[Congressional Record Volume 142, Number 139 (Tuesday, October 1, 1996)]
[Senate]
[Pages S12056-S12057]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                WHY AFRICA MATTERS: TRADE AND INVESTMENT

  Mrs. KASSEBAUM. Mr. President, I rise to finish a series of speeches 
about Africa and why Africa matters to the United States. I am sure 
many of us, over the recent years, have looked at the Continent of 
Africa with some despair, seeing one crisis after another occur; and 
seemingly, as one is resolved, there is only another nation that has a 
terrible tragedy occur, a coup and civil war ensues.
  I have spoken in a series of speeches about, one, our vulnerability 
in the United States to infectious diseases coming out of Africa, and 
addressed the many ways in which environmental crises in Africa can 
touch Americans right here at home. I have also addressed how 
international crime, terrorism, and narcotics trafficking in Africa 
affect our own sense of security here at home.
  I believe that Africa does matter. But I believe there is also a 
great deal of hope for the countries of Africa. I believe there are 
many positive things that we should consider, and should not forget. 
Today, I want to conclude with a topic that I believe many people have 
overlooked in relation to Africa: trade and investment.
  At the start of this Congress, I began the work of the Subcommittee 
on African Affairs in the Foreign Relations Committee by chairing a 
hearing on trade and investment in Africa. I think it is appropriate to 
conclude the work of this Congress on Africa issues by returning to 
this underemphasized area.
  The focus of our hearing 2 years ago was not only to examine the 
potential role of private sector development in Africa, but also to 
bring to life the benefits to the United States of increased trans-
Atlantic commercial ties.

[[Page S12057]]

  Over the past few years, investment and trade flows between the 
United States and Africa have increased substantially. Many companies, 
particularly communications, infrastructure and engineering firms, see 
Africa as a major growth market. In a time of reduced foreign aid, a 
focus on trade and investment must be a fundamental component of our 
overall foreign policy toward the continent.
  How many people know that there is more trade between the United 
States and the countries of Africa than between the United States and 
the states of the former Soviet Union? One of the best-kept secrets, I 
think, about U.S. relations with Africa is the tremendous amount of 
trade and potential trade also that occurs between our country and the 
African Continent.
  In 1993, U.S. exports of goods and services to sub-Sahara Africa 
totaled nearly $4.8 billion. This is 20 percent greater than exports to 
the Commonwealth of Independent States of the former Soviet Union. By 
some estimates, every extra $1 billion in American exports to Africa 
adds some 19,000 new jobs in the United States. Exports to southern 
Africa alone are responsible for an estimated 60,000 jobs in this 
country.
  Over the past 50 years, the African Continent has undergone 
tremendous change, as African nations have wrestled with 
decolonization, independence and, for some, democratization. Africa has 
many success stories to tell, and the continent's tales of overcome 
hardships are admirable, indeed. But these stories of progress rarely 
make headlines. More often, the news tells of the political problems 
that remain, of political and economic instability, waste, corruption, 
unsound economic policies. These problems are serious and, in many 
African countries, they have stifled investment and choked off growth 
and trade. But the truth is that a remarkable transformation is 
underway in Africa.
  Nearly two-thirds of African countries are now at some stage of 
democratic transition, compared with only four in 1989. More than 30 
elections have taken place in Africa over the past 6 years. Many 
African nations have taken difficult and courageous steps to keep 
budget deficits down, maintain realistic exchange rates and increase 
competition through domestic deregulation, trade reform and 
privatization of public enterprises, not easy tasks in very weak and 
struggling economies and countries that are trying to open a stable and 
free political society as well.
  The aim of these reforms has been to create an environment in which 
the private sector can act as the engine for development. We are 
beginning to see these efforts pay off. In a time of declining foreign 
aid, it is more than practical to emphasize the potential role of the 
private sector in the economic development of Africa. It just makes 
sense.
  Africans themselves want trade, not aid. They recognize that it is 
foreign trade and investment, not foreign aid, that provides the basis 
for sustained development, economic growth and new jobs, and trade with 
Africa does not benefit only Africans. As I pointed out, it helps us as 
well. New markets for American exports mean new jobs here at home.

  In the coming years, we should try to direct more of our foreign 
assistance toward building the foundations for long-term economic 
development in Africa. We should work in partnership with international 
financial institutions, of other donors and, of course, the African 
leaders to help meet the continent's critical infrastructure needs. I 
have always believed if the continent of Africa had a transportation 
system across the continent, whether railroads or roads, it would help 
immensely the trade between African nations themselves. Without an 
adequate network of roads, airports and telecommunications to knit the 
countries of Africa together, economic growth in Africa will face 
inherent structural limits.
  There are, of course, purposes for foreign assistance other than 
promoting economic growth. American assistance plays an important part 
in addressing pressing social and humanitarian needs in many African 
countries. But the reality is that present levels of aid in Africa 
cannot and will not continue indefinitely.
  Increased U.S. trade and investment in Africa making the countries of 
Africa full partners in the world's unprecedented economic prosperity 
provides the only real basis for future African economic self-
sufficiency. The many changes underway in Africa, though encouraging, 
are not enough. Countries that have begun economic reforms must do 
more, and countries that have not, must do so.
  Sub-Sahara Africa currently attracts less than 3 percent of the total 
foreign direct investment flowing to developing countries and economies 
in transition. Our policies toward Africa should encourage the 
necessary political and economic changes to provide a stable 
environment for sustained domestic economic development and foreign 
direct investment.
  Our voice carries far in Africa, and we can make a difference in 
ending conflicts, promoting open and accountable governments and 
fostering economic reform. For example, we should encourage the 
liberalization of land tenure laws that prohibit women from owning 
land. Women are the primary agricultural laborers in Africa, but they 
cannot attain the degree of financial control within the sector 
necessary to spur growth. The World Bank estimates that the value of 
women's agricultural output would increase by 22 percent if they had 
the same access as men to major factors of production.
  Another example of where we can make a difference is in lowering 
trade barriers. We should support the removal of barriers to trade 
among African countries and support efforts aimed at regional economic 
integration. At the same time, the United States must also lower its 
own trade barriers that unfairly discriminate against African goods. 
This means allowing imports, such as textiles, coffee, and sugar, into 
the United States in a fair and equitable manner. The laws of economics 
apply in Africa as they do elsewhere, and we should do all that we can 
to ensure that the established rules of free trade do as well.
  Mr. President, to conclude, I am optimistic about the economic 
potential of Africa. During my almost two decades of work on African 
issues in the Senate, I have observed firsthand the tremendous and 
commendable efforts made by the peoples of the many nations of the 
African Continent.

  At the same time, I also am sober about Africa's future and realize 
that without continued American engagement, Africa will not be joining 
the rest of us as we enter the next millennium.
  Leaving Africa behind would raise important threats to our people and 
our national interests. Emerging and proliferating infectious diseases 
do not respect international borders, nor do environmental crises on a 
large scale.
  Let me say, even more important to leaving Africa behind would be to 
lose a tremendous opportunity for all of us to benefit from the 
continent's rich heritage and potential. As we approach the beginning 
of the new millennium, America's future will be brighter if Africa's is 
as well.

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