News / Economy

African Business Leaders Want More US Investments

African business leaders say the United States can do more to encourage investment on the continent. The Obama administration agrees. U.S. Secretary of State Hillary Clinton is expected to close a meeting in Zambia on U.S. trade preferences.

The African Growth and Opportunity Act has been the cornerstone of U.S. investment on the continent for more than ten years. But the vast majority of goods imported duty free are textile and oil products.

African producers meeting in Zambia want to diversify those exports and say the U.S. government can do more to help.

Chungu Mwila, the director for private sector development at the Common Market for Eastern and Southern Africa, says the trade preferences known as AGOA would be more valuable with more direct U.S. investment.

“If American companies were to invest in Africa and boost our production capacities, then, in our view, AGOA would become more meaningful,” said Mwila.

With most U.S. direct foreign investment still going to Latin America and Asia, Mwila says the Obama administration should do more to bring American business to Africa.

“I think there is a lot more that the U.S., being the strongest economy in the world, can do by assisting in capacity building of our industries, by ensuring that some of the American companies come and look around. After all, Africa is no longer such a risk place,” said Mwila.

The Obama administration agrees and is asking Congress to extend AGOA trade preferences for another ten years. U.S. Assistant Secretary of State for African Affairs Johnnie Carson says there should be greater tax incentives for U.S. earnings from AGOA investments.

“AGOA already provides substantial tariff savings for U.S. companies importing eligible products from Africa, but there are no other types of tax incentives provided under the legislation," he said. "We recommend that the U.S. government support an effort to eliminate the U.S. tax on repatriated revenues from American companies that invest in factories in Africa that produce AGOA-eligible products.”

Carson says he is encouraged by Africa's progress, but the continent remains economically challenged and continues to need programs such as AGOA to provide incentives for greater growth.

“While AGOA has achieved a certain amount of success, it has not solved Africa's economic, financial, and commercial challenges, and the region has not experienced the fundamental economic transformation that we seek for Africa as a whole," he said. "Africa continues to struggle to compete in an increasingly competitive global economy.”

Carson says the Obama administration wants U.S. lawmakers to extend beyond next year a provision allowing AGOA-eligible nations to source raw textile materials from third countries.

Mwila says that extension, and the renewal of AGOA as a whole, will bring more business to a continent that is making itself more attractive to investors.

“We have very liberal economic regimes," said Mwila. "Our macro-economic fundamentals are being put in place. For example, the inflation rates have come down. The exchange rates are stabilizing. And the economic growth rate is one of the highest globally, around five or six percent. You don't even get that in the U.S.”

U.S. Secretary of State Hillary Clinton helps close this AGOA forum Friday before meeting with Zambian President Rupiah Banda.

You May Like

Reports of Mass Murder on Mediterranean Smuggler’s Boat

Boat sailed from Libya with 750 migrants aboard and arrived in Italy with 569 More

Video New Thailand Hotline Targets Misbehaving Monks

Officials say move aims to restore country’s image of Buddhism, tarnished by recent high profile scandals such as opulent lifestyle, drug and alcohol abuse, as well as child sex abuse More

Study: Dust from Sahara Helped Form Bahama Islands

What does the Sahara have in common with a Caribbean island? Quite a lot, researchers say More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train in Underwater Labi
X
George Putic
July 25, 2014 7:25 PM
In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Not Even Monks Spared From Thailand’s Junta-Backed Morality Push

With Thailand’s military government firmly in control after May’s bloodless coup, authorities are carrying out plans they say are aimed at restoring discipline, morality and patriotism to all Thais. The measures include a crackdown on illegal gambling, education reforms to promote students’ moral development, and a new 24-hour phone hotline for citizens to report misbehaving monks. Steve Sandford reports from Bangkok.
Video

Video Virtual Program Teaches Farming Skills

In a fast-changing world beset by unpredictable climate conditions, farmers cannot afford to ignore new technology. Researchers in Australia are developing an online virtual world program to share information about climate change and more sustainable farming techniques for sugar cane growers. As VOA's Zlatica Hoke reports, the idea is to create a wider support network for farmers.
Video

Video Airline Expert: Missile will Show Signature on Debris

The debris field from Malaysia Airlines Flight 17 is spread over a 21-kilometer radius in eastern Ukraine. It is expected to take investigators months to sort through the airplane pieces to learn about the missile that brought down the jetliner and who fired it. VOAs Carolyn Presutti explains how this work will be done.
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.