TERMS OF REFERENCE THE PLAN OF ACTION FOR THE ACCELERATED INDUSTRIAL DEVELOPMENT OF AFRICA (AIDA) IMPLEMENTATION REVIEW

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1 AFRICAN UNION UNION AFRICAINE UNIÃO AFRICANA TERMS OF REFERENCE THE PLAN OF ACTION FOR THE ACCELERATED INDUSTRIAL DEVELOPMENT OF AFRICA (AIDA) IMPLEMENTATION REVIEW Position Type: Consultancy to review the implementation of the AIDA Strategy and the AIDA Action Plan Duration of the contract: 50 working days Requirement for travel and location: Consultants will undertake a desk review from the current location and participate in Expert Working Groups as to be determined 1. Background a. Overview of Industrialization in Africa Africa is the richest continent in the world in terms of natural and mineral resources endowment but the least in terms of industrial development. The continent s economies still relies on the export of raw materials and thus remains poorly included into global markets and vulnerable to exogenous shocks e.g. fall in prices due to low demand, fluctuations in exchange rates etc. In addition, there is no adequate infrastructure to support industrial development (e.g. Energy). Recent studies show that Africa is de-industrialising. And that Institutions aimed at supporting industrial development at national, regional and continental level are under-resourced (technical and financial resources) and poorly coordinated. Until recently there was inadequate attention by policymakers on the importance of Industrial Development as a vehicle for poverty eradication, sustainable development and structural transformation. But these last two years, the discourse of the continent Industrialization has changed. Industrialization is now considered has one of the key driver of the continent sustainable structural transformation. The domestication of continental strategies and programmes such as AIDA requires high levels of political commitment. b. Mandate of the African Union Commission (AUC) The AUC is the continental Platform for policy harmonization and convergence among African Countries. Its Raison d être is Regional Integration. The Mandates of its mission is given by the Heads of States and Governments. The AUC-DTI is not a primary implementer, it is mandated to lead the coordination and harmonization among all Stakeholders for the implementation of continental industrial development. It is responsible for the monitoring and evaluation of the 1 P a g e

2 progress made and to report to the policy organs including the AU Summit. In order to advocate for the implementation of decisions, it has a mandate to implement specific flagship projects as defined under Agenda c. Mandate of the Department of Trade and Industry The Department of Trade and Industry (DTI) is one of the key departments of the African Union Commission. The DTI s mandate is to contribute towards making Africa an integrated trading bloc within the Continent and a significant and competitive trading partner in the global economy. Under the guidance of the Commissioner of Trade and Industry, DTI is spearheading the work with Regional Economic Communities, UNECA, African Development Bank, African Stakeholders and development partners including the European Union. The Department undertakes research to inform policy making and once the policies have been adopted, it is responsible for coordinating the implementation and providing progress reports to the policy organs on the status of implementation. The Department develops as well technical cooperation programmes, mobilise resources and ensure their delivery. It engages in advocacy on the common positions taken by our policy organs and facilitate many dialogues on relevant policies across the continent and with partners outside the continent. Finally, the Department is also responsible for forging win-win partnerships with third parties outside the continent on matters which fall within its mandate. d. Policy Framework of the African Union to promote intra-african trade and industrialization of the member States A number of Treaties and Policies have been adopted by the African Union Heads of Government to promote industrialisation and boost intra-african Trade. i. The Abuja Treaty It is envisaged in the Abuja Treaty that in 2028 Africa will be African Economic Community with free movement of goods, services, capital and people, harmonised policies among others. The Treaty also provides a framework for industrial development through the creation a solid basis for industrialisation and promote collective self-reliance. ii. Action Plan for 2012 Decision of the AU Summit on Boosting Intra African Trade and Fast-tracking the Establishment of a Continental Free Trade Area (BIAT) The Action Plan for Boosting Intra African Trade was endorsed by the Assembly of the African Union 18th Ordinary Session in January 2012 in Addis Ababa, Ethiopia and contains seven clusters: Trade Policy, Trade Facilitation, Productive capacity, Trade related infrastructure, trade finance, trade information and factor market integration. With the purpose to fast tracj te establishment of the Continental Free Trade Area by an indicative date of 2017, the AU Heads of State and Government Launched negotiations and adopted Objectives and Guiding Principles for Negotiations, Roadmap for CFTA negotiations and Terms of Reference for CFTA-Negotiating Forum. AU member States have also embarked on negotiations with 6 concluded meetings of the CFTA-Negotiating Forum as of July 2017 where it very clear that Africa is ready to integrate deeper and faster to meeting the global challenges especially those brought about by the Mega Trade deals like TTP and TTIP among others. iii. AIDA at glance and Key Challenges of Implementation of AIDA 2 P a g e

3 The 10 th Ordinary Summit of the African Union Heads of State and Governments in 2008 adopted the Action Plan for Accelerated Industrial Development of Africa (AIDA). In doing so, the Assembly directed the African Union Commission (AUC) to establish operational priorities, programmes and projects in close co-operation with key stakeholders, to further assist in the implementation of the Plan. Subsequently and in operationalising the decision of the Summit, AUC in partnership with key stakeholders, the RECs and supported by UNIDO developed the Strategy for the implementation of AIDA. The strategy identified key programmes and projects under seven priority clusters. The clusters are as follows: - industrial policy and institutional direction; - upgrading production and trade capacities; - promote infrastructure and energy for industrial development; - industrial and technical skills for Africa s development; - industrial innovation and technology systems and research and development; - financing and resource mobilization; - and sustainable development for responsible industrialization. The strategy also defined an implementation structure in which the Regional Economic Communities (RECs) are identified and fully recognized as implementing partners of the framework. Three key supportive documents for the program implementation were designed. They are related to the Governance Framework, the Resources Mobilization and the Monitoring and Evaluation Framework. e. AIDA Implementation Overview from 2008 to 2016 Since the endorsement of AIDA by the Heads of States and Government, Africa s industrial landscape has shifted. Emerging priorities related to the issue of greening industrialization as well as inclusive and sustainable industrial activities are now considered as critical for achieving long term development, while new international cooperation frameworks have been adopted. Moreover, the first ten-year implementation plan of the Agenda 2063 is now driving the continental agenda while the Inclusive and Sustainable Industrial Development proposed by UNIDO as well as the UN Sustainable Development Goals (SDGs) are the main focuses at the international level. These changes both at the continental and international levels call for the need of a re-adjustment of AIDA implementation framework by adapting the collaboration with development partners to this new context. In this regard, the AUC-DTI successively organized the Midland and Nairobi retreats in February and September 2014 g respectively aiming at improving information flows between AUC and its partners for a sound implementation of AIDA, the Action Plan of the Boosting Intra-African Trade ((BIAT)/ Productive Capacities Pillar, the African Agri-Business and Agro-Industries Development Initiative (3ADI) as well as the African Mining Vision (AMV). Furthermore, the outcomes of the meeting organized by the AUC-DTI with their development partners held on October 2015 reveals that there is a need to redefined the AIDA institutional 3 P a g e

4 framework since the roles of all stakeholders including AUC, RECs, UNIDO, UNECA and AfDB involved in the AIDA implementation process are not well specified. In addition, a new governance structure should be setup for a sound and efficient implementation of AIDA. f.aida Context in The AU Programmatic and Institutional Environment 1. The AU Agenda 2063 in its first aspiration emphasizes on a prosperous Africa based on inclusive growth and Sustainable development; In addition, its Ten Years Implementation Action Plan, specifies the need for transformed economies, and modern agriculture for increased productivity in Africa. 2. The Kagame Reform and its Perspectives: It focuses on some key continental scope. Through that reform, the African Union is currently involved in almost every area related to the continent s development. The Kagame report recommend that the African Union should focus on a fewer number of priority areas including as economic integration.3. The Industry Medium Term Plan and the AU SME Development Program (Strategy, Master Plan and Program Delivery Framework) The Industry MTP allow the Department of Trade and Industry of the African Union Commission to fully fulfil its mandate. Hence, given the short timeframe to cover from now and given the large number of issues to address, the proposed Medium Term Plan identify priority areas to focus on rather than embarking into a one-size fit approach that could weaken the MTP and lead to unsatisfactory results. Regarding the SME Development program: The African Union (AU) has developed a Strategy and a Master Plan to promote entrepreneurship and industrial development on the continent. The AU SME Strategy and Master Plan on SME Promotion and Development are designed to unleash the potential of small and medium-sized enterprises and industries (SME/Is) as well as microenterprises (informal sector) and entrepreneurs to create employment and promote intra-regional and intra-african trade by integrating African SME/Is and MSMEs into regional and global value chains. The Strategy s vision is to develop competitive, diversified and sustainable economies underpinned by dynamic, entrepreneurial and industrial sectors that generate employment, reduce poverty and foster social inclusion. i. The Sustainable Development Goals (SDGs) The aspiration of the continent to promote industrialization as right path for structural transformation of African economies is a central point in the Sustainable Development Goals (SDGs), particularly regarding SDG 9 which aims at building resilient infrastructure, promoting sustainable industrialization and fostering innovation. It is further expected that the implementation of the SDGs will provide a renewed momentum for addressing inequality, both within and among countries, through industrial cooperation and development. This will further speed up industrial globalization, including for industry-related services. In this regard, the role of the private sector is identified as critical since they can generate significant impact on implementing industrial process and promote economic growth and social inclusion. ii. The Third Industrial Decade (IDDA III) 4 P a g e

5 1. In line with the first ten years implementation plan of Agenda 2063, the joint UNIDO-AUC-UNECA-OSAA High Level Forum on Africa s industrialization within the 2030 Agenda held in September 2015 in New York, signed a joint communique aiming at supporting Member States to propose a Third Industrial Development Decade of Africa (IDDA III ) to the United Nation General Assembly. In this regard, a draft resolution on IDDA III was endorsed by the first STC in July The resolution invites, UNIDO, as the United Nations specialized agency for industrialization, in close collaboration with the African Union, to (i) scale up its technical assistance to African countries in order to promote inclusive and sustainable industrial development for the successful implementation of the Third Industrial Development Decade for Africa; (ii) develop, operationalize and lead the implementation of the programme for IDDA III, taking into account various development frameworks focusing on Africa; (iii) foster partnerships, as appropriate, with other relevant UN entities; and (iv) develop joint initiatives in various areas including technology transfer, productive diversification, agribusiness value chain development, trade capacity building, renewable energy and energy efficiency, industrial policy, special economic zones and industrial parks. 2. Aim, Objectives and Scope of the Review The purpose of this review is to take stock of the implementation of the programme to date, assess progress achieved so far and highlight the strengths and success stories as well weakness of the processes and instruments put in place for the achievements. It is expected that the review will indicate the way forward for the new format of the program and actions that need to be undertaken thereof. Specific objectives of the review will include: - Assessing the institutional arrangement, partnerships, risk management, M&E and project coordination; - Assessing the relevance of the project in relation to the existing needs today at continental, regional and country levels; - And identifying lessons learned on the strategic approach (strategic processed and mechanisms chosen to achieve the programs objectives). In the long run, the review shall provide useful and relevant information to the ongoing current frameworks within the Industry Division and partners institutions; explore why the interventions implemented by the project succeeded or not and provide guidance for improving future interventions. It shall also serve as instrument for the overall accountability by assessing whether the program was fulfilled with adequate resources and if these resources were used in a responsible way. In summary, the issues to be answered through this review will include, but not limited to the following: - Effectiveness: o What outputs have been achieved? To what extent do they contribute to the objectives? (eg: Status of the implementation at continental, regional and country levels) 5 P a g e

6 o How effective are the structures in delivering the desired outputs (eg: institutional and governance framework, monitoring and evaluation)? o Do the partner organizers organizations work together effectively? Is the partnership structure effective in achieving the desired outputs? (coordination and reporting mechanism) - Efficiency: o Are the available technical and financial resources adequate to fulfil the program plans? (eg: resources available) o Are the capacities of the partners adequate (eg: resources mobilization)? o Is there an effective process, built into the management structure for selfmonitoring and assessment, reporting and reflection? - Relevance o Establish whether the implementation strategy identified was enough relevant and if it can still support to address the continent industrialization needs, issues and challenges. - Sustainability o Are all partners and stakeholders involved and what is their assessment of the relevance of the project? - Impact o Have there been any unintended positive or negative impacts arising from particular outcomes? 3. Methodology a. Desk review The Consultant shall review and obtain necessary information from the following documents: AIDA Strategy AIDA Action Plan AIDA Steering Committee Framework AIDA Monitoring and Evaluation Plan AIDA Resources Mobilization Plan AIDA Implementation Coordination Unit Project Document AIDA Bankable Project ToRs and Framework Industry Medium Term Plan AU SME Development Program (Strategy, Master Plan and Program Delivery Framework) Agenda 2063 Ten Years Action Plan and AU Strategic Plan Boosting Intra-African Trade (BIAT) Africa Mining Vision (AMV) PMPA CFTA Regional Economic Communities Framework (TBD-From Johannesburg 2017 Meeting) Industry Division Strategic Stakeholders Retreat (from 1 st edition to 6 th edition) Conference of African Ministers of Industry (Matrix of recommendations) 6 P a g e

7 Report of the 1 st Specialized Technical Committees STC on Trade, Industry and Mining b. Electronic interviews through skype conference or written comments/ surveys The Consultant shall have call conference/ organize online survey with the following Partners and Stakeholders: - AU Department of Trade and Industry (Commissioner, Director and Heads of Division and Head of CFTA); - Industry Experts from Regional Economic Communities (RECs): CEN-SAD, COMESA, EAC, ECCAS, ECOWAS, IGAD, SADC and UMA; - Private Sector Experts or Business Councils of Regional Economic Communities (RECs): CEN-SAD, COMESA, EAC, ECCAS, ECOWAS, IGAD, SADC and UMA; - 1 to 2 pages Online survey with the 55 Member States (light questionnaires related to knowledge about AIDA, domestication within the national policy frameworks, recommendations/ relevance of AIDA, List of participants to be provided by AUC); - CAADP Program Management Team; - PIDA Program Management Team; - NEPAD Heads of Program and Strategic Planning; - and UN Agencies and International Institutions (UNIDO, UNECA, UNDP, ITC, UNCTAD, AfDB). c. Virtual collaboration with AIDA Review Task Force and the RECs An AIDA Implementation Review Task Force composed of four Experts will be continuously available online for guidance and clarification. d. Validation Meeting with the AIDA Implementation Review Task Force, the RECs and the five countries Members of the STC on Trade, Industry and Mining (Kenya, Egypt, Botswana, Niger, Chad) The final validation meeting is planned in the last week of September The venue will be specified on due time. 4. Deliverables and Report Format The African Union/ Department of Trade and Industry intends to submit the results of the review to the 2 nd ministerial STC on Trade, Industry and Mining and the 30 th AU Heads of States and Government Assembly respectively scheduled for October 2017 and January In this regards, the consultant should provide the following reports suitable to be presented to the above honourable audiences: - An Executive Summary less than 6 pages (including cover pages); - A full detailed report no more than 30 pages (excluding annexes) which include (but not limited): o An assessment of the programme performance; o An assessment of the programme institutional achievements, mostly at RECs and Country levels; o Identification of the main lessons learnt; o Recommendations for the way forward including the revised versions of the Institutional arrangements/ steering committees; Monitoring and Evaluation Plan and the resources mobilization Plan; 7 P a g e

8 - And a power point presentation of the main findings, lessons learnt and recommendations. 5. Timing and Schedule Date Steps 3 rd week August Contract signature 4 th week August & 1 st week Compilation of documents and Inception report Drafting September 2 nd week September Parallel steps: Consideration and adoption of the Inception report by AUC and Desk review by the Consultant 3 rd- 4 th weeks September Online Consultation and Report Drafting 1 st week October Consideration of the Draft Report by AUC 2 nd week October Validation Meeting 3 rd week October Finalization and Submission of the final report to AUC 4 th week October Translation of the report 6. Copyright All materials/ documents arising out of this consultancy work shall remain the property of the African Union Commission. 7. Consultant qualifications The Consultant should have the following minimum qualifications: i. Master Degree in Economics, Business Administration or related area. A PhD is an asset; ii. 6 years experience in the area of economic and/or industrial development in multilateral, international donors/agencies and/or governmental organizations; iii. 5 years professional experience in programs/ projects evaluation and Review and Producing high quality analytical reports and policy papers; iv. 5 years professional experience in programs/ projects designing and implementation; v. Be fluent in written English. A good command of French, Arabic or Portuguese is an asset; vi. Familiarity with the African Union and Regional Economic Communities trade and industrial development policies is an asset. 8 P a g e

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