Conference Review
    Reception
    U.S. Congress Legislative Status and Outlook on H.R. 1432
    Regional Presentations
        Eastern Africa
        Southern Africa
        Western Africa
The Role of Non-Governmental Organizations in Sustaining Democracy
and Economic Development in Africa
Doing Business in Africa
    Miami-Dade County Resources
    Protecting Your Emerging Company
    How to Get Started
The African Media Environment: A Time of Change and Opportunity

The Honorable Alex Penelas, Mayor of Miami-Dade County
Anthony Okonmah, Executive Director, The Foundation for Democracy in Africa
Dr. Kwabena Adjei, Minister of Food & Agriculture, Ghana
H.E. Mary Kanya, Ambassador, Embassy of the Kingdom of Swaziland
Camille Richardson, Advisor for Special Initiatives, U.S. Department of Commerce
Dr. Witney Schneidman, Deputy Assistant Secretary of State-Designate
    for African Affairs, U.S. Department of State
The Honorable Alex Penelas, Mayor, Miami-Dade County
Colin Eglin, Member of Parliament, South Africa
Nuria Fernandez, Deputy Administrator, Federal Transit Administration,
    U.S. Department of Transportation
Gregory Simpkins, Professional Staff Member, U.S. House Sub-committee on Africa
Ayodele Aderinwale, CEO, Africa Leadership Forum
Gaussou Traore, Chairman, RADEV
Cristina Torrens, Program Analyst, U.S. Customs
Abdoulaye Agne, Vice President, US/West African Network
Lucia Quachey, President, Ghana Association of Women Entrepreneurs
Oliver Kramer, Investment Banker, Hudson Sloane & Co., LLC
Adrian Anderson, Executive Director, Diaspora World Cinema
Gregory Simpkins, Professional Staff Member, U.S. House Sub-committee on Africa
Congresswoman Ileana Ros-Lehtinen, U.S. House of Representatives
Congresswoman Carrie P. Meek, U.S. House of Representatives
Congressman E. Clay Shaw, U.S. House of Representatives
Colin Eglin, Member of Parliament, South Africa
David Dinkins, Chairman, Constituency for Africa

The turnout and participation at the symposium was very impressive. This again shows the acceptance of the American people of a "new and improved" Africa that is poised to play a leading role in the global economy in the next millennium.

There is no question that Africa was a victim of "wake turbulence" during the Cold War. The aspiration of Africans to develop their continent during that period were often crushed by the West or the East resulting in the stagnation and/or deterioration of the economy of the countries of Africa.

The symposium was organized to celebrate the end of the Cold War and as a forum to deliberate on how best the countries of Africa can focus their resources to provide the necessary infrastructure and development that will integrate their economies into the mainstream of the global economy, thereby improving the standard of living for the people of Africa. The symposium also served as a vehicle to showcase the "new and improved" Africa to the American business leaders/owners and investors with a view of encouraging them to invest more and trade more with Africa.

Africa is the second largest continent in the world, it is as large as the United States, Europe, and China combined. The continent consists of 53 countries, and almost 800 million people, more than 12% of the world’s population. Africa, therefore, is a significant market that cannot be ignored by US investors and businessowners any longer, if the US expects to remain the leading economy in the world.

In order for this partnership to be beneficial for the African people, investors and entrepreneurs need to develop a long range comprehensive plan that must include, investing in human capacity building that encourages good governance, rule of law, transparency, respect for human rights, respect for the environment, and must adopt high moral and professional code of conduct that will provide for a level playing field for all.

The Africa Growth and Opportunity Act, which passed the US House of Representatives on March 11, 1998, and is pending in the US Senate, may serve as a catalyst to promote US-Africa trade and investment, depending on how it emerges from the Senate. This bill was a focus of discussion during the symposium, and is strongly supported by FDA, because it opens the US market for products and services from the countries of Africa, and encourages human capacity building, good governance, rule of law, transparency, respect for human rights and the environment in Africa.

Barely four weeks after the US-Africa trade and investment symposium in Miami Florida, President Clinton, with a delegation of about 200 left on March 22, 1998 for the first extended trip to Africa by a United States President, with stops in Ghana, Uganda, Rwanda, South Africa, Botswana, and Senegal. The primary goal of the Presidential trip was "to help Americans rethink Africa, and Africans rethink America." The President returned on April 2, 1998, after a very successful mission to Africa, we hope more determined than ever to use the power of the Executive Branch to help promote stronger partnerships between Americans and Africans, and provide the leadership to see the Africa Growth and Opportunity Act through the Senate, before the summer recess.

The debt burden of African countries continues to be an impediment to achieving sustainable economic growth and also a burden on efforts to improve the standard of living. Even some countries that have gone through economic reform and political reform are unable to provide basic needs for their citizens because of the high cost of debt servicing. The debt burden needs to be dealt with immediately and we hope that President Clinton will provide the leadership in the next G8 summit to come up with a solution that will enhance the improvement of the standard of living for the average African.

The symposium would not have been possible without the support and encouragement of many people and institutions. We thank Mayor Alex Penelas of Miami-Dade County, Florida, the Miami-Dade County Board of Commissioners, Congresswoman Ileana Ros-Lehtinen, Congresswoman Carrie Meek, Congressman E. Clay Shaw and Senator Connie Mack.

This report is a testimony that there is a need for the role that FDA plays in helping to promote democracy and sustainable economic growth in Africa. With your support we will continue to help cultivate the pathway for peace and economic prosperity in Africa.

The FDA, in pursuit of its objectives, established the Institute for Democracy in Africa (IDA) The institute is responsible for the creation of innovative democratic approaches to solving the African socio-political and economic problems. This institute serves as the "think tank" arm of the foundation, responsible for conducting training, research and educating both the private and the public sector on various developments in Africa.

Sub-Saharan African nations are entering a renaissance period. The forty-eight countries of the region are beginning to transition out of the Cold War to an era of economic and political liberalization. A growing entrepreneurial class is gaining access to the sources of production and looking to overseas markets and investment partners. With added prosperity, the 748 million people in the region are becoming a very attractive consumer base for all potential exporters. The United States must be integrally involved in this process both for national strategic interests and for the mutual benefit of the U.S. and African private sectors.

The U.S. Congress and the Clinton Administration have acted on these developments and put forward their respective plans. Among other things, the Administration has newly created the position of Assistant U.S. Trade Representative for Africa to focus on the growing trade prospects with Africa and has given this position to Ms. Rosa Whittaker. In the U.S. Congress, legislation has been introduced to move U.S.-Africa relations from "aid to trade" through the African Growth and Opportunity Act -- H.R. 1432 in the House and S.778 in the Senate.

Conference Review

The Inaugural International Symposium on Democracy, Trade, Investment and Economic Development in Africa, the U.S.-Africa Trade and Investment Conference: "Africa, the Next Frontier," began with a Welcome Reception at the Institute for Democracy in Africa which is housed on the campus of St. Thomas University.

Anthony D. Okonmah, Executive Director, the Foundation for Democracy in Africa (FDA), on behalf of the FDA and the Institute for Democracy in Africa (IDA), welcomed guests to this historic event that would take place over the next three (3) days. Mr. Okonmah gave special thanks to the Honorable Alex Penelas, Mayor Miami-Dade County, Commissioner Dennis C. Moss and the Board of Commissioners, Miami-Dade County without whose support the event would not have taken place. He thanked Reverend Monsignor Franklyn M. Casale, President of St. Thomas University and Ken English, Host/Producer of Trading Places for their support in making the US-Africa Trade and Investment Conference a reality. Thanks also went out to our international visitors, members of the Mayor’s staff, Joseph de Baptists and Alfred Mesa and all the attendees participating in this event.

Mr. Okonmah then answered the question, Why are we gathered here for the next three (3) days? "To put it simply, to take responsibility for Africa. We are here primarily talk about trade, if trade is conducted in the right way it brings prosperity and growth. We are going to take responsibility for ensuring that trade in Africa means that the spirit of Africa is also nourished." Mr. Okonmah ended his remarks by telling the audience that a strong Africa is a strong trade partner and ally and that FDA and IDA need the support of everyone gathered at this event to ensure the trade that the organization is advocating, happens.

Gershwin Blyden, M.D., Ph.D., Executive Director, the Institute for Democracy in Africa (IDA) welcomed participants to the Institute and the conference. Dr. Blyden told guests that the primary purpose of the Institute is to provide an infrastructure for educating the future leaders of Africa, to prepare them to capitalize on opportunities in the marketplace

and to build a system of governance and law that supports and attracts trade and investment. Dr. Blyden went on to say that this effort will require support from both sides of the Atlantic Ocean. IDA will serve as the "think tank" and facilitator for this mission, however, to see this mission to fruition it will require the support of all of us.

Mayor Penelas, on behalf of Commissioner Dennis C. Moss and the Board of County Commissioners and the more than two (2) million citizens of Miami-Dade County, welcomed participants to the County. The Mayor thanked Monsignor Casale, the organizers, sponsors and those traveling from outside Miami-Dade for giving the County this tremendous opportunity to play host to this historic event, the U.S.-Africa Trade and Investment Conference. "We all would agree that this event, (just starting today) demonstrates that Miami-Dade County wants to take the lead in opening the way for increasing business opportunities with Africa." Mayor Penelas went on to say that he is one of the first Mayors to play a part in a symposium of this kind. Miami’s state-of-the-art airport and seaport are ranked as some of the finest in the world for international trade and stand ready to become important gateways to Africa. "We do not want to be known as the Capital of the Americas, but the Gateway to Africa." As we increase trade with Africa, we will be increasing the economic vitality of the County.

Mayor Penelas, Commissioner Moss and Monsignor Casale presented IDA with a Proclamation from the County, declaring February 25, 1998 as The Institute for Democracy in Africa Day.

The Mayor and Commissioner Moss presented our distinguished international guests with certificates recognizing their visit to Miami-Dade County. Conference participants receiving distinguished visitors certificates included: Members of Parliament, the Honorable Margaret Dongo, Zimbabwe and the Honorable Colin Eglin, South Africa; Ambassadors to the United States, H.E. Samson Chemai, Kenya, H.E. Mary Kanya, Kingdom of Swaziland, H.E. Jerome Mendouga, Republic of Cameroon, H.E. Mustafa Salim Nyang’anyi, United Republic of Tanzania and H.E. Mamadou Mansour Seck, Republic of Senegal; Embassy Representatives John Morrisson, Embassy of the Ivory Coast, Gerry Munyama, Embassy of the Republic of Namibia, Jan van Vollenhoven, South African Embassy; Non-governmental organizations, Ayodele Aderinwale, Africa Leadership Forum, Ambassador T.A. Olu Otunla, Chairman, Taiyero Public Policy Group, Lucia Quachey, Ghana Association of Women Entrepreneurs, and Gaossou Traore, RADEV.

Monsignor Casale welcomed participants to the campus of St. Thomas University. The monsignor explained the significance of the Institute in preparing Africa’s future leaders. Monsignor Casale remarked that "this University is very much what it should be, a place where stimulated discussion and ideas lead to the betterment of men and women all over the world." Monsignor Casale further discussed why the University lends its support to the Institute and The Foundation for Democracy in Africa and pledged the University’s continued support.

Commissioner Moss addressed participants and welcomed them to the County. He gave a motivating speech regarding the wonderful opportunity that the week would present, stating that "together we can change the relationship between Miami-Dade County and the great Continent of Africa." Commissioner Moss continued by saying have the courage to change, the time is now, the place is Miami-Dade County and the people in the room and in this community are the ones to make the change, our goal, to embrace Mother Africa, the Next Frontier.

The "African Growth and Opportunity Act" was introduced in the U.S. House of Representatives as H.R. 1432 on April 24, 1997 by Representatives Phil Crane (R-IL), Charles Rangel (D-NY) and Jim McDermott (D-WA), and in the Senate as S.778 on May 21, 1997 by Senator Richard Lugar (R-IN).

Because it enjoyed overwhelming bipartisan support, supporters of other trade legislation attempted to attach non-related trade measures to the bill that caused the bill to not be passed in 1997. At the writing of this report, the bill has been cleared by the International Relations and Ways and Means Committees and approved by the full House on March 11, 1998 and is presently in the Senate.

At the conference, the primary author of the legislation, Chief of Staff to Rep. McDermott, Mike Williams, spoke extensively about the bill and was later presented a FDA award for his work. The bill seeks to assist sub-Saharan African countries achieve economic self-reliance by measures including strengthening and expanding the private sector, encouraging increased trade and investment with the U.S., reducing tariff and non-tariff barriers. The bill enumerates free-market and democracy eligibility requirements that will make only about ten countries initially eligible for the assistance program under the Development Fund for Africa.

The Congressional panel discussions focused on the intent of the bill, its path through Congress and the current status, and the steps necessary to ensure its passage into law. Given the President’s desire to sign the bill into law prior to his upcoming trip to Africa, and the support from the Republican Congressional leadership, overall assessments were that the bill would soon become law.

Nonetheless, all panelists recommended vigilance and vocal expressions of support from the constituencies, especially since some major African-American leaders had spoken against the legislation. In the face of a small yet vocal opposition, the majority in support of the measure was strongly urged to contact their Congressmen and make their feelings known.

H.E. Mustafa Salim Nyang’anyi, Ambassador, United Republic of Tanzania to the U.S. believes that the potential for expanding U.S.-Africa trade and investment with the 53 nations throughout the continent of Africa is enormous. The rate of return on investment for U.S. companies currently doing business in Africa is excellent with an average rate of return of 28% (the average rate of return is 7% or 8% in the rest of the world), and the majority of the nations in Africa are peaceful and democratic and have begun laying the foundation for the creation of a common African Economic Community.

While there are numerous U.S. companies making money doing business throughout Africa, Ambassador Nyang’anyi states that there are still major barriers that impede U.S. trade and investment in Africa. These barriers include the U.S. media’s negative portrayal of Africa, U.S. enforced restrictions and quotas on African products and little or no direct air and maritime transport between the United States and Africa.

H.E. Mary Kanya, Ambassador, Embassy of the Kingdom of Swaziland, outlined the current investment climate in Southern Africa. Her Excellency spoke of post apartheid Southern Africa, which has created a stable economic environment, adopted governance-related measures involving the democratization of political systems, streamlined its bureaucracy, sought the involvement of the private sector in economic management and established and consolidated Stock Exchanges and employed a policy regional integration in its continuing efforts to foster trade and investment in the region.

His Excellency Mamadou Mansour Seck, Ambassador, Republic of Senegal to the U.S.

H.E. Mamadou Mansour Seck, Ambassador, Republic of Senegal to the U.S. states that there is a very bad misperception of the continent, due primarily to the media’s sensationalism of selected occurrences in Africa. "This really is the structuring of what we call the CNN Syndrome. It is true also that the people of the media sell bad news, sensational news, good news is no news. We have to fight that, it is one of our jobs as diplomats is to educate American people inside and outside the beltway that Africa not only matters, but is a part of humanity, we all are neighbors because of progress in transportation and telecommunications, etc."

Last year, Africa imported more than $46 billion of products from the United States creating 100,000 jobs in this country. Ambassador Seck would like U.S. exports expanded to create a million jobs in the U.S. His Excellency feels that reciprocity between the U.S. and Africa and U.S. assistance in educating Africans and teaching them how to do business are essential to sustainable development in Africa.

Panelists from civil society organizations in the United States and throughout Africa discussed the importance of involving NGOs in the design, formulation and implementation stages of programs and projects, developing and sustaining international partnerships with development organizations, institutions and the private sector and ensuring that the benefits and costs of trade liberalization and investments are equitably distributed.

Moderator: Amb. T.A. Olu Otunla, Chairman, Taiyero Public Policy Group

Margaret Dongo, Member of Parliament, Harare South Constituency, Zimbabwe

Ayodele Aderinwale, CEO, Africa Leadership Forum

Fassil Gabremarium, Founder, U.S. Africa Free Enterprise Education Foundation

This panel provided participants with resources available in Miami-Dade County and throughout the state of Florida for doing business with Africa.

Moderator: Manuel J. Gonzalez, International Trade & Commerce Coordinator, Office of the Mayor, Miami-Dade County

Jorge Carvalho, Acting Executive Director, City of Miami International Trade Board

John Cordrey, Ph.D., Vice President of Research, Beacon Council

Kaaren Johnson-Street, Vice President

Panelists provided conference participants with crucial information necessary to position their firms to successfully trade and invest in Africa. Topics included: product and market research techniques, U.S. custom requirements and the "how to’s" of obtaining rules and regulations from other government agencies.

Moderator: John Bancroft Brown, International Business Consultant

Wadie Crawford, Special Agent, Drug Enforcement Administration

Joseph Geller, Chairman, Dade County Democratic Party

Lucia Quachey, Ghana Association of Women Entrepreneurs and Maria Ibanez, International High-Tech Marketing

Seasoned professionals and real world practitioners provided participants with "hands on" information and essential steps involved in doing business in Africa. Topics included: advantages and disadvantages of doing business in Africa, financing, marketing, shipping, research and opportunities for 8(a) companies.

Moderator: Gilbert Squires, Esq., President, SKG Consulting, Inc.

Abdoulaye Agne, Vice President, The United States/West African Network

Maria Ibanez, President, International High-Tech Marketing

Weldon Latham, Esq., Senior Partner, Shaw, Pittman, Potts & Trowbridge

Lucia Quachey, President, Ghana Association of Women Entrepreneurs

This panel gave participants a better understanding of the contemporary African media environment, examined the dynamics that produced the present conditions, identified individuals and organizations currently invested in the African media infrastructure and discussed the importance of the relationship of independent production and content development to contemporary African media.

Moderator: Adrian Anderson, Executive Director, Diaspora World Cinema

Ngozi Onwurah, Filmmaker & TV Producer

Simon Onwurah, Producer, African Media Specialist

The FDA wishes to institutionalize the goals promulgated during the conference so as not to lose the critical energies that were developed. To this end, the FDA will:

continue its participation in the African Growth and Opportunity Act war room group chaired by Rep. McDermott to strategize on ensuring the bill’s enactment into law.

facilitate grassroots understanding for the African Growth and Opportunity Act through postings in its Website.

propose to the Miami-Dade County Mayor and Commission to create a resource office affiliated with the Miami-Dade County Government dedicated to facilitating trade with sub-Saharan African countries. This office is of the utmost importance so as to institutionalize the goals of the conference.

work to organize trade missions to sub-Saharan African countries.

work to garner funding to allow the IDA to enroll its first group of students.

explore opening and office in Orlando, Florida in addition to its existing offices in Miami, Florida and Washington, DC to fully service businesses wishing to enter trade relations between the U.S. and Africa.

plan regional meetings/conferences in Africa to promote The African Growth and Opportunity Act goals and objectives and educate businesses and NGO leaders on how to benefit from the legislation.

work with existing institutions of higher learning in Africa on how to expand and improve their Civic Education, Democracy, Rule of Law, Business Administration, Management, Public Health and Curriculum Programs.

I would like to thank the organizers and sponsors of the U.S. Africa Trade & Investment Conference for giving us the opportunity to host the visiting dignitaries here in Miami-Dade County. This event demonstrates that Miami-Dade County wants to take the lead in opening the way for increasing business opportunities with Africa.

International Trade has an annual economic impact of over $45 billion dollars in terms of exports and imports in our community. As we move into the next millennium, Miami-Dade’s state of the art airport and seaport, ranked among the finest in the world for international trade, is ready to become an important gateway to Africa. While Miami Customs District 52 captures only 3% of total U.S. trade with Africa, it is important to note that these figures have continued to grow in recent years.

As we increase trade with Africa, we will certainly contribute to the economic vitality of this county as a whole. We continue to plan for the future, and our expansions of the airport and seaport are testimony to that.

On behalf of the Board of County Commissioners, and all the citizens of Miami-Dade County, welcome as we begin this important conference.

On behalf of the Foundation for Democracy in Africa and the Institute for Democracy in Africa, I would like to welcome all of you to this historic symposium on "African Democracy, Trade, Investment & Economic Development."

I want to first thank the people without whose participation and support this conference would not have taken place. Starting right here in Miami - Mayor, members of the County Commission, Monsignor, Ken English; from Africa, the government representatives from Cameroon, Ethiopia, Gabon, Ghana, Kenya, Mali, Senegal, Swaziland, and Tanzania; elsewhere from the U.S., The Honorable David Dinkins, U.S. Representatives Carrie Meek, E. Clay Shaw, and Ileana Ros-Lehtinen, and the officials from the Administration and the related agencies. All these people are devoting time and resources to be here and contribute the richness of our dialogue and we are very appreciative.

I also want to briefly speak about the Foundation and the Institute - the FDA and IDA. The FDA is a non-profit organization based in Washington, DC founded on the principle that democracy is fostered through trade and education. Without one, the others are not feasible for the long-term. Therefore, the Institute is housed here at St. Thomas University to provide educational opportunities for African students selected each year to study issues impacting good governance and entrepreneurship. The Monsignor will speak about that program.

That brings me to the question, "Why are we gathered together for the next three days?" Simply put, we are here to take responsibility for the future of Africa. For too much of its history, Africa has suffered at the hands of people who did not care about the breadbasket of the world from which life sprung.

We are here to talk primarily about trade. If trade is conducted in the right way, it brings prosperity and growth. For too long, did trade in Africa mean the trade in human flesh. That trade demeaned the spirit of Africa. For too long, did trade in Africa mean the trade in weapons. That trade destroyed the spirit of Africa. But somehow, the spirit is still alive and flourishing. The spirit of Africa is strong. Today we are gathered as witnesses to each other. We are going to take responsibility for insuring that trade in Africa means trade that nourishes the spirit of Africa. We will bolster the trade in goods and services that is growing each year.

Until recently, the U.S. accounted for only 7% of Africa’s imports. That is projected to change however as African markets present ever-growing opportunities for U.S. exporter. Last year for example, U.S. exports to Africa grew 20% and were more than 25% greater than U.S. exports to the entire former Soviet Union. Overall foreign direct investment flows to Sub-Saharan African countries reached $4.5 billion in 1996, triple the average annual level for 1990 to 1993. Some African countries already have attained growth rates as high as 12%. With Africa’s population currently over 748 million, and expected to exceed 830 million by the end of the decade, U.S. exporters are beginning to take greater interest with regard to both manufacturing manpower and consumer markets.

Africa’s potential is so tremendous. Gone are the days of Amin and Mobutu. There is a new generation of leaders arising in Africa. We must lend them our support, our resources, and our business partnership. We must give the future leaders of Africa the educational infrastructure which will support the new Africa. We must help build capacity not just in terms of roads, and hotels, and railroads, and ports. We must also help build the capacity of the mind for future generations of Africans to fully exploit the opportunities coming their way and build a system of governance and laws which support the explosion of trade.

On behalf of the Government and people of the Republic of Ghana, and on my own behalf, I congratulate the organizers, sponsors and our hosts for making this very important conference possible. I convey my special thanks to the President and Executive of the Foundation for Democracy in Africa for extending to me an invitation to this conference which I have felt very happy and honored to accept.

I note with satisfaction and relief that the motto of The Foundation for Democracy in Africa is "Cultivating the pathway for peace, prosperity and economic opportunity in Africa through democratic capitalism and free enterprise."

Indeed what Africa needs most as the prerequisites for reaching the goals of growth, development and prosperity are unity, peace and stability. Nevertheless these goals cannot be achieved in vacuo. Rather they can best be reached through democratic and economic liberalism conceived as interpenetrative bedfellows and thus pursued in simultaneity.

It is against this background that I hold in high esteem the FDA’s role in "cultivating the pathway," here in the United States, for enhancing economic opportunity, growth and development in the continent of Africa. This action could not have been better timed than now when African countries are showing dramatic signs of emerging as new liberal democracies and modern free-enterprise economies within which other nationals can operate.

There is no doubt that this conference is an epoch-making one for two related reasons. First, it makes a complete departure from the past approach by which African residents abroad intending to influence economic and political changes in their motherlands opted for dissidence and confrontation as the course of action. Second, it heralds the introduction of the processes of dialogue and consensus-building as a more acceptable and mutually-rewarding approach for exercising influence from outside to effect the desired political and economic changes at home. Thus the idea that for one to want to live and operate in a democratic environment requires that one be democratic in one’s thoughts, belief system and action-tendency is being given full expression here and today. I can only hope that the Foundation for Democracy in Africa will continue to be imbued with the selflessness, sense of purpose and dynamism that have directed its initiative and action since 1994 so that it can sustain the implementation of its noble agenda.

Ghana like most African countries undergoing serious but painful economic and political reforms, welcome with great expectations

• President Clinton’s new five-point initiative "to help fulfill the promise of a stable, prosperous and democratic Africa."

• the efforts that have been made in the U.S. to introduce the bill entitled "African Growth and Opportunity Act" in both the House and the Senate to authorize a new trade and investment policy for Sub-Saharan Africa;

• President Clinton’s plan to visit Africa from March 22nd to April 2nd this year to promote new U.S. partnerships with the continent.

Central to the emerging U.S. policy initiatives is the emphasis on trade and investment, NOT on aid. Africa has had too much aid with far-reaching negative consequences on its development, and, for that matter, welcomes and supports the U.S. policy shift from Aid to Trade and Investment. It will be sad for anyone to fault this new policy initiative in favor of the U.S. policy on aid because it is common knowledge that neither can aid energize sustainable growth and development in Africa nor be sustained in perpetuity. Those of the nations in Africa which have received international aid in one form or the other can openly declare that it does not incentive the people to work; it does not encourage creativity, innovativeness, adaptiveness and self-sufficiency. It is feared, and rightly so, that international aid will tend to render recipient socio-economic aspirations unachievable, perpetuate their poverty, threaten their national security, stability and survival. Ultimately, international aid, no matter what good intentions they have, may place more political and economic burdens than before on aid donors of whom the United States is one.

The prospects to be unleashed by the new U.S. trade and investment policy for Sub-Saharan Africa are enormous. Like many other people, I see meaningful and mutually beneficial U.S. trade and investment links with Africa as removing the barriers to African creativity and adaptiveness, contributing to the political and economic modernization of the continent, engendering opportunity, growth and development, alleviating poverty and integrating Africa into the global economy.

The U.S. policy initiatives which started unfolding since the middle of 1997 need our collective commendation and support. But, Mr. Chairman, no matter what the goals, content and scope of the new U.S. Trade and Investment Policy are, we as Africans are unlikely to take full advantage of the opportunity knocking on our doors if Africans in the diaspora fail to forge a purposeful partnership with themselves, with Americans and with Africans in Africa. Mr. Chairman, I dare say that a major part of the responsibility for forging this partnership rests squarely on the shoulders of the FDA which is pioneering the process. In fact the FDA is poised to assume this responsibility because their members have the requisite cross-cultural exposure, in particular, experience in operating in an Information Age in a leading liberal democratic system to do so.

The role that the FDA intends to play will provide the link that has been missing between Africa and the United States. But that link can only be strengthened if our African compatriots themselves and their American friends and supporters begin to understand the diversity and complexity of the internal and external pressures on Africa to grow, to develop and to prosper.

While African countries undertaking reforms have seen the need to do so, the magnitude and speed of these reforms have been dictated by external pressures. Further, the need to abide by certain international conventions, treaties and agreements has unobtrusively become yet another set of externally-induced pressure. To render the situation more difficult for African nations undergoing serious reforms there have been heightened internal pressures originating principally from growing, modernizing but reform-fatigued populations who crave for food security, health care, quality education, housing, energy, road, transport and telecommunication infrastructures. Political reform has opened the gate for aggressive interest-articulation and pressures around the needs of the populations in the face of dwindling donor assistance in post structural adjustment era.

Whether they originate from internal or external sources, pressures to undertake both political and economic reforms define their own problems in social, economic and political terms. One such problem facing Ghana is the scenario of a macro-economic instability quagmire in which it is caught. To demand that Ghana for example, brings down its budget deficits, level of inflation and interest rate, stabilize its currency and increase domestic savings all by herself within an unreasonably short period as conditions for attracting more investment is simply to delay its development agenda. This is because the residual economic and financial structures that need to be reformed before achieving a macro-economic stability acceptable to the average western investor who has been used to single digit inflation, low interest rate and stable currencies takes considerable resources and time to accomplish.

Despite creating difficult problems in their implementation, economic reforms have contributed to improvement in overall economic performance in a number of African countries as indicated in their annual GDP growth rates. Political reforms have ushered in a new lease of freedoms, rule of law and relatively more transparent administrations. Thus rather than wait for the ideal investment environment to emerge, Heaven knows when, investors are challenged to take advantage of the investment opportunities in the following priority areas:

• road building - toll roads

• telecommunication services provision

• energy infrastructure and services provision

• real estate development

• tourism

• agriculture and agribusiness

• manufacturing

• mining

• import and export business

I strongly fell that response to this challenge would in effect help to reduce the social, economic and political pressures on African governments while at the same time create the most conducive environment for trade and investment to accelerate growth and development to the mutual benefit of the United States and African countries within the shortest possible time.

Finally, Ladies and gentlemen, while for reasons of resource abundance, a large growing population, cheapness of labor, low levels of rents and taxes Africa is one continent on earth where high returns on investment can be guaranteed provided that those factors are in the right mix with appropriate technology, know-how, and right amount of capital, there are initial constraints that the investor has to overcome. Some of those constraints are as follows:

• Funds for feasibility studies are generally not available from government sources. Non- governmental institutional sources of feasibility study funds are normally constrained by bureaucratic red-tapism and thus take a long time to obtain

• Term loans from local banks as complements to equity contributions are difficult to come by.

• Government or Central Bank Guarantees against foreign-sourced loans are difficult to obtain because of donor conditionalities and restraint on government expenditure.

• Information is not as current and readily available as it is here in the U.S.

• One-Stop Investment Shops are in the process of formation, thus requiring the investor to exercise some patience.

• Potential local joint-venture partners are not as financially endowed as their American counterparts to facilitate the contribution of the requisite equity to undertake most large-scale ventures.

Besides, one has to prepare oneself to overcome cultural shocks that are normally experienced by some in a foreign culture. Mental sets developed myopically around a specific investment project could generate a lot of frustration to oneself. It is strategic to have a flexible mind in order to identify even more potentially viable and profitable projects than that which one originally set out to establish.

I would like to salute and extend my congratulations to the organizers of this Conference for arranging this most timely and important Conference. The Conference is one among many recent initiatives focusing on Africa which we welcome wholeheartedly. I am delighted to be here and thank you for the opportunity to join in the efforts aimed at fostering trade and investment in Africa. I am privileged to represent Southern Africa and wish to outline and share with you the investment climate we have created in that region.

It is important to point out first that Africa has for a long time been characterized, with justification in some cases, as a place which is too risky to invest in, too difficult to trade with, and too poor to sell to. The Africa of today is, however, much different. Most of the African countries have embarked on a democratization process which is irreversible. Multi-party free and fair elections have been held, a situation that was inconceivable only a few years ago.

Furthermore, many of the African countries have instituted far-reaching reforms to make their economies even more market-oriented. They are streaming their bureaucracies to make them more efficient, and are putting measures in place to protect individual property and investments. This is the face of the new Africa.

I am particularly happy to say that Southern Africa mirrors the new Africa I have just described. The demise of apartheid has translated into much-needed peace and political stability for our region. Of course, peace and stability alone cannot attract investment. That is why our countries have created a stable economic environment to attract investment by implementing the necessary macro-economic reforms. This is in addition to adopting governance-related measures involving the democratization of political systems, liberalization of economic management, elimination of bureaucratic bottlenecks, as well as the involvement of the private sector in economic management.

Another measure, which I am sure is of interest to investors, is the establishment of Stock Exchanges by most of our countries. The Stock Exchanges are consolidating. The Executives of seven regional stock markets met in Harare, Zimbabwe recently with the aim of promoting increased investment in Southern Africa. That meeting boosted dual listing in the region. Agreement was reached on harmonizing listing requirements, clearance and settlement procedures, creating a centralized scrip depository, and rationalizing trading and information services. This will now, undoubtedly, facilitate cross-border investments.

I should also point out that in becoming an attractive place to invest, Southern Africa has benefited from the creation, at the height of apartheid as far back as 1980, of an economic grouping now known as SADC. At that time, the objective of the Member States was to lessen economic dependence on South Africa. This move, however, resulted in major strides being made in infrastructure development. The coming on board of the new South Africa was a most welcome expansion, and gave a major boost to the prospects of success of our ultimate objective of economic integration. The grouping has now increased its membership from twelve to fourteen, following the recent admission of the Democratic Republic of the Congo, and the Republic of Seychelles.

We in Southern Africa have long recognized that our economic future, and successful integration into the global economy depends on regional integration. We have acknowledged that individually, some countries may not possess sufficient market size to attract foreign investment. Hence our commitment to regional integration. We have to this end adopted several protocols, which will allow for greater market integration and access. These, among others, include a Protocol on Shared Water (which has assumed added significance with coming on board of the Democratic Republic of the Congo), a Protocol on Power Pooling, as well as a Protocol on the Free Movement of Goods and Services.

Much has been achieved already towards making regional integration a reality, and this has given our region a comparative advantage. Reliable infrastructure, with good road, rail and port linkages, allows an investor to locate anywhere in the region to take advantage of access to a market of over 150 million people. Southern Africa has the added advantage of being easily accessible from the U.S. by air, telephone, and fax. The countries of the region are also linked to the Internet. I should further like to draw attention too the fact that last year, the region enjoyed an average GDP growth rate of 6%, which compared favorably with the growth rates in other emerging markets.

In addition to the many options of where to locate, an investor has a wide choice of sectors depending on the area of interest. It may sound unbelievable but yes, virtually all sector of the economies of the countries of Southern Africa are open to foreign investors. Opportunities for investment now exist even in sectors such as tourism, mining, and energy, which covers the generation of electricity and production of natural gas. The telecommunications sector in most countries of the region is, likewise, open to foreign investment. The government-owned services in this area are now in the process of being privatized.

In order to encourage investment especially in secondary sector productive capacity, our countries have offered special incentives for manufacturers and exporters of manufactured goods. At the core of this strategy is the Export Processing Zones Programme, which most of our countries have introduced. The benefits in the Export Processing Zones include zero corporate tax, and no other direct or indirect taxes such as customs duties and services taxes.

The availability of skilled and semi-skilled manpower is equally key, and plays an important role in attracting investment. In Southern Africa, an inventor is assured of access to a reliable, qualified and semi-qualified work force at competitive costs. The region, of course, recognizes that the demand for trained manpower is never-ending. And since human resources development is essential to overall development, the countries of the region have taken steps to incorporate it in their investment strategies. In this connection, incentives are given to investors for on-the job training.

We aware that an investor would not like to spend sleepless nights worrying about whether his capital is safe or not. We have, therefore, not just stopped at the creation of a conducive environment for investment. We have also made certain that investment is not only safe, but secure, by enacting Foreign Investment Acts which are very liberal and provide security of investment,, and generous repatriation conditions.

We regard the issue of the security of investment so seriously that we have taken further steps to provide complete protection. Our countries have entered into appropriate bi-lateral and multi-lateral investment guarantee agreements with such institutions as the Multi-lateral Investment Guarantee Agency (MIGA), and the Overseas Private Investment Corporation (OPIC). I must emphasize that this approach is consistent with the commitment of our countries to the protection of private property, a commitment that is enshrined in our Constitutions.

That briefly is why we are inviting investors to Southern Africa. There are a host of other reasons. However, it would take too long to outline them all here. Suffice it to say the our region is endowed with an abundance of natural resources. We welcome foreign investors to join us in tapping these resources for our mutual benefit. The requisite conditions exist for doing so. We, therefore, urge you all to again take a new, long hard look at the worthwhile opportunities that we have to offer, most of which do not call for investment of many millions of dollars, but require persistence and seriousness of purpose.

For those who may not be aware, each of the countries of our region has sectorial responsibilities. My colleagues and I are in this regard available to explain, as well as provide details. I would also suggest that interested investors should access the SADC Website@www.SADC/US/net.

In the context of why we are here, there is one initiative which we consider to be extremely important to the future of relations between Africa and the U.S., and I would be remiss not to mention it. It is the African Growth and Opportunity Act, which is currently before Congress. This proposed legislation, which has elements that are of benefit to both sides, would provide around $500 million for U.S. investment in Africa, and shift the emphasis in our relations from aid to trade. I know that in the case of our region, it would mean most welcome additional funds to the almost $250 million already available through the Southern Africa Enterprise Development Fund (SAEDF) ($100 million), and the New Africa Opportunity Fund administered through OPIC ($150 million).

The passage of the Africa Growth and Opportunity Act is, therefore, of great interest to us. We are convinced that with the concerted efforts of us all, the Act would have a chance to pass.

I, therefore, urge you to do everything possible to ensure that Congress takes up the Act soon. I need not go into the details of what would happen if Congress does not consider the Act soonest.

This is a particularly exciting time to be looking at Africa, because the region is emerging from years of "benign neglect" by American business and U.S. policy makers alike.

In many ways, it would be hard to ignore Africa. It is a vast continent. The second largest in the world. It is as large as the United States, Europe and China put together. 52 countries, 800 million people, more than 12% of the world’s population.

In the closing years of the Twentieth Century, Africa has undergone an unprecedented political and economic transformation. The U.S. media largely ignores the trend in favor of agonizing images of refugees, disease, ethnic conflict, and political instability. But the fact is that a democratic tide is sweeping across Africa. More than 30 countries have held elections in the decade of the 90's, and the list grows month to month.

As democracy takes root and spreads, it brings with it the concepts of predictability, accountability and the rule of law. By no coincidence, these concepts are essential elements in building a climate of business confidence. The transformation sweeping across the African continent is opening the region to commercial opportunity as never before.

Accompanying the democratic revolution is an equally impressive wave of economic policy reform. 30 or more countries have instituted programs to dismantle their long discredited state-centralized economic systems and replace them with free enterprise. These countries have enacted measures to:

~ devalue their currencies;

~ raise producer prices, particularly for farmers;

~ privatize state-owned enterprises;

~ institute tighter discipline over government expenditures;

~ end costly internal subsidies; and

~ remove artificial barriers to trade and investment.

Sub-Saharan Africa’s imports and exports were in virtual balance in 1996, each at about $86 billion.

What do we buy from Sub-Saharan Africa? Crude oil, non-ferrous metals, diamonds and cocoa. What do we export? 86% of our exports are manufactured goods -- drilling equipment, aircraft parts, computers, telecom equipment. We also export agricultural products, mainly wheat and rice. Right now, the top export markets in Africa for U.S. products are South Africa, Nigeria, Ghana, Angola, Ethiopia, Cote d’Ivoire, Kenya.

And for American companies the returns have been great. American investments around the world averaged around 12 cents on the dollar in 1996. In Africa? 31 cents on the dollar.

African nations impose some form of non-tariff barriers against more than a third of their imports, a ratio almost nine times higher than the average for high-growth developing countries. This protectionism operates as a hidden subsidy to inefficient, non-competitive industries, and costs the region an average of $11 billion per year in trade losses.

There are other hard realities. We find 12% of the people on this planet in Africa, but only 2% of the world’s telephone lines. There are more telephones in Manhattan than all of Africa. The economy of the city of Los Angeles is larger than the whole economy of South Africa, and South Africa is the largest and most robust economy on the Continent.

Under these circumstances, hammering out trade relationships with Africa is hard. On the other hand, there is opportunity for those willing to take the risk. We couldn’t have said that so confidently twelve years ago.

We at Commerce are crafting our own Commercial Strategy for Africa that is unprecedented in its focus and its integration of all the Department’s resources--not just trade promotion but scientific, technical, electronic, and educational resources. We are working not only to improve commercial opportunities in Africa, but we are talking about capacity building for Africans as we train scientists, entrepreneurs and tomorrow’s leaders.

Under the Commercial Strategy, Commerce specialists will assist African governments with a range of challenges, whether its coping with El Nino and crop planning or standardization of commercial measurements, manufacturing and building codes.

Our aim is to create a more nuanced, more committed strategy that is "surgical" in its focus--one that will increase opportunity in sectors where the U.S. business community is particularly competitive in the products and services that Africa needs most.

We will examine three areas that seem particularly promising for American investors: infrastructure, financial services, and agribusiness.

Another major focus of Commerce’s Africa strategy is our strategic calendar. One highlight is our domestic outreach program targeted to major U.S. cities. Both Secretary Daley and Deputy Secretary Mallett will be working hard to make the American business community more aware of the potential in Africa all across the U.S.

Moreover, we are coordinating our efforts with other agencies at these events to increase U.S. business community awareness of opportunities in Africa. At these events we will showcase new Federal initiatives to promote trade with Africa. We will also sponsor exchanges with African businesses, governments and diplomatic corps.

Also in the Spring of 1998, the Commerce Department, State Department and the Corporate Council on Africa are co-sponsoring a Tour of U.S. Ambassadors and Senior Commercial Officers from Africa to discuss African commercial issues, developments and opportunities.

So you see, we are committed to this initiative. Our Commercial Strategy for Africa will emphasize better coordination of both ongoing and new activities. It will target specific industry sectors, and also the most commercially viable countries in the Sub-Saharan region. It will position U.S. firms to take fuller advantage of Africa’s growing opportunities. Finally, it will encourage African governments to redouble their commitment to legal, democratic and economic reform.

It is an honor to be here this afternoon with my distinguished colleagues, Alex Penelas and Colin Eglin, to discuss the Administration’s forward-looking trade and investment agenda in Africa. I welcome all of you, those traveling from the Continent, as well as my counterparts from other U.S. Agencies and members of the U.S. and African business communities. The Assistant Secretary of State for African Affairs Dr. Susan Rice, also sends her warm regards. We thank the Foundation for Democracy and the Miami-Dade County Commission for hosting this forum to encourage increased U.S.-Africa commercial cooperation.

Clearly, Miami recognizes the importance of Africa for increased African and U.S. private sector growth. It is no coincidence that this city, an international gateway, boasts direct flights to Cape Town, one of the many business ports of the Continent. Miami’s citizens, as well as private sector leaders across the U.S., are becoming more and more aware of Africa’s emerging markets’ potential. Noting the arrival of many African nations on the world economic and political stage, South Africa’s Deputy President Thabo Mbeki speaks of an African Renaissance. U.S. companies are poised to take advantage as African Entrepreneurs not only pull up a seat at the table, but arrive with a sophisticated and heartening appetite for lucrative commercial partnerships.

The Clinton Administration thus recognizes how important Africa is to long-term national and economic interests. At the beginning of the Administration, the President set the course for us to follow by announcing, at the first-ever White House Conference on Africa that, "Africa matters to the U.S....it matters to us significantly." From Senegal to South Africa, there is empirical and quantitative evidence to suggest just how crucial strong U.S.-Africa ties are to U.S. businesses and investors.

African economies are performing better than ever before. Annual GDP growth in Africa last year averaged almost five percent. As Africa’s exports have grown, so too has its trade with the U.S. In 1996, U.S. trade with Sub-Saharan Africa surged by 18 percent. And this was the second consecutive year that growth in U.S. trade with Sub-Saharan Africa has out paced the expansion in U.S. trade globally.

Moreover, investors are taking note and plunging ahead with diverse portfolios. From 1992-1996, the average annual return on book value of U.S. direct investment in Africa was 28.7 percent, more than 2.5 times the rate of return on U.S. direct investment worldwide. In 1996, the return on book value reached 31 percent, compared to a 12 percent rate of return in Europe and Latin America, 13 percent in the Asia-Pacific, 17 percent in the Middle East, and 12 percent worldwide.

We owe this to the resourcefulness of Africa’s leaders in this room and on the Continent, African companies, and the Continent’s natural wealth and new 21st century philosophies. Because of this resourcefulness, today U.S. exports to Africa exceed those to all of the former Soviet Union combined by more than 20%. 100,000 U.S. jobs depend on exports to Africa.

Indeed, at this conference you will hear about specific African market’s potential from the distinguished African speakers and other representatives. Yet, the U.S. accounts for only 7% of global exports to Africa. As the huge, mostly untapped African market of 600-700 million people grows, and our market share increases, thousands of new American jobs will be created.

Regions of stability are also emerging throughout the Continent. In this decade, we have witnessed not only the end of apartheid in South Africa but the conclusion of protracted wars in the Horn of Africa and Mozambique. There is now hope for lasting peace in Liberia and Angola. While this progress may be clear to informed observers, it is also extremely fragile. Nascent democracies in Sierra Leone and Congo-Brazzaville have been toppled in violent coups. And Central Africa is still a tinderbox. In many countries, however--Namibia and Mali, for example--reconciliation is supplanting confrontation as the means of bridging differences rooted in the bygone past.

The change that has swept the Continent since the end of the Cold War has fundamentally altered Africa’s political and social landscape. Gone are the days of command economies and minority rule. Gone are the days of Africa serving as a playground for superpower competition. And gone are the days of dictating policy through foreign aid grants.

And just as this progress has forced us to change our perceptions of Africa, Africa’s political and economic resurgence has led to a reappraisal by many of its leaders of their ties to the West. While there is a desire for strong and constructive relations with the United States, in particular, in many parts of the Continent, we must recognize that this desire is not blind. It is tempered by the rightful determination of African leaders that their relationship with the United States be that of true partners--partners who listen to one another, learn from one another, compromise and trust one another.

As a consequence, we in the United States are adapting our approach to pursue a new form of engagement with Africa-- a partnership for the 21st century. In the spirit of engagement, we must pursue our common interests and, in the spirit of mutual respect, we will differ where we must.

Ultimately, only African leaders and African people can realize their vast potential. But America can play a pivotal role. To this end, the United States is working on over-arching policy goals to accelerate Africa’s full integration into the global economy under three distinct, but mutually inclusive banners: 1) promoting sustainable economic growth and development; 2) promoting democracy and respect for human rights; and 3) conflict resolution.

As the global village shrinks and nations forge closer economic ties, Africa must not be left behind. Increasing its trade and commercial links with the rest of the world is crucial to the sustainable economic growth and development Africa needs. Economic stability now will not only alleviate poverty, but encourage plurality and prosperity well into the next century.

Thus, we are working closely with many African countries--some represented here--to adopt sound macro-economic policies and to make the transition to free-market economies. In the process, the Administration has provided over $15 billion in developmental and humanitarian assistance to Africa in the past decade.

Since 1994, we have disbursed over $630 million in assistance to South Africa, benefitting entrepreneurs, farmers, NGO’s, and others. Our aid has also supported housing, education and health services for the poorest South Africans.

President Clinton’s $100 million Southern Africa Enterprise Development Fund has begun disbursements to support indigenous small and medium scale business throughout the southern African region. And U.S. technical assistance has helped establish the SADC Trade Protocol to create a free-trade area among the countries in Southern Africa.

In West Africa, we have provided technical assistance to eliminate trade barriers and establish a network of second generation entrepreneurs that provides information to members in eleven West African countries on trade flows, supplies, prices, and transport costs.

In Central Africa, we are working to rebuild the region after years of deadly conflict. In Rwanda, U.S. assistance has helped restore agricultural production to nearly four-fifths of its pre-war level.

In East Africa, the U.S. has helped create over 100,000 new small and micro-businesses in Uganda alone over the past five years. In Kenya, we have supported the expanding horticulture industry and promoted an eco-tourism initiative, the profits of which go to local communities. In Tanzania, we are rehabilitating rural and district roads essential for economic activities.

To enable Africa to keep pace with the global communications revolution, Congress has passed and we are implementing the Mickey Leland Initiative, which links Africa to the Internet.

While we have done a great deal in recent years to promote economic development, much more remains to be done. Development assistance alone cannot fuel sustainable growth, we need only note that the World Bank estimates 350 million new jobs will be required in Sub-Saharan Africa in the next generation.

For this reason, in June of last year, President Clinton announced the "Partnership for Economic Growth and Opportunity in Africa." This initiative is designed to accelerate commercial expansion by promoting economic reform and boosting trade and investment. Our proposal to enhance access to American markets for African exports is at the heart of this initiative. African countries are now able to export nearly fifty percent more products to the United States duty-free. Those African countries that undertake bold, growth-oriented reforms would have substantially greater market access as well.

Under the President’s initiative, the United States will also provide more technical assistance to African countries to enable them to take advantage of these new trade opportunities. Through the Overseas Private Investment Corporation (OPIC), $120 million has been earmarked to spur direct equity investments in Southern Africa. Another $150 million will promote equity investment elsewhere in Sub-Saharan Africa. And a further $500 million is targeted for infrastructure investment on the Continent.

In addition, the administration is working to extinguish bilateral concessional debt and provide multilateral debt relief to the poorest African nations implementing bold economic reforms. Moreover, the Secretaries of State, Treasury, Commerce, and the U.S. Trade Representative will hold annual Ministerial Meetings with counterparts from those African nations undertaking significant economic reforms. We plan to discuss progress, our assistance, and related issues.

This sweeping, new Presidential initiative will fundamentally alter the nature of America’s commercial relationship with Africa. I’m told conference participants will hear from Congressional Representatives about specific legislative strategies for moving the African Growth and opportunity Act forward. We call upon Congress to pass without further delay the implementing legislation and are encouraged with their recent progress to do so.

In order to fully integrate Africa into the global economy, however, we must also promote democracy and respect for human rights. History books confirm that economic reforms go hand-in-hand with democratic plurality. An individual’s entrepreneurial spirit is unleashed when he or she enjoys political freedom as well as economic incentives to produce. When our human rights and the fruits of our labors are protected by the rule of law, we have greater confidence. We are more willing to work hard, to take risks, and to invest in the future.

But democracy not only fosters the conditions necessary for economic growth, it also promotes the very stability essential for fast-paced development. History proves democratic nations are far less likely to engage in conflict than authoritarian regimes.

We can be proud of U.S. efforts to advance democracy on the Continent. We have supported the creation of Independent Election Commissions in eleven African countries. We provided $20 million in electoral assistance to Mozambique and Malawi alone. We funded recent legislative and executive elections in Ethiopia and have provided financial assistance to help educate a new generation of young Africans who are striving to establish vibrant civil society and electoral processes.

Still, our record in sustaining democracy is uneven. U.S. and International efforts have failed thus far to restore democracy and respect for human rights in Nigeria. Coups have toppled fragile democracies in Congo-Brazzaville, Niger, and Sierra Leone and multi-party competition has been stifled in many countries, but the successes outnumber the failures, and, with you--African Representatives, NGOs and Business leaders-- we will work hard to ensure this trend is not fleeting.

Peace and stability are a prerequisite for development and economic health, and we have done our best to promote harmony on the Continent through conflict resolution initiatives. U.S. leadership and resources were instrumental in bringing to an end protracted conflicts in Mozambique-- and we hope-- in Angola. U.S. diplomats are actively engaged in Burundi to help forge a peaceful solution to the conflict that persists there. We are working in the Democratic Republic of Congo to facilitate a full accounting of human rights violations, encourage the Nascent Democratic process, and usher in a period of economic growth and reconciliation. The U.S. has provided more than $90 million to the West African peacekeeping force, ECONOG, in order to bring peace to Liberia. And we are the largest investor in developing the OAU’s Conflict Management Center.

The Clinton Administration has also launched the African Crisis Response Initiative (ACRI) to enhance the capacity of African nations to Respond to Humanitarian crises and peacekeeping challenges in a timely and effective manner. The ACRI is part of a larger international effort which will involve other donor nations. To date, U.S. training programs have been completed in Senegal and Uganda and are underway in Malawi. In the months ahead, we plan to begin training in Mali, Ghana, Ethiopia and elsewhere. Our objective is to create a standby peacekeeping capacity so that participant nations can act in concert under UN auspices to prevent or resolve conflicts in Africa and elsewhere.

In testament to the administration’s resolve and commitment to Africa, President Clinton will travel to the region next month-which will be a truly historic and significant event. The First Lady, Vice President Gore, Secretary of State Albright, Commerce Secretary Daley and the Late Commerce Secretary Ron Brown have already paved the way- with appearances in Africa at a record number. In fact, Africa has hosted far more senior officials from this administration than from any of its predecessors. Again, we are following through on the President’s confirmation that Africa matters to us significantly.

We need the help of those in this room and other conference participants to ensure that Africa achieves its potential in the 21st century. We need your help to create a level playing field based on partnership not paternalism, trade development assistance, and future profits rather than past prejudices. We need your help to sustain the emerging confluence of American business know-how with African entrepreneurial ingenuity. And we need your help promoting democracy, safeguarding human rights, and generating bilateral economic security and prosperity.

First, I would like to thank the Foundation for Democracy in Africa for organizing the U.S.-Africa Trade and Investment Conference being held here in Miami-Dade County. I want to recognize the Foundation’s Tony Okonmah for his leadership role in support of this event. I especially want to recognize Dwayne Wynn for taking a lead role in U.S.-Africa Trade initiatives. And I also want to thank the Black Business Association, Sherwood DuBose and MMAP, Adora Obi Nweze and the NAACP, the Bi-National Chamber of Commerce, the Constituency for Africa headed by Mayor David Dinkins, the Miami-Dade Chamber of Commerce, and the Greater Miami Convention & Visitors Bureau for making this a success. Everyone of you played a key role in the success of this event and will play a key role in the success that this community reaps as a result. This Conference marks a sincere effort on behalf of the Miami-Dade community to explore business opportunities with Africa.

There is much we know of Africa, but there is much more we can learn from events like this. We look at Africa as a continent filled with hopes and ambitions. There really is a dynamic new Africa with a far greater number of nations that are making strides toward democracy and prosperity.

Since 1990, the number of democracies in Sub-Saharan Africa has more than quadrupled. Many are embracing economic reform, open markets, privatizing, and stabilizing their currencies. The economies in countries such as Senegal, Ghana, and Mozambique are expanding at rates up to seven percent per year.

As Africa’s nations join the global march toward freedom and open markets, our community has a deep interest in seeing that shift in policy achieved. Look no further than the South American and the Caribbean market.

As the governments of South America stabilized and business took a more favorable stand toward that region, Miami-Dade County positioned itself as the "Gateway of the Americas" to meet North America’s need to do business with our neighbors south of the equator.

As African nations turn more towards open market economies, Miami-Dade County will be in the familiar position of offering the business community the same advantages that companies enjoy when trading with South America.

Why is it so important to talk about changing governments and emerging markets in Africa? Why is there an interest from Washington DC (the African Growth and Trade Opportunity Act and President Clinton’s five point African Trade initiative)?

Because it means jobs right here in our community-- Miami-Dade County. By selecting our community as the host site for this conference, we have the opportunity to showcase our advantages. We want to leave our visitors with the impression that this should be their destination for trade and commerce. Let’s look at why everyone here should be excited about doing business in Miami-Dade County.

Our Ports are in a privileged position. No other location in the Western Hemisphere has our advantages.

At Miami International Airport, of the 34.5 million passengers that traveled through MIA last year, 45 percent were international passengers. As for cargo, 70 percent of the total 1.9 million tons of freight handled last year accounted for INTERNATIONAL freight. Miami is the leading airport in the U.S. for international freight, and third in the world for total freight.

By the year 2000 - just two years from now, our expansion at the airport will accommodate the projected 40 million passengers and 3 million tons of cargo. The future looks even brighter when you consider the potential fourth runway. It would increase the Airport’s economic impact from its current $13 billion on the community, to $17 billion in 2001, $24 billion in 2010, and $29 billion in 2015, generating thousands of new jobs for Miami-Dade County.

Look at the companies that have strengthened their ties with the Airport--Federal Express, Airbus Industries-- We’ve turned the corner.

As for the Port of Miami, we’re known as the "Cruise Capital of the World" with more than 3.1 million passengers sailing through our seaport last year. But our reputation is growing as a cargo port. The tonnage of our imports and exports has increased steadily since 1991. In fact, it has almost doubled.

The bulk of our cargo--67 percent of imports and exports-- comes from and goes to South and Central America and the Caribbean. Only one percent of our trade comes from or goes to Africa. That means growth potential. As the governments in Africa change their view of free enterprise, our port will be in the position to capitalize on this opportunity.

We have the infrastructure in place to meet the demand. It is up to you here today to explore the opportunities that our distinguished visitors have to offer. Explain to them the advantages of doing business in our community. This is an important moment in Miami-Dade County’s history. Many of the things discussed here today, I heard during my trip to Washington DC for the U.S. Conference of Mayors...

To assist our community as we embark on this new frontier, I would like to announce that I am creating the Mayor’s Task Force on African Trade. We will be aggressive in our role to become the hub for African Trade and to make Miami-Dade County the "Gateway to Africa."

I'd like to thank the Foundation for Democracy in Africa for their kindness to me, and for their initiative in conceptualizing and organizing this Conference.

A Conference on U.S.-Africa Trade and Investment could not have been held at a more appropriate time.

I shall not attempt to anticipate the presentations that are going to be made nor the nature of the conclusions that may be reached at this Conference. Rather, I will attempt to give you a perspective from Africa that could form a useful backdrop to the deliberations that will take place.

Let me say a word or two about Africa itself. While geographically it is one continent, while it has some pan-African institutions, and while the history of colonialism and liberation from it has created emotional bonds between the peoples of the continent, Africa is not a single functioning entity.

Algeria in the North, South Africa in the South, Somalia in the East, Senegal in the West, Central African Republic in the center are very different from each other. Their commonality extends little further than being of Africa.

Thus, while it may be appropriate to have a common policy for all of Africa, in the field of trade and investment, when it comes to the practical task of stimulating economic growth and achieving human development, the various Regions in Africa provide a better functional platforms for lift-off than the continent as a whole.

Thus, the Regions of North Africa, West/Central Africa, East/Central Africa, and Southern Africa provide not only the functional platforms for economic lift off, they are also the building blocks of a larger African Economic Union in time to come.

Africa has entered a most fascinating and challenging phase in its history. In Africa's modern history three phases preceded this present one.

The first was that of colonial subordination and of exploitation by the newly industrialized nations of the North.

The second was the struggle for liberation from colonialism - a phase that intensified after World War II when the international community started turning its back on racism and domination and moving in favour of fundamental human rights and of national self- determination.

The third phase was that of establishing political and economic systems to replace those of the colonial era.

This phase, which should have been one of creative enthusiasm, turned out to be largely negative as far as the development of the people of Africa were concerned.

The post-colonial constitutional systems, often fashioned in London, Lisbon, Paris or Brussels, were fragile and inappropriate for the developing countries of Africa.

Too often they were either subverted by the leader of the majority party into a form of autocracy or brushed on one side by the leader of a military coup.

The economic systems either did not deliver, and often when they did, the benefits were siphoned off by the political elite. Very little were directed to achieve human development. In many countries the economic dependency of colonialism was replaced by dependency on foreign aid, or on handouts by one of the competing powers in the East/West struggle.

In my opinion the new phase in Africa's history is much more hopeful.

Firstly, the international communities, no longer preoccupied with the ideological and strategic considerations of the Cold War era, are now able to look at Africa much more objectively, and in human and developmental terms.

And in Africa there is a realization that the previous political and economic systems delivered little or no benefits for the people. I sense that amongst the rising generation of African leaders the old culture of dependency is being replaced by a new spirit of self reliance and fulfilment.

I do not ignore the areas of instability and of violence in Africa. Algeria, Sudan, Sierra Leone, the Great Lakes region. I do not ignore the fact Africa's most populous state, Nigeria suffers under a military regime, or that the Democratic Republic of Congo having rid itself of that durable despot, Mabuto Sese Seko has not, under its new ruler Laurent Kabinda, taken the first steps towards elected democratic government.

Nor do I ignore the elusiveness of democratic government in Angola, nor the fragileness of democracy in a number of other countries on the continent.

Nevertheless, the past few years there has been a swing towards representative and accountable democracy as the best form of government to promote the interests of the people.

One party states have been replaced by multi party democracies. Military rulers have been replaced by elected governments.

Since 1990 the number of democracies in sub-Saharan Africa has quadrupled. More than twenty five countries have held democratic elections.

In many countries the economies have been opened up to market forces State enterprises are in the process of being privatised. Governments are exercising fiscal discipline, attempting to reduce their budget deficits and to stabilize their currencies.

In may countries in Africa the economy is on the upturn.

In the countries of the Southern African Development community, the Gross Domestic Product rose by an average of 6% during 1996 - 4,4% faster than the past two decades.

In an attempt to sustain these growth rates SADC countries are being urged to slash their budget deficits to less than 5% by the year 2000 and to less than 3% by the year 2005.

The economies of Ghana, Senegal and Ivory Coast are expanding at a rate of 7% per year.

And Uganda, once associated with the despotic and destructive regime of Idi Amin, has been growing in economic terms since 1992 at the rate of 8% per year.

This economic turn-around must be broadened, accelerated and sustained for, in the new phase in which Africa finds itself economic growth is of critical importance. Indeed it should be Africa's top priority.

If there is no economic growth the countries of Africa will not be able

- to roll back the frontiers of poverty, ignorance and disease

2- to redress the imbalances that are the legacies of colonialism and apartheid

- to meet the reasonable expectations of their citizens for jobs, housing and social services

If there is no sustained economic growth the political reality is that

political moderates will give way to extremists pragmatic leaders to ideologuesrational politics to populist demagoguery

The countries of Africa will not be able to sustain their new democracies. Their venture into the market based economy will be short lived.

African countries will revert to autocratic rule, to centralized social engineering and to command economics.

Put bluntly, if Africa is going to sustain democracy to raise living standards and to uphold human rights, economic growth is imperative.

What are the pre-requisites inside Africa for economic growth?

Firstly - political stability. And here let no one be beguiled by the 'stability' brought about by autocratic non democratic regimes.

The overwhelming evidence from the past is that, in under-developed countries with non democratic governments, the benefits of economic growth go not to the people as a whole but go to line the pockets and swell the foreign bank accounts of the members of the ruling elite.

Added to this the cost of getting rid of such a regime in due course offsets the benefits of the 'stability' which they brought to their counties while they held the reigns of power.

Secondly - an orderly society - one molded by the attitude of society itself. A motivated and uncorrupt public service. Perhaps not possessing all the necessary management skills, but making up for this by a commitment to service and to hard work.

A society where individual effort is reinforced by the input of non governmental organizations.

As society where people respect the rule of law, as well as the lives and property of their fellows.

Thirdly policies that are conducive to economic growth. Policies that

- encourage individual initiative and entrepreneurship

- enable market forces to operate in a creative way

- recognize that whatever the supportive role the State might play it is the private sector that is the engine for economic growth

- involve the minimum rather than the maximum of State regulation

- are clearly spelled out, and readily understood, and have an element of continuity.

In developing societies, and especially where there is a wide gap between the developed and the under developed, the skilled and the unskilled, the rich and the poor, Governments have a vital complementary role to play in reinforcing and underpinning the role of the private sector and of market forces

Governments must

- establish a clear legal framework within which business can operate

- provide essential infrastructure at a stage when the private sector is not available to do so

- assist in the raising of the level of productivity by ensuring that education and housing, and transport and essential social services provide an environment conducive to higher productivity.

- adopting taxation and budget priorities that ensure that the wealth generated by economic growth benefits the broader society and contributes to developing the human capacity of its citizens.

While the governments should play a supportive, and at times even a regulatory role, governments should never compete with the private sector or monopolize in areas of economic production.

Governments should be partners with the private sector, but not the competitors.

Many Governments in Africa are adopting macro-economic policies along these lines. They are restructuring their economic systems and revisiting the relationship between the state and the private sectors.

This process is often painful and is certainly not universally popular, for, the initial impact of restructuring is a reduction of jobs and an increase in prices.

It would have been easier for African Governments if they could have implemented this reconstruction in a closed economy operating behind a protective wall of tariff barriers.

But they cannot. The process of globalization that is taking place requires that they open up their economies and bring down the tariff barriers and simultaneously restructure their economies to make them internationally competitive.

The process of economic globalization and the emergence of a world free trade order hold great potential for all countries. But for the less developed countries, such as in Africa, they hold great dangers. For these countries, the restructuring of their economies is much more painful, and the risk of political instability during the course of this restructuring is real.

What is more, there is a real risk, that countries in which the levels of education and technology and infrastructure have not reached the threshold necessary for a successful entry into a competitive global economy, will simply be left behind in an unequal race for riches.

Much has been said about what Africa should do to put its economy in shape and to create conditions for an economic lift-off.

But what should the developed world be doing to create conditions which will help Africa to succeed.

1 Consider ways and means of eliminating or at least easing the massive debt burden that Africa is carrying.

This debt burden that was incurred by past governments, often on the inappropriate advice of the lenders, is keeping African countries on a treadmill of stagnation instead of putting them on a road to success.

In December 1992 Mr. Boutros Boutros-Ghali, the then UN Secretary General, addressing a panel on African Development described external debt as "a millstone around the neck of Africa". He went on "Easing the continents debt burden must be a priority for the international community".

A start has been made in the implementation of debt-reduction initiatives such as Highly Indebted Poor Countries (HIPC) and Special Financing Mechanisms (SFM).

Yet, Africa's debt has risen from US$ 280 billion in 1992 to US$ 315 billion in 1997. The debt service accounts on average for 25% of export earnings.

Perhaps mechanisms could be found to linking the easing of the debt burden to progress in the fields of political and economic reform.

2 Open up their own markets to exports from Africa. This means dropping