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CBJ 2006
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Search for information in the FY 2006 Congressional Budget Justification:

   

Regional Center for Southern Africa

Budget Summary Please note: All linked documents are in PDF format

Objective SO Number FY 2004 FY 2005 FY 2006
A More Competitive Southern African Economy 690-014 5,017 5,400 5,000
Improved Rural Livelihoods 690-015 7,534 5,418 6,400
Improved Electoral Competition in Southern Africa 690-016 3,787 2,456 2,428
Improved Management of Selected River Basins 690-017 2,583 2,023 2,240
Southern Africa Regional HIV/AIDS Program 690-019 6,950 7,486 7,950
Total (in thousands of dollars) 25,871 22,783 24,018

Excludes P.L. 480. See Program Annex.

The Development Challenge: The Regional Center for Southern Africa (RCSA) manages the development assistance component of the Southern Africa regional program. However, USAID South Africa manages the Regional HIV/AIDS Program component of the regional portfolio. The Southern Africa regional program covers the 12 countries that are members of the Southern Africa Development Community (SADC). The SADC member countries range from very poor (Angola, Lesotho, Malawi, Mozambique, Tanzania, and Zambia) to low middle-income (Botswana, Mauritius, Namibia, South Africa, Swaziland, and Zimbabwe). However, even within the wealthier countries in the region, significant income inequality and poverty exist.

Although the region is anchored by the modern and diversified economy of South Africa, many of the countries continue to be predominantly agricultural. Agriculture accounts for an estimated 70% to 80% of employment, but contributes only about 17% to regional gross domestic product (GDP) because of low productivity. Several countries rely heavily on extractive industries, while a few have had some success in increasing non-traditional exports to the United States under the African Growth and Opportunity Act. In most countries in the region, the rate of GDP growth stagnated or fell in 2003; average GDP growth was 4.5% (not including Zimbabwe). This is far below the estimated 6.2% annual growth that the region needs to meet its poverty alleviation goals. Challenged by poverty and insufficient investment, hard hit by the HIV/AIDS pandemic, and continually beset by droughts and food insecurity, the region's population has seen its average life expectancy drop from 57 years to 33 years. The continuing political crisis in Zimbabwe illustrates the fragility of democratic institutions in the region.

Southern Africa remains the region of the world most severely affected by HIV/AIDS. In at least six countries-Botswana, Lesotho, Namibia, South Africa, Swaziland, and Zimbabwe-it is estimated that more than a fifth of the adult population is infected with HIV, and in Botswana and Swaziland (with prevalence rates of 37.3 and 38.8%, respectively) nearly two out of five adults may be HIV-infected. The burden of the epidemic on the region is staggering. With less than 2% of the world's population, the ten Southern African countries account for 30% of HIV-infected individuals, 27% of children orphaned by AIDS, and 32% of AIDS deaths. Moreover, the epidemic has not yet peaked (except, possibly, in Zambia) and the disproportionate effect on the region is likely to continue.

Contrasted with this bleak economic picture is the more positive one of a region with relatively well-developed infrastructure, diverse natural resources, generally better health and education than the rest of Sub-Saharan Africa (apart from HIV/AIDS) and nascent democratic governments. The region remains relatively peaceful compared to other sub-regions of Africa, which makes possible movement towards greater regional integration.

The United States has four main interests in southern Africa: increasing trade and strengthening economic ties with the SADC region; mitigating the region's HIV/AIDS crisis; recurrent food insecurity; and strengthening democracy to improve the climate for trade and reduce the risk of conflict in the region.

The USAID Program: USAID is requesting FY 2006 funding for programs which will focus on increasing competitiveness, improving rural livelihoods, increasing electoral competition, improving river basin management in the Southern African region, and HIV/AIDS. USAID began a new strategy in FY 2004, so implementation of the activities has just begun.

USAID provides a regional platform for several Presidential and Agency Initiatives, specifically the Trade for African Development and Enterprise Initiative, the Initiative to End Hunger in Africa, the Anti-Corruption Initiative and the Conflict Initiative. The first two initiatives and the regular program will finance activities that promote economic growth through trade and enhanced competitiveness, as well as increase opportunities for rural livelihoods via technical support for emerging commercial farmers and policy support to facilitate market access.

Funds from the Anti-Corruption Initiative will be added to the regular democracy and governance program to fund activities that address electoral frameworks and civil society involvement in the eight upcoming national elections in 2005-2007. Conflict Initiative funding will be channeled to reduce electoral and governance-based conflict in fragile states in the southern Africa region.

Funding for the fourth area of activity, river basin management, will be used to support institution strengthening and community management of water resources in the Okavango River Basin.

With Presidential Emergency Plan for AIDS Relief (PEPFAR) funding, USAID's Southern Africa Regional HIV/AIDS Program (RHAP) strengthens U.S. Government efforts to combat the impact of HIV/AIDS across the region. RHAP is implemented by the USAID/South Africa bilateral mission.

Other Program Elements: USAID's Africa Bureau supports the drought preparedness activities of the Famine Early Warning System Network (FEWSNET) across the countries in southern Africa that are most affected by the drought.

Other Donors: USAID uses the joint consultative meetings organized by the European Union (EU) and SADC for overall donor coordination. Sector-specific coordination has been developed in two sectors (trade and river basin management) and in sub-sectors of the democracy and agricultural areas (e.g., election monitoring and coordinated response to food shortages). Overall, the EU and the United Kingdom (UK) have the largest regional programs in southern Africa. The EU, USAID and the UK have the largest regional programs in economic growth and infrastructure. Similarly, the UK, USAID and Denmark have the largest regional democracy and governance programs. The EU, USAID, and Norway have the largest regional environment and natural resource management programs; and the EU, USAID, and the UK have the largest regional agriculture programs. The International Monetary Fund (IMF) works on anti-corruption initiatives, and the UK is involved in the development of electoral norms and standards. Sweden and the United Nation's Global Environmental Facility support river basin management activities in the Okavango River Basin. The economic growth areas in which USAID is working receive support from a number of donors, namely the EU, the UK, and Germany (regional trade); the EU, World Bank and IMF (economic and financial sector reform); the World Bank, EU, and the UKDFID (Customs reform and administration), Germany (private sector development), and the UK (food security). A range of donor governments are working in the area of HIV/AIDS in the region including the United Kingdom, Australia, and Denmark, as well as the EU. In addition, RHAP, together with the U.S. Centers for Disease Control and Prevention, will collaborate with UNAIDS and the World Health Organization to promote communication and collaboration in all areas of HIV/AIDS prevention, treatment and care and support.

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Tue, 14 Jun 2005 16:04:57 -0500
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