TRAVEL: AFRICA TOURISM SECTOR RECOVERY FROM EBOLA
FREE ISSUE | VOL 1. ISSUE 3. | DECEMBER 2014
US embassy in Nairobi, Kenya
SECURITY
THE FUTURE OF U.S INVESTMENT IN AFRICA On this issue
P12
WORLD TRADE/ AFRICA
INVESTMENT
Canada strengthens its trade position in Africa P4
Business Africa: U.S persists and signs P16
BUSINESS AFRICA
How African countries deal with U.S sanctions on Russian. P18
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U.S ямБrms in Africa. How they made it
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CONTENTS
WORLD TRADE North America: Canada strengthens its position in Africa ............................................. 4 Europe: Trade deal EU and East Africa community ............ 4 Asia: China strikes a deal with Tanzania .......... 5
TALK NUMBERS Talk Number ................................................... 7
THEY SAID They Said ....................................................... 5
DIPLOMACY U.S. launched share project in Nigeria............. 6
ON THE RADAR Food and Drug Administration ........................ 6
REGULATION Regulation ...................................................... 7
SPOTLIGHT Business in Tunisia .......................................... 8
FOCUS Security: The future of U.S investment in Africa .... 12
LOGISTICS What A Transafrica Means For Africa............. 10
AIRLINES BIZ Africa airlines push for safety ......................... 11
INVESTMENT Business Africa: U.S persists and signs . 16
CHAMBER OF COMMERCE American business council (ABC) of Nigeria .. 17
INVESTMENT How African countries deal with U.S sanctions on Russia. ..................................... 18
CURRENCY SNAPSHOT African Currencies Versus U.S ...................... 15
TRAVEL/TOURISM:
Africa’s tourism
industry and its recovery from by Ebola ................................. 20
TRADE AGENDA/ANNOUNCEMENT Trade Agenda/Announcement ...................... 22
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WORLD TRADE AND AFRICA
NORTH AMERICA: CANADA STRENGTHENS ITS POSITION IN AFRICA
C
a na di a n t r a de f i na nce age nc y Export Development will open its first African office in Johannesburg in 2015. That was the announcement made byEd Fast, Canada Minister of International Trade, in Johannesburg, South Africa, last November 2014 The country is joining other nations like U.S, China, India, Brazil, Japan, Russia and several other European countries active on the continent in the last 5 years. In 2012,
BY GERALD NATHALIE
after signing some trade and investment initiatives with Ghana, Benin, Cameroon, Burkina Faso, Ivory Coast, Tunisia, Zambia and Senegal, Canada concluded an investment promotion deal with Tanzania, a country that will see increased Canadian investment in mining, oil ,and gas and transportation. Although Canada's bilateral trade with Africa jumped from an annual C$2bn at the beginning of the 21st century to C$13bn, the volume of trade between Canada and Africa remained steady in 2013 in comparison with China, India, Turkey and Brazil, who are enhancing their trade and technology relationships with Africa by 25-40% a year. Addressing to media briefing in Johannesburg,
Fast said Canada had chosen Johannesburg as the location for its first Export Development Canada (ECD) office because of the city's economic position as the financial gateway to southern Africa. He added that the ECD, through its Johannesburg-based team, would focus on connecting more Canadian businesses, particularly small and mediumsized enterprises (SMEs), to the growing supply chains within intra-African trade.
EUROPE: TRADE DEAL EU AND EAST AFRICA COMMUNITY BY VIRGINIE YVONNE n November 2014, the European Union (EU) finalized a trade deal with the East African Community (EAC).One Kenya, Rwanda, Tanzania and Uganda. All EAC members, with year earlier, precisely, in 2013, total trade between EU the exception of Kenya, are least developed countries according to and the East the UN classification.
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African Community amounted to €5.8 billion. EU imports from the EAC are worth €2.2 billion and consist mostly of coffee, cut flowers, tea, tobacco, fish and vegetables. Exports from the EU into the EAC are mainly machinery and mechanical appliances, equipment and parts, and vehicles and pharmaceutical products. After years of fierce negotiations between the two parties, negotiators from the EU and the East African Community (EAC) were finalized in November 2014. This new comprehensive Economic Partnership Agreement (EPA) between both regions will provide legal certainty for businesses and open a long-term perspective for free and unlimited access to the EU market for products from Burundi,
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The current development prospects indicate however that they may be successful in leaving this group in a relatively near future. Eurozone unemployment is horrendously high at over 19 million people, and a rate of 12%. In Spain and Greece unemployment is over 26% and youth unemployment over 50%. With 26 million people unemployed in the EU and an entire generation predicted to face the prospect of poverty in old age, it is clear that policies to create growth, jobs and hope in Europe will be through investment; investment that Africa needs. There is no doubt that this new deal between EU and the East African community will ease the EU debt and economic crisis.
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Asia: China Strikes A Deal With Tanzania
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BY MICHEL NGONO eijing's massive investment in Africa is unprecedented and
won’t stop; as the second largest economy continues to spread its investment in
Africa. With a population in the continent reaching 1.069 billion people in the year 2014, according to World population statistics, China continues bidding big in Africa. In October, Beijing announced that it plans to build a satellite city to ease congestion in the commercial capital of Dar es
Salaam. In addition, $85 million in grants and zero-interest loans came from China; Tanzania and Beijing has signed investment deals worth more than $1.7 billion. The money will be used to develop infrastructure, business cooper-ation, and power distribution. China's exports to Tanzania, which totaled $1.099 billion from 2012 to 2013, roughly doubled the $495.74 million worth of goods. The project, as well as a $500 million financial center
President Xi in Dar Es Salam, Tanzania Photo:AFP
that will, in addition, be built in Dar Es Salaam, are joint projects with the China Railway Jianchang Engineering Company Ltd (CRJE) and Tanzania's state-run National Housing Corporation. In recent years, Chinese companies have signed deals to build a rail network and a 532 km (330 mile) natural gas pipeline.
THEY SAID
PRESIDENT OBAMA “OUTLINED HIS VISION FOR HOW THE UNITED STATES AND AFRICA WOULD WORK TOGETHER TOWARD A MUTUALLYBENEFICIAL FUTURE”.
LUCIEN BRADET, PRESIDENT & CEO OF THE OTTAWABASED CANADIAN COUNCIL ON AFRICA.
GUIDO WESTERWELLE, GERMANY FOREIGN MINISTER
FRANCOIS HOLLANDE, FRENCH PRESIDENT
"WHAT WE ARE EXPERIENCING IN AFRICA IS POSSIBLY THE MOST FASCINATING SIGN OF OUR WORLD IN FLUX."
” AFRICA HAS CHANGED, SO AS FRANCE”
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"WHAT WE HAVE NEGLECTED IN THE PAST IS BEING PART OF THE ECONOMIC DEVELOPMENT OF AFRICA IN A SIZEABLE MANNER", "WE ARE NOT DOING A GOOD JOB"
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SHINZO ABE, JAPAN PRIME PRIME “OUR ECONOMIC FRONTIER NOW EXTENDS TO AFRICA. I WILL FIRMLY PUSH AHEAD WITH JAPAN’S PROACTIVE ECONOMIC DIPLOMACY, TAKING A PANORAMIC PERSPECTIVE OF THE WORLD MAP. 5
US-AFRICA DIPLOMACY
U.S. LAUNCHED SHARE PROJECT IN NIGERIA Two months ago, Maria Brewer, Deputy Chief of Mission at the U.S. Embassy in Abuja, launched the Support to Vulnerable Household Accelerated Revenue Earnings (SHARE) program during a ceremony in the state of Sokoto, Nigeria.
James F. Entwistle: U.S Ambassador to the Federal Republic of Nigeria since October 28, 2013.
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HARE program comes at the right time due to Nigeria low revenue per household that makes 70 % of economy. its At the ceremony, Mrs. Brewer said, “The benefits of successful farms reach far beyond the home. Successful farmers are the backbone of their communities, their country, this continent, and the world.” She noted that with sixty percent of the arable land on the planet, Africa has a tremendous opportunity to feed billions
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worldwide. SHARE seeks to improve local economic development and increase the incomes of 42,000 households in Sokoto, Kebbi, and the Federal Capital Territory. SHARE will increase agricultural productivity, elevate income and wealth, reduce poverty and improve nutrition habits in several communities for the benefit of women and children. It will also provide community members the skills to engage effectively in the local economy and break free from the cycle of poverty and malnutrition. Through
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President Obama’s Feed the Future Initiative, the United States is helping the Nigerian people enhance their farming methods, providing protection against soil erosion, and connecting small farmers to the marketplace. The five-year, $20 million SHARE project will be implemented by Catholic Relief Services Nigeria, Mercy Corps, Catholic Caritas Foundation of Nigeria, and the Federation of Muslim Women’s Associations of Nigeria. Source: Nigeria U.S embassy
E-ON THE RADAR
FOOD AND DRUG ADMINISTRATION BY JAMES WALKER
F
ormed in 1906, theFood and Drug Administration (FDA or USFDA) is a federal agency of the United States Department of Health and Human Services, a federal executive
department.The FDA is responsible for protect-ing and promoting public health through the regulation and supervi-sion of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs (medications), vaccines, biopharmaceuticals, blood transfu-sions, medical devices, electromagnetic radiation emitting devices (ERED), cosmetics, animal foods and feed, and
veterinary products. The FDA was empowered by Congress to enforce the Federal Food, Drug, and Cosmetic Act, which serves as the primary focus for the Agency. The agency also enforces other laws, notably Section 361 of the Public Health Service Act and associated regulations; many of which are not directly related to food
or drugs. These include regulating lasers, cellular phones, condoms, control of disease and products ranging from certain household pets to sperm donation for assisted reproduction. The FDA is led by the Commissioner of Food and Drugs, who is appointed by the President with the advice and consent of the Senate.
163 382 72
B-TALK NUMBERS
600 30.3
million people, 70% of Sub-Saharan Africa population is without electricity.
million passengers traffic Reaching
million km²
million: the size of Africa’s workforce
1.069
million: new wage-paying jobs that could be created by 2020
billion people in Africa in 2014
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SPOTLIGHT
Business In Tunisia According to the Central Bank of Tunisia, the export of manufactured goods, excluding food products grew at a 6.8% pace in 2013. Energy exports and minerals mainly crude oil and phosphate exhibit high year-to-year variance, depending on market conditions. BY MARIE LOUISE
Imports rose by 5.8% in 2013, a much slower pace of increase than was registered in 2012. Importation of raw materials and semi-ďŹ nished products lagged behind in 2013 as did indus-trial sector consumption of medium and high voltage electricity and capital goods imports dropped by 2% after seeing a 14% increase in 2012. 8
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Tunisia: State in North Africa: Tunisia population: 10.886500 millions Capital City: Tunis
A
s country opens to Europe, Tunisia offers investment incentives to all investment projects, except those relating to mining, energy and finance. The 1994 Investment Incentives Code promotes the country’s overall investment goals. Tunisia Foreign Investment Promotion Agency (FIPA) ESTIMATED THAT overall foreign investment flows for 2013 surpassed $1.2 billion, primarily in the form of foreign direct invest-ment (FDI) with less than 10% in portfolio. This investment stream is below 2012 levels although higher than the tumultuous revolution year of 2011. The energy sector took in over half of all FDI inflows, while industries and services ranked second and third. Foreign investment in agriculture was almost insignificant. The U.S International Trade Commission estimated that, in 2013, Tunisia was the United States’ 88th largest goods trading partner. Bilateral trade in goods reached $1.54 billion, with U.S exports to Tunisia totaling $804 million. Top U.S. export catego-ries were petroleum oils, petroleum coke, aircraft, soybeans, seeds, fruit and machinery. Major imports from Tunisia included olive oil, animal or vegetable fats, apparel, and electrical machinery. Tunisia has a diverse, market-oriented economy. According to the IMF, real GDP growth in 2013 was 2.6%, about 1% below growth in 2012. Real GDP growth for 2014 is expected to tick upward slightly. Unemployment
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remains high at over 15%, with the jobless heavily weighted towards youth and recent university graduates. With its eye on provid-ing employment opportunities, the Government Tunisia (GOT) is focused on bolstering the country’s export sector, foreign investment, and tourism. Key exports include mechanical and electrical industries, textiles and apparel, food products, petroleum products, chemicals, and phosphates. Almost 70% of Tunisia’s exports go to the European Union. About 6.3 million tourists arrived in the country in the 2013, a moder-ate increase following very soft years in 2011 and 2012. Much of this growth in tourism came from elsewhere in the Maghreb countries, particularly from Libyans. The European tourist market has yet to recover from pre-revolution levels. Inflation is expected to decelerate slightly in 2014. Tunisia registered a $674 million balance of payments deficit in 2013, against a surplus of $1.3 billion a year earlier. As a consequence, net foreign currency assets at the end of 2013 came to $7.1 billion, corresponding to 106 days of imports. For the FIPA, these capital inflows (excluding the energy sector) generated almost 10,000 new jobs in 2013. At over $123 million, France still ranked first in 2013 in terms of foreign investment in Tunisia. Germany came in second ($38.4 million) followed by Italy ($37.1 million).
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LOGISTICS
What A Transafrica Means For Africa BY MICHEL LEANDRIN As Logistics involves the functions of transportation, distribution, warehousing, and order processing, most African countries are lagging behind. If the problem is not propor-tional from one country to another, the reality remains the same. East, West, and Sub-Saharan Africa are plagued by poor and under-developed transportation infrastructure, limiting accessibility to consumers, hampering intra-regional trade and driving up import and export costs. That is where U.S companies need to focus as the continent is in transition. Southern Africa is the most developed region, from an infrastructure and intra-regional connectivity perspective. Perhaps most notable is the widespread use of rail as a key mode of transport for freight transportation in Southern Africa –an option which is currently heavily under-utilized in the rest
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of Sub-Saharan Africa. Frost & Sullivan’s analysis of infrastructure development in Sub-Saharan Africa reveals that US$174 billion (R1 800 billion) is being invested in transport and logistics infrastructure in the region. US$ 28 billion dollars is being invested in the development of major Trans-African road and rail corridors and deep-sea ports in order to rapidly improve trade volumes in sub-Saharan Africa. So the development of a TransAfrica will help speed up the trade between the West and East Africa. East and West Africa are regional growth ‘hotspots’ –from an economic perspective, but also due to the numerous multinational companies targeting these regions for expansion. Compared to Southern Africa, transport and logistics infrastructure in these regions is very poor. The infrastructure has been poorly maintained, resulting in
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dilapidated and over-congested roads, poorly functioning railway systems and inadequate airports. Regional connectivity is better in East Africa when compared to West Africa. Over the course of the last decades, the East African Community (EAC) has introduced regulations which seek to promote intra-regional trade. Unlike East Africa, the mineral wealth of West Africa has been known for decades – and has to a large extent driven an individual-country focus to infrastructure development, as countries have less need to trade with each other, and prefer to focus on moving resources to ports internally. As a result, intra-regional trade volumes remain low and the regional infrastructure network is poor. Experts, in the continent, agree that a transAfrica will be the ultimate solution as Africa economy continues to grow.
2014
AIRLINES BIZ
Africa Airlines Push For Safety BY MARYVONNE ISABELLE ince 9/11 and the attempt in 2010 of the bombing of a U.S airliner on Christmas day by a Nigerian, African countries stepPED up Airport security M easures. The African continent only accounts for 2.85 percent of the world total in passengers transported in spite of being the second largest and second most populous continent. Air transport in Africa has suffered decades of lack of investment, lack of vision and mismanagement leading to decaying infrastructure, outdated equipment and unsafe air transport system. As the continent continues its progress towards development and economic growth, Africa has seen strong growth in air traffic in recent years. To combat insecurity, several countries in Africa increased check points at airports following the Christmas Day bombing attempt on a U.S airliner by a Nigerian man. Other countries say they have no plans for upgrades, but are monitoring the situation. Reaction to the attempted bombing of a U.S. airliner on Christmas Day Nigerian student Umar Farouk Abdulmutallab departed from Accra and transited through Lagos and Amsterdam have set the alarm in the six African nations with direct air links
S
to the United States. Ghana has installed full-body scanners at Accra's international airport. Nigeria has also increase security with scanners at Lagos international airport. Over the past two decades or twenty years, major incidents involving airlines in Africa has been registered. In response, EU banned a third of all African airlines from operating in EU territory. In order to address this, a series of initiatives to address critical setbacks in the continent’s vast aviation sector till 2015 were high on the agenda of the extraordinary session of aviation safety in Africa organized by International Air Transportation Association in South Africa, May 2012. One of the main issues discussed was the impact of regulatory oversight on the training of flight crew and maintenance personnel, and the vital role of efforts to reduce the large number of African carriers currently blacklisted in the EU.However, regulations remained entangled in various stages of difficulty that inhibit further progress. Of the 24 countries represented under the blacklist of airlines not permitted to enter European airspace, a staggering 17 of those are African nations,which alone comprise 130 different air operators. Not only does
this designate the monopoly on international services from the region to foreign carriers, but the stigma of EU blacklisting to severely constrains further progress through prospective code share arrangements and third party collaboration. In May 2013, in order to address this, a series of initiatives to address criti-cal setbacks in the continent’s vast aviation sector till 2015 were high on the agenda of the extraordinary session of aviation safety in Africa. In July 2012, the safety plan on Africa aviation was enhanced by the commitment of the Director Generals of African Civil Aviation Authorities and by the Extraordinary Session of the Conference of Ministers of Transport held in Abuja, Nigeria. This commitment has been formalized in a document referred to as the ‘Abuja Declaration’. The plan is based on the implementation of an effective and transparent regulatory oversight system, runway safety measures, flight data analysis (FDA), Safety Management Systems (SMS), and all African operators to implement the IATA Operational Safety Audit (IOSA). These measures aim at putting safety at the center of majors Africa airports.
Boeing 787, in Pretoria Airport, South Africa
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FOCUS
THE FUTURE OF U.S INVESTMENT IN AFRICA With a population of over a billion in Africa, U.S continues to be the second trade partner of Africa behind China. But competition, terrorism, and the reality on the field are reshaping U. S investment in Africa. BY GISCARD AYISSI Speaking on the future of U.S. investment policy in Africa at the Heritage Foundation on November 2, 2011, African investment expert Peter C. Hansen, Principal Counsel at the Law Offices of Peter C. Hansen, LLC, a Washington firm, specializes in African investment law, explained that U.S. investors generally
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avoid Africa because the financial risks are simply too high. For him Africa has not been a priority for U.S. foreign and defense policy historically. He added “For most of the past century, most African nations have been either ruled by European colonial powers or subjugated by strongmen bent on
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self-enrichment and maintaining power.â€? Hansen allegations cannot be lightly taken, but one thing is certain, as Africa has prospered, American interests in the region have increased. By changing its investment dynamic in the continent the security issues are not yet settled, situation, which is giving a new prospect for the U.S investment in Africa. To some extent, the future of U.S investment in Africa, a continent of more than a billion inhabitants can be viewed with a lot of optimism. The African Growth and Opportunity Act (AGOA) signed into law on May 18, 2000, as Title 1 of The Trade and Development Act of 2000, an act offering tangible incentives for African countries to continue their efforts to open their economies and build free markets, has been eďŹƒcient to increase U.S investment in Africa so far. But as it appears, several dynamics are to be considered in order to predict what can constitute hurdles for the U.S trade strategies for Africa.
GROWING TERRORISM IN AFRICA If Al Shabbab in Somalia, a terrorist group linked to al-Qaeda, has been less active the past 5 years with the efforts of Somalia's established government and with great contribu-tion from the U.S, the few attacks they launched in Kenya past November 2014, with a bus shelling near Nairobi shows that terrorism in Africa is far to be cleared up. On thing is certain: Al-Qaeda group continues to spray its tentacles in Mali, Libya and in Algeria. Another terrorist group active in Africa is the nebulous terrorist group Boko Haram in Nigeria, which lingers to weaken the northern part of the country and neighboring Cameroon. With a secret agenda, Boko Haram is determined to defy Nigeria and the international community. After the adduction
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FOCUS
of girls and boys, suicide booming in villages of the Northern Nigeria. November 2014 was deadly. On the 25th, two female suicide bombers killed at least 44 in Maiduguri, Northeast Nigeria and on the 28th of the same month, at least 120 were killed in a mosque suicide bombing near Kanu. To increase their resources, Boko harem might be trying to copy the strategy of Islamic State of Syria (ISIS).They even claimed allegiance to ISIS ideology. However with a large oil reserve, a sector where the U.S giant Shell Company is present, Nigeria battle against Boko Haram is just beginning. May 17, 2014 in Paris, French President Francois Hollande invited the African head president to host a summit against the Boko Harem; Hollande is now a bigger terror threat-beyond Nigeria and even Africa. Strategies to fight Boko Haram have been laid down. But still the results are not palpable. As a matter of fact Boko Haram continues to hold keys parts of the
northern part of Nigeria. Containing this terrorist group in Nigeria continues to be a harsh and ongoing process; as long as no one can predict the end of this terrorists group. France effort to combat terrorism in Africa is not an isolate effort, as United States Africa Commands, (U.S. AFRICOM) has been established and effective in 2007 in the continent. A response for the U.S government to deal with security issues in Africa. U.S AFRICOM has been effective for the last decades. With African nations, African Union, and African regional security organization, U.S. AFRICOM is responsible for all U.S. Department of Defense operations, exercises, and security cooperation on the African continent. AFRICOM operational since Oct. 1, 2007, and has successfully assisted African governments to guarantee their inter-nal security and borders from terrorism. Apart from Nigeria, in the past 3 years, other parts of the continent remain safe besides some sporadic uprising due to political instability.
COMPETITION FROM ASIA Africa's relationship with the rest of the World has shift from help to partnership. China is the country that quickly integrates this strategy while dealing with Africa. Beijing has poured billions of investment to Africa. This move from China has changed all U.S investment calculation in the continent. France president in a speech given last month in France acknowledged that “Africa has changed,and so do France. “ China’s Premier Li Keqiang toured Africa for the first time since he took office in 2013. Li visited Ethiopia, Nigeria, Angola, and Kenya, meeting with numerous heads of state to discuss the developing relationship between China and Africa. According to Li, between 2014 and 2020, trade between China and Africa will double, and
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Chinese outward foreign direct investment (OFDI) stock (the total accumulated value of assets) to the continent will quadruple to $100 billion. This year, China has surpassed the United States and Europe as Africa's largest trading partner. Bilateral trade was around eleven billion US dollars in 2000 and reached 160 billion dollars in 2011. Mid-November, Jack Lew, U.S Treasury Department made a trade tour of Africa. He went in Egypt and Tanzania. In an interview granted to BBC at that occasion, he said what he worried the most was the sustainability of U.S investment in the continent. However, he added. The goal for the U.S was to be Africa best partner. U.S Africa Leaders Summit held in Washington last August, 2014, under the theme "Investing in the Next Generation “has led down the strategic of U.S investment in Africa. Apart from China, other countries like Canada, India, Brazil, Japan, Russian and the European Union block are in Africa for the same purpose. With this compe-tition, U.S long term vision will be making the difference.
international trade experts on the continent, it is a dichotomy and disadvantageous at certain points for U.S firms competing with other players, in an environment where some dominos are already set up. For others, the act is justified. As Africa grows, there is an impera-tive to establish a good macroeconomic foundation because there is nowhere in the world that corruption has developed a country. After launching AGOA fourteen years ago, U.S continues to initiate several charming trade campaign in the continent. By understanding the dynamic of the trade taking place now in Africa, U.S will adapt to the new challenges. It takes only the right choice of path to get there. U.S. investors could blaze this path with enormous success, and without contentious trade distortions or threats to U.S. jobs. Getting them to do so requires only that the U.S. government make Africa legally safer for U.S. private investment initiatives.
CORRUPTION
How to deal with corruption in Africa? That is the growing concern of the U.S. If some Chinese firms have been accused by some econo-mists in Africa of being very open to any bribes and corruption with some Africans officials, the U.S, on its side, wants to play a fair game in contracts negotiation in Africa. That is the goal and the aim of the Foreign Corrupt Practices Act of 1977 (FCPA), a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials. Is this law playing against U.S interests in Africa, where other countries are not willing to play by the same rules? For some U.S AFRICA TRADE
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INVESTMENT
Business With Africa, U.S Persists And Signs U.S Secretary of Commerce Penny Pritzker traveled to Atlanta, Georgia, this mi-November to emphasize the importance of helping U.S companies launch and increase their business in Africa at the “Discover Global Markets: Sub-Saharan Africa” Conference. BY GISCARD AYISSI
T
he event brought together U.S. government officials, visiting U.S commercial diplomats posted at embassies throughout Sub-Saharan Africa, international business leaders, trade finance experts, and others to help companies identify and develop trade and investment opportunities on the continent. Secretary Pritzker reiterated America’s commitment to solving the Ebola crisis, while emphasizing that fears about the virus should not get in the way of the facts on the ground in Africa. She added that Ebola was confined to just three countries with a total population of roughly 21 million, while the entire African continent is home to 1.1 billion. For Pritzker, the world public health apparatus is actively engaged, and doctors, nurses, and medical workers are using the proper proto-cols to treat patients and slow the number of new cases. Efforts to eliminate the virus are starting to turn the corner, and growth of the disease is slowing in Liberia. Despite the challenges presented by Ebola, Africa presents tremendous long-term growth opportunities, and both the U.S government and the U.S private sector are committed to deepening economic and commercial engagement on the continent. Africa is home to six of the ten fastest-growing
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Photo/D.O.C President Obama with Secretary Pritzker, mayor Bloomberg
economies in the world – Chad, Congo, the Ivory Coast, Mozambique, Ethiopia, and Sierra Leone. Real income has increased more than 30 percent, reversing two decades of decline, and GDP is expected to rise 6 percent each year over the next decade. By 2040, Africa will boast a larger workforce than either India or China. The Discover Global Markets Forum served to increase economic and commercial engagement in Africa by helping companies launch or increase their business on
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the continent. The event also built on the success of the first-ever U.S Africa Business Forum, which the Department of Commerce co-hosted in August. This F orum b rought together hundreds of American and African chief executive officers with nearly every African head of state to spur more trade and investment between the United States and Africa. At this Forum, U.S firms announced more than $14 billion worth of investments throughout the continent. Source Department of Commerce
CHAMBER OF COMMERCE
American Business Council (ABC) Of Nigeria
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t a general Meeting of U.S companies doing business in Nigeria in May 2005, the need for an American Business Council (ABC) WAS UNANIMOUSLY ENDORSED like a "think tank". For members, ABC focus on policy issues and
practical implementation steps in support of Nigerian public and private sector leadership as well as ongoing reform initia-tives in the country. It is designed to bring ABC's Nigerian based resources combined with the U.S support, to bear on selected issues and reform initiatives that show potential for WIN/ WIN results in Nigeria's quest for stable economic devel-opment. Furthermore, ABC envisioned to make a significant impact on the investment
environment and Nigeria's future economic development. The ABC, which is also an affiliate of the U.S Chamber of Commerce, was incorporated by the Nigerian Corporate Affairs Commission in February 2007 as a non-profit making company limited by guarantee. It objectives are to promote the development of commerce and investments between the United States of America and the Federal Republic of Nigeria, to provide a forum in which American business executives in Nigeria and other business executives with American interests may identify, discuss, and pursue common interests affecting their activities. ABC is the liaison with the Chamber of Commerce of the United States and other
chambers of commerce and institutions pursuing similar objects and advocates the views of the American business community in Nigeria to public and private interests in the United States and Nigeria. ABC goals are to create awareness of Nigeria's business and investment opportunities in the U.S and among the American business community in Nigeria, and to develop program for capacity building and human capital development in Nigeria. ABC focuses on pilot projects such as infrastructure-power, transportation, seaports, roads and railways. Source ABC
BUSINESS PRESS RELEASE
U.S. Secretary Of Commerce Appoints Advisory Council to Advance President's Business Priorities For Africa
U
.S. Secretary of Commerce Penny Pritzker today announced the appointment of 15 private sector leaders to the newly established President’s Advisory Council on Doing Business in Africa (PAC-DBIA). PAC-DBIA members – representing small, medium, and large companies from a variety of industry sectors – were selected to advise the President, through the Secretary of Commerce, on strengthening commercial engagement between the United States and Africa. “U.S Government and private sector leaders see tremendous opportunity in Africa, and they want to seize it,” said U.S. Secretary of Commerce Penny Pritzker. “Africa is home to six of the 10 fastest-growing economies in the world, and the demand for U.S. goods and services on the continent is high. The President’s Advisory Council will be a critical part of our efforts to strengthen our trade and investment ties across Africa, so we can do more business together.”
U.S AFRICA TRADE
The diverse appointees of the President’s Advisory Council on Doing Business in Africa are: Walé Adeosun – Founder and Chief Investment Officer, Kuramo Capital Management Dominic Barton – Global Managing Director, McKinsey & Company J.P. Bilbrey – President and CEO, The Hershey Company Shelley Broader – President and CEO, Walmart EMEA Teresa Clarke – Chairman and CEO, Africa.com Melissa Cook – Founder and Managing Director, African Sunrise Partners Karen Daniel – Chief Financial Officer, Board Member, and Leader of Africa Growth Initiative, Black & Veatch Peter Grauer – Chairman, Bloomberg LP Jay Ireland – President and CEO, GE Africa Kevon Makell – President and CEO, SEWW Energy Edward Mathias – Managing Director, Carlyle Group Martin Richenhagen – Chairman, President, and CEO, AGCO David Storch – Chairman and CEO, AAR Corporation Dow Wilson – President and CEO, Varian Medical Systems Rahama Wright – Founder and Chief Executive Officer, Shea Yeleen
DECEMBER
2014
17
INVESTMENT
How African economy deals with U.S sanctions on Russia In October 2014, the United States reportedly warned Zimbabwe about its growing economic deals with Russia after Harare recently sealed an agreement with Moscow for a US$3billion platinum mine.
Z
BY GI imbabwe's Pen East Investments has teamed up with Afronet, a consortium of three Russian
pa rt n e r s , to for m G r e at D y k e Investments, which is developing the US$3 billion Darwendale platinum
project. At full development in 2024, the mine will produce 800,000oz platinum, pushing Zimbabwe's output over one million ounces, and creating 8,000 jobs. After a message of indignation by the Zimbabwe government, the project was put on hold. Same message was issued later to South Africa, and this time by the United Kingdom Prime Minister David Cameron, who rebuffed South Africa after Johannesburg announced it had entered into a $10 billion nuclear energy deal with Russia, ignoring US-EU sanctions against the country. To Cameroon, Jacob Zuma, South African President, opposed by saying nobody is supposed to tell his country whom his friends are. During his presidency, Dmitri Medvedev has worked tenaciously to warm up and set a new area for African and Russian relations. During a visit to South Africa in 2012, President Medvedev made a signifi-cant statement in this respect: “Nowadays, political dialogue, business affairs and humanitarian interaction between Russia and African states assume a new evolu-tion; it allows us to look to the future with optimism”. Meanwhile, in 2012 the context was different. Crimea was not invaded and Russian had no crunch with Ukraine.
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Tension between the West, and Russian was not at time that predictable. Nevertheless, before what some international observers are calling the cold war resurrection,Russia has always been doing business in Africa Russian investment in the mining sector in Africa is considerable. More than 30Russian companies are already involved in developing Africannatural resources,and negotiating projects, and weapons sales. Most business transaction in Africa being done in Dollars. Some African countries’ currencies are tied to the U.S dollar, it is difficult for the countries in the continent to deal with the Russian rubble, a plunging currency in international trans-actions. Russian exports to Africa were $354 billion dollars in 2007. It was projected to reach $900 billion in 2020. The export of engineering products was intent to increase more than 6 times and reach $110-130 billion dollars in 2014. But the situation has different facets since May 2014.According to some economists in the continent, Africa economy are not really tied or exposed to Russia. Here it seems U.S AFRICA TRADE
DECEMBER
2014
as Russia needs Africa and Africa needs Russia. During the Cold War, Russia was scrambling to get allies in Africa in order to stem western influence. But after the cold war, the situation has changed. Russia needs Africa’s limitless resources to keep its economy growing and look for a strategic position to dilute western influence in Africa. But Russia's plan is facing fierce opposition from most of African countries whose economies are 80 percent tied to their former colonial power mostly members of the European Union. Meanwhile for now nobody can predict Russian's next plan. One thing is sure, U.S sanctions against Russia are reshaping the RussiaAfrica axe of coorperation. If in some African countries, Russian investment is going to pay the price of the sanctions, South Africa appears to be the gainer after Moscow announced that it's giving access to South African seafood exports to Russia. This opportunity will resume seafood exports to Russia for the first time in almost two decades.
CURRENCY SNAPSHOT
AFRICAN CURRENCIES VERSUS U.S Currency Name
Country / Entity
(sorted alphabetically)
Currency Code
In U.S Dollar ($ 1=)
(sorted alphabetically)
DZD
83.3083 DZD
MADAGASCAR
Currency Name
Currency Code
In U.S Dollar ($ 1=)
Malagasy Ariary
MGA
2,687.00 MGA
Country / Entity
ALGERIA
Algerian Dinar
ANGOLA
Kwanza
AOA
8.8454 AOA
MALAWI
Kwacha
MWK
433.824 MWK
ARUBA
Aruban Florin
AWG
1.79000 AWG
MALI
CFA Franc BCEAO †
XOF
515.066 XOF
BENIN
CFA Franc BCEAO †
XOF
515.066 XOF
MAURITANIA
Ouguiya
MRO
290.910 MRO
BOTSWANA
Pula
BWP
9.10750 BWP
MAURITIUS
Mauritius Rupee
MUR
31.4399 MUR
BURKINA FASO
CFA Franc BCEAO †
XOF
515.066 XOF
MOROCCO
8.71074 MAD
Burundi Franc
BIF
1,555.00 BIF
MOZAMBIQUE
MZN
31.2629 MZN
CABO VERDE
Cabo Verde Escudo
CVE
1,555.00 BIF
CAMEROON CENTRAL AFRICAN REPUBLIC CHAD
CFA Franc BEAC ‡
XAF
515.001 XAF
NAMIBIA
NAD
11.0345 NAD
CFA Franc BEAC ‡
XAF
515.001XAF
NIGER
Moroccan Dirham Mozambique Metical Namibia Dollar South African Rand (ZAR) also accepted CFA Franc BCEAO †
MAD
BURUNDI
XOF
515.066 XOF
CFA Franc BEAC ‡
XAF
515.001XAF
NIGERIA
Naira
NGN
165.540 NGN
COMOROS
Comoro Franc
KMF
386.332 KMF
RWF
686.000 RWF
CONGO CONGO, DEMOCRATIC REPUBLIC OF THE CÔTE D’IVOIRE
CFA Franc BEAC ‡
XAF
515.066 XOF
RWANDA Rwanda Franc SAO TOME AND Dobra PRINCIPE SENEGAL CFA Franc BCEAO †
STD
13.6858 SCR
XOF
515.066 XOF
SEYCHELLES
Seychelles Rupee
SCR
13.6858 SCR
SIERRA LEONE
Leone
SLL
4,348.39 SLL
515.066 XOF
SOMALIA
Somali Shilling
SOS
824.967 SOS
Rand South Sudanese Pound Sudanese Pound
ZAR
11.0351 ZAR
SSP
5.69630 SDG
SDG
5.69630 SDG
Lilangeni
SZL
11.0327 SZL
Tanzanian Shilling
TZS
1,695.49 TZS
Franc Congolais CFA Franc BCEAO †
CDF XOF
918.508 CDF
DJIBOUTI
Djibouti Franc
DJF
180.838 DJF
SOUTH AFRICA
EGYPT EQUATORIAL GUINEA ERITREA
Egyptian Pound
EGP
7.15243 EGP
SOUTH SUDAN
CFA Franc BEAC ‡
XAF
515.001XAF
SUDAN
Nakfa
ERN
10.4700 ERN
ETHIOPIA
Ethiopian Birr
ETB
20.0390 ETB
GABON
CFA Franc BEAC ‡
XAF
515.001XAF
GAMBIA
Dalasi
GMD
41.3753 GMD
SWAZILAND TANZANIA, UNITED REPUBLIC OF TOGO
CFA Franc BCEAO †
XOF
515.066 XOF
GHANA
Ghana Cedi
GHS
3.20749 GHS
TUNISIA
Tunisian Dinar
TND
1.79497 TND
GIBRALTAR
Gibraltar Pound
GIP
0.619938 GIP
UGANDA
Uganda Shilling
UGX
6,370.00 ZMK
GNF
0.619994 GIP
ZAMBIA
Kwacha
ZMK
6,370.00 ZMK
GWP
0.619996 GIP
ZIMBABWE
Zimbabwe Dollar
ZWD
361.900 ZWD
KES
89.0290 KES
LSL
11.0342 LSL
LRD
92.4999 LRD
LYD
1.30525 LYD
GUINEA
Guinea Franc Guinea-Bissau Peso GUINEA-BISSAU CFA Franc BCEAO also accepted KENYA Kenyan Shilling Loti LESOTHO South African Rand (ZAR) also accepted LIBERIA Liberian Dollar LIBYA
Libyan Dinar
U.S AFRICA TRADE
Source: International Standards Organization. This currency list table data was last updated Nov 2014
DECEMBER
2014
19
TRAVEL/TOURISM
Recovery from
E BO 20
U.S AFRICA TRADE
DECEMBER
2014
Africa's Tourism Industry
OL A
Since,THE Ebola outbreak in Guinea, Liberia, and Sierra Leone, Africa, a continent always viewed abroad as one country, has its destination hit hard. Tourism, in the 54 states continent, with thousands of local languages, represents a source of income and a neuralgic sector for many African countries.
BY GERALD NATHALIE
F
or instance, in 2013, the continent saw international arrivals increase 5% over 2012, the equivalent of 3 million more tourists, to reach 56 million based on data released by the World Tourism Organization (WTO) statistics in 2013. Though no figures
Images: 1.Lagos,Nigeria 2.Durban, South Africa 3.St Louis, Mauritius
have been released on the overall impact Ebola has had on African tourism, in the first half of 2014, the industry has been experiencing impressive growth rates. According to the WTO 2014 global travel report, Africa was due to see 4 to 6% tourism growth this year. But the Ebola outbreak resulted in a lot of cancellation in flight bookings. In Africa already, the panic pushed some states in the continent to close their borders to the traveler from East African countries affected by the Ebola virus. Botswana, for instance, reportedly suspended entry for travelers in mid-2014. In the last 6 months, the number of people visited Liberia, Guinea, Nigeria and Sierra has dropped dramatically. With few cases registered in mid-No-vember in Mali, there is a sense that the situation is U.S AFRICA TRADE
DECEMBER
far from over. In Tanzania, all major border posts have mandatory health screening in place, including all international airports. South Africa refuses to admit foreign citizens arriving from Ebola-affected countries in West Africa early end October, while South African citizens were allowed to re-enter, but only after being subject to strict screening. From Port Louis, Mauritius to Dakar in Senegal, almost 5000 miles distance apart and from Lagos, Nigeria to Durban, South Africa, a distance of more than 2000 miles, the waves of Ebola and its effect on tourism can be felt. A global trade association that promotes travel and tourism to the African tourism industry, Africa Travel Association (ATA) has witnessed economic losses that resulted from massive flight cancellations low or even long day of inexistence booking to Africa. The recovery in tourism industry will be slow. But with a vast tourism potential, African countries are laying down strategies to mitigate the loss and to let visitors understand that only three out of 54 states are concerned with Ebola. 2014
21
TRADE AGENDA
Afro Food 2015 MGTA SEMINAR: Harmonized System Product Classification and Workshop 12/11/2014 When: Dec 11, 2014. 8:00 a.m. to 4:15 p.m. Where: 3M Innovation Center. 2350 Minnehaha Ave E. Maplewood, Minnesota 55119 United States
Offshore West Africa 2015 When: January 20-22 2015 Where: LAGOS Nigeria Over 1,200 visitors regularly attend Oshore West Africa. The 19th annual conference and exhibition provide visitors with a wide range of market leading products and services. The exhibition will also present visitors with a whole host of networking opportunities
E-PPP - PUBLIC PRIVATE PARTNERSHIP AFRICA 2014 When: January 17-18, 2015 Where: Abidjan Ivory Coast Registration: districtabidjan.org Urban Equipment &Engineering Investors-African PPP (Public Private Partnership) Conference Trade Public once a year
Date: December 3-11, 2014 Where: Cairo, Egypt register: afrofood.net E-Mail: info@ afrofood.net. Particpants: 20,000 visitors are coming from Egypt, Tunisia, Morocco, Sudan, Algeria, South Africa, Kenya, Senegal, Tanzania, Kuwait, Saudi Arabia, Bahrain, Syria, Lebanon, Libya, Jordan, France, Germany, Greece, Italy and Turkey.
Select USA Investment Summit When: March 23-24, 2015 Where: at the Gaylord National Resort and Convention Center in National Harbor, Maryland, in the Washington, DC metro area.
Registration and general Summit help info@selectusasummit.com +1-800-315-4333 toll free (M-F 9:00 am - 6:00 pm EST) or +1-785-841-8194 M-F 9:00 am - 6:00 pm EST) +1-785-841-2668 fax
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U.S AFRICA TRADE
DECEMBER
2014
AFRICA IS THE NEW FRONTIER
54
states, 54 Investment Opportunities Join other U.S companies already established in Africa Let us be part of your success. Find better place to Export in Africa with us. www.gaeximinterantional.com
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