Long-term development assistance for sub-Saharan Africa
Findings
The Congress finds that—
drought and famine have caused countless deaths and untold suffering among the people of sub-Saharan Africa;
drought and famine in combination with other factors such as desertification, government neglect of the agricultural sector, and inappropriate economic policies have severely affected long-term development in sub-Saharan Africa; and
the most cost-effective and efficient way of overcoming Africa’s vulnerability to drought and famine is to address Africa’s long-term development needs through a process that builds upon the needs and capabilities of the African people, promotes sustained and equitable economic growth, preserves the environment, and protects the rights of the individual.
Authority to furnish assistance
Purpose of assistance
Purpose
Use of assistance to encourage private sector development
Application of development assistance general authorities and policies
Except to the extent inconsistent with this section—
any reference in any law to part I of this subchapter (including references to sections 2151a through 2151d of this title) shall be deemed to include a reference to this section; and
assistance under this section shall be provided consistent with the policies contained in section 2151–1 of this title.
Private and voluntary organizations
Consultation to ensure local perspectives
“Private and voluntary organization” defined
Local involvement in project implementation
Participation of African women
Types of assistance
Projects and programs to address critical sectoral priorities
Reform of economic policies
Use of program assistance
Protection of vulnerable groups
Democratization and conflict resolution capabilities
Assistance under this section may also include program assistance—
to promote democratization, good governance, and strong civil societies in sub-Saharan Africa; and
to strengthen conflict resolution capabilities of governmental, intergovernmental, and nongovernmental entities in sub-Saharan Africa.
Other assistance
Critical sectoral priorities
The critical sectoral priorities for long-term development, as described in subsection (c), are the following:
Agricultural production and natural resources
Agricultural production
Natural resource base
Maintaining and restoring the renewable natural resource base primarily in ways which increase agricultural production, through the following:
Small-scale, affordable, resource-conserving, low-risk local projects, using appropriate technologies (including traditional agricultural methods) suited to local environmental, resource, and climatic conditions, and featuring close consultation with and involvement of local people at all stages of project design and implementation. Emphasis shall be given to grants for African local government organizations, international or African nongovernmental organizations, and United States private and voluntary organizations.
Support for efforts at national and regional levels to provide technical and other support for projects of the kinds described in clause (i) and to strengthen the capacities of African countries to provide effective extension and other services in support of environmentally sustainable increases in food production.
Support for special training and education efforts to improve the capacity of countries in sub-Saharan Africa to manage their own environments and natural resources.
Support for low-cost desalination activities in order to increase the availability of fresh water sources in sub-Saharan Africa.
Health
Voluntary family planning services
Education
Income-generating opportunities
Minimum levels of assistance for certain critical sectors
The Agency for International Development should target the equivalent of 10 percent of the amount authorized to be appropriated for each fiscal year to carry out this part for each of the following:
The activities described in subsection (i)(1)(B), including identifiable components of agricultural production projects.
The activities described in subsection (i)(2).
The activities described in subsection (i)(3).
Effective use of assistance
Promotion of regional integration
Donor coordination mechanism
Relation to other authorities
Assistance under other authorities
Transfer authorities
The transfer authority contained in section 2151g of this title shall not apply with respect to this section.
The transfer authority contained in section 2360(a) of this title may not be used to transfer funds made available to carry out this section in order to allow them to be used in carrying out any other provision of this chapter.
Reprogramming notifications
Procurement of goods and services
Support for SADCC projects
Authority to provide assistance
Sectors
Relation to DFA policies and authorities
Source
(Pub. L. 87–195, pt. I, § 496, as added Pub. L. 101–513, title V, § 562(a),Notes
Editorial Notes
References in Text
Prior Provisions
Amendments
Electrify Africa
SHORT TITLE.
PURPOSE.
STATEMENT OF POLICY.
“It is the policy of the United States to partner, consult, and coordinate with the governments of sub-Saharan African countries, international financial institutions, and African regional economic communities, cooperatives, and the private sector, in a concerted effort to—
promote first-time access to power and power services for at least 50,000,000 people in sub-Saharan Africa by 2020 in both urban and rural areas;
encourage the installation of at least 20,000 additional megawatts of electrical power in sub-Saharan Africa by 2020 using a broad mix of energy options to help reduce poverty, promote sustainable development, and drive inclusive economic growth;
promote non-discriminatory reliable, affordable, and sustainable power in urban areas (including small urban areas) to promote economic growth and job creation;
promote policies to facilitate public-private partnerships to provide non-discriminatory reliable, sustainable, and affordable electrical service to rural and underserved populations;
encourage the necessary in-country reforms, including facilitating public-private partnerships specifically to support electricity access projects to make such expansion of power access possible;
promote reforms of power production, delivery, and pricing, as well as regulatory reforms and transparency, to support long-term, market-based power generation and distribution;
promote policies to displace kerosene lighting with other technologies;
promote an all-of-the-above energy development strategy for sub-Saharan Africa that includes the use of oil, natural gas, coal, hydroelectric, wind, solar, and geothermal power, and other sources of energy; and
promote and increase the use of private financing and seek ways to remove barriers to private financing and assistance for projects, including through charitable organizations.
DEVELOPMENT OF COMPREHENSIVE, MULTIYEAR STRATEGY.
Strategy Required.—
In general.—
The President shall establish a comprehensive, integrated, multiyear strategy to encourage the efforts of countries in sub-Saharan Africa to implement national power strategies and develop an appropriate mix of power solutions to provide access to sufficient reliable, affordable, and sustainable power in order to reduce poverty and drive economic growth and job creation consistent with the policy stated in section 3.
Flexibility and responsiveness.—
The President shall ensure that the strategy required under paragraph (1) maintains sufficient flexibility for and remains responsive to concerns and interests of affected local communities and technological innovation in the power sector.
Report Required.—
Not later than 180 days after the date of the enactment of this Act [
The objectives of the strategy and the criteria for determining the success of the strategy.
A general description of efforts in sub-Saharan Africa to—
increase power production;
strengthen electrical transmission and distribution infrastructure;
provide for regulatory reform and transparent and accountable governance and oversight;
improve the reliability of power;
maintain the affordability of power;
maximize the financial sustainability of the power sector; and
improve non-discriminatory access to power that is done in consultation with affected communities.
A description of plans to support efforts of countries in sub-Saharan Africa to increase access to power in urban and rural areas, including a description of plans designed to address commercial, industrial, and residential needs.
A description of plans to support efforts to reduce waste and corruption, ensure local community consultation, and improve existing power generation through the use of a broad power mix, including fossil fuel and renewable energy, distributed generation models, energy efficiency, and other technological innovations, as appropriate.
An analysis of existing mechanisms for ensuring, and recommendations to promote—
commercial cost recovery;
commercialization of electric service through distribution service providers, including cooperatives, to consumers;
improvements in revenue cycle management, power pricing, and fees assessed for service contracts and connections;
reductions in technical losses and commercial losses; and
non-discriminatory access to power, including recommendations on the creation of new service provider models that mobilize community participation in the provision of power services.
A description of the reforms being undertaken or planned by countries in sub-Saharan Africa to ensure the long-term economic viability of power projects and to increase access to power, including—
reforms designed to allow third parties to connect power generation to the grid;
policies to ensure there is a viable and independent utility regulator;
strategies to ensure utilities become or remain creditworthy;
regulations that permit the participation of independent power producers and private-public partnerships;
policies that encourage private sector and cooperative investment in power generation;
policies that ensure compensation for power provided to the electrical grid by on-site producers;
policies to unbundle power services;
regulations to eliminate conflicts of interest in the utility sector;
efforts to develop standardized power purchase agreements and other contracts to streamline project development;
efforts to negotiate and monitor compliance with power purchase agreements and other contracts entered into with the private sector; and
policies that promote local community consultation with respect to the development of power generation and transmission projects.
A description of plans to ensure meaningful local consultation, as appropriate, in the planning, long-term maintenance, and management of investments designed to increase access to power in sub-Saharan Africa.
A description of the mechanisms to be established for—
selection of partner countries for focused engagement on the power sector;
monitoring and evaluating increased access to, and reliability and affordability of, power in sub-Saharan Africa;
maximizing the financial sustainability of power generation, transmission, and distribution in sub-Saharan Africa;
establishing metrics to demonstrate progress on meeting goals relating to access to power, power generation, and distribution in sub-Saharan Africa; and
terminating unsuccessful programs.
A description of how the President intends to promote trade in electrical equipment with countries in sub-Saharan Africa, including a description of how the government of each country receiving assistance pursuant to the strategy—
plans to lower or eliminate import tariffs or other taxes for energy and other power production and distribution technologies destined for sub-Saharan Africa, including equipment used to provide energy access, including solar lanterns, solar home systems, and micro and mini grids; and
plans to protect the intellectual property of companies designing and manufacturing products that can be used to provide energy access in sub-Saharan Africa.
A description of how the President intends to encourage the growth of distributed renewable energy markets in sub-Saharan Africa, including off-grid lighting and power, that includes—
an analysis of the state of distributed renewable energy in sub-Saharan Africa;
a description of market barriers to the deployment of distributed renewable energy technologies both on- and off-grid in sub-Saharan Africa;
an analysis of the efficacy of efforts by the Overseas Private Investment Corporation [now the United States International Development Finance Corporation] and the United States Agency for International Development to facilitate the financing of the importation, distribution, sale, leasing, or marketing of distributed renewable energy technologies; and
a description of how bolstering distributed renewable energy can enhance the overall effort to increase power access in sub-Saharan Africa.
A description of plans to ensure that small and medium enterprises based in sub-Saharan Africa can fairly compete for energy development and energy access opportunities associated with this Act.
A description of how United States investments to increase access to energy in sub-Saharan Africa may reduce the need for foreign aid and development assistance in the future.
A description of policies or regulations, both domestically and internationally, that create barriers to private financing of the projects undertaken in this Act.
A description of the specific national security benefits to the United States that will be derived from increased energy access in sub-Saharan Africa.
Interagency Working Group.—
In general.—
The President may, as appropriate, establish an Interagency Working Group to coordinate the activities of relevant United States Government departments and agencies involved in carrying out the strategy required under this section.
Functions.—
The Interagency Working Group may, among other things—
seek to coordinate the activities of the United States Government departments and agencies involved in implementing the strategy required under this section;
ensure efficient and effective coordination between participating departments and agencies; and
facilitate information sharing, and coordinate partnerships between the United States Government, the private sector, and other development partners to achieve the goals of the strategy.
PRIORITIZATION OF EFFORTS AND ASSISTANCE FOR POWER PROJECTS IN SUB-SAHARAN AFRICA BY KEY UNITED STATES INSTITUTIONS.
In General.—
In pursuing the policy goals described in section 3, the Administrator of the United States Agency for International Development, the Director of the Trade and Development Agency, the United States International Development Finance Corporation, and the Chief Executive Officer and Board of Directors of the Millennium Challenge Corporation should, as appropriate, prioritize and expedite institutional efforts and assistance to facilitate the involvement of such institutions in power projects and markets, both on- and off-grid, in sub-Saharan Africa and partner with other investors and local institutions in sub-Saharan Africa, including private sector actors, to specifically increase access to reliable, affordable, and sustainable power in sub-Saharan Africa, including through—
maximizing the number of people with new access to power and power services;
improving and expanding the generation, transmission and distribution of power;
providing reliable power to people and businesses in urban and rural communities;
addressing the energy needs of marginalized people living in areas where there is little or no access to a power grid and developing plans to systematically increase coverage in rural areas;
reducing transmission and distribution losses and improving end-use efficiency and demand-side management;
reducing energy-related impediments to business productivity and investment; and
building the capacity of countries in sub-Saharan Africa to monitor and appropriately and transparently regulate the power sector and encourage private investment in power production and distribution.
Effectiveness Measurement.—
In prioritizing and expediting institutional efforts and assistance pursuant to this section, as appropriate, such institutions shall use clear, accountable, and metric-based targets to measure the effectiveness of such guarantees and assistance in achieving the goals described in section 3.
Promotion of Use of Private Financing and Assistance.—
In carrying out policies under this section, such institutions shall promote the use of private financing and assistance and seek ways to remove barriers to private financing for projects and programs under this Act, including through charitable organizations.
Rule of Construction.—
Nothing in this section may be construed to authorize modifying or limiting the portfolio of the institutions covered by subsection (a) in other developing regions.
LEVERAGING INTERNATIONAL SUPPORT.
“In implementing the strategy described in section 4, the President should direct the United States representatives to appropriate international bodies to use the influence of the United States, consistent with the broad development goals of the United States, to advocate that each such body—
commit to significantly increase efforts to promote investment in well-designed power sector and electrification projects in sub-Saharan Africa that increase energy access, in partnership with the private sector and consistent with the host countries’ absorptive capacity;
address energy needs of individuals and communities where access to an electricity grid is impractical or cost-prohibitive;
enhance coordination with the private sector in sub-Saharan Africa to increase access to electricity;
provide technical assistance to the regulatory authorities of sub-Saharan African governments to remove unnecessary barriers to investment in otherwise commercially viable projects; and
utilize clear, accountable, and metric-based targets to measure the effectiveness of such projects.
PROGRESS REPORT.
In General.—
Not later than three years after the date of the enactment of this Act [
A report on United States programs supporting implementation of policy and legislative changes leading to increased power generation and access in sub-Saharan Africa, including a description of the number, type, and status of policy, regulatory, and legislative changes initiated or implemented as a result of programs funded or supported by the United States in countries in sub-Saharan Africa to support increased power generation and access after the date of the enactment of this Act.
A description of power projects receiving United States Government support and how such projects, including off-grid efforts, are intended to achieve the strategy described in section 4.
For each project described in paragraph (2)—
a description of how the project fits into, or encourages modifications of, the national energy plan of the country in which the project will be carried out, including encouraging regulatory reform in that county;
an estimate of the total cost of the project to the consumer, the country in which the project will be carried out, and other investors;
the amount of financing provided or guaranteed by the United States Government for the project;
an estimate of United States Government resources for the project, itemized by funding source, including from the United States International Development Finance Corporation, the United States Agency for International Development, the Department of the Treasury, and other appropriate United States Government departments and agencies;
an estimate of the number and regional locations of individuals, communities, businesses, schools, and health facilities that have gained power connections as a result of the project, with a description of how the reliability, affordability, and sustainability of power has been improved as of the date of the report;
an assessment of the increase in the number of people and businesses with access to power, and in the operating electrical power capacity in megawatts as a result of the project between the date of the enactment of this Act and the date of the report;
a description of efforts to gain meaningful local consultation for projects associated with this Act and any significant estimated noneconomic effects of the efforts carried out pursuant to this Act; and
a description of the participation by small and medium enterprises based in sub-Saharan Africa on projects associated with this Act.”
Agricultural and Rural Development in Sub-Saharan Africa
Findings.—
Congress finds the following:
The economic, security, and humanitarian interests of the United States and the nations of sub-Saharan Africa would be enhanced by sustainable, broad-based agricultural and rural development in each of the African nations.
According to the Food and Agriculture Organization, the number of undernourished people in Africa has more than doubled, from approximately 100,000,000 in the late 1960s to 215,000,000 in 1998, and is projected to increase to 265,000,000 by the year 2010. According to the Food and Agriculture Organization, the term ‘under nutrition’ means inadequate consumption of nutrients, often adversely affecting children’s physical and mental development, undermining their future as productive and creative members of their communities.
Currently, agricultural production in Africa employs about two-thirds of the workforce but produces less than one-fourth of the gross domestic product in sub-Saharan Africa, according to the World Bank Group.
African women produce up to 80 percent of the total food supply in Africa according to the International Food Policy Research Institute.
An effective way to improve conditions of the poor is to increase the productivity of the agricultural sector. Productivity increases can be fostered by increasing research and education in agriculture and rural development.
In November 1996, the World Food Summit set a goal of reducing hunger worldwide by 50 percent by the year 2015 and encouraged national governments to develop domestic food plans and to support international aid efforts.
Although the World Bank Group recently has launched a major initiative to support agricultural and rural development, only 10 percent, or $1,200,000,000, of its total lending to sub-Saharan Africa for fiscal years 1993 to 1997 was devoted to agriculture.
United States food processing and agricultural sectors benefit greatly from the liberalization of global trade and increased exports.
Africa represents a growing market for United States food and agricultural products. Africa’s food imports are projected to rise from less than 8,000,000 metric tons in 1990 to more than 25,000,000 metric tons by the [sic] 2020.
Increased private sector investment in African countries and expanded trade between the United States and Africa can greatly help African countries achieve food self-sufficiency and graduate from dependency on international assistance.
Development assistance, technical assistance, and training can facilitate and encourage commercial development in Africa, such as improving rural roads, agricultural research and extension, and providing access to credit and other resources.
Several United States private voluntary organizations have demonstrated success in empowering Africans through direct business ownership and helping African agricultural producers more efficiently and directly market their products.
Rural business associations, owned and controlled by farmer shareholders, also greatly help agricultural producers to increase their household incomes.
Declaration of Policy.—
It is the policy of the United States, consistent with title XII of part I of the Foreign Assistance Act of 1961 [probably means title XII of chapter 2 of part I of the Foreign Assistance Act of 1961, 22 U.S.C. 2220a et seq.], to support governments of sub-Saharan African countries, United States and African nongovernmental organizations, universities, businesses, and international agencies, to help ensure the availability of basic nutrition and economic opportunities for individuals in sub-Saharan Africa, through sustainable agriculture and rural development.”
AFRICA FOOD SECURITY INITIATIVE.
Additional Requirements in Carrying Out the Initiative.—
In providing development assistance under the Africa Food Security Initiative, or any comparable or successor program, the Administrator of the United States Agency for International Development—
shall emphasize programs and projects that improve the food security of infants, young children, school-age children, women and food-insecure households, or that improve the agricultural productivity, incomes, and marketing of the rural poor in Africa;
shall solicit and take into consideration the views and needs of intended beneficiaries and program participants during the selection, planning, implementation, and evaluation phases of projects;
shall favor countries that are implementing reforms of their trade and investment laws and regulations in order to enhance free market development in the food processing and agricultural sectors; and
shall ensure that programs are designed and conducted in cooperation with African and United States organizations and institutions, such as private and voluntary organizations, cooperatives, land-grant and other appropriate universities, and local producer-owned cooperative marketing and buying associations, that have expertise in addressing the needs of the poor, small-scale farmers, entrepreneurs, and rural workers, including women.
Sense of the Congress.—
It is the sense of the Congress that, if there is an increase in funding for sub-Saharan programs, the Administrator of the United States Agency for International Development should proportionately increase resources to the Africa Food Security Initiative, or any comparable or successor program, for fiscal year 2000 and subsequent fiscal years in order to meet the needs of the countries participating in such Initiative.
MICROENTERPRISE ASSISTANCE.
Bilateral Assistance.—
In providing microenterprise assistance for sub-Saharan Africa, the Administrator of the United States Agency for International Development shall, to the extent practicable, use credit and microcredit assistance to improve the capacity and efficiency of agriculture production in sub-Saharan Africa of small-scale farmers and small rural entrepreneurs. In providing assistance, the Administrator should use the applied research and technical assistance capabilities of United States land-grant universities.
Multilateral Assistance.—
In general.—
The Administrator of the United States Agency for International Development shall continue to work with other countries, international organizations (including multilateral development institutions), and entities assisting microenterprises and shall develop a comprehensive and coordinated strategy for providing microenterprise assistance for sub-Saharan Africa.
Additional requirement.—
In carrying out paragraph (1), the Administrator should encourage the World Bank Consultative Group to Assist the Poorest to coordinate the strategy described in such paragraph.
SUPPORT FOR PRODUCER-OWNED COOPERATIVE MARKETING ASSOCIATIONS.
Purposes.—
The purposes of this section are—
to support producer-owned cooperative purchasing and marketing associations in sub-Saharan Africa;
to strengthen the capacity of farmers in sub-Saharan Africa to participate in national and international private markets and to promote rural development in sub-Saharan Africa;
to encourage the efforts of farmers in sub-Saharan Africa to increase their productivity and income through improved access to farm supplies, seasonal credit, technical expertise; and
to support small businesses in sub-Saharan Africa as they grow beyond microenterprises.
Support for Producer-Owned Cooperative Marketing Associations.—
Activities.—
In general.—
The Administrator of the United States Agency for International Development is authorized to utilize relevant foreign assistance programs and initiatives for sub-Saharan Africa to support private producer-owned cooperative marketing associations in sub-Saharan Africa, including rural business associations that are owned and controlled by farmer shareholders.
Additional requirements.—
In carrying out subparagraph (A), the Administrator—
shall take into account small-scale farmers, small rural entrepreneurs, and rural workers and communities; and
shall take into account the local-level perspectives of the rural and urban poor through close consultation with these groups, consistent with section 496(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2293(e)(1)).
Other activities.—
In addition to carrying out paragraph (1), the Administrator is encouraged—
to cooperate with governments of foreign countries, including governments of political subdivisions of such countries, their agricultural research universities, and particularly with United States nongovernmental organizations and United States land-grant universities, that have demonstrated expertise in the development and promotion of successful private producer-owned cooperative marketing associations; and
to facilitate partnerships between United States and African cooperatives and private businesses to enhance the capacity and technical and marketing expertise of business associations in sub-Saharan Africa.
AGRICULTURAL AND RURAL DEVELOPMENT ACTIVITIES OF THE OVERSEAS PRIVATE INVESTMENT CORPORATION.
Purpose.—
The purpose of this section is to encourage the Overseas Private Investment Corporation [now the United States International Development Finance Corporation] to work with United States businesses and other United States entities to invest in rural sub-Saharan Africa, particularly in ways that will develop the capacities of small-scale farmers and small rural entrepreneurs, including women, in sub-Saharan Africa.
Sense of the Congress.—
It is the sense of the Congress that—
the Overseas Private Investment Corporation should exercise its authority under law to undertake an initiative to support private agricultural and rural development in sub-Saharan Africa, including issuing loans, guaranties, and insurance, to support rural development in sub-Saharan Africa, particularly to support intermediary organizations that—
directly serve the needs of small-scale farmers, small rural entrepreneurs, and rural producer-owned cooperative purchasing and marketing associations;
have a clear track-record of support for sound business management practices; and
have demonstrated experience with participatory development methods; and
the Overseas Private Investment Corporation should utilize existing equity funds, loan and insurance funds, to the extent feasible and in accordance with existing contractual obligations, to support agriculture and rural development in sub-Saharan Africa.
AGRICULTURAL RESEARCH AND EXTENSION ACTIVITIES.
Development of Plan.—
The Administrator of the United States Agency for International Development, in consultation with the Secretary of Agriculture and appropriate Department of Agriculture agencies, especially the National Institute of Food and Agriculture, shall develop a comprehensive plan to coordinate and build on the research and extension activities of United States land-grant universities, international agricultural research centers, and national agricultural research and extension centers in sub-Saharan Africa.
Additional Requirements.—
Such plan shall seek to ensure that—
research and extension activities will respond to the needs of small-scale farmers while developing the potential and skills of researchers, extension agents, farmers, and agribusiness persons in sub-Saharan Africa;
sustainable agricultural methods of farming will be considered together with new technologies in increasing agricultural productivity in sub-Saharan Africa; and
research and extension efforts will focus on sustainable agricultural practices and will be adapted to widely varying climates within sub-Saharan Africa.”
Reports to Congress
the nature and extent of consultation to ensure local perspectives, as described in subsections (e)(1) and (f) of section 496 [22 U.S.C. 2293(e)(1), (f)];
the degree of involvement of local people in the implementation of projects having a local focus;
the extent to which there has been expansion of the participation and integration of African women in each of the critical sectors specified in section 496(i);
program assistance provided, including the amounts obligated, the criteria used for assisting reforms, and the provisions made pursuant to section 496(h)(2)(B) to protect vulnerable groups from possible negative consequences of the reforms; and
a description of the assistance for the critical sector priorities specified in section 496(i), by sector, including the amounts obligated.”