On December 9 Rosa Whitaker visited Stockholm. Ms Whitaker’s motto is that poverty in Africa can only be fought effectively with new jobs, enterprise and investment, and through collaboration with business, empowered citizens and civil societies.

Rosa Whitaker has been adviser to President Clinton as well as President George W. Bush. In the US, she developed and implemented the African Growth and Opportunity Act and successfully took the Africa Trade and Investment Caucas to resolution in the US Congress. Rosa Whitaker then became the US ambassador of trade for Africa. Before this assignment she was engaged in Africa’s energy and food supply programme and was adviser to Robert B. Zoellick, who is now head of the World Bank.

Today, Rosa Whitaker is President and CEO of the Whitaker Group, a company which, with assignments from several African Governments, seeks to increase trade and investment in Africa. She is a well-known and honoured adviser to politicians and business executives who want to build an economically sustainable Africa. Since 2006, Rosa Whitaker has worked to improve health and medical services in Africa. She lives in Washington D.C. and Accra, Ghana.

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. In my visits to Gulu in northern Uganda over the years, I have listened to horrific accounts of LRA atrocities – children abducted from their families, the boys to serve as child soldiers, the girls to be sex slaves to LRA troops. Some have died from hunger and exhaustion during the arduous journey to LRA camps in Sudan, some have been mutilated or killed as punishment for trying to escape. Some have even been forced by Kony and his henchmen to kill their own mothers or club to death other children.

It is outrageous that the US has waited 25 years to offer the Ugandan government tangible assistance in putting an end to this horror. At least since 2005, when then-Assistant Secretary of State for Africa Jendayi Frazer called for a strong response to LRA violence against civilians, there have been voices raised within the US government to act. The Bush Administration did provide intelligence and other support to Uganda in this just cause. Always, however, the rationale for inertia has been that the US cannot inject itself into every situation where people are the victims of terrorism. But, in reality, we have always been willing to act when we feel it suits our interests, most successfully in the Balkans in 1999 where the US used its military might to stop Serbia’s genocide in Kosovo.

Our reasons for helping Uganda deal with the LRA are as much strategic as humanitarian. Uganda has shown itself to be one of America’s strongest allies in Africa. It has 8,000 troops acting as peacekeepers in Somalia – 8,000 troops, I might add, who could be engaged in pursuing the LRA. In 1998, following the bombings of the US embassies in Nairobi and Dar-es-Salaam, Ugandan intelligence foiled a plot to bomb the US Embassy in Kampala. And, right now, over 3,000 Ugandans are working as security guards on US military bases in Iraq.

While putting US boots on the ground anywhere is likely to spark controversy, I believe that in this instance there is a convergence of interests across the political spectrum. Liberal groups like Resolve and Invisible Children have long advocated US involvement in the fight to defeat the LRA. Those who are interested in Africa’s development have a strong concern for the economic impact the LRA’s activities have on northern Uganda (and now the new nation of South Sudan). Conservatives, and especially those on the religious right, should be outraged at the LRA’s desecration of God’s name and Word to justify their brutality.

Deploying 100 US troops to help Uganda fight the LRA is a small investment that could yield big returns for the US. Stabilizing Somalia’s neighbors will help contain the dangerous expansion of al Qaeda in the region and help spur economic growth. In this instance, fighting (especially in a non-combative role) on the side of “right” is simply the right thing to do.

Rosa Whitaker, President of the Whitaker Group, was the Assistant US Trade Representative for Africa in the administrations of Presidents Bill Clinton and George W. Bush

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.

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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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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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.

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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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$100 billion mark by 2015.
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Around 60% of all African private equity funds are funded by development financial institutions.
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Africa accounts for less than 1% of the global manufacturing.
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INED: Africa to account for one quarter of humanity by 2050.
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Remittances from Ethiopian diaspora hit a record US$ 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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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. Originally agreed to in principle during the 2005 Hong Kong WTO Ministerial Conference, the concept of extending preferential trade access to all of the world’s poorest countries (rather than particular regions) has gained significant traction. Indeed, it is a compelling concept – what better way to fight poverty and encourage economic development among what Paul Collier terms “the bottom billion,” than to make it as easy and cheap as possible for all poor countries to trade with the US? Millions of people living in poverty stand to gain considerably if all of their products can access the US market duty-free, right? Wrong.

To the contrary, DFQF access for all LDCs would be excessively harmful for many trying to escape the bottom billion, most notably in Africa. To understand this reality, we must remember that the global trading system isn’t simply made of one country against another – we must focus within the countries themselves, on individual sectors.

Let’s start with the assumption that trade preferences for poor countries should be based on making uncompetitive economies more economically competitive. They often do this by leveling the playing field and pursuing entry-level industries that allow for development along a value chain, to provide a buffer against more competitive economies (at least until both begin to converge).

The African Growth and Opportunity Act (AGOA) is one program that helps the poorest of the poor by providing duty-free access to US markets for almost all goods produced in Sub-Saharan Africa countries. In terms of competitiveness, job creation, and broader economic growth, the results have been impressive. The return on the AGOA investment has been hundreds of thousands of jobs created throughout Sub-Saharan Africa, and nearly $300 billion in non-oil exports to the US over the past 10 years. Prior to the global recession, these non-oil exports had grown by nearly 240% since AGOA’s passage. The African apparel sector in particular is one of the largest industrialized sectors on the continent after natural resources, and is one of the true development success stories over the last decade.

So if poor people in Africa can benefit from these preferences, why not those in Asia? Make no mistake – they are no less deserving of a helping hand than those in Africa. Nevertheless we must remind ourselves that the true purpose of trade preference systems is to increase competitiveness of sectors. As far as apparel is concerned, countries like Cambodia, Bangladesh and Vietnam are among the most competitive apparel producers in the world. In 2010, each one of these countries exported more apparel than all of Sub-Saharan Africa during the same period. Why, then, would we grant the same preferential access as AGOA to countries who don’t need it to become competitive?

To make matters worse, the real beneficiaries of DFQF access for these hyper-competitive economies certainly won’t be the millions of people living in poverty. Rather, when trade preferences are granted to already-competitive economies, the benefits will instead accrue to multinational retailers whose input costs are slashed while the real wages paid to workers remain constant. At the same time, the relative competitiveness of current beneficiaries (i.e. Sub-Saharan Africa) will plummet, shuttering factories across the continent and driving hundreds of thousands of Africans out of their jobs. Will this really contribute to pulling the “bottom billion” out of poverty, as DFQF proponents suggests? Hardly.

Finally, lest we forget the powerful agricultural lobby here in the United States, it is unlikely from the start that DFQF access on all imports from LDCs would ever make it through Congress. In reality, the agricultural commodities that Africa could benefit from exporting – cotton, sugar, tobacco to name a few – are far too politically sensitive to be allowed into the US duty-free. Thus, if Africa’s meager industrial development is swallowed by Asian LDCs, and its major agricultural exports continue to be blocked… perhaps it is understandable that most African governments are viewing the DFQF proposal with grave concern.

Trade is far more complicated than many politicians like to put into soundbites, and subscribing to any and every trade policy can be as counterproductive as none at all. It is incumbent upon DFQF proponents to recognize that we cannot lump “poor countries” into one basket that will collectively gain from a blanket trade preference system. Rather, one needs to dig down past “poverty politics” to confront the fundamental economic forces that shape the competitiveness of individual sectors and the flow of the global trading system. If our politicians fail to take these complexities into account, they risk devastating some of the poorest economies in the world… even with the best of intentions.