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 redes-
ignate the name of the Foundation, to increase funding 
for the mission of the Foundation, and to increase the 
powers of the Foundation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘African Development 
Foundation Act of 2006’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) The African Development Foundation is 
uniquely promoting sustainable community-based so-
lutions to economic and social development and is ef-
fectively supporting the development of African- 
owned small enterprises as engines of growth and 
sources of income and employment for the poor. 
(2) The African Development Foundation’s pro-
grams advance United States interests in Africa and 
are in high demand across the continent, as evi-
denced by $20 million in host country contributions. 
(3) The Office of Management and Budget has 
determined the African Development Foundation to 
be a fully effective agency after assessing its pro-
gram performance. 
(4) The African Development Foundation is the 
only United States Government agency working di-
rectly at the grassroots level, supporting African-de-
signed and African-driven solutions to economic and 
social problems. The African Development Founda-
tion enables individuals and groups to get out of 
poverty by putting their own ideas to work, instead 
of someone else’s. 
(5) In 2005, African Development Foundation 
investments across Africa created more than 
110,000 jobs for poor Africans and generated $70 
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million in gross revenues for enterprises. Almost 65 
percent of micro and small entrepreneurs assisted by 
the African Development Foundation were women. 
(6) African Development Foundation-assisted 
groups had $35 million in export sales in 2005. For 
example, in Tanzania, the African Development 
Foundation is helping several thousand small sugar 
cane producers improve their income. Mtibwa Sugar 
has increased its gross export revenues by 423 per-
cent over the past three years, from US$1.188 mil-
lion during fiscal year 2002 to US$5.034 million in 
fiscal year 2005. In the Ruembe Outgrowers Asso-
ciation, sugar cane yields per hectare are up 30 per-
cent and cumulative export sales stand at US$4.7 
million. The number of participating cane farmers 
has increased by 50 percent since project inception 
and the income of the 1440 growers has almost dou-
bled as a consequence of investment by the African 
Development Foundation. 
(7) The African Development Foundation is 
supporting African solutions to prevent HIV/AIDS 
and to reduce its impact on families and commu-
nities. For example, in Swaziland, where almost 40 
percent of adults are infected with the AIDS virus, 
the African Development Foundation is improving 
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nutrition and providing income-generating opportu-
nities for widows and orphans by helping them 
produce and market vegetables, in Ghana, the Afri-
can Development Foundation funded the training of 
almost 1500 youth who conducted peer counseling 
on HIV/AIDS to more than 200,000 young people, 
in Plateau State, Nigeria, the African Development 
Foundation funded a pilot program to adapt and ex-
tend a faith-based life skills training program in the 
public secondary schools in which approximately 500 
teachers were trained in the new curriculum and 
more than 25,000 students received year-long train-
ing, and in Tanzania, the African Development 
Foundation 
has 
experimented 
with 
supporting 
schemes that extend micro-credit to people living 
with HIV/AIDS, enabling them to start informal 
businesses and undertake income-generating activi-
ties. 
(8) The work of the African Development 
Foundation is a powerful example of the goodwill of 
the American people, and it is one of the most effec-
tive foreign assistance programs of the United 
States. 
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SEC. 3. AMENDMENTS TO AFRICAN DEVELOPMENT FOUN-
DATION ACT. 
(a) REDESIGNATION.— 
(1) IN GENERAL.—Section 503(a) of the Afri-
can Development Foundation Act (Public Law 96– 
533; 22 U.S.C. 290h–1(a)) is amended by striking 
‘‘ ‘African Development Foundation’ ’’ and inserting 
‘‘ ‘United States African Development Foundation’ ’’. 
(2) REFERENCE.—Any reference to the African 
Development Foundation in any law, rule, regula-
tion, certificate, directive, instruction, or other offi-
cial paper in force on the date of the enactment of 
this Act shall be deemed to be a reference to the 
United States African Development Foundation. 
(b) FUNDING FOR GRANTS AND LOANS.— 
(1) LIMITATION.—Subsection (a) of section 505 
of such Act (22 U.S.C. 290h–3) is amended— 
(A) in paragraph (1), by inserting ‘‘(in-
cluding small enterprises, producer associations, 
and cooperatives)’’ after ‘‘entity’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘The total’’ and insert-
ing ‘‘Except as provided in this paragraph, 
the total’’; 
(ii) by striking ‘‘$250,000’’ and in-
serting ‘‘$400,000’’; and 
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(iii) by adding at the end the fol-
lowing new sentence: ‘‘The funding limita-
tion specified in this paragraph may be ex-
ceeded only in exceptional circumstances 
upon approval of the Board of the Direc-
tors and notification to Congress.’’. 
(2) USE OF FUNDS.—Subsection (b) of such 
section is amended, in the second sentence, by in-
serting before the period at the end the following: ‘‘, 
including supporting projects which benefit the 
poor’’. 
(3) RECIPIENTS.—Such section is amended by 
adding at the end the following new subsection: 
‘‘(c) To be eligible to receive grant, loan, or loan 
guarantee under this section, a small enterprise referred 
to in subsection (a) shall satisfy the following require-
ments: 
‘‘(1) Ownership is predominantly vested in one 
or more individuals who are indigenous to Africa 
and who are representative and knowledgeable of, 
and with a track record of responding to, the needs 
and aspirations of the poor. 
‘‘(2) Management and daily business operations 
of the entity are controlled by one or more individ-
uals who are indigenous to Africa.’’. 
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(c) 
POWERS
OF
THE
FOUNDATION.—Section 
506(a)(5) of such Act (22 U.S.C. 290h–4(a)) is amended 
by inserting ‘‘including providing technical assistance to 
eligible recipients described in section 505(a)(1),’’ after 
‘‘situated,’’. 
(d) BASIC PAY AND HIRING AUTHORITIES.—Sub-
section (d) of section 507 of such Act (22 U.S.C. 290h– 
5) is amended— 
(1) in paragraph (1), in the second sentence, by 
striking ‘‘level IV of the Executive Schedule under 
section 5315 of title 5’’ and inserting ‘‘level II of the 
Executive Schedule under section 5313 of title 5, 
United States Code’’; 
(2) in paragraph (2), by adding at the end the 
following new sentence: ‘‘Such experts and consult-
ants may be employed without regard to section 
5373 of such title.’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) Of the individuals employed by the Foun-
dation, not to exceed four such individuals may be 
appointed, compensated, or removed without regard 
to the civil service laws and regulations. No indi-
vidual appointed may receive a rate of pay that ex-
ceeds the rate for senior level positions under section 
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5376 of title 5, United States Code. An employee of 
an agency serving in a career, career conditional, or 
non-temporary excepted service position who is ap-
pointed by the Foundation shall be entitled, on ter-
mination of such appointment for any reason other 
than for the misconduct or delinquence of such em-
ployee, to be reinstated in such employee’s former 
position or a position of similar seniority and pay in 
the same agency.’’. 
Æ 
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