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AFRICANDO 2000

Table of contents

PREFACE

ACKNOWLEDGEMENT

RECOMMENDATIONS

SPEAKERS

CONFERENCE REVIEW 

OPENING REMARKS
Rev. Msgr. Franklyn M. Casale
President of St. Thomas University

WELCOME REMARKS
Katherine Harris, Secretary of State

AFRICA, THE HEALING CENTER OF THE WORLD
Edward “Joe” Holland, Ph.D.
Professor of Philosophy
St. Thomas University

TOWARDS AFRICA’S INTEGRATION INTO THE WORLD ECONOMY
Gary Simpkins
Sr. Associate for Africa
International Decision Strategies, Inc.

AFRICA TRADE BILL SYMPOSIUM
Sir James Richard, KBE
Founding President of The Republic of Seychelles

PRIVATIZATION PLANS IN S.A.THE PROGRAM TO ATTRACT INVESTMENT INFRASTRUCTURE
Sheila Camerer, MP
Chairperson NNP Parliamentary & Member
South Africa House of Parliament

TEXTILE INDUSTRY OUTLOOK IN AFRICA
Anthony Carroll, esq.
Managing Director
Manchester Trade Ltd

LUNCHEON SPEAKER (May 17 2000)
His Excellency Mamadou Seck (See conference Review for more detailed discussion)
Ambassador of Senegal

STRATEGIES AND PROBLEMS IN CONTROLLING THE HIV/AIDS EPIDEMIC IN AFRICA
Dr. Gershwin Blyden   (See conference Review for more discussion)
Executive Director
Institute for Democracy in Africa

George Dunlop
Michoacan Export Partners

Warren Buckenham
US Agency for International Development

CREATING NEW MARKETS FOR YOUR PRODUCTS 
James A. Schill  (See conference Review for more discussion)
Exec Int’l Business Dev. & Foreign Service- USAID

Albert T Figuly 
Asst V.P. Comerica Bank, Int’l Trade Finance.

Patricia McCartney
Small Business Administration.

John McCartney
Dir – US Export Asst Center, US dept of Commerce.

Arthur Westneat
USAID

Jodean Robbins Rivero
Customs Brokerage-Miami

JUSTICE AND HUMAN RIGHTS FACTORS AFFECTING THE PROGRESS OF WOMEN IN BUSINESS
Sheila Camerer, MP
Chairperson NNP Parliamentary & Member
South Africa House of Parliament

LUNCHEON KEYNOTE SPEAKER # 1 (May 18 2000)

Hon, Alex Penelas

Mayor of Miami-Dade County

GENERAL DISCUSSION; INFRASTRUCTURE, ENERGY AND DEBT    

Dan Durrent (See Conference Review for more discussion)

President Danhiko International

Ayodele Aderinwale

Director Africa Leadership Forum

The CSSDCA

LINKING DEBT RELIEF TO POVERTY EDUCATION

Prosper A. Youm

International Monetary Fund, African Dept.

DEBT RELIEF ROUNDTABLE 

Dr. Trustingberg, Manager IMF ( See Conference Review for more discussion)

Jerry Henderson, Author & Consultant

NOBCO

Barbara White

Multilateral Development Bank

Arthur Westneat, USAID

Santil Portel

International Finance Corp Investor Office in Africa

LUNCHEON KEYNOTE SPEAKER # 2: (May 18 2000)

His Excellency Sir James R. Mancham

Former President of Seychelles

REGIONAL TRADE AND EXPORT PROCESSING ZONES 

Mrs. Aisha Inok Bakari

Managing Director/Chief Executive of the Nigeria Export

Processing Zones Authority

STEPS IN DEVELOPING AN EXPORT STRATEGY FOR THE UNITED STATES MARKET

Jodean Robbins Rivero (See conference Review for more discussion)

INVESTMENT OPPORTUNITIES IN THE FEDERAL CAPITAL TERRITORY (FCT)

Her Excellency Mrs. Ka’ana I. Bunu

Hon-Minister FCT-Abuja-Nigeria.

LUNCHEON KEYNOTE SPEAKER: (May 19 2000) 

The Role of the Private Sector in Stimulating Education and Technical

Training in Developing a Skilled Work Force U. S. Africa Trade and

Investment Workshop

Dr. Sarah E. Moten

Education for Development and Democracy Initiative, White House

ECONOMIC EMPOWERMENT OF ENTREPRENEUR WOMEN

Ms. Baba-Jidda, Acting

President of the National Nigeria Association of Women

ROUNDTABLE  

“How to Overcome Constraints to let Women Participate as Entrepreneurs and

Business Executives.  ( See conference Review for more discussion)

Marceline White Advocacy for Women and Trade Bill.

Alice Mugwa, Executive Director Gender Information

Yaounde, Cameroon

HOW TO DO INTERNATIONAL BUSINESS  

Bea Celler,   ( An Extract of discussion)

Program Officer, Center for International Private Enterprise

Excellency Mrs. Grace C Ekpenyong

Akwa Ibom State, Nigeria

WORKSHOP ON TRADE AND INVESTMENT 

Her Excellency Mrs. Valentina Dariye

Plateau State, Nigeria

ACRONYMS

PICTURES OF THE GALA, SPEAKERS, AND EXHIBITORS

Published by the Institute for Democracy in Africa, St Thomas University, 16400 N.W. 32^nd Avenue, Miami, FL. 33054.

Copyright ã 2001 by Foundation for Democracy in Africa.

All rights reserved.  No part of this publication may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First printing in April 2001.

The findings interpretation and conclusions expressed in this publication are strictly those of the authors and should not be attributed in any manner to the Foundation For Democracy in Africa, to its affiliated organizations, or to the members of its Board of Directors or the organizations they represent.

PREFACE

AfrICANDO 2000, the third US-Africa trade and investment symposium sponsored by the Foundation for Democracy in Africa (FDA), was a celebration of Africa's political and economic gains in the effort to integrate the economies of the 54 African countries into the mainstream of the global economy. This symposium took place on the campus of St Thomas University in Miami, Florida, the institution that houses the think tank arm of FDA -- the Institute for Democracy in Africa (IDA). The IDA is poised to play an important role in this new millennium in helping to define and solve Africa's political, economic, social, and technological and infrastructure problems.

During AfriCANDO, on May 18, 2000, President Bill Clinton signed to law the long awaited African Growth and Opportunity Act (AGOA) in the Rose Garden of the White House, demonstrating to the whole world America's commitment to be an important part of helping Africa to address all of its economic problems by creating a strong and indigenous private sector. This private sector must be ready and able to provide the talent and discipline necessary to re-orient the export policy of most African countries from raw commodities to finished products – thus creating badly needed good paying jobs, infrastructure development, a tax revenue base, and ingenuity critical to achieving the Africa renaissance and uplift of the standard on living of the African people.

While AGOA is a major milestone in US-Africa relations and may help accelerate the integration of the economies of the African nations into the mainstream of the global economy, it is only the first step in the right direction and one that needs to be strengthened and worked on tirelessly for its objectives to be achieved on both sides on the Atlantic Ocean. On the U.S. side, we need to open the door to Africans in the areas of education, technology transfer, financing, joint ventures, research and development, and cultural exchanges. We need to adopt policies that will allow public and private U.S. institutions, civil society, and individual citizens to see Africa as a viable and necessary partner for continued American prosperity. On the African side, rule of law, transparency, good governance, trade and investment policies that guarantee the safety of bona fide traders and investors, and human rights of both citizens and foreigners all must be protected without compromising effective law enforcement and security issues. Moreover, the necessary infrastructure that will allow for the development of a strong industrial base must be put in place.

No effort should be spared in addressing the suffering and pain of the infected and affected victims of the deadly HIV/AIDS pandemic worldwide, the attitude of African governments in dealing with the greatest threat today to humanity must be an important yard stick in measuring how responsible and responsive they are to their citizens. The international community must demand from all African governments – rich or poor – as a show of good faith in addressing this crisis. Resources must be brought to the table by all governments to address the needs of the weak and helpless, while more will be demanded from the rich. All must get involved we need to come to the table with resources to solve this important human problem.

Africa is the next frontier. The future looks promising and abundantly prosperous for Africa. Democratic institutions are taking root across the continent. African nations are finally shaking-off the last vestiges of Cold War era devastation. However, without a strong and viable African private sector – the engine that drives economic growth – there will be no creation of jobs and wealth that will spur African prosperity and sustain its democracies.

Let me take his opportunity to again congratulate our AfriCANDO 2000 honored men and women of grace and vision who worked relentless to help promote legislation in the U.S. Congress that favors the development of Africa. Retiring Florida Senator Connie Mack, a good friend of the Foundation for Democracy in Africa from its inception and one who worked very hard to support the spread of freedom, good governance, and democracy in Africa. My friend and colleague Anthony Okonmah introduced me to Senator Mack in 1994. From that first introduction, Senator Mack became a mentor and a loyal supporter of our cause. Few inside or outside Washington will associate Senator Mack with Africa, but the FDA’s successes and achievements are as a direct result of his support and encouragement. We wish Senator Mack and his wife God’s blessing in their future endeavors.

Senator Mack and Florida Senator Bob Graham, also a strong supporter of AGOA, were both honored with the FDA Medal of Glory, our highest award. Congressman Alcee Hastings and Congresswoman Illeana Ros Lehtinen – both of Florida – also were recognized and honored for their support of AGOA.

A great son of Africa from Ghana, Dr. George Ayitteh, Professor of Economics at American University and author of several books that include Indigenous African Institutions and African in Chaos was recognized for his contribution in creating awareness in the United States about the sorry situation in Africa during the Cold War. Ayitteh, Founder and President of the Free Africa Foundation, has made a significant contribution in the effort to bring down the wall of socialism and dictatorship in Africa and is well respected within the intellectual community of free market economics.

Our gratitude further is extended to our sponsors and supporters: Monsignor D. Cassale, President of Saint Thomas University’s staff and faculty; President Sir James Mancham, former President of Seychelles; Catherine Harris, Florida Secretary of State; Miami-Dade-County Mayor Alex Penelas; Miami-Dade County Commissioner Dennis Moss, all the Nigeria Association of Women Entrepreneurs participants, and Dr. Siegfried Marks and Dorrit Marks. We thank you all for making AfrICANDO 2000 a success.

We look forward to welcoming you to the Port of Miami from May 2-5 to AfrICANDO 2001, our 4th annual US-Africa Trade and Investment Symposium and Expo.

God bless you, God bless America, and God bless Africa.

Fred O. Oladeinde

President

ACKNOWLEDGEMENTS

The foundation for democracy in Africa wishes to thank the following organizations and individuals for their financial support, in kind contributions received because without them this event would not have been possible. We would like to give thank to the government of Miami Dade County and other friends of Africa namely Mr. Barry E. Johnson of AT&T, Ms. Michelle Jackson of American Airline, Mr. Phil Trucks JR and Mr. Richard Livingston of Plumbers Local Union Industry Advancement Program, Fannie Mae, Chilton Harper of city of Miami, Miami To Go, Oceanic Steamship Company, Pro Player Stadium, Orange Bowl Committee, City of Hialeah Gardens, Duhaney Pontiac- Buick – GMC, Gregg L. Mason Funeral Homes, Hughes, Habbard and Reed LLP.

Special Thanks to the Seaport of Miami Director Charles Townseed, Assistant Director Khalid Sallahuddin, the staffs Ms Drew Mckinney, Angella Simons, Cassandra Gainey, Chonita Williams, Angie P., LaPrinycsess Azatta Bess, Oregena Ramiogan, Mufutan Folorunsho and Shikyma Ciare. Thanks are also extended to the Miami Dade Aviation Department for extending a VIP treatment to the speakers and delegates that were received at the airport and we thank you also for the signages provided to the conference sites. Special thanks to director Gary Dallapa, assistant director Amaury Zuriarraim and the staffs - namely Irving Fourcard, Ana Sotorrio, Mark Anderson, Dr. Ezekiel Orji, Micheal E. Matthews. Special thanks to Mario Martinez, Felix Maristany, Rogelio Gonzalez, and Lorem Lee.

Thanks to the Miami Dade Transit department, Danny Alvarez and Patrice Rosemond for all the advertisement and transportation needs provided us. We would also like to extend our appreciations to The Greater Miami host Committee, Cornelia “Corky” Dozier for providing the limousines for the VIPs, and William D. Talbert, III-Miami Conventions and Visitors bureau. Also to the Miami Dade Parks and Recreation, Sandrell Rivers for providing equipments and cultural entertainment for the Gala night. To the ITD group, Jennifer Ritchey and Roberto Balvez for providing us with the computers and radios.

The following individuals assisted in the planning effort and in the development of the agenda for the AFRICANDO 2000 workshop.  Mr. Siegfried Mark is the President of Sigmar International, a Miami based consulting firm, with many years of work experience on a wide range of projects for the USAID, World Bank, universities and the private sector.  He served as team leader on many projects relating to trade and investment in developing countries, including trade policy reform, investment incentive programs, regional free trade agreement issues, legal and regulatory reform, privatization of infrastructure sectors and oil sector deregulation.  Thanks to DKM Associates, a Miami based consulting firm specializes on planning symposium and events.  DKM extensive experience in providing International Consulting in countries which include Central Asia, Eastern Europe, Latin America and Africa on social economic and political issues such as democratic institution building, developing civic participation, especially among women groups and increasing government/citizen responsiveness.  Ms Marks contribution to AFRICANDO 2000 was significant and highly appreciated.

Professor Tometro Hopkins of the college of Arts and Science, Florida International University edited a portion of this document.  We would like to thank the students and staff of the Institute, Andre Valdes, Daniel Kouame, Sheila Edmund, and Stephen Opoku Adu; Graduate student with the Institute from Ghana. Special thanks to Monsignor Franklyn M. Casale and all the professors who helped make this possible through their time and assistance.  Dr Fred Holman, Dr. Craig Reese, Patricia Murry, Dr. Robin Cox, Professor Raul Carrillo and Dr. Hilroy Thomas for their support and assistance in putting this document together.  We would also like to thank Mr. Wolfgang Riesterer for the great audio-video services that he provided us with.  More importantly, our greatest thank goes to Rev Father Blackwell for a very thoughtful opening prayer for Africando 2000 success.

RECOMMENDATIONS PRESENTED AT THE PLENARY SESSIONS

The Third AfrICANDO session convened in Miami, Florida, May 16 – 19, 2000, under the theme: “Defining the Criteria for Africa’s Participation in Transnational Economic Growth”. AfrICANDO 2000 coincided with the signing into law, The Africa Growth and Opportunity Act (AGOA), by President Clinton on May 18, 2000. This law, among other things, will open U.S. markets to goods and services from Africa, encourage U.S. private sector to partner with Africa’s private sector to revamp and build existing and new infrastructure, build the human capacity necessary for the nations to use their comparative economic advantages to create market niches in the global market, thereby creating jobs, and providing the necessary social amenities to improve the standards of living for the average African.

The following are the recommendations made at the Plenary Roundtable sessions

1.      Presentations and General Panels

2.      Bring creativity of Africans to the mainstream democratization processes and policy

3.      Formulation, through the development of transparency in governance and establishment of the rule of law.

4.      Basic human rights must be guaranteed.

5.      Protection of children, their health, their education, and their enjoyment of childhood must be assured now.

6.      Activities, such as FDA’s AFRICANDO, can educate all Americans about Africa. Outputs from conferences such as AFRICANDO should be disseminated to institutions, which impact policy making about Africa.

7.      The wisdom of Ancient Africa is needed to shape the electronic age, especially among the global youth, to inform people about commonalities and to develop a healing trade not only in material goods but also in spiritual values.

8.      Increase dialogue between Africa and the U.S. at governmental, business, and community levels.

9.      Remove state control of our economies and encourage private sector activity so that free market development can increase.

10.  Africa should develop a business constituency in the U.S. to establish frameworks to remove fears, show opportunities, to encourage U.S. business activity in Africa and remove structural constraints on capital flows.

11.  Africa must continue to nurture its traditions that have created “islands of excellence”.

12.  Africa should look for models in specifics policies, practices, and reforms such as undertaken in Latin America, Southeast Asia, Ireland, etc.

13.  Forums such as AFRICANDO should develop directories of human, technical, and fiscal resources to facilitate expansion of economic growth throughout the continent.

14.  Africa leaders should establish on-going dialogue with policy makers in the U.S.

15.  African should develop transparent and stable business and investment codes that will create diversification in all economic sectors.

16.  Strengthen sub-regional trade and economic relations and foster local African capital mobilization.

17.  U.S. government employees and representatives of NGOs, operating in Africa should be taught the cultural history, traditions and environment, prior to overseas assignment and placement.

18.  WTO, and international organizations that shape global trading policy should expand outreach to and participation of Africans.

19.  HIV/AIDS was recognized as an important human tragedy that commands serious attention and action. It’s impact on the economy and continental security is severe: Africa must prevent its next citizen from being infected; develop education and awareness programs; prevent mother-to-child transmission; encourage debate at the individual, community, national, and regional levels.

20.  The international community should continue and expand its efforts to address the HIV/AIDS pandemics in Africa. Particular attention by the international community must be given to accelerating access to current drugs.

21.  Research into indigenous knowledge and health care systems must be given greater attention and fiscal support.

22.  Recognize women’s central role in trade and the distribution of foodstuffs in Africa.

23.  Africans should support actions, which stimulate the level of women’s participation in politics, business, knowledge, and information flow to facilitate value addition and presence in global trade.

24.  Facilitate improved access to credit for women.

25.  Provide infrastructure in the areas of communication, education, and knowledge about securities and exchange paradigms of the global economy.

26.  Development assistance outreach must be specifically tailored to the needs of women.

27.  Women must become better informed about international trade agreements. African women need information about global markets, particularly the U.S. market.

28.  Debt servicing is a major burden on the African economy. There should be a better link between debt relief and social development and poverty reduction agenda that includes the full presence of social, political, civil society, and religious bodies representatives.

29.  The eligibility of countries to the HIPC initiative must be broadened.

30.  Increase markets for African products through a more responsible lending policy and practice by the international community.

31.  Sustained economic development, improved rural agriculture, free universal education, primary health care delivery, safe motherhood and a reduction in child mortality should be outcomes of debt cancellation.

32.  International finance and capital framework must replace the current system that has failed to provide too many Africans with a sense of personal security.

33.  Africa must utilize its natural resources and energy resources within a framework that protects human health and the environment.

Energy development and infrastructure development should result in improved living conditions for all sectors of African society, without negatively impacting the environment. Respect for the cultural, physical, spiritual and natural environment is an intrinsic African tradition. It is to be respected and used to guide the creation of democracy and economic development in Africa.

LIST OF SPEAKERS AND DISCUSSANTS

CONFERENCE REVIEW

AfrICANDO 2000

The 3^rd Annual U.S.-Africa Trade and Investment Conference was opened with an evening of “ get acquainted reception”. The welcome remarks was offered by Rev. Msgr. Franklyn M. Casale, President of St. Thomas University, who introduced the Florida Secretary of State, Katherine Harris.

The Conference was declared officially opened to the general public by Secretary Harris, who welcomed, on behalf of the Governor and the people of Florida, all the heads of state, international dignitaries, U.S. government officials, distinguished guests, Members of Parliaments, ambassadors, wives of governors, State Cabinet members and local commissioners.

The Secretary expressed the timelines of the Conference coinciding with the signing of the AGOA Bill by the President of the United States.  She further emphasized the importance of getting Florida involved with international trade with Africa. With the conference declared opened, the exhibitors and all the registered delegates were further welcomed by the President of the Foundation for Democracy in Africa, Mr. Fred Oladeinde, who spoke about stimulating trade and investment with Africa.  Mr. Oladeinde also welcomed Nigeria into the fold of democratic nations of Africa. He spoke about the political changes going on in Africa with Sierra Leone & Niger Republic having a setback, and Congo putting pressure on the elders to bring peace.

According to Mr. Oladeinde, there is a need to move the economic agenda for Africa forward.  The private sector needs to participate in bringing progress to Africa, however the major impediment to economic growth in Africa will be HIV-AIDS.  He welcomed the founding President of Seychelles-Sir James Mancham.

The Chairman of the Board of the FDA, Mr. Sonny Wright following the President’s speech, gave a brief   history and the mission of the Foundation for Democracy in Africa.  He used the opportunity to thank all the supporters of the FDA and its activities over the years, especially the legislators in Washington DC: Connie Mack and Bob Graham in the Senate, and Ileana Ros-Lehtinen, Carrie Meek, Alcee Hastings, Clay Shaw of the House of Representatives, the Mayor of Miami-Dade County, Alex Penelas, our Commissioners namely Moss, Ferguson, Rolle, Carey, Souto, Margolis, Barreiro, Reboredo, Morales, Serenson, Seijas-Millan, and Diaz de la Portilla.  The Chairman’s speech was followed by a brief introduction of the next speaker, the Honorable Commissioner Dennis Moss. Commissioner Moss vividly stressed the fact that “Africa is very important to Miami Dade County and that, it was through Conferences like this that he became educated about Africa”.  He declared that Miami-Dade will become the gateway to Africa-just as Miami Dade is a national gateway to South America.  This has created tremendous opportunities to the people of Miami-Dade County, he said.  Commissioner Moss presented a check  for twenty-five hundred dollars to the Board of the Foundation for Democracy in Africa towards the sponsorship of the afternoon luncheon.

Before, the plenary session began, Dr. Holland, Professor of Philosophy at St. Thomas   University-Re-defined what Africa has to give the world especially, the Western world. He declared, “Africa is the center of the world, the father and mother of the world, Origin of Humanity. Africa is the geological, biological and cultural center of the world. He emphasized that a healing trade, not only on material goods, but also on great spiritual power, and based on the wisdom of African ancestors will be needed. 

This was followed by the plenary session-“How can the U.S. Africa Private Sector benefit from the new Africa Trade and Investment Bill?” The panelincluded Phillip Micheliniof US Department of Commerce, George Ayittey of Free African Foundation and Paul Manafort of Manafort and Davis law firm. Mr. Gregory Simpkins-Sr. Associate for Africa, International Decisions Strategies, facilitated this session.

“The Bill became law and President Clinton is developing dialogue with African and American business community” announced Michelini. “There is a need to increase government to government dialogue, get Africa debt reduced, increase the level of participation of WTO, stimulate bilateral trade with African countries-Senegal, Congo, and also with regional organizations and promote export developments and commercial services in Africa -i.e.-Cote d’ Ivoire, South Africa, etc.  He explained that AGOA will help to develop dialogue with Africa and that the AGOA proposed agreement with Sub-Saharan Africa will eliminate duties and tariffs on some products such as textiles.  It will also provide measures to export textile to U.S. 

This bill will help develop the private sector, promote commitment and create an enabling environment for Secretary level discussion with African Ministers as a US-Africa economic forum. He stressed that African Ambassadors lobbied for the passage of this bill for the purpose of developing trade between the US and Africa. He also noted the availability of Infrastructure funds administered by OPIC and EXIM bank.

Dr. Ayittey openly called the Bill the “African-Caribbean Bill”, and stated that the purpose of the bill was to open up markets and thus becoming a vehicle to accelerate reform in Africa.  There were many ways the US and Africa could benefit.  This could not happen because of the system of “economic control by state” He stated that some people think that this Bill is a form of re-colonization of Africa, while others think that debt is a big issue and that African countries should ask for debt relief. Dr. Ayittey cited four examples of how colonization facilitated in the rejection of capitalism and encouraged the adoption of socialism in Africa. The problem is how to remove the state controlled economy and how to allow the private sector to run the economy. He cited the World Bank study in 1994 that involved structural adjustment reform and the economic reform (World Bank and USAID) that failed in six small countries. The new approach will be “trade” not Aid” as, declared by Crane and McDermott.

Mr. Manafort made the following critical observation:

·        That American Businesses are timid to move beyond their borders.

·        The AGOA Bill is a symbolic piece of legislation that is intended to link. Africa in a way that US is linked to Mexico and Asia and to Europe.

·        It is important to understand that politics motivates the economy, and that the problem with US businesses dealing with Africa is that they are risk-averse to investing in countries with untested ground rules, laws, and regulation.

·        The move towards market economy, elimination of trade barriers, institution of transparency, and the rule of law and democracy will remove fears and show opportunities that will allow US businesses to go into Africa.  “Until this happens, Africa will not attract a large public with capital to invest”, according to Mr. Manafort.  “This is what happened to Latin America in the 70’s”, he declared.  The US government is committed to helping Africa develop her infrastructure and to promote trade. Until the structural constraints are removed, the US businesses will not go to Africa.

The next session was “An African Response” entitled “Adequacy of US/ Africa Trade and Investment Bill”.  What else needs to be done by Africans, by the US Government, and the private sector, and by international financial institutions to stimulate African trade and investment?  Professor Craig Reese facilitated the African Response session. 

He introduced Sir James Mancham, the founding President of the Seychelles, and the Honorable Member of the South African House of Representatives, the Hon. Sheila Camerer.  Both speakers made a very important observation that has relevancy to the trade-related problem in Africa.  They observed that the article in the May issue of the Economy was biased and tainted with prejudice.  There are countries of excellence that one can point to.  For example, South Africa has good infrastructure and investment environment, Hon. Camerer said.  The AGOA Bill asks for free market economy, democracy, transparency, and mechanisms to fight corruption in government, rule of law, all the checks and balances.  All these things are in place in South Africa and some other African countries-yet these countries, fail to attract investment as opposed to South America.”  The US newspapers and other major news media (including the Economist) always write articles about Africa that is not investor-friendly.

LUNCHEON PROGRAM

The luncheon speech was delivered by Ambassador Seck, who was introduced by Dwayne Wynn, Chair of the Mayor’s Task Force on Africa. The Ambassador of Senegal in the US explained the important role the African Diplomats played toward getting the AGOA passed. The following are the extract from the speech entitled “Opportunities in Commercial Trade and Investment in Africa” discusses trade & investment, democracy and HIV-AIDS, as a way to understanding the importance of trade with Africa”.

As part of the involvement with African Diplomats, there was an Economic Committee designed to bring about ideas to help support the Trade Bill. There were many strong supporters of the bill, which included some of our Ministers in Foreign Affairs and Finance, President Clinton, Nelson Mandela, etc.  The Bill is designed to assist trade & investment in Africa. “Since textile is a large market for Africa and only 0.7 % is on the US market, whereas Asia and Europe represent 50 billion dollars in textile”, obviously, we cannot be a threat to the American textile industry.   "And we are looking to raising 1.5% with trade & investment with the Bill".

“Now let us talk about democracy.  The people believe that without democracy or rule of law we cannot have any investors. Democracy is different in many countries.  For example, the British have democracy and a Queen, and so does France.  The principle, however, is the same where there is freedom for everyone, rule of law, the majority rule, etc.  President Wade won over President Diouf and showed a great gesture by going to see former President Diouf ‘s mother to ask for a prayer for Senegal. That alone proved that democracy could be possible.

Last point to discuss is the HIV-AIDS in Africa. Since everyone is talking about HIV-AIDS in Africa, investors are frightened to go there and do business, based only on lack of knowledge. Many investors don’t know that Senegal is closer to JFK Airport than London is from New York.  Because we are an open people for visitors, we exchange people, investor, and all kinds of things.  So, to talk about HIV-AIDS is not only regional, it must be a global matter.

HIV is now under the scrutiny of the National Security Council of the UN.  They determined it to be a security problem, which is understandable since we are neighboring countries. With the amount of technology today, we need our bigger countries to help with this problem.  We have used prevention in Senegal by advising the people (Muslim) that in 10 years they can lose ½ of their children if no precaution is taken. Sure enough, this was successful. Prof. Mook, who is well known worldwide with his team of doctors, found HIV2 that is only spread in West Africa.  He is working with Howard University School of Medicine by exchanging procedures  & information. To finish, I would like to quote President Clinton on hi visit to Africa: “perhaps the worse sin that has been committed towards Africa was neglect and ignorance…Africa needs the world, but more than ever the world equally needs Africa”.

President James Mancham congratulated Ambassador Seck for his brilliant keynote address.  He then focused his intervention on the issue of war and investment in some parts of Africa.  He stressed the urgency of addressing the issue, in-order to create enabling environment for economic progress.  He talked about preferential tariff due to previous colonial attachment with countries such as France. He used the example of sugar that has preferential tariff for Reunion Island, compared to Madagascar and Mauritania. “Reunion is French and part of the European Union Common Market”.

President Mancham’s speech was followed by a presentation from the Nigerian Association of Women Entrepreneurs (NAWE) made by Ms. Baba Jidda.  Acting President of NAWE. She discussed the economic empowerment of entrepreneurial women in Africa. The following excerpts from her speech- entitled; Economic Empowerment of Entrepreneurial Women in Africa.  Our mandate is an empowerment of women entrepreneurs in many parts of Africa with the ability for international trade, she declared. There are almost 17% of micro-businesses that are catered by women in the fields of food processing, arts and craft, and textile. What the Economic Commissioner wants to see is how can improvement in this area help the inter-regional trade to develop this market area, in-order to help women entrepreneurs?

One of our objectives within the association (office in Abuja, and we are working currently on setting up more offices) is to serve principally as the Center for Entrepreneur- Women, promoting business by organizing fairs and seminars. These will help to provide proper training and marketable skills.  This Association works as an exposure and funding for businesses and training for women empowerment.  For example, many of the Nigerian business- women who are exhibiting today, received the information from the association regarding the AfriCANDO conference and trade exhibition.

In conclusion, we are particularly anticipating the passage of the African Trade Bill because many of the businesswomen in Nigeria deal in textile. The textile business generates about 70% of the exhibitors we have here today at AfrICANDO, and these textiles are loved by many Americans and Europeans because of their color and 100% cotton texture. So, to follow up, this Bill will give us a window of opportunity to export our textile to the US that can promote prosperity for Africans.  We have the businesses available to trade and invest with our American counterparts, which for us will provide employment, prosperity, and peace.

ROUND TABLE PANEL

The Trade Roundtable Panel entitled “Opportunities and Impediments for trade between the U.S and the African Countries” proposed ways to remove impediments to trade and how to help African businesses access foreign trade data banks and to develop trade potential partners to take advantage of the new US-Africa trade Bill. This panel comprised of Mr. David Rink of Citizen Network on Foreign Affairs (CNFA), Ms. J. Nicole Givens Collinson of Sander, Travis and Rosenberg PA, Gregory Simpkins-Sir. Associate for Africa, International Decisions Strategies, Mr. Malik Chaka - staff - Subcommittee on Africa US house of Rep, Gary Pursell of the World Bank, Amb Seck of the Republic of Senegal, Ms. Matte Sharpless-of USDA, William E Bucknam of MWI Inc. and   Anthony Carol of Manchester Trade Ltd. Each participant expressed their opinions on the opportunities and the impediments for trade in Africa and the U.S. The following are the commentaries from each panel.

1.      Mr. Bucknam introduced himself as a partner with Moving Waters Company and the founder and co-chair of the African Growth & Opportunity Act AGOA Coalition, founded in 1977. He spoke about his company and his experience in Africa since 1972. He suggested the need for applied technology in the area where there are no electricity and clean water, especially the rural area of Africa. He spoke about access to drinking water was created via a plant in Nigeria. In Ghana, water pumps were manufactured for the rural area. The technology used is solar energy based and this was used to move the pumps. He explained the availability of financing from the Eximbank for Africa in amount of $220 million dollars. He suggested that each country in Sub-Saharan Africa needs technology. However, Eximbank presently only covers fourteen countries. Although it is always difficult to finalize Eximbank transactions, he concluded by saying that increasing trade between US and Africa will result job creation in the U.S.

2.      Nicale Bivens Collinson—discussed the regulatory framework of this Bill. The generalized system of preference will allow goods from Africa to come in duty-free. This Bill focused on Caribbean and Africa. She stated that there are potential for exporting African product to the U.S. and that the President has been delegated by the Congress to take action on several issues such as meeting with head of states of Africa. The USTR will be responsible for developing a list of eligible countries in Africa, write up exports for the Congress, monitor progress on the Bill every year and establishing agreements with African countries. That Int’l Trade Commission (ITC) can reverse the eligibility, make determination and report to the President. The ITC also revises petition for products to come in and determine eligibility for imports into the U.S Office of Textile Review. She said that usually, individual groups are encouraged to put their complaint to the Commerce Department to be reviewed within 10-60 days and the U.S. is not following the rule of the WTO, because it is given special benefit to African countries. Organizations [such as International Trade Agency (ITA)] are always very involved. They organize missions to Africa and monitor imports. Both the Customs and Treasury departments will be involved in the implementation of the regulation. They will provide training to African countries in order to prevent certain bad actions. Traditional manufacturing countries can ship their goods from quota and duty free African Countries. She also stressed that exporter caught in the transshipment activity will be banned for 5 years and black listed. Visiting African Countries four times a year will allow visits to the factories possible in-order to see if they are in compliance with the provision of the Bill.

3.      Anthony Carol expressed the view that the textile sector is a very small portion of the U.S. export from Africa (About 6% is U.S. import in textile). The fabrics, about 85%, imported are in the form of apparel-ready to wear. Textiles are mostly from Nigeria, Kenya, and Mauritius. However, Mauritius is the only “red star” in the textile business. Madagascar produces sweaters. Trend of African textile in the last decade is in denial. “With redeemed domestic barriers, some due to WTO considerations, significant loss of employment in textile industry occurred in Africa” For example, Kenya lost jobs when quotas were imposed on her. About the AGOA Bill, Carol outlined some of the items excluded in the Bill such as leather goods—footwear and mill products, (towels and shoes). However, the Bill has apparel made from U.S. fabrics with regards to apparel made from African fabrics. Anything above 3% will have an impact on the job creation. Apparel produced from fibers not produced or available in the U.S. (silk, corduroy, cashmere, merino wool) use will lead to investment of plants and also transshipment trade.

4.      Mr. David Rink of Citizen Network of Foreign Affairs (CNFA) stated that a public –private sector partnership in transitional economies normally develop up and downstream service models. "Training real entrepreneurs to enter into rural business is important” he said. Presently, commercialization is important to rural income. The firms depend on stable legal economy and it is important to work with farmers association in order to accomplish this task, he stressed.

5.      Mr. Gregory Simpkins voiced that the Bill is important to the U.S. It is both symbolic and very important to the U.S, he said. It has an overwhelming bi-partisan relationship and support in Africa.” When President Clinton signs the Bill tomorrow, the message will be that Africa does matter to the U.S”. Africa was disadvantaged in any trading relation. “ The technical assistance in the Bill is very key, according to Mr. Simpkins.As a result two funds were created; –one for infrastructure and the other for enterprise development. These were implemented before the Bill was signed. This infrastructure and enterprise development funds are very important. This Bill encourages dialogue between private sectors in both countries. The Bill contains language on intellectual property, which is controversial. AIDS drugs are not accessible in Africa and it is a major problem. Mr. Simpkins stated that the portion of the bill that addressed the forum is very important. The President, Bill Clinton, will have to organize the first meeting before he leaves office. It is highly symbolic to say that Africa is important. This bill calls for NGO’s meeting, because civil societies need to be involved.

6.      Mr. Gary Pursell of the World Bank traced the involvement of the World Bank in Africa. Some of the results are not encouraging. For thirty years between 1961-1996, the share of Africa trade has decreased significantly. Per capita production in Africa has fallen 13% compared to 30% increase in Asia and 29% increase in Latin America. Its share of the world trade has declined. The lost agricultural protectionism in the developing countries has three times bigger impact on the African trade. With this bill, we now have agreement in agriculture.

7.      Ms. Matte Sharpless, of USDA-Agricultural Trade, Food Security, and New Technologies in Africa stated that agricultural trade with Africa is over 1 billion dollars. U.S. agriculture is exported to Africa; however, Africa exports more to the U.S. than the U.S. to Africa. This results in a trade deficit with Africa. There are emphases on fostering a 2-way trade. Partnership with Africa is included and falls under the Presidential Initiative. The Department of Agriculture is involved in various sectors of the agricultural related programs. For the past 4 years, a $300 million export credit guarantee program has been in existence. It can be used for facility development—i.e. renovation of port facility. This Department is very active in the U.S.-Nigeria Joint Committee. In Ghana they are helping to establish rural area development.

7.USDA also works closely with specific organizations. Workshops are carried out in order to train Africans World Trade Organization (WTO) and this involved bringing African executives to be trained in order to understand trade and investment agreements. A conference in Technology, to discuss Biotech future in agriculture will be held in Africa in the near future. Presently, African food security efforts are lead by USAID, where nutrition, women and children are the primary focus of attention.

8.      Mr. Malik Chaka emphasized the relationship of politics to economy “Do not separate the economy from politics he deduced “He identified two kinds of people—Afro-pessimist and the Afro-optimist”. He stated that the world is moving towards market economics and that one party model states are gone. “Today, we see in Africa multipartisan, multipress, private sector development and privatization”. Today, there is a vibrant, privately owned media. Trend is moving in the direction of the marketplace”. There are tremendous positive changes, but there are impediments too. It is necessary to have investment codes in Africa and good enabling environment” he continued. Those who do not have that will suffer. The new trade law is the opening paragraph in a new story to be written. Growth and development selective to capital and foreign investment will go to those countries that move towards market economy. Development of regional organizations such as SADEC, ECOWAS are extremely important to the extent that goods and people can move to these regions. It appears that if you have oil, you will be looked at. As for Nigeria, there is a lot of Nigerian capital outside Nigeria, and this capital belong to Nigerian people. This doesn’t encourage investors from the outside to invest in Nigeria. Africa has a large constituency in the US now. The AGOA is just a starting point; its like writing a book, the first paragraph is written and it will not take five years now to move to write the first chapter. “We in Dade County need to take care of business”.

9.      Amb Seck cited Senegal as an example of Africa, a country that achieved a 5% growth from the negative growth performance. The use of distance learning are encouraged and the management of micro-credit development. He reported that there are criteria to be included in the ExIm bank program and that progress in building constituency for Africa in the US. Is being made everyday. There has to be the plan of action, not for Africa but with Africa, he concluded.

DAY TWO-MAY 18 2000

GENERAL PLENARY SESSION

The Plenary session—“Strategies and Problem in Controlling the HIV/AIDS epidemic in Africa”. The panel includes Dr. Blyden—the Executive Director of the Institute for Democracy in Africa; Mr. George Dunlop of Michoacon Export Partners and Mr. Warren Buckenham—USAID. This session was facilitated by Anthony Okonmah—the executive director of the Foundation for Democracy in Africa. Mr. Okonmah gave the statistical overview of the HIV-AIDS epidemic and the impact   on security, democracy, social and economic future of Africa.

He introduced Dr. Blyden who further stated that the problem of HIV- AIDS in Africa has gotten an increasing amount of attention. He stressed that instead of being emotionally involved, the Foundation for Democracy in Africa and the Institute for Democracy in Africa decided to see what can be done, given limited resources and looking at the long term and short term vitality. We have to prevent the next individual from being infected. We want to emphasize prevention. As life begins with conception, we want to begin with where, life began-the pregnant women. We would like to educate pregnant women on how to avoid being infected with HIV.  If the pregnant women is infected, there is technology now, in the form of drugs, and also an alternatives to breast feeding, that are available to be used to reduce the chances of the baby been infected. We are living in an orphan generation and we need to address this problem too. The stigmatization phenomenon has to be addressed too. We have to educate the population that is not infected, in order to accommodate those who are---he concluded. Mr. Warren Buckenham explained the “Life” initiative—a program put together to address the problem of HIV. “Life” stands for leadership and investment, fighting epidemic. This program provides $65,000,000 for prevention programs and caring for children affected by Aids.

The mission in Africa is now expanding its research. It is now working with other participants such as Dept. of Defense, Dept of Treasury, Dept of Commerce and religious leaders. Using our government leverage to work along with UN Agencies. Just as agriculture, education, infrastructure and trade are talked about, you need to talk about AIDS in order to preserve a continent like Africa, he said. He compared African and American experience with HIV-AIDS. In the US, Aids is a serious problem,0% prevalence rate. It is not yet close to 1/2 %. At 5% prevalence rate the entire population will be infected. Texas. At 10%, all ages including adults, elderly, child and infants-the entire population of the US will be infected with AIDS. No one would survive AIDS. In Africa, Ghana has a 5% prevalence rate, Cote’d’Ivoire is 10%, Zimbabwe is 25% and in Botswana, the prevalence rate is 30%. You can imagine the magnitude of this problem in Africa. For example, in Swaziland, about three hundred each year are trained. However, three teachers are dying everyday and there is less capacity to replace the dying teachers and so, how can we sustain a society without education. He stressed that the economic impact of 10% prevalence rate is high but will be equally devastating and by 2010 it will surpass the gross domestic product of sub-Saharan Africa and this will be reduced to 20% as a result of the direct consequences of HIV. The impact of AIDS on women in Africa is also staggering. In Botswana in 1990,women had 7 to 10 years of life expectancy over men. By 2010 that will change to about 60% that is 20 years. Women in Africa suffer tremendously from the impact of Aids.

George Dunlop expressed the need for awareness when talking about HIV- AIDS and spoke about efforts exerted towards policy changes by UNICEF on breast-feeding, particularly that HIV positive mothers should avoid breast-feeding their babies. He also spoke about the child Rescue Kit that comprises of the water purification—fitter technology and method of sanitation of the feeding kits (which was made-up of filtration, fitted baby bottle kit, baby feeding bottle, sanitary wipes, formula, and a tote bag). Mr. Dunlop concluded by stating that the need to implement this program couldn’t be over emphasized.

This session was followed by three roundtable discussions entitled “Private Investment, infrastructure and Energy, Debt Reduction and Women in Business”. James A. Schill – Foreign Service - Business outreach (Asia and Africa), Panel members include of James of the World Bank, Arthur Westneat of USAID, Jerry Henderson, NOBOC. Hon. Sheila Camerer, MP, South Africa, Mr. Aderinwade of ALF, Dan Durrent President Danhilco Inc. and Dr Craig Reese of St, Thomas University who also facilitated the first session. The group discussion was focused on legal, regulatory, infrastructure, cultural and other impediments to private investment and strategies to increase investment in Africa.

Cecil Modulpe Fadope—of the African Information Network, facilitated the Woman in Business Panel. Panelist included, Hon. Sheila Camere MP, South African Government; Prof. DZOTSI, University of Benin, Togo; Marcelina White of Washington, DC. Discussions were centered on gender equality and inequality issues. For example, Marcelina White stated that women, on the average worked more hours than their men counterparts in most African countries, because women’s role and responsibility in the society are different. Regarding Trade and World Trade organization, women participation in trade is different. For the AGOA and global trade rules, the microeconomic issues have very real effect on women differently. Trade is known to affect women differently as it relates to opportunities and impediments. For example in agriculture, manufacturing and entrepreneurship—women in general lack access to capital. Some of the trade policies in the African countries allow importation of goods that compete with women made products. Women lack technical skills. She concluded that trade has tremendous potential to benefit women only if the right conditions are allowed to exist for women. Ms. Mugwa also stressed reasons why women have not been included in obtaining capital. One was women had not been traditionally allowed to have access to land, before and after marriage.

The legal framework to allow women to have access to land has to change in order to allow them access to both land and capital resources. Most loan requests require land as collateral or security in order to guarantee the loan. Because women are not allowed to own forestland or agricultural land they cannot participate in the international trade of timbers, coffee, etc. Access to land is very important for women equality. In the world E-trading, E-commerce and E-mail technology, large numbers of the women owned businesses have no access to a website, E-mail or have any training in the new age of digital technology. Most of the telephone lines belong to men. She recommended that networking among women should be encouraged. More information should be made available to women. For example, information on how women should start to invest in information technology, and how they can benefit from that technology.

The South African members of Parliament, Sheila Camerer, talked about South African progressive constitutional law on gender equality. The right of women to land and capital was also addressed. However the customary law and traditional laws have been adequately addressed in the content of property rights of women. The equality program also addressed the promotion of the equality Act. In the public sector 30% of the Members of the Parliament are women, 15% are Cabinet Ministers, an increase prior to 1993. Over 30% of the magistrates are women. In the private sector, gender equality in education, healthcare service, and so on is not the same. Creating a gender friendly environment at the work place remains very important. Company leaders have a role to play in this arena of gender equality. Now, about half of the companies in South Africa have gender equality programs, yet large disparities still exist. For example, in the earned income area of higher management positions, the lack of sexual harassment policy and lack of access to information are serious setbacks to women. The affricative action program and the Employment Policy Act are now in place to help the formation of gender equality program in South Africa. The facilitator Ms. Modupe summarized the panelist contributions to the discussion and relates everything to lack of peaceful and stable environment to do business. “Until peace and order exist, where value of law can be enforced, it will be difficult to achieve gender equality in Africa”, she said.

Conflicts in African countries haven’t to stop. Where the rule of law states that the poor environment does not encourage business. A well functioning government is needed in order to enforce contract laws. Government also needs to provide roads, communication, security exchange protection of private property and so on.

The Luncheon program followed the Women Session.  Hon Mayor Alex Penelas, the Executive Mayor of Miami-Dade County, delivered the Luncheon Keynote Speech –who stressed that - Africando-2000 is about economic empowerment brought on by the facilitation of Sub- Sahara African trade through Miami-Dade County.   The full text of the remarks is found elsewhere in this document.

The Debt Workshop, facilitated by John Afele, followed the session. The panel included Prosper Youm of IMF, Dr. Trustingberg of the World Bank, Jerry Henderson of NOBCO, Barbara White of Multi Lateral Development Bank, Arthur Westneat of USAID and Satyan Patel of Int’l Finance Corp Investment (Africa) WB.   Dr. Trustingberg – thanked the organizers for inviting him to the conference. Debt crises in Africa, particularly in the Highly Indebted Poor Countries (HIPC) have been around for the past 20years. They exist in Middle-income countries like Mexico, Argentina, and Philippines. These countries have exposure to International capital markets and large commercial banks that were all involved in loaning money to these countries. What was happening in the poorest countries was that other debt crises emerged and were largely unnoticed by the International agencies. The main reason why it went unnoticed was that the debts were mostly held by bilateral and multilateral creditors- like the IMF, World Bank, ADB. These are the multilateral institutions and it took a long time to realize that more needed to be done than the peace meal approach, which was adopted in the 1980. What was really happening in those years was that the bilateral creditors, which were organized in, so called Paris Clubs, provided increasingly conventional terms to settle their debt. They were never put in the contest of the sustainable debt situation and therefore, these countries found themselves time and time again back in Paris renegotiating their debt.

Prosper Youm – International Monetary Fund discussed linking Debt Reduction to Poverty Reduction. The IMF has developed a structure for poverty reduction. Under traditional debt relief was bilateral agreements. The international community has decided that this framework will provide lasting development. The HIPC initiative requires civic society in the process. 1) Reduces extreme poverty 2) Universal primary education 3) Gender Equality 4) Infant mortality 5) Maternal mortality 6) reproductive health 7) Environment. These are pledges by the International Community.

The HIPC Initiative comes as a result of the limits of traditional debt relief model. All groups must be involved in the application to receive debt relief. This is then approved or denied by the board of the IMF and World Bank. This requires a working relationship between the banks/creditors with the country. Many of the countries are resource hungry and therefore a preliminary HIPC debt reduction initiative is also available.

Jerry Henderson—NOBCO

 “Transparency, Justice electoral process” you must create an attractive environment in order to attract investors. Investors are driven by profits and comfortable w/free market principles. There must be at least an appearance of stability. There must be necessary systems in place, including education, healthcare & literacy. The rule of law must stand. The judiciary must be independent. The electoral process is the basis of democracy. It is not enough to say that we have democratic elections. We all must play a vigilant role. Respect for free press & dissent must exist. Far too much of Africa is consistently engaged in conflict & chaos. This continues the downward trend.

Satyan Patel – International Finance Corporation (IFC) discussed how IFC promote private sector development. We are 10% of the friends in Africa of the funding in Africa. This is substantial. Africa is looking good for IFC. IFC does 3 things: 1) Invest in Capital projects & training. We emphasize infrastructure. For roads, ports, phones, electricity etc. Africa is ripe for Business and development. IFC target it resources to the following areas: help build African financial sectors through direct investments, technical assistance, advisory services, and greater collaboration with sect oral reform programs of the World Bank. IFC also supports indigenous entrepreneurship by strengthening and focusing on SME financing program and by rehabilitating and expanding physical infrastructure through project financing, privatization advisory services and technical assistance. 

Barbara Ness – Department of Commerce  

Ms Ness described the 5 multinational development banks (MDB) that the U.S. Department of Commerce works with: 1) World Bank, 2) Asian Development Bank, 3) Inter-American Development Bank 4) European Development Bank, and 5) African Development Bank. The African Development Bank ($2 billion) AFDB will lend when other banks will not. 77 members lends throughout Africa. Headquartered in Andijon. It provides services all over Africa, from Egypt to Lesotho. To be eligible the enterprise must be located in

Member states. The company must be majority owned and managed by private sector. The principal goal for the AFDB is to promote economic and social development. The loans are secured based on the vitality of the country. The AFDB just went through a major reorganization. Its purpose was to promote transparency within the business dealings of its clients. This policy adopted in 1996 was to attract promote foreign direct investment and to strengthen private sector finance. Lending was extended to small businesses, based on the level of risk involved and soundness of the business plan. Projects must be environmentally sound and follow the host country’s environmental policies.

 Investment in Infrastructure has 3 parts: 1) financial support 2) consultation of project 3) consultation of legal framework. The African Development Bank is a regional multilateral development bank, engaged in promoting the economic development and social progress of its Regional Member Countries (RMCs) in Africa. The Bank, established in 1964, started functioning in 1966 with its Headquarters in Abidjan, Cote d' lvoire. Its shareholders are the 53 countries in Africa as well as 24 countries in the Americas, Europe, and Asia. The Bank's principal functions are: (i) to make loans and equity investments for the economic and social advancement of the RMC’s; (ii) to provide technical assistance for the preparation and execution of development projects and programs; (iii) to promote investment of public and private capital for development purposes; and (iv) to respond to requests for assistance in coordinating development policies and plans of RMC’s. In its operations, the Bank is also required to give special attention to national and multinational projects and programs, which promote regional integration.

The financial resources of the Bank consist of ordinary capital resources, comprising of subscribed capital, reserves; funds raised through borrowings, and accumulated net income. The Bank's authorized capital amounted to US$23.29 billion at the end of 1996. The ADB's capital is subscribed such that RMC’s hold two-thirds of total subscribed capital, and non-regional members hold one-third. The Bank has borrowed funds for its ordinary operations from the international money and capital markets. The Bank's callable capital backs its borrowings in the capital markets.

The Bank's operations cover the major sectors, with particular emphasis on agriculture, public utilities, transport, industry, the social sectors of health and education, and concerns cutting across sectors, such as poverty reduction, environmental management, gender mainstreaming, and population activities. Most Bank financing is designed to support specific projects. However, the Bank also provides program, sector, and policy-based loans to enhance national economic management. The Bank also finances nonpublic guaranteed private sector operations. The Bank actively pursues co-financing activities with bilateral and multilateral institutions.

The Bank's highest policy-making body is its Board of Governors, which consists of one governor for each member country, and which issues general directives concerning the operational policies of the Bank. Amendments to the Bank's Agreement, the admittance of new members, and capital increases require the approval of the Bank's Governors. With the exception of certain specifically reserved powers, the Board of Governors has delegated its powers to the Board of Directors. In accordance with Article 32 of the Agreement Establishing the Bank, the Board of Directors is responsible for the conduct of the general operations of the Bank. It is composed of 18 Executive Directors who are elected every three years, 12 representing the RMC’s and 6 representing non-regional members. The Board of Dir