MCC Overview MCC & Trade Capacity Building Opportunities

2. MCC Overview MCC & Trade Capacity Building Opportunities

3. MCC is an innovative foreign assistance institution designed to “reduce poverty through sustainable economic growth” MCC is managed by a Chief Executive Officer and a public-private Board of Directors comprised of: • MCC CEO • Secretary of State • Secretary of the Treasury • U.S. Trade Representative • USAID Administrator • Individuals from the private sector • Two forms of grant assistance with original commitments totaling $7.7 Billion: • Compact Programs: US$7.2 billion • Threshold Programs: US$470 million

4. MCC Core Principles • Sound governance, economic and social policies: • Support countries who can use assistance effectively • Spur private investment and increased trade, the real engines of growth • Country ownership: • Increases responsibility • Builds capacity • Yields better results • Clear objectives and measurement of results: • Increase accountability • Contribute to development success

5. Policies Matter – Annual Competition Country Scorecards Malawi Compact Eligible FY 2010 Kenya Threshold Eligible * Compact-Eligible Countries are hereafter referred to as “Compact Countries”

6. Where MCC Has Operated Since 2004

7. MCC’s Newly-Eligible Partner Countries Dec 2009 Dec 2008 Countries currently developing Compacts include Philippines, Jordan, Malawi, Indonesia, Zambia & Cape Verde

8. MCC Overview MCC & Trade Capacity Building Opportunities

9. Realizing AGOA’s Potential with Agricultural Infrastructure “Infrastructure conditions in Sub-Saharan Africa have a significant effect on the ability of firms to produce and export goods and services competitively and take advantage of AGOA preferences.”

10. What MCC Funds: $7.2 Billion of Compacts

11. Aid for Trade in MCC Compacts

12. $5.1 Billion in Compacts for African countries,Including Over $2.3 Billion for Agricultural Infrastructure CAPACITY BUILDING

13. In Fiscal Year 2008, MCC constituted 70% of total US Government “Aid for Trade”.

14. The Lesotho Compact • Aimed at improving the water supply for garment and textile operations and future industrial projects. • Domestic users in urban and rural areas will benefit from water system upgrades and expansion. • Enhance rural livelihoods through improved watershed management.

15. The Benin Compact • Inefficient port operations and aging infrastructure result in delays and high costs. • MCC’s $169 million Access to Markets project aims to improve port performance and security, expand capacity, reduce costs. • Expansion of port will reduce delays and increase trade.

16. The Mali Compact • Landlocked country dependent on air transport • $181 million Bamako-Senou Airport Improvement project will increase efficiency in handling freight and passenger traffic. • Institution building to ensure effective management and operation.

17. The Tanzania Compact • $373 million transport project will connect communities with markets, schools, and the seaport of Tanga with the Kenyan border. • Upgrading of Mafia Island airport to encourage tourism.

18. The Zambia Compact • Newly eligible; proposed energy, roads, tourism and vocational training • Threshold program upgraded customs facilities and streamlined border control, halving amount of days required to export and import.

19. MCC Overview MCC & Trade Opportunities

20. Compact Countries: Magnets for Private Investment MCC Compact Countries Average Developing Country Source: UNCTAD, 2008 Since 2002, MCC Compact countries have exhibited more or more consistent FDI stock growth than the average developing country.

21. Elements of MCC’s private sector strategy Improve developmental outcomes and sustainability through innovative private sector partnerships Goal Enhance sustainability of Compact investments Generate tangible economic growth results Mobilize complementary resources Create private sector-led capacity Objectives Investment Opportunities and Market Linkages Strategic Outreach to Partners and Bidders Private Sector Participation within Compacts Enabling Policy Environment Reforms Stream • PPPs • Vocational training • Investment fund • Ghana pineapples • Integrated firm/partner analysis • Conferences • USG • Multipliers • Malawi energy • Moldova water Examples

22. MCC Agribusiness Initiatives • Local & • International • Investors • Private Investment along • Entire Value Chain • Branding and Marketing • Distribution • Agribusiness Services • Cold storage and shipment • Joint venture production • Equipment • IT services • Agricultural Inputs • Domestic • Producers & • Processors Investment Opportunities

23. Example: Sourcing Opportunity in GhanaPineapples, Bananas/Plantains, and Nuts/Coconuts Your Investment Wholesalers Agricultural Producers Processors/ Packagers Wholesalers/Distributors Importers Exporters Retailers MCC’s Investments • Increase Irrigated Land; Productivity: $28M Irrigation Activity • Increase Production & Value of High-Value Crops: $66M Commercial Training Activity • Improved Market Quality/Competitiveness of Crops: $20M Post-Harvest Activity • Reduce Transport Cost: $143M Transportation Development • Financed Agribusiness (e.g. FBO plans): $24M Financial Services Activity

24. Example: Sourcing Opportunity in MoroccoOlives/olive oil, dates, figs, walnuts, almonds & pistachios Your Investment Wholesalers Agricultural Producers Processors/ Packagers Wholesalers/Distributors Importers Exporters Retailers MCC’s Investments • Increased Irrigation Efficiency; Productivity: $24 M Date Irrigation • Increase Production & Value of High-Value Tree Fruit:: $184 M Tree Production and Intensification • Improved Port Infrastructure/Capacity: $83 M Port Infrastructure • Improved Agribiz, Quality Certification & Market Research: $26 M Fruit Tree Services • Access to Agricultural Financing: $56 M Finance