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# Case Studies in Success: West Africa Trade and Investment Hub and EMPOWER Private Sector

September 2023The Department of State conducted a case study analysis of successful foreign assistance programs between 2014 and 2019. The team identified the West Africa Trade and Investment Hub and EMPOWER Private Sector in Kosovo as particularly successful projects. The report outlines factors contributing to the programs’ success.

## Background

In Fiscal Year 2022, approximately 11 billion USD in foreign assistance (FA) programs was used to increase economic growth. This case study determined what types of U.S. FA have had a sustainable impact in a country’s economic development. The report examines two projects: West Africa Trade and Investment Hub (WATIH) and EMPOWER Private Sector (EMPOWER). WATIH, spanning from 2014 to 2018, is a flagship project of the United States Agency for International Development (USAID), covering all countries under the USAID West Africa Mission. EMPOWER, which operated from 2014 to 2020, was a USAID project dedicated to fostering job creation and economic growth in Kosovo.

## Findings

                  - WATIH and EMPOWER were successful in achieving goals in exports, sales, job creation, and other outcomes of interest.
                  - Participant countries benefited from preferential trade agreements that offered access to potentially lucrative export markets.
                  - The case study highlights the importance of active trade associations as project partners, which can facilitate private sector buy-in and local project ownership.

## Recommendations

Use export growth strategies that take advantage of preferential trade agreements and regional trading blocs.

To increase success of programs, support regional trading blocs to harmonize export rules and regulations.

Empower trade associations to facilitate stakeholder buy-in while ensuring they can be sustained without foreign funding.

Take advantage of diaspora communities in encouraging new business opportunities.

Encourage beneficiary firms to participate in international trade shows to establish new business linkages.

## Evaluation Questions

                      - What foreign assistance projects between 2014 and 2019 were particularly successful?
                      - What outcome indicators demonstrate the success of these projects relative to others?
                      - What were the economic contexts under which these programs were implemented?
                      - What does a comparison between the two projects suggest about the factors that contribute to the success of a foreign assistance project?

## Approach, Methods, & Data

**Methodology:**Case studies can be used to identify testable hypotheses, trace the evolution of an intervention, and – among other possibilities – explore notable cases. The case study focused on especially impactful examples of successful development assistance projects or programs.

**Data Collection:** The analysis used 913 programs/projects from the FACTS Evaluation Registry that fit the study parameters. A multistage filtering process was then employed to reduce the sample to 43 records about growth-related programs or projects. In reviewing these 43 records, a total of 15 unique outcome types across all records on the list were identified. Among the 15 unique outcome types, three were prioritized: increases in business revenue; increases in investment; and new jobs created.

These outcomes were prioritized because of their proximate impact on economic growth. Both WATIH and EMPOWER stood out as particularly successful on these outcomes. In addition to reviewing the midterm evaluations, final reports, and other supporting documents for WATIH and EMPOWER, the team conducted interviews with the Contract Officer’s Representatives (CORs) to gain insights into the key lessons learned from each program.

Countries in the West Africa region and Kosovo all presented economic conditions that were not obviously conducive to project success. WATIH countries experienced a slight decline in exports (as a share of Gross Domestic Product) over the life of the project, giving greater weight to the export successes the project achieved. In contrast, for EMPOWER, Kosovo experienced a 3.73% increase in exports as a share of GDP every year. The new business contributions of EMPOWER, by themselves, constituted 0.73% of Kosovo’s total GDP from 2014-2019.

## Detailed Findings

By project completion in 2018, WATIH met or exceeded most of the target indicators for exports, sales, investment, job creation, policy reforms, and more self-sufficient businesses. Programming created a total of $389.2 million in new sales, $236.8 million USD in new exports, and 20,475 new jobs – 124 percent of the initial target. 

EMPOWER also exceeded several of its original targets. EMPOWER’s co-financing strategy helped beneficiary firms unlock loans worth five times what they first received as grants. Because of EMPOWER, 4,367 Kosovans received training and 5,109 secured new jobs. 

In comparing WATIH and EMPOWER, a few key similarities can be noted. Both projects benefited from recipient countries’ access to potentially lucrative export markets. The renewal of the African Growth and Opportunity Act part way through WATIH ensured continued preferential access to the U.S. market. Furthermore, several WATIH countries’ membership in the Economic Community of West African States contributed to the project’s accomplishments in the regional value chains. 

EMPOWER saw significant gains in trade indicators as well, which were in part facilitated by Kosovo’s potential membership in the European Union (E.U.). The process of E.U. integration was accelerated by the 2015 signing of a Stabilization and Association Agreement, which allowed Kosovo free trade with the E.U. and provided the country with resources to incorporate E.U. standards into its economic and export regulations. 

The comparison also highlights the importance of organized and active trade associations as project partners. Both programs worked closely with various trade associations to advocate for policy reforms and improve export competitiveness. These partnerships facilitated private sector buy-in and local project ownership so that project goals aligned with the needs of intended beneficiaries. 

A key challenge going forward will be to ensure that the gains made in trade association organization and advocacy can be sustained once foreign support has ended.

Ribbon cutting ceremony of fourth edition of Green Festival October 30, 2019.

## EMPOWER and the Kosovan Diaspora 

Access to additional markets in Europe also helped facilitate a partnership between EMPOWER and the Kosovo diaspora. Concretely, the Albanian Diaspora Business Network (ADBN) co-organized three conventions to connect businesses in Kosovo with ADBN’s European Chapters across the diaspora to explore new export opportunities. These three conventions alone resulted in 1.3 million USD in new sales contracts.

The U.S.-Ghana joint venture Dignity/DTRT (“Do the Right Thing”) expanded its sales in the U.S. market, launched an additional product line, and hired and trained 180 new staff thanks to WATIH assistance. One of the USAID CORs for WATIH noted that the growth of Dignity/DTRT has singlehandedly changed the landscape of the apparel sector in West Africa.

## Impact by the Numbers

                  - 136 million USD in exports and 174 million USD in total sales across WATIH countries.
                  - Created 20,475 new jobs across 4 global value chains and 2 West African regional value chains.
                  - More than 100 million USD in aggregate exports and 215 million USD increase in aggregate sales for 613 EMPOWER firms.
                  - Created 5,109 new jobs for Kosovans, of which 1,870 were jobs for women and 1,532 were jobs for youth.

## Learning Summary

This case study facilitated interagency collaboration. The research products that resulted from this work benefited from the shared perspective and combined efforts of representatives from both the Department of State and USAID.

Dissemination of the findings will help raise awareness of US government efforts to support economic growth-related activities. In addition to providing successful examples of where growth-related programming has had meaningful impact, it also warns of potential pitfalls associated with growth-related development. For example, there is no “one-size-fits-all” approach to programming, and an intervention that succeeded in one context may not achieve the same results in another. As such, activities should be adapted to reflect the unique circumstances and conditions facing each country.

As part of this case study, the Department of State and USAID staff developed a technique to review hundreds of foreign assistance project and program reports. The technique is guided by three principles: transparency, efficiency, and intentionality. The technique can be applied again in the future to identify relevant projects that warrant closer examination.

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