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Top Five ReasonsWhy Africa Should Be
a Priority for theUnited States
M c 2 0 1 3
John P. BanksGeorge Ingram
Mwangi Kimenyi
Steven oker
Witney Shneidman
Yun Sun
Lesley nne Warner
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About the Brookings Africa Growth Initiative
For Arica to achieve transormative progress, policy solutions must come rom Arican sources. Te Ari-
ca Growth Initiative brings together Arican scholars to provide policymakers with high-quality research,
expertise and innovative solutions that promote Arica's economic development. Te Initiative also collab-
orates with research partners in the region to raise the Arican voice in global policy debates on Arica. Our
mission is to deliver research rom an Arican perspective that inorms sound policy, creating sustained
economic growth and development or the people o Arica.
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Table of contents
Introduction: Why Africa Matters to the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Mwangi Kimenyi
Advancing Peace and Security in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Lesley Anne Warner
China in Africa: Implications for U.S. Competition and Diplomacy . . . . . . . . . . . . . . . . . . . . . . . . 6
Yun Sun
Key Sub-Saharan Energy Trends and their Importance for the U.S. . . . . . . . . . . . . . . . . . . . . . . . 8John P. Banks
Transforming the U.S.-Africa Commercial Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Witney Schneidman
U.S. Development Assistance and Sub-Saharan Africa: Opportunities for Engagement . . . . . 14George Ingram and Steven Rocker
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Introdution: Why fria Matters to theUnited StatesMwangi Kimenyi, Senior Fellow and Director, Africa Growth Initiative, Brookings Institution
For over a decade now, the continent o Arica,
especially sub-Saharan Arica, has undergone a
major transormation. In 2000, Te Economist
reerred to Arica as the Hopeless Continent. Tis
nickname was based on an evaluation o the many
disadvantages that characterized the continent:
poverty and disease, cycles o conict, military anddictatorial one-party states, etc. Despite large en-
dowments o natural resources, the continents eco-
nomic perormance was dismal as a result o poor
macroeconomic management and a hostile environ-
ment or doing business.
In 2011, Te Economist reerred to Arica as the
Rising Continent and a March 2013 issue o the
magazine contained a special report reerring to A-
rica as the Hopeul Continent. Tese days, Ari-
ca is variously reerred to in positive terms such asemerging, rising and hopeul. Tis positive view o
Arica is justiedsub-Saharan Arica is the host o
some o the astest growing economies in the world.
Tis growth is not just due to rising commodity
prices but is also driven by a more vibrant private
sector supported by an improved business climate.
Tere have also been dramatic improvements in
governance and economic management. Te region
has seen major improvements in various sectors o
the economy, especially in services. Te inormation
technology revolution has become an important as-pect o the new Arica, particularly in terms o mo-
bile technologies. As a result o these developments,
Aricas middle class is now growing rapidly, and the
continent has become a major market or consum-
er goods. While sub-Saharan Arica still aces many
development challenges, it is a ar cry rom the one
described byTeEconomistin 2000. Arica is indeed
on the path to claiming the 21st century.
With the dramatic changes that have taken place
over the last decade, sub-Saharan Arica has become
increasingly important to the rest o the world. In
the past, relationships or many Arican countrieswere dominated by the ormer colonial powers. o-
day, new players have begun to engage Arica in a
big way. Notably, China and India are investing in
the continent, and increasingly Russia, Brazil, ur-
key, Iran and many others have increased their en-
gagement with Arica both diplomatically and com-
mercially. Te increased interest in Arica by these
new actors has been due to the realization that Ari-
ca has much to oer.
In many respects, the United States has been slowto seize the opportunities availed by the new Arica.
While the American private sector has begun to take
advantage o some o these opportunities, the scope
o engagement by American businesses is still small
in scale. Likewise, the U.S. governments engage-
ment has not changed much. But Arica matters to
the United States, a reality that will only grow more
important as the continents economies and gover-
nance structures continue to transorm. While it is
indeed true that Arica benets rom American en-
gagement, it is also true that the U.S. benets romArican engagement.
Te ollowing brieng papers in this collection are
meant to touch on only some o the reasons why A-
rica matters or United States as well as strategic op-
portunities or U.S. engagement in the region. Tese
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bries ocus on ve key issues: national security, Chi-
na, energy, trade and investment, and U.S. develop-
ment assistance.
In preparing these papers, the Arica Growth Ini-
tiative hopes to contribute to a better understand-
ing o Arica or U.S. government policymakers. Anappreciation o the act that engaging with Arica
benets both the United States and Arica should be
the oundation or U.S. oreign policy toward Arica.
We believe that a better understanding o the many
reasons why Arica matters to the U.S. should help
American policymakers take a more positive view o
the region in their oreign policy decision-making.
Lesley Anne Warner highlights why Arica mattersor U.S. national security. Warner asserts that the
security o Arican countries is interlinked to broad-
er global security. Tereore, proactive engagement
with Arica in securing peace and security is vital
or the mutual benet o both Arica and the United
States.
Yun Sun examines the increasing role o China in
Arica and the need or the United States to be more
engaged in the region vis--vis China. She argues
that the U.S. must take this opportunity to engagemore substantively with Arican countries in order
to mitigate some o the environmental and human
rights consequences o Chinas no strings attached
approach to Arica. Sun also highlights opportuni-
ties or joint U.S.-China collaboration in order to
advance common goals in the region.
John Banks discusses the importance o Aricasenergy needs or U.S. oreign policy. Specically,
Banks explores why helping Arican countries ex-
pand their access to energy and manage their new
oil and natural gas resources is critically important
or U.S. national security and economic interests.
Witney Schneidman discusses the importance o
Arica or U.S. trade and investment. He empha-
sizes the need to extend the Arican Growth and
Opportunity Act beyond its 2015 expiration date
and proposes some new initiatives that could helpAmerican rms invest in and do more business
across the Arican continent.
U.S. development assistance orms a major part
o U.S.-Arica relations. George Ingram and Steven
Rocker stress that U.S. development assistance to
Arica serves a number o key U.S. humanitarian,
national security and economic goals, and recom-
mend several strategies or the U.S. government to
better utilize and direct its oreign assistance to the
region.
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dvaning Peae and Seurity in friaLesley Anne Warner, Research Fellow, Center for Complex Operations, National Defense University
The pRioRiTy
In a complex and globalized security environment,
having strong and capable partners on the Arican
continent to tackle transnational challenges advanc-
es U.S. national security interests. In this regard, the
growing capabilities o Arican countries to respondto regional security challenges are an asset to the
United States. Globally, Arican nations account or
10 out o the top 20 contributors to United Nations
peacekeeping missions. Furthermore, Arican coun-
tries and the regional organizations to which they
belong are starting to play a larger role in leading
peacekeeping operations on the continent through
the Arican Union Mission in Somalia (AMISOM),
the AU-UN Hybrid Operation in Darur (UN-
AMID) and the possible Arican-led International
Support Mission in Mali (AFISMA).
Tese positive developments aside, U.S. eorts to
advance peace and security in Arica ace several
challenges. Unable to monitor, interdict and pros-
ecute predatory actors in their sovereign territo-
ries, many Arican countries ace localized security
challenges that hold the potential or global reach.
ransnational organized crime such as the illicit
arms trade and narcotracking empowers predato-
ry actors and increasingly corrupts government and
military ocials in West Arica. Piracy and armedrobbery at sea in the Gul o Guinea and o the coast
o Somalia aect local livelihoods and are detrimen-
tal to global maritime commerce. Violent extrem-
ist organizations (VEOs)such as al-Qaida in the
Islamic Maghreb, Ansar Dine, and the Movement
or Unity and Jihad in West Arica (all in northern
Mali), al-Shabaab in Somalia, and Boko Haram in
Nigeriajeopardize human security and threaten
to ignite communal violence. As demonstrated by
Ansar al-Sharias September 2012 attack on the U.S.
consulate in Benghazi, VEOs pose a threat not only
to the security o U.S. partners in the region, but also
to U.S. citizens. Intrastate conict remains a securi-ty challenge, with countries like the Central Arican
Republic, the Democratic Republic o the Congo,
Mali and Sudan presently acing new phases o un-
rozen, previously unresolved conicts. And while
Cte dIvoire, Liberia and Sierra Leone have transi-
tioned rom war to peace, similar transitions remain
ragile in Libya, Somalia and South Sudan.
whyisiT impoRTanTFoRThe u.s.?
Te peace and security o the Arican continent isincreasingly important to the United States or sev-
eral reasons. First, the security o Aricans and o
the countries in which they reside can have an im-
pact on global security and U.S. interests. Arican
governments incapable o maintaining sucient
control over their territories or o ullling the basic
needs o their populations can create a permissive
environment or criminal or terrorist networks. Sec-
ond, since the establishment o the U.S. Arica Com-
mand (AFRICOM) in 2008, the United States is
playing a greater role in Arican securityperhapsin spite o the Department o Deenses recent eorts
to rebalance toward Asia. One o the cornerstones o
U.S. military engagement in Arica entails assisting
Arican countries in the management o their own
security challenges through partner capacity build-
ing. In an era o declining deense budgets, working
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with Arican countries in addressing security chal-
lenges on the continent is an eort to prevent con-
ict and share the cost o global security. In princi-
ple, this cooperation ultimately enhances the United
States ability to ensure its own national security. Fi-
nally, rom a whole o government perspective, the
security o Arican countries can either support orundermine U.S. investment in other sectors such as
trade, good governance, health and education.
The oppoRTuniTyFoRThe u.s.
Te United States ability to advance peace and se-
curity on the continent is contingent on the conver-
gence o interests with Arican partners and their
willingness to work with the United States on mu-
tual security challenges. Accordingly, Congress and
government agencies should consider the ollowingsteps:
1. Rebalance U.S. engagement with Arican
countries so that it is more proactive than
reactive. Te United States requires a more
holistic approach to Arican securityone
that does not solely lie within the domain o
the Department o Deense. Eorts to pre-
vent and mitigate conict cut across agen-
cies and ofen address some o the root caus-
es o conict in Arica. I the United States isever to depart rom responding to one crisis
afer another in Arica, it is imperative that
Congress better resource agencies that have
prominent roles in conict prevention, such
as the State Department and USAID.
2. Establish multi-year unding authorities
or building partner capacity programs.
Moving away rom episodic engagements
with Arican countries towards sustained
security partnerships will require that theauthorities that govern security cooperation
become more exible and streamlined. Tis
move should help improve the planning o
U.S. military engagement on the continent
and work towards acilitating interagency
coordination.
3. Address the decient capabilities o A-
rican law enorcement personnel. Te
training o oreign law enorcement per-
sonnel by the United States is restricted by
Section 660, an amendment to the Foreign
Assistance Act o 1961. Yet, in terms o pro-
viding security or individuals and commu-nities in Arica, police orces are ofen the
sof underbelly o Arican security sectors.
Congress should either revisit restrictions
against U.S. engagement on police reorm
or should work with European allies to
remedy this capacity gap.
4. Continue to support regional and sub-re-
gional mechanisms or confict resolu-
tion. Although the Economic Communi-
ty o West Arican States (ECOWAS) hastaken the lead in responding to the crises
in Mali, its eorts have been impeded by
limited crisis response planning capabili-
ties, accompanied by the insucient mili-
tary readiness o several troop-contributing
nations. Tese deciencies demonstrate
several opportunities or U.S. assistance to
regional and sub-regional organizations.
5. Use ongoing insecurity in the Sahel as an
impetus to re-evaluate the scope o U.S.military engagement on the continent.
Te crisis in Mali and the diculties aced
by Arican militaries in responding demon-
strate that U.S. engagement with Arican
militaries may be necessary but insu-
cient or stability. Moving orward, the U.S.
should ensure that its engagement in Arica
bolsters non-military pillars o stability and
prioritizes deense sector reormeven i
these eorts occur at the expense o tactical
or technical military capacity-building pro-grams in the near term.
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FuRTheR ReadinG
Downie, R., & Cooke, J. G. (2011).A More Strategic US Approachto Police Reorm in Arica. Center For Strategic and Interna-tional Studies (CSIS). http://csis.org/les/publication/110414_Downie_PolicyReormArica_Web.pd.
U.S. GAO. (2010). Deense Management: Improved Planning,raining, and Interagency Collaboration Could Strengthen DODsEforts in Arica. Report GAO-10-794. Washington, DC. http://www.gao.gov/products/GAO-10-794 .
Hooper, C. W. (2012). Going arther by going together: buildingpartner capacity in Arica.Joint Force Quarterly, (67), 8., http://www.ndu.edu/press/lib/pd/jq-67/JFQ-67_8-13_Hooper.pd.
Ploch, L. (2010).Arica Command: US strategic interests and the
role o the US military in Arica. DIANE Publishing. http://www.as.org/sgp/crs/natsec/RL34003.pd.
Te White House. (2012, June). U.S. strategy toward Sub-Saha-ran Arica. Washington, D.C. http://www.whitehouse.gov/sites/
deault/les/docs/arica_strategy_2.pd.
U.S. Arica Command (2013, March 7). 2013 Posture Statement:statement o General Carter Ham beore Senate Armed ServicesCommittee. Washington, D.C. http://www.armed-services.sen-ate.gov/statemnt/2013/03%20March/Ham%2003-07-13.pd.
Warner, Lesley Anne. (2013, February 5). Capacity-build-ing key to AFRICOMs mission, World Politics Review. http://www.worldpoliticsreview.com/articles/12689/capacity-build-ing-key-to-aricoms-mission.
http://csis.org/files/publication/110414_Downie_PolicyReformAfrica_Web.pdfhttp://csis.org/files/publication/110414_Downie_PolicyReformAfrica_Web.pdfhttp://www.gao.gov/products/GAO-10-794http://www.gao.gov/products/GAO-10-794http://www.ndu.edu/press/lib/pdf/jfq-67/JFQ-67_8-13_Hooper.pdfhttp://www.ndu.edu/press/lib/pdf/jfq-67/JFQ-67_8-13_Hooper.pdfhttp://www.fas.org/sgp/crs/natsec/RL34003.pdfhttp://www.fas.org/sgp/crs/natsec/RL34003.pdfhttp://www.whitehouse.gov/sites/default/files/docs/africa_strategy_2.pdfhttp://www.whitehouse.gov/sites/default/files/docs/africa_strategy_2.pdfhttp://www.armed-services.senate.gov/statemnt/2013/03%20March/Ham%2003-07-13.pdfhttp://www.armed-services.senate.gov/statemnt/2013/03%20March/Ham%2003-07-13.pdfhttp://www.worldpoliticsreview.com/articles/12689/capacity-building-key-to-africoms-missionhttp://www.worldpoliticsreview.com/articles/12689/capacity-building-key-to-africoms-missionhttp://www.worldpoliticsreview.com/articles/12689/capacity-building-key-to-africoms-missionhttp://www.worldpoliticsreview.com/articles/12689/capacity-building-key-to-africoms-missionhttp://www.worldpoliticsreview.com/articles/12689/capacity-building-key-to-africoms-missionhttp://www.worldpoliticsreview.com/articles/12689/capacity-building-key-to-africoms-missionhttp://www.armed-services.senate.gov/statemnt/2013/03%20March/Ham%2003-07-13.pdfhttp://www.armed-services.senate.gov/statemnt/2013/03%20March/Ham%2003-07-13.pdfhttp://www.whitehouse.gov/sites/default/files/docs/africa_strategy_2.pdfhttp://www.whitehouse.gov/sites/default/files/docs/africa_strategy_2.pdfhttp://www.fas.org/sgp/crs/natsec/RL34003.pdfhttp://www.fas.org/sgp/crs/natsec/RL34003.pdfhttp://www.ndu.edu/press/lib/pdf/jfq-67/JFQ-67_8-13_Hooper.pdfhttp://www.ndu.edu/press/lib/pdf/jfq-67/JFQ-67_8-13_Hooper.pdfhttp://www.gao.gov/products/GAO-10-794http://www.gao.gov/products/GAO-10-794http://csis.org/files/publication/110414_Downie_PolicyReformAfrica_Web.pdfhttp://csis.org/files/publication/110414_Downie_PolicyReformAfrica_Web.pdf -
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china in fria: Impliations for U.S.competition and DiplomayYun Sun, Visiting Fellow, Africa Growth Initiative and John L. Thornton China Center, Brookings
Institution
The pRioRiTy
China is an increasingly important player in the pol-
itics, economic development and security o Arica.
Historically, China has prioritized strong diplomatic
relations and political ties with Arican states with
an ideological aspiration anchored on the solidarityamong the Tird World countries.1 However, since
2001, Chinas pursuit in the continent has rapidly
expanded into the economic arena, ocusing on A-
ricas rich natural resources to uel Chinas domestic
economic growth.
Chinas growing economic presence in Arica is
hardly altruistic and is guided by the principle o
mutual benets to both sides. Under the rame-
work o resources or development, Beijing mo-
bilizes its vast state nancial resources to investbroadly in inrastructure projects across Arica and
extract natural resources in return. Moreover, these
investments generate multiple layers o benets or
China, including contracts or Chinese service com-
panies, the relocation o labor-intensive, heavy-pol-
lution industries rom China, political avors ex-
tracted rom Arican governments on oreign policy
issues at multilateral orums such as the United Na-
tions, and a positive international image o China
being a responsible stakeholder. Tese motivations
are particularly true in explaining Chinas interestsin resource-poor Arican countries.
Tis strategy most likely will continue in the oresee-
able uture. In July 2012, China doubled its 2009 com-
mitment to provide $20 billion in nancing to Arica
to urther its strategic blueprint in the next three years.2
Te contemporary analysis o Chinas role in Arica
is dramatically split. Dragon-slayers emphasize Chi-
nas selsh quest or Aricas natural resources and
how it sabotages international eorts to keep unpal-
atable Arican regimes in check. On the other hand,
panda-huggers applaud Chinas contribution to A-
ricas economic development through inrastructureprojects and revenue creation. Neither reects the
nuanced, complicated nature o what China means
or Arica. China enjoys unique nancial and politi-
cal advantages in promoting Aricas growth but ne-
glects the governance, airness and sustainability o
such development. Tereore, the short-term benet
China provides to Arica is intrinsically awed and
has long-term negative consequences.
Meanwhile, along with Chinas enhanced role in A-
rica is the reality that the U.S. is being increasinglyedged out o the continent politically and econom-
ically. o compete with the Chinese presence and
to counter the negative consequences o Chinas
approach, the U.S. must become more engaged in
Arica with eective strategies. Chinas unique ap-
proach also has tremendous implications or the
U.S. role in global governance and the uture o its
Arican partners.
whyisiT impoRTanTFoRThe u.s.?
Chinas approach to Arica represents a undamental
challenge to U.S. interests in promoting democracy,
good governance and sustainable development in A-
rica. Chinese unding ows to Arica with no strings
attached, such as requirements on transparency,
anti-corruption, environmental protection, human
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development and better governance. Chinese play-
ers in Arica exacerbate the problems through their
active endorsement and participation in the awed
process. Tereore, Beijing oers an easy alternative
to the principled or disciplined development assis-
tance rom the West and multilateral nancial insti-
tutions, and undercuts the latters eort to addressthe systematic and institutional deciencies o Ari-
can countries and to promote long-term sustainable
development and democratic systems.
Furthermore, Chinas engagement in Arica has pro-
ound geopolitical implications or the U.S. global
strategy. As the U.S. rebalances to the Asia-Pacic
region, China has identied increasing hindrances
in its strategic advancement in East Asia and the
Pacic. In response, China is shifing its attention
westward to South Asia, the Middle East and Aricato expand arenas or its political and strategic inu-
ence. Tese areas are seen as the most promising by
Beijing given the stagnant or declining U.S. involve-
ment. Especially in Arica, China is looking beyond
the traditional pursuit o economic benets and as-
pires to increase and solidiy its strategic presence
through enhanced political, economic, diplomat-
ic and academic resources. Te ailure to perceive
and prepare or Chinas moves would be dangerous,
unwise and potentially detrimental or the United
States in the near uture.
The oppoRTuniTyFoRThe u.s.
Given Chinas involvement in Arica, there is an
even greater need or the U.S. to engage and coop-
erate with China or its own national interests and
global agenda, such as security and governance. Not
engaging China in Arica could undercut and even
nulliy U.S. objectives given Chinas approach. Co-
operation on security issues, like South Sudan, most
likely will not excite China in that China believes
the U.S. might ask Beijing to carry a disproportion-
ate share o economic and political responsibility.
Furthermore, China worries that a U.S.-China/G-2approach to Arican security issues might alienate
Chinas traditional riendship with Arican coun-
tries since China preers bilateral or multilateral ap-
proaches.
Meanwhile, there are key issues on which the U.S.
could and should ocus. Te U.S. needs to raise its
concerns and request that China adjust its invest-
ment and assistance policies toward Arica through
the Arica consultation under the U.S.-China Strate-
gic and Economic Dialogue. Te U.S. needs to bettercoordinate with China on providing aid, technology
and technical support in the elds o health care, and
medical and agricultural assistance. Furthermore,
inside Arica, the U.S. needs to mobilize its politi-
cal, diplomatic and sof power inuences to mitigate
the negative impact o the mercantilist approach o
China. Last but not least, a conscious education-
al eort should be made to help Arica achieve the
long-term vision about the consequences o Chinas
myopic development model.
endnoTes
1 Hu Jintao visit eight Arican countries and deepened riend-ship with the Arican continent, [],Xinhua News Agency, Feb 10, 2007
2 Jane Perlez, With $20 Billion Loan Pledge, China StrengthensIts ies to Arican Nations, New York imes, July 19, 2012
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Key Sub-Saharan Energy Trends and theirImportane for the U.S.
John P. Banks, Nonresident Fellow, Energy Security Initiative, Brookings Institution
The pRioRiTy
The countries o sub-Saharan Arica are conronted
with a conuence o energy challenges and oppor-
tunities directly relevant or U.S. oreign policy and
economic interests.
Te rst challenge is the lack o access to aordable,
modern orms o commercial energy. Te Interna-
tional Energy Agency (IEA) estimates that there are
590 million people in sub-Saharan Arica, mostly in
rural areas, without access to electricity, represent-
ing nearly 6 in 10 people in the region.1 In addition,
700 million people, or 70 percent o the population,
rely on traditional, non-commercial sources o en-
ergy, such as biomass, or cooking.
Second, with the exception o a ew oil-producingstates, sub-Saharan Arican countries do not have
large domestic energy resources, relying on imports
o energy or over 65 percent o total energy use.2
Te IEA recently estimated that the region spends
more on oil imports ($18 billion) than it receives
in international aid ($15.6 billion),3 with attendant
negative impacts on trade balances, debt and GDP
growth.
Tird, signicant new discoveries have prompt-
ed the IEA to anoint sub-Saharan Arica the newrontier in global oil and gas.4 Countries such as
Cameroon, Ghana, Equatorial Guinea, the Repub-
lic o the Congo, Kenya, anzania and Uganda are
emerging as potentially major new producers o oil.
Tere have also been discoveries o large oshore
natural gas resources in Mozambique and anzania,
prompting plans to develop East Arica into a ma-
jor exporter o liqueed natural gas. South Arica is
estimated to have signicant shale gas resources as
well.
whyisiT impoRTanTFoRThe u.s.?
Failure to expand energy access, reduce energy im-
ports, diversiy energy sources and manage new-
ound oil and gas wealth or the benet o society,
especially the poor, directly impacts U.S. interests.
Humanitarian Interests
Tere is a clear moral imperative or the U.S. to play
a leading role in expanding energy access or hun-
dreds o millions o people in the region. Helping to
lif people out o energy povertycreating digniedliving conditions and expanding economic oppor-
tunityis consistent with our democratic values.
National Security Interests
Energy poverty undermines economic develop-
ment, ueling political instability and the creation o
ailed states that can harbor our enemies and threat-
en our allies. Indeed, there is a strong correlation be-
tween political stability and electrication rates. A
joint eort o the Fund or Peace and Foreign Policymagazine, the Failed States Index indicates that 15
o worlds 20 most vulnerable states are in sub-Sa-
haran Arica, many with electrication rates below
20 percent. Among them are countries conronted
with the emergence o non-state terrorist groups or
undergoing violent civil strie such as Niger, Chad,
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Somalia and the Democratic Republic o the Con-
go. Mali, currently in the midst o battling a radical
Islamic threat, has a rural electrication rate o just
15 percent.5 Without commercial energy to support
economic growth and modernization, the pathway
to jobs and the middle class or hundreds o millions
o young people will be stymied, sowing growingdissatisaction.
Te emergence o new oil and gas producers in the
region presents potential benets or U.S. national
security interests, i this new-ound wealth is man-
aged appropriately. Oil and gas resources not only
can provide energy and revenues or local use, but
also can help stabilize oil and gas prices by diversi-
ying and enhancing available supplies or region-
al and global markets. Several countries could also
potentially become oil suppliers to the U.S., urtherdiversiying the sources o U.S. imported oil.
Economic Interests
Te energy trends described above oer trade and
investment opportunities or U.S. businesses. In the
area o expanding electricity access, there is a large
potential market or o-grid and mini-grid decen-
tralized power solutions, especially in rural sub-Sa-
haran Arica where electrication rates are well be-
low the global average. Te IEA estimates that mosto the capacity deployed in this area will be renew-
able, clean energy technologies.6 For cooking acili-
ties, there is also an opportunity to capture a market
now satised by traditional and dirtier orms o en-
ergy with advanced cook stoves based on commer-
cial energy sources. Furthermore, the emergence o
new oil and gas producers oers investment oppor-
tunities or U.S. rms in exploration, production and
related services, and inrastructure development.
The oppoRTuniTyFoRThe u.s.
Energy needs to play a more prominent role in U.S.
policy toward sub-Saharan Arica. Tis enhanced
role could be achieved by utilizing and leveraging
existing programs and institutions to incorporate
more sub-Saharan Arican countries, and expand-
ing nancial resources available to target the energy
sector. Some specic opportunities or urther en-
gagement include:
1. Operationalize a greater sub-Saharan o-cus within the Department o States new-
ly-ormed Bureau o Energy Resources,
created to address three strategic pillars o
energy strategy: energy diplomacy, energy
transormation and energy poverty.
2. Continue and expand nancial support
or energy access initiatives in sub-Saha-
ran Arica through the Overseas Private
Investment Corporation, the U.S. reasury,
USAIDs Development Credit Authorityand the Millennium Challenge Corpora-
tion, as well as through multilateral entities.
3. Promote the strengthening o institutions
and governance especially related to the
development o hydrocarbon resources,
utilizing the Department o States Energy
Governance and Capacity Initiative and
U.S. participation in the Extractive Indus-
tries ransparency Initiative.
4. Support and promote U.S. energy invest-
ment, trade and technology and knowl-
edge transer in the region with a ocus
on renewable technologies or mini-grid
and o-grid solutions, and sustainable oil
and gas development, utilizing institutions
and programs such as: (a) Global Alliance
or Clean Cookstoves; (b) Department o
States Unconventional Gas echnical En-
gagement Program; (c) U.S. rade and De-
velopment Agency; (d) U.S. Export-ImportBank; (e) the Department o Commerces
Doing Business in Arica program; and
() bilateral and regional trade and invest-
ment agreements.
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endnoTes
1World Energy Outlook 2012, International Energy Agency, 532
2 Data: sub-Saharan Arica, World Bank 2010
3 Fiona Harvey,Overseas aid to Arica being outweighed byhefy costs o importing oil, Te Guardian, April 1, 2012
4Oil and Gas Markets 2011, International Energy Agency, 240
5 Scaling Up Renewable Energy Program in Mali, SREP-MaliInvestment Plan, Republic o Mali, Ministry o Energy and Wa-ter, September 21, 2011
6 Special Excerpt: Energy or All: Financing Access or thePoor, World Energy Outlook 2011, International Energy Agen-cy, 2011, 26
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Transforming the U.S.-fria commerialelationshipWitney Schneidman, Nonresident Fellow, Africa Growth Initiative, Brookings Institution
The pRioRiTy
Tis 113th session o the U.S. Congress has an op-
portunity to transorm U.S. trade and investment
relations with Arica.
A key issue is the extension o the Arican Growthand Opportunity Act (AGOA), now set to expire in
September 2015. Te Obama administration and
key members o Congress have pledged to work or
an early extension o AGOA which, presumably,
means that the legislation would be extended within
the next 22 months. Tis extension needs to occur
or a number o reasons.
For one, the Arican market is not on the radar
screen o the American business community. In act,
the U.S. is eectively ceding the Arican marketplaceto companies rom China, India, Brazil, Russia, ur-
key, the European Union and elsewhere.
Apart rom the natural resource sector and some
recent investments by major companies such as
GE, Symbion, Wal-Mart, Microsof and Proctor &
Gamble, only 1 percent o U.S. oreign direct invest-
ment worldwide is in Arica, and hal o this is in
extractive industries.1
At the same time, U.S. exports to Arica were justover $22 billion in 2012, or about 2 percent o U.S.
exports worldwide. While the volume may be small,
these exports support more than 100,000 jobs in the
United States.2 Not only is this trade transorming
the U.S.-Arican commercial relationship into a
more genuine partnership, it raises the immediate
question o how to accelerate U.S. trade and invest-
ment with Arica so that more American workers
and companies derive a direct benet.
As Senator Chris Coons writes in the preace to his
March 7, 2013 report, Embracing Aricas Econom-
ic Potential, Engagement with Arica is critical toAmericas economic interests in the years ahead.
Meeting Aricas growing demand with American
goods and services will strengthen our economy, help
U.S. businesses grow and create jobs here at home.
whyisiT impoRTanTFoRThe u.s.?
Te U.S.s lack o attention to Aricas commercial
opportunity comes at a time when the region is
poised or an economic takeo. Six o the worlds 10
astest growing economies (according to data romthe International Monetary Fund or 2001-2010) are
in sub-Saharan Arica, and a middle class o nearly
350 million individuals, rivaling that o China and
India, has emerged across the continent.3 More-
over, according to the McKinsey Global Institute, by
2020 Aricas consumersin areas such as nancial
services, tourism, telecommunications and retail
are projected to contribute more than ve times as
much revenue to the regions economic growth as
the natural resource sector.
A key element o Aricas economic growth has been
an improvement in governance. While leaders in
some countries continue to remain in oce too long,
and Freedom House has ound that the percentage
o partly ree countries in sub-Saharan Arica has
grown rom 43 percent to only 47 percent between
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2002 and 2012, the increased requency o elections
has led to an expansion o democracy across the con-
tinent. In addition, the emergence o civil society, so-
cial media and, in many countries, a robust press has
contributed to greater accountability o government
ocials at the national, state and local levels.
The oppoRTuniTyFoRThe u.s.
In extending AGOA, thereore, Congress needs to
make it more balanced so that the U.S. is doing as
much to support the expansion o American trade
and investment on the rapidly changing continent
as it does to support Arican exports to the U.S.
From the perspective o the 40 Arican AGOA ben-
eciary countries, the extension o the legislation
represents a critical opportunity to strengthen anddeepen their commercial relationship with the U.S.
o achieve that objective, several critical questions
need to be addressed: Why have only an estimated
300 o the eligible 6,400 product lines been utilized;
why have only a small group o countries benetted
rom the export o apparel and manuactured prod-
ucts; and what other products should be added to
make AGOA more relevant to Arican producers
and manuacturers?
Tere are other issues. Rosa Whitaker, ormer assis-
tant U.S. trade representative or Arica, estimates
that AGOA has created 300,000 new jobs in bene-
ciary countries.4 How can this number be increased?
AGOA was never intended to be permanent, so how
ar past 2015 should the legislation be extended:
ve years, 10 years, longer? And is it time to grad-
uate certain countries, such as South Arica, or can
AGOA be a stepping stone to a more mature trading
relationship, as it was intended to be?
Te AGOA Forum that is tentatively scheduled to be
held in Ethiopia at the end o May 2013 provides an
important opportunity or the U.S. and Arican na-
tions to exchange recommendations on how AGOA
can be strengthened.
AGOA continues to be the cornerstone o the
U.S.-Arican commercial relationship but it must do
more to help U.S. companies win market share on
the continent. As Congress begins deliberations on
how to strengthen AGOA, here is one suggestion:
Since its inception, USAID has played a critical rolein providing resources or trade capacity building,
including the $200 million Arican Global Compet-
itiveness Initiative, rom 2006-2011, and, more re-
cently, the Arican Competitiveness and rade Ex-
pansion Initiative. Tis support is vital to the trade
hubs in Ghana, Botswana and Kenya, and the satel-
lite oce in Dakar, and it has been critical in assist-
ing Arican businesses exporting to the U.S. under
AGOA.
Te problem is that the U.S. government providesvirtually no support or American businesses seek-
ing to trade or invest in Arica.
Te Foreign Commercial Service o the Commerce
Department, which should be playing a lead role,
has been reduced to a skeletal presence in Arica
and has ocers only in Kenya, Nigeria and South
Arica (the Pentagon now has U.S. troops in ve A-
rican countries: Djibouti, Seychelles, Ethiopia, Ken-
ya and Niger). Increasingly, U.S. embassies are play-
ing a more active role, and one o Hillary Clintonsmost important legacies as secretary o state was to
integrate commercial statecraf into core U.S. diplo-
matic responsibilities.
Given the size, complexities and dierences among
the many markets on the continent, the U.S. govern-
ment has to do a better job supporting American
companies in Arica, a market with which they have
little experience. China has an estimated 155 com-
mercial attachs in the region, or more than three
per country in sub-Saharan Arica. Other countriessuch as Brazil, India, Russia and urkey have dra-
matically increased their commercial presence on
the continent as well.5
o address the situation, Congress should encour-
age USAID to restructure trade hubs as U.S. trade
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and investment centers that would work as closely
with American companies coming into the Arican
market as they do supporting Arican companies
exporting to the U.S. under AGOA. Te trade and
investment centers should utilize oreign service
nationals throughout sub-regions to keep U.S. com-
panies inormed o market developments, amongother services. Te cost to sta these centers to work
with U.S. companies would be minimal, and com-
panies could pay or services. A restructuring o the
trade hubs would signicantly enhance the ability o
American companies to win market share through-
out the continent.
Tere are other critical issues to consider, such as
local content requirements, regional integration and
tax incentives or U.S. companies to invest in Aricas
productive sectors. A good place to start, however,would be to help American businesses understand
the complexitiesand opportunitieso the Ari-
can market. As Senator Coons writes, Now is the
time to invest in economic engagement with Arica.
endnoTes
1 Vivian C. Jones and Brock Williams, U.S. rade and Invest-ment Relations with sub-Saharan Arica and the AricanGrowth and Opportunity Act, Congressional Research Ser-vice Report RL31772, November 14, 2012
2
U.S. Export Fact Sheet, U.S. Department o Commerce, In-ternational rade Administration, May 2011 Export StatisticsReleased July 12, 2011
3 Ncube, Mthuli, C. L. Luumpa, and D. Vencatachellum. TeMiddle o the Pyramid: Dynamics o the Middle Class in Ari-ca.Arican Development Bank, unis, 2011
4 Witney Schneidman and Zenia A. Lewis, Te Arican Growthand Opportunity Act: Looking Back, Looking Forward,Brookings Institution, June 2012
5 Mwangi S. Kimenyi, Economic Statecraf: Increasing Amer-ican Jobs through Greater U.S.-Arica rade and Investment,estimony, U.S. Senate Committee on Foreign Relations, July
25, 2011
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U.S. Development ssistane and Sub-Saharanfria: pportunities for EngagementGeorge Ingram, Senior Fellow, Development Assistance and Governance Initiative, Brookings
Institution
Steven Rocker, Project Coordinator, Development Assistance and Governance Initiative, Brook-ings Institution
The pRioRiTy
otal bilateral U.S. development assistance rom the
U.S. Agency or International Development (US-
AID) and the State Department to sub-Saharan A-
rica nearly quadrupled rom roughly $1.94 billion
in FY2002 to an estimated $7.08 billion in FY2012.1Te rapid uptick in U.S. development assistance
to the region was largely driven by global health
spending, specically the Presidents Emergency
Plan or AIDS Relie (PEPFAR), which concentrates
HIV/AIDS resources primarily to 14 countries, 12
o which are in sub-Saharan Arica.2
Currently, USAID operates 27 bilateral and regional
missions in sub-Saharan Arica, which in FY2012
provided bilateral assistance to 47 sub-Saharan Ari-
can countries. Te Arica regions top ve recipientso U.S. assistance in FY2012 were Kenya, Nigeria,
Ethiopia, anzania and South Arica.3
Beyond global health, the U.S. is the leading donor
o humanitarian aid to sub-Saharan Arica, particu-
larly in the area o emergency ood aid.4 Te Obama
administration has also made assistance to agri-
culture sector development a key priority in recent
years through its Feed the Future program, a global
hunger and ood security initiative.
In June 2012, President Obama signaled his devel-
opment priorities toward the region with the release
o the White Houses U.S. Strategy toward Sub-Saha-
ran Arica. Economic growth, ood security, public
health, women and youth, humanitarian response
and climate change are explicitly listed in the Obama
Strategy as U.S. priority areas to urther accelerate
development progress in the region.
whyisiT impoRTanTFoRThe u.s.?
U.S. development assistance unds programs on the
ground in ways that bring government agencies andAmerican organizations and businesses into collab-
orative activities with Aricans who are trying to lif
their countries onto a higher plane o social, politi-
cal and economic development. Te region warrants
sustained U.S. engagement or a range o humani-
tarian, national security and economic reasons.
Humanitarian interests
As a clear sign o Americas moral leadership around
the globe, the U.S. has historically been and remainsthe leading donor o humanitarian assistance to the
region. In response to the Horn o Arica drought
and subsequent amine in the summer o 2011, or
example, U.S. emergency ood aid programs provid-
ed $740 million to Ethiopia, Kenya, Somalia, South
Sudan and Sudan (according to the U.S. State De-
partment). It is ully consistent with American val-
ues to continue to respond vigorously and generous-
ly to emergencies in the region.
National security interests
Continued terrorist activities in Somalia, the recent
insurgency in Mali, and the potential threat o Boko
Haram on Nigeriathe U.S.s largest trading partner
in sub-Saharan Arica5emphasizes that the U.S. has
important national security interests in the region.
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Development assistance rom the State Department
addresses U.S. national security concerns by und-
ing counterterrorism partnerships between the U.S.
and Arican militaries as well as training or Arican
soldiers to conduct peacekeeping missions in coun-
tries like Sudan, Somalia, the Democratic Republic
o the Congo and Liberia.
Economic interests
Sub-Saharan Arica is a region o great economic
promise. From 2001-2010, six o the astest grow-
ing economies in the world were in the region.6 In
act in 2011, oreign direct investment to sub-Sa-
haran Arica amounted to more than global bilat-
eral ocial development assistance in 2011.7 Oth-
er countries, including China, are recognizing and
acting on the increasing commercial opportunitiesin sub-Saharan Arica. A recent GAO report ound
that Chinas total trade in goods over the past decade
increased aster than and surpassed U.S. trade in the
region in 2009.8
whaTisThe oppoRTuniTyFoRThe u.s.?
1. Sustainable health systems: Te vast ma-
jority o U.S. global health assistance to
sub-Saharan Arica is used to nance the
delivery o health services, which is notsustainable in the long term. Greater ocus
needs to be directed to building sustainable
health systems so Arican countries can in-
creasingly meet their own needs.
2. Disaster preparedness and resilience: Te
U.S. is the leading donor o ocial human-
itarian aid to sub-Saharan Arica. Howev-
er, very little assistance is allocated toward
disaster prevention and preparedness.9 By
ocusing more resources and expertise to-
ward these areas, the U.S. could contribute
in the long term to achieving a reduction in
loss o lie and the need or large interna-
tional responses to disasters.10
3. Economic growth: Te U.S. should leverage
its assistance and other policies to stimulate
economic growth in sub-Saharan Arica.
Members o Congress and U.S. government
ocials should engage the Export-Import
Bank, Department o Commerce, Overseas
Private Investment Corporation, U.S. rade
and Development Agency and the U.S.
rade Representative to ensure that the U.S.
is providing a range o government policies
and programs to encourage equitable eco-nomic growth and commercial opportuni-
ties or U.S. businesses in the region.
4. Democratization and good governance:
Te U.S. needs to devote greater atten-
tion and support toward governance in
sub-Saharan Arica, including improving
governmental collection o revenues and
transparent budgeting as well as building
the capacities o civil society and legislative
bodies. In FY2011 and FY2012, U.S. globalhealth requests or sub-Saharan Arica av-
eraged $4.82 billion per year while unding
requests or rule o law and human rights,
good governance, political competition and
consensus-building and civil society under
the USAID-managed Development Assis-
tance account averaged only $75.73 million
over the same period.11
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endnoTes
1 Alexis Arie et al, U.S. Foreign Assistance to Sub-SaharanArica: Te FY2012 Request, Congressional Research ServiceReport R41840, May 20, 2011, 5
2 Sessions, Myra, Overview o the Presidents Emergency Plan
or AIDS Relie (PEPFAR) Center or Global Development
3 Congressional Budget Justication, Foreign Assistance Sum-mary ables, FY2013,15 http://www.state.gov/documents/or-ganization/185016.pd.
4 ed Dagne, Arica: U.S. Foreign Assistance Issues, Congres-sional Research Service Report RL33591
5 Arica, Oce o the United States rade Representative.http://www.ustr.gov/countries-regions/arica
6 Daily chart: Aricas impressive growth, Te Economist,
January 6, 2011. http://www.economist.com/blogs/daily-chart/2011/01/daily_chart.
7World Investment Report 2012: oward a New Generation oInvestment Policies, United Nations Conerence on rade andDevelopment, Geneva: United Nations, 2012; see also Devel-opment: Aid to developing countries alls because o global reces-sion, Organization o Economic Co-operation and Develop-ment, April 4, 2012
8 Government Accountability Oce. Sub-Saharan Arica:rends in U.S. and Chinese Economic Engagement February2013
9 Global Humanitarian Assistance. United States - CountryProle. Global Humanitarian Assistance.http://www.global-humanitarianassistance.org/countryprole/united-states.
10USAID Policy Framework 2011-2015. Washington: U.S.Agency or International Development, 2011.
11 FY2013 Congressional Budget Justication Foreign Opera-
tions Regional Perspectives Annex, 3-4
http://www.state.gov/documents/organization/185016.pdfhttp://www.state.gov/documents/organization/185016.pdfhttp://www.ustr.gov/countries-regions/africahttp://www.economist.com/blogs/dailychart/2011/01/daily_charthttp://www.economist.com/blogs/dailychart/2011/01/daily_charthttp://www.globalhumanitarianassistance.org/countryprofile/united-stateshttp://www.globalhumanitarianassistance.org/countryprofile/united-stateshttp://www.globalhumanitarianassistance.org/countryprofile/united-stateshttp://www.globalhumanitarianassistance.org/countryprofile/united-stateshttp://www.economist.com/blogs/dailychart/2011/01/daily_charthttp://www.economist.com/blogs/dailychart/2011/01/daily_charthttp://www.ustr.gov/countries-regions/africahttp://www.state.gov/documents/organization/185016.pdfhttp://www.state.gov/documents/organization/185016.pdf -
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