Africa needs manufacturing and agricultural investments anchored in export markets, in order to shift towards higher productivity and more inclusive growth. China’s large and growing importance as a trading partner and investor in Africa presents a major opportunity to help address these needs, but significant barriers exist which constrain both the extent of investment in manufacturing and agro-processing, and potentially the local poverty impacts of such investments. International Economics, through its CEO, assisted ITC in the design phase of the project, which aimed at enhancing trade and investment between China and Africa.
Partnership for Investment and Growth in Africa-PIGA
The Project at A Glance
What We Found
Capturing some of the global manufacturing export markets could transform the African continent. Investment from China has a major impact on poverty reduction and jobs for the African-4 countries (Ethiopia, Mozambique and Zambia). China emerged as the largest investor in majority of these countries and is increasingly emphasizing the wider development dimension which it is seeking to achieve through investments.
Our CEO helped ITC to formulate a full-fledged project document for the “China Africa Development Fund (CADFund)-DFID-ITC Partnership for Investment-led Growth in Africa (PIGA)”. PIGA aims to enhance trade and investment between China and Africa, through addressing the bottleneck issues for bilateral trade, such as lack of market information, limited supply side capacities, impediments to trade and investment and lack of access to finance and investment capital for African SMEs.
Our Strategy and Impact
Chinese investment has the potential to help improve the productive and export capacity of developing countries. Based on the findings of needs and priorities assessment of participating countries for technical assistance under the main phase of PIGA, we identified the challenges and problems faced by the countries and finally developed a comprehensive project logical framework and the detailed project document.
The designed Project can help harness market forces into sustainable development outcomes for the four African countries by tackling institutional bottlenecks, policy constraints and by developing linkages between FDI and the local economy. The team also wrote specific parts of the Business Case, as required by the DFID internal approval and validation process.
Our Core Solutions
As businesses seek to expand operations into new markets, the need to explore global supply chains and understand the international regulatory framework becomes crucial. At International Economics Consulting, we build tailor-made strategies for both import and export-oriented business solutions.