|
Press
briefing on "The 7th AGOA Forum in
Washington, DC on July 14-16, 2008”
The Washington Foreign Press
Center, Washington, DC
July
1, 2008
FOREIGN PRESS CENTER BRIEFING WITH Todd J. Moss,
Deputy Assistant Secretary for African Affairs, U.S.
Department of State; Franklin Moore, Deputy
Assistant Administrator for the Africa Bureau from
USAID and Andrew Baukol, Deputy Assistant Secretary
for Africa and the Middle East, U.S. Department of
Treasury
MODERATOR: Good morning and welcome to the
Washington Foreign Press Center. Today we are going
to be talking about the 7th AGOA Forum, which will
take place in Washington, D.C. on July 14th through
16th. And we have with us Todd J. Moss, Deputy
Assistant Secretary for African Affairs from the
U.S. Department of State. We’ve also got Andrew
Baukol, Deputy Assistant Secretary for Africa and
the Middle East from the U.S. Department of
Treasury, and Franklin Moore, Deputy Assistant
Administrator for the Africa Bureau from USAID will
be on hand to answer additional questions, if you
have them for USAID. Unfortunately, USTR’s Assistant
Trade Representative for Africa Florizelle Lizer
could not join us today. However, if you have
questions for USTR, we will take them and get them
to USTR and try to get them back to you.
We are also joined by our Foreign Press Center in
New York, so welcome. And without further ado, I
will hand the podium over to Deputy Assistant
Secretary Moss, who will make brief opening remarks.
Thank you.
MR. MOSS: Thank you. And good morning, everyone. The
future of Sub-Saharan Africa continues to look
brighter, as we’re seeing a growing number of
countries begin to reap the benefits of sound,
economic policy changes, improved governance and new
investments in key sectors undertaken over the last
decade. With the continued growth of responsible and
representative governments in Africa and the
recovery from several lengthy conflicts on the
continent, much of Africa now is poised to see much
more robust economic growth and an improvement in
living standards.
The pace of economic growth and development in
Africa is, of course, paramount concern to the
United States and the international community. The
United States continues to demonstrate worldwide
leadership in expanding the opportunities for even
greater African prosperity in the future through
initiatives such as the African Growth and
Opportunity Act, or AGOA. AGOA is a progressive U.S.
trade and investment policy toward the continent
that is reducing barriers to trade, increasing
diversified exports, creating jobs and expanding
opportunities for Africans to build better lives.
Specifically, AGOA provides trade preferences to
designated countries that are making progress in
economic, legal and human rights reforms.
Under AGOA, eligible countries can export almost any
product to the United States duty-free. Right now,
that’s nearly 6,500 products from apparel to
automobiles and footwear to fruit. AGOA also
provides a framework for technical assistance to
help countries take greater advantage of trade
preferences.
Last year, in 2007, over 98 percent of U.S. imports
from AGOA-eligible countries entered this country
duty-free. Total trade between the United States and
Sub-Saharan Africa has grown to more than $81
billion last year and we’ve seen non-oil AGOA
imports into the U.S. nearly triple since 2001.
Currently we have 41 Sub-Saharan African countries
that meet AGOA’s eligibility criteria that can take
advantage of the trade benefits offered under the
act. This year, we’re pleased to add Togo and, as of
yesterday, the union of Comoros, so we’re up to 41
total countries.
The – as part of the AGOA legislation, we have an
annual dialogue between the United States and
Africa. This is called the AGOA Forum. The seventh
such forum will take place here in Washington, D.C.,
July 14-16. The theme for this year’s forum is:
Mobilizing Private Investment for Trade and Growth.
This dynamic event will set the stage for active
discussions focusing on the linkages between private
investment and economic growth, as well as providing
African countries with the ability to take advantage
of trade opportunities in AGOA and elsewhere around
the globe. This event will bring together senior
U.S. administration officials, African Government
ministers, as well as U.S. and African business and
civil society stakeholders to accelerate the
exchange of ideas and information critical to AGOA’s
continued success and, indeed, to Africa’s continued
economic success.
The ministerial plenary sessions, along with
associated breakouts will be held on July 15th. In
addition, there will be private sector and civil
society hosted events on the 14th and 16th that will
highlight additional opportunities between the
United States and Africa. At the ministerial
session, the focus will be on two critical areas
that affect trade and economic growth. The morning
will deal with improving the business climate with
breakouts looking at key sectors and the afternoon
will look at access to capital with breakout
sessions on each of the main financial instruments.
Just -- before turning to my Treasury colleague, I
just want to highlight the role of OPIC. The
Overseas Private Investment Corporation is a U.S.
Government agency that fosters economic development
in Sub-Saharan Africa by providing project finance,
direct loans and loan guarantees and political risk
insurance for U.S. investors. In addition, OPIC
provides support to independently managed private
equity funds. Now, OPIC is currently providing over
$2 billion in financing and political risk insurance
for 83 projects and investment funds in Sub-Saharan
Africa and they’ve been adding new private equity
funds, especially over the last two years. And OPIC
is now supporting 14 separate private investment
funds -- work operating in Africa, which represent a
billion dollars in commitments by OPIC and they’re
leveraging as much as $4 billion in new private
investment in the region. And in recognition of
OPIC’s innovation in support of African economic
prosperity, we can confirm that OPIC President and
CEO Rob Mosbacher will give the keynote over lunch
to the ministers on the 15th.
So with that, I’ll turn to my colleagues, thank you.
MR. BAUKOL: Thanks, Todd. I’m Andy Baukol from the
Treasury Department and I’ll make even briefer
remarks. Just to note that the Treasury is very
excited about participating in this year’s AGOA
Forum, particularly given that the themes are
mobilizing capital and improving investment
climates. These issues, of course, are essential for
boosting growth in Africa and allowing sub-Saharan
African countries to take advantage of the trade
preferences that the AGOA program offers.
Just a couple of data points to reiterate how well
Africa is doing recently. Just in the last seven
years, private capital flows to sub-Saharan Africa
have increased by about five times, totaling about –
over $50 billion last year, and portfolio flows to
Africa have increased more than 14 times in the last
few years. Africa has enjoyed a very rapidly growing
economy in the last few years. We aim to try to help
cement the gains in this progress, even in the face
of some global pressures that might help detract
from growth in the near term.
Secretary Paulson will be participating in the AGOA
Forum on July 15th, participating in a plenary
session on mobilizing capital. Also on that panel
will be a World Bank leader as well as private
sector. And Treasury will chair two of the panels
during the breakout sessions: one on financial
sector deepening, and one on developing local debt
markets. The Treasury has almost 20 technical
advisors in Africa, full-time, helping African
countries develop their banking systems, their
budget processes, and we aim to build on the lessons
that they have learned to help inform other African
countries about some of the things they can do, both
right and wrong, to help develop their financial
markets.
Thank you.
MODERATOR: Okay. We’ll take your questions now. If
you can, please, state your name and news
organization before asking a question. And also,
please, indicate who you’re asking the question of.
Does anybody have a question? Mr. Butty.
QUESTION: Thank you. My name is James Butty. I work
for the Voice of America, Africa Division. I co-host
a program Daybreak Africa. I wonder the – Mr. Moss
or any of you can address – I like first – you give
us, I think the -- how AGOA is doing. But what do
you say to those who say that AGOA has been, kind
of, a stagnant piece of legislation, that is not
really fulfilling the promise it once had?
Particularly, people are saying that perhaps it’s
being a little hijacked by corporate America.
MODERATOR: And if our speakers would, please stay at
the podium, that would be great for camera purposes.
Thanks.
MR. MOSS: Okay. Well, thank you for that question. I
think that if we look back at the intention of AGOA,
AGOA is mainly about increasing opportunities for
trade by providing market access; essentially,
reducing trade barriers for private firms and
individuals to trade between Africa and the United
States. And as we know from economic history, market
access is one small piece of helping to boost trade
and economic growth.
I don’t think that AGOA was ever intended to be
all-encompassing. It was primarily intended to deal
with the market access issue, so that we made sure
that the United States tariff regime was no longer a
restriction on Africa trade. The other side is that,
of course, capacity building needs to be an
important of that, and there are trade capacity
building elements on – in AGOA. But of course that’s
also going to be a very long-term – a very long-term
process. It’s not something you can turn on over
night. And I actually think that’s why this year’s
focus is especially important. Because what we’re
now seeing in Africa is renewed interest from global
investors in looking at African companies, and
particularly looking at African infrastructure. And
what Africa – one of the main constraints on greater
trade, is African infrastructure right now and the
size of African companies. Many of them are just not
large enough to compete globally.
So the entrance of private investment going into
railways and roads and ports and airports is exactly
the kind of private investment that Africa needs to
help boost trade. And that’s one of the reasons that
we chose private investment as one of the key themes
this year, not only because there’s growing
interest, as my Treasury colleague highlighted, from
private investors, but also that private investment
is one of the key components for helping to boost
trade even further in the future.
QUESTION: I have a follow up, please? Can I?
MODERATOR: Yeah.
QUESTION: Does this then include small businesses,
like minority-owned businesses? If we are talking
about going to invest in Africa, does this include
minority businesses? I mean, can you explain a
little bit about what type of businesses are
investing – are taking advantage of AGOA from the
United States side?
MR. MOSS: Well, let me say that there’s no – there’s
no discrimination on what size firms would be
eligible for AGOA benefits in Africa. Those can be
very small firms or it can be very large firms. So
on the African side, there’s no discrimination at
all. So when you’re looking at market access, I
don’t think that that necessarily would be relevant.
On our trade capacity building side, there is an
emphasis on small and medium enterprises. Maybe my
AID colleague could talk a little bit about some of
the – the small and medium enterprise finance
initiatives that we have. Because if we think about
what the future of Africa’s economy – what are the
bright spots – we really need more companies in
Africa to be established. We need the small
companies to grow into large companies. These are
African companies, and finding technical assistance
and financial assistance to help generate, incubate
those firms and allow them to grow and compete on
the global market is really going to be the key for
Africa to generate jobs and wealth and to get on the
path that we’ve seen followed in other regions of
the world.
MR. MOORE: You want me to follow that up? Why don’t
I follow that up a bit? One of the pieces that we,
USAID, will be looking at and chairing a working
session on is financing for small and medium
enterprises. It is our view that it is primarily
small and medium enterprises that are going to take
advantage of the non-oil aspects of export to the
United States. It is those sized enterprises that
tend to be the enterprises that raise employment and
that diversify the economy. So we will be hosting
one of the working groups. Our co-host is managing
director and CEO of Equity Bank in Kenya. And we’ll
be looking at both financing as well as technical
assistance.
If I might, Todd talked about OPIC, for example,
which has a number of financing options. We work
with OPIC to help small and medium enterprises put
together a package that is financeable, so that
those who have those small and medium enterprises
that may have very good ideas that may be within
reach of the U.S. market but not quite there, we
have been providing them with some technical
assistance, particularly through the African Global
Competitiveness Initiative, where we have four units
that are on the continent that are providing
technical assistance to those small and medium
enterprises so that they’re more financeable, and
also assisting them to come to trade shows in the
United States, etcetera.
So concentrating on the African side, the small and
medium enterprises is a really important component
of AGOA.
MODERATOR: We have another question? Charles?
Charles Smith.
QUESTION: Charles Smith, South Africa, Media 24. The
first question is what – who decides on what
products would get assistance? Would the Americans
prescribe for, say, African companies, you know,
what Americans would want -- say, gold, diamonds,
agricultural products, to invest in? And what
specific about agricultural products like meat and
corn and so on? And would America block products
like corn where you want the world to get your corn?
So maybe you can just talk a little bit about that,
please.
MR. MOSS: Unfortunately, I think I’m going to have
to defer you to our USTR colleagues on the details
of how the product lines are chosen. I’m not aware
of that precise process. I just do know that there
are 6,500 products that are now duty-free, so we can
pass that question to the USTR. Franklin, please?
MR. MOORE: Generally, you’ll find that the products
are chosen by those who want to export, not by those
who want to import. Now, we have been providing
technical assistance. For example, if there is a
company – let me speak specifically. There’s a
company in Rwanda – Peace Baskets. And Peace Baskets
is a combination of women that are scattered pretty
much all over Rwanda who actually are weaving
baskets and bringing them into the United States. It
was their idea that it would be baskets that they
would bring into the United States. They’ve gotten
some technical assistance, both originally from
USAID, but now they’re getting technical assistance
from those companies that are importing their
baskets, who are helping them with color selection,
pattern selection, etcetera. In other words, are
helping them to customize their baskets more for a
U.S. market than the baskets they might make for
other markets.
When you get to agricultural products, we are
working primarily with the Department of Agriculture
on – the big piece for agricultural imports is
sanitary – phyto-sanitary rules. And we’ve been
working both with USTR and with the Department of
Agriculture, who oversees that in the United States,
to help overcome some of the problems there are with
agricultural products. I would tend to say you spoke
of corn specifically.
QUESTION: Corn and meat.
MR. MOORE: Well, I would tend to say that there
probably is not much corn that is competitive with
corn coming in the United States because of the
shipment distances. Meat has tended to be something
that has become a specialty item in Africa, but it
tends to be more for the European markets than it is
for the U.S. market. Not to say that there isn’t
some time in the future that some of it will – as
specialty meat, in particular – would actually come
to the United States.
....Cont'd/2
|