Africa, US to devise private sector strategy

WASHINGTON – Ministers from 37 African nations and the United States are holding annual talks this week aimed at devising strategies for a vibrant private sector in Africa and stepping up trade.

Foreign, trade, agriculture and finance ministers are attending a two-day forum in Washington, which started yesterday, under the theme ‘The private sector and trade: powering Africa’s growth’. US Secretary of State Condoleezza Rice delivered the opening remarks at the the fifth annual US-Sub-Saharan Africa Trade and Economic Co-operation forum, commonly referred to as the AGOA forum.Aside from ministerial talks that would chart new policies to boost trade and economic development, a private-sector forum would consider helping companies “find new markets, new partners and increase profits,” Linda Thomas-Greenfield, the deputy assistant secretary of state for African affairs, told reporters.Among the African nations in the forum are South Africa, Ethiopia, Ghana, Kenya, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Tanzania, Uganda and Zambia.It was set up following a US law – The Africa Growth and Opportunity Act – passed in 2000 to spur economic development in Africa and to expedite the integration of African economies into the world trading system.The forum “has helped to increase US two-way trade with sub-Saharan Africa and to diversify the range of products being traded”, Thomas-Greenfield said.Two-way trade rose to US$60,6 billion in 2005, an increase of about 37 per cent from the previous year, she said.AGOA now expands duty-free access for more than 6 400 products to the US market, and it also provides a framework for US technical aid, she said.On the textiles front, Thomas-Greenfield said that in addition to the 37 eligible countries, an additional 25 countries had qualified for benefits by establishing a customs system designed to help prevent illegal trans-shipment of apparel exports.”These countries are permitted to export a wide range of apparel products to the United States duty-free, subject to various quantitative limits,” she said.The theme for the 2006 talks was chosen “because we strongly believe that the real driving force that will help Africa reach its full potential is not foreign assistance, but the energy and initiative taken by Africans themselves through a vibrant private sector”, said Jendayi Frazer, the assistant secretary for African affairs.”There is one key area in which Africa still lags behind other parts of the world – its business climate,” she told a recent media briefing on the event.Most African countries already face low or zero tariffs for the great majority of the products that they export to the United States.”The key to greater economic growth in Africa, therefore, lies primarily in making the required reforms within African countries so that African entrepreneurs can take full advantage of the opportunities that are now available to them,” Frazer said.In 2005, US imports from the 37 AGOA countries totalled US$38,1 billion, up 44 per cent from the previous year.”This is an impressive increase in a wide array of product categories, not just petroleum,” Frazer said.While US imports of apparel from AGOA countries dropped in 2005, imports of products in other sectors, including agricultural products, machinery, and electronic products, all increased.- Nampa-AFPUS Secretary of State Condoleezza Rice delivered the opening remarks at the the fifth annual US-Sub-Saharan Africa Trade and Economic Co-operation forum, commonly referred to as the AGOA forum.Aside from ministerial talks that would chart new policies to boost trade and economic development, a private-sector forum would consider helping companies “find new markets, new partners and increase profits,” Linda Thomas-Greenfield, the deputy assistant secretary of state for African affairs, told reporters.Among the African nations in the forum are South Africa, Ethiopia, Ghana, Kenya, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Tanzania, Uganda and Zambia.It was set up following a US law – The Africa Growth and Opportunity Act – passed in 2000 to spur economic development in Africa and to expedite the integration of African economies into the world trading system.The forum “has helped to increase US two-way trade with sub-Saharan Africa and to diversify the range of products being traded”, Thomas-Greenfield said.Two-way trade rose to US$60,6 billion in 2005, an increase of about 37 per cent from the previous year, she said.AGOA now expands duty-free access for more than 6 400 products to the US market, and it also provides a framework for US technical aid, she said.On the textiles front, Thomas-Greenfield said that in addition to the 37 eligible countries, an additional 25 countries had qualified for benefits by establishing a customs system designed to help prevent illegal trans-shipment of apparel exports.”These countries are permitted to export a wide range of apparel products to the United States duty-free, subject to various quantitative limits,” she said.The theme for the 2006 talks was chosen “because we strongly believe that the real driving force that will help Africa reach its full potential is not foreign assistance, but the energy and initiative taken by Africans themselves through a vibrant private sector”, said Jendayi Frazer, the assistant secretary for African affairs.”There is one key area in which Africa still lags behind other parts of the world – its business climate,” she told a recent media briefing on the event.Most African countries already face low or zero tariffs for the great majority of the products that they export to the United States.”The key to greater economic growth in Africa, therefore, lies primarily in making the required reforms within African countries so that African entrepreneurs can take full advantage of the opportunities that are now available to them,” Frazer said.In 2005, US imports from the 37 AGOA countries totalled US$38,1 billion, up 44 per cent from the previous year.”This is an impressive increase in a wide array of product categories, not just petroleum,” Frazer said.While US imports of apparel from AGOA countries dropped in 2005, imports of products in other sectors, including agricultural products, machinery, and electronic products, all increased.- Nampa-AFP