The Whitaker Group

By Rosa Whitaker on October 21, 2011 | Comments 0

Deployment of US Troops to Help Fight LRA — A Just Cause!

Originally published on AllAfrica.com – October 21, 2011

President Obama’s decision to deploy a small cadre of US troops to help Ugandan forces track down and destroy the Lord’s Resistance Army (LRA) is a step in the right direction. For too long, Joseph Kony and his cohorts have waged a ruthless campaign of murder, rape, mutilation and abduction against civilians, first in northern Uganda and now in South Sudan, the Democratic Republic of Congo and the Central African Republic.

While I’ve certainly had my reservations about this Administration’s Africa policy, I whole-heartedly support President Obama’s commitment to rooting out the LRA and its terror campaign.

By Rosa Whitaker on September 06, 2011 | Comments 0

Trade Talk: Killing African Growth with the Best of Intentions

Originally published on allAfrica.com – August 26, 2011

As Congress continues to drag its collective feet in passing three long-delayed Free Trade Agreements, as well as the long-overdue renewal of the Generalized System of Preferences (GSP), it is clear that international trade policy is one realm where numbers and politics rarely mix well. When adding the morally-loaded, ambiguous term “poverty reduction” to an already adversarial mix, the righteous drive to do good can sometimes blind us to faulty logic and oversimplification.

The ongoing conversation over extending Duty-Free Quota-Free (DFQF) benefits to all Least Developed Countries (LDCs) provides a good example of this predicament.

By twg on June 14, 2011 | Comments 0

Africa’s New Business Climate: An Interview with Rosa Whitaker

Rosa_GV Africa Article

As South Africa becomes the first African BRIC and CEOs plot new emerging market strategies for Sub-Saharan Africa, there is one business actor who already holds the credential of facilitating several billion dollars of trade and investment on the continent. That person is Rosa Whitaker, founder and CEO of The Whitaker Group. Rosa’s commitment to Africa began long before the recent spike of business interest…Global Vision had the opportunity to speak with Ms. Whitaker, tapping her unique perspective on African business issues.

Full article, as well as a profile of Africa.com CEO Teresa Clark, by Jake R. Bright can be found in the June-August 2011 edition of Global Vision.

By Rosa Whitaker on May 20, 2011 | Comments 0

Ghana and Uganda: a new vision of energy resource management

clip_image002 Originally published in FT Tilt
May 10, 2011

With Ghana now on line as an oil and gas producer and Uganda scheduled to begin commercial production in 2012, Africa has not only expanded its global strategic importance, it has also gained new leaders in the management of energy resources to enhance the continent’s development.

Both nations are committed to ensuring that revenues from their newfound oil wealth result in major development dividends – broad-based economic growth and social advances. They are also seeking to integrate their new oil and gas sectors into their countries’ overall power regimes to streamline policy coordination and investment opportunities, and to ensure better linkages that take advantage of the benefits of oil and gas while building a stronger foundation for public-private partnerships.

By admin on March 21, 2011 | Comments 0

Rosa Whitaker Honored with WoW Award

Washington, D.C. – March 21, 2011 WoW_2011

Rosa Whitaker was honored to have received Women of Wealth (WoW) Magazine’s “Award for Multilateral Trade Policy Initiatives for Africa” in recognition of her lifelong contributions to expanding U.S. trade with Africa and developing young female professionals. WoW, founded by Dr. Lei Lewis, takes aims at, “Changing the Face of Wealth through Mentoring, Empowerment and Philanthropy.” The award was presented at WoW’s 2011 Global Summit, held March 18, 2011, in Atlanta, Georgia.

By Rosa Whitaker on February 09, 2011 | Comments 1

South Africa Must Lobby Now for AGOA to Continue

AFRICA is in danger of losing its preferential trade access to the US. South Africa — the continent’s biggest non-oil beneficiary of the African Growth and Opportunity Act (Agoa) — should be alarmed and take the lead in advocating for Agoa’s survival. But in my conversations with South African business people, I detect little sense of urgency. Indeed, there is often an assumption that Agoa’s extension is a foregone conclusion.

Not so.

Ten years after Agoa was passed, opinion in US policy circles appears to be quietly coalescing around the idea that it has failed to deliver on its aim to grow Africa’s manufacturing sector. Just last month, Bruce Wharton, the US deputy assistant secretary of state for Africa, warned that while the Obama administration would like to see Agoa continue, “it’s going to take a concerted effort to persuade people in this country that Agoa remains a good investment for the US”.

Agoa’s expiration, along with eliminating the comparative advantage enjoyed by Africa’s nascent manufacturers, would deal a devastating blow to key South African manufacturing sectors, most notably the automotive sector, while setting back SA’s efforts to put its economy on a job-creating growth path.

In 2009, SA exported automotive and transportation equipment worth more than 1bn to the US under Agoa, and 2bn in 2008 before the full weight of the global recession was felt. One in four dollars SA earned through exports to the US was transportation related. Altogether, these exports contribute significantly to a sector that accounts for more than 10% of SA’s manufacturing base and provides jobs for about 200000 workers.

Between 2000 (the year Agoa was enacted) and 2006, the National Association of Automobile Manufacturers of SA estimated that industry giants such as Ford, General Motors, Toyota, Daimler and BMW quadrupled their investment in production and export infrastructure in SA from about 208m to 868m. More recently, Daimler announced it would invest a further 280m by 2014 in its East London plant to produce next- generation Mercedes Benz C-class vehicles for export to global markets, including the US.

To date, the Obama administration has shown only lukewarm support for Agoa. Indeed, it is the first administration since Agoa’s enactment not to offer any enhancements to the legislation. Instead, the idea gaining currency in Washington is a version of trade preference reform in which Agoa-like benefits are extended to all “least developed countries”, leaving Africa with no exclusive trade benefits and SA, with its middle-income status, completely out of the loop.

It is critical that Agoa stakeholders begin to frame the argument for the law’s extension beyond 2015 now. With a new Congress in Washington, led by a group potentially more open to conversations on African trade, Africa has a unique opportunity to reverse eroding confidence in Agoa’s value.

Most of this group was swept into office on an anti-big government platform. Agoa fits this mind-set. Trade, not aid, is a mantra that resonates in today’s economic landscape, particularly since it supports job growth in the US at a time when cutting unemployment at home is America’s top political and economic priority.

Further , this new Congress will be asked to decide the fate of the “third- country fabric provision”, which allows African apparel manufacturers to use non-African materials in clothing exports to the US. That provision is set to expire at the end of next year, and its extension — or lack thereof — will be an important bellwether of how committed Congress might be to extending the full legislation beyond 2015.

Until now, SA has been content to leave advocacy for Agoa largely to others. But today, at a time when Agoa’s value is under attack and its fate unresolved, there is no clear African leadership to fight for its preservation. If Agoa is to be saved, it needs a strong African champion, such as SA, which has the global presence to clearly and forcefully communicate Agoa’s importance as a central tool in the continent’s journey to prosperity.

Let South Africans not wait until three minutes to midnight to do so.

OP-ED Courtesy of Business Day, 04. February 2011
Link here to the original.

AGOA Leadership Summit places Africa back on the Congressional Agenda

WASHINGTON, D.C., – Over 100 stakeholders came together on Tuesday, October 05, 2011, to demonstrate bi-partisan and broad support for enhancing and extending the African Growth and Opportunity Act (AGOA). The main focus of the event was on AGOA’s 3rd Country Fabric provision, which is driving Africa’s apparel exports to the US.

Hosted by the AGOA Action Coalition, the “AGOA Leadership Summit: Partnering for Competitiveness and Growth” included leadership from the African Union, African Ministers of Trade and Industry, and African Ambassadors Corps, US Congressional representatives, Obama Administration officials and retail leaders. The Summit provided a platform for stakeholders to discuss the apparel sector’s potential to serve as a springboard for industrialization and competitiveness across Africa. In addition to reaffirming the participants’ commitment to AGOA’s 3rd Country Fabric provision, the event also served as an opportunity for African policy leaders to discuss their apparel development strategies with US retail leaders, policymakers, and other stakeholders promoting expanded trade with Africa.

As a result of AGOA, African exports to the US have more than tripled in value to $61.5 billion, while total trade between the US and Africa increased 37% between 2009 and 2010, faster than the 22% at which the US trade grew with the rest of the world. The key moving forward will be for AGOA’s stakeholders to draw on the AGOA Action Coalition’s experience in identifying meaningful legislative vehicles, resonant messages for AGOA’s advocacy, and its unique ability to transform allies into lasting champions.

“Step-by-step, provision-by-provision, we’re going to strengthen and enhance AGOA, working with the US Congress, industry, African stakeholders and with the Obama Administration,” AGOA Action Coalition co-chair and moderator, Rosa Whitaker, told the audience. She described the event as “just the beginning” in terms of advocacy for this round of AGOA’s renewal, with a formal kick-off event being planned in the future, covering other components of AGOA.

Presenters emphasized the shifting global economic landscape and the rise in commodity prices as factors that favor Africa’s overall competitiveness in textile production. Deputy Chairman of the African Union Erastus Mwencha, a long-time AGOA champion, noted that cotton prices in particular will help Africa become a more attractive target for US importers.

Assistant US Trade Representative (AUSTR) for Textiles Gail Strickler was joined by Assistant US Trade Representative for Africa Florizelle Liser in reaffirming the Administration’s commitment to AGOA. AUSTR Strickler, who is responsible for overseeing negotiations affecting textile and apparel products, noted that the co-location of resources like cotton and oil favor fabric production and suggested there was room for regional specialization and integration in Africa’s long-term apparel development strategies.

Representatives of the US retail sector also participated in the discussion. Julia Hughes, Executive Director of the US Association of Importers of Textiles and Apparel, reiterated the industry’s commitment to ensuring that the 3rd Country Fabric remains intact. Nate Herman, Vice President of the American Apparel and Footwear Association, pointed out that, under AGOA, product differentiation and value chain expansion is already taking place, pointing to an emergent footwear sector in Ethiopia, where low costs and access to local resources and knowledge have created dramatic growth.

Paul Ryberg, representing the African Cotton and Textile Industries Federation, noted that Africa’s apparel industry is “just turning the corner and starting to recover” after a protracted downturn, but that businesses currently sourcing require the certainty that only immediate extension can provide. “Now is not the time to pull the rug out from under Africa’s apparel industry,” he admonished. “Now is the time to renew the 3rd Country Fabric Provision.”

The AGOA Action Coalition leadership urged the audience to come together on a “Heart-to-Hill” initiative that will speak to both the moral and economic imperatives of supporting AGOA. Not only has AGOA had a demonstrable, lasting impact on African individuals and entrepreneurs, but it has also opened the door to a focused and successful Africa, according to Ghana’s Minister of Trade & Industry Hannah Tetteh, who underscored the need to build long-term partnerships with American business. Ensuring that AGOA remains strong will be of paramount importance: “Given the amount of work and effort that has gone into making AGOA’s success stories happen, it would be a shame to have it all come crashing down.”

For more information on the event or upcoming AGOA Action Coalition events, please contact Mr. Nathaniel Adams at 202.293.1453 or by email at nathaniel@thewhitakergroup.us.

October 07, 2011 | Rosa Whitaker | Comments 0

TWG Fast Facts: September 19 – 23, 2011

IMF estimates GDP growth forecast for Sub-Saharan Africa for this year at 5.2%
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Africa’s GDP advanced at a rate of 5.5% annually between 2000 and 2010, compared to a global average of 4.4%.
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Africa loses 2% of its GDP every year due to the effects of malaria.
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Since 2008, 11 malaria-endemic countries in Africa have been able to slash malaria cases by 50%.
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Malaria deaths in Rwanda dropped by 60% between 2005 and 2010.
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Communications is the fastest-growing sector in Tanzania, accounting for 20% of GDP in the country.
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South Africa’s economy created 7,000 jobs in the second quarter.
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The textile sub-sector is the 4^th largest in Kenya, accounting for 11% of the manufacturing sector. It employs over 60% of workers within the export processing zones.
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Norwegian company, EMGS wins US$5.5million contract to find oil offshore Ghana
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September 27, 2011 | twg | Comments 0

TWG Fast Facts: September 12 – 16, 2011

China is the largest funding nation for Africa’s hydropower sector, with US$9.3 billion to date.
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Africa accounts for 38% of the world cashew nut production; only 10% is processed on the continent.
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Rwanda provides HIV antiretroviral therapy to 93% of all people in need.
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Ghana imports approximately 200,000 tonnes of chicken per year, or approximately 2.7 million chickens per week.
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Kenyans living abroad sent home US$79.6 million in August; that’s 53% jump from the same period a year.
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Citadel Capital has mobilized US$70 million for railways rehabilitation in East Africa.
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According to the UN, agriculture accounts for 14% of greenhouse gas emissions, more than transportation’s 13% and close to industry’s 19%.
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The Central Bank of Kenya recorded a 70% increase in issuance of debit cards in June 2011.
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September 21, 2011 | twg | Comments 0

Event Invitation: RHB Africa Innovators, Visionaries and Policymakers Gather, September 21

WASHINGTON, D.C., September 20, 2011 – A distinguished array of actors at the forefront of Africa’s economic rise will gather on Wednesday, September 21, 2011, at the Constituency for Africa’s inaugural African Leadership Gala Awards Reception and Dinner. The dinner honors six exceptional leaders in the Africa arena – among them The Whitaker Group’s Rosa Whitaker, who will receive the “Outstanding Constituent for Africa Award.”

The event is a critical primer for the International Monetary Fund Fall Meetings (September 23 – 25) in Washington, where finance ministers and development experts tackle pressing global economic challenges. Under the theme of “Excellence in Leadership for a 21st Century Africa,” the gala will give stakeholders a unique opportunity to interact with the key officials, visionaries and innovators fueling African progress.

The event’s keynote speaker is Her Excellency Joyce Banda, Vice President of Malawi. The audience will also hear from the World Bank’s Vice President of the Africa Region, Obiageli K. Ezekwesili. A former Nigerian cabinet minister and co-founder of Transparency International, Ms. Ezekwesili has played a transformative role in fostering sustainable development in Africa. She will receive the “African Pioneer Award” for outstanding achievement in support of the advancement of strategic linkages with the African Diaspora.

Other honorees include:

Vincent O. Ebuh, Chairman of Petrolog International, who will be recognized for his outstanding private-sector leadership in Africa;
The Hon. Denis Sassou-Nguesso, Minister of Petroleum, Republic of Congo, who is being honored for leadership in advancing linkages with the African Diaspora;
Rosa Whitaker, President and CEO of The Whitaker Group, who will receive the “Outstanding Constituent for Africa Award” in recognition of her steadfast advocacy efforts on behalf of Africa;
Chief Michael Adenuga, who will be presented the “Lion of Africa” award; and,
The Chevron Corporation, which will honored for its leadership and commitment to meaningful corporate social responsibility in Africa.

The awards reception and dinner, to be held from 6:30 pm to 10:00 pm at the Westin Hotel (1400 M St, NW, Washington, DC), is the highlight of the 2011 Ronald H. Brown African Affairs Series, held annually in conjunction with the Congressional Black Caucus Annual Legislative Conference. Among those attending are high-level African government officials, members of the African diplomatic corps, members of the U.S. Congress, U.S. government officials, Congressional staffers, African entrepreneurs, and representatives from multilateral institutions, NGOs, civil society and the private sector.

For more information, or to RSVP, please contact David J. Saunders at 202.371.0588 or email at intern_cfa@yahoo.com.

September 20, 2011 | twg | Comments 0

TWG Fast Facts: September 5 – September 9, 2011

Namibia is home to one of Africa’s largest hybrid solar systems.
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Coca-Cola, Diageo and WaterHealth International launch innovative water partnership in Ghana.
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IBM sees promising investment opportunities in Ugandan economy.
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Anadarko Petroleum to begin oil exploration in the waters of the Ivory Coast later this year.
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Ghana: new petroleum exploration and production bill may require oil companies to obtain state’s approval for loans.
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World Bank in talks with China to promote the transfer of low-value manufacturing jobs Africa.
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Nigeria Central Bank chief sees China Yuan becoming reserve currency.
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Current demand for hotel rooms in and around Lagos, Nigeria, is expected to grow at an average of 15% per annum.
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Tourism revenues in Rwanda increased by 14% between 2009 and 2010.
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China invested US$26.7 million in Kenya’s economy in the first half of 2011, becoming the first source of foreign direct investment in the country.
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Imports to African countries surged by 53% to during the first half of 2011 over the same period last year.
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World Bank: agricultural productivity is one of the causes of the rebound in economic growth in Africa.
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World Economic Forum reveals Africa’s ten most competitive countries.
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September 14, 2011 | twg | Comments 0

TWG Fast Facts: August 29 – September 2, 2011

Samsung aims US$10 billion in revenue in Sub-Saharan Africa by 2015.
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IKEA’s US$62 million donation to the Horn of Africa through the UN is the largest private donation it has received since it was established in 1950.
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SADC, COMESA and EAC have 578 million consumers spanning 26 African countries and a combined GDP of US$853 billion.
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Thermal power accounts for 85% of Uganda’s power generation costs.
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Only 9% of Rwanda is electrified.
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Rwanda is the East African country that has improved its business regulatory environment the most over the past five years.
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Poor sanitation is the cause of death for 1.5 million under-five children globally each year.
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FDI in Ghana rose to about 50% in 2009, while they dropped by 29% in Nigeria.
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China’s trade with Africa is expected to hit the US$100 billion mark by 2015.
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September 07, 2011 | twg | Comments 0

TWG Fast Facts: August 22 – 26, 2011

IFC: only 5% of sub-Saharan Africa’s power production is generated by the private sector compared with 50% in Latin America.
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Around 60% of all African private equity funds are funded by development financial institutions.
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Africa accounts for less than 1% of the global manufacturing.
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INED: Africa to account for one quarter of humanity by 2050.
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Remittances from Ethiopian diaspora hit a record US$ 1.5 billion, that’s an 88% growth from the previous fiscal year.
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Burundi’s tax revenue rose 29% year-on-year thanks to an improving economy and efforts to fight tax evasion.
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Kenya: tourism revenues for the first six months up 32% more than the same period last year.
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Prior to the 2008 global recession, the non-oil exports to the US had grown by nearly 240% since AGOA’s passage.
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Nigeria’s domestic and foreign debts amount to $39.7 billion which is about 20% of country’s GDP.
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South Sudan’s GDP per capita in 2010 was estimated at US$1,546 million, twice that of Kenya.
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The volume of trade between China and Tanzania in 2010 was US$1.65 billion which increased by 40% compared with 2009.
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September 06, 2011 | twg | Comments 0

TWG Fast Facts: August 15 – 19, 2011

Intra-COMESA trade increased more than five times from US$3.1 billion in 2001 to US$17 billion in 2010.
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Tanzania’s proven gas reserves are 7.5 trillion cubic feet.
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Nigeria has proven natural gas reserves of 187 trillion cubic feet.
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Nigeria currently generates about 4,000 MW of power. That’s only 2% of the electricity needed for the entire population.
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Bank of Uganda estimates the country will save US$600 million per year in oil imports when it begins oil production next year.
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Kosmos Energy makes US$124 million in revenue from sale of Ghana crude.
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About 40% of the average income for most people in East Africa is spent on kerosene as a source of lighting.
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South Africa generates the equivalent of 95% of the continent’s electricity and hosts about 60% of its rail network.
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Less than 0.1% of Nigerian women are screened for cervical cancer in their lifetime.
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Cervical cancer accounts for 15% female cancers in developing countries against about 3.6 % in developed countries.
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The UN reports that 29,000 children under five have died in Somalia over the last 3 months.
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August 23, 2011 | twg | Comments 0

TWG Fast Facts: August 8 – 12, 2011

KosmosEnergy has so far invested about US$1.5billion in the development of the Jubilee Field off the coast of Ghana.
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Since the beginning of 2011, the United States has so far provided $565 million in humanitarian assistance to the Horn of Africa.
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Africa-China trade grew from $5 billion to $56 billion between 2000 and 2008, before reaching $115 billion in 2010. Crude oil constitutes 70% of African exports to China, and raw materials 15%.
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Only 23% of arable land in Tanzania is currently being farmed.
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Sending a daily SMS to health workers in rural Africa has improved the deliverance of malaria treatment by 25%.
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The Economist reports that about 40% of Africa’s farm produce is lost on the way to the market.
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Maize (corn) yields per hectare in Rwanda have increased from 68% in 2007 to 212% today.
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Juniper Research projects the African mobile banking market to grow to $22 billion by 2015. About 37% of South Africans use mobile banking; that’s three times more than the top user in Europe (France).
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Annual trade between India & Africa increased 15-fold within a decade to US$46 billion in 2010 from US$3 billion in 2000. India determined to increase trade with Africa from current $46 billion to $70 billion before 2014.
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World Tourism Organisation reports that six out of the nine major African destinations are from Southern Africa.
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Rwanda’s GDP growth stood at 7.5% in 2010, the highest in the region.
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Gold production in Ghana, Africa’s 2nd-largest gold producer after South Africa, rose 14% for the first quarter 2011.
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Trade between China and Africa expected to triple to US$300 billion a year by 2015.
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August 17, 2011 | twg | Comments 0

TWG Fast Facts: Aug 01 – 05, 2011

Capital invested in Africa will continue to rise in coming years to US$150 billion per year in 2015.
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Between 2003 and 2010, intra-continental investment in Africa grew by a 21%.
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UN: damages caused by oil pollution in Niger Delta estimated at US$1 billion.
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Nigeria spent US$1.34 billion importing refined petroleum between January and March 2011.
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FAO: between 30% and 60% of agricultural production is lost between the farms and the markets in Africa.
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Experts estimate that up to US$30 billion need to be invested between 2005 and 2016 to meet Africa healthcare needs.
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East Africa: annual growth in demand for electricity is estimated at 5.3% per year.
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UNESCO: in sub-Saharan Africa nearly 92% of the rural population and 48% of the urban population does not have modern energy services.
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South Africa spends US$3.1 billion annually on research and development in aeronautics, nuclear engineering, chemistry, metallurgy, agriculture and medicine.
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Kenya has approximately 25 million mobile subscribers and 10.2 million regular Internet users.
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An estimated 14.5 million people in Kenya have access to mobile-based financial services.
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African forest cover declined at an average rate of 1.7% annually between 1990 and 2005, or approximately 70,000 hectares each year.
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The number of people living in Africa’s cities expected to double by 2030.
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Tanzania: 87% of businesses are directly affected by shortage in electricity.
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Approximately 70% of new investment projects are concentrated in only 10 African countries including South Africa, Algeria, Angola, Egypt, Ghana, Kenya, the Congo Brazzaville, Morocco, Nigeria and Tunisia.
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August 09, 2011 | twg | Comments 0

TWG Fast Facts: July 25 – 29, 2011

In the first quarter of 2011, US total trade (both exports and imports) with sub-Saharan Africa rose by 20% to nearly US$23 billion as compared to the same period the previous year.
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The top five African destinations for US products are South Africa, Nigeria, Angola, Ghana and Ethiopia.
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With US$9.9 billion, Angola stands as the largest earner of foreign investment inflows in Africa in 2010.
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Close to 20% of global electricity supply in 2010 came from renewable energy sources.
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Only 2% of Africa’s rural people are connected to national power grids
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According to the United Nations, the hydro-electric potential of the Democratic Republic of Congo (DRC) alone is estimated to be enough to provide three times as much power as Africa currently consumes.
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About 80% of power generation in South Africa is coal fired.
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South Africa, Namibia and Niger collectively have over 20% of the world’s accessible uranium reserves.
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The Kenyan hospitality industry will need to add at least 2,500 new beds in the next year to meet growing tourism demands.
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The majority of the annual 300,000 victims of malaria in Nigeria are children under the age of five.
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Malnutrition directly and indirectly contributes up to 60% of child mortality in Uganda.
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According to the World Health Organization, an estimated 7 million Africans suffer from diabetes.
>>Read More

August 03, 2011 | twg | Comments 0

Development Groups Not Pushing Duty-Free Quota-Free Package

Originally Published 07/15/2011 by Inside U.S. Trade

Amid contentious discussions in Geneva aimed at forging a Doha round package by December that would include duty-free quota-free (DFQF) trade for the world’s least developed countries (LDC), U.S. development groups are not actively lobbying Congress to agree to such concessions from the United States, according to informed sources.

This is partially due to the fact that Republicans in the House Committee on Ways and Means have signaled they are not ready to engage on the controversial DFQF issue as they focus on the passage of three pending free trade agreements and renewing two expired preference programs.

A two-year renewal of the Generalized System of Preferences (GSP) and the Andean Trade Promotion and Drug Eradication Act (ATPDEA) is likely to be included in the final implementing bill for the U.S.-Colombia FTA.

But gridlock in Geneva has also led development groups to shift their efforts away from the issue because the U.S. is setting conditions for implementing DFQF that are unlikely to be met, according to Stephanie Burgos, senior policy adviser at Oxfam America.

“What we have heard consistently from U.S. negotiators is that the problem with moving Doha forward is that there’s not enough on the table for the U.S., and so it’s not appropriate to move forward with [DFQF] at this time,” Burgos said.

“Of course, we disagree with that,” she added, “but that combination of circumstances has led us to believe that it’s unlikely that duty-free quota-free is going to get moved this year.”

August 01, 2011 | twg | Comments 0

TWG Fast Facts: July 18 – 22, 2011

About 40% of Google searches in Africa come from internet users on mobile devices.
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The African Development Bank (AfDB) has projected the Tanzania’s economy to grow by 6.9% this year and 7.3% in 2012.
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The African Development Bank (AfDB) has projected the Kenyan economy to grow by 5.3% this year and accelerate to 5.5% next year.
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From 2009 to 2010, U.S. imports from Sub-Saharan Africa (SSA) increased by 39% to reach $65 billion.
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In 2010, AGOA imports were US$44 billion, 31% more than in 2009.
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Nigeria accounts for over 50% of U.S. oil import from Africa.
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The oil production in the Gulf of Guinea is projected to grow from 3 million barrels of oil a day to 7 million in three years.
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Sub-Saharan Africa’s share of private equity and venture capital funds, stood at US$ 1.5 billion or 6% of the total funds raised in 2010.
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Institutional donor aid in 2010 was at its highest-ever level – US$16.7 billion.
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According to the WTO, disbursements in purpose of aid for trade have been increasing at a constant growth rate of above 10% each year since 2006.
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Tullow Oil has sold more than 3.5 million ordinary shares for US$72.3 million on the Ghana Stock Exchange.
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Kenya is the world’s biggest tea exporter accounting for 26% of total produced volume.
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The Kenyan hospitality industry will need to create at least 2,500 new bed capacity in the next year.
>>Read More

Malnutrition directly and indirectly contributes up to 60% of child mortality in Uganda.
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Close to 20% of global electricity supply in 2010 came from renewable energy sources.
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According to the World Health Organisation, an estimated 7 million Africans suffer from diabetes.
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July 27, 2011 | twg | Comments 0

Thousands of Jobs Hang On African Textile Trade Deal

Originally written by Daniel Fisher in Forbes, July 20, 2011

One of the great things about Internet journalism is the dialogue it fosters among writers, readers and sources. At its best, the readers become sources and inform the writer with details he didn’t know when he set fingers to keyboard.

After publishing our list of the World’s Worst Economies — a feature that predictably generates nastygrams from officials of the named countries — I got this email from a Washington consultant who knows all about the trade woes afflicting bottom-of-the-list Madagascar. Some of them stem from the country’s ejection from the African Growth and Opportunity Act, which devastated that island nation’s once-growing clothing industry. AGOA is a free-trade deal that gives Americans access to cheaper clothes, but more importantly generates jobs in African countries. It’s up for renewal, but as Nathaniel Adams notes below, so far it’s suffered from “benign neglect.” That’s bad news for the tens of thousands of African clothing workers, most of them women, who depend on exports to the U.S. to eat. Full disclosure: Adams works for the Whitaker Group, whose founder, Rosa Whitaker, helped design AGOA while she was at the State Dept. Whitaker represents Lesotho in the U.S. but no clothing importers.

Nathaniel Adams reports:

Third-Country Fabric, AGOA, and the Risks of Inaction

Ten years ago, with the passage of the African Growth and Opportunity Act (AGOA), America shifted its Africa policy and embarked on an historic new trade- and investment-centered policy approach towards Africa. Enacted into law in 2000 and expanded three times since then, AGOA has consistently maintained strong bipartisan Congressional and public support because it is cost-effective and makes good policy sense.

AGOA removed all US tariffs and quotas from nearly all products made in Sub-Saharan Africa. Viewed through the lens of job creation, export growth and income generation — all critical pillars for Africa’s exit from abject poverty — AGOA has delivered impressive results, creating hundreds of thousands of jobs in Africa and nearly tripling African exports to the US over the past decade. At the same time, US exports to Africa have risen threefold, from $5.9 billion in 2000 to over $15 billion in 2009.

While US development aid to Africa has exceeded $3 billion over the past decade with dubious results, the relatively miniscule cost of foregone tariff revenues under AGOA, coupled with the undeniably dynamic effect on Africa’s economies, begs the question: Why isn’t renewing AGOA a higher priority for US lawmakers?

The African Garment Sector and the 3rd Country Fabric Provision

Africa’s garment sector over the past decade provides an overwhelming example of how trade policy can spur development. The garment sector is a particularly good sector to focus on, too – as we’ve seen before in Asia, garment production typically serves a bridge into more broad-based manufacturing and industrialization.

During the first five years of AGOA from 2000-2005, Africa’s garment exports to the US grew 102%, and in the process generated meaningful employment for 300,000 largely unskilled workers. When the WTO Multi-Fiber Arrangement was allowed to expire in 2005, lifting quotas on hyper-competitive Asian economies, the effect on African garment producers was severe. Practically overnight, Africa’s garment factories lost 42% of orders to lower-cost imports from Asia. The sector has been slow to regain ground ever since.

The bottleneck for Africa’s garment sector is the fabric itself. African countries lack the ability to produce the requisite commercial quantities of yarns and fabrics needed for garment production, so AGOA’s 3rd Country Fabric provision allows them to import fabrics and yarns from countries outside Africa to then assemble and export to the US with AGOA benefits. To date, the gains from this particular provision have been tremendous, and 95% of US garment imports from Africa fall under this provision’s purview.

For many countries in Africa, the stakes are now incredibly high. Lesotho, for example, relies almost exclusively on garment manufacturing for mass employment and income generation. As of 2009, the garment industry in Lesotho provides roughly 40,000 jobs. Moreover, 85% of these workers are women, and each is the sole breadwinner for her household, supporting between 4 and 8 family members. The timely renewal of the 3rd Country Fabric provision is understandably a matter of grave concern for a heavy percentage of Lesotho’s 2 million inhabitants.

And yet, given the clear and observable impact of AGOA, its renewal on the Hill suffers from benign neglect. This is ironic, given that the “Trade not Aid” mantra should have real resonance in today’s policy dialogue on US foreign assistance to the developing world.

Thankfully, last week Congressman Jim McDermott (D-WA) submitted a bill to renew 3rd Country Fabric to 2015. This is a step in the right direction, but it remains crucial for Congress to keep their attention on passing the bill on time and intact. Failure to do so would be catastrophic for Africa’s continuing battle against poverty, and Madagascar’s own economic tailspin could be mirrored around the continent.

July 22, 2011 | twg | Comments 0

Africa Is Awakening, Helped by Free Trade

Six of the 10 fastest-growing economies of the last decade were in sub-Saharan Africa.

By: DANIEL W. YOHANNES AND MO IBRAHIM

Long a symbol of stagnation, the African continent is experiencing a reawakening. Poverty and hunger are still widespread problems, but Africa’s growing middle class is creating business and investment opportunities that are among the best in the world. With the right trade policy and development assistance, we can unlock the potential of a thriving private sector and lift millions from poverty.

Six of the 10 fastest-growing economies of the last decade were in sub-Saharan Africa, the Economist recently found. And over the next five years, the average African economy will outpace its Asian counterpart. From telecom to financial services, extractive industries and consumer goods, Africa is open for business.

Yet challenges remain steep, from export tariffs that stunt development to the dismal shape of roads, electricity grids and other infrastructure that prevent businesses from getting their goods to market. Transport costs in Africa can be as high as 77% of the value of the exports. This is where smart development assistance must play a role. Two excellent examples that work hand-in-glove can be found in the United States, with the African Growth and Opportunity Act (AGOA) and the Millennium Challenge Corporation.

Enacted in 2000, AGOA reduces the tariffs that African exporters face in U.S. markets while providing technical assistance to help them take advantage of the legislation. In 2010, the initiative brought in $44 billion in African export earnings, a more than 438% increase since its inception in 2001, according to the U.S. International Trade Commission. Overall, calculates former Assistant U.S. Trade Representative for Africa Rosa Whitaker, the effort has created more than 300,000 African jobs.

While that law opens the U.S. market, the Millennium Challenge Corporation helps African exporters take advantage of it. In partnership with African governments, the corporation funds projects that build trade capacity, from irrigation systems that boost productivity to airports and seaports for shipping cargo.

To qualify for financing, partner countries must meet international standards for good governance, invest in their citizens, and ensure economic freedom. This means making business-friendly policy reforms, such as fighting corruption and eliminating the red tape that suffocates entrepreneurship. These are many of the same standards that businesses look for when deciding where to invest capital.

Trade and development policies often conflict with each other, but in this case the U.S. government and the Millennium Challenge Corporation have devised a coherent approach to foster the domestic and international conditions that will enable Africa’s private sector to thrive.

Now we should be working to expand opportunities for AGOA-approved goods in sectors where Africa has significant potential for growth, like agriculture. Africa accounts for 60% of the world’s arable but uncultivated land, and although 70% of Africans are involved in agriculture, the continent still faces considerable hunger and malnutrition.

The United States is doing its part by investing in agriculture projects through the Millennium Challenge Corporation. But, together with African governments and businesses, more needs to be done to build the production capacity of African farmers and improve their links with U.S. markets.

America has always given generously to the cause of poverty reduction in Africa, but moral leadership is not the only interest at stake. Other nations seeking to gain a foothold in emerging African markets are investing heavily in their development. Now is not the time to back away. The economic future and national security of the U.S. are equally compelling reasons to invest in Africa’s growth.

Mr. Yohannes is CEO of the Millennium Challenge Corporation. Mr. Ibrahim is chairman of the Mo Ibrahim Foundation and a board member of the global antipoverty advocacy group, ONE.

Article originally printed by the Wall Street Journal, June 27, 2011

July 06, 2011 | Rosa Whitaker | Comments 0

What’s Your Emerging Market Strategy?

A Wall Street Journal article today on Nigeria’s Rising Middle class is quick to trumpet a stat from a recent African Development Bank report that introduces the continent’s middle class to international investors at a robust and eager 300 million consumers. This new middle class of consumers is defined as those who spend between $4 and $20 a day.

But a $4 a day consumer has vastly different needs and spending habits than a $20 a day consumer. Redefine Africa’s middle class upwards by a mere $2 and its number falls by two-thirds. Redefine it again by OECD standards of $10 to $100 a day, and only 32 million consumers in sub-Saharan Africa make the middle class. Targeting anywhere from 32 to 313 million consumers scattered across a continent can make strategizing difficult for even the world’s largest companies.

June 30, 2011 | Ryan Webb | Comments 0

Looking forward from Lusaka

Originally published by ONE – Jun 16th, 2011

Being on the ground to mark the 10th AGOA Forum in Lusaka this past week, surrounded by business, government and non-governmental leaders dedicated to a trade and investment approach to African prosperity, gave us ample opportunity to reflect on how the relationship between Africa and the US has changed over the last 11 years.

It also served as a reminder that the annual AGOA Forum remains one of the few places where African and American stakeholders can exchange ideas on how trade can most effectively support development. The AGOA Forum reserves time each year to build consensus toward action and to set the tone for activities over the coming year.

The tone at this year’s forum increasingly emphasized finding intersections for deeper collaboration among AGOA’s stakeholders. Several new developments emerged from this year’s meeting, but each requires some additional thought and attention to take advantage of the underlying opportunity.

The African Union (AU) was appointed the coordinating body for AGOA in Washington. This will be the first time a regional body has a clear mandate to represent African countries on AGOA in the US. This is a huge step forward for African advocacy for the legislation, particularly in a difficult political and economic climate in the US. While the AU has the strong leadership to provide a unified voice on behalf of the 41 AGOA-eligible countries, the AU requires many, many more resources to be empowered as AGOA advocates.
The Obama Administration has finally put its weight behind, first, the renewal of the critical third-country fabric provision, and later, AGOA in full. AGOA as a whole is set to expire in 2015, but both the Obama Administration and African nations are bullish on AGOA’s chances of being extended. That extension will not only give Africa more time to expand manufacturing capacity, it will also provide current and prospective investors with the assurance that they will continue to benefit from AGOA’s quota- and duty-free access to the US market into the foreseeable future. The third country fabric provision allows African apparel manufacturers to create supply even if nascent domestic textile industries cannot meet demand. This provision expires in 2012. Most apparel supply chains, however, operate with nine months of lead time on orders, so without the administration following through on its commitment to immediate action with Congress on renewing the third country fabric provision, businesses currently sourcing in Africa may be forced to source elsewhere.
Jointly-developed African and American ideas were championed -– and enthusiasm for shaking up norms was evident. On the final day of the Forum, Zambia’s President Rupiah Banda endorsed “Enterprise for Development.” “Enterprise for Development” is a proposal calling for a number of important enhancements to AGOA that was introduced in Washington last year by the AGOA Action Committee. Among the proposed changes was a recommendation to increase tax incentives for US businesses operating in Africa. Other calls for creative approaches that benefit both the US and Africa were echoed by the Minister for Trade and Industry of Ghana, the Hon. Hanna Tetteh. It is imperative that, through concerted and coordinated advocacy, we put our best thinking toward enhancing AGOA over the coming year, so that, in another ten years, AGOA will be a fully-realized, jointly-owned success.

We look forward to seeing how the expanded roles and responsibilities highlighted during this year’s Forum are absorbed -– and how quickly they translate into action over the coming year. To accelerate the process, we’d call for a clear outline of what each group of stakeholders will be expected to contribute. We’d especially like to see a commitment by the US government to: 1) hold next year’s AGOA Forum in a US commercial hub, like Chicago or Houston, and 2) publish a strong plan for bringing more American businesses to the table.

In many ways, AGOA’s path to success seems to be a series of individual sprints, with each annual AGOA Forum as an endline. With a clearly developed set of responsibilities and expected outcomes –- along with a strategy for executing against them –- Washington can help US businesses carry the baton forward in creating jobs in Africa and building global prosperity.

June 17, 2011 | Ryland Potter | Comments 0

TWG Fast Facts: May 23 – May 27, 2011

The International Monetary Fund (IMF) expects Sub- Saharan Africa’s GDP to grow by 5.5% in 2011 and 5.8% in 2012.
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UNCTAD expects the dollar value of remittances into Africa to grow by 4.5 and 6.7% in 2011 and 2012, respectively, which would further support the strengthening of household consumption.
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Ghana’s total maritime trade increased 16% in 2010 from 2009. Total imports increased 19%.
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Angola’s budget revenue was 939.6 billion kwanza ($10 billion) in the first quarter, of which 71% from generated from oil.
>>Read More

Manufactured goods currently constitute only 14% of Africa’s exports.
>>Read More

In 2010, the US exported goods and services worth $17.1 billion to Africa, while its imports from the region were $64.3 billion.
>>Read More

Ex-Im expects Africa-linked distributions to US exporters to increase to between $1 billion and $1.5 billion in 2011.
>>Read More

Capital flows to Sub-Saharan Africa rose from US$35.8 billion in 2009 to an estimated US$41.1 billion in 2010 – and are expected to reach US$48.5 billion this year.
>>Read More

Out of the US$660 million Indian investments in Ethiopia, almost 65% is involved agriculture-based.
>>Read More

Afren estimates that only 480 wells have been drilled in East Africa, compared with 14,500 in the west of the continent and 19,000 wells in Central and North Africa.
>>Read More

From the Africa Progress Panel’s 2011 Progress Report

By 2032 Africa will have a larger working population than China and larger than India by 2036.
From 2011-2015, 7 of the 10 fastest growing economies will be in Africa.
McKinsey estimates that the commodity boom is responsible for 36% of Africa’s economic growth.
The poverty rate in Africa is only declining by 1% a year.

June 06, 2011 | twg | Comments 0

Rosa Whitaker Comments on the World Bank’s New Africa Strategy

“The World Bank’s Africa Strategy is focused on key obstacles that have been inhibiting trade.”

“With the Bank’s focus on human productivity, that is investments in people and also training and the transfer of knowledge, you will have an Africa that is producing at the scale that world and the region is demanding.”

Click link to watch the full video: Africa’s Future and the World Bank’s Support to it

May 18, 2011 | twg | Comments 0

Accessing Africa’s Landlocked Consumers

Landlocked countries

Statistics presented by Boeing last February at the first-ever Air Cargo Africa conference provide further evidence of Africa’s growing integration into global markets. The aircraft company reported that Africa’s air freight industry is growing at a robust average annual rate of 20%, indicative of the increasing demand for consumer goods by the continent’s burgeoning middle class (by 2020, the number of middle class Africans will almost double, with combined consumer spending of USD $1.4 trillion), as well as a commitment on the part of Africa’s growing economies to become more globally competitive.

While developing an air transport industry is important to the continent as a whole, it is perhaps most critical for Africa’s 15 landlocked nations (South Sudan will join these ranks once it declares independence next month). Being landlocked can stunt economic development and isolate a country from international markets. Such countries are usually heavily dependent on their neighbors for trade facilitation- in 2009, Ethiopia relied on Djibouti’s port for 90% of its export and imports. As Paul Collier stated, “If you are landlocked, you serve your neighbors; if you are coastal you serve the world.” High transportation costs also inhibit external trade by accounting for significantly more – in some cases as much as 77% – of the value of exports, thereby diminishing trade competitiveness. Agriculture- which accounts for an average of 30% of GDP for Africa’s landlocked nations and 60% of employment in the region as a whole- is particularly affected by inefficient transportation as the products can easily spoil. Several countries are taking steps to overcome these geopolitical trade barriers, in part by prioritizing the development of their aviation sectors: building airports and air cargo storage facilities, upgrading their planes and increasing routes to facilitate the flow of people and goods to and from their countries.

The Landlocked Market

Not only is developing air freight capacity relevant to the landlocked nations themselves, but it should also be of interest to those companies looking to access untapped consumer-goods markets. Sub-Saharan Africa’s landlocked countries are home to almost one-quarter of the region’s population (243 million people). According to the World Bank, 10/15 of these countries are projected to achieve at least 5% economic growth in 2011 and 9/15 are ranked in the top 20 population growth rates in the world. These countries present tremendous potential that can be effectively ‘unlocked’ and accessed through improved air transportation.

May 18, 2011 | twg | Comments 0

THE WHITAKER GROUP

The Whitaker Group (TWG) is the premier strategic consulting firm in the US creating sustainable prosperity in Africa. We facilitate trade and capital flows to Africa and believe in the capacity of Africa and her people to meet the challenges of the 21st century.

Since its inception in 2003, The Whitaker Group has facilitated more than $1 billion in investment and revenue streams to Africa.

TWG builds partnerships between people, governments and the private sector to bring trade and investment to Africa. We advocate for greater integration of Africa into the global economy, and we seek innovative and practical ways to maximize public-private partnerships to build sustainable economic development and drive job creation across the continent.
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