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

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. More

Video Sudan School Becomes Target of Aerial Attacks

Dropout rate at an all-time high in South Kordofan state because many schools have been destroyed during 3-year civil war More

Tennessee Songbirds Fly Coop Long Before Tornadoes Arrive

Researchers say birds apparently alerted to danger by sounds at frequencies below range of human hearing 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.
US: Response to Sony Hack Will Be Proportionali
X
Aru Pande
December 19, 2014 1:45 AM
The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video US: Response to Sony Hack Will Be Proportional

The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8140
JPY
USD
118.81
GBP
USD
0.6402
CAD
USD
1.1597
INR
USD
63.066

Rates may not be current.