Strategic Overview
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Africa’s vibrant private sector has not reached its full potential because it lacks necessary support from the institutions that establish and sustain market-oriented democracies. In 2009, CIPE worked to strengthen institutions and increase private sector participation in the democratic process. In Kenya, CIPE worked with regional business coalitions and the small and micro-enterprise sector to provide policy recommendations to the government. CIPE empowered farmer-based business associations to improve the operating environment for the agricultural sector in Ghana. CIPE worked in Liberia to share the findings of an anti-corruption toolkit with public and private sector stakeholders. These efforts strengthened democratic institutions, encouraged economic growth, and built relationships between the public and private sectors.
Members of the Ye’ewuket Ber Saving and Credit Association in Adama, Ethiopia meet as part of CIPE’s business association training programs.
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KENYA | GUIDING SMALL ENTREPRENEURS THROUGH
THE POLICY PROCESS
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Kenya Prime Minister Raila Odinga confers with Minister for Finance and Deputy Prime Minister Uhuru Kenyatta (top) and gives remarks (bottom) at the Prime Minister’s Roundtable – an opportunity for public-private dialogue facilitated by the Kenya Private Sector Alliance and KGT – in Nairobi.
Over 10 million people work in Kenya’s micro- and small and medium-sized enterprise (MSME) sector, yet they lack a strong role in the policymaking process. Internal fragmentation and external disregard have stifled the sector’s voice in reform. CIPE partner the Kenya Gatsby Trust (KGT), along with its partners the Kenya Institute for Public Policy Research and Analysis and the Kenya Private Sector Alliance, successfully advocated for significant legislative changes in 2009. Through working groups and high-level ministerial meetings, KGT and its partners provided recommendations for a draft bill to remove economic and legal barriers for MSMEs. Through the draft bill process, KGT focused on coalition-building and facilitating dialogue between sectors, government ministries, and Parliament. These efforts have successfully brought the draft bill to the final stages of review before a parliamentary vote. With the newly founded Micro Small Enterprise Federation, micro and small entrepreneurs had – for the first time – an effective representative organization voicing their concerns in the legislative process.
KGT’s efforts to advocate on behalf of the MSME sector resulted in a number of accomplishments:
- An MSME draft bill that includes:
- A provision requiring MSMEs to receive 25 percent of government procurement contracts, amending the current ministry of Finance Public Procurement Act.
- The creation of a tribunal to handle all legal disputes in the MSME sector, significantly reducing the time it takes resolve legal issues.
- The National Council for Micro and Small Enterprises – a government department dedicated to the MSME sector – was established to monitor legislation implementation, provide resources, and promote and recommend policies to the government.
- The Micro Small Enterprise Federation was founded, representing 15 MSME umbrella associations and over 800 small business associations.
- Over 2,700 copies of the draft bill were distributed to small businesses and relevant stakeholders, helping small businesses understand their rights.
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GHANA | LEADING FARMER-BASED BUSINESS REFORM
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Given that food security has increased the need for improved agricultural productivity in Ghana, agricultural business associations can play a crucial role in fostering a supportive business environment for farmers. Ghana’s small farmers constitute a significant portion of the economy, yet their involvement in economic policymaking has been limited. In 2009, CIPE worked with the Private Enterprise Foundation (PEF) to support farmer-based business associations’ advocacy efforts and to gain greater visibility in the public policy arena. With the help of PEF’s expertise, these associations have improved their advocacy skills and strengthened dialogue with local government officials.
PEF’s work with farmer-based associations brought about the following:
- The Banbebu Farmers Association’s advocacy efforts resulted in a new fertilizer depot for their area, reducing travel time to purchase fertilizer – which for some farmers meant a trip of almost six miles on foot. Increased access to fertilizer and decreased time spent on obtaining fertilizer has provided 1,000 farmers with the opportunity to improve their agricultural productivity.
- As a result of the Kpene Suglo Farmers Association’s advocacy efforts, Ghana’s Millennium Development Authority has granted a contract to begin work on the restoration of the road leading to the Kpene Suglo community. Improved transportation increases farmers’ access to goods and markets.
Members of the Dohinayili Tiwumti Women Rice Processors in Tamale, Ghana – an organization in northern Ghana that benefited from PEF’s support – met with CIPE to discuss their action plans and progress after participation in advocacy training workshops.
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LIBERIA | COMBATING CORRUPTION THROUGH
GOOD LOCAL GOVERNANCE
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Liberian Ambassador to the United States Nathaniel Barnes relates the Liberia Local Governance Toolkit to local priorities at CIPE and Global Integrity’s toolkit launch event at the Brookings Institution in Washington, DC.
Twenty years of civil war in Liberia devoured the basic institutions of the country, entrenched corrupt practices, and left behind public mistrust of the government. Following an analysis of the anti-corruption and good governance safeguards at the sub-national level in 2008, the Center for Transparency and Accountability in Liberia (CENTAL) worked throughout 2009 to publicize its findings and recommendations through public awareness and advocacy campaigns. This information – the Liberia Local Governance Toolkit – was shared with citizens and public officials through local and regional student clubs, radio talk shows, participatory town meetings, and CENTAL’s new corruption watch website (www.liberialocalgovernance.org). CENTAL also worked diligently to present the toolkit findings to government officials, providing a fact-based foundation for anti-corruption strategies. The toolkit has armed both ordinary citizens and high-ranking officials with the information necessary to fight for positive policy change and combat corruption in their communities.
CentAL’s work to engage the public and government officials resulted in:
- Liberia President Ellen Johnson-Sirleaf issued Executive Order Number 22 to protect the rights of whistleblowers who expose corrupt actions. President Johnson-Sirleaf’s order was based on a draft whistleblower protection bill developed in a CENTAL working group.
- After CENTAL’s discussion with high-ranking ministers, the Ministry of Internal Affairs held a series of workshops on making county-level public procurement more transparent and improving compliance with the Public Procurement and Concession Act.
- More than 10 radio talk shows hosted national debates about the results of the toolkit – with about 50 Liberian citizens calling in to discuss the issues. during one talk show, the Deputy Minister of Commerce Dr. Frederick Norkeh expressed his support for the toolkit findings. As a result of his endorsement, the Ministry of Commerce has reactivated its website, posting information on acquiring business licenses, a summary of its activities, and telephone hotline numbers.
Thomas Doe Nah of CENTAL shares the findings of the Liberia Local Governance Toolkit with a group of university students from all 16 of Liberia’s counties. The students discussed ways in which the toolkit and its findings could be used in each of their respective communities.
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Partner Spotlight
Kenya | Kenya Association of Manufacturers
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Future of Reform
In 2010, CIPE will continue to empower the private sector to engage in the democratic process through business agendas and business associations. CIPE will target both regional programs that reach out to reformers across Africa and select country-level initiatives where the opportunity for impact is greatest. CIPE will continue to emphasize its programming in Ethiopia, Ghana, Kenya, and Nigeria, and maintain a strong presence in other countries facing democratic challenges. by giving a voice to representative organizations of Africa’s growing informal sector and those of women and youth, CIPE will improve grassroots, sub-national, and regional participation in the promotion of democratic and economic reform.
The Kenya Association of Manufacturers’ (KAM) work with regional business coalitions throughout Kenya has strengthened grassroots political participation. Through the development and launch of Regional Business Agendas (RBAs), 40 business coalitions presented their policy priorities on corruption, government regulation, infrastructure, and security to their local governments.
In 2009, CIPE worked with KAM and its local chapters in Eldoret, Kisumu, Mombasa, and Nakuru to support each chapter in creating an RBA, building a unifying voice of business. Each of the four chapters identified RBA priorities for the private sector in their communities and built a coalition of business associations to lead advocacy initiatives. RBA recommendations ranged from improving transportation infrastructure to streamlining business permit regulations and land taxation. The government in each region was engaged and responsive to the coalitions’ recommendations, which focused on improved transportation and municipal services in key business districts. Many of the proposals have been adopted and now await implementation.
As a representative organization for Kenyan industrialists and manufacturers, KAM has spent several intensive years strengthening its regional branches and organizational structure. KAM has continued to grow the capacity of its local branches to influence economic and social policies for private sector development at the provincial and national level. Through the RBA advocacy process, KAM’s regional chapters have demonstrated how coalition-building can be an effective tool to develop and champion joint business agendas with the government.
Business association leaders discuss policy priorities as part of the regional business agenda established by KAM’s chapter in Mombasa.
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