAID and Coca-Cola, through the Global Environment and Technology Foundation (GEFT), where water points will be constructed to benefit households in two peri-urban municipalities of Luanda. Coca-Cola has also participated in the program to introduce Junior Achievement to Angola with a $50,000 contribution, is serving on the JA Angola Board of Directors, subsidizes events, and is committing staff volunteers to mentor students in the Angolan schools during the pilot program.
Alcatel-Lucent Technologies
Alcatel is also serving on the Junior Achievement Angola Board of Directors, subsidizes events, and is committing staff volunteers to mentor students in the Angolan schools during the pilot program. It has already contributed in-kind support to the program through business contacts with executives at Angolan companies, and printing publicity material for the program.
