Africa’s economic growth offers US hugeopportunities —Obama

The United States President, Mr. Barack Obama, says Africa’s fast-growing economies represent a great opportunity for American companies to expand their investments if governments curb corruption and human rights abuses. “Africa’s rise means opportunity for all of us,” Obama told heads of state that gathered for a morning session on Wednesday at the State Department in the final day of US-Africa Leaders Summit. He promised them “a partnership of equals that focuses on African capacity to solve problems, and on Africa’s capacity to grow.” According to Reuters, the President is seeking to shift the US focus in Africa toward fostering investment and trade, instead of the traditional emphasis on providing aid. The new approach is being taken as China has surpassed the US as Africa’s biggest trading partner with a relationship that exceeded $200bn last year, more than double that of the US. At Tuesday’s US-Africa Business Forum in Washington, the US President drew an indirect contrast on Wednesday to China’s approach, saying that the US wanted to work with African nations to promote their expansion. “We don’t simply want to extract minerals from the ground for our growth.” That prompted a response on Wednesday from the Chinese government. “China’s African policy has always featured sincerity, friendship, equal treatment, mutual benefit and common development,” Foreign Ministry spokeswoman Hua Chunying said, according to a report by the official Xinhua News Agency. “This is the fundamental reason why China- Africa cooperation is welcomed by African countries and people.” China, the spokeswoman said, hoped the US “can play a greater role” than it was doing now in supporting African development. China’s state-owned enterprises have rolled out projects in every country on the continent, including hydroelectric dams, highways and rail lines linked to the extraction of natural resources. The US is seeking to expand its commercial footprint in Africa. At Tuesday’s forum, which included more than 90 US companies, Obama highlighted $33bn in commitments to Africa: $14bn in investments by companies including General Electric and Coca-Cola, $7bn in financing to promote US exports and $12bn for an initiative to double availability of electricity in sub-Saharan Africa. Obama said he wanted to focus leaders’ attention on Wednesday on factors that encourage investment and economic stability: governance and rule of law, expanding trade and steps to deepen security cooperation To draw more US investment, the administration is pressing African leaders at the summit to protect human rights, especially for women, curb corruption and foster more transparent financial systems. It has been a recurring theme from the president and top administration officials over the three days of the summit. “Capital is one thing,” Obama said on Tuesday. “Rule of law, regulatory reform, good governance; those things matter even more because investors want to be able to do business without paying a bribe or hiring somebody’s cousin.” Africa’s biggest need, he said, was “laws and regulations and structure that empower the individual” and would not simply preserve “power for those at the very top.” Obama will return to that message during the final session of the summit on Wednesday titled “Governing for the next generation.” The White House, in a statement, said that discussion at the State Department would include emphasising the need for accountable and transparent government to promote development. The President also is taking part in a closed session on security and stability. The US wants to help to build the capacity of African nations to deal with peacekeeping and counterterrorism so that they can “move away from the need for costly outside intervention,” according to the White House. In the final day of the US-Africa Leaders Summit, Obama said a “new Africa is emerging” with a growing middle class and record levels of investment.