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USAID/South Africa 

Operational Plan 

FY 2006 

June 2, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: South Africa is a country in which statistics are often 

misleading. The Republic of South Africa is a middle-income, emerging market with an abundant supply 

of natural resources; well-developed financial, legal, communications, energy, and transport sectors; a 

stock exchange that ranks among the 20 largest in the world; and a modern infrastructure supporting an 

efficient distribution of goods to major urban centers throughout the region. Yet despite 28 successive 

quarters of economic growth, unemployment remains high, estimated at 26.5% in 2005, and deep 

economic and social fissures that were engendered in the apartheid era persist. In South Africa 'two 

economies' co-exist in one country. The ‘first economy’, which is comparable to Hungary or Mexico, is 

advanced, sophisticated, based on skilled labor, and becoming more globally competitive. The ‘second 

economy’, which is comparable to Cote d’Ivoire or Cameroon, is mainly informal, marginalized, unskilled 

and populated by the unemployed and those who lack the qualifications to work in the formal sector. This 

large gap in skills and opportunities is startlingly evident in income distribution. Close to 42% of black 

South Africans live at or below the poverty line in comparison to only 3% of white South Africans, and 

income per capita for white South Africans is nearly six times that of black South Africans. South Africa is 

a democratic transition success with three peaceful national elections and two municipal elections in its 

11 year history. However, deep-seated socio-economic inequity remains a serious source of concern. 

Challenges: High unemployment, continuing crime, the incessant spread of HIV and AIDS and limited 

capacity of the government to deliver basic services are the most pressing challenges facing South Africa 

today. South Africa is addressing the unemployment challenges through targeted efforts to promote skills 

improvement and private sector development and by enabling the informal sector to become part of the 

mainstream economy. Despite clear government commitment to addressing social change, large 

disparities remain between population groups in access and redistribution of productive land, and quality 

and access and affordability of services. Ten million South Africans still live in slums, and 18% of black 

African households have access to piped water in their homes in comparison to 88% of white households. 

USAID programs are helping South Africa to address service delivery challenges through targeted 

capacity building programs to assist low-performing municipalities, the entities responsible for delivering 

services. Currently, HIV prevalence in South Africa is 29.5% in pregnant women with over six million 

individuals infected, the highest number of infections in the world. In addition, South Africa is ranked 

eighth in the world with regard to tuberculosis burden with 227,320 cases reported in 2003. 

Highlights of FY 2005 Performance: 

Education: USAID’s Education program responded to the HIV/AIDS pandemic and the poor performance 

of South African students in math and science by training 930 master teachers in HIV/AIDS issues and 

literacy, numeracy, math and science content areas. These teachers then trained a further 4,483 

teachers during school-based workshops. To address the dire shortage of math and science teachers 

and broaden South African students' knowledge base in these areas, USAID is training 299 pre-service 

trainees, who are already employed, to become fully qualified teachers in those subject areas. USAID 

continued to support 102 magnet schools dedicated to math, science and technology in which Grade 12 

student success rates have increased in math by 36% and in physical science by 38% in one year. An 

Africa Education Initiative-funded activity created a new primary schools educational TV and web-based 

channel focusing on the dissemination of mathematics, science and technology video, print and multimedia content for students and teachers in grades K-6, developed to improve teaching and student 

performance. Other Africa Education Initiative activities also demonstrated strong achievement: 1) 

90,000 student workbooks and 1,000 accompanying teacher guides in South Africa’s 11 national 

languages are now in the printing stage; and 2) the Ambassador’s Girls’ Scholarship Program is 

supporting 1,295 of the most vulnerable girls in their studies. USAID sponsored the internationally 

awarded children's television and radio program, Takalani Sesame’s new HIV/AIDS initiative, “Talk to 

Me”. The educators and parents who participate in the program are twice as likely to talk with their 

children about HIV compared to those who did not view the program. USAID’s tertiary education program 

continued to provide technical assistance and training to newly-merged higher education institutions to 

integrate disparate systems and build management capacity. The program assisted historically 

disadvantaged universities to revise their curricula reaching the two-year cumulative target of eight course 

offerings which now meet the new South African academic standards. 

Health and HIV/AIDS: The South African Government is responding to the increasing prevalence of HIV 
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with the roll out of AIDS medication in 192 health sites, and as of August 2005, over 78,000 patients were 

receiving antiretroviral therapy through the government’s program. The State Department’s Office of the 

Global AIDS Coordinator’s report discusses HIV/AIDS programs at (<http://www.state.gov/s/gac>). As 

HIV prevalence has increased, the USAID program has modified its focus, shifting from a primary health 

care-focused program to one concentrating on HIV/AIDS interventions. The primary health care program 

emphasizes health planning and management, quality of care, logistics, supervision, and human capacity 

development. USAID’s system strengthening approach also contributed to improved health information, 

pharmaceutical and drug management, and a standardized supervision system in five provinces. As a 

result of USAID assistance, 1,515 health staff was trained in the delivery and management of key health 

services. In addition, USAID supported mobile health teams to provide services to over 35,000 clients in 

rural underserved communities. In FY 2005 USAID launched a new TB initiative to strengthen diagnosis 

and treatment and initiated activities in six high-burden districts and 160 facilities. Since 55% of TB 

patients are co-infected with HIV, USAID also supported the development of guidelines on effective 

integration of TB and HIV/AIDS services, and 453 health care providers were trained in integrated TB/HIV 

management. 

Economic Capacity Building: Although South Africa’s investment rates have increased from 15% in 2002 

to 17.7% of gross domestic product in 2005 and inflation is at 4.0%, economic growth remains too slow to 

reduce high unemployment and poverty. USAID’s Economic Capacity programs focus on building 

indigenous expertise and analyzing the causes of poverty and unemployment. The number of university 

students studying in economics programs established with technical assistance by USAID exceeded its 

target by 600, boding well for future sustainability. By the end of FY 2005, many of the 141 economists 

and 101 parliamentarians trained in economics and budgeting skills under USAID programs were 

employed in senior decision-making positions in government and the private sector. Some of the 80 

USAID-funded analyses (exceeding the target of 70 analyses) concluded this year are leading to 

significant policy changes. USAID-funded technical assistance was particularly important in opening 

South African banking to increased domestic and foreign competition and encouraging the development 

of smaller banks. Other achievements include a USAID-assisted deposit insurance scheme; improving 

access to credit for smaller businesses that previously were excluded from banking services; improving 

the tax system and government’s ability to forecast tax collections; and promoting private provision of 

infrastructure and private delivery of government services. 

Employment Generation: South Africa’s high unemployment rate of 26.5% (over 32% for black South 

Africans) is a serious threat to the country’s young democracy. Since small, medium, and 

microenterprises employ approximately 66.3% of the workforce and generate 35% of South Africa’s gross 

domestic product, USAID’s Employment Generation program is helping to create sustainable employment 

by fostering the growth of black-owned small businesses in the agricultural, manufacturing and services 

sectors. In FY 2005 the 2,026 firms supported by USAID in the manufacturing, services and agriculture 

sectors have generated 4,121 full-time equivalent jobs (against a target of 3,290) and completed 11,095 

sales transactions valued at $268.8 million (against a target of $203.3 million). Small businesses assisted 

by USAID’s trade activities, including support to take advantage of opportunities provided by the Africa 

Growth and Opportunity Act, have shown considerable success, concluding $35.9 million in export sales 

and, despite continued strengthening of the South African Rand against the U.S. dollar, exceeded overall 

export targets of $26 million by 38.5%. USAID continued support to biotechnology research for domestic 

propagation of indigenous wild plants (used for medicinal purposes) and reliable diagnostic tests for 

illness affecting pork production. 

Housing and Municipal Services: Despite national statistics indicating water provision to 81% of the 

population and 80% of households now connected to the national electricity grid, frequent riots in 

townships and slums reflect the growing dissatisfaction with slow delivery of basic services to poor black 

South African households. USAID's Housing and Municipal Services program is addressing this 

challenge and in FY 2005 supported activities which will reach 827,701 people with basic services with a 

capital investment value of over $40 million, exceeding program targets. The program finalized seven 

public-private partnerships which will deliver services to 101,500 households. As a result of USAIDfunded policy advisory services, South Africa’s first Climate Change Response Strategy was completed in 

early 2005. USAID’s contribution to the Presidential Clean Energy Initiative resulted in an estimated 
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228,000 people benefiting from improved energy services and realized energy savings valued at over 

$4.4 million. Contributing to the Water for the Poor Initiative, a USAID alliance included assistance to 

three municipalities that distributed water to 96,500 households and leveraged $21.7 million to reduce 

water losses. USAID’s program trained 594 management staff from 147 municipalities on effective 

budgetary planning and alternative service delivery options and already these municipalities have 

improved community consultation and strategic planning. USAID continued to assist the South African 

Cities Network, representing the nine largest cities in South Africa to update their information on the 

implications of HIV/AIDS on urban poverty. As a result 132 municipalities began implementing AIDS 

strategies. 

Democracy and Governance: Although overall crime rates in South Africa have leveled off, South Africa 

has the second highest murder rate in the world, and the number of rapes reported to police over the past 

year increased by 4.5%. After helping to increase court management efficiencies and reduce case 

backlogs by 11% over the past five years, the USAID program is now building the skills of prosecutors 

enabling them to take more cases to trial. In FY 2005, USAID’s program trained 224 prosecutors in 

corruption trial skills, 141 in the use of plea bargaining and 51 others in forensic auditing which is 

anticipated to result in more convictions. In addition to high crime rates, South Africa is experiencing 

frequent protests over poor service delivery and widespread corruption in municipalities. USAID’s 

program is responding by building local government capacity, and in FY 2005 assisted 23 key 

municipalities develop strategic action plans to improve planning skills and operating systems and to 

increase revenue streams. USAID’s anti-corruption program targeted 17 municipalities to draft policies to 

ensure transparency and accountability in the allocation of houses, the awarding of contracts, and the 

hiring of personnel. Working to ensure that citizens have a voice in democracy, USAID programs trained 

leaders of 45 community-based organizations, who in turn trained another 140 community groups, in 

basic organizational/fund-raising and problem-solving skills to improve their ability to work with their local 

councils. These local groups raised approximately $1,000,000 in cash and in-kind support. Furthermore, 

local councils approved funding for 54% of proposals submitted by community groups and initiated 45 

joint projects. 

Regional HIV/AIDS: USAID’s Regional HIV/AIDS Program works in 10 countries, nine of which 

participate in the President’s Emergency Plan for AIDS Relief. The program also implements direct 

service delivery activities in Swaziland and Lesotho, which have among the highest HIV prevalence rates 

in the world (42.6% and 28.9% respectively among antenatal women). In FY 2005 USAID supported 

three new voluntary counseling and testing sites in Lesotho to avert over 10,800 HIV/AIDS cases in that 

country and a new prevention of mother to child transmission program in Swaziland which provided 

services to 9,918 antenatal women, a more than 300% increase over 2004. Regional partners and local 

nongovernmental organizations are benefiting from the research, the cross-regional exchanges and the 

cross-border prevention programs to improve skills in HIV/AIDS behavior change communication and 

monitoring and evaluation. 

Presidential and USAID Initiatives: As a focus country under the President’s Emergency Plan for AIDS 

Relief, USAID received $73 million and reached 75,898 pregnant women with HIV/AIDS treatment. With 

Africa Education Initiative Funds, USAID is managing distance learning and HIV/AIDS activities in South 

Africa and other African countries. The Ambassador’s Girls’ Scholarship provided funds for USAID to 

assist 1,295 girls in their studies. With Africa Bureau Anti-Corruption Initiative funds USAID helped 17 

municipalities to draft transparent policies to reduce corruption. In FY 2005 small businesses assisted by 

USAID’s Trade Initiative concluded $35.4 million in export sales. Contributing to the Initiative to End 

Hunger in Africa, USAID concluded research on the domestic propagation of wild plants for medicinal and 

commercial use. Through the Global Climate Change Initiative USAID helped South Africa complete its 

first Climate Change Response Strategy, and the Presidential Clean Energy Initiative resulted in energy 

savings of $4.4 million. 

Global Development Alliance and Partnerships: USAID is supporting five Global Development Alliances 

(GDA) and two public-private partnerships. Together these efforts are building relationships with new and 

nontraditional partners and leveraging over $81 million from an estimated $13.8 million in USAID funding. 

Three existing alliances are supporting the administration of justice, teacher training, and protection of 
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intellectual property rights. USAID/South Africa also established two exciting new GDAs in FY 2005. The 

U.S. partner in a new alliance in education targeting HIV/AIDS-affected children in South Africa, Namibia, 

and Ethiopia will provide psycho-social support and leverage nearly $3 million in return for USAID’s 

$750,000 to construct classrooms. Another new partnership will encourage civic leadership and national 

service among South Africans while developing their job market skills. In addition, USAID/South Africa 

continued to fund two public-private partnerships with a South African entity which, while not meeting a 

strict definition of GDAs, leveraged over $6.2 million. These partnerships were with a South African 

organization that uses satellite broadcasts with additional print and internet material to expand education 

information. One of these programs focuses on HIV/AIDS and related issues and targets healthcare 

workers, patients and the general public, while the other partnership is delivering high quality materials in 

basic education. USAID also assisted key South African entities to implement partnerships and alliances 

such as the upcoming $3 billion rapid rail train between Pretoria and Johannesburg. Another USAIDsupported government unit finalized seven deals, which will deliver urban services to 101,500 

households. 

Cross Cutting Issues: 

HIV/AIDS: USAID/South Africa programs, which can be viewed at (<http://www.sn.apc.org/usaidsa>), are 

helping to integrate and strengthen HIV/AIDS programs in collaboration with the South African 

Government and through developing partnerships with communities to mitigate the effects of the 

pandemic. Community groups trained by USAID collectively raised $1 million dollars in cash and in kind 

to help families affected by HIV/AIDS and to alleviate poverty. In addition seven universities are also 

implementing HIV/AIDS prevention programs to mitigate the impact of HIV/AIDS in their communities with 

USAID support. In order to increase information and reduce stigma associated with HIV/AIDS, USAID 

supported a new initiative of the international award winning Takalani Sesame, called “Talk to Me” which 

focuses on the importance of discussing HIV issues at all ages. USAID assistance helped update 

information on the impact of HIV/AIDS on urban poverty in nine cities. USAID and other donors are jointly 

funding analysis on the roll-out of the national anti-retroviral treatment program, the impact of HIV/AIDS 

on crime rates, and the decrease in hospital staff numbers to assist South Africa in dealing with the 

economic impact of the pandemic. 

Gender: South Africa has become a regional leader in policies and actions aimed at advancing gender 

equity and equality. However, unemployment among women is 31.4%, compared to 22.4% for men and 

the official rape figure has increased by 4.5% from 52,733 women in 2003/04 to 55,114 in 2004/05. 

USAID’s focus on the pervasive problem of gender-based violence helped South Africa pioneer the 

establishment of five centers where comprehensive services are available to violated women. The 

centers are the inspiration for President Bush’s Women’s Justice and Empowerment Initiative. A total of 

2,817 (all female) cases of rape were reported at the five centers in FY 2005, and the conviction rate was 

a high 71%. A USAID-funded awareness campaign on violence against women and children reached a 

cumulative total of 325,446 school children. USAID funded the training of 19 trainers and 100 

prosecutors in trial skills needed to prosecute gender-based violence cases and continues to support 

organizations that assist victims of gender-based violence gain access to justice. USAID, in partnership 

with universities, launched a program to increase the number of women in senior academic positions and 

to assist women researchers to publish and attain advanced degrees. USAID supported 131 women 

entrepreneurs in a specialized program to expand their businesses, and USAID’s economics program 

exceeded its overall targets for female economists’ involvement in both training and analytical studies by 

44.6%. Of the small businesses assisted in FY 2005, 21% were women-owned, accounting for 12% of 

business sales and 18% of new jobs created. A USAID health program challenges traditional male 

gender roles to reduce gender-based violence. The Regional HIV/AIDS provide HIV/AIDS prevention, 

care and treatment programs in several countries to create opportunities for women to insist on safe sex 

practices and for men to participate in prevention, care and treatment programs in a responsible way. 
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FY 2006 Program 

SO: 674-001 Democratic Consolidation Advanced 

Promote And Support Anti-Corruption Reforms 

Promote and Support Anti-Corruption Reforms ($300,000 DA). USAID will fund two schools of journalism 

to open one resource center for investigative journalism and train 75 media practitioners in investigative 

journalism skills and will award at least three grants to South African organizations for innovative work in 

anti-corruption. Principal grantees: Pact, Inc. (prime) and Idasa (sub). 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact of HIV/AIDS. See the State Department Congressional Budget 

Justification, Global HIV/AIDS Initiative section, for a discussion of this program. 

Strengthen Civil Society 

Strengthen Civil Society ($1,265,000 DA). USAID’s program to strengthen civil society works in tandem 

with its local government efforts to improve governance at the local level. USAID is training leaders of 

nearly 50 community-based organizations in basic organizational, fundraising, and advocacy skills and 

will facilitate introductions to their local councils to initiate joint problem-solving relationships. Each leader 

will, in turn, train leaders from at least two other community organizations. There are upwards of 100,000 

civil society organizations in South Africa, most of which are engaged in service delivery at the community 

level. However, nearly all are experiencing financial hardships due to low levels of donations. USAID will 

support a program implemented by a South African grantee to harmonize the complex and inaccessible 

legal framework governing nonprofit organizations. This program will help to resolve legislative 

contradictions and improve the administration and disbursement rates of South Africa's two key 

governmental grant-making bodies thus ensuring that central funds reach civil society groups in a timely 

manner. In addition, because South Africa has a weak history of philanthropy and private giving is not 

commensurate with the size of the South African economy, USAID will support advocacy efforts of a local 

non-governmental consortium to increase tax incentives in order to stimulate private philanthropy. 

Principal grantees: Pact, Inc. (prime) and Idasa (sub). 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($2,178,000 DA, $1,287,000 ESF). FY 2006 funding will be used to 

address the problem of gender-based violence through support for a pioneering South African model that 

delivers both assistance and access to justice for rape survivors. With Development Assistance funds, 

USAID will complete its program to assist the South African Department of Justice to improve its internal 

administrative processes by training 100 magistrates and 50 court officials in South Africa’s new 

courthouse administrative regulations; opening a national Justice Center to train future prosecutors, 

magistrates and court officials; and expanding the use of computerized case flow management. With 

Economic Support Funds, USAID will give at least five grants to three types of South African programs: 

victim empowerment programs that assist victims of rape and abuse to obtain access to justice; diversion 

programs for first-time offenders; and programs that prepare sex offenders for reintegration into society. 

Development Assistance funding will also be used to open 12 additional community courts and to prepare 

20 qualified women and black legal practitioners to be eligible for appointment as judges. Principal 

contractors and grantees: Research Triangle Institute and Business Against Crime (primes). 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($1,430,000 DA). USAID-funded programs 
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are central to South Africa's efforts to respond to widespread dissatisfaction and improve the performance 

of the local sphere of government. Working in 23 municipalities, jointly selected with the South African 

Government, USAID will field experts to provide hands-on technical assistance and on-the-job training to 

assist local councils. This activity will result in advanced credit control systems, enhanced local economic 

development planning, better use of information technology, and increased revenue flows. Principal 

contractor: Research Triangle Institute (prime). 

FY 2007 Program 

SO: 674-001 Democratic Consolidation Advanced 

Promote And Support Anti-Corruption Reforms 

Promote And Support Anti-Corruption Reforms. No obligations are planned for this Strategic Objective in 

FY 2007. 

FY 2006 Program 

SO: 674-002 Increased Access to Quality Education and Training 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($7,909,000 DA). USAID supports basic education 

in four of South Africa’s poorest provinces. In FY 2006, USAID will train up to 1,083 teachers as "master 

teachers" in four, five-day residential training programs during South African school breaks. The master 

teachers will then extend the training they have received to an additional 2,644 teachers in their own and 

nearby schools using what is known as a cascade training system. The teachers will use studentcentered approaches to teach numeracy and literacy for grades one to three, and math and science 

subjects for grades four to six (and for grades 10-12 in a pilot project in one province), reaching 

approximately 192,000 students. Teachers will learn how to integrate HIV/AIDS messages throughout 

the other subject areas they teach as part of USAID-sponsored training. Through the AEI, USAID will 

support both in-service and pre-service training for teachers. USAID also will provide direct training and 

technical assistance to parents, teachers, and principals in 468 school governing bodies (the equivalent 

of Parent-Teacher Associations in the United States) to establish and implement three-year school 

development plans. USAID will also provide technical and strategic management support, through 

targeted local higher education institutions, to mitigate the impact of HIV/AIDS within the education 

sector. USAID will provide technical assistance through local higher education institutions to assist 

national and provincial education departments to develop and implement strategies that address demand 

and supply models for teachers to mitigate the effects of HIV/AIDS on the education system. In addition, 

USAID will assist the national and provincial education departments in developing care and support 

programs targeting teachers and students affected by HIV/AIDS. Principal contractor: Research Triangle 

Institute (prime). 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission & Impact Of HIV/AIDS. See the State Department Congressional Budget 

Justification, Global HIV/AIDS Initiative section, for a discussion of this program. 

FY 2007 Program 

SO: 674-002 Increased Access to Quality Education and Training 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education. No obligations are planned for this Strategic 

Objective in FY 2007. 

FY 2006 Program 
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SO: 674-004 Improved Capacity to Formulate, Evaluate and Implement Economic Policies 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($1,700,000 DA). USAID provides technical 

assistance and training for South African Government economists to assist with a series of economic 

analyses related to poverty reduction and employment generation. A priority is to establish a single set of 

official poverty levels to be used by all South African Government departments in analyzing and targeting 

the impact of spending programs and measuring the cost effectiveness of government interventions. This 

will also contribute to enhanced performance budgeting. Supporting South African researchers, the 

program will conduct an analysis to determine how current labor market legislation is impeding the ability 

of small businesses to create jobs due to excessive regulation. USAID will fund training and mentoring of 

national, provincial and municipal budget officers to analyze new spending programs and monitor 

performance. In addition, USAID will help South African treasury officials examine barriers to growth and 

determine policy revisions needed to halve poverty and unemployment by 2015. USAID will also 

complete analysis of the magnitude and impact of farm worker evictions and make recommendations for 

new legislation. USAID will fund technical assistance and training for four pilot sites to implement 

provisions of a new act on land tenure which USAID helped to develop. This act provides traditional 

communities with options for improved security in their land rights. In partnership with an international 

foundation, USAID will analyze the impact of foreign migrant labor on the South African economy to 

determine the extent of the problem and whether changes to existing laws are necessary. Other 

analyses, commissioned by South African officials preparing for the 2010 Soccer World Cup, will examine 

lessons learned and best practices from the experiences of other mega-sports events to ensure that 

benefits to small businesses, job creation, and poverty reduction are maximized. USAID will extend the 

scope of its analysis on the impact of globalization on the poor, to include an assessment of the impact of 

globalization on women. Further, USAID will assess the impact on the poor of proposed free trade 

agreements, especially those with India and Brazil, as well as proposed agreements with China, Nigeria 

and Mercosur. Principal contractor: IBM; other implementing agency: U.S. Department of Treasury 

(primes). 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission & Impact Of HIV/AIDS. See the State Department Congressional Budget 

Justification, Global HIV/AIDS Initiative section, for a discussion of this program. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen The Financial Services Sector and Increase Access to Capital ($400,000 DA). USAID 

assistance to reduce the power of monopolies in the South African economy will conclude in FY 2006, 

and USAID will support highly specialized technical exchanges to help cement the government-togovernment links that have been initiated between the South African Competition Commission and U.S. 

counterparts, the Department of Justice and the Federal Trade Commission. This will enable the 

Competition Commission to continue to benefit from the experience of U.S. counterparts beyond the term 

of USAID’s program. USAID will assist South Africa to implement pending legislation which is designed 

to reduce the chances of over-indebtedness and predatory lending by financial institutions. With support 

from USAID, a U.S. Treasury advisor will complete work establishing a savings deposit insurance 

program to protect savers in case of bank failure. Principal contractor: IBM; other implementing agency: 

U.S. Department of Treasury (primes). 

FY 2007 Program 

SO: 674-004 Improved Capacity to Formulate, Evaluate and Implement Economic Policies 

Improve Economic Policy and the Business Environment 
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Improve Economic Policy and the Business Environment. No obligations are planned for this Strategic 

Objective in FY 2007. 

FY 2006 Program 

SO: 674-006 Increased Access to Shelter and Environmentally sound Municipal Services 

Expand & Improve Access To Economic & Social Infrastructure 

Expand and Improve Access to Economic and Social Infrastructure ($847,000 DA). USAID is supporting 

up to four municipalities and non-governmental organizations (NGOs) in their efforts to expand access to 

energy and shelter for the poor, improve energy efficiency practices, and enhance community 

participation in delivery of housing services. To promote the expansion of energy-saving technologies 

and shelter for the poor, USAID will introduce energy-efficient water technologies as an option for slum 

dwellers, as well as improved shelter for those in special need, especially orphans and vulnerable 

children and those affected by HIV/AIDS. USAID will provide technical assistance and support for new 

financing mechanisms for the establishment of local production facilities for solar thermal collectors, 

creating jobs through small enterprises to produce absorbers and collectors and to install the heaters 

themselves. Principal contractor: Louis Berger Group, Inc. (prime). 

Improve Access To Clean Water & Sanitation 

Improve Access to Clean Water and Sanitation ($800,000 DA). USAID continues to support water and 

sanitation programs, with a goal of reaching six municipalities, by expanding credit guarantees. USAID 

will provide targeted technical assistance and training to national and local authorities to develop 

appropriate regulatory and implementation guidelines to expand access to water and sanitation services 

for poor households. Through NGOs, USAID will introduce water savings schemes and efficiency 

measures such as retrofitting and replacement of decaying infrastructure focusing on cost recovery to 

build sustainability. Such programs are expected to increase informal settlement dwellers’ willingness to 

pay for services, a challenge facing service providers in South Africa. Technical assistance and training 

for the accreditation of individuals in selected communities will help ensure that skills to maintain 

infrastructure are retained at the community level, where they are most needed. Principal contractor: 

Louis Berger Group, Inc. (prime). 

Reduce, Prevent & Mitigate Pollution 

Reduce, Prevent and Mitigate Pollution ($600,000 DA). USAID will promote energy efficiency and 

reduced intensity of greenhouse gas emissions in municipal services. USAID is supporting the roll-out of 

new legislation to improve air quality by assisting five local governments to expand detailed inventories of 

greenhouse gas emissions to include priority air pollutant emissions and local action plans to help the 

cities meet the requirements of the legislation. USAID will further support municipal efforts to set up pilot 

air quality monitoring projects in two highly polluted urban areas. Principal contractor: Louis Berger 

Group, Inc. (prime). 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector and Increase Access to Capital ($300,000 DA). Using credit 

enhancement, USAID will support South Africa’s private financial sector in its efforts to reach low-income 

markets with new housing finance products. USAID will also expand infrastructure finance activities to an 

additional two municipalities through continued support for the development of a municipal bond market. 

Up to $300,000 will be reserved for Development Credit Authority transactions to accomplish these goals. 

USAID will continue existing public-private partnerships and develop new ones, working with South 

African and U.S. firms on expanding finance for municipal services. One activity is expected to leverage 

$1.6 million in housing finance for poor families participating in a rent-to-buy program, in collaboration 
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with private South African banks. Another is expected to leverage over $500 million in infrastructure 

finance for the provision of water, sanitation and roads in South Africa's capital city. USAID will provide 

technical assistance to support South African efforts to rationalize and streamline grants to municipalities 

from the central government, similar to U.S. block grants to cities, helping to improve municipalities’ ability 

to leverage private resources. Principal contractors and grantees: To be determined. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($700,000 DA). USAID will support the 

South African Government’s efforts to assist medium-sized and metropolitan municipalities to develop 10 

to 20 year capital investment planning and financing strategies, as required in new national legislation. 

Using expert technical assistance and training, USAID will work with policymakers to build their 

knowledge of financing and capital options and thus integrate strategic capital spending into current and 

future budgeting plans. In order to address key capacity challenges, USAID will use technical assistance 

and grants to local organizations to leverage the domestic resources required for housing and 

infrastructure and introduce innovative models for strategic planning and financing at the national, 

provincial, and local government levels. USAID will help South Africa develop guidelines for transferring 

housing subsidy distribution responsibilities from the national to the provincial or local government level. 

Principal contractor: Louis Berger Group, Inc. (prime). 

FY 2007 Program 

SO: 674-006 Increased Access to Shelter and Environmentally sound Municipal Services 

Expand & Improve Access To Economic & Social Infrastructure 

Expand & Improve Access To Economic & Social Infrastructure. No obligations are planned for this 

Strategic Objective in FY 2007. 

FY 2006 Program 

SO: 674-008 Increased Use of HIV/AIDS and Other Primary Health Care Services 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health and Nutrition ($3,093,000 CSH). USAID uses technical assistance and 

training to support municipalities and health districts to strengthen a network of primary health care 

facilities in five provinces. These facilities can, then, make available the full range of maternal, child, 

reproductive health and HIV/AIDS services at least 80% of the time at a consistent standard of care. 

USAID programs will improve the quality of the services; increase access to youth-friendly services; 

increase the quality of maternal and child health services; and improve TB and HIV/AIDS diagnosis and 

treatment. USAID activities will focus on 15 districts, reaching an estimated 10 million people. Through 

technical assistance, USAID will support at least eight mentoring initiatives where stronger 

districts/facilities will provide technical support to weaker districts. Additional support to 100 public health 

facilities, through targeted technical assistance and training, will improve service quality in child survival 

and nutrition, support family planning and improve maternal health and nutrition, benefiting an estimated 

one million people. Of the total 100 facilities, 25 will be encouraged to promote integration of youth and 

adolescent reproductive health services into primary health care. USAID will use technical assistance to 

expand 32 youth-friendly services initiatives and strengthen 15 community network initiatives focusing on 

youth health status. It will improve youth participation through dissemination of preventive health care 

information using approaches appealing to youth, and increase support to family planning, improved 

maternal health, and nutrition. USAID technical assistance will also ensure that the management of these 

facilities is based on the collection of objective data, valid indicators of performance, and effective 

monitoring of key action plans. Through technical assistance, USAID will establish health committees to 

improve community participation and will support training of 200 health care and community-level 

workers. Additional training under the program for 600 nurses and other health support staff will focus on 

infection prevention, counseling, wellness options, nutrition and safe birth practices, as well as improving 
12

the availability, quality and management of services. Principal contractors: Management Sciences for 

Health (prime), University Research Corporation, and Health Systems Trust (subs). 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases of Major Importance ($1,977,000 CSH). USAID programs will 

use technical assistance and strategic planning to improve the diagnosis and treatment of TB in at least 

19 districts and over 230 facilities in five provinces, reaching an estimated 10 million people. USAID will 

work with four non-governmental organizations and other community partners to assist in developing 

community-based strategies to ensure early referrals for screening and treatment adherence. To reduce 

stigma and promote early treatment-seeking behavior among TB patients, USAID will continue to fund a 

public education strategy using mass and local media as well as involvement of patients and people living 

with HIV/AIDS. At the facility level, USAID will provide technical assistance to help integrate TB with HIV 

and other health services through the creation of referral systems between clinical services, including 

voluntary HIV counseling and testing centers, and between different levels of the health system. Since 

almost 11% of pregnant women are estimated to be TB smear positive, USAID training and technical 

support will assist 232 facilities in targeted districts in screening these women for both HIV and TB. 

USAID will work closely with universities and research institutions to test innovative models for involving 

the private sector and including traditional providers and employers. In addition, USAID will use technical 

assistance to disseminate lessons learned and “better practices” and seek opportunities to extend 

successful models more widely. Finally, USAID will fund three new research activities designed to 

address constraints to TB case detection and treatment adherence. Principal contractors and grantees: 

University Research Corporation, the Royal Netherlands Tuberculosis Association (primes), 

Management Sciences for Health, and Health Systems Trust (subs). 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact Of HIV/AIDS. See the State Department Congressional Budget 

Justification, Global HIV/AIDS Initiative section, for a discussion of this program. 

All family planning assistance agreements will incorporate clauses that implement the President's 

directive restoring the Mexico City policy. 

FY 2007 Program 

SO: 674-008 Increased Use of HIV/AIDS and Other Primary Health Care Services 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition. No obligations are planned for this Strategic Objective in FY 

2007. 

FY 2006 Program 

SO: 674-009 Increased Market-Driven Employment Opportunities 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($5,933,000 DA). USAID provides technical assistance and 

training to historically disadvantaged small, medium, and micro-level enterprises in all of South Africa’s 

nine provinces. USAID assistance will help 2,300 small businesses meet production, quality, financial 

and regulatory requirements so that they can expand into and participate competitively in new domestic 

and international markets. In the manufacturing and services sectors, USAID will continue its successful 

business linkages program, providing technical assistance and matching historically disadvantaged small 

and medium enterprises with other African firms and U.S. companies. USAID-funded technical 

assistance and mentoring will also prepare client entrepreneurs to take advantage of access to U.S. 
13

markets offered by the African Growth and Opportunity Act (AGOA), with an expected $4.2 million in 

sales to be generated. Overall, the program is expected to generate $150 million in sales, including $25 

million in exports, of such products as furniture, clothing, automotive parts and giftware, and such 

services as information technology, security and tourism. USAID-supported programs are expected to 

create 900 full-time equivalent jobs in the manufacturing and services sectors through FY 2006 

assistance. 

In the agricultural sector, USAID is funding a similar program of technical assistance, training and 

business linkage facilitation to enhance agricultural sales for small, historically disadvantaged farmers. 

The program will reach over 1,800 emerging agribusinesses and farms in historically disadvantaged 

communities and is expected to create over 950 new jobs. More importantly for farmers, USAID 

interventions will create significant income by generating over $17 million in sales of vegetables, fruits, 

specialty teas, livestock, seafood, spices, and other niche products. With funding from the Initiative to 

End Hunger in Africa, USAID will continue activities in agricultural biotechnology research that have the 

potential to create employment and market opportunities for small farmers. 

Across the agricultural, manufacturing and services sectors, USAID will work to improve access to 

affordable financial services for small, medium and microenterprises. The agricultural linkages program 

will continue to explore opportunities to enhance access to finance for small agricultural enterprises 

through such mechanisms as supplier credit and use of forward sales contracts as collateral for 

agricultural loans from commercial banks. USAID plans to transfer $200,000 to the Development Credit 

Authority (DCA) account to develop new mechanisms that will unlock the financial resources of South 

Africa’s large and smaller specialty financial institutions. USAID also will use technical assistance and 

grants to local organizations to support the development of microenterprises. Assistance for these 

microenterprises will help the poor to strengthen their businesses, obtain the resources they require to 

grow and operate in a sustainable manner. 

In FY 2006, across all sectors, USAID support to historically disadvantaged small, medium and 

microenterprises in South Africa is expected to generate over 1,850 private sector jobs and $167 million 

in new sales and facilitate access to over $130 million in finance. Principal grantees: Corporate Council 

on Africa, International Executive Service Corps (primes), and ECI Africa (sub). Development Credit 

Authority recipients to be determined. 

FY 2007 Program 

SO: 674-009 Increased Market-Driven Employment Opportunities 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness. No obligations are planned for this Strategic Objective in FY 

2007. 

FY 2006 Program 

SO: 674-VVV Strengthened Capacity to Deliver Sustainable and Accessible Integrated Municipal 

and Justice Services 

Promote And Support Anti-Corruption Reforms 

Promote And Support Anti-Corruption Reforms. No obligations are planned for this Strategic Objective in 

FY 2006. 

FY 2007 Program 

SO: 674-VVV Strengthened Capacity to Deliver Sustainable and Accessible Integrated Municipal 

and Justice Services 

Promote And Support Anti-Corruption Reforms 
14

Promote And Support Anti-Corruption Reforms ($300,000 DA). USAID plans to assist up to 30 

municipalities to draft policies that will ensure transparency and accountability in the allocation of public 

housing, the award of contracts, and the recruitment of personnel. USAID expects to open a Resource 

Center for Investigative Journalism and to complete the training of 75 media practitioners from small and 

medium markets in investigative journalism skills initiated under the previous democracy program. 

Principal contractors and grantees: To be determined. 

Reduce, Prevent & Mitigate Pollution 

Reduce, Prevent and Mitigate Pollution ($1,610,000 DA). USAID plans to promote energy efficiency and 

reduced intensity of greenhouse gas emissions in the design of service delivery programs in water, 

sanitation, shelter, and other infrastructure in up to 20 municipalities. USAID intends to support 

innovative approaches to local government environmental management programs in an additional 10 

cities. Through technical assistance, USAID plans to encourage alliances between the commercial and 

nonprofit sectors to scale up service delivery models to reach a broader cross-section of poor 

households. USAID may align this environment component closely to the service delivery activities to 

promote best practices in resource management, co-financing of investments, sound municipal planning, 

and equitable access policies. Principal contractors and grantees: To be determined. 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($1,300,000 ESF). USAID plans to support victim empowerment 

organizations that prepare sex offenders for reintegration into society and thereby reduce recidivism. 

USAID may also fund grants to organizations which provide services to victims of rape and abuse as well 

as local groups engaged in implementing alternative sentencing programs. Principal contractors and 

grantees: To be determined. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($6,648,000 DA). USAID is planning to use 

technical assistance, training and grants to local organizations to strengthen capacity to deliver municipal 

water, electricity, sanitation and housing services in a sustainable manner. In at least 20 municipalities, 

USAID aims to provide technical assistance to improve local economic development planning and 

improve transparency in procurement and hiring. USAID will also assist the municipalities to improve 

their billing systems and local revenue collection systems. In 17 of these municipalities, USAID will 

facilitate the engagement of 30 community-based citizen groups with their local councils to solve local 

problems. USAID anticipates leveraging resources from domestic financial markets for the expansion of 

municipal services through the use of its credit guarantee mechanism, the Development Credit Authority. 

Through technical assistance and feasibility studies, USAID expects to expand public-private partnership 

models to close the financial gap between limited public resources and vast infrastructure investment 

needs. USAID may provide grants to non-governmental organizations and develop alliances with the 

commercial sector to introduce innovative community development practices that will guide local 

governments on planning for the future. USAID technical assistance may support South Africa’s private 

financial sector’s efforts to reach low-income markets with new housing finance products. USAID aims to 

expand its municipal finance activities for infrastructure to develop a municipal bond market in South 

Africa. Principal contractors and grantees: To be determined. 

Funds for activities notified under this Strategic Objective are part of a new strategy statement that is 

pending approval. Should funding levels or activities included in this data sheet change substantially 

once the strategy statement is approved, a new notification will be submitted prior to the obligation of any 

funds. 

FY 2006 Program 
15

SO: 674-WWW Strengthened Capacity to Deliver Sustainable and Integrated Primary Health Care 

and HIV and AIDS Services 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition. No obligations are planned for this Strategic Objective in FY 

2006. 

FY 2007 Program 

SO: 674-WWW Strengthened Capacity to Deliver Sustainable and Integrated Primary Health Care 

and HIV and AIDS Services 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health and Nutrition ($3,130,000 CSH). USAID plans to provide technical 

assistance to strengthen the primary health care delivery system in five provinces, focusing on integrating 

all services at the clinic level and on delivering a comprehensive prevention of mother-to-child 

transmission package at the district level. USAID intends to assist over 100 facilities in 15 health districts, 

serving an estimated 10 million people, to provide a range of quality child, reproductive health, TB and 

HIV/AIDS services at least 80% of the time. Activities are expected to focus on strengthening key 

elements of the primary health care system including management of drug logistics, quality of care, 

supervision, information use, monitoring and evaluation. USAID anticipates providing technical 

assistance and training to build effective health management capacity and systems at the district, 

municipal, and national levels. Integrating key HIV/AIDS prevention activities into the primary health care 

system through targeted technical assistance will continue to be a major activity. 

USAID-supported technical assistance is expected to encourage districts to improve the quality of 

immunization programs for all newborns and children, with specific emphasis on children born of HIVpositive mothers at their health facilities. In addition, technical assistance and training will be provided to 

improve child health services in at least 50 facilities, benefiting an estimated one million people. USAID 

plans to support at least eight mentoring initiatives where stronger districts/facilities will provide technical 

support to weaker districts. USAID expects to support training of health care and community-level 

workers in managing childhood illnesses, family planning and other primary health care services. A total 

of 25 district-level facilities, reaching an estimated 250,000 people and promoting integration of youth and 

adolescent reproductive health services into primary health care, may also be assisted in FY 2007. 

Principal contractors and grantees: To be determined. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent and Control Infectious Diseases of Major Importance ($2,000,000 CSH). USAID plans to 

continue to support initiatives to improve the diagnosis and treatment of TB in high prevalence areas and 

to increase the capacity of the South African Government to manage TB programs, expanding assistance 

to 23 districts with 15,000 individuals co-infected with HIV/AIDS and TB. In addition, USAID expects to 

work closely with universities and research institutions to develop and test innovative models for involving 

the private sector, including traditional providers and employers, to expand access to TB prevention and 

control services. USAID also anticipates funding at least six local organizations, reaching 3,000 TB/HIV 

co-infected individuals in high prevalence areas, to promote early detection and treatment of TB. To 

reduce treatment interruption rates and improve treatment adherence, USAID plans to continue to provide 

technical assistance and training to strengthen linkages between health centers and community 

supporters for directly-observed treatment. Interventions are likely to include training and technical 

assistance in at least 20 high-burden districts and 70 sub-districts and support for a public education 

strategy using mass and local media as well as involvement of patients and people living with HIV/AIDS. 

Religious leaders, politicians, and traditional healers may be used to promote demand-creation for TB 

services, and school students will be used to encourage family members with TB symptoms to seek care. 

At the facility level, USAID plans to provide technical assistance to help integrate TB with HIV and other 
16

health services. To improve the continuum of care for co-infected patients, USAID expects to support the 

creation of referral systems between clinical services, including voluntary HIV counseling and testing 

centers, and between different levels of the system. Also, since almost 11% of pregnant women are 

estimated to be TB smear positive, USAID support may assist facilities in targeted districts in screening 

these women for both HIV and TB. USAID will work closely with universities and research institutions to 

test innovative models for involving the private sector, including traditional providers and employers (large 

and small) to expand access to TB prevention and control services. Principal contractors and grantees: 

To be determined. 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission and Impact Of HIV/AIDS. See the State Department Congressional Budget 

Justification, Global HIV/AIDS Initiative section, for a discussion of this program. 

All family planning assistance agreements will incorporate clauses that implement the President's 

directive restoring the Mexico City policy. 

Funds for activities notified under this Strategic Objective are part of a new strategy statement that is 

pending approval. Should funding levels or activities included in this data sheet change substantially 

once the strategy statement is approved, a new notification will be submitted prior to the obligation of any 

funds. 

FY 2006 Program 

SO: 674-YYY Strengthened Capacity to Provide Quality Basic Education and Productivity - 

Increasing Job Skills 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education. No obligations are planned for this Strategic 

Objective in FY 2006. 

FY 2007 Program 

SO: 674-YYY Strengthened Capacity to Provide Quality Basic Education and Productivity - 

Increasing Job Skills 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($2,260,000 DA). Building on achievements under 

its previous basic education program, USAID plans to continue providing technical assistance for 

curriculum development, mainly to support the improvement of math and science teaching and learning, 

and the improvement of education management and governance systems. In addition, USAID plans to 

continue to train master teachers, reaching approximately 1,700 master teachers in FY 2007. These 

teachers will "cascade" what they have learned to approximately 4,000 teachers in their own, and nearby, 

schools. Through resources provided by the Presidential Africa Education Initiative, USAID-supported 

training is expected to help these teachers improve their teaching skills in literacy, numeracy, math, 

science and technology. USAID support will strengthen school management and governance systems 

and provide training and technical assistance to over 2,000 parents, teachers, and principals to establish 

and implement three-year school development plans. In FY 2007, USAID will begin a transition to a 

program in which the focus of higher education will dovetail with the basic education goals by supporting 

teacher professional development in South Africa. Priorities will include the creation of sustainable 

models of collaboration between targeted higher education institutions and provincial education 

departments to develop and implement quality teacher training programs and ensure the supply of 

professionally qualified teachers. USAID will draw heavily on previous work to create linkages between 

South African and U.S. higher education institutions with expertise in teacher education. Principal 

contractors and grantees: To be determined. 
17

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce through Vocational/Technical Education ($300,000 DA). One of the South 

African Government's top priorities is skills development leading to employment. Beginning in FY 2007, 

USAID will undertake new activities targeting students in formal skills development programs offered 

through technical and vocational colleges. There are approximately 406,000 students, mostly youth 

between the ages of 18 - 25, enrolled in 50 public technical colleges with 166 satellite campuses located 

in all of South Africa’s nine provinces. These institutions offer skills training in business studies 

(accounting, financing, marketing, and management), social sciences, engineering, general education, 

art/music, information and communications technology, tourism, interior design, hair care, cosmetology, 

catering, and hospitality. In 2007, USAID anticipates developing a program linking the colleges and their 

students with on-the-job training, internships, entrepreneurship and business development programs in 

scarce skills areas. USAID will explore possibilities for new public-private partnerships to leverage 

funding for such an activity. Some leading private South African businesses have expressed strong 

interest in developing approaches to support skills training for their sector or industry, and USAID will 

explore partnerships with these groups. Principal contractors and grantees: To be determined. 

Funds for activities notified under this Strategic Objective are part of a new strategy statement that is 

pending approval. Should funding levels or activities included in this data sheet change substantially 

once the strategy statement is approved, a new notification will be submitted prior to the obligation of any 

funds. 

FY 2006 Program 

SO: 674-ZZZ Strengthened Public - Private Capacity to Support a Competitive Small Business 

Sector 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness. No obligations are planned for this Strategic Objective in FY 

2006. 

FY 2007 Program 

SO: 674-ZZZ Strengthened Public - Private Capacity to Support a Competitive Small Business 

Sector 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($7,811,000 DA). USAID will initiate a new program of technical 

assistance and training to help strengthen the environment to better support historically disadvantaged 

small, medium, and micro-level enterprises. The program is expected to provide technical assistance and 

training in four specific areas: small business capacity-building through business development support; 

improving access to finance for small, medium and microenterprises; targeted support for policy or 

regulatory issues that affect the business environment for small businesses; and workforce skills 

development. USAID anticipates a continued focus on small, medium and microenterprises in both 

agricultural and non-agricultural sectors. 

To strengthen the capacity of small businesses to grow and generate jobs, USAID plans to provide 

technical assistance directly to 2,300 firms to help them meet the production, quality, financial and 

regulatory requirements necessary to expand their markets in the domestic and international arenas. 

USAID expects to provide technical assistance to small business service providers as a measure toward 

ensuring a sustainable source of affordable, high-quality business support services. USAID expects to 

continue successful elements of its previous business linkages program, matching historically 

disadvantaged small and medium enterprises with larger African firms and U.S. companies that serve as 

both markets and mentors for these developing enterprises. Complementing business linkage activities, 
18

USAID may provide support to targeted businesses that are participants in the backward and forward 

linkages of selected value chains, based on their potential for generating significant sustainable 

employment opportunities. USAID also seeks to prepare eligible entrepreneurs to take advantage of 

access to U.S. markets offered by the African Growth and Opportunity Act, with a projected $4.0 million in 

sales to be generated in FY 2007. The program is expected to generate $130 million in sales of such 

manufactured products as furniture, clothing, automotive parts and giftware and such services as 

information technology, security and tourism, including $30 million in exports. It is expected to create 900 

full-time equivalent jobs in the manufacturing and services sectors. In the agricultural sector, USAID 

seeks to reach over 2,200 emerging agribusinesses and farms in historically disadvantaged communities, 

creating over 1,100 new jobs and significant income for farmers and agribusinesses. It may generate $20 

million in sales of vegetables, fruits, specialty teas, livestock, seafood, spices, and other niche products. 

With resources from the Initiative to End Hunger in Africa, USAID will fund agricultural biotechnology 

research that has the potential to create employment and market opportunities for small farmers. 

USAID will work to improve access to affordable financial services for small, medium and 

microenterprises across the agricultural, manufacturing and services sectors. In support of small 

agricultural enterprises, the program may encourage the use of such mechanisms as supplier credit and 

forward sales as collateral for agricultural loans from commercial banks. It may also identify opportunities 

for using the Development Credit Authority (DCA) loan guarantee to unlock the financial resources of 

South Africa’s large and smaller specialty financial institutions for productive use by small businesses. To 

support expansion of credit, USAID anticipates transferring $200,000 to the DCA account. USAID also 

may support the development of microenterprises through technical assistance and training targeted to 

help the poor strengthen their businesses and access the resources they require to grow and operate in a 

sustainable manner. 

South Africa’s strong macroeconomic framework has paved the way for sustained economic growth. 

However, some microeconomic policies and regulatory elements continue to impede small business 

growth. USAID expects to direct limited resources for technical assistance to address specific policy and 

regulatory constraints. Principal contractors and grantees: To be determined. 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce through Vocational/Technical Education ($350,000 DA). To help South 

Africa address the critical challenge of creating a productive workforce, USAID will provide technical 

assistance to develop and hone skills-building programs, ensuring that the programs produce graduates 

that have skills demanded by the private sector. Program activities may seek to leverage the resources 

of the private sector, building partnerships with large businesses that are seeking to strengthen small 

businesses that have the potential to become regular suppliers. USAID will work with these businesses 

to ensure that their investments are developmentally sound. Principal contractors and grantees: To be 

determined. 

Funds for activities notified under this Strategic Objective are part of a new strategy statement that is 

pending approval. Should funding levels or activities included in this data sheet change substantially 

once the strategy statement is approved, a new notification will be submitted prior to the obligation of any 

funds. 
19

Results Framework 

674-001 Democratic Consolidation Advanced 

Program Title: Democracy and Governance 

 1.3: Strategic CSO/Government Partnerships Strengthened for Improved Policy Development and 

Service Delivery 

 IR 1.1: A more effective and accessible criminal justice system. 

 IR 1.2: Effective and Democratic Local Governance 

674-002 Increased Access to Quality Education and Training 

Program Title: Education 

 2.4: Mitigate the Impacts of HIV/AIDS on the Education sector 

 IR 2.1: Enhanced Capacity of Teachers (targeted to the teaching of numeracy, literacy, math, and 

science) 

 IR 2.2: Effective Implementation of Curriculum (with a focus on math and science) 

 IR 2.3: Improved Management and Governance of Educational Institutions 

674-004 Improved Capacity to Formulate, Evaluate and Implement Economic Policies 

Program Title: Economic Capacity Building 

 IR 4.1: Strengthened human resources in economics and policy 

 IR 4.2: Strengthened government departments that deal with economic policy matters 

 IR 4.3: Strengthened think tanks to formulate and deal with economic policy options 

 IR 4.4: Strengthened centers of economic excellence in teaching and research at historically 

disadvantaged Universities 

674-006 Increased Access to Shelter and Environmentally sound Municipal Services 

Program Title: Housing & Municipal Services 

 IR 6.1: Improved policy environment for facilitating access to shelter and urban services** 

 IR 6.2: Capacity building initiatives in service delivery and housing undertaken** 

674-008 Increased Use of HIV/AIDS and Other Primary Health Care Services 

Program Title: HIV/AIDS and Primary Health Care 

 IR 8.1: HIV/AIDS prevention measures strengthened 

 IR 8.2: Management of STIs improved 

 IR 8.3: Treatment for TB and AIDS improved 

 IR 8.4: HIV/AIDS care and support expanded 

 IR 8.5: Selected primary health care systems and services improved 

674-009 Increased Market-Driven Employment Opportunities 

Program Title: Employment Creation 

 IR 9.1: More Rapid Growth of Existing Small Medium and Micro Enterprises 

 IR 9.2: Increased Commercial Viability of Existing Small and Medium Agribusinesses 

674-VVV Strengthened Capacity to Deliver Sustainable and Accessible Integrated Municipal and 

Justice Services 

Program Title: Service Delivery 

674-WWW Strengthened Capacity to Deliver Sustainable and Integrated Primary Health Care and 

HIV and AIDS Services 

Program Title: Health and HIV and AIDS 
20

674-YYY Strengthened Capacity to Provide Quality Basic Education and Productivity - Increasing 

Job Skills 

Program Title: Education 

674-ZZZ Strengthened Public - Private Capacity to Support a Competitive Small Business Sector 

Program Title: Employment