ANB-BIA SUPPLEMENT

ISSUE/EDITION Nr 321 - 01/04/1997

Senegal

USA offensive

by J.Mendy, Senegal, 17 February 1997

THEME = ECONOMY

INTRODUCTION

The USA is intent on strengthening its presence in Africa, especially on economic and business levels

On 6 February, the World Net programme carried a satellite broadcast which linked up a group of African journalists and American business and investment experts. This broadcast clarified the USA's intention of favouring and intensifying trade relationships with the African continent, rather than concentrating on development aid. In September, a Bill in that sense will be submitted to Congress. It has been drawn up by three Congressmen (i.e. Members of the House of Representatives) together with an African interest group - The African Group For Trade and Investment.
The Bill is aimed at those African countries which "have taken on board economic and reform policies". These must include true democracy, a market economy, and support for the private sector. Some of the points envisaged by the project, include:
- Setting up in 1998, an "Infrastructure and Equity Fund", with an allocation of a hundred million dollars for each of the two sectors.
- Instituting a yearly "USA/Africa economic forum", at ministerial level, which will concentrate on, for those concerned, bilateral and multilateral initiatives and policies of trade and investment. (About 200 American organisations have already agreed to lend their support to this project).
- Setting up an "USA/Africa Free Trade Zone", which will allow the US President to evolve a plan for signing between now and the year 2,000, one or more trade agreements with sub-saharan African countries.
- Enabling the American Export-Import Bank to found a "grant and guarantee system", for importation and exportation dealings between Africa and the USA.
According to the US experts taking part in the broadcast, the project will "make possible a better atmosphere for US investment in Africa. It will also give Africans the opportunity to participate in the US market, thus opening up important economic horizons for them.

Acceptable policies

President Bill Clinton's Democratic Party has more or less accepted the project, and approval is also very likely to be granted by Congress and (very important!), US public opinion.
Truth to say, aid for Third World Countries does not figure among US priorities.
The Republican Party (which is in a majority in Congress) is likely to contest the amount of aid to be given. Republicans are, however, probably going to react positively to the project described above, which ensures that the public purse doesn't have to provide excessive funding, and only grants certain benefits to those countries which have introduced reforms covering economic, social and liberal policies. This means that people will be encouraged to "get on with the job" themselves and not depend on others all the time.
The Democratic Party says: "To help the people of Africa develop their continent's extraordinary potentialities and solve their main difficulties, is a duty benefitting US interests".

Open competition

The US conducted a thorough research into Africa's situation, followed, in 1994, by a special conference on Africa. Improving trade relationships with Africa then became White House policy. The powers-that-be reckoned that with experience gained by participating in development projects in Asia, and by assisting in Latin American countries' rapid economic progress, the same could be done for Africa. These were the very terms used by former Secretary of State for commerce Ron Brown, at the Third Africa/USA Summit held in Dakar, Senegal, 2-5 May 1995.
Mr Brown strongly emphasised Washington's shift in policy towards Africa. He said: "Countries on the African continent are about to have a strong influence on the world's political and economic climate...My country is challenged to invest its human and economic resources in bringing about Africa's rebirth...Africa offers extraordinary outlets for leaders of American business...In this sense, American business can compete with Africa's usual trading partners like France and Portugal...In the future, the USA will no longer leave business dealings with Africa to European firms..."
The Secretary of State was to repeat the same on the eve of a journey made to Ghana, Uganda, Côte d'Ivoire, Kenya and Botswana from 17-15 February 1996. He said that the era of Europe's economic and business domination in Africa was a thing of the past, and that the USA had no intention of leaving African markets wide open to Europeans, especially France and the UK.
During his trip, he was able to talk with government leaders from about forty African countries south of the Sahara, who had been invited to meet him in Abidjan (capital of Côte d'Ivoire), Nairobi (capital of Kenya), and Gaborene (capital of Botswana).
Shortly afterwards, Ron Brown was killed in a plane crash.
Last October, the USA's Secretary of State Warren Christopher, made clear that his country's new policy had not changed. During a visit to Mali, Ethiopia, Tanzania, South Africa and Angola, Christopher stated: "Gone are the days when Africa could be divided into "zones of influence", where foreign powers could consider particular areas as "their preserves". Today, Africa needs the support of its many friends, not the philanthropic paternalism of a few. This journey has strengthened my conviction that the USA must remain involved with Africa".
With Ron Brown's death and Warren Christopher's resignation, there have been changes on the US political scene. But there are not likely to be any changes in the USA's commitment to Africa, in spite of Secretary of State Madeleine Albright's continuing (temporary) silence on this issue.
It's to be hoped that the United States' current interest in Africa does not give rise to any problems among individual countries, but is rather an incentive for fair competition, in the best interests of business within Africa and of the local population.

Pinpointing Senegal

Since Senegal became independent in 1960, there hasn't been much in the way of Senegalese/USA cooperation regarding commerce and investment. The new US Ambassador (since August 1996) is fully aware of this fact and has asked the private sector to take part in strengthening links between Washington and Dakar. Efforts (still in their infancy) have been made in that direction - such as:
- An American Swedish group has invested in Senegal's National Telecommunications Company (SONATEL).
- The American firm, Cargill International, has eyes on Senegal's National Oleaginous Trading Company (SONACOS) (soon to be privatised). Cargill wants to get its hands on 70% of SONACOS' capital instead of the 51% allocated by the authorities for the participating partner. Other American investors (and also European) are also interested.
- Senegal Electricity (SENELEC), is the only company producing and distributing electricity within Senegal and is soon to be privatised. Two American companies, GTI and the General Public Utilities Corporation (GPU) are seriously interested in having a financial stake within SENELEC, and have already signed agreements with SENELEC.
The agreement signed with GTI on 14 December 1996, means that the company will run a 50 Mw power station for 15 years and be responsible for the sale of electricity to SENELEC.
The agreement signed with the GPU on 20 December 1996 means that the GPU will make available its profession expertise regarding electrical energy, and a series of meetings and symposia between top personnel and technicians of both firms, will be organised during the coming two years.
Other areas of cooperation include health. The Fourth Annual Conference of Twinned American and African Cities (US - Africa Sisters Cities Conference) took place in Dakar, 28 June to 2 July 1995.
Following on the Conference, a team of surgeons led by a surgeon from Phoenix, USA, came to perform heart surgery at Aristide le Dantec Hospital, Dakar, during October-November 1996. This medical team had previously come to Senegal in April 1996 and has programmed March 1997 for a third working visit.
In pinpointing Senegal for high-powered cooperation, the USA is fully aware of the country's geo-strategic position in Africa, and the impact it could have on other African countries. The USA is now fully aware, as Warren Christopher had already said: "Africa does not just consist in South Africa".
Times are indeed changing.

END

CONTENTS | ANB-BIA HOMEPAGE

PeaceLink 1997 - Reproduction authorised, with usual acknowledgement