Short title

This Act may be cited as the African Development Foundation Act of 2006.

Findings

Congress finds the following: (1)The African Development Foundation is uniquely promoting sustainable community-based solutions to economic and social development and is effectively 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 programs advance United States interests in Africa and are in high demand across the continent, as evidenced 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 program performance. (4)The African Development Foundation is the only United States Government agency working directly at the grassroots level, supporting African-designed and African-driven solutions to economic and social problems. The African Development Foundation 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 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 percent over the past three years, from US$1.188 million during fiscal year 2002 to US$5.034 million in fiscal year 2005. In the Ruembe Outgrowers Association, sugar cane yields per hectare are up 30 percent 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 doubled 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 communities. For example, in Swaziland, where almost 40 percent of adults are infected with the AIDS virus, the African Development Foundation is improving nutrition and providing income-generating opportunities for widows and orphans by helping them produce and market vegetables, in Ghana, the African 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 extend 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 training, 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 activities. (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 effective foreign assistance programs of the United States.

Amendments to African Development Foundation Act

(a)

Redesignation

(1)

In general

Section 503(a) of the African 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, regulation, certificate, directive, instruction, or other official 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 (including small enterprises, producer associations, and cooperatives) after entity; and (B)in paragraph (2)— (i)by striking The total and inserting Except as provided in this paragraph, the total; (ii)by striking $250,000 and inserting $400,000; and (iii)by adding at the end the following new sentence: The funding limitation specified in this paragraph may be exceeded only in exceptional circumstances upon approval of the Board of the Directors and notification to Congress.. (2)

Use of funds

Subsection (b) of such section is amended, in the second sentence, by inserting 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 requirements: (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 individuals who are indigenous to Africa.

(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

Subsection (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 consultants 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 Foundation, not to exceed four such individuals may be appointed, compensated, or removed without regard to the civil service laws and regulations. No individual appointed may receive a rate of pay that exceeds the rate for senior level positions under section 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 appointed by the Foundation shall be entitled, on termination of such appointment for any reason other than for the misconduct or delinquence of such employee, to be reinstated in such employee’s former position or a position of similar seniority and pay in the same agency.