two funding facilities available: Tier 1 and Tier 2
EIF - Tier 1 projects
The first stage of the programme provides the key trade-enabling building blocks for countries to work through how to prioritise actions needed to promote economic growth and sustainable development. The diagnostic trade integration studies provide a common platform for government, civil society, private sector and development partner stakeholders to own the trade and development track a country is moving down to secure a strong trading future.
- Tier 1 funds pre-DTIS, DTIS/DTIS update and support to NIAs
An LDC submits a request to become an EIF country, which is followed by a technical review. Once approved, the LDC builds up in-country support for the trade and development agenda through stakeholder outreach, advocacy and awareness-raising and sets up a national EIF structure. This phase is supported by EIF pre-DTIS funds (up to US$50,000 for new entrants).
- For the next phase the LDC undertakes a Diagnostic Trade Integration Study (DTIS)
to identify constraints to competitiveness, supply chain weaknesses and sectors of greatest growth and/or export potential. The DTIS includes an Action Matrix – a list of priority reforms – which is validated by national stakeholders and by the Government. A country may request the funding of a DTIS update (and update of the Action Matrix) instead of a full DTIS where a DTIS has already been carried out and an update is sufficient. This phase is supported by EIF DTIS funds (up to US$400,000 for a full DTIS; DTIS updates up to US$ 200,000 to be approved by the EIF Executive Director; requests for DTIS updates exceeding US$200,000 to be approved by the EIF Board).
- The implementation phase which follows supports the integration of trade priorities into national development strategies and how to identify funding for key priorities
Support can also be used to help coordinate the delivery of trade-related assistance. This phase is supported by EIF assistance to national implementation arrangements (NIAs) projects and/or through bilateral donor support. Tier 1 NIA projects can be for up to five years. Projects of more than three years will be approved in a phased manner. (Support under Tier 1 NIA project up to US$300,000/year, i.e. up to US$900,000 for the first three years of the project.)
EIF – Tier 2 projects
Building on in-country partnership, outreach and advocacy, the EIF focuses on mainstreaming trade into national development plans, strengthening trade institutions and building capacity needed to roll out coordinated trade and development assistance. The EIF works to support catalyst projects to overcome supply-side constraints to trade and help develop a sustainable for export growth.
- Tier 2 funds Action Matrix priority projects to build up trade related and supply side capacities
This phase is supported by the EIF Trust Fund for priority small-scale projects to build up trade related and supply-side capacities. However, the bulk of the Aid for Trade funding to implement the Action Matrix and the national trade and competitiveness policies and action plans should be sought from bilateral donor support.