    [Senate Hearing 117-161]
    [From the U.S. Government Publishing Office]

                                                           S. Hrg. 117-161

                         U.S. TRADE AND INVESTMENT IN AFRICA

    =======================================================================

                                    HEARING

                                   BEFORE THE

                           SUBCOMMITTEE ON AFRICA AND
                              GLOBAL HEALTH POLICY

                                     OF THE

                         COMMITTEE ON FOREIGN RELATIONS
                              UNITED STATES SENATE

                        ONE HUNDRED SEVENTEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                                 JULY 28, 2021

                                   __________

           Printed for the use of the Committee on Foreign Relations

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

                      Available via http://www.govinfo.gov

                                  __________

                        U.S. GOVERNMENT PUBLISHING OFFICE
    46-867 PDF                 WASHINGTON : 2022

    -----------------------------------------------------------------------------------

                     COMMITTEE ON FOREIGN RELATIONS

                 ROBERT MENENDEZ, New Jersey, Chairman
    BENJAMIN L. CARDIN, Maryland         JAMES E. RISCH, Idaho
    JEANNE SHAHEEN, New Hampshire        MARCO RUBIO, Florida
    CHRISTOPHER A. COONS, Delaware       RON JOHNSON, Wisconsin
    CHRISTOPHER MURPHY, Connecticut      MITT ROMNEY, Utah
    TIM KAINE, Virginia                  ROB PORTMAN, Ohio
    EDWARD J. MARKEY, Massachusetts      RAND PAUL, Kentucky
    JEFF MERKLEY, Oregon                 TODD YOUNG, Indiana
    CORY A. BOOKER, New Jersey           JOHN BARRASSO, Wyoming
    BRIAN SCHATZ, Hawaii                 TED CRUZ, Texas
    CHRIS VAN HOLLEN, Maryland           MIKE ROUNDS, South Dakota
                                         BILL HAGERTY, Tennessee
                     Jessica Lewis, Staff Director
            Christopher M. Socha, Republican Staff Director
                        John Dutton, Chief Clerk

                       SUBCOMMITTEE ON AFRICA AND
                          GLOBAL HEALTH POLICY

                  CHRIS VAN HOLLEN, Maryland, Chairman
    CORY A. BOOKER, New Jersey           MIKE ROUNDS, South Dakota
    TIM KAINE, Virginia                  MARCO RUBIO, Florida
    JEFF MERKLEY, Oregon                 TODD YOUNG, Indiana
    CHRISTOPHER A. COONS, Delaware       JOHN BARRASSO, Wyoming
                                         RAND PAUL, Kentucky

                                 (ii)

                            C  O  N  T  E  N  T  S

                                  ----------
                                                                       Page

    Van Hollen, Hon. Chris, U.S. Senator From Maryland...............     1

    Hagerty, Hon. Bill, U.S. Senator From Tennessee..................     4

    Liser, Florizelle President and CEO, Corporate Council on Africa,
      Washington, DC.................................................     6
        Prepared Statement...........................................     7

    Signe, Dr. Landry, Senior Fellow, Global Economy and Development
      Africa Growth Initiative, The Brookings Institution,
      Washington, DC.................................................    10
        Prepared Statement...........................................    11

    Hruby, Aubrey, Nonresident Senior Fellow, The Africa Center,
      Atlantic Council, Washington, DC...............................    21
        Prepared Statement...........................................    22

                  Additional Material Submitted for the Record

    Report by the Labor Advisory Committee on Trade Negotiations and
      Trade Policy on U.S.-Kenya Trade Agreement.....................    46

    Letter From AFL-CIO Director of Government Affairs Dated July 27,
      2021...........................................................    64

                                     (iii)

                       TRADE AND INVESTMENT IN AFRICA

                                  ----------

                                   WEDNESDAY, JULY 28, 2021

                               U.S. Senate,
                     Subcommittee on Africa and
                                  Global Health Policy,
                                Committee on Foreign Relations,
                                                        Washington, DC.
        The subcommittee met, pursuant to notice, at 2:30 p.m. in
    room SH-216, Hon. Chris Van Hollen, chairman of the
    subcommittee, presiding.
        Present: Senators Van Hollen [presiding], Kaine, Hagerty,
    and Young.

              OPENING STATEMENT OF HON. CHRIS VAN HOLLEN,
                       U.S. SENATOR FROM MARYLAND

        Senator Van Hollen. Welcome, everybody, and good afternoon.
        The Subcommittee on Africa and Global Health Policy will
    come to order.
        I want to begin by welcoming my colleague, Senator Hagerty,
    who is a fellow member of the Senate Foreign Relations
    Committee and ranking member of the Subcommittee on State
    Department and USAID Management, International Operations, and
    Bilateral International Development, for joining us.
        He will be filling in this afternoon for Senator Rounds,
    and I want to thank Senator Rounds and his team for all their
    work as part of this subcommittee.
        I also want to welcome today's witnesses. We have with us
    Florizelle Liser, who is the president and CEO of the Corporate
    Council on Africa, Landry Signe, senior fellow in Global
    Economy and Development Program, and the Africa Growth
    Initiative at the Brookings Institution, and Aubrey Hruby,
    Senior Fellow with the Atlantic Council's Africa Center. I will
    provide a little more on each of their bios shortly.
        Welcome, everybody, to the first hearing of the 117th
    Congress for the Africa and Global Health Policy Subcommittee.
    Today's hearing will focus on U.S. trade and investment in
    Africa, an area that holds real promise for U.S. businesses,
    for our partners on the continent, and the global economy.
        I hope that we can use this hearing as a venue to explore
    practical ways to expand U.S. economic engagement in sub-
    Saharan Africa and work together to identify clear trade and
    investment priorities for Congress to explore.
        Africa represents an ever more promising investment
    frontier, and targeted economic engagement will be key to
    unlocking opportunity, building prosperity, and bolstering
    security both on the continent and here at home.
        Make no mistake, we all recognize there are vast economic
    challenges and other obstacles facing African nations. Those
    challenges begin with low-quality high-cost infrastructure,
    which creates real barriers to economic growth.
        As we have seen in our own country, infrastructure touches
    every part of our lives, from the digital divide, to energy
    costs, to job and business growth to innovation, and we are now
    working to try to reach a bipartisan agreement on modernizing
    our infrastructure here at home.
        The current infrastructure deficit across Africa takes a
    daily toll, ballooning the price of energy, making it harder
    for businesses to move their products, and stunting
    productivity in most sectors.
        We must view these infrastructure and other challenges as
    opportunities to overcome by nurturing some of the budding
    infrastructure, by boosting American business and export
    possibilities, and opportunities to lift communities across the
    continent and unleash economic potential.
        These opportunities are amplified by a fast-growing African
    population. In the next 30 years, the population of the entire
    continent is expected to double and one-quarter of the world
    will live in Africa by the year 2050.
        It is also the youngest continent in the world, with 60
    percent of Africans under the age of 25 years old. This new
    wave of young people provides new opportunities, expanding
    markets, innovation, technology, and growth, not just for
    Africa but around the world.
        This youth growth presents huge potential for the
    continent, and I am pleased that Senator Mike Rounds and I will
    shortly be introducing legislation to codify the Young African
    Leaders Initiative, the YALI program, legislation that
    Congresswoman Bass has introduced in the House side, and I want
    to thank Senator Rounds for his leadership on that.
        African nations are already taking steps to seize the
    growing economic potential through the new African Continental
    Free Trade Area, a multi-phased endeavor to grow trade between
    African nations.
        The first phase of the project launched in January of this
    year, and over the next few years this initiative will link 55
    African member nations and become the largest free trade area
    in the world since the establishment of the WTO.
        The World Bank estimates that the successful implementation
    of this free trade area would increase Africa's exports by $560
    billion and add $76 billion to the income of the rest of the
    world.
        As you can see, the potential is enormous and part of our
    goal on this subcommittee is to help American businesses large,
    medium, and small become familiar with the economic landscape
    across the African continent and emphasize the potential
    rewards of engagement.
        The good news is we already have many tools to help us meet
    the mission of building public and private partnerships between
    the United States and Africa. The duty-free tariff program
    AGOA, shorthand for the African Growth and Opportunity Act, has
    long been a magnet for trade between the United States and
    African countries.
        U.S. imports under AGOA a total of $4.1 billion in 2020,
    and 39 countries and counting are currently eligible AGOA
    states. Over the years, USAID has established a series of trade
    and investment hubs throughout the continent to boost AGOA use,
    among other key priorities.
        It should be our shared goal to make full use of this vital
    program and do more to strengthen AGOA as we push ahead.
        We also have some newer tools at our disposal, including
    Power Africa, an initiative dedicated to expanding energy
    infrastructure through public-private partnerships with a focus
    on clean energy, and Power Africa has provided more than 100
    million people with access to power since 2013.
        More recently, the United States Government formed two
    programs that will help build out economic engagement in
    Africa. The first is the U.S. International Development Finance
    Corporation, or DFC, which Congress created in 2018 and which
    focuses 27 percent of its total portfolio on Africa.
        I was pleased to see that just last month, the DFC joined
    forces with the development finance institutions from the G-7
    nations in committing to invest $80 billion in the private
    sector in Africa over the next 5 years to support sustainable
    economic growth on the continent.
        The second initiative is Prosper Africa, which is designed
    to weave together the efforts of 17 U.S. agencies and
    departments involved in trade, investment, and development,
    including USAID, DFC, the Ex-Im Bank, and the U.S. Trade and
    Development Agency, among others.
        I look forward to discussing how Prosper Africa can most
    effectively achieve its mission with all of our witnesses
    today.
        As we work to make full use of these resources, we will, in
    turn, strengthen our ability to do effective business in the
    region, and when the United States does effective business we
    not only enhance our bilateral relationships, we also set an
    example for the world.
        Our economic partnerships can and must be focused on mutual
    gain and shared success. While a number of our adversaries,
    especially China, attempt to use their economic leverage and
    engagement as a weapon for taking advantage of other countries
    including through debt trap diplomacy, we must remain dedicated
    to promoting prosperity for all here at home and on the African
    continent.
        That proposition must be our guide as we work together to
    deepen bilateral trade and investment relationships throughout
    Africa, and I look forward to hearing the perspective of our
    committee members and our witnesses as the best way to move
    forward.
        It is in that spirit that I would like to end where I
    began, thanking all of our witnesses for being here to share
    their thoughts, and before I turn it over to our witnesses, I,
    again, want to thank Senator Hagerty for joining us and turn it
    over to him for his opening statement.
        Senator.

                    STATEMENT OF HON. BILL HAGERTY,
                      U.S. SENATOR FROM TENNESSEE

        Senator Hagerty. Thank you, Chairman Van Hollen.
        I appreciate very much your convening this hearing today
    and I also appreciate all of our witnesses for being here to
    discuss the important topic of the United States trade with
    Africa and the potential that it presents to all of us.
        I am a lifelong businessman and I also served as head of
    economic development in my home state, and I have an acute
    appreciation for the value and the importance of capital
    investment and what it can mean to growth and prosperity.
        Africa possesses significant economic potential and offers
    tremendous opportunities for the United States, particularly as
    American businesses search for new markets and for new
    investment opportunities.
        In the next decade, Africa's importance to the world market
    will only grow, most notably in sectors that drive American
    prosperity and innovation including energy, resources, finance,
    infrastructure, and telecommunications, to name a few.
        Furthermore, as Africa's population continues to increase,
    expected to be 26 percent of the world's population by 2050,
    the failure to successfully integrate Africa into the global
    economy could pose major threats to global prosperity and
    stability. We all know that a strong economic foundation
    underpins broader political and social stability.
        Increased U.S.-African cooperation also serves the
    strategic interest of the United States. It is not a
    coincidence that there is increasing demand from Africa for
    greater economic cooperation with our great nation.
        Leaders in government and business understand the need for
    robust market-based economic growth, a model that the United
    States continues to espouse in developing countries.
        In contrast, the Chinese Communist Party continues to
    aggressively pursue predatory economic projects in Africa.
    According to a recent report, China is now the single largest
    financier of infrastructure in Africa, funding one in five
    projects and constructing every third.
        Make no mistake, China will leverage their economic
    advantage to press their geopolitical ambitions. This neo-
    colonial approach to trade breeds corruption and dependency.
        China has no interest in hiring local people. China has no
    interest in training the local people. China has no interest in
    leading them. Indeed, China's self-serving approach will not
    establish the foundation for long-term economic success in
    Africa.
        The onus is on the United States, working with our allies
    and partners, as well as various multinational institutions to
    demonstrate that there is another path to prosperity.
        The United States stands for local jobs, honest business
    practices, high-quality projects, environmental responsibility,
    and mutual prosperity. For instance, the Prosper Africa
    initiative that Chairman Van Hollen just mentioned, seeks to
    foster us investment.
        It expands Africa's middle class and it improves business
    climates across the region. We need more programs like this.
    Congress should also do its part to ensure that such
    initiatives have the appropriate oversight and the resources
    necessary to advance their objectives.
        I hope that the hearing today will spur greater debate
    about ways to improve U.S. trade and investment in Africa.
        Thank you, Mr. Chairman.
        Senator Van Hollen. Thank you, Senator.
        Now I would like to introduce our witnesses more fully
    before we turn it over to them.
        We are joined by Ms. Liser, who is the third president and
    CEO of the Corporate Council on Africa, and before taking this
    role, Ms. Liser served as Assistant U.S. Trade Representative
    for Africa where she led trade and investment toward 49 sub-
    Saharan African nations and oversaw the implementation of the
    African Growth and Opportunity Act.
        In addition to her role on the Corporate Council on Africa,
    Ms. Liser also sits as co-chair of the Advisory Council for the
    Millennium Challenge Corporation and is a member of the Sub-
    Saharan Africa Advisory Committee for the Ex-Im Bank.
        Ms. Liser received her B.A. in international relations from
    Dickinson College, and I am proud that she earned her M.A. in
    international relations from Johns Hopkins University in the
    state of Maryland.
        Welcome to you.
        Dr. Signe is a senior fellow in the Global Economy and
    Development program at the Africa Growth Initiative at the
    Brookings Institution.
        In addition to his role at Brookings, he is also a full
    professor and founding co-director of the Globalization 4.0 and
    Fourth Industrial Revolution Initiative at the Thunderbird
    School of Global Management, a distinguished fellow at Stanford
    University Center for African Studies, and chairman of the
    Global Network for Africa's Prosperity, as well as a senior
    advisor to top leaders in business and politics from around the
    world.
        Dr. Signe is the author of numerous scholarly publications
    and has taught at Oxford, Stanford, Georgetown, and many other
    institutions of higher education. Dr. Signe was educated in
    Cameroon, France, and Canada, received his Ph.D. from the
    University of Montreal and completed his post-doctoral studies
    at Stanford University on a Banting Fellowship. Welcome, Dr.
    Signe.
        Ms. Hruby is a nonresident senior fellow with the Africa
    Center at the Atlantic Council. Over the course of her career,
    she has consulted extensively in over 25 African markets and
    regularly advises senior policymakers and private sector
    leaders on doing business in Africa.
        Ms. Hruby also teaches at Georgetown University and is the
    co-author of ``The Next Africa: An Emerging Continent Becomes a
    Global Powerhouse.''
        Previously, she worked as managing director of the Whitaker
    Group, an Africa-focused advisory firm that has helped
    facilitate over $2 billion in capital flows to the continent,
    and served as an international trade specialist at the Barnett
    Group, where she specialized in Middle East and Africa trade.
        She studied economics, political science, and international
    relations at the University of Colorado, received a Master's
    degree from the School of Foreign Service at Georgetown, and
    received an executive MBA from the Wharton School at the
    University of Pennsylvania.
        Welcome, Ms. Hruby.
        I think we can see from the vast experience and expertise
    on this panel that we have a terrific group of people. So why
    do not we begin now in the order in which I introduced all of
    you with, Ms. Liser.

      STATEMENT OF FLORIZELLE LISER, PRESIDENT AND CEO, CORPORATE
                   COUNCIL ON AFRICA, WASHINGTON, DC

        Ms. Liser. I would like to thank Senator Van Hollen, the
    Subcommittee on Africa and Global Health Policy, Senator
    Hagerty, and others on the committee for the invitation to
    speak today at this important hearing.
        I am Florie Liser, president and CEO of the Corporate
    Council on Africa, which is the only U.S. trade association
    solely focused on expanding trade and investment between the
    United States and Africa.
        This hearing is perfectly timed. Today, CCA concluded the
    second of 3 days of this year's U.S.-Africa Business Summit.
    Although we are holding it virtually this year, the summit
    annually gathers U.S. and African leaders from government and
    business to discuss the most important opportunities and
    issues.
        The theme of this year's summit is ``New Pathways to a
    Stronger U.S.-Africa Economic Partnership,'' and sessions at
    the summit have just covered a number of important themes you
    target in this hearing, including a session we had just this
    morning where we hosted Representative Karen Bass and
    Representative Chris Smith, who met with a number of key
    companies who are investing in Africa to hear more from them
    about just how we can expand our trade and investment
    relationship with the nations of Africa.
        This is the right time to reassess our economic
    relationship with the continent, and the short version of my
    conclusions about how we do this is that the United States and
    companies are not taking advantage of the opportunities we
    could in terms of what Africa offers, while our competitors are
    doing a much better job.
        In the next 10 to 20 years, Africa's importance to world
    markets will grow significantly in many of the sectors that
    drive American prosperity, including ICT, energy, finance,
    infrastructure, and health.
        The COVID pandemic has accelerated existing African efforts
    to change the continent's narrative. As they look to build back
    better, African countries are doubling down on integrating
    their economies, accelerating digitalization efforts, better
    linking up with shifting global supply chains, and improving
    their health security as well as their overall economic
    prosperity by increasing manufacturing of health as well as
    many other products on the continent, and they are looking to
    the private sector to lead the way in each of these cases and
    sectors.
        In sum, African governments and companies have made it
    crystal clear that they intend to build a better Africa that is
    much more competitive and better integrated into global supply
    chains. They have also made it clear that the United States and
    American companies are very welcome, often preferred partners.
        So how should we respond? The U.S. Government and Congress
    can help by providing some public guidance on what kind of
    long-term relationship we have in mind. Since its enactment in
    2000, AGOA has been the cornerstone of U.S. economic policy
    towards Africa. It is now set to expire in 2025.
        Africa has become much more sophisticated and better
    integrated globally since 2000. Africa is now in the process of
    completing the first phase of creating the world's largest
    unified market through the African Continental Free Trade
    Agreement.
        The United States would best serve its own interests by
    recognizing the progress Africa has made and putting in place
    policies that will allow our companies to mutually grow the
    U.S. and African economies along the lines above.
        We should adopt a more nuanced policy and multifaceted
    approach that recognizes that there is no one-size-fits-all
    approach to Africa that accepts that unilateral preferences for
    certain African nations should continue under AGOA while we go
    beyond AGOA in developing mutually beneficial reciprocal
    agreements, FTAs, and support the AfCFTA's implementation and
    ensure its success.
        The Biden administration has helpfully reiterated U.S.
    support for AfCFTA and we should definitely continue that. On
    AGOA, the goal should be to help the countries which have yet
    to benefit from this important duty-free access to U.S. market,
    and there is no conflict in doing these while at the same time
    continuing the U.S.-Kenya FTA discussions and establishing a
    template or model for trade agreements with Africa that go
    beyond Africa, go beyond AGOA, and mutually benefit our
    companies and workers.
        We should also keep in mind that these discussions are
    taking place against the backdrop of Africa's pressing fight to
    combat the COVID pandemic. African officials never again want
    to be at the end of supply chains that can fail, leaving their
    populations vulnerable.
        One of the aspects of the U.S. response to COVID that
    African leaders have singled out approvingly is the provision
    of the advanced market purchase for vaccines. The G-20 is
    already looking at whether some version of this can be applied
    to set up funding to minimize the impact of future pandemics.
        In conclusion, CCA looks forward to the opportunity to work
    with members here today and many others, both Senate and House
    and on both sides of the aisle, to develop the kind of
    multifaceted approach that will grow and enhance the U.S.-
    Africa economic relationship.
        Thanks for the opportunity to speak to you today at this
    hearing, and I look forward to answering any questions.
        [Prepared statement of Ms. Liser follows:]

                   Prepared Statement of Ms. Florizelle Liser

        I would like to thank the Subcommittee on Africa and Global Health
    Policy for the invitation to speak today at this important hearing. I
    am Florie Liser, the President and CEO of the Corporate Council on
    Africa, which is the only U.S. trade association solely focused on
    expanding trade and investment between the United States and Africa.
        This hearing is perfectly timed. Today, CCA concluded the second of
    3 days of this year's U.S.-Africa Business Summit. Although we are
    holding it virtually this year, the Summit annually gathers U.S. and
    African leaders from government and business to discuss the most
    important opportunities and issues. The theme of this year's Summit is
    ``New Pathways to a Stronger U.S.-Africa Economic Partnership,'' and
    sessions at the Summit have just covered a number of important themes
    you target in this hearing.
        This is the right time to reassess our economic relationship with
    Africa. The short version of my conclusion is that:

       The United States and American companies are not taking
            advantage of all of the opportunities we could be in terms of
            what Africa offers, while our competitors are doing a much
            better job.

       In the next 10 to 20 years, Africa's importance to world
            markets will grow significantly in many of the sectors that
            drive American prosperity, including ICT, energy, finance,
            infrastructure and health.

       The COVID pandemic has accelerated existing African efforts
            to change the continent's narrative. As they look to build back
            better, African countries are doubling down on integrating
            their economies, accelerating digitalization efforts, better
            linking up with shifting global supply chains and improving
            their health security as well as their overall economic
            prosperity by increasing manufacturing of health as well as
            many other products on the continent. And they are looking to
            the private sector to lead the way in each of these cases.

        In sum, African governments and companies have made it crystal
    clear that they intend to build a better Africa that is much more
    competitive, and better integrated into global supply chains. They have
    also made it clear that the United States and American companies are
    very welcome--often preferred--partners. How should we respond?
        The U.S. Government and Congress can help by providing some public
    guidance on what kind of long-term relationship we have in mind. Since
    its enactment in 2000, AGOA has been the cornerstone of U.S. economic
    policy towards Africa; it is now set to expire in 2025. Africa has
    become much more sophisticated, and better integrated globally since
    2000. Africa is now in the process of completing the first phase of
    creating the world's biggest unified market through the African
    Continental Free Trade Agreement, or AfCFTA. Far beyond just lowering
    tariffs, it has set up an innovative mechanism to resolve trade
    disputes and resolve non-tariff barriers to trade, as well as establish
    a payments network and adopt common standards and regulations.
        The United States would best serve its own interests by recognizing
    the progress Africa has made and putting in place policies that will
    allow our companies to mutually grow the U.S. and African economies
    along the lines outlined above. We should adopt a much more nuanced
    policy and multi-faceted approach that recognizes that there is no `one
    size fits all' approach to Africa--that accepts that unilateral
    preferences for certain African nations should continue under AGOA
    while we go beyond AGOA in developing mutually beneficial, reciprocal
    agreements (FTAs), and support the AfCFTA's implementation and ensure
    its success.
        The Biden administration has helpfully reiterated U.S. support for
    AfCFTA. This should be a critical component for U.S. economic
    engagement with Africa, and nothing we do should undermine this
    important African process. Indeed, to the extent that we can support
    African governments creating the kinds of trade and investment
    provisions under AfCFTA that will allow U.S. companies to thrive, it is
    in our interest to support Phase II negotiations on chapters like
    digital services and standards. The U.S. Government should make more
    experts from the technical U.S. agencies available immediately to
    consult and offer lessons learned from our experience. Greater
    engagement with select U.S. regulatory agencies will also pay huge
    dividends as African governments grapple with how to handle technical,
    but crucial issues, particularly in the digital space.
        On AGOA, the goal should be to help the countries which have yet to
    benefit from this important duty-free access to the U.S. market.
        And there is no conflict in doing these while at the same time
    continuing the U.S.-Kenya FTA discussions, and establishing a template
    or model for trade agreements with Africa that go beyond AGOA and
    mutually benefit our companies and workers The USG has the opportunity
    to negotiate a trade agreement that doesn't merely adopt the U.S.
    ``gold standard'' FTA provisions, but is open to an FTA model that
    makes sense for the U.S. and its African partners. . Such a model would
    cover more than just goods trade to include services, digital trade,
    and other areas that are critical to 21st century trade, and would
    highlight what kind of transition periods that may be necessary, and
    will help both sides think through how to integrate bilateral trade and
    investment provisions with existing African Regional Economic
    Communities and the AfCFTA. For other African countries, our best
    approach may well be to consider extending AGOA provisions broadly or
    for specific sectors, like textiles and apparel, although we should do
    so in a way that reinforces regional economic integration and value
    chains, while also not eroding African competitive access to the U.S.
    market.
        There is an urgency about this, as several of our competitors are
    ahead of us in terms of developing their potential for two-way trade
    and investment with Africa. Europe, in particular, has concluded
    Economic Partnership Agreements with most of the continent, including
    Regional Economic Communities. Kenya has very recently concluded a
    trade agreement with the UK and other Africans are in the process of
    doing the same. And the advanced of African countries (like Mauritius)
    have concluded reciprocal trade agreements with a range of countries
    including China, the European Union, EFTA, and Mercosur countries. The
    faster we can raise our profile and increase our engagement, the
    better.
        We also need to get more allies involved. Specifically, the U.S.
    Government could best amplify its efforts by engaging more trade
    associations and private sector groups, both to make them aware of the
    opportunities, and to engage them in trade negotiations and discussions
    with our African partners. Prosper Africa is an admirable initiative to
    raise the USG profile and to more effectively support U.S. companies
    who are competing against companies from all around the world (not just
    China) who have the full support of their governments in helping them
    be competitive in Africa's growing markets. Beyond Prosper Africa and
    the President's Advisory Committee on Africa (PAC-DBIA), the U.S.
    Government can do more to level the playing field and support more
    U.S.-Africa commercial deals.
        We should also keep in mind that these discussions are taking place
    against the backdrop of Africa's pressing fight to combat the COVID
    pandemic. African officials never again want to be at the end of supply
    chains that can fail, leaving their populations vulnerable. They are
    determined to partner with private sector firms to increase investments
    in vaccines, their various inputs and PPE. Their preferred partners
    would be American, but they are intent on moving quickly with whichever
    companies will respond. DFC has announced some very helpful investments
    and grants. CCA is pleased to share that we have established our U.S.-
    Africa Health Security Resilience Initiative, which was specifically
    designed to help identify gaps and areas where the private sector can
    help deliver better health outcomes while saving limited resources, and
    building a much bigger market. This is the kind of proactive initiative
    that can help raise the U.S. profile in health and beyond.
        One of the aspects of the U.S. response to COVID that African
    leaders have singled out approvingly is the provision of the Advanced
    Market Purchase for vaccines. The G20 is already looking at whether
    some version of this can be applied to setting up a fund to minimize
    the impact of future pandemics and/or support current commercial
    investments to bolster the base line of health systems. Congress might
    usefully consider whether that kind of mechanism could be applied in
    other priority areas, including energy, infrastructure, and
    agriculture. This could be combined with the very important efforts of
    creating mechanisms to reallocate the $650 billion in additional IMF
    Special Drawing Rights that have been critical to address the economic
    impact of COVID beyond health.
        CCA looks forward to the opportunity to work with the Members here
    today and many others--both Senate and House and on both sides of the
    aisle--to develop the kind of multi-faceted approach that will grow and
    enhance the U.S.-Africa economic relationship.
        Thanks for the opportunity to speak to you today at this hearing
    and I look forward to answering any questions.

        Senator Van Hollen. Well, thank you for your testimony, Ms.
    Liser.
        I want to explain that we have a vote on, so it is nothing
    that you said as to why Senator Hagerty left. He is going to go
    vote and come back, and then we will do a relay so that we can
    continue with the hearing without interruption. So thank you.
        Dr. Signe.

     STATEMENT OF DR. LANDRY SIGNE, SENIOR FELLOW, GLOBAL ECONOMY
        AND DEVELOPMENT AFRICA GROWTH INITIATIVE, THE BROOKINGS
                      INSTITUTION, WASHINGTON, DC

        Dr. Signe. Thank you very much, Chairman Van Hollen,
    Ranking Member Rounds, and distinguished members of the
    subcommittee for your extraordinary leadership on U.S. trade
    and investment with Africa.
        I am incredibly honored and grateful for the opportunity
    offered to me by the members of the subcommittee to testify on
    U.S. trade and investment in Africa.
        I am Landry Signe, executive director and professor at the
    Thunderbird School of Global Management, senior fellow at the
    Brookings Institution, Global Economy and Development, and
    Africa Growth Initiative. I am the author of ``Unlocking
    Africa's Business Potential.''
        It is time for the U.S. to reverse the trend on the ground
    in Africa, the ground lost in Africa, as many traditional and
    emerging powers are racing to capture Africa's tremendous
    economic potential.
        By 2050, Africa's combined consumer and business spending
    will exceed USD $16 trillion and the combined GDP may also
    exceed USD $29 trillion.
        So by the end of the century, Africa will contain up to 40
    percent of the world population. The United States has a
    sustained competitive advantage to partner with Africa, advance
    U.S. trade and investment with Africa while meeting Africa's
    priorities for mutual prosperity.
        This could be best realized through a long-term
    comprehensive Africa strategy building on value-based foreign
    policy and a market-based model of development, technology,
    commerce, education, accountability, amongst others.
        My recommendations for effective U.S. trade and investment
    in Africa are as follows.
        Focus policy action on impact and on the effective
    implementation and delivery of initiatives beyond big policy
    announcements.
        Make Prosper Africa more agile in its ability to manage
    complexity and competition, and appoint a dedicated full time
    chief executive officer to assist the current leadership team.
        Redefine the base for new engagement with Africa by
    appointing a U.S. Special Presidential Envoy for Africa to
    represent the U.S. at high-level meetings and increase
    presidential and high-level visits in Africa.
        Promote commercial diplomacy through an economic strategy
    that goes beyond the traditional vision of trade and
    investment, and domestically increase efforts to document and
    disseminate Africa's tremendous potential to U.S. SMEs.
        Capitalize on the AfCFTA that provides the opportunity for
    the U.S. and the world to address the global macroeconomic
    imbalances largely due to excessive concentration of supply
    chains.
        For the AfCFTA of the post-2025 AGOA to be successful, the
    U.S. should really be involved in regular high-level
    consultations between the United States Trade Representative,
    the AfCFTA, and the African Union, creating a working group
    which will define the critical steps forward.
        Capitalize also on the diaspora, which is heavily
    represented in the U.S., by specifically adopting a diaspora
    commercial diplomacy.
        Accelerate the COVID-19 vaccine strategy and partnerships,
    and invest in the vaccine-manufacturing industry and healthcare
    in Africa.
        Contribute to closing the gap in the physical and digital
    infrastructure by leveraging existing program through
    initiatives and agencies, but also by supporting African
    strategic digital transformations.
        The U.S. can, finally, build on higher education to provide
    technical training and reskilling programs through initiatives
    and agencies to close the digital skill gap and improve human
    capital, especially the youth and women. You spoke about YALI,
    which is an illustration of such an initiative.
        In closing, by acting promptly and forging transformative
    leadership aligned with African values, the U.S. has the
    opportunity not only to advance its own interests but to
    contribute to the transformation of Africa.
        Thank you very much for your attention. I am looking
    forward to your questions.
        [Prepared statement of Dr. Landry Signe follows:]

                     Prepared Statement of Dr. Landry Signe

        Thank you very much, Chairman Van Hollen, Ranking Member Rounds,
    and distinguished members of the Subcommittee, for your extraordinary
    leadership on U.S. Trade and Investment with Africa. Your exemplary
    bipartisan work on Africa inspires many in the U.S. and abroad on how
    politics can be used to serve the greater good. I am incredibly
    honored, and grateful, for the opportunity offered to me by the members
    of the Senate Foreign Relations Committee's (SFRC) Subcommittee on
    Africa and Global Health Policy to testify on U.S. Trade and Investment
    in Africa.
        I am Landry Signe, Executive Director and Professor at the
    Thunderbird School of Global Management, Senior Fellow at the Brookings
    Institution's Africa Growth Initiative in the Global Economy and
    Development Program, and a member of the World Economic Forum's
    Regional Action Group on Africa, and the World Economic Forum's Global
    Future Council on Agile Governance.
        Advancing trade, investment, and technology in Africa offers
    enormous economic growth and increased prosperity for both regions and
    is best realized through value-based foreign policy and a market-based
    model of development, education, and accountability. There is no better
    time to accelerate U.S. trade and investment in Africa than now.
    Despite Africa's tremendous economic potential, the U.S. has lost
    substantial ground to traditional and emerging partners, especially
    China. Indeed, while recent trends indicate that the U.S. engagement
    with the region has fallen, it has not and should not cede its
    relationship with the region to other powers.
        Importantly, the U.S. can build on new regional momentum to revive
    and strengthen its partnership with Africa for mutual prosperity,
    including building on the recent launch of the African Continental Free
    Trade Area (AfCFTA), and given the promise of the initiatives of the
    DFC, Prosper Africa, and the post-AGOA 2025 options. To do so means a
    shift in emphasis in the relationship to one more focused on value-
    based foreign policy (https://foreignpolicy.com/2021/01/15/united-
    states-africa-biden-administration-relations-china/),\1\ and also
    building upon the areas of strength and convergence with African
    citizens' preferences (https://www.brookings.edu/blog/africa-in-focus/
    2020/10/23/us-foreign-policy-toward-africa-an-african-citizen-
    perspective/); \2\ such as trade, investment, technology, education,
    accountability, and a market-based model of development.
      why should the u.s. care? africa's tremendous trade and investment
          potential, and expanding continental integration and global
                 partnerships (strategic geopolitical partner)
        ``Borders frequented by trade seldom need soldiers.''

            -William Schurz, second President of the American Institute for
            Foreign Trade (now the Thunderbird School of Global Management)

        Trade and investment are not just about money and prosperity. They
    also bring and support peace, stability, and security. In my book
    Unlocking Africa's Business Potential (https://www.brookings.edu/book/
    unlocking-africas-business-potential/),\3\ I explore key trade and
    investment trends, opportunities, challenges and strategies, that
    illustrate the tremendous potential of Africa, and explain the complex
    competition between emerging and established powers on the continent.
    The following key trends are critical for policymaking given their
    implications for trade investment, economic transformation, inclusive
    prosperity, geopolitical dynamics, and mutual U.S.-Africa interests.
    Africa's economic transformation and business potential are more
            substantial than most people think: the world's next growth
            market
        Considered a hopeless continent in 2000 by The Economist (https://
    www.economist.com/weeklyedition/2000-05-13), Africa has seen the two
    best cumulative successive decades of its existence in the 21st
    century. Trade in and with Africa has grown 300 percent in the last
    decade, outperforming global averages (196 percent).\4\ It has become
    home to many of the world's fastest-growing economies, offering unique
    opportunities for U.S. trade and investment. Moreover, Africa has
    tremendous economic potential and offers rewarding opportunities for
    local and global partners looking for new markets and long-term
    investments with some of the highest returns, but also the potential to
    foster economic growth, diversification, job creation, including for
    women and youth, and improved general welfare.
    The fast population growth on the continent could be turned into
            demographic dividends, or threats to global prosperity and
            stability
        Africa was home to 17 percent of the world population in 2020, and
    is expected to have 26 percent of the global population in 2050 (2.53
    billion people).\5\ If Africa is not successfully integrated into the
    global economy, there could be a major threat to global prosperity and
    stability. Citizens could be further subject to extreme poverty,
    fragility, violent extremism, illegal immigration, health challenges,
    among others--challenges that many already face on the continent. If
    our goal is a prosperous and safe world, Africa must not be left
    behind.
    The growth of household consumption and business spending: a unique
            opportunity for U.S. trade and investment
        By 2050, Africa will be home to an estimated USD $16.12 trillion of
    combined consumer and business spending.\6\ \7\ And Africa's prosperity
    can be good for the U.S.: Such growth will offer tremendous
    opportunities for U.S. businesses in household consumption (USD $8
    trillion) in areas such as food and beverages, housing, hospitality and
    recreation, health care, financial services, education and transport,
    and consumer goods, but also business to business spending
    (construction, utility, and transportation, agriculture and agri-
    processing, wholesale and retail, etc.).
    The rise of global partnerships and the competition between traditional
            and new players: an opportunity for the U.S. to build on its
            sustainable competitive advantage
        China (https://foreignpolicy.com/2021/01/15/united-states-africa-
    biden-administration-relations-china/) became the region's prime
    trading partner. In fact, between 2006 and 2016, China's trade with
    Africa surged, with imports increasing by 233 percent and exports
    increasing 53 percent, as they did for several other global players as
    well.\8\ During the same period, the U.S. lost ground in exports to
    Africa (^66 percent).\9\
        China's influence goes beyond the trade relationship: It is also
    the top investor in infrastructure, and now is the first destination of
    English-speaking African students, outperforming the U.S. and the
    U.K.\10\

        But the U.S. remains a critical player on the continent, as I
    mentioned in a recent article (https://foreignpolicy.com/2021/01/15/
    united-states-africa-biden-administration-relations-china/):
    ``Successes in the past decades--initiatives such as the African Growth
    and Opportunity Act (AGOA), the President's Malaria Initiative, the
    President's Emergency Plan for AIDS Relief, the Millennium Challenge
    Corporation, and U.S. trade and investment hubs--have generated
    tremendous opportunities for millions of Africans and Americans. But
    the current era--and competition from other global powers--will require
    new ideas and a new approach to several key issues.'' \12\ In fact,
    African countries would often prefer to work with the U.S. given local
    content regulation rules, more investment in on-the-ground resources,
    and standards about hiring/training locals. In other words, it's less
    extractive and more transparent than numerous other partners.
    Fast urbanization but also fast rural population growth
        By 2030 (https://www.brookings.edu/research/spotlighting-
    opportunities-for-business-in-africa-and-strategies-to-succeed-in-the-
    worlds-next-big-growth-market/), Africa will be home to 5 cities of
    more than 10 million inhabitants and 12 other cities of more than 5
    million inhabitants.\13\ Cities in Africa are becoming powerful
    economic centers, and a city-based approach to foreign policy, but also
    trade and investment, will be critical to outperform competitors and
    build mutual prosperity. Contributing to the prosperity of African
    cities will also make a difference in addressing security challenges.
    Africa has made tremendous progress in mobilizing resources for
            infrastructure development, working hard to bridge gaps in ICT,
            energy, water and sanitation, and transportation
        Despite the remaining deficits, the Infrastructure Consortium for
    Africa (ICA) (https://www.mckinsey.com/business-functions/operations/
    our-insights/solving-africas-infrastructure-paradox) reported that
    between 2013 and 2017 the annual funding for infrastructure development
    in the region was USD $77 billion, about twice as much as the annual
    funding average of the first 6 years of the two-thousands.\14\ However,
    many of these gaps persist. In 2018 the African Development Bank (AfDB)
    found that Africa's infrastructure requirements range between USD $130
    and $170 billion (https://www.afdb.org/en/documents/document/african-
    economic-outlook-aoe-2018-99877) a year, leaving a financing gap of USD
    $68 to $108 billion.\15\ China has played a key role in financing, and
    has become the largest bilateral infrastructure financier in Africa
    (Chinese FDI grew 40 percent annually (https://www.forbes.com/sites/
    miriamtuerk/2020/06/09/africa-is-the-next-frontier-for-the-internet/
    ?sh=4f4d1f774900) over the last decade).\16\ However, the U.S. has the
    chance to make a monumental difference when it comes to investing in
    infrastructure development in Africa.
        In fact, Africa has one of the fastest-growing (https://
    www.afdb.org/en/knowledge/publications/tracking-africa's-progress-in-
    figures/infrastructure-development), and is the second-largest, mobile
    phone market in the world.\17\ \18\ In sub-Saharan Africa alone, there
    were 477 million mobile subscribers in 2019; by 2025, the region will
    host 614 million cell phone subscribers, and 475 million mobile
    internet users.\19\ The internet is also expected to contribute to at
    least 5 to 6 percent (https://www.afdb.org/en/knowledge/publications/
    tracking-africa's-progress-in-figures/infrastructure-development) of
    Africa's total GDP by 2025.\20\ While the Information and Communication
    Technology sector is making incredible advancements, water and
    sanitation, transportation, and energy infrastructure development still
    needs significant investment. However, this is indicative of positive
    and extensive investment opportunities that can be undertaken on the
    African continent.
    Fast digitalization, increased technological innovation, and an
            accelerated Fourth Industrial Revolution (4IR)
        The Fourth Industrial Revolution is characterized by the fusion of
    the digital, biological, and technological world, and technologies such
    as artificial intelligence, big data, 5G, drones and automated
    vehicles, and cloud computing.\21\ As a world leader in technological
    innovation, digital transformation, and the Fourth Industrial
    Revolution, the United States is well-positioned to play a leading role
    in the African digital space and contribute to Africa's pursuit of now-
    vital technologies.
        Indeed, advanced technology can have beneficial spillover effects:
    For example, in health, countries such as Rwanda and Ghana are using an
    American drone company (https://www.businessinsider.com/zipline-drone-
    coronavirus-supplies-africa-rwanda-ghana-2020-5), Zipline, to deliver
    in record time, medication, blood, and medical supplies to remote rural
    areas with limited road accessibility.\22\ In agriculture, African
    farmers now have access to affordable precision farming tools (https://
    hbr.org/2017/05/how-digital-technology-is-changing-farming-in-africa)
    that use sensors, satellites, smart devices, and big data technologies
    to inform every decisions. The lending, insurance, and e-commerce
    opportunities provided by the fintech industry are transforming the
    lives of all Africans, and not just those in urban centers. These
    advancements are just the beginning too, as African entrepreneurs are
    increasingly seeking partners to bring transformative businesses to
    life. African tech startup funding increased over 40 percent in 2020 to
    over USD $700 million, a fraction of tech startup funding outside of
    Africa. Despite such progress, the digital divide remains important and
    must be bridged to allow inclusive development. During the pandemic for
    example, access to school and business on the continent was more
    complex given the level of internet connectivity, among others.
    Bridging the digital divide represent an opportunity to both advance
    U.S. trade and investment in Africa while addressing some of Africa's
    key priorities.
    Fast regional integration and the African Continental Free Trade Areas:
            opportunities for a continental engagement
        With the signing of the African Continental Free Trade Area
    (AfCFTA) in 2018, ratification in 2019, and an official launch in
    January 2021, African growth prospects and business opportunities have
    been magnified. The continent is giving the world just one more reason
    to invest in it with the creation of the largest new free-trade zone
    per number of countries in world, since the creation of the WTO. The
    AfCFTA will accelerate Africa's industrialization as well as incomes,
    which will lead to the increase of both household consumption and
    business spending, generating unique opportunities for U.S. trade and
    investment. Per a World Bank study (https://www.worldbank.org/en/topic/
    trade/publication/the-african-continental-free-trade-area), the AfCFTA
    has the potential to lift 30 million people out of extreme poverty,
    increase the income of 68 million Africans, increase Africa's exports
    by USD $560 billion, and generate USD $450 billion of potential gains
    for African economies by 2035.\23\
    The sustained demand for accountability, democracy, and stability of
            African citizens, and policy priorities aligned with U.S. core
            values
        Per Afrobarometer surveys (https://www.brookings.edu/blog/africa-
    in-focus/2020/10/23/us-foreign-policy-toward-africa-an-african-citizen-
    perspective/), 7 out of 10 Africans support democracy and accountable
    governance, and approximately two-thirds are opposed to a single party
    or military government.\24\ Importantly, areas in which the U.S. has a
    sustained competitive advantage, given its global leadership in
    democracy and human rights, and its support for such issues as health
    and education, are priorities for Africans too.\25\ Given China's
    leadership in infrastructure, the U.S. could grow its footprint in this
    area but by partnering with other players such as the G7 and the
    European Union countries. This approach will be welcomed by African
    citizens, who prefer the U.S. model of development (32 percent) over
    the Chinese one (23 percent).\26\
        u.s. policy recommendations for bolstering trade with africa by
    increasing investment, bridging the digital divide, and addressing the
                  continent's energy and infrastructure needs
        The pandemic has created unique momentum for engagement with
    Africa. The U.S. should seize this momentum and build on Congress'
    historical bi-partisan support for the region to develop and
    successfully implement a long-term comprehensive Africa strategy that
    effectively coordinates action around trade, investment, commerce, and
    economic growth. This strategy should draw from consultations with
    African partners and multilaterals, building on areas of sustainable
    competitive advantages. The strategy should:

          a)  be rooted in the American values and principles that are
                aligned with the priorities of African citizens and U.S.-
                Africa mutual trade and investment interests

          b)  protect American, African, and global interests by advancing
                security, stability, and peace through strategic
                partnerships with African organizations

          c)  utilize U.S. strengths (digital transformation, Fourth
                Industrial Revolution, education, creative industries,
                health, democratic values, etc.) in the context of the new
                continental trade dynamics brought about by the African
                Continental Free Trade Areas (AfCFTA).

        Importantly, these are areas where the U.S. can still outperform
    its main competitors such as China or Russia. More specifically, my
    recommendations to the Subcommittee are as follows:
    Build on multilateralism and strategic alliances in concert with
            African partners to advance U.S. and African interests
        Given Africa's own emphasis on regionalism, the U.S. would do well
    to support those efforts and align its own strategy with this
    perspective in mind. Core African partners include: the African Union,
    the African Continental Free Trade Area, the Africa Centres for Disease
    Control and Prevention, the African Union Development Agency, the
    African Development Bank, among others.
        African leaders are looking for partners, especially in terms of
    trade and investment, more than they need aid. Initiatives from the
    Millennium Challenge Corporation and the DFC should further support
    African regional and continental projects, when possible, through
    regional compacts (MCC, through the 2018 AGOA and MCA Modernization Act
    (https://www.mcc.gov/news-and-events/feature/regional-investments),
    allows investments to be made across borders in Africa, creating
    opportunities for trade and investment by fostering regional
    integration and integrated markets).\27\ For the U.S. to outperform its
    competitors, it must be on the ground engaging with Africa both at the
    base but also at the highest levels, building on the Trade and
    Investment hubs, but going much further.
    Enhance the effectiveness and better coordinate the action of U.S.
            agencies acting around trade and investment in Africa by
            adopting the principle of agile governance
        The U.S. already has phenomenal tools, which in principle, could
    make a monumental difference if successfully implemented. Prosper
    Africa holds a lot of potential in terms of trade, investment, shared
    prosperity, and effective coordination of U.S. agencies, which is not
    yet realized. The goal of Prosper Africa is to coordinate the tools
    from across government agencies \28\ and to foster trade and investment
    between the U.S. and Africa. Although it is a great idea, many players,
    especially on the African side, are still hoping for it to achieve its
    full potential. It will be extremely important to have major wins to
    reinstate trust with African partners.
        I recommend making Prosper Africa more agile in its ability to
    manage complexity and competition, and appoint a dedicated full-time
    Chief Executive Officer to assist the current Executive Chairman and
    Chief Operating Officer, who are doing tremendous work. This new
    position should have the authority needed to fix the pacing,
    (appropriate speed of action) coordination (legitimate and appropriate
    coordination), and representation challenges (uniqueness of the voice,
    communication, and acceptance of the credibility), to deliver
    exceptional outcomes for U.S. and African businesses, and investors, to
    achieve mutual prosperity.
    Redefine the base for new engagement with Africa by appointing a U.S.
            Special Presidential Envoy for Africa to represent the U.S. at
            high-level meetings and multiply presidential and high-level
            visits in Africa
        To stop ceding ground to other powers in Africa, it is crucial that
    the U.S. reiterate the respect it has for Africa, Africans, and their
    leaders. Appointing a Special Envoy and reinstating high-level
    meetings, including presidential visits to the region, between the
    United States and Africa will send a strong signal. Regular visits by
    senior U.S. officials, including the President and his cabinet, will
    help to shift perceptions around Africa, highlighting the continent as
    a safe, reliable destination for investment. Creating a forum for
    dialogue between government officials and the SME community will create
    the opportunity to engage in a systematic and coordinated way.\29\
        Advancing such levels of engagement, with specific actions, will
    substantially advance mutual interests. The U.S. should build on this
    to further institutionalize relations with Africa and engagements at
    the highest level. The success of the U.S.-Africa Business Forum
    (https://obamawhitehouse.archives.gov/the-press-office/2016/09/21/
    remarks-president-obama-us-africa-business-forum), which did contribute
    to deals around USD $14 billion between 2014 (first edition) and 2016,
    with additional deals and commitments of USD $9 billion at the 2016
    edition, illustrate the importance of high-level meetings, which should
    be reinitiated (The first edition (https://2014-2017.commerce.gov/tags/
    us-africa-business-forum.html) of the U.S.-Africa Business Forum was
    attended by about 50 heads of state and governments, and 150 global
    CEOs).
        This is not just important for African leaders, but also for
    African citizens who prefer the U.S. model of development compared to
    any other country.\30\ Strategically seizing such as opportunity to
    build a long-term sustainable advantage will be critical.
    For the successful implementation of the AfCFTA and other critical
            initiatives (post-2025 AGOA, among others) the U.S. should be
            involved in regular high-level consultations between the United
            States Trade Representative, the AfCFTA, and the African Union,
            creating a working group which could define the critical steps
            forward
        It is important to engage with Africa on the way forward about
    U.S.-Africa relations, through regular consultations. The AfCFTA offers
    new opportunities for U.S. businesses to use Africa as a global
    platform, not just to capitalize on the large African market, but to
    benefit from the unique advantage provided to sell around the world.
    The U.S. will also gain market shares, etc. Africa can become the base
    for U.S. companies to trade not just with Africa, but with the world as
    well. Africa is not just a market, but also a platform to manufacture
    and export in other regions of the world. The AGOA Forum provides a
    platform to discuss these questions in partnership with Africans, but
    it remains underutilized.
    The U.S. should capitalize on the AfCFTA that provides the opportunity
            for the U.S. and the world to finally address the global
            macroeconomic imbalances which have been reflected in
            structurally large U.S. current account deficits with a handful
            of countries largely on account of excessive concentration of
            supply chains
        The growth opportunities associated with increasing economies of
    scale and productivity growth under the AfCFTA provides the path to
    reorder and diversify the supply chains for greater resilience and
    while also sustainably addressing the macroeconomic imbalances which
    have dominated the world economy over the past decades.
        Already several countries and corporations are taking advantage of
    growth opportunities offered by the AfCFTA in the automotive industry.
    Volkswagen (https://www.economist.com/business/2018/06/28/vw-opens-
    rwandas-first-car-assembly-plant) has opened its first car plant in
    Rwanda.\31\ \32\ Groupe Peugeot Societe Anonyme (https://
    www.peugeot.co.za/brand-and-technology/news/peugeot-to-open-a-new-
    assembly-plant-in-namibia.html) has established its first plant to
    assemble up to 5000 cars a year in Namibia, taking advantage of the
    free market area to target customers in other countries across the
    region.\33\ With its population growth and rising middle class, Africa
    could well become the largest market for the automotive industry in the
    coming decades.
        These are tremendous opportunities that U.S. carmakers, including
    those manufacturing less polluting new energy vehicles should be
    targeting, especially with Africa's excess reserves of lithium and
    coltan which are some of the most important raw materials for a rapidly
    changing industry.
    Focus policy action on impact, and on the effective implementation and
            delivery of initiatives, not just on big policy announcements
        The U.S. should distinguish itself by focusing on successful
    implementation of existing or new initiatives. For example, the G7
    countries and partners have announced an USD $80 billion dollars
    commitment for Africa's private sector for the next 5 years. How will
    it be implemented? It is critical to have a clear mechanism for
    successful implementation that includes sufficient details about the
    projects. For example, the U.S. and partners should engage with African
    multilaterals (AfCFTA, AU, etc.) and governments during the
    policymaking and implementation processes to strategically identify and
    align objectives. An implementation unit may be created, and a
    multistakeholder working group to assess and decide on mutual
    priorities. Similarly, how could the Build Back Better World initiative
    be successfully implemented, and to what extent will Africa benefit
    from it? The Administration needs to appoint a leader to strategically
    engage and to have consultations with allies. Bringing the allies
    together, and giving teeth to the plans that have been put together,
    will be critical to build sustainable competitive advantage for the
    U.S.
    The U.S. should promote commercial diplomacy through an economic
            strategy that goes beyond the traditional vision of trade and
            investment. Domestically, the U.S. should increase efforts to
            document and disseminate the tremendous potential Africa can
            have for U.S. businesses
        Given that a central goal of Prosper Africa is to double two-way
    trade, the United States should play a better role in identifying and
    sharing business and investment opportunities with its domestic
    businesses and corporations. As large corporations are already better
    resourced when dealing in Africa, American SMEs are the most likely
    beneficiaries of Prosper Africa--whether through market access or on
    the supply side--and the DFC should provide them with resources to help
    trade and invest in a timely manner. For Prosper Africa to benefit both
    the U.S. and Africa, each side needs to feel confident in the trading
    process and consider each other as friends.
        Prosper Africa should focus on specific mechanisms aimed at
    ensuring that American SMEs better understand the dynamics in Africa,
    to develop a specific interest and attraction on the continent and make
    others more eager to invest and do business there. This goal can be
    achieved through business promotion and facilitation activities
    encouraging business development as well as corporate diplomacy.
    The U.S. should capitalize on the African Diaspora, which is heavily
            represented and active in the U.S., by specifically adopting
            diaspora commercial diplomacy to foster trade and investment
            between the U.S. and Africa
        President Biden has made steps in strengthening this relationship
    through early engagement with the community, but this strategy can be
    pursued further in regard to trade and investment with Africa in order
    to distinguish the U.S. from other competitors and accelerate its
    competitive advantage. The collaborations between African innovators on
    the continent and African and African-American innovators based in the
    U.S. have the potential to advance (https://www.brookings.edu/blog/
    africa-in-focus/2019/02/14/from-wakanda-to-reality-building-stronger-
    relations-between-african-americans-and-africa/) U.S.-Africa relations
    on several levels.\34\ Members of the African diaspora have an
    incredibly valuable understanding of Africa-U.S. cross-cultural
    engagement, not to mention existing relationships and networks on the
    continent, making them perhaps the best suited to Prosper Africa's
    efforts to support and facilitate business I mentioned above. Prosper
    Africa should formalize a relationship with the African diaspora's SME
    community and the continent's SME community, and routinely engage as a
    group, to support the formulation of strategies and mechanisms to
    increase two-way trade. It has started such an effort, but can do more:
    For example, in 2019, Brookings hosted a conversation between USAID and
    members of the diaspora's SMEs. It brought to light specific,
    actionable ways to enhance the program's mechanisms, including the need
    to expand staff support at trade hubs, expedite DFC loans, and improve
    data collection and analysis. SMEs in Africa are crucial to include in
    these conversations so that all stakeholders are involved to ensure
    Prosper Africa designs effective, efficient policies.
    Accelerate the COVID-19 vaccine strategy and partnerships, and
            aggressively pursue vaccine diplomacy beyond COVID-19 by
            supporting the development of a vaccine manufacturing industry
            in Africa, including investments in human capital and
            technology development \35\
        According to the Africa Centers for Disease Control and Prevention
    (Africa CDC), only 3.19 percent (https://africacdc.org/covid-19-
    vaccination/) of Africans have received at least one dose of the COVID-
    19 vaccine as of July 21, 2021.\36\ A Duke University study estimated
    that most Africans will not have had an opportunity to receive the
    COVID-19 vaccine until 2024 (https://www.ey.com/en_gl/public-policy/
    how-free-trade-can-accelerate-africas-covid-19-recovery).\37\ The
    devastation of the COVID-19 pandemic, as well as other epidemics in
    recent years like, has revealed the urgent need for investment in
    Africa's national and continental healthcare systems. Vaccine diplomacy
    is a crucial first step towards helping Africa recover from the
    pandemic and prevent the emergence of new variants that might damage
    the recoveries in other nations.
        While it is the right thing to do, it will also support U.S.
    businesses. Poor healthcare systems threaten Africa's industrialization
    and workforce development, and now is the opportunity for the U.S. to
    help build equitable health systems and ensure preparedness for future
    health emergencies. This support should not be limited to loans or
    donations. Partnerships with academic institutions or public-private
    partnerships between U.S. and African agencies and firms that create
    avenues for collaboration, knowledge exchange, and skill and technology
    development will all be instrumental in strengthening the soft power of
    the U.S.
        Specifically, the U.S. should provide broad technical and financial
    support for the new African Union-Africa CDC initiative, Partnerships
    for African Vaccine Manufacturing (PAVM), which aims to build five
    vaccine-manufacturing research centers over the next 10-15 years. The
    success of this PAVM initiative would open doors for a transformation
    of Africa's pharmaceutical industry in Africa, a sector that has
    enormous growth potential. The development must go beyond ``fill and
    finish'' manufacturing, which does little to truly decrease Africa's
    overreliance on foreign suppliers.\38\
    Contribute to closing the gap in the physical and digital
            infrastructure by leveraging existing programs supporting
            African countries' digital transformation strategies \39\
        The U.S. already has established infrastructure and technology
    development programs, but is underutilizing them. Such initiatives,
    especially those that focus on electricity and internet penetration,
    should be prioritized and fast-tracked.\40\
        Most importantly and prior to even leveraging these existing
    initiatives, the U.S. should consult and act in partnership with
    African countries for the investments in major infrastructures,
    including 5G. For example, an opportunity is within OPIC [now DFC]'s
    ``Connect Africa'' initiative, which was launched with a fund of USD $1
    billion for transportation, ICT, and value chain development
    projects.\41\ The Power Africa initiative has been successful, and
    augmenting the program now would contribute to repairing and
    strengthening the U.S.-Africa relationship.\42\
        Furthermore, several African countries are developing and
    implementing a multi-stakeholder Fourth Industrial Revolution (4IR)
    national task force or commission to assess country readiness and adopt
    a comprehensive national strategy. Initiatives such as the Centers for
    the Fourth Industrial Revolution (South Africa and Rwanda), or the
    Presidential Commission on the 4IR (South Africa) should be supported
    and replicated across the continent.
    The U.S. must continue and increase its support to bridging the
            infrastructure gap in Africa while advancing trade and
            investment for mutual prosperity
        This, simultaneously, represents both a way forward to enhance
    trade and investment while achieving the global public good. In fact,
    in Sub-Saharan Africa, over 50 percent (https://data.worldbank.org/
    indicator/EG.ELC.ACCS.ZS?locations=ZG) of people live without access to
    electricity, more than 70 percent (https://data.worldbank.org/
    indicator/SH.H2O.SMDW.ZS?locations=ZG) of people live without access to
    safe drinking water, 69 percent (https://data.worldbank.org/indicator/
    SH.STA.BASS.ZS?locations=ZG) of people live without basic
    sanitation,\43\ and 53 percent (https://www.afdb.org/en/knowledge/
    publications/tracking-africa's-progress-in-figures/infrastructure-
    development) of the roads are unpaved.\44\ China has been playing a
    central role by investing in these areas.
        Importantly, the U.S. should differentiate its approach from
    competitors by emphasizing engagement with African continental
    organizations (PIDA, the AFDB, the African Development Fund, among
    others), bilaterally--and more importantly, transparently, with
    specific countries, and by partnering with allies. The U.S. also could
    better support capacity building and regional projects through
    investments, new projects, and partnerships. The U.S. could better
    partner with Africa to bring its own expertise and knowledge to serve
    at various phases of project development, such as studies and
    implementation.\45\ A long-term partnership will also be key to
    outperforming other players. The U.S. will see a high return for its
    investments, as well as geostrategic balance. The U.S. will fill an
    empty seat, that would otherwise be occupied by other players on the
    continent.
    The U.S. can build on higher education, another area of comparative
            advantage, to provide technical training and reskilling
            programs through initiatives and agencies to close the digital
            skills gap and human capital gap (especially for youth and
            women) \46\
        It is crucial the U.S. expand educational and training
    opportunities in Africa. The soft skills and development of academic
    institutions provide the opportunity for the U.S. to lay the foundation
    for a lasting win-win partnership with Africa, sustained by knowledge
    exchange and deepening business ties. U.S. policy needs to provide
    support that incentivizes American universities to open more campuses
    and degree programs, especially in STEM and technology, throughout
    Africa. Such programs provide skills in areas critical for the rise of
    manufacturing industry and effective decentralisation of global supply
    chains and will be equally beneficial learning opportunities for
    African students and American students who may study abroad. For
    example, Carnegie Mellon University has a campus in Rwanda that offers
    master's programs in information technology and electrical and computer
    engineering.\47\ Morgan State University has recently launched a
    partnership (https://global.morgan.edu/africa/) with a university in
    Ghana, offering two graduate degree programs to students.\48\ Fast-
    growing SMEs will be far more likely to evolve and invest in areas
    where there is a skilled workforce or, at least, resources to support
    training workers, and added U.S. support could go a long way towards
    creating an attractive business environment for SME investment. It is
    indeed an opportunity to establish a long-term partnership of a new
    nature between U.S. and Africa.
                                   conclusion
        In closing, it is time for U.S. to reverse the trend in the ground
    lost in Africa as many traditional and emerging global powers are
    racing to capture Africa's tremendous economic potential. The U.S. has
    a sustained competitive advantage to partner with Africa, advance U.S.
    trade and investment with the continent, while meeting the majority of
    Africans' priorities. It is up to the U.S. to pursue the
    recommendations above and seize this unique momentum to advance mutual
    U.S.-Africa trade and investment interests. By acting promptly, and
    forging transformative partnerships aligned with African values, the
    U.S. has the opportunity not only to advance its own interests, but to
    contribute to the transformation of a continent that will make up
    nearly 40 percent of the world's population by 2100, but also the
    opportunity to lead the way in building a more prosperous, democratic,
    secure, and stable world. As mentioned by William Schurz, ``borders
    frequented by trade seldom need soldiers.''
        Thank you very much for your attention and looking forward to your
    questions.

    ----------------
    Notes

        \1\ Landry Signe, ``How to Restore U.S. Credibility in Africa,''
    Foreign Policy, January 15, 2021 (https://foreignpolicy.com/2021/01/15/
    united-states-africa-biden-administration-relations-china/).
        \2\ E. Gyimah-Boadi, Landry Signe, and Josephine Appiah-Nyamekye
    Sanny, ``US foreign policy toward Africa: An African citizen
    perspective,'' Africa in Focus, Brookings (https://www.brookings.edu/
    blog/africa-in-focus/2020/10/23/us-foreign-policy-toward-africa-an-
    african-citizen-perspective/).
        \3\ Landry Signe, Unlocking Africa's Business Potential
    (Washington: Brookings Institution Press, 2020).
        \4\ Landry Signe and Chris Heitzig, ``Seizing the momentum for
    effective engagement with Africa,'' forthcoming 2021.
        \5\ Signe, Unlocking Africa's Business Potential, p. 247.
        \6\ Ibid.
        \7\ Ibid., p. 14.
        \8\ Wenjie Chen and Roger Nord, ``Reassessing Africa's global
    partnerships,'' in Foresight Africa 2018 (Brookings Institution,
    January 11, 2018) p. 110 (https://www.brookings.edu/research/
    reassessing-africas-global-partnerships/)
        \9\ Ibid.
        \10\ Signe, ``How to Restore U.S. Credibility in Africa.''
        \11\ Ibid.
        \12\ Signe, ``How to Restore U.S. Credibility in Africa.''
        \13\ Acha Leke and Landry Signe, ``Spotlighting opportunities for
    business in Africa and strategies to succeed in the world's next big
    growth market'' in Foresight Africa 2019 (Brookings Institution,
    January 11, 2019), p. 83 (https://foreignpolicy.com/2021/01/15/united-
    states-africa-biden-administration-relations-china/)
        \14\ Kannan Lakmeeharan and others, ``Solving Africa's
    infrastructure paradox,'' McKinsey & Company, March 6, 2020 (https://
    www.mckinsey.com/business-functions/operations/our-insights/solving-
    africas-infrastructure-paradox)
        \15\ AfDB, African Economic Outlook 2018, p. xvi (https://
    www.afdb.org/en/documents/document/african-economic-outlook-aoe-2018-
    99877)
        \16\ Miriam Tuerk, ``Africa is the Next Frontier for the
    Internet,'' Forbes, June 9, 2020 (https://www.forbes.com/sites/
    miriamtuerk/2020/06/09/africa-is-the-next-frontier-for-the-internet/
    ?sh=1bf4088a4900)
        \17\ AfDB, ``Infrastructure Development,'' 2021, (https://
    www.afdb.org/en/knowledge/publications/tracking-africa's-progress-in-
    figures/infrastructure-development).
        \18\ GSMA, ``The Mobile Economy Sub-Saharan Africa,'' 2020 (https:/
    /www.gsma.com/mobileeconomy/wp-content/uploads/2020/09/
    GSMA_MobileEconomy2020_SSA_Eng.pdf).
        \19\ Ibid. In Sub-Saharan Africa mobile internet users (https://
    www.gsma.com/mobileeconomy/sub-saharan-africa/) are expected to
    increase from 272 million (26 percent of the population) in 2019 to 475
    million (39 percent) in 2025, and 65 percent of people will own
    smartphones by 2025.
        \20\ AfDB, ``Infrastructure Development.''
        \21\ Njuguna Ndung'u and Landry Signe, ``The Fourth Industrial
    Revolution and digitization will transform Africa into a global
    powerhouse,'' in Foresight Africa 2020, (Brookings Institution, January
    8, 2020), p. 61 (https://www.brookings.edu/research/the-fourth-
    industrial-revolution-and-digitization-will-transform-africa-into-a-
    global-powerhouse/)
        \22\ Noah Lewis, ``A tech company engineered drones to deliver
    vital COVID-19 medical supplies to rural Ghana and Rwanda in minutes,''
    Business Insider, May 12, 2020 (https://www.businessinsider.com/
    zipline-drone-coronavirus-supplies-africa-rwanda-ghana-2020-5)
        \23\ World Bank, ``The African Continental Free Trade Area,'' July
    27, 2020 (https://www.worldbank.org/en/topic/trade/publication/the-
    african-continental-free-trade-area)
        \24\ Gyimah-Boadi, Signe, and Sanny, ``US foreign policy toward
    Africa: An African citizen perspective.''
        \25\ Ibid.
        \26\ Signe, ``How to Restore U.S. Credibility in Africa.''
        \27\ MCC, ``Regional Investments,'' 2021 (https://www.mcc.gov/news-
    and-events/feature/regional-investments)
        \28\ The agencies include: USAID (U.S. Agency for International
    Development), DFC (U.S. International Development Finance Corporation),
    U.S. Department of Commerce (DOC), U.S. Department of State, U.S. Trade
    and Development Agency (USTDA), Export-Import Bank of the United States
    (EXIM), U.S. African Development Foundation (USADF), U.S. Office of the
    Trade Representative (USTR), Millennium Challenge Corporation (MCC),
    U.S. Department of Energy (DOE), U.S. Department of Labor (DOL), U.S.
    Department of Homeland Security's Customs and Border Protection (DHS/
    CBP), U.S. Department of Transportation (DOT), U.S. Department of
    Treasury, U.S. Department of Defense (DoD), U.S. Department of
    Agriculture (USDA), U.S. Small Business Administration (SBA).
        \29\ This recommendation is an adapted excerpt from my previously
    published article ``Can Trump's Prosper Africa make America greater
    than China and other partners in Africa?'' Brookings, 26 July 2019
    (https://www.brookings.edu/blog/africa-in-focus/2019/06/26/can-trumps-
    prosper-africa-make-america-greater-than-china-and-other-partners-in-
    africa/)
        \30\ Gyimah-Boadi, Signe, and Sanny, ``US foreign policy toward
    Africa: An African citizen perspective.''
        \31\ ``VW opens Rwanda's first car-assembly plant,'' The Economist,
    June 30, 2018 (https://www.economist.com/business/2018/06/28/vw-opens-
    rwandas-first-car-assembly-plant)
        \32\ Ignatius Ssuuna, ``Volkswagen opens Rwanda's 1st car assembly
    plant,'' The Washington Post, June 27, 2018 (https://
    www.washingtonpost.com/world/africa/volkswagen-opens-rwandas-1st-car-
    assembly-plant/2018/06/27/83c9bcb2-7a07-11e8-ac4e-
    421ef7165923_story.html)
        \33\ ``Peugeot to open new assembly plant in Namibia,'' Peugeot,
    2018, (https://www.peugeot.co.za/brand-and-technology/news/peugeot-to-
    open-a-new-assembly-plant-in-namibia.html)
        \34\ Landry Signe, ``From Wakanda to reality: Building mutual
    prosperity between African-Americans and Africa,'' Africa in Focus,
    Brookings, February 14, 2019 (https://www.brookings.edu/blog/africa-in-
    focus/2019/02/14/from-wakanda-to-reality-building-stronger-relations-
    between-african-americans-and-africa/)
        \35\ This recommendation is adapted from my forthcoming report,
    ``Seizing the momentum for effective engagement with Africa,'' co-
    authored with Chris Heitzig.
        \36\ Africa CDC, ``Africa CDC Vaccine Dashboard,'' (https://
    africacdc.org/covid-19-vaccination/)
        \37\ Douglas Bell and Kyle Lawless, ``How free trade can accelerate
    Africa's COVID-19 recovery,'' EY, February 23, 2021 (https://
    www.ey.com/en_gl/public-policy/how-free-trade-can-accelerate-africas-
    covid-19-recovery)
        \38\ Carlos Mureithi, ``What Pfizer and BioNTech's partnership in
    Africa means for the continent,'' Quartz Africa, July 22, 2021 (https:/
    /qz.com/africa/2036736/what-pfizer-and-biontechs-partnership-in-africa-
    means-for-africa/?utm--source=email&utm_medium=africa-weekly-
    brief&utm_content=2ed74f95-ebc6-11eb-a0a8-ca71a6b14d37)
        \39\ This recommendation is adapted from my forthcoming report,
    ``Seizing the momentum for effective engagement with Africa,'' co-
    authored with Chris Heitzig.
        \40\ Emilia Columbo, ``Leveraging Africa's Technology Boom to
    Protect U.S. Interests,'' Lawfare, April 7, 2020, (https://
    www.lawfareblog.com/leveraging-africas-technology-boom-protect-us-
    interests)
        \41\ U.S. International Development Finance Corporation (USDFC),
    ``OPIC Launches Connect Africa Initiative to Invest more than $1
    Billion Supporting Infrastructure, Communications, and Value Chain
    Connectivity,'' July 2, 2018, (https://www.dfc.gov/media/opic-press-
    releases/opic-launches-connect-africa-initiative-invest-more-1-billion-
    supporting)
        \42\ Katie Auth and others, ``Going Big on Power Africa: Fortifying
    the Initiative for Today's Urgent Challenges,'' Energy for Growth Hub,
    March 24, 2021 (https://www.energyforgrowth.org/report/going-big-on-
    power-africa-fortifying-the-initiative-for-todays-urgent-challenges/)
        \43\ Data retrieved from the World Bank DataBank (https://
    databank.worldbank.org/home.aspx) and represents various years between
    2017 and 2019.
        \44\ AfDB, ``Infrastructure Development.''
        \45\ The United States Trade and Development Agency (USTDA) is
    already playing an important role in advancing capacity building and
    regional projects in Africa.
        \46\ This recommendation is adapted from my forthcoming report,
    ``Seizing the momentum for effective engagement with Africa,'' co-
    authored with Chris Heitzig.
        \47\ W. Gyude Moore, ``Biden already has Africa's early goodwill,
    here's how to deliver on its promise,'' Quartz Africa, January 22, 2021
    (https://qz.com/africa/1961323/?utm_term=mucp)
        \48\ Morgan State University, (https://global.morgan.edu/africa/)

        Senator Van Hollen. Thank you. Thank you, Dr. Signe.
        Now we will turn to Ms. Hruby. Thank you for your testimony
    today.

       STATEMENT OF AUBREY HRUBY, NONRESIDENT SENIOR FELLOW, THE
            AFRICA CENTER, ATLANTIC COUNCIL, WASHINGTON, DC

        Ms. Hruby. Thank you, Senators, for the opportunity to
    speak today, and a special thanks to your hard-working staff
    for putting this hearing together and all that they do.
        My name is Aubrey Hruby and I am a senior fellow at the
    Africa Center at the Atlantic Council and I am a long-term
    advisor to investors investing across the continent.
        You spoke eloquently about the tools that we now have in
    our toolbox when it comes to U.S.-Africa commercial diplomacy.
    I wanted to give some recommendations on how those tools could
    be improved and then what we should use those tools to do.
        So going first to the DFC, the biggest issue there has been
    the equity power that was granted to the DFC in the BUILD Act
    and has not been fully realized because of scoring budgetary
    issues with OMB.
        So I fully support efforts by Senator Murphy and by
    Representative Castro in the EAGLE Act and the Innovation and
    Competition Act to fix this issue and allow the DFC to be able
    to operate with its full equity allocation, making it
    competitive with European DFIs and with other states that
    finance infrastructure and projects globally.
        The DFC should also work with Prosper Africa to engage
    domestically in the United States, not invest but to engage in
    terms of mobilizing investment, interest, and institutional
    capital to be introduced to African opportunities.
        We have a big country and we have a very dynamic market,
    and one of the reasons why many companies do not look to Africa
    is they have many other places to look, and we need to
    introduce them to the opportunities. So this domestic
    imperative to mobilize capital should be a part of how the DFC
    works with Prosper Africa.
        Also on the DFC, I hope that it continues to remain focused
    on investing in lower income countries and maintaining that
    development finance mandate with the exceptions it can get
    through the White House process to invest in higher income
    countries.
        The focus should remain one that would benefit U.S.
    companies and African markets as they seek to develop.
        On Prosper Africa, I think the biggest issue there comes in
    terms of its focus area. It needs to have sectoral focus,
    because trying to mobilize investment around a general mission
    of just facilitating trade investment is very difficult because
    no one goes to a cocktail party and says, I work for the
    private sector.
        No, they work in banking. They work in farming. They work
    in tech. So we need to organize the Prosper Africa outreach
    based on a sectoral focus.
        When it comes to MCC, I believe MCC should have the ability
    to do subnational compacts. Today, it can do national compacts,
    partnerships between, say, the U.S. and Ghana, which received
    multiple compacts from the MCC, and it can do regional
    compacts, and I was pleased to see the announcement of a
    movement to do the West Africa Power Pool, which is an example
    of a regional compact.
        However, I do believe we are leaving something on the table
    when we do not think about working with subnational entities
    like Nigerian states, for example, where we could have huge
    impact on poverty alleviation and encourage good governance
    with that competition that happens in federalism, which we know
    well, as a large, messy federal democracy ourselves.
        So in that sense, I think we are missing an opportunity
    with MCC.
        On AGOA, Florie spoke eloquently on the importance that
    AGOA has played in undergirding our commercial ties with
    African nations.
        Thinking about what replaces a 25-year program is an
    important process, and I think this committee and others can
    encourage hearings, encourage Prosper Africa to start a process
    of thinking about what should replace AGOA. It needs the best
    minds and energies that we have to bear.
        Now, with these tools, what should we focus on? We spoke
    about the need to remain competitive in the face of competition
    with China.
        My focus would be on digital infrastructure, in particular.
    We have been concerned for some time about Huawei, ZTE, and
    other companies building out the telecom infrastructure that is
    in African markets.
        I think we have the opportunity in the U.S. to leapfrog
    some of that with satellite, not to mention our dominance in
    things like media, entertainment, and venture capital.
        So if you think of the future of African markets, it will
    be shaped by the cell phone, and this is the mirror of the
    world of hundreds of millions of young Africans.
        The question is who is going to shape how this is used,
    what is on it, the content of the future, and for me, that is
    what we should be thinking about, how best the U.S. can use our
    tools and American companies' investments and our policy to
    kind of shape a better digital future more aligned with shared
    values between the U.S. and African nations around democracy,
    free and fair internet, and participating fully in a digital
    economy.
        So thank you. I look forward to taking questions.
        [Prepared statement of Ms. Hruby follows:]

                       Prepared Statement of Aubrey Hruby

        Distinguished members of the committee and fellow witnesses: I
    would like to begin by thanking you for the opportunity to testify
    before you today.
        My name is Aubrey Hruby. I am a Senior Fellow with the Africa
    Center at the Atlantic Council, and I have spent my career advising
    Fortune 500 companies and investors to design and implement successful
    investment and market entry strategies in over 32 African markets. I
    will devote my testimony to the following 5 themes: (1) improving DFC,
    USAID, MCC, AGOA, Prosper Africa and the new tools needed to bolster
    economic engagement in Africa; (2) playing a greater role in helping to
    aid implementation of the African Continental Free Trade Area (AfCFTA)
    and the opportunities the AfCFTA afford U.S. firms; (3) how to work
    with allies and partners to meet Africa's needs and present a better
    alternative to China and Russia; (4) how U.S. investment in 5G and
    telecoms can help bridge the digital divide on the continent; and (5)
    what the next generation of Africans is looking for in U.S.-Africa
    relations and where the alignment is between U.S. investment
    opportunities and African growth needs.
                                  introduction
        Emerging markets, home to 6 billion people, accounted for nearly
    two-thirds of global growth and half of new consumption came from
    emerging markets over the past 15 years.\1\ In order to remain
    competitive throughout the 21st century and beyond, U.S. companies need
    to be better equipped to navigate and succeed in the fast-growing
    markets of Asia and Africa. As the youngest continent with the highest
    urbanization rate in the world, Africa's 1.2-billion-person market,
    home to six of the world's ten fastest growing economies, increasingly
    commands more attention from U.S. tech and entertainment companies.
    This momentum should be accelerated by creative U.S. government
    financing and support initiatives. Ensuring that Prosper Africa
    actualizes its potential and continuing to enhance the DFC should be
    key pillars of U.S. commercial policy moving forward.
    Improving DFC, USAID, MCC, AGOA, Prosper Africa and the new tools
            needed to bolster economic engagement in Africa
        DFC--In order to enable the U.S. to compete with Chinese financing
    activity in African markets and match the offerings of European DFIs,
    the DFC needs the full equity power afforded to it in the BUILD Act and
    potentially more. It is my understanding that OMB faces challenges
    scoring equity in the budget and the DFC has yet to receive the full $1
    billion outlined by the BUILD Act because OMB is treating equity
    investments on a dollar-to-dollar basis as it would with grants. The
    DFC must be allowed to start with at least $1 billion in equity
    authority, using a net present value model so only 5 percent of the $1
    billion needs to be provided in direct appropriations in the form of a
    loan loss reserve as is common with European DFIs. The legislation
    currently allows for up to 35 percent of its $60 billion investment
    portfolio (or $21 billion) to be made in the form of equity.\2\
    Therefore $1 billion of equity authority is a minimum for the DFC to be
    taken seriously. As the Senate considers the EAGLE Act and reconciles
    it with the U.S. Innovation and Competition Act, I urge that the
    changes put forth in the amendment from Rep. Joaquin Castro (D-TX) to
    the EAGLE Act and those from Senator Chris Murphy to the Innovation and
    Competition Act that would fix the budget scoring issue around equity
    investing be codified into law.
        I strongly supported the expansion of the DFC through the BUILD Act
    as it is crucial to U.S. commercial policy globally and particularly in
    African markets. And going forward, it should remain focused on
    investing in low-income countries and this committee should resist
    efforts that have been made within the EAGLE Act to shift the agency
    away from its core development finance mandate. The DFC also needs the
    resources, personnel, and direction to mobilize capital domestically in
    order to optimize its international activities.
        While, by mandate, the DFC must operate internationally, it must
    also embrace a domestic imperative, in partnership and coordination
    with Prosper Africa, to actively mobilize institutional capital and
    better support U.S. investors who venture into new markets. This will
    require the DFC to address key data, network, visibility, and
    structural gaps that have historically handicapped U.S. investment in
    the emerging world. It can no longer remain passive in Washington
    waiting for investors or project sponsors to facilitate opportunities.
        The DFC could partner with USAID's Prosper Africa to create an
    office of project promotion that would facilitate the collection and
    synthesis of data from an investor perspective on projects in sectors
    of U.S. competitive advantage. The data could be accessed via a portal
    by state offices of international trade, business associations and
    investors, and used as part of DFC roadshows to major U.S. cities.
        There remains a widespread perception that U.S. companies are not
    active and are disadvantaged in African markets. This office could help
    to dispel this misperception by working with U.S. business schools to
    commission a series of in-depth case studies of both successes and
    failures in African markets. High-level business forums can also help
    to address the visibility gap between U.S. investors and investment
    opportunities by creating a platform for sharing these investment case
    studies, especially when they have highly visible White House or
    Congressional support. The natural tendency of investors is to invest
    in what they know best, which is often what is in their backyard. But
    in today's interconnected market and video-conferencing world, distance
    is no longer an excuse for ignorance.
        In parallel, the DFC should create a program for private sector
    secondees, volunteers, and retirees to serve in advisory council roles
    on specific funds, deals, and sector teams. Or for those interested in
    a longer, on-the-ground commitment, a Peace Corps MBA-type initiative
    (a U.S. commercial corps) should be considered.\3\ The Dutch
    Government-funded PUM Netherlands Senior Experts--a nonprofit
    organization that develops small and medium-sized enterprises in over
    thirty emerging markets--provides a viable model.\4\ These types of
    programs would amplify U.S. soft power and create a new cadre of
    American business leaders with experience and linkages to African
    markets.
        Prosper Africa--Building on the recommendations above, I believe
    that Prosper Africa, despite its slow roll-out, has been a positive
    development in U.S. Africa commercial policy. The deal teams are an
    unprecedented effort to coordinate the disparate agencies involved in
    U.S.-Africa commercial policy. This backend coordination should be
    sustained and strengthened. In terms of enhancing its competitiveness,
    Prosper Africa needs to have an outward sectoral organizing principle
    and focus. For example, Power Africa should be a front-facing focus of
    Prosper Africa, as well as a future digital Africa program. I often
    like to use the analogy of a computer chip to describe Prosper Africa.
    Prosper Africa is like the intel chip of a Dell or HP laptop. For me,
    Prosper Africa is our computer processor, universal in the backend
    process, operating as a coordination mechanism that brings everything
    together while the front-facing brand to our African partners or U.S.
    companies in Chicago, Houston or Seattle see and engage with Power
    Africa or Digital Africa.
        As Prosper Africa approaches its 2-year mark, it is still
    struggling to articulate and operationalize its vision of doubling
    trade and investment by mobilizing U.S. capital. To put it on the right
    course, the Biden administration and/or Congress should encourage the
    following recommendations:

          (1) Define priority sectors for U.S. commercial policy in African
    markets. Prosper Africa should announce and market a focus on two or
    three priority sectors, choosing among energy, financial services,
    agribusiness and renewables, specialized oil and gas services, digital
    infrastructure/technology, or media and entertainment as priority
    sectors for its capital mobilization and partnership development
    efforts. Each can then be operationalized through task forces,
    replacing the Doing Business in Africa (DBIA) campaign as the mechanism
    for channeling engagement with U.S. companies. When it comes to
    infrastructure and implementing the vision outlined by the Build Back
    Better World Initiative, the U.S. Government should engage companies on
    African opportunities in niche areas that make commercial sense--
    especially in renewables, energy management services, cybersecurity,
    data centers, and smart city technologies.

          Taking a sectoral approach does not mean that U.S. Government
    agencies will shut the door on companies seeking support in sectors
    that are not a priority, but rather structure active promotion and
    communication around priority sectors. If Prosper Africa were to adopt
    a sectoral focus, it could inject excitement about potential
    investments through industry-specific communications and outreach. A
    sectoral emphasis also has a secondary effect--it enhances and
    accumulates expertise in a particular sector within the U.S. Government
    (as has happened with Power Africa), which can be further leveraged to
    support investors. Instead of being jacks-of-all-trades and masters of
    none, U.S. officials become steeped in specific sectors and
    consequently become well positioned to engage with and help U.S.
    companies succeed.

          (2) As part of the office of project promotion outlined above,
    Prosper Africa should find credible interlocutors and create champions
    to be used in investment mobilization efforts. Prosper Africa should
    convene a group of industry ambassadors in priority sectors with
    experience in emerging markets to act as validators and mobilize their
    networks. These industry ambassadors would play a critical operational
    role in the sectoral task forces. The ideal person would be someone who
    had recently retired or was taking a sabbatical and is interested in
    goal-oriented public service. They should remain based in cities
    outside of Washington, DC, enabling the Prosper Africa team to have a
    wider reach across the country.

          (3) Take the show on the road. Prosper Africa needs to
    significantly expand outreach efforts to connect U.S. businesses with
    commercial opportunities in African markets. Prosper Africa can help
    coordinate with the DFC and other government agencies on a series of
    roadshows in U.S. cities that are home to the most competitive
    companies to generate interest in Prosper Africa's target sectors. For
    example, a focus on the media and entertainment sector would include
    regular activities in Los Angeles and New York.

          Internal mobilization of capital and business interest could be
    paired with U.S. investor trips, segmented by sector and investor type,
    to African markets and reverse trips of stellar African entrepreneurs
    to the U.S. These trips could be modeled on the USAID-supported
    Mobilizing Institutional Investors to Develop Africa's Infrastructure
    (MiDA) program that has been bringing U.S. pension funds to large
    African markets for the past 3 years. By educating and building trusted
    networks for U.S. companies, focused investor missions can help Prosper
    Africa meet the goal of doubling trade and investment between the
    United States and Africa.

        The efforts outlined above should be informed by market data. Given
    the size and breadth of the American economy, mobilizing U.S.
    investment into African markets will require experimentation. As a
    starting point, Prosper Africa could focus on experiments in three main
    areas: messaging, education, and structure. First up, U.S. Government
    agencies need a better understanding of how to effectively present
    African investment opportunities to U.S. investors. Despite years of
    economic and governance progress in African nations, old stereotypes
    remain, and U.S. investment is stagnant. By holding focus groups and
    leveraging innovative public relations and marketing firms, this team
    could experiment with new messaging tactics to learn what works and
    what doesn't. Beyond messaging, effectively educating different types
    of investors from venture capitalists to pension fund trustees requires
    some experimentation. This includes everything from determining who in
    these organizations are the correct targets for education to
    understanding which up-to-date, actionable data are needed and which
    platforms are most effective.
        MCC--Congress must also work to make the Millennium Challenge
    Corporation a more efficient and sustainable investment platform by
    allowing it to make subnational compacts. MCC currently works on a
    bilateral basis with individual national governments and the Millennium
    Challenge Act allows for such assistance to ``regional or local
    government units,'' but the act requires the MCC Board to identify and
    evaluate countries, not regions, for compacts.\5\ I am glad to see that
    MCC is using its regional capacity in West Africa with the recent
    progress with ECOWAS around the West Africa power pool.\6\ This is an
    important new effort that will hopefully deliver learnings that can be
    used in future regional projects.
        But we are missing an opportunity to advance MCC's mandate to drive
    poverty alleviation in well-governed places at the subnational level.
    MCC's selection indicators typically reported only at the national
    level, especially for the corruption and democratic governance hurdles
    which are the primary cause of scorecard failures.\7\ It is likely that
    the MCC is going to run out of partner countries as countries
    increasingly will not pass the indicators on the national level. This
    would also prevent particularly impoverished regions of otherwise
    wealthy countries from participation in the MCC. Therefore, I am in
    agreement with former MCC CEO Dana J. Hyde that the MCC should, in
    certain contexts, address poverty reduction at the local level through
    regional or sub-regional compacts.
        The subnational approach would make a lot of sense in federal
    countries such as Nigeria and would mirror the changing private sector
    market-entry strategies of focusing on cities rather than national
    economies. It would enable the MCC to partner with states and
    municipalities that would be overlooked given national failure in the
    scorecard assessment and mobilize the competitive nature of federalism
    to drive regulatory reform.
        The African Growth and Opportunity Act (AGOA)--Given that AGOA has
    been the backbone of the U.S.-Africa trade relationship for the past
    20+ years and its expiration is on the horizon, it is important to
    create a process to mobilize the best thinking on the future of U.S.-
    African trade. Prosper Africa, working with USTR, could oversee this
    process working with think tanks to create a working group with
    experts, surveying companies and consulting with African policy and
    business leaders. Congress can support this process by calling for
    hearings and reports.
    Playing a greater role in helping to aid implementation of the African
            Continental Free Trade Area (AfCFTA) and the opportunities the
            AfCFTA afford U.S. firms
        AfCFTA promises U.S. firms a much larger market in which to operate
    their businesses by helping to reduce the high costs of operating in
    the region, particularly in terms of regulatory and logistics expenses.
    The challenge lies in implementing the bold vision that African nations
    have codified in the AfCFTA. The market potential will remain
    unrealized if there is a major gap between the realities on the streets
    and border crossings and what is on the books in terms of the AfCFTA.
    The U.S. can lead in the effort to support the Secretariat of AfCFTA in
    developing digital infrastructure solutions, smart city and e-
    government solutions and reducing the cost of logistics through
    digitization. While we have certainly faced our own challenges in
    modernizing our digital and physical infrastructure in the U.S., U.S.
    targeted support for digitization would help African countries to
    leapfrog 20th century approaches to moving people, goods, and services
    across borders. The focus on digital infrastructure would also allow
    the U.S. to compete with Chinese approaches to shaping the digital
    future of over 1 billion Africans. In addition to digital
    infrastructure support, the U.S. can provide embedded advisors and
    technical experts to the Secretariat to support the implementation of
    the AfCFTA.
    How to work with allies/partners to meet Africa's needs and present a
            better alternative to China and Russia
        This is a broad and far-ranging question, and I will touch on some
    of the issues when discussing digital and telecom infrastructure. I
    would like to draw the attention of the committee to one particular
    area of potential U.S.-European-African cooperation--the lithium
    battery value chain. China currently dominates the supply chains for
    inputs to lithium batteries though the majority of the primary
    resources sit in African markets. Ensuring U.S. competitiveness in
    electric vehicles and the future green economy will require a
    rethinking of existing supply chains. To move these supply chains away
    from China and towards the U.S. and EU, we need to create a triangle
    value chain that incorporates African value addition to these vital
    natural resources.
    How U.S. investment in 5G and telecoms can help bridge the digital
            divide on the continent
        It is important that we recognize that most African countries are
    years away from 5G, and estimates state only seven African countries,
    including South Africa, Nigeria, and Kenya will have 5G by 2025.\8\
    Currently, Chinese companies such as Huawei and ZTE have state-backed
    financing mechanisms and have already built 2G and 3G infrastructure in
    over 40 African countries. According to Cobus van Staden, a senior
    China-Africa researcher at the Southern African Institute of
    International Affairs, Huawei has built roughly 70 percent of the
    continent's 4G network.\9\ Currently, eleven Sub-Saharan African
    nations are deploying Huawei's AI surveillance technologies.\10\ They
    include Cote d'Ivoire, Ghana, Kenya, Uganda, Nigeria, Rwanda, South
    Africa, Zambia, and Zimbabwe. During the COVID crisis, China is greatly
    expanding its aid to African countries and may support countries with
    surveillance technologies that can support tracking and tracing that
    may have other uses beyond the pandemic.\11\ Therefore, the U.S. should
    focus support on other aspects of the telecom and mobile tech space
    sector such as: satellite development and support, support for African
    space agencies, phone applications, fintech, venture capital, content
    creation and creative industries (i.e. Netflix), cybersecurity. This
    could all be done in a flagship digital Africa initiative that would be
    housed under Prosper Africa. By doubling down on sectors in which the
    U.S. is already competitive or at a significant advantage, we can
    maximize U.S. support for a digital future in Africa markets that
    aligns with U.S. values and enhances long-term U.S. competitiveness.
        The current competitive challenge that China presents the U.S. in
    African markets is no longer around its financing and construction of
    physical infrastructure, but rather its new efforts to shape Africa's
    technology stack \12\ and digital future, and as a result how the next
    generation of Africans will consume, interact, and do business with the
    world. Mobile devices have near-universal penetration in Africa's media
    markets, and increasingly, smartphones are becoming more accessible and
    affordable throughout the continent.\13\ Chinese firms have the lion's
    share of the market. By 2025, Africa's mobile penetration is expected
    to reach 50 percent or 614m connections, with 65 percent of those via a
    smartphone.\14\ Shenzhen-based Transsion, which does not operate in the
    United States or Europe, dominates the African smartphone space. It
    holds 40.6 percent unit share under its three brands (Tecno, Indinix,
    and iTel), ahead of second-place Samsung with roughly 19 percent.\15\
    Increasingly important are the preferential treatment Transsion can
    give its own apps, including market-leading music streaming service
    Boomplay and mobile-money provider PalmPay.\16\ These Transsion brands
    also dominate the featured phone landscape with a combined 69.5 percent
    share. In South Africa alone, Huawei accounts for 14.5 percent of
    phones sold, the second-highest share and significantly more than
    Apple's 4 percent.\17\ Price and Africa-focused features are some of
    the determining factors. Smartphones that cost under $100 composed of
    half the total market share in Africa in Q4 in 2019.\18\
        However, as China's telecommunication infrastructure expands across
    the continent, there are concerns around built-in Chinese-apps,
    privacy, data protection, and over dependence. The recently launched
    African Youth Survey, which interviewed 4,200 African youths aged 18 to
    24, finds that 80 percent of those surveyed view regular access to the
    internet as a human right.\19\ Access to the internet, especially in
    autocratic countries, is often restricted or completely shut down
    during periods of protests and around elections.\20\ A report by Access
    Now, indicates that globally, in 2019, there were 36 incidents in 19
    countries of internet shutdowns lasting longer than 7 days.\21\ Among
    these countries include eight African nations including Chad, Ethiopia,
    the Democratic Republic of the Congo, Eritrea, Mauritania, Sudan and
    Zimbabwe. The U.S. can appeal to young Africans by defending open
    internet standards and policies, especially as U.S. companies are
    involved in some of the largest digital infrastructure projects
    underway in African markets.
        In 2019, Google announced a subsea cable called Equiano that runs
    from South Africa to Portugal, with a stop in Nigeria.\22\ This
    submarine cable will be owned and operated solely by Google, in
    contrast to the consortium of investors that typically co-own these
    cables. Facebook is undergoing an even more ambitious project--the
    2Africa subsea cable that loops around the continent and connects 23
    countries in Africa, Europe, and the Middle East.\23\ The 2Africa cable
    alone, which is scheduled to be completed by 2024, would double the
    total internet capacity on the continent. These subsea investments from
    American firms stand to drastically increase the supply of internet on
    the continent, potentially leading to reduced internet prices.
        The additional broadband capacity that will be delivered by the new
    subsea cables will then require investment into terrestrial fiber
    infrastructure to spread access from the port inland. U.S. companies
    are also investing in innovations still at pilot stage but with the
    potential to scale and be transformative. Google's parent company,
    Alphabet, through its X moonshot company has launched Project Taara to
    expand the existing fiber network to surrounding rural areas at
    significantly lower costs.\24\ Initially piloted in Kenya and India,
    Project Taara transmits high-speed data between two points above ground
    through invisible streams of light.\25\ Transmitting data through the
    air avoids the costs and inconveniences of digging paths to lay fiber
    cables and will be met with fewer regulatory hurdles since private and
    public land is not required. U.S. Government agencies, such as the
    Millennium Challenge Corporation, the U.S. International Development
    Finance Corporation, the Export-Import Bank of the United States, and
    the U.S. Agency for International Development, could partner with X
    moonshot to scale these pilots and provide regional solutions as
    learnings accumulate and costs drop.
        The high cost and low margins of laying fiber cables in rural areas
    has led to a persistent last-mile problem, reinforcing dependence on
    mobile data usage and reinforcing the digital divide. Less than one-
    third of Africans have regular access to internet of any kind.\26\ U.S.
    policy should also provide an alternative to Chinese technology by
    promoting new direct-to-consumer satellite solutions. The SpaceX
    StarLink satellite project could also prove transformative in
    delivering high-quality internet directly to consumers wherever they
    may be.\27\ The project's network of interconnected satellites can
    provide high-speed internet access to even the most remote locations on
    the planet, with speeds that are faster than 95 percent of U.S.
    connections.\28\ It is currently in a public invitation-only testing
    phase and is only available in latitudes 45 to 53 degrees, which covers
    a small range of regions in the northern hemisphere.\29\ Initially only
    available in the northern United States and southern Canada, recent
    regulatory permission in the U.K. has allowed StarLink services to be
    offered in the country as well. As more satellites are launched, more
    areas around the globe will be covered by this service. Countries such
    as Greece, Germany, and Australia have already approved StarLink
    operations in anticipation of such an expansion.\30\ StarLink's startup
    kit cost of $499 and monthly payment of $99 would be an obstacle for
    expansion into African economies but expected price drops of new models
    will make this an exciting option for internet access in African
    markets in the next 18 to 24 months.
        In addition to supporting U.S. tech firms that are already
    investing in African markets with financing, advocacy or promotion, the
    United States can also invest in tech solutions, such as improved
    routing protocols, that stand to build device trust and avoid the
    binary choice between U.S. and Chinese tech.\31\ Through these
    policies, the United States can slow and possibly erode the gains that
    companies like Huawei have made on the continent by promoting
    innovative U.S. technologies and providing resources to help unleash
    the second wave of the internet revolution in African countries.\32\
    What is the next generation of Africans looking for in U.S.-Africa
            relations and where is the alignment between U.S. investment
            opportunities and African growth needs
        Africa's young people are looking to countries and companies that
    can speak to and keep up with their ambitions. They want to engage
    actively in the digital economy and in creative industries and consume
    creative content. And they increasingly are demanding a free and open
    internet as seen in the rise of VPN usage in Nigeria after the June
    Twitter ban. Already a 1.2-billion-person market, Africa's youth are
    better connected than ever before and COVID has accelerated
    digitization of products and services. African start-up ecosystems have
    attracted double-digit fundraising growth year-over-year.\33\ As
    technology adoption expands, the means by which Africans view and see
    the world will be shaped by the hardware and software they have access
    to and use.
        Despite the influx of Chinese investment into the backend of the
    continent's telecommunications infrastructure, venture start-ups, and
    the media space, the United States still has many competitive assets to
    build upon.\34\ The U.S. must leverage the strategic advantage of our
    African diaspora population to build and strengthen ties with the
    African continent. Higher education has a central role to play. The
    United States was built on the backs of Africans and their descendants,
    and the African diaspora continues to play an important role in
    strengthening people-to-people ties across the Atlantic. Of the more
    than 46.8 million African Americans, as of 2018, there were about 2.4
    million foreign-born Africans in the United States, a dramatic rise
    from even 2000 when there were fewer than 1 million. About 40 percent
    of America's African immigrants hold at least a bachelor's degree, a
    rate higher than that of the U.S. born population.
        One area the U.S. Government has long promoted, but faced setbacks
    under the Trump administration, is opening the American education
    system to international students. Since 1950, the United States has
    welcomed an estimated 1.6 million African students to colleges and
    universities adding diversity to classrooms and communities. Today,
    Nigeria is ranked eleventh for the number of students in the United
    States based on country of origin, ahead of countries including the
    United Kingdom, Germany, and France. U.S. universities, and people-to-
    people exchanges such as YALI, thus serve as essential mechanisms for
    developing close relations with future African decision makers. More
    than 20 percent of current African leaders studied in the United
    States, including the leaders of Cote d'Ivoire, Ethiopia, Ghana, and
    Kenya. Studying or living in the United States unquestionably deepens
    one's understanding of the country, and while this does not mean future
    African leaders will agree with all U.S. policies, it often does
    predispose them to an openness and familiarity with American policy and
    business ties. Yet, China surpassed the U.S. in 2015 in hosting the
    largest number of English-speaking African students for higher
    education.
        While we face our own infrastructure challenges at home in the U.S.
    in terms of roads and bridges and rail, we should focus on our
    strengths in education as we think of investing in African
    infrastructure as part of the B3W initiative. Creating jobs for the 10
    to 12 million young Africans that enter into the labor force each year
    will require a revolution and expansion of education and it will need
    to be delivered in a mobile digital format.
        Even during the current global pandemic, following the closure of
    schools because of government efforts to mitigate the spread of COVID-
    19, the Chinese StarTime's Kenyan subsidiary has launched homeschool
    programming.\35\ It presents primary and high school students with the
    unique opportunity to continue their education through audio visual
    programming that will include live sessions by experienced teachers at
    no cost.
        China is also shaping media content through educational
    initiatives. It helps shape the careers of African journalists through
    high-level media cooperation initiatives and new China-Africa press
    centers.\36\ Each year about 1,000 African journalists participate in
    training programs in China with the aim to build deeper understanding
    and cultural ties with the country.\37\ This is a concerning practice
    given China's history of media coercion and censorship.\38\
        With traditional markets moving digital, the future of the African
    technology stack will only rise in importance. A critical area of
    future competition will be in digital currencies, including China's
    digital yuan, and the potential to undermine dollar hegemony. While
    today the utility of the digital yuan in Africa is minimal, 10 years
    down the road this picture could change significantly with businesses,
    governments, and perhaps everyday individuals using digital yuan to
    settle transactions. All of this may be accelerated by Chinese handsets
    with pre-downloaded apps and wallets that support these
    transactions.\39\
        While trucks, trains, and planes have long dominated how African
    consumers and businesses are able to interact with global markets, the
    digitization in the last decade has changed this equation, and the U.S.
    must update U.S.-Africa policy considering this important trend. By
    marrying soft power and commercial success, the United States can do
    much more than simply help the bottom line of American companies--it
    can win the next generation of hearts and minds in some of the world's
    fastest-growing and youngest markets.

    ----------------
    Notes

        \1\ ``Outperformers: High-growth emerging economies and the
    companies that propel them,'' McKinsey, September 11, 2018, https://
    www.mckinsey.com/featured-insights/innovation-and-growth/outperformers-
    high-growth-emerging-economies-and-the-companies-that-propel-them#;
    David Muller, ``Emerging Markets--Powerhouse of global growth,''
    Ashmore Group, May, 2018, http://www.ashmoregroup.com/sites/default/
    files/article-docs/MC_10%20May18_2.pdf.
        \2\ Rob Mosbacher, ``We need to get the new U.S. DFC over the
    finish line. Here's why.'' Devex, October 2, 2019, https://
    www.devex.com/news/opinion-we-need-to-get-the-new-us-dfc-over-the-
    finish-line-here-s-why-95728.
        \3\ Aubrey Hruby, ``Go where the action will be: Biden needs to
    pursue African initiatives,'' The Hill, January 21, 2021, https://
    thehill.com/opinion/international/535171-go-where-the-action-will-be-
    biden-needs-to-pursue-africa-initiatives.
        \4\ For more on PUM see: https://www.pum.nl/en.
        \5\ Sec. 605(c) identifies the entities eligible for assistance,
    while Sec. 606 and Sec. 607 define the selection process.
        \6\ ``MCC Advances Regional Integration to Expand Energy Access in
    West Africa,'' MCC, June 16, 2021, https://www.mcc.gov/news-and-events/
    release/release-061621-mcc-advances-regional-integration-west-africa.
        \7\ Nick M. Brown, ``Millennium Challenge Corporation: Overview and
    Issues,'' Congressional Research Service, October 3, 2019, https://
    fas.org/sgp/crs/row/RL32427.pdf.
        \8\ `` 5G in Sub-Saharan Africa: laying the foundations,'' GSMA,
    July 16, 2019, https://www.gsma.com/subsaharanafrica/resources/5g-in-
    sub-saharan-africa-laying-the-foundations.
        \9\ Amy Mackinnon, ``For Africa, Chinese-Built Internet is Better
    Than No Internet at All,'' Foreign Policy, March 19,2019, http://
    foreignpolicy.com/2019/03/19/for-africa-chinese-built-internet-is-
    better-than-no-internet-at-all/.
        \10\ Abdi Latif Dahir, ``Chinese firms are driving the rise of AI
    surveillance across Africa,'' Quartz Africa, September 18, 2019, http:/
    /qz.com/africa/1711109/chinas-huawei-is-driving-ai-surveillance-tools-
    in-africa/.
        \11\ Simnikiwe Mzekandaba, ``Govt puts mobile tech at centre of
    COIV-19 mass screening, testing,'' itweb, March 31, 2020, http://
    www.itweb.co.za/content/rxP3jqBmKaKMA2ye.
        \12\ The technology stack is defined as the individual layers that
    makeup the digital communications ecosystem, including six main layers:
    undersea cables & satellites, telecommunication companies & internet
    service providers, mobile handsets, cellular networks & Wi-Fi,
    operating systems, and lastly apps, mobile money, content platforms,
    and web browsers.
        \13\ ``New study reveals African media consumption habits,''
    African Marketing Confederation, June 3, 2016, http://
    www.africanmc.org/index.php/daily-articles/item/433-new-study-reveals.
        \14\ ``The Mobile Economy of Sub-Saharan Africa 2020,'' GSMA, 2020,
    https://www.gsma.com/mobileeconomy/wp-content/uploads/2020/09/GSMA--
    MobileEconomy2020_SSA_Eng.pdf.
        \15\ ``Africa's Smartphone Market Posts Growth, but Uncertainty
    Around Global COVID-19 Outbreak Casts Shadow over Short-Term
    Prospects,'' IDC, March 5, 2020, http://www.idc.com/
    getdoc.jsp?containerId=prMETA46110420.
        \16\ Ingdrid Lunden, ``Boomplay, a Spotify-style music and video
    streaming service for African music and Africa, raises $20M,''
    TechCrunch, April 5, 2019, https://techcrunch.com/2019/04/05/boomplay-
    a-spotify-style-music-and-video-streaming-service-for-african-music-
    and-africa-raises-20m/
    ?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referre
    r_sig=
    AQAAAE6IdsMZejXxQIGSAEEURIQUXsRZqDK-hoPJGG413N1cS6YQ-
    eiQ9c2kWEXUd9eigOia6Sn9IJFJmXjEHGQI00QP79vAomFzKr4i-
    Ct0jp-3VQD2lR8YWvtZPJEA5dq6NQ5aCHPpGQZxCgW8zhS4Jgd3TVR1YstGga-
    IL0rZW7hY.
        \17\ ``Huawei is beating Apple in South Africa--and is gaining on
    other competitors,'' My Broadband, August 3, 2019, http://
    mybroadband.co.za/news/smartphones/270741-huawei-is-beating-apple-in-
    south-africa-and-is-gaining-on-other-competitors.html.
        \18\ Yinka Adegoke, ``The Chinese-made, sub-$100 smartphone is
    Africa's fastest-growing handset.''
        \19\ ``Africa Youth Survey 2020,'' Ichikowitz Foundation, 2020: 60,
    http://ichikowitzfoundation.com/wp-content/uploads/2020/02/African-
    Youth-Survey-2020.pdf.
        \20\ Yomi Kazeem, ``Internet shutdowns in Africa were more frequent
    and lasted longer in 2019,'' February 27, 2020, http://qz.com/africa/
    1808728/african-internet-shutdowns-were-more-frequent-in-2019/.
        \21\ Ibid.
        \22\ For Equiano overview see: https://cloud.google.com/blog/
    products/infrastructure/introducing-equiano-a-subsea-cable-from-
    portugal-to-south-africa.
        \23\ Najam Ahmad, Kevin Salvadori, ``Building a transformative
    subsea cable to better connect Africa'' Facebook Engineering, May 13,
    2020, https://engineering.fb.com/2020/05/13/connectivity/2africa/
    #::text=As%20part%20of%20our%20commitment,continent%20and%20Mid
    dle%20East%20region.&text=At%2037%2C000%20kilometers%20long%2C%202Africa
    ,the%20cir
    cumference%20of%20the%20Earth.
        \24\ For more on Project Taara see: https://x.company/projects/
    taara/.
        \25\ Mahesh Krishnaswamy, ``Bringing light-speed internet to Sub-
    Saharan Africa,'' X, November 10, 2020, https://blog.x.company/
    bringing-light-speed-internet-to-sub-saharan-africa-4e022e1154ca.
        \26\ ``Individuals using the Internet (% of population)--Sub-
    Saharan Africa,'' World Bank, https://data.worldbank.org/indicator/
    IT.NET.USER.ZS?locations=ZG.
        \27\ For more on Starlink see: https://www.starlink.com/.
        \28\ Kate Duffy, ``SpaceX's Starlink internet public beta is giving
    some users blistering download speeds of more than 210 Mbps, including
    in rural Montana,'' Business Insider, July 27, 2021, https://
    www.businessinsider.com/starlink-internet-satellite-public-beta-speed-
    spacex-mbps-elon-musk-2020-
    11#::text=SpaceX's%20public%20beta%20test%20of,as%20part%20of%20the%20be
    ta.
        \29\ ``Starlink Mission,'' Space X, November 24, 2020 https://
    www.youtube.com/watch?v=J442-ti-Dhg&feature=youtu.be&t=606.
        \30\ Thomas Seal, ``Elon Musk's Starlink Broadband Terminals Gets
    Approval in U.K.'' Bloomberg Quint, January 11, 2021, https://
    www.bloombergquint.com/business/elon-musk-s-starlink-broadband-
    terminals-gets-approval-in-u-k.
        \31\ David Bray, ``5G's geopolitics solvable by improving routing
    protocols against modern threats,'' Atlantic Council, April 9, 2020,
    https://www.atlanticcouncil.org/blogs/geotech-cues/5gs-geopolitics-
    solvable-by-improving-routing-protocols-vs-modern-threats/.
        \32\ Briefing, ``How the pursuit of leisure drives internet use''
    The Economist, June 8, 2019, https://www.economist.com/briefing/2019/
    06/08/how-the-pursuit-of-leisure-drives-internet-use.
        \33\ Tage Kene-Okafor, ``How African startups raised investments in
    2020,'' TechCrunch, February 11, 2021, https://techcrunch.com/2021/02/
    11/how-african-startups-raised-investments-in-2020/.
        \34\ Aubrey Hruby, ``Making the most of Prosper Africa; Leveraging
    U.S. competitiveness in African markets,'' March 27, 2020, http://
    www.atlanticcouncil.org/in-depth-research-reports/report/making-the-
    most-of-prosper-africa-leveraging-us-competitiveness-in-african-
    markets/.
        \35\ Molly Wasonga, ``StarTimes Launches a Homeschooling Program
    For Students,'' CIO, April 6, 2020, http://www.cio.co.ke/startimes-
    launches-a-home-schooling-program-for-students/.
        \36\ ``The 4th Forum on China-Africa Media Cooperation Held in
    Beijing and Joint Statement on Further Depending Exchanges and
    Cooperation Declared,'' Forca Summit, July 19, 2018, http://
    focacsummit.mfa.gov.cn/eng/pthd_1/t1578639.htm; Darrel Frost, ``Even if
    you don't think you have a relationship with China, China has a big
    relationship with you,'' Columbia Journalism Review, June 20, 2019,
    http://www.cjr.org/special_report/china-foreign-journalists-oral-
    history.php.
        \37\ ``China is broadening its efforts to win over African
    audiences,'' The Economist, October 20, 2018, http://www.economist.com/
    middle-east-and-africa/2018/10/20/china-is-broadening-its-efforts-to-
    win-over-african-audiences.
        \38\ Geoffrey York, ``Why China is making a big push to control
    Africa's media,'' The Globe and Mail, September 11, 2013, http://
    www.theglobeandmail.com/news/world/media-agenda-china-buys-newsrooms-
    influence-in-africa/article14269323/.
        \39\ Eric Olander, ``Don't Worry America, Africans Aren't Going to
    Start Using China's New Digital Currency . . . At Least Not Right
    Away,'' China Africa Report, May 26, 2021, https://
    chinaafricaproject.com/analysis/dont-worry-america-africans-arent-
    going-to-start-using-chinas-new-digital-currency-at-least-not-right-
    away/.

        Senator Van Hollen. Well, thank you very much, Ms. Hruby,
    for that terrific testimony, and to all of you. We have been
    joined by Senator Kaine. Thank you, Senator Kaine.
        Let me just start with the questioning and then Senator
    Hagerty will be back and I will go vote after that. Let me
    start with you, Ms. Hruby, because thank you for identifying
    some specific measures that we could take in terms of improving
    some of these tools, including the DFC, and we are working to
    try to address the issue of making sure that we have more
    equity, leverage, and power with the CBO issue you identified.
        You also mentioned the issue of focusing on digital,
    especially with Huawei and 5G, and I am pleased that it is part
    of the sort of competitiveness bill that we passed here in the
    Senate to enhance our competitiveness.
        We included an amendment to direct the DFC to strengthen
    its capabilities there. You have mentioned a sectoral approach.
    I do not know if you have got an idea of what sectors you think
    would be most fruitful for us to focus on as we move forward.
        Ms. Hruby. Sure, I can speak to that issue.
        I spent some time working on questions of American
    competitiveness when looking to African markets, and I think it
    is important when we talk about infrastructure, because we
    talked about infrastructure broadly.
        If you look at the composition of the U.S. economy, we are
    a services-based economy. We have not built infrastructure in
    our own country for decades, and this is something that is,
    obviously, taking up a lot of your time here in the Senate.
        When we think about being involved in infrastructure, I
    think it is important to think about niche areas: renewable
    energy, satellite infrastructure, basically, digital
    infrastructure.
        So I agree with some of the efforts that is happening in
    the White House to think about a digital Africa policy or
    initiative that would fall under Prosper Africa. Prosper
    Africa, for me, is like the umbrella.
        It is the back end that facilitates the coordination
    between all of our disparate government agencies. The front end
    needs to be led with a sector.
        So I think digital Africa makes sense, which is digital
    infrastructure, content development, that kind of
    entrepreneurial ecosystem and venture capital. I would put that
    all under a digital Africa kind of headline.
        Power Africa continue to focus on power and renewable
    energy, especially with the new ambitious climate goals this
    Administration has, and then we can look to other things.
        We can look at finance. We can look at agriculture and
    agribusiness. There are many areas. I think the key is to pick
    two or three and stick with them and stop having the focus of
    generalities when it comes to promoting trade and investment
    with Africa.
        Companies do not invest in Africa. They invest in a country
    like Nigeria, they invest in a city like Lagos, and they invest
    in a sector. So I think it is important to drill down and have
    a sector focus when it comes to building our partnerships in
    African markets and in mobilizing U.S. investment.
        So when Prosper Africa was rolled out, and you will
    remember it was kind of a stuttering rollout, many my
    colleagues and friends in African market said, wait, is it just
    an American--that the agencies are just going to do their jobs
    better?
        They are just going to coordinate better? That cannot be
    what we are selling or putting on the table that is the nature
    of American partnership.
        No, it needs to be around things like educational
    partnerships, which Dr. Signe just mentioned. It needs to be
    around digital partnerships or agribusiness investments.
        We need something specific to focus on. So from my
    perspective, there are quite a few good choices. We just need
    to pick two or three.
        Senator Van Hollen. Thank you for that, and that leads to a
    question.
        Ms. Liser, you mentioned in your comments that while some
    African countries have prospered more or taken more advantage
    of AGOA, many have not benefited.
        If you look at the figures, I think you see that over 50
    percent of trade and investment in Africa is, really, two
    countries, Nigeria and South Africa.
        How do we do what you suggested? How do we get more African
    countries to benefit from that, using these other tools as
    well?
        Then, Dr. Signe, if you could also focus on that question.
        Ms. Liser. Thank you, Senator. I think that picking up a
    bit on what Aubrey said, we need to be sector focused and we
    need to be region focused, and we need to think about how
    global supply chains work.
        So I have had the privilege over the years when I was at
    USTR and even since then to visit factories on the continent in
    Africa in a range of sectors, and what I mean by focusing on
    sector country is that if you look at value chains, if you
    visit a plant in Mombasa that is producing apparel--Kenya is
    now the largest exporter of apparel to the U.S. under AGOA--
    what you realize is that you have factories there that have
    5,000, 6,000 people, you can visit similar factories in
    Tanzania and Uganda that only have maybe 200 or 300 people.
        They are not able to really scale up in the same way as the
    Kenyans. But if they work together through the East Africa
    Customs Union, and if Kenya actually had a free trade agreement
    where it had permanent duty-free access to U.S. market, then
    what we would be able to do is not just scale up competitive
    production of apparel in Kenya, but they would then be able to
    bring into that value chain some of the smaller producers in
    the region and perhaps some who might be able to make zippers
    but could not really put the final product together, or the
    buttons or, any of the things that go into apparel.
        So I think that as we think about how to help countries
    like the Tanzanias and the Ugandas to take greater advantage of
    AGOA, we should think about are there particular supply chains
    where they already have some capacity but if they are linked to
    others in the region that they could do more.
        I saw this also in the automobile sector. I visited a
    factory in Lesotho that was producing leather seats for
    automobiles in South Africa that are being shipped to the U.S.
    under AGOA.
        Again, it is unlikely that an auto manufacturer is going to
    go and set up in Lesotho. How do you bring the Lesotho in to
    the automotive value chain? That is something that is possible.
        I think we could take lots of these kinds of example,
    including in value-added agricultural products, manufacturing
    of footwear. I have seen that as well, and then try to take
    advantage of the way that companies operate these days.
        They cannot be in small, tiny markets all across Africa.
    They need a larger unified market that can drive investment.
        I would just think that that goal of the companies for
    markets that are larger and economies of scale can also be
    linked to how we help countries do better under AGOA.
        Thank you.
        Senator Van Hollen. To my colleagues, we will do 7-minute
    rounds. I think we will have ample opportunity and we will have
    more than one round of questions if people are interested.
        Dr. Signe, I am going to apologize because I do have to
    vote right now, but I will be back to follow up with some of my
    questions. Let me turn it over to Senator Hagerty.
        Senator Hagerty. Thank you, Chairman. I will see you in a
    few minutes after your vote.
        Ms. Hruby, I would like to turn to you for the moment to
    talk with you about something that you mentioned in your
    testimony I found very interesting and that is electric
    batteries.
        You mentioned specifically that we need to work more
    closely with our allies and partners to meet Africa's needs and
    prevent a better alternative than what is presented by China
    and Russia.
        I think that is an excellent case in point that you brought
    up about the potential of focusing on the electric battery
    value chain as a way to cooperate between the United States,
    between Europe and, certainly, with Africa, and something that
    I am aware of and that you brought up as well is that China
    currently dominates the supply chain for lithium batteries.
        Yet, the majority of the inputs come from Africa, and I
    think you highlight a critical point that is of great interest
    to me, because in my home state of Tennessee we produce a lot
    of cars. We are very interested in the evolution toward the
    electronic vehicle.
        We want to maintain our leadership role there. In fact, we
    just announced a $2.3 billion investment in Tennessee in
    lithium batteries.
        I would, certainly, support any initiative that we can work
    on that would increase cooperation between Africa and the
    United States on this issue, particularly, when it comes to
    supply chains.
        I would look forward to just having you elaborate a bit on
    how we might create greater cooperation with Africa on the
    electric battery supply chain.
        Ms. Hruby. Thank you, Senator.
        I think the COVID crisis has shown us globally a need to
    rethink supply chains and many countries around the world--many
    of our allies are doing that.
        I know the Japanese, for example, they have this big
    program through their central bank to reshore some supply
    chains outside of China after they realized vulnerabilities
    that they did not see before.
        I think the lithium battery supply chain is one we can look
    at because of its importance to continued U.S. competitiveness
    when it comes to EVs and other areas of renewable energy.
        Obviously, solar is very key in terms of use of renewable
    or lithium batteries. So as African countries are home to many
    of these resources from the lithium that you can get in Congo
    to graphite in Mozambique, right now, China refines about 80
    percent of the world's graphite that goes into these supply
    chains and there is a need to think about how to do that
    better.
        Because of some of the trade and proximity benefits that
    European countries have to African nations and their shared
    desire to have supply chains that are less dependent on China,
    I think there are ways we can begin to have that conversation.
        One of them is to convene a lot of the mining companies
    that know a lot of the rare earth minerals and core competitive
    minerals like lithium to understand what they consider key in
    thinking about their supply chains and what investments would
    need to be made.
        I think where African nations share this interest is they
    want to do value addition locally. For too many centuries, you
    could say even decades for sure, but centuries they have been
    exporting raw commodities to the world unrefined and,
    therefore, exporting the jobs that comes with them.
        So many of the countries seek to do some of the refining at
    home, and, hopefully, with Power Africa, because some of the
    problems with refining is because the high cost of electricity,
    with some of the Power Africa investments that have been made
    and increasing investment into renewable energy sources, maybe
    some of that power can be locally used to do some of the
    smelting and refining.
        So, for me, it is about having a dialogue with both the
    mining companies, private sectors, the companies that are doing
    the batteries and consuming the batteries, and then European
    and Asian countries in addition to the African homes of these
    minerals.
        Senator Hagerty. Yes. I think it also is important as well
    to continue to convey the basic principles of free market
    competition that we support here in America that are not
    available in dealing with Chinese companies.
        There has been adequate experience, I will just say this,
    in Africa and around the world right now to see the great
    difference and there is a great contrast between our approach
    and that of the Chinese Communist Party.
        I hope we can continue to find ways, but I particularly
    appreciate your identifying that sector because it rings close
    to home for me, and I look forward to finding ways to continue
    to cooperate.
        Ms. Liser, I would like to turn to you next and talk about
    recent press reports that China has proposed an alternative
    Quad framework.
        I was surprised to see their outreach to Germany and France
    to propose a Quad framework with the African nations, and they
    propose to cooperate on development projects there in Africa.
        It is not clear whether or not this proposed China-led Quad
    will actually materialize or go anywhere. If it were to
    proceed, it might pose significant challenges to the United
    States, and I would like to get your perspective and your
    opinion on how this might evolve.
        What would it mean for our U.S. interest in Africa?
        Ms. Liser. Yes, this kind of approach where the Chinese are
    trying to, basically, become a part of sort of the usual
    processes, become linked to others that may have more of the
    reputation that African countries and others like is a part of
    their strategy.
        They know they have been in Africa. They surpassed U.S. in
    trade with Africa years ago. They are providing favorable
    financing for their companies to build roads and airports, et
    cetera, in Africa and build out the infrastructure, which the
    Africans, very much need. So when the Chinese come to them,
    they offer that.
        Now, I think that if they can link arms with others who are
    considered probably a bit more legitimate in terms of the kinds
    of things that they do and the ways that the Africans view
    them, then I think that that is something that will benefit
    them.
        I think the key for the U.S., though, is to not be
    reactive. I think we have to think proactively and creatively
    about what we can do, because I have not been to any country,
    and I have been to many on the continent, where they are not
    saying, look, Florie, where are the U.S. companies? How can we
    get more U.S. investment? What do we have to do to get your
    companies to come?
        They like our products. They like the fact that U.S.
    companies will transfer technology, will transfer skills and
    train. So they want to work more with us, and I think that what
    we have to do is to look at the tools that we have now.
        As has been said here already, look at the Prosper Africa,
    where they are bringing together all of the 17 U.S. Government
    agencies and try to be on one page and leverage what the others
    are doing.
        I think that we have to look at what it is that the U.S.
    can do, both the Government, Congress and the executive branch
    and what U.S. companies can do in Africa that is desirable,
    perhaps more than anything than those others and this new G-4
    approach can offer, and I think it will be welcomed, sir.
        So that is where I think we have to sit down and map out
    what we can do and the tools that we can use more effectively.
        Senator Hagerty. I, certainly, agree with the substance of
    your statement.
        In terms of not being reactive, that was precisely my
    reaction to what China announced in terms of an Africa-oriented
    Quad because we have been so successful with our Quad approach
    between ourselves, Japan, India, and Australia and the Indo-
    Pacific.
        In many ways, I think this is yet more propaganda coming
    from China. I like your choice of words legitimate because
    United States does provide a legitimate framework, and I agree
    with you.
        If we can bring our 17 agencies together under the Prosper
    Africa initiative and really develop and drive the full force
    and power of the American position, I think we can make great
    strides.
        Dr. Signe, may I turn to you quickly?
        Africa's infrastructure needs are massive, as we have
    discussed. Recent estimates by the African Development Bank put
    the continent's minimum infrastructure needs at $130 to $170
    billion. For over two decades, China has actively poured money
    into infrastructure projects in Africa and it is unclear
    whether their motives are market-based or whether they are
    strategic.
        As a lifelong businessman, I understand it is very
    difficult to do business with a competitor that plays by a
    different set of rules and has the balance sheet of China
    behind it.
        So, Dr. Signe, are U.S. firms showing interest in building
    infrastructure and can they do so in an effective way, given
    the difference in a competitive posture versus China?
        Dr. Signe. Thank you very much for the question.
        So one point I want to highlight is that African citizens,
    per Afrobarometer surveys, prefer the American model of
    development compared to the Chinese one. For example, in one of
    the recent studies, 32 percent prefer the American model over
    the Chinese model (23 percent); other countries lagged
    substantially.
        So, definitely, there is an appetite in Africa for American
    investors, and I think both Madam Liser and Ms. Aubrey Hruby
    have identified also that appetite as illustrated.
        So that is one point. So the second point is that I think
    the U.S. should be strategic in terms of engagement, in terms
    of infrastructure. A sectoral perspective and as mentioned in
    my written testimony, in the context, especially to bridge the
    gap in terms of digital technology, the digital infrastructure
    gap. Extremely important. It is still possible for the U.S. to
    be more competitive than some of the Chinese corporations.
        I think for this to happen, it is important to engage with
    African organization, whether the African Union, who have
    programs for infrastructure development in Africa like, for
    example, the plan aiming at bridging the infrastructure gap in
    Africa by 2040, among other initiatives. It is important to,
    engage especially at the continental level from a multilateral
    perspective, by setting the priorities together, and given the
    support that the U.S. already has on the continent, I think it
    will definitely be possible for American companies to
    outperform some of the external players.
        Senator Hagerty. I would certainly like to see that. Thank
    you, Dr. Signe.
        I would like to turn it over now to my colleague, Senator
    Kaine from Virginia.
        Senator Kaine. Thank you, Senator Hagerty, and to you and
    the chair of the subcommittee for holding this important
    hearing today on trade and investment opportunities.
        I am going to spend my time talking about the interaction
    between economic opportunity and COVID and vaccination. I just
    returned from a CODEL to the Americas with six members of this
    committee--three Democrats, three Republicans--and it was
    pretty amazing.
        Even if I had seen the briefing and it had said exactly
    what I am about to say, it was so different seeing it in
    person, and that was the incredible gratitude of the nations we
    visited--Mexico, Guatemala, Ecuador, and Colombia--for the U.S.
    donations of vaccines.
        What we heard from the presidents of these nations, and the
    shortest meeting we had was 2 hours and the longest was 3
    hours, and that is not the norm. I think it was because of this
    vaccine diplomacy.
        What we heard was they really appreciate the U.S. donations
    of vaccines because they can buy vaccines from China or Russia,
    but the donations from both the U.S. but then also from COVAX
    to which the U.S. is a significant supporter, that is
    appreciated.
        They also feel that the U.S. quality of the vaccines--
    Moderna, Pfizer, J&J--is very high while the Sinovax and
    Sputnik vaccines are safe but the effectiveness is not nearly
    as desirable, at least in their view and I think the evidence
    would bear that out.
        So the power of U.S. vaccine diplomacy became very obvious
    to me when we were there, but also the stories of the economic
    challenges faced by these nations during COVID while they are
    still dealing with the Delta variant, et cetera, are pretty
    stiff.
        This is the case for Africa as well. The IMF estimates that
    Africa, the continental GDP contracted by 1.9 percent in 2020
    and that was the largest regional contraction on record.
        There is a growth prediction of 3.4 percent in 2021, but
    that is compared with a global growth projection of about 6
    percent. The recent surge in coronavirus cases has lessened,
    but Africa continues to struggle, as we all do, with the Delta
    variant.
        Thus far, only about 1 percent of Africans have been fully
    vaccinated and the AU's relatively modest goal of getting 20
    percent vaccinated by the end of 2021 seems pretty hard to
    reach.
        The U.S. has to recognize that the continent is not going
    to reach its potential economically on the issues we are
    talking about today until the virus is contained. That is the
    case for Africa and elsewhere.
        So what I want to ask is each of you to give us your own
    thoughts about what the U.S. should do. In July, the U.S. began
    making its first COVID-19 vaccine shipments to Africa, the
    ultimate goal of sharing 25 million doses this summer across
    the partnership in connection with the African Union.
        The Biden administration's recent vaccine donations are a
    good step. The reality is that Africa will need about 200
    million doses to stem the crisis and meet its year-end goal.
        So given the crying need to do better on vaccination in
    order to both help people but also create the conditions that
    are necessary for robust economic activity, what do each of you
    have to recommend to us in the U.S. Senate with respect to U.S.
    vaccine diplomacy in Africa?
        Ms. Liser. May I?
        Senator Kaine. Please.
        Ms. Liser. Thank you, Senator Kaine.
        At the Corporate Council on Africa, we are very focused on
    this issue you are talking about. In fact, we had just
    yesterday as a part of our U.S.-Africa Business Summit a
    session on vaccine access, and we had in that session
    executives, some CEOs from major companies in the U.S., some
    that are members of CCA, Pfizer, Johnson & Johnson, Abbott and
    others, who are playing a role.
        We had the CEO of a South African company that is producing
    vaccines with the support of Johnson & Johnson. The key here
    is, is that collaboration is definitely needed. It is needed
    between the African Union, the African Medical Supply Platform,
    the AMSP, that they have put into place.
        If I can just say I commended them. When the COVID pandemic
    was sort of at its start, all the African countries were
    competing against each other to try to get vaccines for their
    people, and then finding that because others could outbid them
    on the market and it was sort of the wild, wild, west was going
    on out there, so they would order. They would not get any and
    they were competing against each other.
        When they put that platform together under the African
    Union, they were then able to say, okay, what are all the needs
    and then they said, okay, who can supply, and only people who
    could supply at the right prices and deliver within 2 weeks, I
    believe they gave them, were then contracted to be a part of
    that.
        So collaboration is important across the continent,
    collaboration between government and private sector. For
    example, in Ghana, the Government is supporting an effort with
    the private sector where the private sector, like banks and
    other institutions, are saying we will buy vaccine for our
    workers and for every one vaccine we buy for a worker we will
    donate one vaccine to the Government, because COVAX has been,
    largely, focused on just the health workers.
        So the average workers, the average people in African
    nations, have not had access. So the private sector has to work
    with the Government to say, how can we do better on this?
        So that is one of the things that they are doing now is
    private sector, basically, boosting the Government's ability to
    supply vaccine while also getting vaccine to people that they
    need to come to work and to be able to reopen their businesses
    because we all know that they took a double hit, not just the
    health impact but the collapse of their economies, no tourism,
    airlines not functioning, et cetera.
        So I would just say that that is the key for government and
    private sector working together and then for the U.S. working
    with the African Union and with individual countries to supply
    vaccine.
        Senator Kaine. Thank you.
        Senator Hagerty, would you allow me to have the other two
    witnesses weighing in on this? I have hit the end of my time,
    but I think it is an important topic.
        Senator Hagerty. Absolutely. Absolutely, Senator Kaine.
        Senator Kaine. Please.
        Dr. Signe. Thank you very much for the question. According
    to the Africa Centers for Disease Control and Prevention, only
    about 3.19 percent of Africans had received at least one dose
    of COVID-19 vaccines as of July 21st. So that is an extremely
    important question, and thank you very much for asking this.
        A few elements are important here. Africans are now moving
    towards trade and investment and less aid, although under the
    current circumstances (COVID-19 Pandemic) aid is important and
    should be acknowledged.
        However, the U.S. can build on areas of strengths and
    distinguish itself from other players by contributing to
    investment in Africa in the pharmaceutical sector, in the
    vaccine industry, and should also provide broad technical and
    financial support to the new African Union, Africa CDC
    initiative, the Partnership for the African Vaccine
    Manufacturing, which aims to build five vaccine manufacturing
    research centers over the next 10 to 15 years.
        So here again, we have seen China donating vaccines
    extensively to many countries on the continent, so yes, it is
    important the U.S. is doing so as well.
        But, really, the element of sustained competitive advantage
    here will be to partner with African countries, partner at the
    continental level, at the subregional level, at the national
    level, with strategies which will allow Africa to produce
    COVID-19 vaccines, but even more, to produce other vaccines
    which are much needed in the continent. We have already seen
    some of those partnerships with Pfizer, for example, in South
    Africa.
        So those are the types of initiatives which should be
    accelerated.
        Ms. Hruby. I will be brief, Senator. I think we do a couple
    things. In the nearest term, we continue to donate as much as
    we possibly can.
        We also have many are unvaccinated in this country, so have
    to balance that. In the medium term, we do deals as the DFC has
    done with, for example, the Aspen deal that Landry just
    mentioned, which is to produce J&J, and then there was recently
    another one with Pfizer and Biovac in Cape Town, and then there
    is the partnerships in Dakar, Senegal.
        So those are the medium term, which is to try to get the
    supply chains working to produce some of the vaccine inputs and
    vaccines on the continent.
        Longer term, it is research partnerships because this is
    not the last pandemic we will see, and their need to ensure
    that no one is left behind when designing new medicines and
    thinking about the discoveries that will keep us all safe in
    the future.
        Senator Kaine. Thank you very much. I yield back.
    Appreciate it.
        Senator Van Hollen. Thank you, Senator Kaine.
        Senator Young, I think, is joining us virtually here.
        Senator Young. Well, thank you, Chairman, and I thank all
    of our witnesses for appearing before the subcommittee.
        We have seen how Chinese aid, investment, and trade in the
    region have grown in the past decade. These large numbers often
    over inflate the value of China's engagement and mask the true
    costs that various countries face.
        A recent report by Aid Data shows that African countries
    that borrow from the PRC have had to sign confidentiality
    clauses, set up offshore revenue accounts, and agree to many
    burdensome conditions.
        To put it indelicately, you might say China sometimes acts
    like a loan shark rather than a true partner of various
    countries. This is all the more apparent now as countries
    struggle to recover from the COVID-19 pandemic, and Communist
    China continues to balk at participating fully in debt relief
    measures.
        Now with that said, I do not doubt that PRC resources can
    do some good and are doing some good in the region. So I would
    just like to hear from our witnesses what your assessment is of
    how, on balance, the effect of Chinese official lending in the
    region is impacting the region and actually promoting
    development and sustainable infrastructure.
        If you can touch on how countries are responding to Chinese
    assistance now that some of the true costs of these
    arrangements are coming to light.
        I would appreciate it. Thank you.
        Ms. Hruby. I am happy to start. I would think this speaks
    to another question we had earlier about infrastructure, and
    the need that is dire on the continent to fill the
    infrastructure financing gap.
        Many African countries are looking at financing solutions
    from China because they have not many other options that make
    sense in a political timeline that you all understand and we
    understand here in Washington.
        You get elected, you need to bring power and roads and rail
    to the people and you do not have time to wait 8 years for
    long-term processes by multinational institutions.
        So China brings a fast solution to that. African partners
    are not naive in that process. They understand that there are
    tradeoffs to be made, and often they come to that because there
    are not many alternatives.
        You had asked earlier, Senator, where are American
    companies on infrastructure, and I think outside of the digital
    space most of them are missing. They are not there, right.
        If you look at the largest EPCs, engineering, procurement,
    and construction companies, in the world, of the top 10, seven
    are Chinese. There are the Bechtels every once in a while.
    There are a few, but we are not rapidly looking for these type
    of opportunities to build transport infrastructure on the
    continent.
        I think we have to look at areas where we are. Look at what
    Google and Facebook are building when it comes to undersea
    broadband cables. Look at the potential the transformative
    potential of SpaceX's Starlink, which could do last-mile
    internet at a way that completely leaps over the Huawei and
    ZTE-built 2G, 3G infrastructure. It is going to be direct from
    satellite.
        I think we have to look at those opportunities. I think to
    the senator's question about an assessment, an honest
    assessment, listen, those roads that are built by Chinese
    companies sometimes they carry Coca Cola and sometimes they
    carry PNG products, and they allow people to get to clinics
    faster and they allow people to go to school.
        So those roads and transport infrastructure has a positive
    impact. The question is, is the debt worth it? Is the debt
    worth it at the terms that it is being given, and is it being
    used to actually be efficient in terms of generating growth?
        Debt is not a problem in and of itself. Bad debt is taken
    on when you cannot afford it and when it is used for the wrong
    ways. I think we have to break down the issue of indebtedness
    in African markets. Many, many African countries are not even
    at their limits in terms of the GDP debt ratio.
        We are talking about specific countries. Zambia is,
    obviously, one where indebtedness is an issue. Not all African
    countries are in that boat.
        I think we always have to be aware of averages, right? The
    average African country is the size of Montana. But talking
    about it that way does not make sense when you have a Nigeria
    that is 200 million person versus a Namibia, which is 2
    million, right.
        Averages are a challenge and regional kind of
    generalizations can be a challenge as well. So I think the
    Chinese footprint in African markets when it comes to
    infrastructure is a mixed bag.
        It has gotten better over time. You do not see the crazy
    projects that you saw of the kind of white elephant in the
    stadiums that we saw 10, 15 years ago. It has made a march
    towards the market. So I will stop there.
        Senator Young. Could I top off with you, briefly? I am
    grateful for your response there, for your fulsome response.
        Do we see multinationals--the IMF comes to mind, maybe the
    World Bank--bringing more transparency to the terms or
    encouraging these countries to learn from lessons that the
    multinational institutions have learned?
        I am not suggesting that all the countries or leaders are
    unsophisticated, but sometimes they are new to these
    arrangements.
        So have multinational institutions been helpful in
    improving the terms that we are seeing across the continent of
    Africa as it relates to infrastructure investment from
    Communist China?
        Ms. Hruby. Those institutions, certainly, bring with them
    high levels of ESG standards. So environmental, social,
    governmental, community engagement, conversations need to be
    had to ensure that an infrastructure project has long-term
    sustainability.
        Those processes have a downside. We understand that. The
    more you inject consultation and transparency in something,
    sometimes it takes longer.
        You know how that is in the Senate. Think about when you
    try to go to a dinner and you have to show that it is less than
    $35 or whatever the limit is because there is rules and things
    take time.
        So when countries look for fast mobilization of resources
    when it comes to infrastructure, they look to entities and
    partners like China, like Turkey. China is not the only one
    that can move quickly on infrastructure.
        So I do think it is a situation whereby they do bring
    higher standards. Sometimes those standards take longer to
    implement the projects.
        Senator Young. Thank you. Anyone else, if I have remaining
    time? I think there is 1 minute left.
        Senator Van Hollen. Yes, please.
        Senator Young. I will just ask a related question. What has
    been the impact of the G-20 debt service suspension initiative
    and the common framework in terms of promoting sustainable
    investment and economic recovery in Africa, and what are the
    consequences of China not participating fully in these
    initiatives?
        Ms. Liser. I wanted to actually just add two quick points
    on your previous question, Senator.
        Senator Young. Please.
        Ms. Liser. One of them is on the fact that a lot of people,
    including in Africa, do not often give the U.S. credit for what
    we are doing in infrastructure through the Millennium Challenge
    Corporation.
        We have invested, I think it is over $11 billion in
    infrastructure, in ports and roads, in energy production on the
    continent, and we have the highest standards for it.
        I serve on the MCC Advisory Committee, and so African
    countries, when they qualify, they do the right things, they
    will have all the transparency criteria that are there, and I
    think that one of the things we need to do more of is to
    encourage Africans to meet the MCC criteria so that this
    infrastructure gap that they have can be met with U.S. dollars
    and U.S. companies that can provide that infrastructure.
        I think the other point is that in the past, the Africans
    would be pushed and urged by international institutions to take
    the lowest priced bids. That has now shifted.
        There are new rules in place which talk about dollar for
    value and lifecycle cost, where just because somebody gives an
    offer and a bid that is the cheapest does not really mean that
    it is the best for you.
        Maybe you get that road and 3 years later it has fallen
    apart, and there has been some experiences of that in Africa.
        So if you get quality of roads and airports and others that
    are built, that is critical.
        The last point I will make is that, and Aubrey touched on
    this, our companies are probably far more competitive in
    providing the engineering services and the high technologies,
    the GPS, and so forth, that are needed at airports, the kinds
    of products that should be used when you are building roads in
    Africa.
        We do that better. We do not actually, though, construct
    the roads.
        So I would just say that we need to, again, lean to our own
    strengths. Our companies are strong. Then we need to make sure
    that African countries know that they have the room to choose
    bids that are not the least expensive, the cheapest ones.
        Senator Young. Thank you.
        Dr. Signe. Thank you very much for the extremely important
    question. I will try to address both.
        First, debt is not the problem. What is important is
    whether we have a productive use of resources (debt) or not,
    and I think that is where we have some challenges.
        The second point is also the question of transparency. One
    of the challenges with some partners is the lack of
    transparency in large infrastructure deals, where when engaging
    with companies, especially from the U.S. and many of the
    European companies, we have more transparency.
        Now, what do Africans think? At least with many engagement,
    including at the head of state level, there is an
    infrastructure gap and many Africans leaders are willing to
    work with any of the partners who could help in bridging that
    gap.
        I think that is a consideration for the U.S. in the
    strategy for investment engagement with Africa to take into
    consideration the fact that Africans leaders in the private
    sector really prefer working with the U.S. when possible, as
    shown by Afrobarometer surveys, and also African citizens
    prefer, for example, 7 out of 10 Africans prefer democratic and
    accountable governance, among others.
        Those are values and areas of strength in the United
    States. Now when it comes to investing in infrastructure, it is
    important to simplify processes, so that the U.S. could act
    with the level of agility and of speed that we see in some of
    the emerging countries or some of the competitors.
        If processes cannot be simplified or if the level of
    agility remains asymmetric, I think that partnering with other
    players will be critical.
        It is extremely important to have the U.S. engage because
    when the U.S. is engaged we have better quality, we have more
    accountability, and sustainable development will also follow.
        Thank you.
        Senator Van Hollen. Thank you, Senator Young.
        Just to follow up, Dr. Signe, because you have written
    previously that attention to African preferences and policy
    priorities should be of heightened attention if the United
    States is serious about successfully countering the $10 billion
    Chinese soft power initiative and better competing with other
    global players.
        Is that--your response to the last question seemed to sort
    of flesh out that idea. Do you want to add anything else to
    what you meant in this statement?
        Dr. Signe. Absolutely. I mentioned some of these elements
    when you went to vote.
        So very simply, first, African citizens prefer the U.S.
    model of development over the Chinese one and over the European
    ones as well. So that is the first element.
        Second, African citizens prefer deep democracy, accountable
    governance over other forms of governance. So those are clear
    areas of strong competitive advantage of alignment with the
    U.S.
        So African citizens also want their governments to address
    some priorities, questions related to unemployment, to
    infrastructure, to education, among other.
        Those are also, especially on the digital sphere but also
    in terms of education, those are areas where the U.S. is
    leading around the world.
        So we have this unique advantage that the U.S. has. On the
    African side, Africa is also offering with the African
    Continental Free Trade Area, the largest free trade area for a
    number of countries since the creation of the World Trade
    Organization, and the Secretary General, I think, intervened
    today during the event with the Corporate Council on Africa.
        So those are clear opportunities for the U.S. to engage
    with Africa at the continental level, at the national level, at
    the subregional level, and to have a conversation.
        I think the key words here are partnerships, conversation,
    and building on those to develop a strategy to capitalize on
    U.S.-Africa trade and investment and generate shared
    prosperity.
        Senator Van Hollen. Thank you. I just have one last
    question for you and the panel, because one of your
    recommendations is the United States should capitalize on the
    African diaspora which is representative and very active in the
    United States, including in my state of Maryland, and it is an
    incredibly dynamic community, and as you point out, also a huge
    opportunity for the United States to engage with Africa.
        The challenge is, how would you organize that? How would
    you actually provide a framework for input? The diaspora, of
    course, comes from many, many different countries.
        We have talked about different sectors. Do you have ideas,
    and then I just would ask the other two as well, on how the
    U.S. Government might want to frame that input.
        Dr. Signe. Thank you very much for the question.
    Definitely, the diaspora plays an incredibly important role
    building bridges, representing, facilitating transaction,
    technology transfer, also in public service.
        In fact, at the Brookings Institution we organized
    recently, and I think that was in partnership with USAID, we
    organized a convening with various members of the diaspora to
    discuss, engage, and strategize on how the diaspora could be
    better involved in the policymaking process, but also in
    investment and trade.
        I think one of the ways to create a diaspora commercial
    diplomacy is to have a council of the diaspora, to have
    specific tools including in terms of investment because the
    diaspora has been involved with many countries, mostly their
    countries of origin, but some of them are many generations--for
    many--after many generations.
        So it will really be important to create a space for
    conversation. So a conversation will really be important, to
    have a conversation with many representative of diaspora, the
    association, among other, to have a diaspora council and to
    have a very proactive commercial diplomacy or what I call
    diaspora commercial diplomacy to make sure that the U.S.
    capitalize on the assets, on the unique contributions that
    those members of the diaspora will provide.
        Some countries have even provided financial resources, in
    the case of Canada, for example, where they have specific funds
    where some member coming from the diaspora are also eligible to
    support their business operations, among other.
        We can have a broader framework, and the current
    Administration has also distinguished itself before the
    election by having a diaspora platform.
        I think that a diaspora policy can build on the diaspora
    platform, on the campaign diaspora platform. Of course,
    building and continuing the incredibly important bipartisan
    work on engagement that this subcommittee has been known for
    and for which we are very grateful. So showing an illustration
    on how politics could be done to serve the greater good.
        Senator Van Hollen. Do our other two witnesses have
    anything to quickly add to that before I turn it over to
    Senator Hagerty, who also has some additional questions?
        Ms. Hruby. Sure. I will jump in and be brief.
        Honestly, Senator, I do not think you are going to organize
    the diaspora into a way that is easy to engage with. My
    suggestion is, instead, on focusing on higher education. That
    is what brought a lot of the diaspora here. That is what keeps
    them here, and if you know that the African diaspora,
    particularly Nigerian diaspora, is one of the most highly
    educated diaspora groups in the United States.
        Today, if you look at African leaders, 20 percent of
    current African leaders, presidents and heads of state, studied
    in the United States. In 2015, we lost out that position of
    hosting the most English-speaking African students to China.
    Now they go there.
        So 25 years from now, where will they have studied? So I
    think it is very important to focus on education as one of the
    key areas in which to engage the diaspora, because many of them
    are organized. Every one of the business schools has an African
    kind of diaspora business club. There is ways to do it through
    education.
        Senator Van Hollen. Thank you.
        Ms. Liser. I would like to just add actually some specific
    things that I think can be done in terms of promoting U.S.
    diaspora trade with Africa.
        The Minority Business Development Agency has a way to reach
    small diaspora-owned businesses in the U.S. SBA has a program
    focused on Africa, and I think if you are looking to link the
    U.S. diaspora to the continent, you are looking at products
    that they import and export regularly.
        This is something that they do informally most of the time,
    and that one of the things that we can do is to try to support
    formalizing that kind of trade and engagement between small
    diaspora-owned, women-owned businesses here in the U.S. with
    women-owned businesses and small enterprises on the African
    side.
        I think that there is room for us to support those small
    businesses more. They are the ones who get the least amount of
    support in terms of our institutions like the Export-Import
    Bank, DFC, et cetera.
        I support fully what DFC and Export-Import Bank and others
    do. But these kinds of small companies, diaspora-owned
    businesses, do not get that kind of support.
        So we need to see how we can use the SBA and the Minority
    Business Development Agency to work on identifying those groups
    and helping them with trading with Africa.
        Senator Van Hollen. Well, thank you.
        I want to thank all of you for your testimony today. It is,
    obviously, a very broad and deep subject, and in a hearing even
    a few hours you only begin to scratch the surface.
        I think you gave us a lot of really good leads and I
    appreciate the specific recommendations that each of you have
    made and I know my colleagues do as well. If there are issues
    that you think sort of we glaringly left out, we welcome you to
    submit any follow-up testimony to the committee.
        I also, before closing, want to ask the consent of my
    colleagues to enter into the record two additional materials.
        The first is a report by the Labor Advisory Committee on
    trade negotiations and trade policy on a potential U.S.-Kenya
    trade agreement.
        The second is a letter from the AFL-CIO director of
    government affairs addressing the topics of today's hearings,
    and I urge my colleagues to review those materials.

    [Editor's note.--The information referred to above can be found
    in the ``Additional Material Submitted for the Record'' section
    at the end of this hearing.]

        Senator Van Hollen. The record in this hearing will be open
    until the close of business Thursday.
        Without any other statements, this hearing is adjourned.
    Thank you all very much.
        [Whereupon, at 3:57 p.m., the hearing was adjourned.]

                                  ----------

                  Additional Material Submitted for the Record

    Report by the Labor Advisory Committee on Trade Negotiations and Trade
                      Policy on U.S.-Kenya Trade Agreement

    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
                                     ______

    Letter From AFL-CIO Director of Government Affairs Dated July 27, 2021

    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

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