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USADF PRESIDENT RODNEY MACALISTER TESTIFIES AT HOUSE INTERNATIONAL RELATIONS SUB- COMMITTEE HEARING ON AFRICA.
President MacAlister cites USADF’s Unique Business Model as Instrumental in Removing Obstacles for African Entrepreneurs.
WASHINGTON - June 15, 2006
The President and CEO of the United States African Development Foundation (USADF), Rodney J. MacAlister, testified last week before the House International Relations Sub-Committee on Africa, Global Human Rights and International Operations at a hearing on “Removing Obstacles for African Entrepreneurs”. The hearing was chaired by Congressman Christopher H. Smith, who was recently appointed Chairman of this new “super” Sub-Committee Also testifying at the hearing were Manuel Rosales, Associate Administrator for International Trade, US Small Business Association, Charles M. (Mike) Williams, Senior Associate, Carmen Group, Inc., and Ms. Shade Bembatoum-Young, Executive Director, African Sustainable Small Enterprise Export Development Foundation.
Members of the Sub-Committee who testified at the hearing included Congressman Donald M. Payne and Congresswoman Diane E. Watson. Both members noted the entrepreneurial spirit evident in most African economies, but drew attention to some of the obstacles that appear to hamper the growth of the private sector in Africa, among them the need for greater protection of intellectual property rights, the promotion of entrepreneurship and the reduction of corruption. For his part, Congressman Payne recognized the important role played by the United States African Development Foundation (USADF) in promoting the growth of African small businesses, and pledged his support for USADF’s work in expanding enterprise growth in Africa.
USADF has been investing in small and medium-sized enterprises (SME) since 1984, and has evolved a business model which is distinct from any other US Government foreign assistance program. In his testimony, President MacAlister described the key elements of USADF’s business model and the reasons why it has been so readily accepted both by businesses and organizations at the grassroots level as well as by host governments.
“USADF provides a comprehensive package of direct investment to African SMEs, agri-businesses and small-holder farming operations. We work directly with our clients, helping them to think commercially, develop profitable business plans, and strengthen their managerial, marketing and technical capabilities. We do not work through NGO’s, consultants or other intermediaries, which ensures that USADF delivers investment and assistance directly to those who will most benefit from it”, stated President MacAlister during his testimony.
UASDF’s approach to investment has far-reaching results: since 1984, USADF investments have helped to create over 110,000 jobs for Africans and have generated US$70million in revenues for African SMEs, US$35million of which are derived from revenue sales. And, as Mr. MacAlister highlighted, the approach has received widespread endorsement from host governments across Africa, often in the form of cash contributions that match, dollar-for-dollar, USADF funds. “Our ability to leverage appropriated funds through strategic partnerships with African governments and transnationals makes USADF one of the United States’ most efficient foreign investment agencies”, stated Mr. MacAlister. In 2006, 33% of USADF’s total funding is derived from sources other than appropriations.
President MacAlister took the opportunity of his testimony to draw attention to USADF’s potential to make an even larger contribution to reducing poverty in Africa. “USADF has inadequate appropriated funding to be able to match all the commitments and expressions of interest we have received from African governments and transnationals, valued at US$22million. At our current level of funding we will leave US$11.5million of private co-funding, which could benefit the poor in Africa, on the table,” he noted. The Board of USADF has made raising increased funds for USADF, from both public and private sources, a foremost priority.
The African Development Foundation (ADF) is a United States Government agency dedicated to expanding access to economic opportunity in Africa. Over the past 20 years, ADF has funded 1,600 projects in support of African entrepreneurs and local African communities. For more information on ADF, its programs and its application guidelines, visit: www.adf.gov. A copy of President Rodney J. MacAlister’s testimony to the House International Relations Sub-Committee on Africa, Global Human Rights and International Operations can be downloaded here.