Address at the World Trade Center of New Orleans

on the topic of

Congressman William J. Jefferson's speech was based on the following information which was prepared by his senior trade policy advisor Nicole Venable-Smith.

I am pleased to be here with you today to discuss opportunities for Louisiana companies in sub-Saharan Africa. INTO AFRICA. The title of this conference is aptly titled. Last year, the U.S. Congress passed the African Growth and Opportunity Act or AGOA. For the first time, this historic legislation established a mutually-beneficial policy with the nations in sub-Saharan Africa. AGOA opens the door for increased trade and investment INTO AFRICA. This bill also provides incentives for U.S. exports INTO AFRICA. And in this conference we hope you will gain ideas and initiate deals that will take your companies, your products and your services INTO AFRICA.

Background on AGOA

The African Growth and Opportunity act is the culmination of more than five years of effort. Its long overdue.

It is appropriate that Congress has focused U.S.-Africa policy on economic development, trade and investment, and job creation. Increased U.S.-sub-Saharan trade is a mutually-beneficial proposition. Trade and investment will increase jobs in the United States and opportunities for American companies abroad. In addition, African nations will benefit from expanded access to the U.S. market and increased foreign investment.

As many of you know, I have traveled to Africa many times. Each trip was another extraordinary experience. It was my privilege to travel with President Clinton on his successful mission to Africa in March/April 2000 to Ghana, Uganda, Rwanda, South Africa, Botswana, and Senegal. The trip was truly historic. President Clinton was the first U.S. President to visit the Continent since the Carter Administration. I also traveled with Mr. Clinton on his more recent mission to Nigeria.

I think the President’s first trip achieved two important goals. First, the mission allowed many Americans to think of Africa in new terms. Images of war-torn, extreme poverty areas are now supplemented with images of bustling cities and emerging industries. The trip highlighted the enormous economic opportunities for the United States. Now, Sub-Saharan Africa is viewed as an important destination for trade and U.S. investment.

Second, the Presidential Mission signaled to the leaders of Africa that, we applaud the progress they have made in establishing stable democracies and in undertaking economic reforms. Again and again, President Clinton discussed the U.S. commitment to lead not only an American effort to foster closer economic ties, but an international effort to foster investment and growth in Africa.

Let me discuss briefly with you how the African Growth and Opportunity Act was conceived. In 1994, as the Ways and Means Committee considered legislation to implement the Uruguay Round Agreements Act, my colleagues and I noticed that the Act did not contain any significant provisions relating to Africa.

So, in a bi-partisan way, Congressman Rangel, McDermott, Crane, and Houghton and I included a provision requiring the Administration to develop and report annually on a Comprehensive Trade and Development Policy for Africa. These reports began a shift in the way policy-makers viewed U.S. -Africa relationship. We then sought the input of the private sector and African leaders who were interested in attracting foreign investment and establishing stronger manufacturing bases. The results can be found in H.R. 434, the African Growth and Opportunity Act; truly a collaborative effort of all the stakeholders.

The bill recognizes that some 30 Sub-Saharan countries have undertaken extensive economic reform programs, including liberalizing exchange rates and prices, privatizing state-owned enterprises, ending costly subsidies, and reducing barriers to trade and investment. And more than thirty-five SSA countries are members of the World Trade Organization (WTO) and still others are pursuing WTO membership.

The Africa bill is designed to complement the economic programs African nations themselves have decided to pursue by offering increased preferential access to the U.S. market and increased dialogue with the United States on deepening our trade relationship. It is an attempt to replicate the growth and economic reform that has been achieved by developing countries in Latin America and Asia.

The benefits available under H.R. 434 provide additional financial supports for countries to continue economic reforms and incentives for the most aggressive reformers to liberalize their markets even further.

Many African countries have undertaken significant reforms essential to meeting the goals of economic development and greater integration into the global marketplace. Countries should adopt policies and regulatory frameworks that foster openness, entrepreneurial creativity, private investment and a legal system that protects property and basic rights. It is our hope that the bill will foster a more attractive environment for foreign investment and capital flows.

Already, the U.S. is Africa’s single largest trading partner. Let me take a moment and discuss why Africa’s market matters to the United States.

The Importance of the African Market

Africa represents an untapped market of 700 million consumers for American goods and services--more than Japan and all of the ASEAN nations combined. The African Growth and Opportunity Act will encourage African to redouble their trade liberalization efforts and market-based economic reforms which will provide American firms and workers with access to the growing economies in Africa.

• A comparison of U.S. trade with selected regions shows that in 1999, U.S. total trade (exports plus imports) was $19.5 billion with Central American Common Market, $19.6 billion with sub-Saharan Africa, $33.4 billion with Mercosur, and $117.5 billion with ASEAN.

• Two-way trade between the United States and Sub-Saharan Africa recovered strongly in 2000 from a lackluster performance in 1999, propelled by surging prices for imported crude oil and modest increases in U.S. exports to South Africa and Nigeria.

• U.S. Trade with sub-Saharan Africa totaled $29.4 billion in total trade (exports plus imports) during 2000.

• U.S. exports to Africa grew 6.4% to $5.9 billion, although sales did not recover all the ground lost in 1999 from the record 1998 export level. The increase was led by sales of aircraft to South Africa and Kenya, and oil field equipment to Nigeria.

• U.S. imports from Africa surged by two-thirds to nearly $23.5 billion, due to soaring prices for crude oil. The U.S. trade deficit with Sub-Saharan Africa more than doubled in 2000, to $17.6 billion.

• As U.S. trade with Africa grows it becomes more concentrated, with a small number of countries accounting for a larger share of both exports and imports.

• The U.S. exported $5.9 billion of goods to the region and imported $23.5 billion from the region. U.S. exports to sub-Saharan Africa have increased by 35 percent over the last six years between 1994 and 2000.

• U.S. exports to sub-Saharan Africa were led by the machinery category, accounting for 22 percent of overall exports in 2000. The five largest export categories were machinery ($1.3 billion), aircraft ($803 million), cereals (wheat and meslin--$411 million), electrical machinery ($379 million), and vehicles (auto and auto parts--$348 million).

• South Africa is the largest U.S. market for exports in sub-Saharan Africa with $3.1 billion in 2000, over half of U.S. exports to the region. The next four largest markets are Nigeria, Kenya, Angola and Ghana.

• U.S. imports from sub-Saharan Africa were dominated by the mineral fuel category, which accounted for 74 percent of overall imports in 2000. The five largest import categories were mineral fuel, precious stones, iron and steel, woven apparel, and ores slag, and ash.

• Regarding services, the U.S. had a services trade surplus of $20 billion with Africa in 1999. Trade in services with Africa accounted for 35% of the level of our merchandise trade with sub-Saharan Africa. The services surplus was up 186% between 1994 and 1999.

• U.S. services exports to Africa increased in 1999 by $288 million to $4.7 billion. It was up 81% since 1994.

• In 1999 and 2000, the U.S. remained an important trading partner for thee region; the majority of trade was concentrated with the countries of South Africa, Nigeria, Angola, Gabon, Cote d’Ivoire, and Kenya.

• In 1998, U.S. sales to sub-Saharan Africa reached their highest total ever, $6.7 billion. This strong growth contrasted with declines in U.S. shipments to East Asia, Eastern Europe, and the Newly Independent States (NIS).

• The U.S. was Africa’s second leading industrial country supplier in 1998 for the second consecutive year.

U.S.-Sub-Saharan Africa textiles trade

• African textile and apparel exports to the U.S. in 1998 were only $570 million--only .86% of the total U.S. textile and apparel imports.

• The ITC believes that the AGOA bill would result in an increase of African apparel exports to the U.S. of between 25 and 50%. An increase such as this would represent a significant change for Africa, but would have a minimal effect on the U.S. economy.

• The ITC study also concluded that even if all quotas and tariffs on African textile and apparel were removed, African imports would only constitute 1% of total U.S. textile and apparel imports. By comparison, the U.S. imports more than 50% of our apparel from Asia and 13% from Mexico.

U.S.-sub-Saharan Africa Agricultural trade

• Africa is also an important agriculture market for the United States. Already, U.S. agricultural exports to sub-Saharan Africa are greater than U.S. exports to many well-developed markets, such as France ($492 million) or Australia ($329 million).

• U.S. agricultural exports to the African Continent were valued at $2.1 billion in 1998, greater than U.S. agricultural exports to the ASEAN region ($2.1 billion), Central America ($1.2 billion), the former republics of the USSR ($1.2 billion), South Asia ($619 million), or Eastern Europe ($272 million) and nearly as large as U.S. agricultural exports to South America ($2.5 billion).

• U.S. agricultural exports to sub-Saharan Africa totaled $726 million in 1998, an increase of $19.7 million (3 percent) from the 1997 level.

• U.S. agricultural imports from Africa totaled about $905 million. The resulting trade surplus for the United States was $1.2 billion in 1998.

• In 1998, wheat and wheat flour was the 5th largest U.S. export product to sub-Saharan Africa with a value of $262 million. Wheat and wheat flour represent 38 percent of U.S. exports to the region.

Clearly, this is a Continent with many opportunities for U.S. companies even without the Africa bill. But, many of the countries in Sub-Saharan Africa are poised to enter into a more mature economic relationship with the United States--and to do that, we must shift U.S. policy towards trade with Africa. Our bill provides the catalyst for this shift.

Outline of the AGOA Legislation

Let’s get to specifics about the African Growth and Opportunity Act.

The Africa bill sets forth a trade and investment policy for the United States and the countries of sub-Saharan Africa (SSA) and establishes a transition path from development assistance to economic self-reliance for African countries committed to economic and political reform. Among other things, the bill provides for an annual high-level Forum to discuss economic and trade issues, including the effect of AIDS on the African workforce; directs the president to discuss opportunities for U.S.-SSA Free Trade Areas; promotes OPIC and EXIM efforts in the region; reforms the Development Fund for Africa and highlights the need for effective debt relief.

In addition, the bill includes a trade initiative for Africa’s boldest economic reformers. The bill would expand the Generalized System of Preferences (GSP) program and provide duty-free treatment to products from sub-Saharan Africa currently excluded from the GSP program.

Most significantly, the bill provides for additional benefits for apparel products from the sub-Saharan region over the next eight years:

• Duty-free, quota-free benefits to apparel made in Africa from U.S. yarn and U.S. fabric (807/809);
• Duty-free, quota-free benefits to apparel made in Africa from U.S. or African yarn, African fabric up to the cap. The escalating cap starts at 1.5% of U.S. imports of apparel and rises over 8 years to 3.5 %. (Current percentage for Africa is about 1.1% with growth rate for 98-99 of 10%.)
• Duty-free, quota-free benefits without cap to all knit-to-shape sweaters made from third country yarns not available in U.S. (including silk, cashmere and merino wool).
• Duty-free, quota-free benefits for poorest countries, for four years, to be able to use THIRD COUNTRY FABRIC in making regional apparel. Poorest country definition is less than $1500 GDP per capita, which includes all but 6 sub-Saharan African countries and includes Swaziland.
• Provides that existing quotas on Kenya and Mauritius will be removed, subject to two conditions specified in House bill.

Lastly, AGOA highlights the need to address the AIDS epidemic in sub-Saharan Africa and includes two Sense of Congress provisions from the House bill: (1) encourages the U.S. private sector to take a more active role in eradicating AIDS in Africa and (2) calls on the U.S. to make eradication of AIDS a top policy priority.

If you want to find more details about AGOA and how you can participate, you can check out the Administration’s website www.AGOA.gov.

Implementation of the Africa Trade Bill

As a chair of the African Trade and Investment Caucus, I have followed the implementation of AGOA closely. Unfortunately, this process has had both problems and some amazing successes.

While thirty-five countries have been designated as AGOA beneficiaries; only five--Kenya, Mauritius, Madagascar, South Africa, and Lesotho have been certified to ship apparel products under the AGOA program. The sponsors of AGOA had anticipated that more countries would have been designated by now.

Examples of impediments to taking advantage of AGOA include difficulty accessing shipping and other transport to the United States and the cost of such transport, difficulty in finding marketing channels for African products, difficulty meeting U.S. consumer or government quality or sanitary and phytosanitary standards, and limited production capacity.

Apparel shipments under AGOA face many of the same foes who opposed the Africa bill in the first place. Many in the domestic textile and apparel industry continue to oppose the liberal implementation of this bill out of an unwarranted fear of competition. We have had to monitor closely the promulgation of Customs and Treasury rules regulating the entry of AGOA products.

We have found that while the Agencies administering this program are working diligently with sub-Saharan countries to meet the bill’s eligibility criteria; they suffer from severe staff and resource shortages. On this, the African Trade and Investment Caucus is working on an appropriations initiative to shore up Administration resources for full implementation of AGOA.

Positive Results from AGOA

As we approach the first anniversary of AGOA’s enactment, and despite all of these hurdles, AGOA has brought some good and welcome developments. AGOA has stimulated investment and trade. It has also been a mechanism for encouraging reform.

Reforms and Commitments

Economic and Judicial Reforms

• In a number of African countries the AGOA has resulted in the creation of joint public/private sector implementing committees. This has strengthened public and private sector cooperation in trade, investment and economic planning.

• Botswana has started a process to privatize such state-owned entities as Botswana Telecommunications and Air Botswana.

• The Government of Cameroon agreed to cooperate with Transparency International (TI) to address corruption and judicial reform, which is opening an office in Yaounde. The GOC has set up a monitoring team headed by the President of the Cameroon Bar Association to collaborate with TI.

• The Government of Eritrea has begun the process of implementing reforms related to AGOA, including the introduction of a harmonized tariff system and promulgation of a commercial code. The new tariff system has been approved and awaits implementation; the commercial code was drafted last year and is awaiting parliamentary approval.

• The Government of Gabon has committed to develop and adopt an anti-corruption law.

• Kenya has begun addressing a number of trade-related problems by: 1) starting to reform its IPR laws to comply with the WTO Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS); 2) requesting technical assistance on dealing with dumping problems; and 3) agreeing to work with the ILO on child labor issues.

• Mali has committed to reforming its judiciary and laws related to business and trade.

• In Madagascar, the Customs Service is undergoing a number of organizational and operational changes to cope with AGOA’s requirements and there are reports (from US Embassy) that AGOA is motivating the country to clean up tax and customs fraud.

• The Ministry of Industry of Madagascar is now in the process of: 1) reforming the EPZ law in order to increase local and foreign investments; 2) establishing a mechanism to review protection of intellectual property rights; and 3) improving its privatization program.

• The Government of Madagascar promulgated a new law on government procurement procedures that will ensure that contracts are awarded on a competitive basis.

• The Central African Republic is in the process of adopting a new investment code designed to be more open to foreign investment and bring the country’s trade and investment policies more in line with other countries in the region.

• In Chad, a new investment charter has been drafted and awaits approval by Parliament.

• The Government of Chad privatized a major parastatal in April 2000 (sugar).

• The Government of Chad adopted two anti-corruption laws in January 2000, which: 1) establish financial and penal sanctions for acts of corruption, extortion, and abuse of public office; and 2) create a High Court of Justice to preside over cases involving the misuse of public funds.

• The Government of Guinea has simplified its regulations to encourage investment - establishing a single window that allows both domestic and foreign investors to get information and paperwork completed in a single office. Guinea has also established an Arbitration Office to mediate commercial disputes.

• Guinea agreed to institute a Consultative Council to oversee justice matters and improve legal training.

• Guinea’s efforts to eliminate corruption include: 1) adopting a legal framework with reinforced anti-corruption provisions; and 2) creating a committee to enforce anti-corruption measures.

• Guinea’s Ministry of Justice has asked for World Bank assistance in its effort to reform the legal and judiciary system to remove all impediments to free trade, free enterprise and international exchange.

• The Government of Guinea has agreed to receive US technical assistance on reforming the justice system, including: 1) due process and prison conditions; 2) corruption; 3) labor rights; and 4) human rights.

• Nigeria established an Anti-Corruption Commission in the fall of 2000. The commission’s mandate is to investigate corruption. Action against corruption will encourage increased transparency, economic development, and the rule of law.

• The Government of Niger has asked for technical assistance to develop measures to effectively protect IPR.

• To combat corruption, Senegal has instituted audits of all government agencies and state-owned concerns by outside auditors.

• Sierra Leone is developing recommendations for improving the trade and investment climate.

• The Government of Tanzania has made a commitment to: 1) reform and streamline the Tanzania Revenue Authority; 2) improve port facilities; and 3) privatize the most important port activities.

• The Government of Uganda is making economic reforms by: 1) preparing legislation to ensure compatibility with TRIPS; and 2) working with USAID, and establishing internal mechanisms to combat corruption.

Trade and Investment Response to AGOA

• The trade and investment response has been mixed with results largely depending on a country’s infrastructure, regulatory environment, and production capabilities and potential.

• While trade and investment statistics are not yet available, anecdotal evidence indicates that in many countries, AGOA has led to substantial new investment, jobs and trade. Countries where this is particularly true include Ghana, Kenya, Lesotho, Madagascar, Malawi, Mauritius, South Africa, Senegal, Tanzania, Uganda and Zambia.

• Examples of new trade and investment in some of these countries include:

-- Kenya: The Kenyan Government has predicted that AGOA will result in investments of $13 million with 50,000 direct and 150,000 indirect jobs being created. The Government also expects that apparel exports will grow to $69 million in 2001 and has so far announced new investments and expansions of existing investments totaling over $6 million and representing over 5,000 jobs plus 4,000 new indirect jobs. The Government is hoping to revive Kenya’s cotton sector and has donated 10,000 kilograms of cotton seed to farmers in one part of Kenya.

-- Lesotho: Eleven new factories and four expansions, with a total employment capacity of 10,000, are awaiting space (from the Lesotho National Development Corporation). The Government plans to buy additional land to satisfy the demand. Specific investments planned include: One Asian investor announced plans to invest $100 million in construction of a factory complex including a denim mill and two garment factories. Expected new employment at least 4,800; two $1 million expansions by current jeans and textile plants; a South African investor has started construction of a $20 million facility (employment expected to reach 6,400). In February the Cotton Council Intl. conducted a trade mission to Lesotho.

-- Madagascar: Imports of knit and woven apparel from Madagascar increased approximately 137% from 1999 to 2000 in anticipation of the AGOA benefits. Madagascar has incorporated new training and transparency initiatives.

-- Malawi: AGOA has led to foreign direct investment in two garment factories in Malawi. Total employment could increase by 10,000 to a total of 20,000 textile and apparel sector workers. Vice President Malawezi chairs an inter-ministerial AGOA task force that coordinates the work of six AGOA subcommittee task forces comprised of government and private sector representatives. One of the plants that open is owned by a European company and plans to employment from 450 to 2000 people when Malawi qualifies for AGOA benefits. The other plant is Taiwanese and plans to start production in April and to employ 3,500 people.

-- Senegal: Reports that a leading Senegalese apparel and textile factory is about to partner with a U.S. textile manufacturer and a Malaysian firm to export to the U.S. with the potential to create 1,000 jobs. There has also been an exploratory mission from Mauritius.

-- Uganda: Estimated new investment in a refurbishing and re-equipping a textile mill of $21 million and employment of 700 Ugandans. Estimated new investment in an apparel factory of $800,000 to $1 million with expected employment of 400 Ugandans.

Opportunities for Louisiana Companies

Americans need to better comprehend the potential of the African markets; I commend you for attending this conference.

How can Louisiana companies benefit from the Africa bill?

That’s a good question and not an easy one to answer. The short answer is that passage of the Africa bill has created new trading opportunities for U.S. companies looking to expand into the global marketplace, and has enriched the investment and trading atmosphere in sub-Saharan Africa.

Already, many Louisiana firms are investing and trading with Africa. New opportunities in the oil and gas industries are available. Trade and investment in equipment and service is one area that quickly comes to mind. Cameroon, Gabon, and Nigeria will be wonderful markets for these types of oil and gas related activities.

The extractive and natural resources industries still dominate in overall foreign direct investment, but manufacturing and services sectors are gaining increased attention. The sectors have attracted the most foreign investment in 1998 in South Africa were energy, oil, mining, quarrying, construction and materials, motor vehicles, and food and beverage industries.

Elsewhere in sub-Saharan Africa petroleum and natural gas exploration, manufacturing, and service industries also attracted foreign investment.

The most attractive industries over the last half of the 1990s were telecommunications, food and beverages, tourism, port development, mining and quarrying--and the equipment and services that go with those sectors--and textile and leather.

Agriculture is another area where Louisiana firms can benefit. All of Louisiana’s top five agricultural exports, including cotton, rice, soybeans, wheat, and cottonseeds could be sent to African destinations. Under NAFTA, tariff preferences for U.S. rice exporters have helped increase the U.S. share of Mexico’s imports from 40% in 1992 to 98% in 1996. The preferences in the Africa trade bill have similar potential.

Many of you know that over the years I have taken a special interest in Nigeria.

Nigeria is one of the top recipients of foreign direct investment. In 1998, Nigeria received over $1 billion in foreign direct investment.

If you consider recent Louisiana trade patterns with Nigeria you see that there is money to be made by you right here and right now.

In 1997, Louisiana exports to Nigeria totaled $139 million, of which $81 million was transportation equipment, $17 million petroleum products, $13 million fabricated metal products, $11 million agriculture products, and $8 million industrial machinery and computer equipment.

Trade with Nigeria through the Port of New Orleans totaled $247 million in 1996, with $40 million of U.S. exports to Nigeria moving though the Port, which $207 million of U.S. imports from Nigeria transited the Port.

While many of you may be thinking that only large companies in "major" cities are in on this game, I am here to tell you that New Orleans figures prominently in this trade. In fact, more than 52,000 jobs in Louisiana are supported by trade.

Support for U.S. Businesses

Clearly exporting pays off. Mutually beneficial trade is good business and an expanding business. Entrepreneurs in the U.S. should take advantage of the trade opportunities presented in Africa and the world. And the U.S. government has resources and agencies to help your company go global.

The African Growth and Opportunity Act included specific provisions to boost OPIC and EXIM’s activities in sub-Saharan Africa. I would like to highlight these provisions.

OPIC is a small, but important government program. This agency has taken a lead in promoting private sector American investment in Africa.

The Africa Growth and Opportunity Act (AGOA) has spurred OPIC programs designed to open new markets in Africa by supporting increased trade and investment throughout the region.

OPIC’s focus in Africa has been on small and medium-sized businesses. It has provided over $1 billion to support projects in 41 countries throughout sub-Saharan Africa, including agribusiness, telecommunications, financial services, manufacturing, mining, energy, privatization schemes, and transportation.

 Under the bill’s provisions:

OPIC has set aside up to $500 million in investment funds for infrastructure projects in sub-Saharan Africa. This fund will help fulfill a major Administration and Congressional priority to promote development and private investment in Sub-Saharan-Africa.

In addition, OPIC has established a new $350 million private investment equity fund for Africa--OPIC’s largest involvement in any one fund yet. This new fund will fulfill several of the goals and objectives of the Africa Growth and Opportunity Act. This new OPIC fund is targeted on the infrastructure needs of Sub-Saharan Africa - as well as on investments that expand opportunities for women and maximize employment opportunities for poor people.

OPIC also currently has three other private managed investment funds supporting investment in Africa: the Africa Growth Fund; the New Africa Opportunity Fund, and the Modern Africa Fund

The new infrastructure fund will help create about 6,800 new jobs for Africans, generate almost $50 million in annual revenues for the countries, improve the basic services to people and businesses and strengthen the economies of the region. It is also expected leverage an additional $425 million in investment in Africa.

The infrastructure fund also benefits America at no cost to the U.S. taxpayer - by spurring investment in a region of economic importance to the United States and generating an estimated $350 million in exports of equipment and management services from this country.

For 27 years OPIC has been the U.S. Government agency providing political risk insurance and financing for projects that help America compete abroad and promote stability and development in strategic countries and economies around the world.

Since 1971, OPIC supported projects have generated $58 billion in U.S. exports and created more than 237,000 American jobs. In addition, unlike most government programs, OPIC operates totally on a fee-based self-sustaining manner, at no cost to the taxpayer. Last year OPIC had a net income of $139 million.

The estimated impact of $500 million in Funds Investment in Africa means

• 1,000 U.S. jobs
• $500 million in U.S. exports over 5 years
• $600 million in an additional investment leveraged by funds investments
• $70 million in annual revenues to African countries
• 9,700 African jobs
• No Cost to the U.S. Taxpayer

And the U.S. Export-Import Bank (EXIM Bank) is also in the game.

For those of you who are unfamiliar with EXIM Bank, it is the U.S. government’s official export credit agency. In 1999, EXIM supported $16.7 billion of U.S. exports worldwide by providing loans, guarantees and insurance to creditworthy buyers in emerging markets. Since its inception, EXIM in 1934, over $400 billion in exports to the developing world were supported, and $100 billion of that occurred in the last seven years.

EXIM’s president James Harmon recently remarked that, "Africa’s time has come." The World Bank is forecasting a 4.2 percent annual growth rate for sub-Saharan Africa over the next twenty years. With the passage of AGOA, we will see significant reductions in government subsidies and barriers to trade and investment across the region. Opportunities for your businesses are abundant.

Last year, EXIM opened short term programs in 16 African countries for public and/or private sector transactions involving U.S. exports of raw materials, spare parts, consumer goods and commodities. They have expanded their foreign currency guarantee program to include the South African rand; making it easier for U.S. exporters to sell their products in southern Africa now that African companies can arrange rand-denominated loans guaranteed by EXIM Bank.

In addition, the bank has established a sub-Saharan Advisory Committee of outside experts--many with extensive business experience in Africa--to provide advice on how to expand EXIM’s presence in Africa.

EXIM’s support for sub-Saharan Africa consists primarily of loans, guarantees, and insurance for U.S. firms. These programs have been supplemented by a $200 million Africa Pilot Program that makes short-term export credits insurance available to 13 countries.

Also, EXIM bank expanded its foreign currently guarantee program to provide guarantees in the South African rand and is now open to consider project finance business in every sub-Saharan country except Sudan. Traditional export financing is available in 32 sub-Saharan countries.

Look at the example of EXIM’s activities in Ghana. Last year, EXIM approved 29 transactions, $145 million in financing, to businesses large and small. In one case, they supported the sale of $1.6 million in refrigerator trucks to enable a family fishing company, owned by three generations of women, to get their catch to the markets inland.

You can take advantage of the many opportunities presented by increased development and trade with Sub-Saharan Africa.

The federal government has a host of agencies prepared to help you connect with projects and joint ventures in Africa. In addition to OPIC and EXIM, you can obtain export assistance from the Small Business Agency (SBA), the Trade and Development Agency (TDA) and U.S. Agency for International Development (USAID); all designed to help you expand your business globally. These agencies offer programs to fund feasibility studies, loan guarantees, market research, information on trade leads, export assistance, technical assistance grants and more.

You can easily gain access to information on all these programs by calling 1-800-USA TRADE and speaking with an Export Specialist or visiting the corresponding website www.ita.doc.gov/tic.

Let’s hope that you can do as well with the information you have acquired during this conference.

There are many places where businesses can go for export assistance. These include the U.S. Trade Information Center; the New Orleans Export Assistance Center of the U.S. and Foreign Commercial Service; the World Trade Center of New Orleans; the African Chamber of Commerce in Louisiana; and the Louisiana International Trade Center.

So, the Africa bill represents the natural evolution of our historical relationship with Africa; a shift from an aid-only approach to one that builds on Africa’s successes.

We started with a simple fact: increased U.S.-Sub-Saharan trade is a mutually beneficial proposition and will facilitate development in Africa. Trade and investment will increase jobs in the United States and opportunities for American companies. In addition, African nations will benefit from expanded access to the U.S. market and increased foreign investment.

INTO AFRICA is where your investment dollars, products, and services should go.

The Trade and Development Act of 2000, which included the African Growth and Opportunity Act, is the first major piece of trade legislation to pass Congress since NAFTA in 1994. I am proud of my role in this effort. BUT we cannot rest on our laurels. That’s why we are now considering expansion of AGOA. In this new legislative effort we will seek to build on the Africa bill in ways that will spur investment and trade in areas where, due to the need for compromise in the political process, we had to accept less than Africa deserves.

We live in a global economy that is increasingly becoming important to our nation’s continued growth and prosperity. Improving our trade and economic ties around the world is key.