UNITED States Secretary of State Hillary Clinton says Africa is in a strong position to build on export earnings to the US, which have quadrupled from US$ 1 billion to US4 billion in the past decade.
Mrs Clinton also announced that the US will contribute US$2 million to the African Women Entrepreneurship Programme whose headquarters will
be in Lusaka.
Speaking when she closed the 10th African Growth and Opportunity Act (AGOA) Forum in Lusaka yesterday,
Mrs Clinton said when AGOA was established in 2000, the African climate was tough for expanding trade, but by working together, the African and American people are realising the AGOA dream.
She said there has been a rise in exports of clothing and crafts from Tanzania, cut flowers from Kenya and high-end leathers from Ethiopia as well as handbags.
“This growth in trade over the past decade is an accomplishment worth celebrating, both because of what it has meant for the people of Africa and because of what it says about the possibilities that lie ahead.
She said Africa could build on this progress because although it faces many challenges, the region is more stable, more democratic and more prosperous than a decade ago.
“Thanks to the hard work of the African people, productivity has been rising,” Mrs Clinton said.
She said consumer spending in Africa is projected to grow by almost US$600 million and Gross Domestic Product by US$1 trillion in less than a decade.
Mrs Clinton said some observers were referring to Africa as the home of emerging markets, which is good for growth.
However, she pointed out that African countries have not made the most of AGOA as they only exported a handful of 6,500 products which were eligible for duty-free shipping.
She said the Obama administration will work with Congress on a seamless renewal of AGOA beyond 2015 and that the involved parties must decide whether they are willing to do what is necessary to make
the most of its benefits.
Mrs Clinton said the US is a generous nation, and aid is about helping people in developing countries to improve their lives.
She said this is why the US has embarked on a new way of doing business through AGOA, based on partnership not patronage and supporting economic growth, as opposed to giving handouts.
Mrs Clinton said the US supports efforts to forge connections for business entrepreneurs, including international trade shows and bringing a delegation of private sector investors to the AGOA forum.
She said this is the reason she will be launching the Zambia-American Chamber of Commerce in Lusaka today and that efforts will be on youth and women entrepreneurs.
Mrs Clinton said it is important to tap the energy and ideas of young entrepreneurs on how to connect with American partners.
Mrs Clinton, who announced that the US would contribute US$ 2 million to AWEP, said the logic for helping women connect to the global economy was just compelling.
“No country can thrive when half its people are left behind. Evidence shows that small and medium-sized enterprises run by women are major drivers of economic growth,” Mrs Clinton said.
She said when a woman prospers, she re-invests her earnings in her family and the positive effects ripple throughout the entire community.
Mrs Clinton said the US would invite leading businesswomen from Africa to attend a leadership programme in that country.
She also prodded Africa to enhance economic co-operation, integration and trade within the continent, as the issues have been obstacles to
sustainable growth.
Mrs Clinton said there is less trade within sub-Saharan Africa than within any other region of the world.
She said apart from problems of infrastructure, trade leaders want to protect their home-grown industries, while government leaders of smaller countries were concerned that the larger ones will gain too
much influence.
Mrs Clinton also urged African leaders to address corruption because it also exacts a real toll on development.
Speaking earlier, Minister of Commerce, Trade and Industry Felix Mutati said AGOA must present an equal opportunity to benefit both Africans and Americans.
He said AGOA is not a talk show but a platform that brings opportunities for income generation among the people.
“If someone asks you that what AGOA is, you say AGOA is a pay cheque in people’s pockets. It’s not about conversations, it’s not about politicians. AGOA is about the people on the streets,” Mr Mutati said.
He said while the AGOA platform gives Africans access to the American market, the continent needs to maximise regional markets as well.
“A dollar is a dollar, it doesn’t matter where you get it from. If you can get it quicker from the Democratic Republic Congo than the US, then get it,” Mr Mutati stated.
He said the AGOA platform must assist in deepening regional integration.
Mr Mutati also urged local entrepreneurs to address product quality and consistency to ensure maximum benefits under AGOA.
[ Zambia Daily Mail ]