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 tariff barriers and dismantling other protectionist mechanisms designed to prevent goods produced domestically from facing competition from goods produced in Africa.

The introduction of the African Growth and Opportunity Bill is an important step in this direction.

But the follow-through will be even more important - and perhaps more difficult.

There are powerful protectionist forces in evidence in the USA who will become more active and assertive when they perceive that American jobs are threatened by foreign imports. In general these protectionist forces will respond by demanding more restrictions on foreign imports rather than more efficiency in domestic production.

A classic example of this was reported in the South African media only two weeks ago.

ISCOR and Highveld Steel and Vanadium, two private sector companies quoted on the Johannesburg Stock Exchange, have developed modern techniques for manufacturing high quality carbon steel plate at internationally competitive prices. As the import of this steel from South Africa jeopardized two steel manufacturing plants in the USA these South African companies have been prevented from selling steel in the US at less than a floor price determined, not by the market forces, but by the US Department of Commerce.

As a consequence South Africa's export of steel to the US plunged from 65 454 tons valued at US$26 million in 1996 to zero in 1997.

The reciprocal opening up of US and African markets will have to take place on an asymmetrical basis. By this I mean that the opening up on US markets to Africa, whether measured in terms of the number of listed items or time frames, will have to be more rapid than the opening up of African markets to the US.

The reason for this is simple. The risks attendant upon "opening up" are far greater for the small and fragile African economies than for the huge and stable US one.

The African countries will have to be given the time and space in which to reconstruct their economies and absorb the social and political pressures flowing from this reconstruction.

And African Governments will have to be given time to adjust their sensitive budgets to the elimination of tariffs which provide a significant portion of their national revenues.

3 The mere opening up US markets to African trade on its own is not enough.

I am sure that no-one simply wants Africa to cut down its remaining forests to export timber; or to mine its minerals until its resources are exhausted; or till the African soil to find that its hard-earned agricultural products cannot compete in the face of massive farm subsidies in the wealthy countries of the world.

If the USA and other developed countries are serious about helping Africa through trade they will also have to assist Africa in increasing its manufacturing capacity even if this means creating competition for their own domestic output.

This will require inter-alia

Direct foreign investment in Africa.

The transfer of technology to Africa.

The improvement of skills and the enhancement of managerial capacity of Africa.

The building up of partnerships, not just financial, but human and managerial.

Helping to unlock the reservoir of human potential that lies dormant, in Africa.

I am often asked whether I am optimistic about the future.

Optimism is a state of mind, rather than the product of rational judgement.

I am an optimist by nature. How else would I have endured forty years in opposition facing the likes of Dr Verwoerd, Mr Vorster and Mr PW Botha!

On balance I am hopeful about the future of Africa. I am quietly confident. I am positive. I don't ignore the problems of nor the problem areas on the African continent.

Yet, seen in its totality I sense that the African tide has started to turn.

Whether that incoming tide will lift the economy of Africa and the living standard of its people to new heights will depend in the first instance on the people of Africa themselves. However, in a world with a globalized and competitive economy it will also depend on the attitude and actions of the developed nations of the world.

Africa will not be helped by handouts, but it will by partnerships; by carefully structured and targeted aid that will assist in moving Africa from an era of dependency on to one of self reliance and of self fulfilment.

I am pleased to be here with you this afternoon--and I bring warm greetings from Secretary of Transportation Rodney Slater.

As you do, we see the promise and the challenges of a new, emerging Africa. Clearly, we are living in a time of tremendous hope for the people of this great continent. Democracy is on the move. Some two dozen freely-elected governments are in place. That is five times the number that existed a decade ago. Information is more accessible through a freer press. Nations are liberalizing their economies and their people are beginning to reap the benefits of free markets and economic reform.

Clearly, the marginalization of Africa is over. And we have a responsibility to work for continued peace and stability in Africa. We must find ways to secure Africa’s gains, to enhance them, to build on them so that the many nations of this great land can be prepared to fully participate in the global economy of the 21st century.

As Africa’s nations join the global march toward freedom and open markets, our nation has a deep interest in helping to ensure that these efforts pay off.

A vibrant Africa with strong political and economic ties to the global community is an Africa of greater stability, expanding markets, and stronger partners; partners that will form a region of nations with which America can meld so that we can work for peace, fight disease, protect the environment, and make our economies grow and provide for our people. That is good for Africa and that is good for America.

Every day the world grows a little smaller and a little closer, presenting new challenges and opportunities and we must stand ready to work together face these new demands and seize these new advantages. No longer can we think in terms of "yours" or "mine;" we must think of "our" because we are rapidly becoming a global society, a world without borders.

President Clinton has worked for several years to make America more active on the continent of Africa. His initiative, Partnership for Economic Growth and Opportunity in Africa-and the bipartisan Africa Growth and Opportunity Act now before Congress- will fundamentally alter the nature of America’s relationship with this promising continent.

These efforts to move America into a closer relationship with Africa will encourage more economic and democratic reforms; will open markets to trade and investment; and will enhance African peacekeeping capabilities. And I am proud to assure you that the Department of Transportation is not just involved in these efforts, but is committed.

For example, the Department is working toward increasing and facilitating air service by encouraging international airlines to establish African hubs and marketing agreements.

The Federal Highway Administration has established a technology exchange center in South Africa to promote American highway technology, to develop linkages between the private sectors in the United States and Africa, and to train specialists from both countries. Nations have long appreciated the value of roads in economic growth and prosperity.

The Federal Transit Administration, my agency, has accepted the challenge of working to improve public transportation in South Africa. Public transportation gives people the mobility that they need to lead enriched, productive lives, and improve the quality of life in their communities. Let me tell you what FTA is doing in South Africa.

To give you a bit of background, the public transportation system in South Africa is composed of regulated, subsidized buses, which operate, with uncoordinated routes and poor signage, inside the cities, and minibus-taxis, which transport people between cities and townships but provide no intracity service. Public transportation is used primarily by very poor blacks, who live in the townships surrounding the major cities and suburbs, but come into the cities to work.

Minibus-taxis, historically, are unregulated, unlicensed, unsubsidized, privately-owned, shared-ride 12-to 16-passenger vans that operate in a free-for-all manner.

The competition between them is fierce. The vans, themselves, are in very poor repair. And minibus-taxis, for the most part, are unprofitable.

Minibus-taxis transport their passengers from townships to cities primarily for work. Drivers wait, idly, for four to six hours until their passengers are ready to go home, then they transport the passengers back to the townships.

The south African Government has passed a law to regulate minibus-taxis. Registration of vehicles has begun, and with it, unique problems have arisen. Minibus-taxi drivers are illiterate. They operate aging (about 10 years old) vans that they maintain with pilfered materials and they are unmotivated to obtain driver’s licenses, have their vehicles inspected and registered, and comply with kind of rules.

The South African Department of Transport is trying to help the provinces develop the capacity to create provincial departments of transport to enforce regulations that will improve safety and service. The hope is that better business practices will evolve and minibus-taxi operations will become profitable. Toward this end, minibus-taxi drivers need training in maintaining their vans, safe driving practices, and customer service. This is how the Federal Transit Administration is helping.

FTA is providing a series of three informational and motivational video tapes, produced by the American Public Works Association. These tapes show minibus-taxis in action with well-maintained vans and with poorly maintained vans, in safe and unsafe driving conditions, providing courteous and discourteous service. The benefits and liabilities of driver behavior are highlighted and minibus-taxi operators are reminded that the law has changed and the government now is regulating their service.

The tapes are filmed in English, Afrikaans (‘Ah-free-’cons), Suto (‘Soo-too), and Zulu (‘Zoo-loo), which of the 14 languages spoken in South Africa, are the languages most widely used and understood.

Currently, the videos are being shown in the Eastern Cape through an innovative venue, they are accompanied by a pictorial workbook, and they will be shown, repeatedly, in places where minibus-taxi drivers congregate during the day.

We want to reach as large an audience as possible because motivating minibus-taxi operators to comply with the law ensures their continued businesses and it improves public transportation for people who really need it.

I have brought a sample of the videos that may--or may not-- help you to appreciate taxi service ion the United States.

I know that all of us, at one time or another, have ridden with the taxi driver from Hades. I know that you appreciate the importance of good, safe, comfortable, efficient public transportation.

Strong, integrated transportation systems are the foundation of any economy--and we want to help our friends in Africa have good highways, airports, and public transit systems so they can be full partners in the global economy.

As Secretary Slater says, we know that transportation is about more than concrete, asphalt and steel. It is about providing opportunity and mobility to people and ideas. It is about advancing the cause of freedom. It is the tie that binds people and nations together.

The commitment of the Foundation for Democracy in Africa and the Institute for Democracy in Africa to work toward sustainable and reciprocal economic, social, and political relations between Africa and America and Africa and the world is commendable and encouraging. It is imperative that we strengthen these links because, as President Clinton said: a prosperous, democratic America needs a prosperous, democratic Africa.

Some believe the bill would place onerous standards on African governments. However, the criteria call for such participation requirements as protection of property rights, reduction of high import and corporate taxes, elimination of corruption and observation of the rule of law. These and other criteria are minimal, reasonable standards for nations doing business with one another.

The criteria represent international standards. They are not U.S.-imposed standards that are unworkable in the African context. Ugandan Ambassador Edith Ssempala has said they are necessary to encourage African nations to address issues they might choose to ignore otherwise.

The U.S. is not forcing any African nation to meet these standards, and if any nations believe these standards to be too stringent, they are welcome not to participate. We have a right, and indeed an obligation, to set standards for any economic benefits we convey to other nations.

Many African nations already adhere to these standards, and others are attempting to abide by what are reasonable reforms for nations intending to engage in international trade. Those that are enacting the criteria have been successful in creating economic and political stability.

The bill makes it very clear that human rights is a major concern for the U.S., and any African nation that refuses to abide by international human rights protocols is not welcome to be a part of this process.

Initially, the number of nations participating in this program likely will be fewer than 10. The Administration and Congress have some differences on the scope of participation. The Administration would like to work with only a few nations in a process that is more confidential for diplomatic purposes, while Congress wants a transparent process through which as many nations as possible know where they rank and are able to correct what is necessary to be included.

At independence in the sixties the prognosis for most African countries was imbued with a high sense of hope, optimism and promise. With independent control of its affairs, Africa was expected to develop in leaps and bounds. Midway into the decade of the 70s the initial euphoria gave way to the harsh reality of interaction in an international arena powered by the ideological divide of the Cold War. By the 80s the remaining vestiges of hopes turned to disillusionment, despair, and despondence. Independence brought in successive manner new and much more damning forms of deprivations, insecurity, conflicts and immiseration to the majority of the African people.

The end of the Cold War removed the proxy cover for leadership and administrative inadequacies in and around Africa. Thus response, by the beginning of the decade of the 90s the majority of the African people as opposed to its leaders sought an end to the old styles of governance and deprivations. However, since the beginning of the 1990s, the African political scene has witnessed a number of changes, mostly representing positive developments. Following the ouster or removal of many dictatorial, autocratic and racist regimes, other remarkable changes occurred through a visible and palpable liberalization of the political space in many countries of the continent.

This has both inspired and facilitated institutions of civil society to contribute more meaningfully to the development process while creating a sort of countervailing power to the institutions and activities of the State. This trend gives rise to hope and optimism for the future. Yet, in other respects similar positive developments are lacking, especially as regards the contents of the ongoing liberalization processes. More specifically, the challenge is to institutionalize and sustain the political liberalization and to translate political liberalization into increasing improvement of the welfare and well-being of the people. The welfare of the people and the quality and performance of their leadership are closely linked.

Hopes and expectations are high, as are fears that this may not come to pass. In some African countries, a reversal of some gains of political liberalization has already occurred. In others, mutinies have undermined stability and caused renewed foreign intervention. In yet others, only adroit negotiation and political sagacity of the leaders saved hard-won accomplishments.

While the wave of democratic and economic reforms may be sending some promising signals from across the continent, progress in these areas is also generating conflicts that are paradoxically retarding progress. In many countries, long years of repression either under military rulership or one party dictatorship have given rise and bred a highly militarized political culture and model, creating an environment and atmosphere that neither recognizes nor tolerates dissent, dialogue, compromise or negotiations.

Obviously, the creation of a liberal political space and the emergence of institutions are not an end in themselves. They must be complemented by a process of sustaining the democratic gains. The institutionalization and reinforcement of political liberalization in Africa must be based on mechanisms and modalities as well as enhanced quality of leadership in a broad range of institutions of civil society. Their fledgling capacity must be shored up to assist in the delivery of the goods of political liberalization.

Although many countries have moved away from the one party state in form, in practice the institutions remain unaffected. Thus, although the executive is nominally accountable to parliament, parliaments tend in many countries simply to do what the executive wants in an uncritical fashion. They are failing to hold the executive accountable, and thus feeding popular disillusionment with the system. The practices of the past are of long standing and are well-entrenched. Yet they must be eroded if democracy is to take root.

As early as 1992, keen observers of the African political scene have consistently argued that the entire democratization process might be jeopardized sooner or later. Rene Lemarchand for instance has pointed out that, "...it is one thing for an urban mob, a guerilla movement or a national conference to bring about the fall of a dictator, the construction of a democratic policy is an altogether arduous undertaking..." Striking a not too dis-similar tone Robin Luckham averred that, "civilian rule may be a necessary condition for the consolidation of democracy, it is not a sufficient condition." President Nicephore Soglo of Benin also pointed out that, "Such is the level of aspiration of our people in relation to the weakness of our economy that a forceful comeback of the conservatives and the collapse of the democratic process are not to be excluded."

In what some cynics have described as a self fulfilling prophecy, a 1996 report of the US Central Intelligence Agency, suggested among other things that the risk of a democratic government collapse was highest when infant mortality rates were high and foreign trade volumes low. The report went on to identify seven countries which it identified as high risk countries in Africa. Two months after it was published, Niger, one of the identified countries reverted to military dictatorship. The publication also predicted that a not too dis-similar fate might befall Central African Republic, Mali, Zambia, Madagascar, and Malawi.

The above aptly summarizes and defines the problematics of the democratization process in Africa. To be certain, the ongoing democratization project in Africa is obviously under several threats at different levels and in different forms. To cite a few of such obvious threats, one must acknowledge the negative consequences of the following factors:

a. The deepening levels of poverty further intensified by the spate of badly engineered economic reform frameworks, the increasing and intensifying nature of internal conflicts as the scramble for limited resources takes place in a liberal environment;

b. The absence of strong institutions of civil society;

c. The limited capacity of the African states;

d. The perception and conduct of politics as essentially the authoritative allocation of values carried out before greedy eyes and grasping hands. These are some of the added strains on the sinews of the fledgling African democratization process.

Set against the above background, the major task ahead remains essentially the sustenance of the ongoing process of liberalization. Within this purview the essential issue to resolve is the role of civil society organizations in the process. Without a doubt, I remain convinced that essentially the principal responsibility of CSOs whether operating as Community Based Organizations (CBOs), Non Governmental Organizations (NGOs) or professional associations or special interest groups is that of the continuous expansion and defense of the liberal space. This is not such an easy task. For this and other reasons it is therefore of extreme importance that the activities of CSOs in Africa must be based on a structured understanding and informed by an interpretative analysis of the African political reality. In this instance it is imperative that we seek to move beyond the enthronement of donor democracy and seek the emergence of liberal political structures that is reflective of our own realities. We cannot for instance take lock, stock and barrel the current imposition of limited state. Granted the state must certainly be rolled back, at the same time a weakened state is perhaps the greatest threat to the survival of liberal politics. What is more in era of increasing globalization, our state will be forced to negotiate and engage extremely powerful transitional corporations and NGOs. A severely limited state cannot and will not extract from these ultra powerful entities the best deal for us as citizens. It is thus incumbent upon us to effect a sustained modality for strengthening the institutions of the state without of course compromising on realization of an ideal social order. As a fundamental step it is also very important that we identify the parameters of a just social order and sensitize to our audience. At the core of our individual collective and varied efforts must be the unwavering but resourceful pursuit of the effective applications of the principles of good governance such as the rule of law freedom from arbitrary arrest, freedom to pursue individual or collective endeavors within the ambit of the law. Ours must be a desire to continue the push for a departure from our lived experience of the whimsical rule of a few. The creation of an orderly and non-disruptive conduct of government business.

This can and should be done through the creative deployment of programmes and activities that takes them through. To borrow a worn maxim, the price of liberty is eternal vigilance. However, it is important for the civil society organizations to understand a fundamental truth that the justness of their cause is not a sufficient guarantee of success at effectuation of the liberal paradigm that is desired. It is of course safe to assume that the current beneficiaries of the prevalent order might for fear of losing under anew and just social order resist any attempt at change. Again it is to be noted that most of our current genre of political leaders are themselves reluctant democrats these are individuals who have by simple force majeure been forced to become democrats. What we have I Africa today in most cases is simply what I will call donor democracy. We have a situation wherein our leaders beg for money to finance elections, etc. Some of the leaders still find it difficult to accept that the genie has been let out of the bottle and we can no longer put it back.

At another level and as a corollary of the above in practice the concern must surely be how to institutionalize and sustain the political liberalization of the country and how to translate political liberalization into increasing improvement of the welfare and well-being of the people. Politics and the clamor for improved governance is at the end of the day a bread and butter issue. The concern of the ordinary African in most cases revolves around how to make his life move forward, how to increase the quantity and possibly quality of food available on the dining table. Understandably and legitimately too, the patience and faith of the people could be limited having been severely disappointed in the past. And as J.C. Davies once noted:

One must indeed acknowledge the valiant efforts, dogged pursuit and the tireless courage of the myriad of groups and movement currently clamoring increased of the political process in Africa. However, as in most parts of the world good intentions are not enough in societies powered by hard headed, shrewd and calculating power addicts. Without a structured and informed understanding of the interface of our societal dynamics good intentions naturally comes to naught. There would be nothing to effectively carry on the ideals for which personal liberties, limbs and lives have been surrendered. At best there would be sporadic violent outbursts. It would be nothing sustained or sustainable.

I believe the emergence of the FDA is indeed time honored. The important question to resolve is whether the promoters of this idea have enough verve, commitment, sense of mission and purpose to go beyond being just another of those organizations. The task FDA has chosen for itself is hard. The road may be rough and will certainly not be exactly easy. However, FDA can and should make a critical difference. The FDA must seek to distinguish itself from the usual motley crowd of "do gooders," fly by night, live in a briefcase development experts that thrive on Africa’s misfortune. It must and cannot afford to be labeled as part of that infamous group derisively referred to as Lord of Poverty.

The FDA must seek to carve a niche for itself by utilizing its presence in a city such as Washington. The emergence of the FDA as an African led, African managed CSO in the US must be used to maximum effect and advantage. It must seek to promote and inject an African perspective to the several debates and discussions on and about the now emerging US African policy. It must strive to synegise its knowledge of the African political scene and its knowledge of the mechanisms of American politics and policies, the American society and its Washington contacts for the overall benefits of Africans and their responsible governments. It must as matter of necessity maintain a close liaisoning and relationship with African based civil society institutions and use the outcome of its consultation as a key ingredient in its contributions to the several debates. Again, it is also imperative for the FDA to show the initiative. I believe that a simple initiative or if you prefer an undertaking such as the creation of an index on good governance will be a formidable tool in the effective operationalization of the Opportunities Growth Act if it eventually sees the light of day.

The FDA can also utilize its resources and contacts in assisting to improve the capacity of CSOs by improving the quality and performance of civil society leaders through a series of well thought out training schemes. In my view a lot of the civil society leaders in Africa have their hearts in the right place. What most of them lack is the capacity and the skills to effectuate in a less hazardous manner and in a somewhat more sophisticated manner the desires of their heart. It is important that the cumulative experience on the effective functioning of civil society institutions be placed at the disposal of these category of leaders.

It’s an honor for me to address this important Conference and I would like to take this opportunity to extend to my brother and friend Fred my heartfelt thanks for having made this event possible.

Indeed, the Role of NGOs in sustaining democracy and economic development in Africa seems to be a secondary subject when one thinks "big business." But we, Civil Society Organizations, believe that this partnership is, as important as these businesses. Let us see how?

It is worth recalling that this important Conference was initiated and organized by the Foundation for Democracy in Africa, renowned NGO in the world. One element features prominently as a major topic and has to do with partnership.

I see such a partnership flagged into 3 components.

1) Partnership among African governments, NGOs and private sector. One of the best ways to implement democracy and economic development is to involve the Civil Society Organizations and private sector at the design, formulation and implementation stage of programs and projects. Public firms are being privatized and consequently governments should partner with the private sector. Good governance and empowerment of the population must take into account the contributions of women, youth, trade unions, grassroots organizations, handicapped, and various other NGOs.

To implement this partnership, African governments should develop the relevant legal environment versus the private sector and Civil Society Organizations.

The latters are required also to apply good governance and improve their relations with governments.

2) Partnerships among African and International institutions, such as governments, NGOs, private sector, multilateral and bilateral organizations, Corporations, Foundations. Development of trade and investment cannot be left only on the hands of governments. In order to have a positive impact international partnership with all development institutions and organizations as well as the private actors must be developed, and sustained.

Here, I am glad to recall that RADEV was delighted to be associated with the FDA, Partnership Africa Canada, Television Trust for the Environment in this endeavor.

3) Us Trade and Investment in Africa. Regrettably the 1980s were stamped with unsatisfactory performance eliminating in being called the lost decades.

Let us not repeat that same trend for the 2nd millennium. In order to overcome these shortcomings, trade and investment development programs undertaken by USA should take into account small and medium enterprises, cooperatives and regional capacities through the creation, addition and improvement of:

a) Extension services

b) NGOs capacity building

c) Micro-credit institutions

d) Training and education

e) Debt-swap for development.

African governments should also be required to:

a) effectively participate in trade negotiations

b) make use of the President Clinton’s Initiative

c) realistically participate in trade policy setting and review: World Trade Organization and Unctad.

4) The Role of African and American NGOs. NGOs, governments and private sector share to play a common public service mission, but have differentiated responsibilities and competence. Indeed, NGOs have a distinctive role to play in building trade capacity as a result of their long-standing operational experience at the grassroot level. Likewise governments, private sector and NGOs have a substantial and legitimate role to play in ensuring that the benefits and costs of trade liberalization and American investments are equitably distributed. As representatives of Civil Society, NGOs sincerely wish to contribute constructively to the American Trade Initiative. This will ensure the promotion of deep expertise and commitment in their missions and will contribute to the productive growth of American trade and investment in accordance with development priorities. In this endeavor, NGOs’ ability to advise and assist in the design and delivery of services to both communities and traders cannot be overemphasized.

Finally, Mr. Chairman, allow me to take this opportunity to propose that our next conference take place in Addis Ababa, Ethiopia.

Once an importer has a product in mind they must call their local Customs port and talk to an import specialist (located in most major cities). They must find out first, if the product is allowed or not.

Not all fruits and vegetables are allowed, it depends on which country they are coming from (the Department of Agriculture has a list of products which are allowed from different countries). Some agricultural products may be allowed in New York and not in Florida. For example, maybe because of the weather, that specific product poses a threat of disease in Florida and not in the North, etc. So it is important to contact the port where the merchandise will be imported.

Textiles are subject to visas (an endorsement in the form of a stamp on an invoice or export control license which is executed by a foreign government and must be obtained from the country of origin of the merchandise before the merchandise is exported), and/or quotas (a quantity control on imported merchandise for a certain period), depending on the country they are coming from. If you do not have the correct visa you will not be allowed to import the product. And if the quota is closed the merchandise cannot be imported.

Some agricultural and dairy products have quotas, and even though you may still import those tariff rate quota products all the time, once the low rate tariff is filled the other tariff might be so high that it would not be profitable to import that product. Some quotas are larger than others, so find what the limits are for the country you will be importing from. These quotas are set every year and they may change in your favor.

On the other hand, there are many products which are not subject to quotas and visas and can be imported free of duty from various countries under different trade agreements. Many products are free of duty from many countries in Africa under the Generalized System of Preferences.

An importer should find out all the restrictions before incurring into any expenses. Someone imported some jackets for the World Soccer Cup last time it took place in the United States and his merchandise was seized because he did not know he had to have permission from the trademark holder. If the merchandise has a tradename which is registered, you must have permission from the trademark holder to import that merchandise.

Well, after you find out if a product is allowed and whether duty will be paid, or if it is free under the Generalized System of Preferences. Importers must be aware that even though Customs does not require a license to import, other agencies may require a license and/or a permit. The Food and Drug Administration requires registration of low-acid or acidified products in any kind of container before they are imported and they have other requirements for individual products (they check for pesticide levels in fruits and vegetables and other products). The Department of Agriculture requires a permit to import most fruits and vegetables. The Bureau of Alcohol, Tobacco and Firearms requires a permit to import alcoholic beverages, and most states require a license.

You may facilitate the release of your cargo by including a clear and detailed commercial invoice and packing list so that Customs inspectors can determine the following:

~ The value of the goods for Customs purposes and their dutiable status.

~ Whether the goods must be marked with the country of origin or require special marking or labeling. If so, whether they are marked in the manner required.

~ Whether the shipment contains prohibited articles.

~ Whether the goods are correctly invoiced.

~ Whether the goods are in excess of the invoiced quantities or a shortage exists.

~ Whether the shipment contains illegal narcotics.

As an import specialist I used to go with inspectors to examine the merchandise. He would look at the invoice and packing list to look for marks identifying the merchandise. Sometimes we wanted to verify markings in watches for example and if different items were involved we needed to see in which boxes watches were found. Boxes 9 and 10 for example. If the invoice and packing list are not clear the release of your shipment will be delayed.

We do not have time to talk about all Customs requirements, but remember you may call US Customs and we will give you all the information available to us and we will tell you who to call to obtain the required rules and regulations from other government agencies.

The Critical Role of Maritime Transportation: Understanding Common Shipping Documents

When it comes to doing U.S. Trade and Investment development with Africa, what crosses our mind is export from the standpoint of the U.S. manufacturer or commodities producer since Africa’s needs of capital goods are tremendous giving the low level of development. However, let me emphasize here that there are plenty of exports prospects from and within Africa: fish, lobsters, tropical crops, textile fabrics, crafts, minerals and other that provide opportunities for U.S. investors and U.S./Africa joint ventures.

Regardless of whether we are talking of exports to or from Africa, when contacts are established and negotiations are concluded between a U.S. and an African business person, when buyer and seller agreed upon terms of transaction by words of mouth or by way of contracts, the shipping of goods is the critical step of the business process.

Needless to say that Transportation covers a wide area including air, land sea, and even increasingly electronic communication etc... Let me focus only on Carriage of Goods by SEA since it is the cheapest way for transporting goods overseas when big quantities are involved. Almost 90% of international commerce cargo are moved by sea.

But before we can talk about shipping, we must understand the notion of common forms of contract of sale of goods to an overseas buyer: the CIF, C&F, FOB, and EX-WAREHOUSE Contracts.

1. The C.I.F. Contract: This stands for: Cost, Insurance and Freight. What that means is that the seller contracts to deliver the goods at the destination port nominated by buyer freight and insurance paid by the seller himself.

2. The C&F Contract: Cost & Freight The Seller contracts to deliver the goods at the destination port nominated by Buyer. The insurance is Buyer’s charge if any or the risk will be bore by him.

3. The F.O.B. Contract: This stands for Free on Board. What that means is the seller has an obligation to deliver the goods on board vessel and the buyer must pay the freight, insurance and any other expenses which occur during the voyage at buyer’s risk.

4. Ex-Warehouse Contract: Here the buyer purchases the goods from the seller premises, with the understanding that he will be in charge of removal from the warehouse and transport then to destination.

When an exporter, agent, broker or anyone else who sold goods to an overseas client and selects (on the grounds of cost and convenience) a shipping line to carry his goods, he is delivered a set of documents known as "Bills of Lading." Most shipping lines have their own form of Bills of Lading.

The Bills of Lading serve three functions:

1. Document of Title to the goods once they are shipped

2. A receipt for the goods delivered to the shipowner or carrier

3. Evidence of the contract which has been entered into between the shipper of the goods and the shipowner.

When we talk about International Trade, the common practice is that the shipper or exporter seeks the services of an Export Agent to avoid all the bureaucratic headaches or a Forwarding Agent. The Agent’s duties are to ascertain date and place of sailing, obtain a space allocation and fill the blank spaces in the printed bills of lading indicating a) the name of the consignee, or person to whom the goods are to be delivered; b) a description of the goods (including the shipping marks on bags, cases or bales) for identification and stipulations such as time and place of the freight paid or to be paid and some other details. The Agent also arranges for the goods to be brought alongside, on the dock at ship’s tack, (meaning in a position to be loaded on board vessel); the Agent also makes the customs entry and pays any dues on the cargo. When shipment is completed, he collects all the Bills of Lading (except one that remain with the vessel as part of ship’s documents for the voyage) and sends them to the shipper. The Ship’s Manifest is a collection made up of all the different Bills of Lading. The Carrier employs a Loading Broker or a Shipping Agent whose duty is to advertise sailing dates, arrange loading and sign the Bills of Lading and issue them to the Forwarding Agent in exchange of freight payment. It is common practice that the shipper ensures the goods against marine riks, war, fire, leakage, breakage, theft and other forms of damage etc..

Now let’s come back to the critical functions of a Bill of Lading mentioned earlier at the beginning of our review:

1. The B/L as a Document of Title to the Goods: The possession of a Bill is considered before the Law as possession of the goods. It allows the holder to obtain delivery of the goods at the port of destination.

2. The B/L as a Receipt: The B/L is a Prima Facie evidence that the quantity of goods loaded on board have been shipped in fact.

3. The B/L as Evidence of the Contract: This is considered as evidence that the shipper of the goods and the shipowner have entered into contract of carriage of goods by sea. If the shipper is also the Charter (meaning the one who leases space within the vessel), his relationship with the shipowner will be governed by a contract of carriage of goods by sea called a Charterparty and the Bill of Lading contains the same terms as those of the Charterparty.

Finally, an invoice is included to the set of documents to complete the shipping documents.

In all instances, the documents are attached to a draft or bill of exchange drawn on either the consignee or on a bank named by him.

If the goods are paid for by the importer by way of cash, letter of credit or any other legal means, the exporter may send directly to him (as the consignee) and in that case his name and address will be recorded in the Manifest.

He may send them also to his Agent abroad (if any) as the consignee or his banker requesting him to collect from the consignee (or the bank named by the consignee), the amount indicated on the invoice against delivery of the documents which allows access to the goods delivered. He may discount the bill of exchange with this banker for a quick cash credit less a small commission. In that case the bank becomes the seller of goods because it holds the original Bill of Lading that allows possession of goods.

I provided a somewhat simplified review of basic elements of a shipping contract process. That process operates accordingly to well defined principles and practices. An error or oversight in that process or any failure to carry out the terms of that process, not only prevents sound Trade development, but creates numerous problems for livelihoods of everyone involved: Shippers, Agents, Banks, Stevedores, the exporter, the client, insurance, port authorities and others.

Although Shipping is the most serious and pivotal component of Trade, this is a much neglected area of trade and Investment promotion. "Trade" is not simply a "deal" between Buyers and Sellers. It is also a complex Transportation Infrastructure issue.

While the infrastructure component of Trade is nothing new to those engaged in the trade process, there has been little attention paid to investing in and assisting the enhancement of the Transportation capacities of Africa’s transportation infrastructures in particular. Much more can be done to expedite and expand trade with Africa to and from through improving Transportation related development. Having trade offices, trade missions, trade conferences, trade studies and trade development programs for Africa are all important. However, without investing in an African Transportation and without inclusion of African Transportation interest and concerns in all aspects of trade development, the full realization of African Market Development continues to have many constraints.

Many trade improvements are feasible if more resources are made available for transportation improvements. The latter include such steps as building infrastructures, maintenance training, expanding low cost electronic connectivity, advancing inspection capabilities; and development of easily electronically accessible information resources on buyers, sellers shippers, agents, warehouses, port authorities, inspection authorities, laws and regulations, insurance, banking and the goods and products, their costs, quality and safety offered by manufacturers, retailers and others.

Africa is a vast continent of 53 countries and 53 Presidents with a population of 600 million people of which 51% are women. The continent is at a cross road in the transition to the 21st Century and continues to face severe economic and social problems. Yet it must even now harness various positive regional and global experiences and opportunities if it is to emerge early in the next millennium well on the way to self sustainable growth, dynamic and be globally competitive.

The region abounds in raw materials and human resources many of them untapped. In the midst of these abundances, Africa remains the poorest region on earth. The inability of African economies to turn the tide of under-development, low food production levels, balance of payment difficulties, inflation, rapid population growth, low or negative GDP growth rates, decline in social services and deepening human crisis have brought to the force discussions on the role of women entrepreneurs in the development of the informal productive sector in a well structured economy.

In the last twenty years, the world has become so structurally interdependent, but African countries continue to be characterized by wide spread poverty, high level unemployment, lack of access to basic necessities of life, high dependency on few commodities for both employment and foreign exchange earning and also high debt burden. Most African countries are undertaking Structural Adjustment Programs (SAP) to overcome the above stated problems. Under these very difficult conditions, some countries have achieved some growth rate, progress however has been insufficient. Economic growth rates remain far too low in many countries often than not, exceeding population growth rates. The overall socio-economic situation in Africa continues to deteriorate.

Constraints in doing business in Africa apply to existing and potential entrepreneurs.

a. Unfavorable business climate

Unfavorable business climate which refers to the unwillingness of investors and entrepreneurs to risk their capital, time and other resources in the expectation of future returns. At any level entrepreneurs cannot strive hard in a context of instability, especially political instability. Africa is loosing billions of dollars from foreign and indigenous investment with risk associated to civil unrest and weak government institutions.

b. Lack of Business Confidence

Lack of competent economic management, inefficient civil service and inadequate infrastructure. Business confidence is also affected by the level of incompetence of civil servants and the attitude of public figures towards private sector enterprises.

c. Uncoordinated policies on business promotion and development

i.e.: Financial policies, trade policies (locally and internationally).

d. Deteriorating infrastructure.

One of the casualties of Africa’s poor performance in 1980s and 1990s is the deterioration of infrastructures particularly in transport and communication, technology, electricity which work erratically in some countries, congested ports due to poor facilities and badly surfaced roads resulting in delays. These inadequacies push up cost of handling imports and exports of women entrepreneurs and hamper intra African and inter continental trade.

Other constraints faced by women generally include the lack of investment and working capital, poor transport and communications infrastructure and difficulties with foreign exchange.

In the light of the many difficulties and continuous and deepening crises in Africa, some African governments have initiated some on going activities to improve the economic growth performance in their countries in the following areas:

(i) the realization of the significant role of women entrepreneurs in the implementation of the New Initiative for Africa, a United Nations New Agenda for the Developmental of Africa cannot be over emphasized.

(ii) if Africa should make a headway, political stability is the primary pre-condition for doing business, for investment, economic development, growth and prosperity of all African countries and the world as a whole. Without political stability and good governance, there will be no significant increase in the promotion of indigenous entrepreneurship or foreign diect investment. Some African governments are showing political will for resolving conflicts using the OAU mechanism and also including women in conflict resolution teams.

(iii) Harmonization of Regulatory and Legal Framework. African governments are fine tuning their policies in order to synchronize trade procedures and facilitate the promotion of SMEs. Reversing the neglect and open hostility with which small and medium businesses were being treated in the past is one of the most important responsibilities of African governments today through the ministry of Trade and Industry. Private sector businesses in Africa today demand firm and focused response.

(iv) Support for private sector as the engine of growth and employment and income for approximately one third of Africa’s work force. However, because of past neglect, the income SME sector currently generate are often low. For this reason, the contribution of the small business sector to national development is very much limited.

(v) For over a decade, some African governments in partnership with the Private Sector organizations have set up challenging goals which reflects its determination to succeed in SMEs initiative.

The major steps to be taken to implement strategies for establishment of viable private sector businesses and atract foreign director investors into Africa is as follows:

1. The diversification of the sector away from its present reliance on buying and selling towards higher value-added activities such as manufacturing, agro-processing, skills and trades development.

2. The creation of employment opportunities for an estimatedd one third of the population of Africa.

3. Create environment for local and foreign investors.

4. Remove barriers to establish businesses and provide incentives for their growth i.e. tax holidays, one stop shops which will process all applications for licenses and permits of businesses at one place.

5. Identify and create opportunities and remove obstacles to business expansion.

6. Champion the cause of SMEs and provide support for entrpreneurs and institutions that promote entrepreneurship.

Ghana, a country in West Africa recognizes the need to reduce reliance on a few agricultural crops. There is a growing demand for locally produced food and beverages. Other industries such ad textiles and garments, packaging, administraive support services, personal care products, cement and fashion accessories are experiencing strong growth.

Ghana in 1983 devalued the cedi. This enabled the government to implement more vigorous economic policies, resulting in the decline of the economy reduced inflation and simplified and lower taxes and tariffs. Ghana is now on the way to transforming itself into a Newly Industrialized Country (NIC) by the vision 2020 program. Other African countries are also coming up with accelerating economic and industrial development to achieve their various visions; Zimbabwe spearheaded industrial growth by 2006 through increased exports, Nigeria vision 2010, Kenya vision 2020, Tanzania vision 2020, Cote d’Ivoire emerging with vision 2025.

Most investment flow in millions of dollars has been in the mining sector due to the reversal in the tradition of state control of the sector in Mali, the South Africa mining giant, Ghana based Ashante Goldfields Company has purchased a mine in Kalana, Mali. Other countries with high foreign direct investment in the mining sector are Guinea, Cote d’Ivoire, Senegal and Burkina Faso. There are still largely unexplored gold stretches in West Africa of 1,300 kilometers.

With increased urbanization more people depend upon agricultural markets for their daily food requirements. Improvements in transport and telecommunications make farmers more accessible and assist in agro business intermediation. Market deregulation creates new opportunities for private agro-entrepreneurs and generates need for business and technical skills, Joint Ventures and other strategic partnerships can help Ghana creat even higher gains and can contribute to local value-added.

In the past 10 years I studied, lived and worked with some of the issues and events that have marked the development of many of the countries that comprise the dynamic growth of sub-Saharan Africa. Today, my colleagues, it is truly an honor and a pleasure to be before this group of intrepid individuals to discuss the concept of doing business in sub-Saharan Africa and what necessary steps that one needs to take to get started.

Ten years ago when I started this adventure, and I say ad-venture for the reasons that "ad", being the root for "positive", and venture, meaning to move "forward", I did so at the level of a student of sociology and anthropology and had the opportunity to study, live and work in the Republic of Tanzania and travel throughout parts of Kenya and Uganda.

As many of us may or may not realize, that like the Republic of Tanzania, many of Africa’s economies are comprised of activities in both the rural and urban sectors. The reality is that for many of these countries as much as 80%, if not more, of the populations of these countries live in the rural sector. The importance of this is that what many of us may not realize is that much of the work we need to focus on--relevant to Business Development in Africa--must take into account this rural population; and, the fact that the predominant economic activity of this segment of the population is in agricultural activities.

Sustainable development recognizes the need for development activities that are socially, economically and ecologically responsible and when applying this thinking to business development in the African context and its role in our growing global economy, one must also evaluate the benefits of a balanced growth between the urban and rural sectors.

On the other side, it is a recent phenomenon, that an increasing amount of the populations have been moving to the urban centres. It is in these "urban centres" that traditional activities mostly in the form of providing and maintaining basic human needs, i.e., food, clothing and shelter, to western contemporary activities such as manufacturing and service industries.

The reality in many parts of Africa today, with the exception of certain areas, is that there is not a regular supply of electricity--it is often intermittent at best, running potable water is a luxury and cash prevails in most commerce transactions. The reason I mention all of this is for the fact that there, in my mind, are two important issues to address before doing any business, not just in Africa, but everywhere, and then you can address how to get started. These two points are:

Why do business in Africa? There is a reason that so many of us here in Miami and the rest of the United States have been focussing our attention on developing business in Africa; whether it be culturally, spiritually and/or even financially motivated. Africa as the "next" or even "last" frontier has incredible human and natural resources, and many of us have heard the statistics--a total population of well over 700 million people as well as mineral and oil deposits greater than most people in this room can even imagine. And as mentioned earlier, many of the countries of sub-Saharan Africa have been working together in the form of trade blocks i.e., SADAC and ECOWAS, it is these partnering of different economies, and intralateral commerce within the African continent that is creating a foundation for solid business practice and stimulating an environment to facilitate business, trade and investment for foreigners in the form of accountability, transparency and profitability in the relationships with their African business partners.

Now, with that being the case, why still would someone do business in the countries of Africa, what is the incentive and what are the motivations. Is the incentive for business professionals to do business in and with the people and communities of Africa, for pure altruism? Are the people in this room all philanthropists in disguise? I know we all agree that we must move away from AID to TRADE. I myself after my first trip to the continent raised funds to build a library facility in a village I done some work in; a micro-enterprise project. I did so, because the people of the community had impressed me with their commitment to work hard to improve the quality of life for the persons in their community. Now my incentive in this is that down the road, the student population who has taken advantage of this facility would be a skilled and trained part of the community e.g. Human Resource Development; so that when I would return there would be a potential pool of skilled and educated young people who are potential employees. My point here is that, I think we can all agree that as business professionals our incentive is the dollar! If one is not already so, it will be the "pro-active" entrepreneur that will benefit the most from doing business in Africa.

I really would find it hard to believe that anyone here would go through the effort of doing business in Africa just for the heck of it... We are in the business of doing business, making money and then taking that money and turning it into more money. And if you are here to find out how to do business in Africa or how to get started, the first place to start with this process is with yourself and to ask yourself the question why, because Lord knows there are easy ways to make a dollar and it does take a special personality to be successful in facilitating good business not just in Africa but anywhere in the world.

Question: Of the people in this room who here is doing business or wants to do business in Africa... Ok, Great. How much money do you expect or want to make through your business activities in Africa?

Example: $100,000.00 net profits per year--great now we have quantified the goal. My next question is well what are you going to do to make that happen?

As both an investment adviser and banker I speak and meet with many persons regarding their businesses and investments. It is all too easy to say, "Well, I’m gonna do a business in Africa..." Great, but what do you do? What is your business, product and/or service?

The way that I see things is that there are two ways to doing business in Africa: Either as a private investor or a hands-on manager /owner.

Being a private investor can be as simple as saying if you pay you can play. Right here in this folder I have a number of investment and business opportunities for people to participate in. Today, individual and institutional investors alike have the opportunity to invest in some of the economies of sub-Saharan Africa in the form of equity, fixed-income and mutual fund investments. For example, on the listed equity side or stocks, investors can, as in the US, purchase individual shares of company stock, like Zimbabwe ltd, Gensec or Renaissance. Or for practicality and/or liquidity purposes, participate in the only open-ended mutual fund investing in Africa, the Calvert New Africa Fund. The Calvert New Africa Fund does equity investments in nine different sub-Saharan stock markets.

When initiating any business I think many of us realise that one needs to literally, eat, sleep and live their company in order to ensure that it is a profitable and viable enterprise. Again with a show of hands how many of us have "lived" in any part of Africa. What was the level of living to which we were at...how is electricity, water, phone service, conveniences? Now if you are, like myself, inclined to that, great! Because until we find a local partner who can ultimately run that company in your absence, we are living in Africa.

Now that we have identified the WHY and WHAT are the reasons and goals for business activity in Africa, we can come to the reality of HOW to do business in Africa.

In my experiences, the three steps to success for business in Africa are:

1) Know your market

2) Go to that country in Africa for an extensive visit

3) Focus on developing brand recognition.

In conclusion I would like to state that, like the Honorable Colin Eglin of South Africa, I too am confident, optimistic and enthusiastic about the future of Africa’s economies. And as we have all come a long way in this process there is still a long way to go.

By now some of the people here may still be thinking, "Well, Oliver, great you have shared your ideas and experiences but I’ve gone through those steps but I need some money now to grow my business. I have tried the traditional routes of OPIC, EXIM, SBA, etc, etc, etc and I am still empty handed."

Ladies and gentlemen, for those of you who know me, know that I am an individual of "pro-activity". I believe in taking calculated risks and moving forward with the appropriate action. As mentioned, I am an investment banker with Hudson Sloane and Co. If you are not getting the money you need then come to me and we can see where and how we can work together.

Secondly, this spring all of you cyber junkies can log on to an Internet service that will be on the web... write this down and look for it... www.africatoday.com. Africatoday.com is a news, information and opportunity service on the emerging economies of sub-Saharan Africa.

Thirdly, I would like to share and announce with everyone that even if you have already been to Africa, we have received the full support and cooperation from both the Republics of Kenya and Tanzania to facilitate a trade mission, expedition and safari to East Africa in June. Write this down, June 24-July 5 I am leading a group of 10 people to the region. This group will participate in the International Trade Fair in Dar-es-Salaam in Tanzania, meet with government and business people and identify opportunities to facilitate real business.

I am convinced that what is currently taking place in the African media today is among the most exciting (and more important) economic, social and artistic developments being undertaken as we stand at the edge of the 21st Century. Digital satellites are beaming their broadcasts continent-wide, viewer-responsive Direct-To-Home technology is offering audiences in Abijian and J-burg more programmatic choice. Meanwhile, Terrestrial cable users in Cameroon are using MMDS microwave receivers to satisfy their fine-tuned broadcasting tastes and thousands of African film and media-makers from around the world make the trek to a town called Ouagadougou every two years to enjoy the best and newest in African cinema and African from Dakar to South Africa, Africa youth are logging on the Internet in campus settings or in Internet/Cyber cafés. This is also Africa today, this is also Africa today.

To better understand the contemporary African media environment (which includes both its traditional media sectors of Film/TV and the new media sectors of Internet/Web technology and digital satellite broadcasting), we must examine the dynamics that have given rise to the present conditions, identify those who are currently invested in the African media infrastructure (including content providers), and finally, understand the important relationship of independent production and content development to contemporary African media.

Because of the fundamental role that media has played in shaping the social fabric of African contemporary society and the fact that many of the dynamics that helped shape the development of film in Africa are still actively present, we will first examine the rise of one of Africa’s earliest contemporary media sectors...film.

By 1900, all of the colonial countries France, England, Belgium (and the United States in the Americas) were using film as a means of dispensing colonial propaganda and to undermine indigenous religious beliefs. Film was used instrumentally as a cultural courier. These films extolled the values of the ruling colonial power while creating a context of buffoonery around the representations of Africans and African culture therefore supposedly highlighting their "backwardness" and inferiority. Through the administrative offices of agencies like the Belgium Missionary Cinema and Ethnographic Film Committee, the British Film Unit, the French Foreign Ministry and the Institute de Hautes Etudes Cinematographiques (national Film School), the process of film training, production, repair distribution and exhibition were entirely controlled by the colonial powers. This was also true for pre-production and post-production processes.

As a result of the tight control that was exercised by the adventure-capitalist, a mystification of the film making process occurred throughout the oppressed communities. The film making process was relegated to the sole province of the European elite.

Education concerning the technical process of film making was nonexistent for the oppressed, resulting in a lack of cinematic expertise thus following the general policies of colonial administrators of preventing the oppressed from developing autonomous, self-referential symbol creating structures. Colonial administrators promoted this dependent relationship while advancing their own culture, history, economic theory, politics and world-view through the new and powerful medium of film.

Colonial films sought to shape the consciousness of the oppressed community as well as to promote alienation among them. The alienation of the subjugated was a critical ingredient for the success of the colonial social order. The colonial film industry was a creation of the colonial administration, and its emergence was expressly concerned with the extension of the colonial hegemony throughout the occupied lands.

The British founded the Bantu Educational Cinema Experiment in 1935 with support from the New York based Carnegie Corporation among other investors. The Bantu Cinema Experiment created 35 films. Most were filmed in what is now Tanzania. By 1939, the British had also created the Colonial Film Unit. The British maintained tight controls over the entire process of making colonial films. Whether it was the use of third-rate equipment, the propagandistic use of racist imagery or the absolute control over post-production, and distribution of the fingerprints of the culture of colonialism loomed large in the British controlled lands of Africa. Further, the British tendency towards what Manthia Diawara calls "techno-paternalism" established a cinematic precedent in Africa for systematically excluding Africans from technical areas as well as institutionally negating Africans from the aesthetics of cinema. In essence, the highly centralized and exclusionary British film experiment was a successful creation of the British’s colonial cultural resources.

The colonial film industry often followed on the heals of military occupation. So, the present-day African countries most affected by the British derivative of the colonial film culture are Ghana, Kenya and Nigeria were also among those most dominated by the British military.

The French controlled areas of Africa dissent was not tolerated and neither was the autonomous use of the apparatus of film making by Africans. This sentiment by the French was crystallized in the "Le Decret Laval" document of 1934. The Laval decree’s purpose was to "control the content of films that were shot in Africa and to minimize the creative roles played by Africans in the making of films." The French colonial administration gave itself the right (wrote a new part for itself in the "public transcript") to examine all films made in French controlled Africa as well as in the personal lived of those who were involved in the production of the film.

The advent of the early 1950's witnessed the heralding of the several successful liberation movements in country after country in Africa. However, the under-development to which these young nations had inherited due to over 400 centuries of the exploitation of their natural resources and labor not to mention the destruction of their social and political institutions still violently plagued the continent. The surge of national pride in Africa brought on its wings both a new relationship with the former colonizer, and a new generation of indigenous film makers eager to take up the challenge of producing a truly self-defined African cinema.

During the Colonial Period, Africans were bombarded by racist and demeaning films, instrumentally used by the colonial administrators and the missionaries to destroy the traditional cultural resources and institutions of Africans and to supplant them with those that confirmed the European colonial dominance.

By controlling all of the processes of film making, the colonialists ensured themselves a monopoly on the creations of the public representation of the "cultural tools" of cinema. The military defeated areas of Africa that were also subjected to the tyranny of the colonial film industry had felt their oppression that much more. The colonial administrators excluded Africans from access to the technological advances that they had achieved (advances made as a result of domination).

Interestingly, when you examine the social and historical developmental of the overall structure of contemporary African media one realizes its uneven nature, with the origins of some of its institutions and cultural dynamics pre-dating the Post Cold War-era (like film) while others are products of it.

These social and political relationships continue to play an important role in informing the day-to-day operations of many of these institutions (which include issues involving broadcast carriage and distribution especially when considering the relationship between television broadcast companies based in former colonial countries with their between carriage, reception and availability within their former colonies on the continent.

The traditional media sub-sector of film on the continent, for instance, pre-date the Post Cold War political era in Africa and have there roots deeply embedded in the struggle against colonization. Ousmane Semebene, the father of African Cinema, directed his first feature film, Emitai in 1971. Like Sarah Maladoror directed Sambizanga in 1972. With respect to television, Nigeria was the first to have a television station constructed in 1959, followed by Ivory Coast, Gabon, Burkina Faso (then Upper Volta) and Niger in 1963, and later Zaire in 1967 and countries like Angola in 1975.

Conversely, the new media sub-sector in Africa was born during the Post Cold War era. Gabon (TV-SAT/Télé Africa Group), 1992, became the first African country where the MMDS (Multipoint Multichannel Distribution System) satellite reception and delivery system was implemented. Which allowed for more efficient reception of satellite TV transmission from around the world via microwave technology to terrestrial sites. Additionally, digitally-based Direct-To-Home satellite broadcasts made its debut on the continent via South Africa in 1995, and as in the rest of the world, the development of Internet/ Cyber-bars in Africa are entirely recent ones.

THE MAJOR PLAYERS

Infra-structure:

the major investors in the traditional African media sectors of film and tv are the French who broadcast continent-wide with Canal Horizon and Canal France International and thereby establishing distribution outlets for their media products while also acting as a cultural reinforcer and also funds African films. The Portuguese have RTP-Africa satellite broadcasting channel covering Portuguese speaking Africa and more recently TeleCabo offering cable services in Mozambique. Austria’s HEY-U Entertainment has recently acquired the rights to build a satellite broadcast television station in Malawi. For a while Malaysians were major share-holders in a television station in Ghana.

The major media content providers include: France, India, Japan, Saudi Arabia, Portugal, (and some US syndication). Additionally, it was increases in economic liberalization in the media sector along with the loosing-up of internal political arrangements combined with efforts towards concentrating on developing institutions at the regional level have all aided, albeit slowly in some sectors, the structural development of African media couple this along with changes involving innovative satellite broadcast companies like Intercom Africque and Panafnet network who plan to air 24 hour, African-based programming with the majority of content being produced by Africans (at least 55%), M-Net in South Africa broadcasting African films and with comparable channels like the French-based MCM music channel which broadcast continent wide with at least 40% of its content being African, the future of African media is indeed bright if Africans and Africans abroad realize the potential, seize the moment offered by the latest technological advancements that may allow them to leap frog certain stages of development and create a culturally enriching and productive 21st Century for our children’s future.

Content is crucial in the media environment of the 21st Century and competition is fierce. The competition is not just for profits the stakes are indeed so much higher than profits. The competition is for Africa’s future. Who will construct it? And who will determine its course?

Businesses, African Ambassadors and Africa activists each have a significant role to play in the passage of the African Growth and Opportunity Act.

Business groups’ roles should be to:

~ help redesign the bill’s pitch with information about how enhanced Africa trade is a necessity and how it will benefit U.S. consumers.

~ produce articles, editorials and op-ed pieces in support of the bill in newspapers and magazines across the country.

~ identify and activate local business supporters for the bill to write letters to Members of Congress calling for passage of the bill.

~ identify key members of Congress who will be contacted to gain support for the bill.

African Ambassadors should:

~ create group of key embassy staff to work with Congressional staff in putting together stringer arguments in support of the bill.

~ provide regular stream information on how the trade bill will benefit African economies and how its defeat will hurt African economies with as many specifics as possible.

~ produce editorials and articles in African newspapers in support of the bill and provide them to Congressional staff on a timely basis.

~ participate in Congressional office visits, news conferences and other events as needed to ensure passage of the bill.

Africa Interest Groups’ role should be to:

~ help provide effective arguments to counter opponents of the bill.

~ get local groups energized on behalf of the bill and work with them in a continuing effort to press their Member of Congress to vote for the bill.

~ produce favorable editorials and articles in newspapers and magazines.

Thank you so much for the opportunity to welcome this very important conference to Miami and to speak to you today about the how mutually beneficial it would be for Miami and the countries of Africa to increase trade and investment with each other.

The Foundation for Democracy in Africa is a potentially beneficial organization with an excellent mission of promoting democracy, human rights, and economic development in Africa and I am proud to have been a supporter of it from the beginning.

Before I speak to you about U.S.-Africa trade I would like to recognize Tony Okonmah as a good friend of our community and of Africa. Since 1995, when I became Chair of the House Subcommittee on Africa, I have been aware of Tony’s commitment to bringing democracy and economic prosperity to Africa.

Tony was one of the first to see the natural economic, cultural and geographical connection for Miami as the natural gateway to Africa. I congratulate Tony, Fred Oladeinde, the president of the FDA, and the rest of their team in putting this conference together.

As you are about to hear, the Port of Miami and Miami International Airport have already helped make Miami a gateway for US trade and investment with Latin America.

Miami-Dade’s preeminence in international trade and baning did not happen overnight. We have been at it for a long time. Our people have developed an expertise in dealing with trade issues.

Miami-Dade has been working hard and reaching out to new trading partners and has acquired a reputation as a great place to do business. Combine that reputation with an excellent culturally diverse population and you have the ingredients for what Miami-Dade has become today, a major international trading, banking and investment center.

Miami-Dade is clearly open and ready to do business.

Africa presents itself as the perfect place for Miami to find our next trading partners. I am very pleased to see so many representatives from Africa participating in this conference. Each of Africa’s countries are at different stages of economic and democratic development.

I would hazard to guess that those African countries that are represented here in this conference are from those countries which are the trading opportunities that we keep hearing about.

The challenges facing African countries may have seemed insurmountable decades ago. However, given the dramatic changes in the global political and socio-economic situation, the obstacles can be overcome through a concrete, proactive strategy which focuses on maximizing Africa’s vast resources and raw potential.

But this strategy must not be one of a paternalistic approach to Africa. We can no longer assure that we in the US know what is best for Africa. Africa knows what is best for itself.

Changes have been occurring here in the US as well and the American public is ready for a new approach to Africa.

Additionally, in this era of budgetary restraint and government streamlining, we must look beyond our role as providers of aid and focus on our ability to bring about fundamental change through trade policy.

Trade and investment can become the instrument of choice in bringing about economic reform, trade liberalization and promotion, investment liberalization, private sector development, and infrastructure enhancement throughout the continent. It serves as the perfect complement to the wave of democratization that is sweeping through numerous countries in Africa.

Indeed, economic self reliance is a much more powerful and enduring goal than is the idea of continued dependence on foreign aid. Trade and investment gives countries the opportunity to directly participate in their future economic well being. It is an empowering policy that needs to transcend from the drawing board into reality and implementation.

This is the focus of current legislation introduced by some of my colleagues in the House, Congressman Jim McDermott and Congressman Phil Crane. The central idea of the African Growth and Opportunity Act is that the U.S. must assume its leadership role and formulate trade policy which helps to open U.S. markets, technology, management expertise and capital to Africa’s potential.

While there are wide differences of opinion on the viability and ramifications of such a proposal, it certainly underscores the frustration felt by many over the lack of concrete action toward a proactive U.S. trade policy toward sub-Saharan Africa.

The turning point on this movement could perhaps be traced back to 1994 when Congress attached an amendment to the Uruguay Round Agreements Act calling on the President to develop and implement a comprehensive trade and development policy for the countries of Africa. It further established reporting requirements on the progress made toward this goal.

Certainly, this was a good first step--an idea meant to fuel the evolution of a concrete trade policy. However, it is argued that the reality has not met the expectations and that much remains to be done.

Current assessments of the problems facing African countries underscore failed economic policies, large foreign debt, and inefficient public enterprises as impediments to economic success.

On the other hand, reports from U.S. domestic sources as well as international organizations do cite several African countries as having great potential and a promising economic future. These countries have demonstrated a high level of commitment for market reform, to decentralization, to prudent and effective economic management strategies, and to improved policy incentives.

What this translates into is that the political foundation is gradually being laid for U.S. businesses and entrepreneurs to bring U.S. initiative and economic success to the African continent.

However, this must be nurtured if it is to transform into a trade relationship[ based on equal terms-- that is, on market based mechanisms--which will be mutually beneficial and will lead to economic growth and prosperity for all involved.

Miami-Dade has the potential to repeat the success it has had in Latin America. It has the human resources, the geographical attributes, and the foresight and commitment. Its history has been shaped by the experiences of different cultures and experiences, which provides it with special insight to the enduring concerns present in the African continent.

Through the eyes of its people, Miami-Dade understands the essential elements that must be in place for trade to succeed in Africa.

As a result, Miami-Dade is poised to assume a leadership role in the African continent. To help shape the future of the countries in the region toward stability, economic prosperity, and growth.

I urge all of you in this room to consider the vast untapped potential of Africa and how this translates into trading opportunities for US businesses.

I was a member of a trade mission to Africa with Congressman Charles Rangel on Dec. 6-17 and we were able to go to six countries in Africa. The purpose of it was to talk about the trade bill, the Africa Growth and Opportunity Act, to get input from the people and the leaders in Africa and to find out what they thought about the bill. All we saw was enthusiasm. They were very enthusiastic about it. I was pleased.

I have never served on Ways and Means, my committee is Appropriations. I was privileged to go on the mission to Africa. It was not a Congressional delegation, it was one that was chosen by the President of the United States.

H.R. 1432 is now called, "The Africa Growth and Opportunity Act," but to me it shows a definite policy change in the United States Congress and the Clinton Administration. There was really not a lot of attention being paid to the Continent. There has been a lot of talk, they always held a committee on Africa, they have had a lot of meetings and a lot of hearings. Now, from this Act, you will get a definite policy change.

Do you know what I like about it? It’s bipartisan. It is not one that the Democrats are the only ones pushing it, but Republicans as well. As a result of it, you will see this bill pass and you will see it become a policy of this country. It says the United States is going to change its policy towards Africa from development assistance to economic assistance. This country is saying we want to see an economic change in Africa and we want to be a part of it. That is why it is so important that the market incentives are in this bill.

I think Michael Williams and the Congressional Subcommittee have worked on this bill for years- they’ve been trying for years to get this bill into Congress. It was not an overnight, impulsive thing, it was something that was researched and of course, had hearings on it. Now we are at the point that when the bill reaches the floor, we are hoping that we won’t have a lot of problems. Michael and the Congressman can tell you how many signatures they have on this bill. I know they have a list of a lot of people on this bill. When it comes to the floor, it will be hard for someone to vote to go exit.

Now, do we have people who oppose this bill? Yes, we do. Have I received letters from laborers who oppose the bill? Yes, I have. Have they talked to me about the bill and the fact that they oppose it? Yes, they have. They have some reservations because they are leaders in the apparel and textile industries. There were problems from South Carolina, Georgia, Alabama and North Carolina because these particular states have strong apparel industries. Naturally, they have some concerns about the bill, but certainly this bill will pass.

You can’t say that because of this bill the United States will not extend some economic assistance to Africa and that they are going to cut the aid that the USAID gives. No, they are not going to do that.

I was glad to hear the answer that Michael Williams gave when someone asked, "What happens now, where do we go from here?" This is the beginning as Congress and, in particular, the members of the Black Caucus and the members of the Ways and Means and the President now have been directed to develop a plan for trade agreements to establish the United States in the Sub-Saharan Africa free trade area. That is extremely important because that means, some of the blockages and handicaps that were there before would be removed.

When I was in the Florida Senate, I tried very hard to do something about Florida’s Trade Agreement with Africa. We worked a very long time on that, we were unsuccessful because many of the things that were told to us on the subcommittee at that time were that it was too hard to trade with Africa and that the shipping problems made it difficult. We kept saying that the proximity, we were so close to the Continent, why can’t Florida be the first? This bill will eliminate some of these problems.

I am in strong support of H.R. 1432, the African Growth and Opportunity Act.

This long-overdue bill is the start of a new policy toward Africa. In this decade alone, more than 25 sub-Saharan African countries have held democratic elections and more than 30 African countries have instituted free market economic reforms. This legislation fosters those positive changes by promising increased trade with Africa, not more foreign aid.

Moreover, this bill is important because Africa holds great potential for the next century. Africa is home to 680 million people. Africa also has great untapped natural resources. Africa’s potential for growth is enormous, and could be a major market for U.S. goods in the next century. For these reasons, America needs to be more engaged with Africa on a business, cultural, and political level. If America does not project its leadership in this area of the world, other nations, perhaps hostile to freedom and democracy, will fill the void.

I also believe that America needs to be more involved in African affairs because of environmental reasons. Africa is home to millions of square miles of tropical rain forests, which contain many rare and endangered species and plants. These rain forests are disappearing at an alarming rate, mainly as a result of logging by Asian companies. I fear the consequences for the indigenous people of Africa, and for the environment, if this logging continues unabated. I believe that Congress and the Administration needs to take notice of this problem. But we cannot credibly engage African leaders on this sensitive topic if this body refuses to pass the modest trade bill before us.

As a South African legislator, I would have drafted sections of the AG&O Bill differently. The Bill is important because inter alia:

a) It puts African economic development squarely on the U.S. Agenda.

b) It provides a forum for ongoing discussion and intervention on trade and investment.

c) It steers U.S. aid policy in the direction of enhancing African human potential.

d) It provides practical mechanisms for increasing U.S./Africa trade and investment by reducing/eliminating tariffs and quotas.

e) It sees Africans not as mendicant, but as partners in economic and human development.

The African economy is on the move. Africa will not sit back and wait for the U.S. to increase its involvement in Africa. Africa is busy looking, and finding, new partners in the field of trade and investment.

Distinguished international guests, public officials, leading members of the business community, friends: it is a distinct pleasure to speak with you at this final event of the U.S.-Africa Trade and Investment Conference, which has provided an excellent forum to discuss ways to establish and improve trade and investment opportunities and relationships with African nations.

I have long sought to work as a partner in progress with African governmental, political, educational, and corporate leaders, and I remain committed to reinforcing and energizing the bonds between the U.S. and African nations. Two months ago, I was privileged to join the Presidential Mission on Economic Cooperation to Africa, led by Congressman Charles Rangel, and including Representatives Jefferson, Jackson Lee, Kilpatrick and Meek. And I am proud to serve as the chairman of the Constituency for Africa, which was founded in 1990, and ably led by former Mayor Andrew Young, now our Chairman Emeritus. Our mission is to foster and mobilize increased cooperation among a broad-based coalition of American, African and international organizations committed to progress and empowerment for Africa and African peoples. With the dynamic leadership of Executive Director, Mel Foote, we have implemented a nationwide public education project in the U.S. to dispel myths about Africa; we are creating an organized American constituency to support the social and economic development of Africa; and we are educating that constituency on how U.S. foreign policy is formulated.

Our Town Hall meetings are a key part of our effort, and our series has attracted hundreds of participants in Jackson, Mississippi; Memphis, Tennessee; Little Rock, Arkansas; Mount Vernon, New York; Denver; New Orleans, Los Angeles; and Memphis, just last weekend. The unprecedented success of the series has given us a strong indication that we have attracted constituents across the nation, and that there is a tremendous level of support for partnerships and well-structured trade and investment initiatives with Africa. Plans for 1998 include meetings in Charleston, South Carolina (March 26-7); in April in Houston, spearheaded by Congresswoman Jackson Lee and Mayor Lee Brown; in New York City led by Congressman Rangel; and in Newark, New Jersey, led by Congressman Payne; Atlanta in May, spearheaded by Mayor Bill Campbell, and which will coincide with the National Summit on Africa; Minneapolis in May, hosted by Mayor Sharon Sayles Belton; Cincinnati in June; Chicago in July; Anacostia, Washington, DC also in July, which will coincide with the Congressional Black Caucus; a follow up in September in New Orleans; and Detroit and Miami in October, spearheaded by Representatives Kilpatrick and Meek, respectively.

These Town Hall meetings provide a significant opportunity for local officials, businesses, and other interested individuals to learn about trade opportunities in Africa, and to build public and private support for the continent. I urge all of you to participate, and Mel Foote can provide you with more details.

Today, we are seeing many positive indicators in the varied nations of Africa: more democratic governance and open elections are in place than ten years ago; legislative revisions allow for increased trade and investment opportunities; and a greater emphasis has been placed on education for all citizens, male and female. While many Americans are aware of famine, conflict, and human rights violations in African nations, few know about such progress. Indeed, those of us who have been focusing on strengthening relationships with Africa have found that one of the major impediments to more intensive economic engagement is the lack of widespread awareness on the part of American business and investors about Africa: the kind of progress that has been made there and the opportunities that are available; the thirty African countries that have held multi-party elections and have democratic governments; the eighteen countries with market exchanges; the six percent economic growth in Southern African countries.

A growing portion of our constituency is already doing business in Africa, and because of CFA’s national grassroots activity, we know that many more individuals and groups are interested in pursuing business opportunities, particularly if our Congress helps set the stage.

To that end, we have strongly supported H.R.1432, "The African Growth and Opportunity Act," introduced by Congressmen Rangel, Crane, and McDermott. The bill is designed to make significant changes in how America conducts business and investment activities in Africa and to strengthen trade relationships between the United States and Africa. Secretary of State Albright cited its passage as one of "four tests of American leadership." Let me note that I am pleased with the bipartisan backing for its measures: The Republican House Speaker Newt Gingrich was the first speaker at the hearings last April before the House Ways and Means Committee in support of this bill; I testified on a panel with former Congressman and Cabinet Member, and now CFA Board member Jack Kemp, also a Republican. Ambassador Franklin Sonn of South Africa, administration officials, and many other experts also spoke in favor of the bill.

Increasingly, African Countries are poised to participate in a new generation of economic development based on private involvement. Democratization and structural changes have begun to build a foundation for prosperity. The U.S. trade relationship with Africa has been responsible for a measure of growth: exports to Africa have increased enormously over the past few years, and the United States is Africa’s leading market -- purchases have gone up over twenty percent. For two years in a row, the growth in U.S. trade with sub-Saharan Africa outpaced growth in U.S. global trade. Net private capital flow is up. And opportunities for further involvement by the U.S. through trade and investment are very much available, particularly in our areas of strength, including agribusiness, capital markets the energy sector, education food production, and others. Incidentally, such investment would also enhance the quality of life for 700 million Africans in ways more powerful than economic assistance alone.

Of course, the primary motivation of any business is generally profit. In the private sector, an appeal to fairness, justice, and equity, however principled it may be, doesn’t always carry the day. That’s why it’s important to show that a given direction is not only principled but profitable. And it’s just plain good business to recognize the enormous opportunity and potential of Africa. There is every financial incentive for us to expand our markets and invest in a transforming economy, as we have done before in Europe and in Asia.

However, it remains that U.S. capital flow to Southeast and Pacific Asia dwarfs that in Africa; China alone attracts nine times as much as all of Africa. And the key reason, I believe is perception of risk. But in virtually every African nation, a framework of incentives and economical, political and institutional arrangements aimed at investment promotion now exists. Local governments are coming on board. There is real attention to fiscal stability, and an understanding of the importance of stability and its significance to foreign investors. In other words, many risk factors have been removed.

It is a new day for Africa, and it is tine for Americans to look at the rich and varied nations of the African continent in a different and more positive light. The recent Presidential mission was a sign of progress in this area, as will be the upcoming visit by the President himself to Africa. This conference, and the level of participation and interest it has demonstrated, is also an excellent sign.

I am delighted to be working with CFA as we continue to galvanize support for Africa and to African Entrepreneurs. I have spoken with numerous delegations -- governmental, educational, private, and nonprofit -- that have developed collaborations which are bearing fruit. And I am encouraged, as I believe are other business and community leaders, by the efforts on the part of knowledgeable and concerned corporate leaders who are seeking joint ventures with black African business leaders.