I 

109TH CONGRESS 

2D SESSION H. R. 5652 

To amend the African Development Foundation Act to redesignate the name 

of the Foundation, to increase funding for the mission of the Foundation, 

and to increase the powers of the Foundation. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 20, 2006 

Ms. LEE (for herself and Mr. FORTENBERRY) introduced the following bill; 

which was referred to the Committee on International Relations 

A BILL 

To amend the African Development Foundation Act to redesignate the name of the Foundation, to increase funding 

for the mission of the Foundation, and to increase the 

powers of the Foundation. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘African Development 

5 Foundation Act of 2006’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) The African Development Foundation is 

2 uniquely promoting sustainable community-based so3 lutions to economic and social development and is ef4 fectively supporting the development of African5 owned small enterprises as engines of growth and 

6 sources of income and employment for the poor. 

7 (2) The African Development Foundation’s pro8 grams advance United States interests in Africa and 

9 are in high demand across the continent, as evi10 denced by $20 million in host country contributions. 

11 (3) The Office of Management and Budget has 

12 determined the African Development Foundation to 

13 be a fully effective agency after assessing its pro14 gram performance. 

15 (4) The African Development Foundation is the 

16 only United States Government agency working di17 rectly at the grassroots level, supporting African-de18 signed and African-driven solutions to economic and 

19 social problems. The African Development Founda20 tion enables individuals and groups to get out of 

21 poverty by putting their own ideas to work, instead 

22 of someone else’s. 

23 (5) In 2005, African Development Foundation 

24 investments across Africa created more than 

25 110,000 jobs for poor Africans and generated $70 


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1 million in gross revenues for enterprises. Almost 65 

2 percent of micro and small entrepreneurs assisted by 

3 the African Development Foundation were women. 

4 (6) African Development Foundation-assisted 

5 groups had $35 million in export sales in 2005. For 

6 example, in Tanzania, the African Development 

7 Foundation is helping several thousand small sugar 

8 cane producers improve their income. Mtibwa Sugar 

9 has increased its gross export revenues by 423 per10 cent over the past three years, from US$1.188 mil11 lion during fiscal year 2002 to US$5.034 million in 

12 fiscal year 2005. In the Ruembe Outgrowers Asso13 ciation, sugar cane yields per hectare are up 30 per14 cent and cumulative export sales stand at US$4.7 

15 million. The number of participating cane farmers 

16 has increased by 50 percent since project inception 

17 and the income of the 1440 growers has almost dou18 bled as a consequence of investment by the African 

19 Development Foundation. 

20 (7) The African Development Foundation is 

21 supporting African solutions to prevent HIV/AIDS 

22 and to reduce its impact on families and commu23 nities. For example, in Swaziland, where almost 40 

24 percent of adults are infected with the AIDS virus, 

25 the African Development Foundation is improving 


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1 nutrition and providing income-generating opportu2 nities for widows and orphans by helping them 

3 produce and market vegetables, in Ghana, the Afri4 can Development Foundation funded the training of 

5 almost 1500 youth who conducted peer counseling 

6 on HIV/AIDS to more than 200,000 young people, 

7 in Plateau State, Nigeria, the African Development 

8 Foundation funded a pilot program to adapt and ex9 tend a faith-based life skills training program in the 

10 public secondary schools in which approximately 500 

11 teachers were trained in the new curriculum and 

12 more than 25,000 students received year-long train13 ing, and in Tanzania, the African Development 

14 Foundation has experimented with supporting 

15 schemes that extend micro-credit to people living 

16 with HIV/AIDS, enabling them to start informal 

17 businesses and undertake income-generating activi18 ties. 

19 (8) The work of the African Development 

20 Foundation is a powerful example of the goodwill of 

21 the American people, and it is one of the most effec22 tive foreign assistance programs of the United 

23 States. 


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1 SEC. 3. AMENDMENTS TO AFRICAN DEVELOPMENT FOUN2 DATION ACT. 

3 (a) REDESIGNATION.— 

4 (1) IN GENERAL.—Section 503(a) of the Afri5 can Development Foundation Act (Public Law 96– 

6 533; 22 U.S.C. 290h–1(a)) is amended by striking 

7 ‘‘ ‘African Development Foundation’ ’’ and inserting 

8 ‘‘ ‘United States African Development Foundation’ ’’. 

9 (2) REFERENCE.—Any reference to the African 

10 Development Foundation in any law, rule, regula11 tion, certificate, directive, instruction, or other offi12 cial paper in force on the date of the enactment of 

13 this Act shall be deemed to be a reference to the 

14 United States African Development Foundation. 

15 (b) FUNDING FOR GRANTS AND LOANS.— 

16 (1) LIMITATION.—Subsection (a) of section 505 

17 of such Act (22 U.S.C. 290h–3) is amended— 

18 (A) in paragraph (1), by inserting ‘‘(in19 cluding small enterprises, producer associations, 

20 and cooperatives)’’ after ‘‘entity’’; and 

21 (B) in paragraph (2)— 

22 (i) by striking ‘‘The total’’ and insert23 ing ‘‘Except as provided in this paragraph, 

24 the total’’; 

25 (ii) by striking ‘‘$250,000’’ and in26 serting ‘‘$400,000’’; and 


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1 (iii) by adding at the end the fol2 lowing new sentence: ‘‘The funding limita3 tion specified in this paragraph may be ex4 ceeded only in exceptional circumstances 

5 upon approval of the Board of the Direc6 tors and notification to Congress.’’. 

7 (2) USE OF FUNDS.—Subsection (b) of such 

8 section is amended, in the second sentence, by in9 serting before the period at the end the following: ‘‘, 

10 including supporting projects which benefit the 

11 poor’’. 

12 (3) RECIPIENTS.—Such section is amended by 

13 adding at the end the following new subsection: 

14 ‘‘(c) To be eligible to receive grant, loan, or loan 

15 guarantee under this section, a small enterprise referred 

16 to in subsection (a) shall satisfy the following require17 ments: 

18 ‘‘(1) Ownership is predominantly vested in one 

19 or more individuals who are indigenous to Africa 

20 and who are representative and knowledgeable of, 

21 and with a track record of responding to, the needs 

22 and aspirations of the poor. 

23 ‘‘(2) Management and daily business operations 

24 of the entity are controlled by one or more individ25 uals who are indigenous to Africa.’’. 


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1 (c) POWERS OF THE FOUNDATION.—Section 

2 506(a)(5) of such Act (22 U.S.C. 290h–4(a)) is amended 

3 by inserting ‘‘including providing technical assistance to 

4 eligible recipients described in section 505(a)(1),’’ after 

5 ‘‘situated,’’. 

6 (d) BASIC PAY AND HIRING AUTHORITIES.—Sub7 section (d) of section 507 of such Act (22 U.S.C. 290h– 

8 5) is amended— 

9 (1) in paragraph (1), in the second sentence, by 

10 striking ‘‘level IV of the Executive Schedule under 

11 section 5315 of title 5’’ and inserting ‘‘level II of the 

12 Executive Schedule under section 5313 of title 5, 

13 United States Code’’; 

14 (2) in paragraph (2), by adding at the end the 

15 following new sentence: ‘‘Such experts and consult16 ants may be employed without regard to section 

17 5373 of such title.’’; and 

18 (3) by adding at the end the following new 

19 paragraph: 

20 ‘‘(3) Of the individuals employed by the Foun21 dation, not to exceed four such individuals may be 

22 appointed, compensated, or removed without regard 

23 to the civil service laws and regulations. No indi24 vidual appointed may receive a rate of pay that ex25 ceeds the rate for senior level positions under section 


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1 5376 of title 5, United States Code. An employee of 

2 an agency serving in a career, career conditional, or 

3 non-temporary excepted service position who is ap4 pointed by the Foundation shall be entitled, on ter5 mination of such appointment for any reason other 

6 than for the misconduct or delinquence of such em7 ployee, to be reinstated in such employee’s former 

8 position or a position of similar seniority and pay in 

9 the same agency.’’. 

Æ 


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