Zoellick Sees New Generation of Leaders Rising in Africa

U.S. Trade Representative holds press conference in Nairobi

Nairobi, Kenya -- A new generation of leaders that embraces free trade is now appearing across sub-Saharan Africa says U.S. Trade Representative Robert B. Zoellick, who spoke with reporters February 14 at the end of a one-day visit to Kenya.

"For understandable reasons, there was a focus in the generation that took power right after the colonial era on trying to set up post-colonial countries -- that was a major focus of theirs as was (fighting) apartheid in South Africa. Now you have a new generation picking up on ... the new challenges of Africa," such as the need to embrace free trade so the continent can join the world economic community, Zoellick said.

The new mindset of African leaders, Zoellick told reporters at a late afternoon press conference, gives the United States a "wonderful opportunity to link into that new generation, to gain a sense of how they want to transform their countries and to see how we can help."

Zoellick said he is visiting Kenya, South Africa and Botswana to discuss how partnerships between the United States and African countries can be strengthened and further developed.

Recalling his meeting with President Moi at State House earlier in the day, Zoellick said the Kenyan leader emphasized that terrorism must never be allowed to take root in Kenya or elsewhere in sub-Saharan Africa. Zoellick reminded reporters that both nations have been the victims of terrorism, in reference to the September 11 terrorist attack on the United States and the 1998 terrorist bombing of the U.S. embassy in Nairobi, which not only killed Americans but also claimed the lives of 167 Kenyans and injured more than 5,000 Kenyan citizens.

Moi, according to Zoellick, also talked about the challenge of lifting the living standards of his people in the face of HIV/AIDS, drought and instability in the region. He also, according to Zoellick, talked about the need to work in partnership with the United States to fight terrorism, to implement the changes needed to attract trade and investment and to sustain economic growth and development and enhance regional integration and cooperation.

Following his talks with the Kenyan leader, Zoellick held an interactive discussion with American and Kenyan business executives. Reflecting back on that session, Zoellick said, "Here I have a sense of enthusiasm and the determination (of these business leaders) to improve the business climate. A key point that I think I took away (from the session) was a recognition that the cost of doing business in Kenya must be reduced for Kenya to be competitive."

High business costs include everything from the cost of capital to high production and infrastructure costs, he said. And he said Kenyan businesses should move up the product chain, for example, roasting, packaging and marketing Kenyan coffee, much of which is now shipped out of the country to be processed elsewhere.

Zoellick also co-hosted a meeting with ministers from the Common Market for Eastern and Southern Africa (COMESA) -- which he called "one of the most intriguing and exciting regional groups," in Africa. He hailed COMESA for initiating some novel programs for small and medium sized enterprises, for adopting risk insurance for credit finance, and for establishing a court of justice within COMESA to settle trade disputes between its members.

In addition, Zoellick lunched with President Moi's cabinet, hosted by the Kenyan Minister of Tourism, Trade and Industry, Nicholas K. Biwott.

"Here, there was a strong commitment about Africa and Kenya's role in the World Trade Organization (WTO) and the global economy, the possibilities for U.S. and African cooperation in the WTO," he said, and a frank discussion of factors that have limited Kenya's growth potential, like corruption, rule of law issues, and the high cost of financing.

Zoellick then went on to remind reporters of the five key goals of his trip -- the first visit ever to sub-Saharan Africa by a United States Trade Representative:

-- To strengthen the African Growth and Opportunity Act (AGOA) and America's trading relationship with Africa;

-- To encourage Africa to embrace global trade;

-- To advance the common objectives between Africa and the United States in the new global WTO negotiations launched at Doha;

-- To hear the African perspective on possibly signing new free trade agreements with South Africa and members of the South African Customs Union;

-- To hear more about ways to overcome poverty across Africa.

Following his opening statement to the reporters, Zoellick responded to questions.

Asked if the Kenyan government is committed to addressing the issue of corruption, Zoellick said, "I was struck by ... a recognition of Kenya's self interest in dealing with the corruption problem. ... They recognize the cost" of corruption " and were quite open about talking about how this had affected their positions with international financial institutions such as the International Monetary Fund and the World Bank."

That he said, led to a discussion of how the problem of corruption is one that you do not just legislate away. "It is cultural attitudes, it is education, it is legal systems and a series of dimensions that come together," to eliminate corruption, he said.

While cautioning that one conversation does not produce a result and that only time will tell, he acknowledged that globalization is having an effect on the way people think.

Referring to Kenya's political leadership, he said, "They know they are in an environment where there are pressures to change ... and if they don't Kenya will be left behind."

What is most intriguing now, he said, is that "you can feel the competition within Africa" and that there are other African nations that are now "taking on these issues. They know that it is not only an issue of keeping up with the Chinese or the Latin Americans or others, but is a question of keeping up with other countries within Africa."

Zoellick said his conversations with the Kenyan cabinet were "not defensive" and "not just mouthing slogans" but was done within the framework of "trying to come to grips with what everybody knows is going to be an extremely challenging problem."

Asked if it is possible for a country to take advantage of globalization if its leaders are essentially corrupt, Zoellick reminded a reporter that "China has benefited from globalization and there is still a lot of corruption in China.... What globalization drives one towards is increasing recognition for need of the rule of law, transparency, for the things that an economist would say would lower the risk premium."

Zoellick also quickly cautioned, however, that cleaning up corruption is not something the United States or any nations can do for Africa. That, he said, "has to be the decision of Africans" to take action.

Summing up his cabinet talks, Zoellick said, "I kept emphasizing that the age of dependency is over here. There is an opportunity, there is an openness and willingness to support but it is going to have to come from Africa...."

Zoellick also referred to the generational change that he sees taking place all across Africa.

"I meet a lot of Africans now that sound very different than the Africans of ten years ago," and they see their goal as being different from the post-colonial generation which was focused on forming independent nations and fighting apartheid in South Africa.

People are also now more open to debate issues in public in Africa, he said, citing the pubic debate going on between South Africa and Zimbabwe in regard to Zimbabwe's political situation.

"All of that is to the good," he said, because it is "spurring a debate and people are open about it."

Following his press conference, Ambassador Zoellick toured the Nairobi National Park to examine efforts to conserve the migration patterns of wildlife there, before flying on to South Africa, the second country stop on his three-nation February 12-21 trip, which ends in Botswana.