U.S.-Africa Business Summit

My friend Maurice Tempelsman, members of the CCA board, ministers, distinguished guests, ladies and gentlemen. As Assistant Secretary of State, I am very fortunate in having a boss who cares deeply about Africa and African issues. And that is why it was particularly difficult for Secretary Colin Powell not to be here with you. He sends his regrets and asked me to pass on his very best wishes.

I cannot tell you how much it means to me and my Africa Bureau team to be here before this remarkable collection of business, social, and government leaders. As someone who has been a member of the Corporate Council on Africa for many years, this is a homecoming for me.

Ten years ago, it would have been difficult to imagine this moment. There was no Corporate Council on Africa. There was no U.S.-Africa Business Summit. Combined two-way trade and investment was under $17 billion -- less than the sales of many CCA members. To corporate America, Africa was a very small footnote in the back pages of an annual report.

This past decade has set a whole new trend. Today, there is progress. And hope for the future, hope shared by the 197 businesses represented here today, drawn by the opportunities to be found in Africa. Since CCA was founded, trade and investment with Africa has nearly doubled.

Ladies and Gentlemen, the road ahead is long. But Africa is on its way.

Africa is on its way in large part because of the efforts of the private sector -- your efforts. This coming together of the American and the African private sectors is the theme of this conference. It is a central theme of the Bush Administration's Africa policy.

The new model we see for U.S.-African economic engagement is the "joint venture." JV's:

• between and among large corporations, mid-size businesses, and small entrepreneurs;
• between U.S., European, African, Asian, and Latin American businesses; and between the private sector and governments that facilitate -- not smother -- their activities.

This approach is not new to those of us who have done business in Africa. This approach implies enhanced business interaction with the local community to help improve the prospects for the new generation of Africans.

We are already seeing inspiring examples of these kinds of cooperative relationships:

One American mining company in West Africa has invested over $1.5 billion in the local economy, accounts for over 10 percent of government revenue, and has established and funded an independently-operated charitable trust fund.

Another U.S. company supports a program that trains entrepreneurs and small business people. This good corporate citizen also sponsors a mentoring program that develops business skills in high school students.

These Joint Ventures area web of relationships helping people capture the opportunities, markets, and resources that exist in Africa today.

Africa abounds with business opportunities. Sure, there is risk, but there is also reward. For every investment that doubles, there is one that goes belly up. That's what business is all about.

Africa is home to over 1,000 languages. But I want to speak a language we all understand -- ROI -- Return on Investment. The average ROI of U.S. investments in Africa is 31 percent. All of us who come from the private sector have to be impressed by that number! No other area in the world can claim such profit potential.

Ladies and Gentlemen, I am honored to be here, as Assistant Secretary of State for African Affairs, and I am honored to be in the company of so many African ministers, ambassadors, and government officials.

But this is not a conference for us -- government representatives. This is about you: African and American business risk-takers, meeting together over an early morning cup of coffee or sharing ideas in workshops.

It's about business people exchanging cards in the hallways and learning about opportunities from each other.

Of course, governments -- both African and American -- can, and do, have a role to play in supporting your efforts. When we in the Administration say our actions are guided by "five overarching policy goals," we are talking about policies that we can take together to improve the climate for doing business in and with Africa.

First, we seek to expand U.S. trade and investment with Africa to spur economic development and improve the well-being of Africans. The benefits of this goal are obvious -- more trade and more investment means higher incomes. Experience shows that developing countries with open trading systems see large drops in poverty.

Higher incomes bring many benefits -- longer lives, greater literacy, better health, better working conditions, a cleaner environment, and more stable, peaceful societies.

The United States has three economic elements that will assist Africa in its growth. It has financial capital that is foreign direct investment. It has technical and management assistance. And it has the world's largest marketplace.

The American marketplace is open and eager for business for African goods! This is the spirit behind AGOA -- the African Growth and Opportunity Act -- which rewards good government with trade benefits. The bottom line on AGOA is that over 1,800 products from Africa can now come into the U.S. duty-free. The message came through loud and clear at the AGOA Forum in Washington: the Bush Administration is committed to seeing Africa take its rightful place in the global marketplace.

Second, we are working, to increase democracy, good governance, and respect for the rule of law. Economic freedoms and political freedoms are inseparable.

Good governance means recognition of private property rights, deeds of trust, and the sanctity of contracts.

We are working with a number of African countries on privatization policies and licensing structures for both trade and investment. The goal is for African countries to create the legal and regulatory environment in which the market can be an engine for greater prosperity.

Third, we are working to combat the spread of HIV/AIDS and other infectious diseases. We are all familiar with the tragic toll AIDS has taken in Africa.

President Bush has made combating HIV/AIDS a priority for the United States. He has expanded our budget for fighting this scourge and set up a high-level task force that Secretary Powell and Health and Human Services Secretary Thompson co-chair.

I recognize that in the campaign against HIV/AIDS, I am preaching to the choir. The CCA has devoted time and resources to an AIDS Task Force, which has just released an excellent report.

There are a number of companies like Ford Motor that have been pioneers in working with local groups and governments to design, develop, and implement strategies to combat HIV/AIDS and address the needs of the African workforce.

Fourth, we are working to conserve Africa's environment. Business and economic growth are not sustainable when nature is at risk. People cannot prosper where fertile farmland has turned to desert.

We have recently completed a review of over 1,200 environmental initiatives underway in Africa to identify gaps or bottlenecks. We can help in areas such as biodiversity, range management, wildlife conservation and renewable energy.

Given the transborder nature of environmental problems, we are designing and implementing programs that promote regional cooperation in preserving the environment and helping African governments create transborder conservation areas.

Finally, the last priority is ending the wars. It is an absolute necessary, and you really can't pursue the other four without it.

We are working, and will continue to work with our African friends and the international community, to end these armed conflicts and develop tools to help prevent violence from erupting.

Many of the priorities I've described reflect the New Africa Initiative, an effort by African governments to combine pro-growth, good government, and enlightened social policies to improve the lives of Africans. We applaud this commitment by African governments to take responsibility for their future.

We in government can work toward these worthy aims, but you, the business people of Africa and America, will ultimately define Africa's economic future. Our challenge in government is to create the best environment for you to do your work. Your challenge is to turn opportunity into prosperity.

Before I close, I would like to take a moment to address the times in which we are living. The world changed on September 11. International business is always challenging. Doing deals across the long distances to Africa is tough, even in the best of times. Given the added pressures of terrorist threat, it is even more difficult.

As businessmen and women we calculate every type of risk. But ultimately we are driven by return on investment. And that bottom line potential for Africa is too great to ignore.

So, now is the time for practical people, business people, you, to capture the promise of Africa.