Promoting Shared Interests: Policy Recommendations on Africa for the Second Term of the Obama...

7/30/2019 Promoting Shared Interests: Policy Recommendations on Africa for the Second Term of the Obama Administration

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PRESENTED BY THE CORPORATE COUNCIL ON AFRICAQSTEPHEN HAYES, PRESIDENT & CEO

APRIL 17, 2013 QTHE U.S. AND AFRICABUSINESS PARTNERS IN DEVELOPMENT

PROMOTING SHARED INTERESTS:

POLICY RECOMMENDATIONS ON AFRICA

FOR THE SECOND TERM

OF THE OBAMA ADMINISTRATION


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Table of ConTenTs

Presidents Introduction .................................................................................4

Executive Summary.......................................................................................6

Chapter One: Trade Policy..........................................................................15

Chapter Two: Finance .................................................................................21

Chapter Three: Information and Communication Technology ..................25

Chapter Four: Agricultural Development and Agribusiness ......................29

Chapter Five: Energy Oil and Gas and Power .......................................35

Chapter Six: Health......................................................................................41

Chapter Seven: Infrastructure.....................................................................47

Chapter Eight: Capacity Building, Education and Training........................53

Chapter Nine: Security ................................................................................57Acknowledgments .......................................................................................60

Abbreviations................................................................................................61

List of CCA Members.....................................................................back cover


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Pit Itcti

There is grave concern in the United States business community that America is beingsqueezed out of the 21st century African economy. Without a much better and more

focused effort, the United States may lose its pivotal chance to play a substantial role in

the development of a region that is of major importance to us, and also miss a chance to

help our own economic recovery.

Africa, as a continent, represents one of the largest untapped markets in the world, and

possibly the last "frontier" economy.

Africa is not just a continent. It is nearly 900 million people in fifty-five nations of many

diverse cultures, and covering territory roughly five times the size of the United

States. There are fifty-five legal structures, political cultures, economies, and

infrastructure systems.

Considering the complex and diverse nature of the region, the many challenges to

conducting business in Africa are often seen as overwhelming. However, growth rates in

some African countries are among the highest in the world, and international competitors

are flocking to the opportunities in Africa like never before.

Currently, Africa is witnessing:

n The aggressive expansion of European businesses throughout the region and not just in their

former colonies;

n Chinas successful effort over the last ten years in becoming Africa's largest investor by far;

n Greatly expanding investments by India, Turkey, the Gulf States, Brazil, Russia, Korea,

Japan, Malaysia, Israel, Libya, South Africa, and others;

n The U.S. investment share shrinking, simply because others are doing more.


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While commodities from coal to

cobalt remain important to Africa,

a new consumer class is driving

consumer industries that aregrowing two to three times faster

than in developed nations. African

investment is booming in such

areas as financial services, ICT,

manufacturing of consumer

goods, tourism, and construction

(McKinsey Global Institute,

2011). Africas consumer

spending could reach $1.4 trillion

by 2020, compared to the total

GDP of $1.6 trillion in 2008.

GDP is projected to reach $2.6trillion in 2020. The number of

households with disposable

income is expected to rise 50

percent in the next ten years.

Africa is increasingly important to

U.S. economic as well as security

interests. Africa is the largest, or

among the largest, global sources

of minerals like platinum, coltan

and bauxite, which are all used in

high-tech industry products. The

region provides a significant share

of global energy, and has much of

the world's unused farmland. It is

among the regions of the world

that most welcomes American

democratic ideals, technology,

management and education, and

its governments are potential

partners in activities from maritime

security to medical research.

Africans desire many of the

products in industries where the

U.S. has a competitive

advantage, but they increasinglywonder at the relatively low level

of U.S. engagement.

The members of The Corporate

Council on Africa, representing

85% of U.S. private investment in

the region, recognize that

competition is necessary and

important to Africa. Private

investment has fostered a boom

in infrastructure construction,

trade, development and jobs. Jobcreation is best done by the

private sector which has the

potential to create a stronger

African middle class with more

purchasing power leading to

stronger African economies.

However, we also are concerned

because U.S. business in Africa

continues to face competitors that

can count on strong government

backing including generous

state-supported financing in the

case of China and others. We are

concerned at the often-deficient

level of communication between

the U.S. public and private sectors

regarding African economic and

commercial issues. While there

are many positive signs in this

respect, a strong U.S. role in

Africa's future requires all of us,

private sector and the U. S.

government (USG), to look for

more effective ways to advance

U.S. support for Africandevelopment, while continuing

to strengthen the U.S. economy

at home.

The Policy Recommendations to

the second term of the Obama

Administration are presented in a

spirit of public-private cooperation.

This document represents the

work of CCA membership in nine

distinct sectoral working groups,

building on an earlier set ofrecommendations submitted for

the first Obama Administration in

2009. The intent is not just to

request the Administrations

assistance or suggest specific

actions, but to raise the question

of how the U.S. public and private

sectors can work more effectively

to advance our increasingly critical

national interests in Africa.

The outcome should result in

more capable African partners,

healthier African economies,

growing African markets, and a

stronger U.S. role in one of the

world's most important emerging

regions. Africa is vital to our long-

term economic and political

interests, and must be treated as

such. We cannot afford to fail.

Stephen Hayes

President and CEO

The Corporate Council on Africa


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ecti smm

More than ever, foreign policy is economic policy. e world is competing for resources and

global markets. Every day that goes by where America is uncertain about engaging in thatarena, or unwilling to put our best foot forward and win, unwilling to demonstrate our

resole to lead, is a day in which we weaken our nation itself.

Secretary of State, John Kerry, January 24, 2013

Nowhere is this truer than in Africa. Despite the Administrations strengthened efforts, our economic,

trade, and investment position is declining relative to competitors who have raised their game.

China, India, Turkey, Brazil, and others are aggressively expanding trade and investment. Trade

between China and Africa has overtaken that of the U.S., growing to over $100 billion per year. The

European Union (EU) is pursuing commercial advantage through Economic Partnership

Agreements (EPAs) and reviving traditional relationships. Some countries are offering concessional

financing in addition to innovative combinations of government assistance and private sector

contracting that the U.S. government (USG) has been increasingly unable to match. The move to

create a BRICS infrastructure bank is an indicator of how emerging powers are shifting focus

towards Africa.

If the U.S. does not work to reverse the trend, long-term opportunities for U.S. business will be

greatly limited. A substantial additional commitment of human, financial, and policy resources is

needed to support our national interests in Africa. At the bare minimum, the United States shouldbe matching the support provided by other governments to their private sectors.

a More InTegraTed eConoMIC sTraTegyPhilanthropy and corporate investment in Africa now exceed official development assistance. Garnering more

private investment is a top priority for many, if not most, African governments. It should be a U.S. policy

objective to create a better-integrated commercial and economic development relationship with African

nations that includes recognition of the key role played by U.S. business. The aim should be to involve U.S.

business, including our African diaspora, more extensively in Africas economic growth, and specifically in the

development of the African private sector. CCA sees the growth of Africas private sector along with an

expanded role for the U.S. private sector as key to graduating African countries from foreign assistance. Over

time, this will liberate resources currently committed to classic development activities.

U.S. industry is well-equipped to bolster the ability of African business to contribute to sustainable growth.

Furthermore, building links, including through our African diaspora, between the U.S. and African private

sectors and companies will also support market-based development strategies. This should reduce the

appeal of statist models and provide substantial job and tax revenue benefits for the U.S.s African partners

and, ultimately, for U.S. business.


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general reCoMMendaTIonsA shift of attention and resources is urgently needed from other areas to expand support to the U.S. private

sectors activities in Africa. The shift in focus should include programs that help build African private sector

capacity and an enabling business environment.

Specific actions would include:n Expand senior level commercial diplomacy, including a Presidential trade mission.

n Establish a target at the Presidential level for $10 billion in funding for infrastructure projects, focused on

areas that promote growth and in which the U.S. private sector is competitive, such as agriculture, health,

information and communications technology (ICT), energy, and heavy machinery.

n Make support for U.S. business a central element of U.S. foreign and development policy.

n Expand formal and informal consultations with the private sector to ensure that private sector concerns

are incorporated in policy, program, and project planning and execution.

n In consultation with the private sector, evaluate the current whole of government approach to working with

business, including public-private partnerships, and revamp programs and policies to provide timely and

integrated support to the U.S. private sector.

n Ensure, so far as possible, that official policy positions do not obstruct industry efforts to strengthenAfricas role in U.S. and global supply chains and distribution channels.

n Offer technical assistance for market development policies, including expansion of domestic and regional

capital markets.

n Expand technical assistance in rule of law, anti-corruption, and transparency activities, including via

developmental assistance programs.

n Support responsible energy development and effective regulation, including the multi-stakeholder

Extractive Industries Transparency Initiative (EITI).

n Consider modifying the Dodd-Frank legislation and final SEC rule requiring unilateral payment

disclosures at the project level, since they may have the effect of weakening the sanctity of existing

contracts and putting U.S. firms at a competitive disadvantage.

n Expand the Foreign Commercial Service (FCS) presence in Africa and provide more training and support

to State Department commercial officers where FCS is not present.

n Intensify support for the efforts of the AU and the regional economic commissions to improve their

infrastructures and better integrate their markets.

PrograMMaTIC ChangesWe urge a re-design of the USGs interagency processes and program structures, in consultation with the

private sector, to permit a more coordinated approach on major projects. Ideally, there should be an effective

one-stop shop" bringing together relevant agencies in an accessible and responsive format that provides the

information and support that businesses need to compete more effectively. This would entail changes in the waythat USTR, USAID, MCC, OPIC, Commerce, Export-Import Bank (EXIM), and other agencies conduct

business, which places a partnership with the private sector at the core of their planning and programs. CCA

welcomed the June 2012 U.S. strategy towards Sub-Saharan Africa and its heightened focus on a whole of

government approach to spurring economic growth, trade and investment, but more needs to be done.

InfrasTruCTureImproving infrastructure is crucial to Africa's growth and is a major priority for its governments, but is an area

in which the U.S. lags behind. It should be a top priority for U.S. agencies such as EXIM, OPIC, MCC, and

others to expand support for infrastructure projects, in terms of both policy advocacy and creative, flexible use

of existing funding. For example, EXIM should be authorized to devote more funding to offset U.S.

competitors' tied aid credits.


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PowerThere are nearly one billion Africans, yet they consume only four percent of the worlds electricity. Africa's

growth and its expanding middle class imply a major shift in new demand for power. Improving health,

agriculture, industry, and education will require huge investments in generation, transmission, and distribution

facilities, including renewable and off-grid power. Africas potential for renewable resources and creative

application of technologies is as great as the shortfall in meeting Africas demand for power. The power sector

is ripe for greatly expanded attention from the Administration and the U.S. private sector as well as from

African governments and businesses.

exPanded efforTs by adMInIsTraTIon and CongressCCA's members greatly appreciate the Administrations increased attention to Africas economic and

commercial potential through programs like the National Export Initiative, the Commerce Department's Doing

Business in Africa campaign, USAID's Development Credit Authority, USTRs work on Trade and Investment

Agreements, Bilateral Investment Treaties and the East African Community Trade and Investment

Partnership Initiative. We specifically appreciate the day-to-day support in Washington and by Embassies in

the field, as well as a series of high-level trade missions. The June 2012 Strategy towards Sub-Saharan Africa

and its heightened focus on a whole of government approach to growth, trade, and investment was a superb

example of the kinds of policies CCA favors and hopes to expand. CCA also acknowledges and supports the

many existing programs and activities that are already underway that are congruent with or highlighted asrecommendations in this report.

CCA equally welcomes and applauds the bipartisan efforts by many Senators and Representatives to expand

the congressional focus on Africa, especially the renewal of the African Growth and Opportunity Act (AGOA)

and its 3rd country fabric provision. CCA particularly welcomes efforts in Congress to expand the legal

framework and provide additional support for our economic and commercial interests in Africa.

These efforts have laid the foundation for increased opportunity for economic growth and development on the

African continent. On behalf of the U.S. private sector, CCA stands ready to continue its collaboration with the

Administration and Congress to build an even stronger U.S.-African partnership in the public and private sectors.

By working together, our efforts will be a promising investment in future jobs, economic growth and opportunity for

both Africa and the United States.

seCTor-sPeCIfIC reCoMMendaTIons:NOTE: The individual chapters in this report place these recommendations in context and provide additional

detailed recommendations.

TRADE POLICY

n Promote open and transparent legal and regulatory frameworks in Africa that will open markets to U.S.

exports, protect intellectual property, and ensure that local content requirements are not used todiscriminate against U.S. companies.

n While maintaining and enhancing AGOAs duty-free, quota-free preferences, examine ways to develop a

more comprehensive trade and investment strategy that will link trade and investment opportunities, build

value chains, and strengthen participation in African regional markets.


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n Renew AGOA expeditiously, with benefits extended to additional products (the private sector

recommends a comprehensive ITC study to determine which markets could be developed through

enhanced preferences) and secured in place for a period of time long enough to establish meaningful

investment opportunities.

n Prioritize support for African regional integration, focus on initiatives to facilitate regional customs

cooperation, establish better standards and encourage regional infrastructure development, which

includes methods through the US-EAC Trade and Investment Partnership Initiative.n Working with USTR, enhance use of TIFAs, which includes the expansion of ongoing business dialogues

and a more formal system for notification and input.

n Expand use of BITs, with a particular emphasis on key markets (e.g. Nigeria and Angola) and a stronger

process for private sector input.

n Work closely with other trading partners, including the European Union Member States through the

proposed Transatlantic Trade and Investment Partnership, African institutions and RECs, and multilateral

institutions, including the WTO, to encourage development of a coordinated approach to supporting

development and deeper integration of the African market while avoiding initiatives that hamper this effort.

n Carefully study any proposals for reciprocal trade commitments, which must include private sector input

and analysis in order to actively avoid models that could limit economic diversification and regional andcontinental development, such as EPAs.

n Continue to place a priority on technical assistance and capacity building, and focus, in particular, on

activities that will support private sector development and increased investment and trade.

n Use technical assistance and capacity building to strengthen value chains, and tie this into private sector

activities and market demand.

n Improve the USGs coordinated system of trade finance, advocacy and business support, including

approaches through USAID, OPIC, EX-IM and the Departments of Commerce and Treasury, in order to

meet or exceed similar support offered by other countries, putting U.S. companies at a competitive

advantage.

FINANCE

n Revamp the system of financing for U.S. exports so that it competes on an equal basis with other

countries, is much faster and more flexible, much better funded, and includes an annual targeted

benchmark of deals to be funded in Africa.

n Expand and better coordinate U.S. government programs that support U.S. private investment in Africa

(including human and financial resources).

n Invest in technology-focused projects where the U.S. has competitive advantage.

n Expand support to African governments so that they can more effectively access international financial

markets and develop their own domestic markets.

n Incentivize projects that promote investment across borders and support creation of larger regional

markets.

n Enhance cooperation between traditional and new allies to finance projects in Africa. U.S. agencies and

the private sector should identify strategic partners already present or seeking to invest in Africa to raise

and put capital in common, develop projects together, and share the benefits.


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INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)

n In close collaboration with African Governments, U.S. funding and investments should be made in local

vocational institutions and institutions of higher education.n Promote regulatory frameworks and legal systems that ensure the value and protection of U.S.

intellectual property assets.

n The USG should increase its focus on reducing protectionist policies, legislation and/or regulations and

encourage African governments to promote local economies in a manner that supports and ensures

open and pro-market conditions.

n Collaborate with industry and stakeholders to apply internationally recognized privacy principles to current

technology and cultural realities.

n Create incentives for securing private infrastructure and advance information sharing that includes

appropriate liability protection for disclosure of cyber threat information.

n Promote an international privacy and security regime that allows for data transfers across borders;

allowing countries to recognize one anothers data protection laws.

n Recognize and support the role of multi-stakeholder processes as an alternative to intergovernmental

standard setting.

AGRICULTURAL DEVELOPMENT AND AGRIBUSINESS

n Coordinate USG support for agricultural development and agribusiness in Africa by ongoing efforts under

the USAID Feed the Future/Grow Africa/New Alliance initiatives.

n Expand programs that provide direct financial support to private sector investments, including the USAID

Global Development Alliance and Development Innovation Ventures. Link the private sector with

Comprehensive Africa Agriculture Development Program (CAADP) efforts to advance the most promising

value chain opportunities.

n Expand use of PPPs to drive innovation in agriculture, with an emphasis on bringing the private sector

into project design at the earliest possible stage.

n Support the increased provision of agricultural finance by encouraging land ownership reforms and the

creation of programs that will expand access to collateral for small and medium farmers.

n Increase investment in programs that support capacity building and provide technical assistance,

including the White Houses Young African Leaders Initiative (YALI), USAIDs Africa LEAD program, and

USDAs Norman E. Borlaug International Agricultural Science and Technology Fellowship Program.

n Cooperate with the private sector and partner governments to convene a youth in agribusiness forum

under the auspices of YALI.


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ENERGY: OIL AND GAS AND POWER

n A pro-trade and international investment agenda is essential to promote energy development by

encouraging trade flows and ensuring investment rules that help manage risks.n Expand support for the new Bureau of Energy Resources at State Department, which is important to

integrating energy and foreign policy and maintaining U.S. leadership in this area.

n Improve USG support to U.S. companies, which involves more flexibility on terms, faster turnaround on

project issues, and more integrated, holistic, programmatic approaches that move U.S. companies closer

to a level playing field versus foreign competitors.

n Prioritize power generation and distribution in USAID and MCC assistance both because of the key role

power plays in long-term economic growth and to leverage U.S. capacity to provide this type of

assistance.

n Encourage African governments to adopt gradually market-based pricing to leverage private investment

in the power sector and improve the foundation for long-term economic growth. Additionally, encourageAfrican governments to utilize currently flared gas for power generation as well as off-grid and distributed

power mechanisms, when appropriate.

n Strengthen the ability of African governments to create credit-worthy, power-producing entities that honor

power purchase agreements. Help governments establish and maintain a business-friendly environment.

Both elements are key to mutually beneficial progress in this sector.

HEALTH

n Advocate pro-market policies that protect private investment and promote U.S. exports, enabling new

investment in health infrastructure and the introduction of new technologies and services (e.g., U.S.

Bilateral Investment Treaty (BIT) program).

n Work to achieve greater regulatory harmonization across Africa. The continent is a patchwork of

regulations governing the registration of medicines, vaccines, medical devices and diagnostics, and

performance of these systems is greatly varied. Establish a public-private commission to put together an

action agenda on specific regulatory bottlenecks and how they could be eliminated, working together

with existing initiatives by the African Union and regional economic organizations.

n Encourage procurement standards that create a level playing field for companies to invest and increase

adoption of models of standardization at the country level (as seen at the World Bank). Convene aprivate sector advisory group to provide clear recommendations to the relevant USG agencies, which

could serve as the basis for bilateral discussions with the African Union, African regional economic

organizations and individual African governments.

n Strengthen core capacity of the health sector to address health system constraints (e.g., adequate

training, standards, regional collaboration and information sharing) by working with local and regional

partners. These partners include health ministries and service providers on the ground, ready to

strengthen their capacity to support and the health system. Increase resources for technical assistance

to address constraints.


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n Leverage existing resources in the U.S. to help African governments improve the African health

workforce. The USG can foster mechanisms to help professional organizations and universities in

partnering with African health ministries to address situations like the lack of qualified personnel, in

addition to driving standards of quality care. There is also an opportunity to combine United States

Government efforts (e.g., PEPFARs partnership initiatives with medical and nursing schools in Africa)

with the range of private initiatives sought to help strengthen human resources for health in Africa.

n Consult members of the private sector, review and revise the process and mechanisms for PPPs and

develop a simple, transparent, and replicable platform and design structure for PPPs. Build on the leading

practices of the Millennium Challenge Corporation, PEPFAR, and the Global Development Alliance

(USAID) to create a harmonized approach to engaging private sector partners in addressing development

cooperation for health in Africa.

n Invest in innovative approaches to engage the private sector. For example, USAID Programs like Saving

Lives at Birth, the Development Innovation Ventures, or Saving Mothers, Giving Life, could be adapted for

similar initiatives geared specifically to new models of collaboration to strengthen African health systems.

n Place greater priority on non-communicable diseases in the USGs health and development agendas,

utilizing the findings of the Global Burden of Disease Study 2010 to understand present and future

health challenges when shaping and determining resource allocations priorities in partnership withAfrican countries

n Establish coordinating mechanism to bring together public and private expertise in the U.S. and Africa to

develop integrated approaches to health, nutrition, water and sanitation and environmental issues that

together affect the health and well-being of Africans.

INFRASTRUCTURE

n Strengthen MCCs technical support to African countries for infrastructure. This can be accomplished by

incorporating a technical unit within the various compact countries, enabling ministries to facilitate

contracting and project development.

n Create an office within OPIC to coordinate infrastructure support, staffed by individuals with significant

private sector experience in emerging markets.

n Provide U.S. technical assistance to strengthen regulatory frameworks that promote infrastructure

investment.

n Provide technical support for land and private property rights legislation and tax laws that encourage

foreign direct investment (FDI).

n

Encourage the international donor community to prioritize infrastructure financing, including rail androad transport.

n Expand support for technical exchanges between U.S. and African infrastructure-focused institutions to

improve tenders and life cost cycles.

n Expand programs to support maritime infrastructure activities, including safe ports and ships programs.

n Continue support and expand funding and scope of the U.S. Department of Transportations technical

assistance and training programs.


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CAPACITY BUILDING, EDUCATION, AND TRAINING

n Expand consultation and coordination between the USG and U.S. private sector officials on capacity

building to better target resources devoted to this effort to promote Africas sustainable economicgrowth and further involvement by the U.S. private sector in that growth.

n Expand the public-private partnership (PPP) process so that USG capacity building programs can

more easily and directly support U.S. business priorities, including programs that promote

sustainable job creation in Africa - a top priority for U.S. African partners. To the extent possible,

PPPs should address issues germane to the African and U.S. for-profit sectors for sustainability and

maximum impact.

n Expand and deepen programs that promote good governance and a sound framework for business.

This includes promoting accountable fiscal, regulatory, tax, trade, intellectual property rights (IPR), and

governance policies, as well as sound project management, procurement programs, and anti-

corruption programs in partner nations.

n Expand long-standing U.S. exchange and educational programs and incorporate U.S. educational and

vocational training institutions so that they can establish deeper relationships with African institutions.

International exchange and broad development assistance programs have played key roles in

deepening the U.S. relationship with Africa.

SECURITY

n

Expand, or at a minimum, maintain government funding to the U.S. Department of State Bureau ofAfrican Affairs Africa Peacekeeping Program (AFRICAP) and Africa Contingency Operations Training

and Assistance (ACOTA) Program. These have played a vital role in building Africas capacity and

capability to ensure its own regional security.

n Sustain and increase funding to AFRICOM. Security engagement builds institutional capability and

capacity, resulting in increased stability.

n Work with U.S. security businesses to support U.S. sales of security services and equipment to African

governments. These efforts should include mounting a security trade mission to key African Countries;

organizing a security roundtable in conjunction with CCA trade missions, and coordinating with African

Ministers to provide opportunities to discuss security projects/programs in specific counties.

n Coordinate with CCA to organize a Security Forum for increased U.S. business engagement in Africa.

n In discussions with African government officials, highlight the interconnectivity of the training,

equipping, and other security services U.S. companies have provided in Africa. Mention the security

gains that have been made and the relevance of U.S. security companies expertise for the further

development of African armed forces and police services.

Please note: The following pages are chapters composed of introduction/context statements for each

sector as well as more detailed recommendations. Please note that each chapter has been written by

sectoral working groups and will vary in style accordingly.


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Cpt o: T PicThe private sector continues to place a priority on enhancing opportunities for trade

and investment with and within Sub-Saharan Africa. In particular, emphasis has

been placed on strengthening Africas internal and regional markets. Africas own

efforts to achieve regional integration through the Regional Economic Communities

(RECs) and African Union (AU) could be additionally supplemented through better

trade and investment policies and related capacity building programs.

The U.S. bilateral trade and investment relationship with Africa should reinforce this

vision. The business community continues to support efforts like the African Growth

and Opportunity Act (AGOA), which has been a cornerstone of U.S. economic

relations with Africa since May 2000, and strongly supports a new and enhanced

role for AGOA as part of a broader trade and investment strategy. Going forward,

CCA encourages the Office of the U.S. Trade Representative (USTR) in its policy

coordination function to make better use of Trade and Investment Framework

Agreements (TIFAs). TIFAs are a natural mechanism to more systematically engage

the private sector and identify and address concrete hurdles to market developmentand economic diversification.

In addition, CCA suggests greater use of other tools, such as Bilateral Investment

Treaties (BITs), to provide U.S. companies with increased access to key African

markets and reduce the perceived risk of conducting business in Africa. BITs are a

particular missed opportunity; out of the seven hundred BITs made with Africa, the

United States holds a mere six of them. The Trade and Investment Partnership

Initiative with the East African Community is yet another mechanism that can be

used to develop Africas markets and open them to U.S. trade and investment.


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InTelleCTual ProPerTy rIghT ProTeCTIonFurthermore, it is evident that several areas deserve greater attention. Protecting

intellectual property rights (IPR) must be a fundamental component to the Administrations

strategy toward Africa; it is critical to ensuring the competitiveness of both large and small

companies. IPR ensures private property and innovation, and, in the age of modern

technology, it is the engine that drives economic development and transforms middle to

low-income economies into knowledge-based economies. American workers, businesses,researchers and entrepreneurs must be able to capitalize on the returns of their creativity.

Similarly, African countries are also developing their own intellectual property that requires

protection. It is the collective interest of both U.S. and African countries to have a strong

IPR policy. The absence of proper protection of intellectual property results in a lack of

investors to spur economic growth. A deficiency in investor capital results in fewer

technology markets across Africa.

loCal dIsCrIMInaTory PolICIesLocal content policies also threaten to undermine innovation and competition, hindering

the ability of American companies to compete fairly in important markets. Indigenous

innovation and local content policies seek to boost domestic manufacturing, high-

technology, research and development (R&D) capabilities, and services by discriminatingagainst foreign companies. While used mainly by China (and Brazil, to a lesser extent),

local content legislation is now emerging in Nigeria, Ghana, Angola, India, Russia,

Indonesia and Argentina. In Africa, these policies have generally focused on the oil and

gas sectors; however, they are increasingly being applied to foreign businesses and

investments, including the ICT sector. Restrictive and discriminatory policies include

mandatory technology transfer requirements, local sourcing requirements in government

and private sector procurements, the escrow of source code and other sensitive design

elements, import restrictions, and restrictions on the flow of data. Despite notions that

every government should support and encourage the growth of local economies, it is

critical that this is not realized in a way that serves as a deterrent to much-needed Foreign

Direct Investment (FDI) and limits the development of diverse, healthy sectors.

reMoval of Trade barrIersThe private sector requests that the USG continue to urge and support measures to

improve the enabling environment for conducting business in Africa. While progress has

been made, as exemplified through the incentive provided by AGOAs eligibility criteria, the

private sector places particular significance on the fact that African markets still contain

significant barriers to trade, ranging from poor quality control to inadequate infrastructure.

Necessary reforms include harmonizing customs operations; improving standards and

transport rules; lowering tariff and non-tariff measures and implementing regional plans to

better integrate and facilitate trade. These issues can be most thoroughly approached

through sustained engagement with the business community, and a supply chain approach

that monitors challenges at all stages of the market. By disregarding issues so fundamental

to Africas own regional integration efforts, AGOA will not live up to its potential and U.S.

exports to Africa will be limited. This is an area where the United States can work with other

trading partners, like European nations, and international institutions, like the World Trade

Organization (WTO), to promote a shared agenda for Africas development.

As businesses, organizations, and governments look to promote the removal of trade

barriers within Africa, any mechanisms to encourage this should avoid approaches that

would undercut Africas own efforts at regional and continental integration. For example, the

European Economic Partnership Agreement (EPA) model has proven difficult because of

the limited negotiating capacity on the African side and the simultaneous process of

negotiation and implementation underway within the Regional Economic Communities


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(RECs). Under the EPA model, restrictive provisions limit value addition across countries

and make it difficult to increase and diversify trade with trading partners within and outside

of Africa. Further analysis has shown that complicated cumulation rules and provisions in

the EPA that allow for each region to carve out twenty percent of tariff lines under a

sensitive products exemption, while liberating everything else for European producers can

have a negative effect on local market growth. This can further complicate regional

markets, solidify the status quo, and open new market opportunities exclusively to a single,

more competitive trading partner. If the U.S. is serious about increasing opportunities in the

African market, we need better approaches and more analysis of where the real

opportunities lie and how they can be realized to everybodys benefit.

The recommendations below cover a comprehensive set of mechanisms and tools that are

needed to take full advantage of opportunities for trade and investment. Where appropriate,

individual agency roles are noted, and the private sector continues to strongly support an in-

tegrated, whole-of-government approach.

reCoMMendaTIonsStrengthen Trade and Investment Policyn

Examine ways to address intra-African barriers to trade and expand two-way tradewith Africa through enhanced use of TIFAs. This includes the development of ongoing

business dialogues under TIFAs, and establishing a more formal system for

notification and input through announcements in the Federal Register.

n Significantly expand use of Bilateral Investment Treaties (BITs) both bilaterally and

regionally, with a particular emphasis on key markets (e.g. Nigeria and Angola), with

an enhanced process for private sector input.

n Promote regulatory frameworks and legal systems that ensure the value and

protection of U.S. intellectual property assets. Obtaining protection of intellectual

property in different jurisdictions across Africa must be uncomplicated, affordable and

reliable.

n Increase focus on local content requirements in the form of legislation and/or

regulations that could have a discriminatory effect, and encourage African

governments to promote local economies in a manner that supports and ensures

open and pro-market conditions. Every effort should be made to ensure that such

policies are applied equally to all investors.

n Implement measures to promote U.S. exports to Africa through mechanisms to

improve and open Africas markets, as mentioned above.

n Expand the National Export Initiatives focus on Africa.

n Strengthen the work of the Trade Advisory Committee on Africa by making it more

effective in ensuring the National Export Initiative, among other Administration and

Congressional programs, is made more responsive to the private sector.

n Incorporate more technical expertise and additional private sector representation in the

Trade Advisory Committee on Africa. It should include a focus on the overall trade

relationship with Africa to ensure that U.S. companies are not disadvantaged by the

actions of other countries, and that the Administrations approach to trade with Africa

maximizes U.S. exports.

n Carefully study any proposals for reciprocal trade commitments and include private

sector input and analysis. Actively avoid models that could limit economic

diversification and overall regional and continental development, such as EPAs.


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n Strengthen focus on the incentives in AGOA designed to improve the enabling

environment for business.

n Make AGOA part of a larger economic strategy that incorporates ways to strengthen

both trade and investment.

n Renew AGOA expeditiouslywell before its 2015 expirationand secure existing

AGOA benefits for a period of time long enough to establish meaningful investment

opportunities, e.g., for at least ten years (extending from 2015 to 2025). Align third-

country fabric coverage so that it is in place for the same period of time.

n Commission a comprehensive International Trade Commission (ITC) study to

determine which products hold the most potential for Africas development and U.S.

investment that are currently excluded from AGOA, with the goal of completing the

study no later than by the end of 2013 in order for the results to be incorporated into

the new AGOA legislation.

n Expand AGOA product coverage as fully as possible, including additional market

access for tariff rate quota (TRQ) products, where advisable.

n Examine, revise and improve AGOA rules of origin as appropriate (e.g. the canned

tuna issue), to ensure that trade is not deterred.

n Carefully weigh possible sanctions linked to AGOA eligibility by focusing on economic

implications for the U.S. and African private sectors and evaluating the impact of

political sanctions.

n Engage other trading partners on a bilateral basis through mechanisms like the

proposed Transatlantic Trade and Investment Partnership with Europe and the WTO

to encourage development of a coordinated approach to supporting development of

the African market. In the case of Europe, this coordination should cover use of trade

preferences, reciprocal trade agreements, and the administration of standards and

sanitary and phytosanitary (SPS) measures.

n Work with African governments and the private sector on trade facilitation and otherareas of focus in preparation for the WTO Bali Ministerial in December 2013.

Continue Support for Regional Integrationn Support regional integration and the removal of constraints on intra-African trade

through the TIFA process and other mechanisms.

n Enhance trade and investment opportunities with priority regions across Africa,

including through the Trade and Investment Partnership Initiative with the East African

Community (EAC).

n Support AU and Abuja Treaty goals to form a continental FTA and Customs Union by

the end of the decade, using the RECs and Tripartite Group (EAC, COMESA andSADC) as building blocks.

n Enhance initiatives to facilitate regional customs cooperation, for example, by

eliminating customs checkpoints within Customs Unions.

n Establish mechanisms to encourage greater regional infrastructure investment by

building on programs through the MCC and USAID, among others.

n In partnership with the private sector, establish a USG-AU strategy, which must include

RECs and sector-specific initiatives like the Comprehensive Africa Agriculture

Development Program (CAADP) to encourage regional trade and open markets.


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Foreign Assistance, Technical Assistance and Capacity Buildingn Expand the use of the African Global Competitiveness Initiative (AGCI) for priority

sectors, including agriculture, energy and infrastructure. Strengthen the existing

AGCI strategy to promote economic growth, create jobs, and raise living standards

in Africa. Continue and enhance use of the AGCI regional Global Competitiveness

Centers or Trade Hubs in Ghana and Senegal (for West Africa), Botswana (for

Southern Africa) and Kenya (for East and Central Africa) and the related U.S.-AfricaBusiness Center (USABC) based at CCA in Washington, DC. Within Africa, expand

the Trade Hubs to include Nigeria, Angola and Tanzania to better align with business

priorities, as well as the AUs New Partnership for Africas Development (NEPAD)

Spatial Development plans.

n Use technical assistance and capacity building to strengthen local supply chains and

tie into private sector activities and market demand (USAID, MCC and others).

n Support an enhanced trade and investment approach through coordination among

multiple agencies (e.g. USTR, MCC, USAID, OPIC, EXIM, TDA) that have

complementary capabilities. This encourages the convergence and streamlining of

processes and programs around a pro-growth strategy that includes U.S. business at

its core.

n Place a priority on technical assistance programs that can improve local customs

operations, specifically through automating customs and creating one-stop border

posts. Strengthen anti-corruption technologies in tax and customs programs.

n Provide capacity building assistance that supports regional approaches to creating an

enabling regulatory and rule of law environment (coordination in regulation, measures

to address corruption, contract sanctity, power purchase agreement implementation,

etc.). The coordination and development of regulations on a regional basis will remove

some of the obstacles that constrain competition.

n Support the U.S. Commerce Departments Commercial Law Development Program to

build African capacity to implement trade requirements.n Improve the USGs coordinated system of trade, finance, advocacy and business support

specifically through USAID, OPIC, EXIM and the Department of Commerce in order to

meet or exceed similar support offered by other countries. This gives U.S. companies a

competitive advantage.

n Support African SMEs with U.S. programs from USAID, EXIM, the National Business

Incubation Association (NBIA) and the Small Business Association (SBA).

n Support technical capacity building wherever possible, especially through increasing

the presence of the U.S. Department of Agriculture, the U.S. Treasury Department and

the U.S. Department of Commerce representatives within Africa who can become

invaluable contacts for African and U.S. businesses.n Strengthen the role and involvement of the U.S. Department of Commerce in trade and

investment matters by establishing career positions at the African Development Bank

(AfDB) and the World Bank Group (WB) for Commerce Secondees. These Secondees

would be responsible for representing U.S. commercial interests on a full-time basis.

(Note: Today, there is no Commerce Secondee at the AfDB, and the Secondee at the

World Bank is shared with the Inter-American Development Bank.)

n Increase economic training for U.S. Department of State Foreign Service officers, and

greatly increase the presence of the U.S. foreign commercial service in Africa.


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Cpt T: ficDespite the global effects of the financial crisis, growth in Africa has remained

steady. Moreover, foreign capital inflows have recovered in the post-crisis period,

reaching a high of US$72.1 billion in 2010, but are still below the pre-crisis peak of

US$79.0 billion, according to the (African Development Bank, 2010). According to

the International Monetary Fund (IMF), seven of the worlds ten fastest-growing

economies are currently in Africa. Foreign direct investment (FDI) on one hand with

a jump of 27% from 2010 to 2011, and foreign portfolio investment (PFI) on the

other are playing a major role in this growth. Notwithstanding these developments,

the current level of capital investment is still inadequate to meet the continents

economic development needs. Moreover, there is a gap between U.S. current

policies and the fast-paced change occurring in Africa, which doesnt benefit U.S.private investors.

The following recommendations are designed to consolidate U.S. agency

resources and increase U.S. private sector competitiveness with long-standing and

new investors in the continent.


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reCoMMendaTIonsn Establish a target at the Presidential level for $10 billion in funding for

infrastructure projects, focused on areas that promote growth and in which

the U.S. private sector is competitive, such as agriculture, health, ICT,

energy, and heavy machinery.

n A growing number of African nations are tapping financial markets for the

first time and need U.S. Treasury Department technical assistance to makethis policy sustainable.

n Speed up the due diligence process by USG financial agencies.

n Enable U.S. financing agencies to certify companies using their proven

financial tools in order to speed up the financing process and increase their

overall competitiveness.

n Streamline the number of U.S. financial agencies and processes required

and reduce disbursement time. This will increase the U.S. private sectors

competitiveness in Africa.

n Create a one-stop-shop system that will speed up and ease disbursements.

This will translate into stronger competitiveness for U.S. private sector.

n Develop special purpose vehicles to fund projects in Africa, including

regional projects.

n Intensify consultations between the private sector that is actively investing in

Africa and key USG entities involved in financing including project financing

(i.e., USAID, MCC, OPIC, EX/IM, TDA, and State). This channel should

provide for clear, time sensitive communication on major policy and

programmatic issues, so that the views of the private sector can impact the

USG decision making process in real-time.

n Remove or reduce obstacles to flexible and fast USG financing, such as the

OPIC Carbon Cap, GMO seed restrictions, economic impact tests, use ofU.S. bottoms for transportation, and local content requirements. The goal is

to make USG financing fully competitive with that offered by other

governments.

n OPIC should create more funds and provide more funding focused on Africa.

n Encourage additional support from OPICs retained earnings reserve -

particularly for innovative projects in high-priority sectors like agriculture and

energy.


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n Increase the number of dedicated Africa staff focused on priority sectors in U.S.

agencies.

n U.S. agencies should make full use of statutory flexibility.

n Maximize the use of USG resources in Washington to develop and exploit

deeper collaboration and cooperation with international development

organizations, such as the World Bank and the International Finance

Corporation.

n Support and expand the work USAIDs Development Credit Authority (DCA) is

doing in Africa.

n Adequately fund a USTDA evergreen fund for African feasibility studies to be

used by the African Development Bank and/or World Bank, and dedicate staff to

promoting such endeavors. Follow up with coordinated efforts to link USG

financing to successful outcomes.

n Encourage the U.S. Treasury to sign more double taxation treaties with African

nations.

n

Urge USTR to develop and sign more Bilateral Investment Treaties (BITs) withAfrican countries where the U.S. has significant interests.


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Cpt : Imti Cmmicti Tc

Information and Communication Technologies (ICT) are transforming businesses,governments and societies across Africa and driving entrepreneurship, innovation

and economic growth. While most African countries are still at the very early stages of

ICT adoption and implementation, the impact of new developments in this sector

have already been substantial. This trend will continue to grow and will require strong

and supportive policy frameworks.

Due to the cross-cutting nature of ICT, development in this sector brings tremendous

benefits across all sectors of African economies. Leveraged properly, it can help

countries address a broad range of issues in key areas such as agriculture, energy,

infrastructure, financial services, education, government services and health. ICT is

critical to cross-border communications, sharing of data, financial transactions, and

encompasses an overall, fundamental vitality to regional integration and trade

facilitation. The implementation of ICT-related policies should therefore not be looked

upon as a single sector focus but rather as one which is multi-sectoral.

As is happening in the rest of the world, a new model of computing has begun to

transform African economies. Guided by the proliferation of computers, smart

phones, interactive TVs and other tools, information is now available from nearly

anywhere in the cloud. The aggregation of hardware in data centers results insubstantial economies of scale that give companies and consumers the agility to

upload and pay as they go for software, services and storage. This new model

dismantles historic barriers to entry (prohibitively expensive software and hardware),

and accelerates job creation and economic growth.

With the vast transformation potential of ICT in African economies, most African

governments include ICT as a critical component of their economic growth and

development agendas. Now the challenge is to ensure implementation and support of

the right policy frameworks ones that recognize the value of ICT and its global nature,

rather than those creating cross-border trade barriers or inhibiting foreign investment.The effective implementation of ICT will require cross-sectoral collaboration and the

involvement of various stakeholders. There are great opportunities for the private sector

to aid in the development and implementation of ICT solutions in Africa, and the USG

can play a critical role in partnership with private business. The Obama Administrations

focus on creating jobs and increasing domestic prosperity (at least in part by

approaching development as investment in future consumers of U.S. goods and

services) represents an excellent starting point for building on support for the ICT sector

across Africa.


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reCoMMendaTIonsSkills DevelopmentInfrastructure across Africa includes digital and human assets as well as

physical infrastructure. All these assets are critical to achieving sustained

economic growth. A lack of ICT infrastructure across the continent has meant

that these skills have not been prioritized in the educational systems, though

this is slowly beginning to change. The deficit in skilled resources is asignificant challenge for high-technology companies looking to grow in Africa.

The USG has provided some programs and funding to support capacity

building in ICT skills, and private companies are investing heavily in

curriculum development and teacher training. However, the demands for

skilled talent are dramatically increasing, and since Africas labor pool is the

youngest in the world and is expected to be the largest by 2020, more needs

to be done in education if U.S. businesses are to grow and expand.

n The USG should establish and expand partnerships with the private

sector to ensure the skills being developed meet the needs of ICT

companies operating in the marketplace.

n In close collaboration with African Governments, USG funding and

investments should be made in local vocational institutions and centers

of higher education that prepare African youth with the skills needed to

join the workforce.

PrivacyRealizing the promise of this new computing era does not require the

sacrifice of personal privacy or security. While some of these new ICT

solutions use personal information, or information that can be correlated with

identifiable individuals, a vast majority do not. It is important for nations to

recognize that information including personal information is a natural

resource that can provide citizens and entrepreneurs with economic savings,

quality of life improvements and numerous benefits that should not be

squashed due to privacy at risk. Public policy should focus on addressing

criminal and other problematic behaviors rather than technologies. Further,

as the European Union Agency for Fundamental Rights explains, The right

to data protection is not an absolute one but needs to be balanced with other

freedoms and benefits, e.g., freedom of expression and communication, the

right to protect intellectual and other property, the rights to pursue scientific

and social progress, and the right to run a business.

n The USG should avoid regulating technology or creating technology

mandates that inhibit innovation.

n Collaborate with industry and other key stakeholders to applyinternationally recognized privacy principles (e.g., OECD privacy

principles) to current technology and cultural realities.

SecurityGovernments and industry are increasingly aware of the need to protect data

and its cross-border flow in order to instill citizen and consumer confidence in

how information assets are handled and shared. Furthermore, as the world

becomes more interconnected, the security of critical infrastructure fuses

with the traditional cyber security concerns of data security, accountability

and identity management. For security programs to have a reasonable

chance at countering threats, they need to be fast, flexible, and efficient.


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n The USG should partner with industry on relevant solutions rather than creating cyber

security policies that may increase a companys exposure to risk by compelling it to

maintain security requirements that are rendered obsolete.

n Create incentives for securing private infrastructure and advance information sharing

that includes appropriate liability protection for the disclosure of cyber threat

information.

Cross Border Data FlowIt is important to be able to move data across borders while also protecting the data and

the people who create it. Promoting cross-border data flow enables small and medium

businesses to compete, grow and reach customers in the global market place. Over-

regulation of cross-border data flows could undermine legitimate and compelling

opportunities and stifle innovation.

n Promote an international privacy and security regime that allows for data transfers

across borders. While it is not practical to seek the complete harmonization of rules, it

is for countries to publicly recognize one anothers data protection laws (including

privacy safeguards) to the greatest extent possible.

n Where appropriate, allow service providers to transact business on a cross-borderbasis without having to establish a local presence.

n Ensure existing policies do not preclude the ability to outsource ICT functions as

appropriate, especially in the financial sector.

Internet RegulationAny regulation of the internet by governments should be light-handed and focused on

specific appropriate areas such as criminal law enforcement, property rights (including

intellectual property rights), fraud prevention, and consumer protection. The problem with

the proposed treaty considered at the World Conference on International

Telecommunications was not that it contemplated a role for government in policing the

internet, but rather that it attempted to impose the unlimited control of an intergovernmental

body on top of the policies freely adopted by sovereign nations. Such control would

severely weaken the technological freedom that is the hallmark of the internet.

n Recognize and support the role of multi-stakeholder processes as an alternative to

intergovernmental standard setting. This inclusive approach followed by ICANN, W3C,

IETF and ISO/IEC allows open participation by governments, industry, technical

groups, academics and public interest and civil liberties groups.

n The USG should encourage the ITU to continue its technical telecommunication

standard-setting function as one effort among others to address the need for common

standards providing internet services. The standard-setting role of the ITU should

focus on telecommunication, rather than on creating IT standards.

n The USG should continue to promote the Internet Governance Forum initiative as an

appropriate multi-stakeholder forum for discussing important governance issues.

ConclusionLeveraging the innovations and capabilities presented by this new era of computing

presents African nations with tremendous opportunities for economic growth. The

proposed, forward-thinking policy recommendations will cultivate and attract knowledge

workers, foster innovative businesses, and improve the overall welfare of the ICT sector

across the African continent.


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Cpt f: aict dpmt aiiAfrican agricultural development is of vital strategic interest to the United States. It is

directly linked to political stability, food security, and hunger alleviation and economic growth,

as well as to investment opportunities, and sustainable markets for U.S. and African

businesses alike. CCA and its members envision the USG, African governments,

multilateral agencies, global donors and the private sector uniting in a coordinated effort

over the next four years to realize profitable, win-win commercial opportunities; enhance job

creation and spur poverty reduction; increase trade; and advance targeted private

investment opportunities focused on scaling up agricultural investment and capacity growth.

CCA and its members applaud the leadership and success of the Obama Administration

in placing the fight against global hunger back where it belongs at the forefront of

global development and keeping global food security at the top of the U.S. national

security conversation. Much has been accomplished since the global food crisis of 2008,

as indicated by gains in the Feed the Future scorecard, and the USGs leadership has

been an important stimulus. African governments have made their own plans and

increased their own investments; donors have increased their contributions and aligned

assistance with these efforts; and the private sector has stepped forward with new

interest and commitments through a variety of partnerships, notably the New Alliance for

Food Security and Nutrition.


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MaInTaInIng suCCessful leadershIP InagrICulTural develoPMenTThis effective leadership should be maintained over the next four years, but more

focus is needed on how the public sector can help the private sector reach its

potential for more effective participation in agricultural development. With

increased knowledge, incentives and coordination, the private sector can multiply

the impact of USG resources and help achieve sustainable growth by supportivestrategic investment, leveraging of resources through public/private partnerships,

support for removing policy impediments and encouraging the technical talent of

its employees.

Farming can be a profitable business. CCA believes that, while developing the

skills and productivity of the many small farmers in Africa is central, a targeted

value chain approach that facilitates opportunities all along the supply chain will

drive broader economic growth at the scale that is needed. Creating wealth in

African regional economic communities, within country borders, and along trade

and development corridors can be accomplished through linking small

enterprises into commercially-sound local, national, regional and global value

chains. Often missing, however, is a strategy for informing the U.S. private sectorof investment and export opportunities along key value chains.

USAID-funded and other programs developed within the last four years are

already demonstrating success with the value chain approach. One four-year

USAID project is reducing the number of people living on less than US$1.25/day

in Northern Ghana by improving the competitiveness of three target value chains

(rice, maize, and soya). USAID collaborates closely with Ghanas Ministry of

Food and Agriculture in planning and implementing Ghanas Medium Term

Agriculture Sector Investment Plan (METASIP). The NAFAKA Staples Value

Chain Activity in Tanzania is another USAID project integrating agricultural,

gender, environment and nutritional development efforts to improve smallholder

productivity and profitability in the maize and rice value chains in targeteddistricts. The project increases incomes for smallholder farmers, including men,

women and youth. Many partners (African governments, USG and other donors,

and the private sector) will need to play a role in making this vision a reality, and

the remainder of this brief details proposed areas of collaborative work over the

next four years and beyond. Decisions are informed by extensive CCA member

experience in African agriculture, and findings discussed at CCAs 2012 U.S.-

Africa Agribusiness Investment Forum in Addis Ababa, Ethiopia.


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reCoMMendaTIonsValue Chain Developmentn Coordinate USG support for agricultural development and agribusiness in

Africa with ongoing efforts under the USAID Feed the Future/Grow Africa/New

Alliance initiatives and focus on these initiatives priority countries and value

chains, particularly end of value chain activities.

n Focus USAID Feed the Future implementation programs not only on primaryproduction, but also on end of value chain projects impacting post-harvest

losses such as grain storage, cold chain technologies for perishable goods,

and transportation.

n Ensure that any Presidential trip to Africa includes at least one stop in a Grow

Africa/Feed the Future priority country, tailored to focus at least in part on

opportunities in agricultural development and agribusiness in collaboration with

U.S. agribusiness companies and agricultural development experts.

n Continue programs like the USAID Global Development Alliance and

Development Innovation Ventures that provide direct financial support to private

sector investments.

n Actively link the private sector with national and regional Comprehensive Africa

Agriculture Development Program (CAADP) efforts to advance value chain

opportunities that hold the greatest potential (USAID, USTR, USDA and

others).

n Promote farm-specific programs (e.g., soil testing) through the USDA and other

agencies to improve production resulting from funds directed toward fertilizer

subsidies.

n Promote country-specific education of farming techniques that apply to climate

and soil types, as well as crop-specific recommendations.

n

Encourage government development and trade agencies (including EXIM andOPIC) to focus on U.S. technologies in support of agriculture especially those

that address climate change impact on crops.

n Increase the use of OPIC political risk insurance tools for U.S. companies

investing in Africa.

n Emphasize technology transfer with SMEs through government programs and

the Small Business Administration.

n Promote the use of multilateral resources, including through the Global

Agriculture and Food Security Program Private Sector Window, managed by

the IFC, to encourage increased investment along value chains.

Capacity Building and Technical Assistancen Incorporate programs that support youth development and entrepreneurship in

agriculture into the White Houses Young African Leaders Initiative (YALI) and in

other government programs. Ensure that this is not only at the tertiary level, but

also for primary and secondary school levels.

n Prioritize the provision of increased technical and financial support to

agricultural extension services in priority countries in Africa through USAID and

USDA programs, with a focus that includes (but is not limited to) tree crops.


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n Continue budgetary funding for important exchange programs such as

USDAs Norman E. Borlaug International Agricultural Science and

Technology Fellowship Program and USAIDs Africa LEAD program, which

allow for important knowledge transfer.

n Cooperate with the private sector to convene a Youth in Agribusiness forum

under the auspices of YALI and other related initiatives for corporate

partners, government ministries, and NGOs. Use this forum as a vehicle toshare best practices and recommend policies that bring youth into the

agricultural value chains and promote agribusiness development.

n Expand USDA programs that strengthen African agricultural and

agribusiness institutions through expanded ties to U.S. universities and

agricultural research institutes, which are well-positioned to help build

capacity. Ensure that there is a role for the private sector as a partner,

including supporting U.S. companies that have research collaboration with

U.S. colleges and universities.

n Increase investment in existing agribusiness programs in African university

networks and expand tertiary agribusiness programs in Africa to raise African

skill levels in agricultural commodity trading, commodity exchange contract

design, financing, management, equipment operation and maintenance, and

smallholder business entrepreneurship.

Innovative PPPsn Continue administering government projects (e.g., through MCC, USAID,

OPIC, etc.) through a public-private partnership (PPP) framework, and focus

content on cooperatives and projects that can be brought to scale.

n Incorporate private sector input at initial stages of program design for all

USG agencies. Evaluate successful existing models for scaling up and

emphasize agricultural infrastructure projects to create market linkages.

n Use the PPP mechanism to fund innovations in the agricultural developmentarena, including, but not limited to, mobile phone-based technology, and

improved seed varieties, and other planting materials, including tree

seedlings.

n Strengthen advocacy within PPPs for scaling and structuring of agricultural

projects. Include the traditional farmer/small grower in the structured value

chains that are relevant locally.

n Increase the presence of commercial attachs and USDA staff in Africa.

n Streamline inter-agency response times to the private sector, including

defining implementer roles, clearly explaining how to access funding,

quickening the pace at which USG informs companies of Foreign CorruptPractices Act (FCPA) compliance, and listing subcontractors and contacts

clearly on relevant websites.

n Benchmark the efficacy of international programs and PPPs through

comparison with other countries and trade/investment institutions.


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Agricultural Financen Design USG programs to provide capacity building support to financial

institutions in priority African countries so they are better equipped to provide

financial loans to businesses of all sizes.

n Create programs that focus on collateral needed to access financing, which is

often a stumbling block for small and medium farmers.

n Support the development of leasing mechanisms by creating a clear and

predictable legal environment that guarantees proper use by all parties.

n Encourage African governments to pass and implement land reforms that

allow smallholder farmers (including women farmers) and cooperatives to hold

title to land and use it as collateral.

n Encourage cooperative law reform, uniting small farmers to create increased

incentives for private sector activity and empower small holders to become

active players.

n Emphasize, through government programs, new methods for agricultural

finance, especially through mobile technology, which is widespread acrossAfrica.


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Cpt fi: e oi g PafrICas eMergenCe as a vITal energy ParTnershould be enCouragedAfrica will be an increasingly important part of the global oil and gas and power

sector in the coming years. The U.S. must expand efforts to forge productive

partnerships with Africa both in producing oil and gas and helping to close the

rapidly expanding gap between power production and demand on the continent.

oIl and gas ConTexTThe recent emergence of the United States as a major source of new energy has

strategic implications for U.S. foreign policy and national security. North Americatoday has larger oil and natural gas reserves and resources than any other region

in the world, with more than 90% of these in previously inaccessible formations

such as shale rock and oil sands. Today, the U.S. is leading the world in the growth

of global oil production and this trend is likely to continue. Economic and

commercial engagement must be a sustained, dynamic pillar of U.S. foreign policy.

Nowhere is this more evident than with the U.S.-Africa energy sector.


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Africas strategic importance for global energy security and prosperity continues

to grow and must command regular engagement. Overall, the continent has a

high rate of economic growth and has made progress on political reform,

improving the legal and regulatory framework for business, and provides high if

not the highest returns on investment in the world. Further improvements in

legislation and regulation along with more efficient government institutions would

provide project sponsors with better means to facilitate smooth implementation,financing, and operation of long-term energy projects. In the energy sector,

addressing the opportunities and challenges in Africa requires a comprehensive

U.S. policy that is proactive, forward-looking, and that considers Africa as an

opportunity, rather than a humanitarian challenge. In addition, U.S. policy must

balance our long-term interests with near-term imperatives.

Continued U.S. leadership is critical to promoting global growth and stability in

energy. U.S. leadership is a critical factor ensuring that American technology,

innovation, and, above all, values are effectively utilized and reflected as nations

address changing economic and energy dynamics. The United States has the

opportunity to affect global growth and stability through the formation and

deployment of energy initiatives that enable more countries to access affordable,sustainable energy supplies through market-driven principles rather than

protectionist policies. Sustained engagement through ongoing dialogue with key

energy partners is essential.

This continued engagement will create a positive foundation for U.S. energy

industry activities abroad, providing an opportunity for the U.S. energy industry to

be positioned as a partner and technical resource in the development of

sustainable economic policy. As industry leaders in the effective development of

safe, reliable, and environmentally sound production of global energy resources,

our U.S. energy companies play a key role in promoting economic growth. The

State Departments recognition of the fundamental linkages between economics,

energy, and U.S. foreign policy with the creation of the Bureau of EnergyResources will be a vital factor to advance U.S. interests through substantive

engagement globally. The creation of this bureau represents a major step toward

true integration of energy and foreign policy. A strong and effective pro-trade and

investment policy is needed to promote energy development. An active trade

policy built on securing strong investment protections and level playing field

market access will be a second key element to meeting the critical, growing

infrastructure needs that will be essential to allow the development and

production of energy resources that will fuel growth through the 21st century.

There are important opportunities to reduce gas flaring and provide support to

countries to convert gas to power, monetizing that resource to support broad

economic development. At the same time, there are also opportunities to

support distributed and off-grid power development.

With new producers such as Uganda, Tanzania, and Mozambique coming on

stream, Africas production of oil and gas is poised for substantial increase. At

the same time, the continents demand for electric power is mushrooming and

efforts to meet this demand are falling short.


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Power ConTexTIndeed, Africa suffers from a massive energy deficit, including inadequate

generation and distribution, resulting high costs, environmental degradation, and

an overall negative impact on economic growth and job creation. Power is at the

heart of enabling growth in Africa, including in ICT, health, education, and

productivity growth through technology. U.S. companies and organizations hold

much of the expertise needed to address Africas energy deficit. U.S. exports are acost-effective way to meet Africas growing demand for power, especially when life-

cycle cost and quality considerations are taken into account.

Excluding South Africa, only 20 percent of sub-Saharan Africas population has

direct access to electricity. This number plummets to five percent in rural locations.

The nations of Sub-Saharan Africa currently generate less than 70 gigawatts of

electricity, roughly equal to that of Spain alone.

Many African businesses must purchase diesel generators to have access to

reliable and consistent power, tripling their power costs per kilowatt-hour and

thereby depressing profit margins, limiting business investment, and decreasing

export competitiveness. In addition, the two major sources of energy in Africa today coal and biomass are often used in an unsustainable fashion that contributes to

increased carbon emissions, deforestation, erosion of farmland, and other

environmental problems.

The lack of energy infrastructure, high energy costs, and environmental

degradation are major obstacles to development for much of the African continent.

These problems offer both challenges and opportunities for U.S. policy toward

Africa, but substantially increased investment in the continents electricity sector is

essential if sustainable economic growth is to take hold. U.S. companies and

organizations have significant expertise relevant to addressing Africas electricity

deficit. U.S. policy should support African countries efforts to take ownership of their

energy needs and, with the assistance of U.S. companies and organizations,

develop their power infrastructures.

Africa offers many opportu

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