Aid for Trade Trust Fund

Background and Objectives

The Trust Fund on Aid for Trade (AfT) is being set up in response to Africa‟s need for greater inte-gration into global service and production networks, which requires a comprehensive approach in-volving actions at the firm, country and regional levels. The main objective of the Fund is, therefore, to enhance the Bank Group‟s capacity to strengthen African countries' and private sector's ability to integrate into the regional and global trading systems. Specifically, the Trust Fund‟s resources will be critical to implementing the Bank‟s trade work in three ways.

  • First, the Fund will be utilized to scale up and complement trade-related activities in the sectors identified in the Bank Group Regional Integration Strategy (RIS) as well as the Bank's Medium Term Strategy (2008-2012) as the priority areas for Bank engagement (infrastructure, governance, and private sector development) and other investment support (agriculture).
  • Second, the Trust Fund programs will be a vehicle for helping the Bank to deliver increased aid for trade and respond effectively to the requirements of RMCs and the RECs. In this regard, the Fund will help to improve coordination and effectiveness in implementing AfT interventions both within the Bank (i.e. across the various sector and regional departments) and across different stakeholders such as governments, private sector and other donors.
  • Third, the Fund will provide additional resources to the Regional and Sector Departments to help mainstream trade into country or regional strategies and programs, especially the Country Strategy Papers and the Regional Integration Strategy Papers

Areas of Focus / Sub-Sectors

The interventions of the Fund shall focus on the following areas:

  1. Support to trade facilitation activities, particularly along transport and economic corri-dors;
  2. Support to product and market development, especially to support trade in agricultural commodities and private sector development; and
  3. Strengthening country and regional trade-support systems

The Trust Fund resources will facilitate the mainstreaming of trade into development and the delivery of Aid for Trade into Bank programs. Therefore, within the priority areas outlined above, the AfT TF financed activities will be undertaken in the context of implementing the priority areas identified in the Bank‟s Medium-Term Strategy and will enable leveraging other Bank Group activities.

Particular attention will be paid to gender issues, especially ensuring women‟s equal access to re-sources and capacity building to enhance their participation in trade. As women play a significant role in processing agricultural produce, these interventions will address their participation in the agro-processing initiatives and their access to value addition and linkage to markets. Key gender studies in relevant areas will inform the development of projects.

A pipeline of projects will be developed. However, the activity focus will be achieved through the development of a Business Plan that will ensure greater focus and prioritization of activities to be supported by the TF resources.

Target Beneficiaries

  • Regional Member Countries, especially poorest RMCs
  • Bank organizational units (sector and regional departments, field offices);
  • The African Union, Regional Economic Communities, other relevant regional economic groupings;
  • Networks of government institutions;
  • National or central government institutions involved in trade development;
  • Private sector and Civil Society organizations.

Indicative Timeframe

In view of the resource requirements and capacity gaps in RMCs, implementation is proposed from June 2011.

Proposed Administration and Governance Structure

The Partnerships and Cooperation Unit (ORRU) shall be responsible for all communications regard-ing the implementation of the Bank‟s obligations and for financial administration of the Grant while the Director, NEPAD, Regional Integration and Trade Department (ONRI) shall be responsible for the implementation of the technical aspects of the facility.

The governance and administrative structure is composed of a coordinator, a technical review com-mittee, and an oversight committee.

• Coordinator: The Aid for Trade trust fund will have a dedicated Coordinator located in ONRI.
• Technical Review Committee (TRC): The Bank‟s other Sector organization units and country of-fices will play an important technical role to ensure expert review of cooperation proposals and monitoring of implementation.
• Oversight committee (OC): composed of representatives of the Bank and contributors to the AfT Trust fund.

Proposals will be reviewed by the different governance structures in accordance with the thresholds of the Bank. The Bank reports to participating donors on a regular basis in line with existing procedures and holds annual donor meetings to review progress and performance.

Resources Required

An estimated USD 20 million will be required over a 4 year period, (2011-15)

Technical Department and Task Manager

Moono Mupotola, Division Manager, NEPAD, Regional Integration and Trade Department (ONRI)
Tel: (216) 7110 2156

Partnerships and Cooperation Unit Focal Point

Belinda Chesire, Senior Cooperation Officer
Tel: (216) 7110 3611