DEPARTMENT OF COMMERCE
Through commercial promotion, outreach to the U.S. business community, technical assistance to African governments, and advocacy for U.S. firms competing for projects, the Commerce Department pursues an activist policy to help U.S. firms do business in Africa.
To support these efforts, the department in 1994 created key regional centers in Cote d'Ivoire, Kenya, and South Africa. It also announced this year plans to increase the number of its foreign commercial service officers assigned to Africa.
Commercial relations also are fostered through trade missions, sometimes led by Secretary of Commerce William Daley or other high-level officials, that bring together U.S. and African entrepreneurs. Other business outreach efforts include an annual conference on U.S. trade and investment in Africa and a business information Web site
(
http://infoserv2.ita.doc.gov/afweb.nsf).
The department provides technical assistance to African governments and the private sector on building commercial infrastructure. It has established a Manufacturing Technology Cooperation venture with South Africa's Center for Industrial and Scientific Research. Its National Oceanographic and Atmospheric Administration has a variety of weather, water, commercial fishery, and other programs in Africa aimed at improving crop and fisheries management. Its National Telecommunications and Information Administration has developed programs to increase Africa's Internet connectivity, as well as promote broader use of telemedicine.
EXPORT-IMPORT BANK OF THE UNITED STATES (EX-IM BANK)
The Ex-Im Bank is an independent U.S. government agency that helps finance the overseas sales of U.S. goods and services. It provides guarantees of working capital loans for U.S. exporters and makes loans to foreign purchasers of U.S. goods and services. It also provides credit insurance that protects U.S. exporters against the risks of nonpayment by foreign buyers for political or commercial reasons.
The Ex-Im Bank provided Africa with $49 million in financing in fiscal year 1998. The bank can provide project financing for U.S. firms in 45 sub-Saharan African countries and export financing in 21 of these countries. Some recent activities include the sale of construction equipment to Uganda, of cold storage containers to Ghana, of diagnostic medical equipment to Cote d'Ivoire, and of a Boeing 737-300 aircraft to Kenya.
Information on Ex-Im Bank's Africa programs is on the Internet at: http://www.exim.gov/africa-i/index.html .
OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC)
OPIC is an independent U.S. government agency that provides financing and political risk insurance to U.S. companies investing in developing and transitional countries. It is currently providing about $890 million in support for 50 projects in approximately 20 countries in sub-Saharan Africa. OPIC programs are available in 39 of the 48 sub-Saharan African countries. About 43 percent of OPIC's total exposure in Africa is in financial services, 20 percent in manufacturing, 16 percent in the oil and gas sectors, 14 percent in mining, and the rest in tourism, communications, services, and agriculture.
OPIC currently has four privately managed funds to support investment in Africa. They are the $120 million New Africa Opportunity Fund for southern Africa; the $150 million Modern Africa Fund, focusing on manufacturing, mining, and telecommunications; the $120 million Global Environment Emerging Markets Fund II, investing in sectors related to clean energy and water; and the $300 million Aqua International Partners Fund for equity investments in companies involved in water treatment, bulk supply, and distribution in emerging market countries.
OPIC has participated in four high-level U.S. missions to Africa, and since 1997 has signed 12 new bilateral agreements in sub-Saharan Africa.
TRADE AND DEVELOPMENT AGENCY (TDA)
TDA, a small independent federal agency, has invested nearly $60 million since 1981 in funding feasibility studies, orientation visits for foreign decision-makers, and conferences aimed at promoting U.S. exports to Africa.
The feasibility studies help U.S. firms get in on the "ground floor" of major projects abroad by examining the technical, legal, economic, and financial aspects of a proposed development project. The agency is currently involved in studies in 15 African countries. A complete list of TDA's Africa projects can be found on the Internet at: http://www.tda.gov/region/africa.html.
The orientation visits familiarize foreign decision-makers with U.S.-made products and services, build business relationships, and encourage U.S. companies to export to developing and middle-income countries. In April 1999, TDA brought the ministers and heads of major oil companies from 10 countries in Africa and the Middle East to the United States to meet with petroleum equipment producers. In June, the agency sponsored the visit of 10 representatives of African stock exchanges looking for ways to create more effective exchanges. In July, it brought African government officials to learn more about identification and passport technology.
DEPARTMENT OF ENERGY
On April 1, 1999, Secretary of Energy Bill Richardson announced the department's energy initiative for Africa: development of sustainable energy sources, promotion of clean energy technologies, and private sector investment. Other projects will support capacity-building by providing training and workshops for energy and business personnel. A cornerstone of the initiative will be an energy ministerial in the fall of 1999 on energy infrastructure issues, co-hosted by the departments of Energy and Transportation.
The Energy Department already is working in South Africa and Ghana on solar power for schools and homes, in Uganda on developing geothermal resources, in Botswana on renewable energy sources and power development, and in Senegal on clean energy sources.
DEPARTMENT OF LABOR
The primary focus of the Department of Labor in Africa is on fighting abusive child labor. On March 19, 1999, Secretary of Labor Alexis Herman announced that $7.5 million would be committed to this effort, primarily through grants to the International Labor Organization's International Program on the Elimination of Child Labor (IPEC). These grants include $1.5 million in Kenya, South Africa, Tanzania, Uganda, Zambia, and Zimbabwe to remove children from hazardous work in commerical agriculture and help them stay in school; $1 million to combat the trafficking of children for the purpose of domestic work in Benin, Burkina Faso, Ghana, Mali, Togo, Cameroon, Gabon, Cote d'Ivoire, and Nigeria; $3.7 million to fund the participation of Ghana, South Africa, Uganda, Zambia, and Nigeria in IPEC; and nearly $1.3 million to conduct statistical surveys to document the nature and extent of child labor in Ghana, Nigeria, Uganda, and Zambia.
A second element of the department's Africa policy is to help develop African governments' institutional infrastructure and capacities to deal more effectively with labor issues. For example, the department's Bureau of Labor Statistics is sharing its ideas with the South African government about building its statistical infrastructure. The department also is providing African governments with information about occupational safety and health, anti-discrimination efforts, employment training for young people, and mine safety and health.
DEPARTMENT OF TRANSPORTATION
In 1997, Secretary of Transportation Rodney Slater launched the Transportation Initiative and Partnership With Africa with three key objectives: expanding trade and investment, supporting African economic integration, and fostering development. As part of this initiative, the department, in coordination with various transport administrations, is working to improve the transportation infrastructure in Africa -- air, railway, roads, ports, inland waterways, coastal safety, and security. Specific initiatives include:
The Federal Aviation Administration's implementation of President Clinton's "Safe Skies for Africa Initiative." This progarm is aimed at quadrupling the number of African countries that meet the International Civil Aviation Organization's standards for safety oversight, improving airport security at up to 12 airports in Africa within three years, and improving regional navigation services.
The Maritime Administration's work with Ghana to secure and finance the purchase of two power barges.
The Federal Highway Administration's partnership with South Africa's department of transportation to establish a technology transfer center to select technologies that meet South Africa's specific needs in building and maintaining its roads.
The Federal Railroad Administration's work to arrange on-site advisory teams and technical assistance programs for the southern Africa railway association.
The National Highway Traffic Safety Administration's development of a plan to support low-cost safety measures in African countries to decrease the current high rates of road accident-related injury and fatalities.
The U.S. Coast Guard's assistance to a number of African nations in maritime law enforcement, search and rescue, marine environmental protection, and port safety and security.
Additional information on the department's activities may be obtained on the Internet at: http://ostpxweb.dot.gov/aviation/Africa/afrimain.htm .
U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID)
USAID, working with more than 14 U.S. government agencies, funds a multitude of programs aimed at addressing development challenges that impede trade and investment in Africa. These include:
The Africa Food Security Initiative, which supports national and regional agricultural technology development and food aid, including crop demonstration projects in Uganda, a market information system in Mali, rural enterprises in Mozambique, and related programs in Ethiopia and Malawi.
The Africa Trade and Investment Policy (ATRIP), which provides trade and investment assistance, including export/import regulatory reform in Mozambique, removal of regional export and import tariffs in Mali, and database and marketing development in South Africa.
Education for Development and Democracy, which fosters investment in education, especially for girls, including electricity for primary schools and Internet access in Uganda, and improved core academic and administrative functions, as well as distance education capabilities in the National University of Rwanda.
Great Lakes Justice Initiative, which supports training for legal professionals, police, and justice officials in Rwanda.
Malaria Research and Training Center, which provides ongoing aid for malaria research and control in Mali.
USAID-Africa Country Partnerships, which supports a broad range of programs geared to individual country needs including energy sector assistance, environmental programs, and Internet access for Ghana; training for elected female local government officials in Uganda; AIDS awareness, support for microcredit initiatives, and housing development in South Africa; customs reform, railway development, and regional development for members of the Southern African Development Community; and business development and regulatory reform in Senegal.
U.S. INFORMATION AGENCY (USIA)
The United States Information Agency is an independent foreign affairs agency that will merge with the Department of State on October 1. Its mission is to explain and support U.S. foreign policy to overseas audiences. USIA has offices in some 35 sub-Saharan countries. USIA programs that assist efforts on promoting Africa trade and investment include the following:
USIA's International Visitor Program brings approximately 5,000 people to the United States for three- to four-week visits to meet and confer with professional counterparts and to see firsthand the United States and its institutions. Recently, USIA, working with the Corporate Council on Africa, brought a group of African managers to the United States for business training.
USIA's Information Bureau produces a number of printed and electronic materials on U.S. policy issues affecting the investment climate in Africa. The bureau also sends speaker-specialists abroad to address officials, business persons, students, and nongovernmental organizations on a broad range of economic issues, such as business development, intellectual property rights, transparency, good governance, and liberalization of trade and investment regimes.
USIA funds the translation of books on numerous economic issues, including business management and leadership.
USIA has outreach programs to African countries on contingency planning to counter the economic threat posed by the anticipated year 2000 computer (Y2K) problem.
Economic Perspectives
USIA Electronic Journal, Vol. 4, No. 3 August 1999