Introduction Angola Benin Burundi Democratic Republic of Congo Eritrea Ethiopia Ghana Guinea Kenya Liberia Madagascar Malawi Mali Mozambique Namibia Nigeria Rwanda Senegal Sierra Leone Somalia South Africa Sudan Tanzania Uganda Zambia Zimbabwe Great Lakes Justice Initiative Regional Economic Development Service for East and Southern Africa & Greater Horn of Africa Initiative Initiative for Southern Africa West Africa Regional Africa Regional Summary Tables Program Summary Strategic Objective Summary Notified Levels for FY 2001 Notified Levels for FY 2002 Abbreviations and Acronyms Glossary Previous Years' Activities 2001, 2000, 1999, 1998, 1997 Wednesday, 29-May-2002 18:52:46 EDT

(Text taken from the FY 2002 Budget Justification)

Introduction

U.S. National Interests

Free and fair trade, addressing the HIV/AIDS epidemic, and building regional stability are at the core of U.S. national interests in Africa. The economic prosperity and national security of the United States are enhanced, and American values concerning afflicted peoples are confirmed, by promoting broad-based economic and social development in Africa.

USAID initiatives are based on an understanding that economic development in Africa promotes political stability, raises living standards, and develops viable markets for U.S. goods, services and investment. Fighting infectious diseases, engaging in crisis prevention, and supporting democracy and governance in Africa reflect the best of American values. Years of experience have demonstrated that it is in the interest of the United States to strengthen the capacity of African states, organizations and individuals to prepare for, prevent, mitigate, and respond to complex emergencies and natural disasters, which often overwhelm existing African structures.

The United States has a unique opportunity to assist sub-Saharan African nations define the types of strategies that will carry them into this new millennium. Better managing of economic resources; combating infectious disease; strengthening democratic governance, advancing the rule of law, and creating an environment conducive to greater trade and investment form the basis for USAID's strategy to loosen the grip of poverty in Africa today, promote stability and build relationships with American enterprise for the future.

Development Challenges

Sub-Saharan Africa faces significant development challenges. These challenges include:

Economic Growth and Agriculture. Today, 300 million Africans live on barely 65 cents a day. Africa's average gross national product (GNP) per capita is $492. In 24 countries GNP per capita is under $350. USAID believes increased economic security can be achieved through raising agricultural productivity; establishing community networks to foster natural resources management; building African capacity; strengthening the political and economic enabling environment; and encouraging trade and investment.

Agricultural development will have one of the greatest impacts in stimulating economies, reducing poverty and helping to feed the poor in sub-Saharan Africa. It also encourages the growth of small- and medium-scale enterprises that are vital to the health of African economies as dynamic sources of job growth and diversification of production. Unfortunately, there are constraints to increasing agricultural productivity including poorly functioning markets and low levels of technology use. Also, the lack of adequate policy and regulatory frameworks causes distortions in agricultural markets and disincentives to agricultural producers. The USAID program emphases include: better linkages between farmers and agribusiness, building agriculture producer groups that are able to effectively access markets and receive fairer product and input prices, promotion of open competitive markets for both agriculture producers and suppliers, strengthening agriculture research systems and advocacy groups to change government policies that are disincentives to increased productivity, encouraging micro-financing institutions serving small and medium producers, and advancing the use of improved agriculture technologies.

Education is an essential ingredient for economic growth and development. However, with a 41% illiteracy rate, Africa lacks an adequate human resource base to bring about the seven percent growth required to cut poverty in half by 2015. The problem includes a lack of resources to fund improvements in educational systems and services, flawed national policies associated with resource allocations, inadequate and inappropriate provision of education services such as teachers, curriculum design, provision of instructional materials and management and support systems, as well as low household demand for the schooling offered. In support of capacity-building, USAID continues to focus the largest share of its education and training resources on primary and basic rather than specialized (e.g., vocational) education because it provides the greatest return on investment in terms of productivity, especially for girls. Eleven bilateral programs bear this focus, sharing a common approach in: (1) promoting systemic reform; (2) assuring that countries have financial support and institutional capacity to build on programs; and (3) concentrating on improving the quality of education.

Although abundant in human and natural resources, Africa's trade and investment profile reflects a continent that has not mastered the key prerequisites for joining the global economy. Africa accounts for only four percent of U.S. total trade with developing nations. There has been a slight increase in intra-African trade, valued at only $19 billion in 1999. In addition, Africa has by far the lowest ratio of investment to gross domestic product (GDP) of any developing region. Foreign direct investment of $7.3 billion in 1999 represented only 3.5% of flows to developing nations and was highly concentrated in five African countries, mostly producers of oil and other minerals. Economic growth in sub-Saharan Africa depends, in part, upon the development of a receptive environment for trade and investment. To help achieve this objective, USAID promotes the harmonization of trade and customs policies; improved finance and investment environments; and business linkages. Economic integration has been enhanced through assistance on regional protocols relating to trade, finance and investment, transport, and telecommunications laws; amelioration of cross border trade barriers; and facilitating efficient movement of goods and services between countries. The Leland Initiative (for the Internet and global information technologies) has been a critical element in helping bridge the digital divide. And USAID support of sub-regional institutions such as the Southern Africa Development Community is facilitating cross-border trade and investment initiatives stimulating African nations to undertake needed reforms. These USAID efforts assist sub-Saharan African nations to participate fully in the world economy by enhancing economic self-reliance by recognizing trade and investment reform are necessary economic development tools.

Having abundant and well-managed natural resources is a precursor to sound economic development. However, Africa's soil and water resources are unevenly distributed and subject to variability and degradation. African forests contain 45 percent of all global biodiversity. Of significant concern, however, is the effective management of this rich resource. While the bulk of African environmental issues relate to natural resource management, including agriculture and biodiversity, rapid urbanization and industrialization of the continent pose new risks. USAID's strategy for the environment focuses on accelerating the identification, development, and dissemination of strategically viable natural resources management systems. USAID is implementing this strategy through: (1) promoting measures to safeguard the environmental underpinnings of broad-based economic growth in areas such as community-based natural resources management, protecting the integrity of critical ecosystems and threats to public health; and (2) reducing long-term threats to the global environment, particularly climate change and the loss of bio-diversity.

Global Health. High mortality, the spread of infectious diseases, and rapid population growth represent a daunting challenge to development in sub-Saharan Africa. One in 16 African women dies due to pregnancy-related causes. On average, 151 of every 1,000 children dies before the age of five. In many countries the mortality rate exceeds 200 per 1,000. Immunization levels are declining and under-five mortality levels are increasing in a number of sub-Saharan countries. In addition, by the end of 1999, nearly 24.5 million adults and children were estimated to be living with HIV/AIDS in sub-Saharan Africa, accounting for over 70% of the world's infected persons. A total of 14.8 million Africans have died as a result of AIDS, an estimated 80% were between the ages of 20 and 50. Over 12 million children have been orphaned. And gains achieved in improving family planning and child survival over the last two decades are threatened and could be reversed. Life expectancy will be reduced from 59 to 45 years between 2005 and 2010. Long-term effects from HIV/AIDS extend well beyond the health sector. Economists estimate that the shrinking labor pool (10% of southern Africa's workforce is infected) will slow the continent's economic growth rate by as much as 2% per year.

The continent's HIV/AIDS epidemic threatens to compromise economic, social, and democratic gains. USAID programs that are seeking to slow, and where possible reverse, the spread of the disease include extensive education campaigns, expanded public, private, non-profit health interventions, and promotion of greater political attention to the problem by Africa's leadership. USAID programs have been able to achieve increased political commitment, an environment of reduced stigma, and greater capacity building among local non-governmental organizations (NGOs). Future directions include significantly scaling up successful interventions, increasing support for countries that currently have low prevalence rates, and targeting high-risk groups and areas.

Unchecked population growth could erode economic potential, food security, environmental conditions, or fuel instability. Fertility rates have started to decline in sub-Saharan Africa, particularly in countries with higher incomes and better access to contraception. Still, some countries in the region have the highest fertility rates in the world (Angola 6.7 children per woman) and contraceptive prevalence rates remain under 15% in most of sub-Saharan Africa. With nearly 650 million people and a population growth rate of 2.7% annually, sub-Saharan Africa will grow to over one billion people by 2020, despite declining birthrates and increasing number of deaths from AIDS. USAID is supporting public and private commercial marketing and education efforts promoting adoption of modern, acceptable family planning practices.

Negative trends in maternal and child health in parts of sub-Saharan Africa continue to be troubling. Efforts underpinning USAID country strategies to reverse these declines include programs focusing on decentralization of health service decision-making to community groups, health sector financing reform, human resources management of health care, providing better access to health facilities, combating drug-resistant malaria and other infectious disease treatments, and targeting mother-to-child transmission of HIV/AIDS.

Conflict Prevention and Developmental Relief. Approximately half of the countries in sub-Saharan Africa are at serious risk of violent conflict and instability for the foreseeable future. In 2000, 14 countries were involved in armed conflict or natural disasters uprooting 3 million people. These humanitarian crises and complex emergencies disrupt lives, jeopardize economic development, and threaten the progress made in health, education, agriculture, and environment. Moreover, they divert resources that could otherwise be used for economic and social development. In addition to conflict and crisis, most sub-Saharan African countries continue to struggle with the shift from statist, authoritarian regimes to more pluralistic, participatory governments. Despite progress in expanding and consolidating democracy in some sub-Saharan African countries over the last 10 years, much work remains to be done to put Africa firmly on the path towards responsible and representative governance, including addressing issues of corruption, and respect for the rule of law.

USAID's approach to crisis prevention and response in Africa is multi-faceted and involves both short-term and long-term interventions. In the short term, the Africa Bureau works closely with its colleagues in the Bureau of Humanitarian Response to prevent and mitigate humanitarian emergencies through improved food security and the effective targeting of food aid. USAID assistance also helps to meet the basic needs of displaced people and facilitates transitions out of crisis by helping to reintegrate combatants into civil society, repatriate and resettle refugees, and rebuild institutions of law and stable governance. USAID long-term development assistance seeks to address the root causes of conflict and to mitigate the effects of natural disasters by promoting environmentally sound natural resource management, improving citizen access to basic health services and education, creating income-generating opportunities, and encouraging accountable and transparent governance. Recognizing the importance of conflict prevention to the Agency's entire development mission, the Africa Bureau has taken the lead in integrating conflict analyses into the strategic planning process in all areas of assistance.

The Africa Bureau's democracy and governance programs seek to support democratic political development by helping to establish enduring political practices, institutions and values that mobilize public participation, foster respect for basic human rights; and promote open, lawful and accountable governance. USAID assistance focuses on strengthening judiciaries, parliaments, and local governments, building political parties that can compete freely and fairly in credible elections, and increasing the capability of civil society and the media to play an active and positive role in the democratic governance of their countries. These programs also contribute to conflict prevention and developmental relief by helping to build democratic societies in which the open debate of divisive issues can occur in a stable political framework for the peaceful settlement of disputes. By fostering public sector accountability and sound management practices, democracy programs also build the institutional capacity of governments and local civil society organizations to avoid or manage humanitarian crises and complex emergencies.

Debt. Sub-Saharan African debt nearly quadrupled from 1980 to 1998. As of 1998, total debt service as a percentage of exports of goods and services more than doubled from 7.2% in 1980 to 14.7%. During this same period exports increased minimally from approximately $89.5 billion to $90 billion, while the growth of imports dramatically rose from $83.5 billion to $104.3 billion, exacerbating existing current account deficits. In late 1999, the international community endorsed the Enhanced Initiative for Heavily Indebted Poor Countries framework which was committed to "deeper, broader and faster" debt relief to countries pursuing reform and poverty reduction. The $20.3 billion of debt relief committed to the first 22 African countries amounted to nearly one-half of their total stock of external debt. In combination with other coordinated debt reduction mechanisms, the external indebtedness of these countries will be reduced by about two thirds. Debt service as a percentage of exports for the 22 African countries is expected to be reduced over the coming years from about 16.8% to an average of 8%, less than half the average for developing countries; and as a percentage of GDP from 3.7 to around 2. Increases in education and health spending will absorb about two-thirds of the total relief, with 39% directed towards education and 25% to healthcare, with the remaining one-third targeted at agriculture, the environment and enterprise development.

Global Development Alliance. USAID expects the new Global Development Alliance (GDA) to assist us in building on existing partnerships and forging new alliances with the corporate sector, foundations, universities and non-traditional private voluntary and non-governmental organizations, all of which have important contributions to make to the challenges facing the continent. USAID expects that such alliances in agriculture, basic education, and HIV/AIDS in particular can bring new thinking as well as resources to bear on some of the most significant obstacles to Africa's development. USAID's preliminary work with the Gates Foundation to expand health care services in Mali could be a pre-cursor to the types of partnerships envisioned under the alliance.

Program and Management Challenges

HIV/AIDS. Spending on HIV/AIDS must be dramatically increased in order to meet even the most basic care and prevention needs in sub-Saharan Africa. It is estimated that $3 billion annually is needed for basic care and prevention of HIV/AIDS in Africa. This is almost ten times what is being spent today.

Crisis and Transition. Developing approaches to complex crises in the Congo, Burundi, Sudan and the arc of conflict in West Africa (Guinea, Liberia, and Sierra Leone) while preserving recent economic and social gains presents a major challenge to USAID, especially where there is restricted and reduced or no USAID presence. In transition countries, such as Nigeria, the challenge is to maintain momentum for democratic reforms as economic policies, business practices and investment environments are transformed. Unfortunately, intra-state conflicts continue to de-stabilize east and central Africa and democracy is threatened in Zimbabwe. USAID is programming resources to address decentralization and increase focus on anti-corruption activities such as in South Africa, where resources are addressing factors that could derail the transition, i.e., HIV/AIDS and high unemployment.

Staffing and Operating Expenses. USAID must continue to meet the needs of a dynamic assistance program while direct hire staff for program direction and oversight remains at approximately 210 U.S. direct hire in Africa and 90 U.S. direct hire in Washington. The programming challenges dictate that staff skills need to be upgraded and communication networks strengthened and expanded in order to meet new efforts in HIV/AIDS, enhancing regional coordination and expanding performance management.

Security. Security assessments of USAID's missions following the Nairobi, Kenya and Dar es Salaam, Tanzania bombings of 1998 revealed vulnerabilities at 20 of 23 USAID missions in sub-Saharan Africa. Only one mission met all of the physical security standards of the Department of State's Foreign Buildings Office. Since 1998, seven facilities have been or are in the process of being relocated. Thirteen missions still fall short of meeting the standards. Included in this number are those located in Addis Ababa, Ethiopia; Asmara, Eritrea; Bamako, Mali; and Harare, Zimbabwe, all of which are considered to have critical or high levels of threat. Funding required to bring these four critical and high threat missions to standard is estimated to be $60 million. Funding required to bring the remaining nine missions within standard is estimated to be $200 million. To date, no funding for these projects has been identified.

Other Donors

According to the Organization for Economic Cooperation and Development, Development Assistance Committee, in 1999, the United States ranked third behind France and Germany, and ranks only slightly higher than the United Kingdom and Japan, among bilateral donors in terms of assistance to sub-Saharan Africa. Major multilateral donors in Africa include the World Bank Group, lending almost exclusively through its concessionary International Development Association window, the European Union, the United Nations, and the African Development Bank.

According to a 2000 World Bank report, official aid to sub-Saharan Africa fell from $32 per head in 1990 to $19 in 1998, despite evidence of development results in countries with sound social and economic policies. With global aid budgets declining, bilateral and multilateral donors are increasing coordination to improve effectiveness and efficiency in programming assistance. Via multi-donors efforts such as the Strategic Partnership for Africa and the Global Coalition for Africa, and better communication with other donors, USAID looks continually for opportunities to improve donor efficiency and leverage resources. Regional donor organizations have also been effective means to coordinate and leverage donor assistance toward regional development challenges. For example, the Club du Sahel, working with the Permanent Interstate Committee for Drought Control in the Sahel, has helped break what was previously thought to be permanent food insecurity in the west African Sahel. In east Africa and the Horn, the Intergovernmental Authority on Development (IGAD), working with the IGAD Partners Forum of donors, is addressing issues related to food insecurity and conflict. USAID also works closely with other U.S. government agencies (e.g., State, Treasury, Agriculture, and Centers for Disease Control), to implement agriculture and economic growth, democracy, health, education, and other priority programs.

FY 2002 Program

USAID's program in sub-Saharan Africa is based on the Agency's leadership role in reducing poverty and equitable economic growth, ensuring citizen participation and the rule of law, combating the spread of infectious disease and strengthening human capacity needed to deepen and develop the region's competitiveness in the global economy. The specific programs and results to be achieved are described in the country narratives and the activity data sheets.

Economic Growth and Agriculture. Promoting broad-based economic growth is fundamental to the success of USAID's development strategy in sub-Saharan Africa. USAID initiatives have advanced and will continue to advance agricultural development to spur economic growth and reduce poverty. USAID intends to focus in countries where food insecurity is the greatest and where governments are committed to improving the conditions for increasing growth and reducing poverty. Investments in delivering technologies, such as biotechnology, into the hands of farmers and entrepreneurs will be an increasing focus area. Working to increase agricultural yields (as in Uganda) creates options for farmers to diversify into higher-value crops (such as horticulture and dairy in East Africa) and link farmers with businesses (such as in Ghana). USAID will continue to support micro-, small-, and medium-scale enterprises and agribusiness programs such as in South Africa where the creation of 4,000 new employment opportunities has generated of over $50 million in business transactions between small and large companies. Addressing the daunting problem of soil degradation (as in Mali) also forms part of the core of our agriculture program.

USAID assistance will establish conditions that enable broad-based changes in natural resources management. There is now more capacity for groups, such as farmers and communities, to advocate for reforms that will lead to improving natural resources while being of economic benefit. In Madagascar USAID's support improves the country's ability to manage its bio-diversity by expanding natural resource management responsibilities to local institutions and increasing private sector involvement in conservation enterprises within ecological regions.

USAID's three-pronged approach to basic education is classroom-based, measuring improvements in the quality and quantity of student learning; systemic in promoting African-led national plans; and sustainable, as it improves policy analysis and dialogue, builds capacity to manage reform, and increases national and local expenditures for education. USAID works with local partners to improve school effectiveness in Ethiopia, Ghana, Guinea, Malawi, Mali, and Namibia. In Uganda, clusters of schools are supported with professional development and training.

Under the Strategies and Analyses for Growth and Access (SAGA) program, USAID will support capacity building through educational training for African economists to strengthen their ability to analyze and manage the economic reform process. SAGA will also support African-led policy analyses on economic reform issues, thereby ensuring greater local ownership of reform processes. Under the Africa Trade and Investment Policy program, more than 40 activities totaling $57 million have improved the trade and investment environment in 11countries and three sub-regions in Africa to date. For 2002, this program will continue to provide business linkages between U.S. and African firms, business associations and networks, and increase joint-venture opportunities and private investment flows.

Global Health. USAID improves health in sub-Saharan Africa through strengthening of immunization programs, support to health financing schemes, greater access to health facilities and services and education. In Ghana, USAID targets greater immunization coverage, the expansion of a national Vitamin A distribution program and the launching of an anti-malaria program. As a result of USAID's work in South Africa, more than 80% of the health facilities in the Eastern Cape now provide basic primary health care services five days per week thus expanding access to health care services. USAID's programs influence the development of locally appropriate feeding guidelines for HIV-infected women, such as in Zambia, Zimbabwe and South Africa; develop and promote improved regional strategies for immunization, through the World Health Organization; and influence new HIV/AIDS policies in South Africa, Tanzania, Zambia, and Zimbabwe. Five years ago, condoms were largely unavailable in Ethiopia. Today, 24 million condoms are being socially marketed annually. In Kenya, the annual population growth rate has decreased from 4.1% in 1980-1985 to an estimated 2.1% in 1999.

Conflict Prevention and Developmental Relief. USAID helps advance democracy in Africa by promoting free and fair elections, the rule of law, a greater advocacy role for civil society, and transparent, accountable, and participatory governance. USAID assistance contributed to the successful elections in Ghana and Senegal, marking the first time in either country's history where power was handed over from one party to another through a democratic process. In South Africa, USAID has been supportive of the constitutional revision process since the end of the apartheid-era, most recently contributing technical assistance in drafting landmark civil rights legislation. In Kenya, USAID-funded civil society organizations have made significant achievements in consolidating a challenge to the strong authority of the executive branch, brokering opposing parties in the constitutional reform process, and undertaking a basic rights campaign against economic injustice. In addition, USAID's focus on conflict prevention and mitigation has improved collaboration between government and civic leaders to solve community problems in Mali; assisted the arbitration of legal disputes in Zambia and South Africa; and improved public debate and democratic institutions in Mozambique.

Developmental relief is a staggering proposition - nearly a third of sub-Saharan Africa's population of 200 million goes to bed hungry. In addressing humanitarian assistance needs, the Famine Early Warning System promotes consensus-building among donors that led to food being provided to 8 million severely at-risk people in Ethiopia. Working with the World Health Organization and the Centers for Disease Control, regional contingency stocks of drugs, materials and essential supplies have been set up in central, western and southern Africa and the Great Lakes region, markedly improving response time to potential crises. Likewise, the Africa Emergency Locust and Grasshopper Assistance activity helped to avert pestilence through training over 250 crop protection officers in Mauritania, Senegal and Tanzania.