Tamela Hultman
24 March 2004
interview
Washington, DC — Since Stephen Hayes became president of the Corporate Council on Africa in 1999, the Washington, DC-based organization has grown from 86 members to more than 200. A graduate of Indiana University with a Masters Degree in agricultural economics from Texas A&M University, Hayes served previously as a consultant to Winnington Limited of London, a private European holding company, and as president of the American Center for International Leadership.
Hayes has led the Council into a number of new areas of activity. This week, he issued an appeal to member companies to lobby Congress for an extension and enhancement of the African Growth and Opportunity Act, a trade bill adopted in 2000 known as Agoa. "More robust markets in Africa mean more opportunities for American businesses," Hayes said in a email to members. "Success in extending Agoa is essential for the future of US-Africa commercial relations." In a recent interview in the Council’s offices on 17th Street, Hayes discussed his priorities and hopes with AllAfrica’s Tamela Hultman.
How do you describe the Corporate Council? Are you a trade organization or something more?
Steve Hayes: That’s the question. We have a lot of tensions, mostly healthy tensions, around this very nexus. We can be a trade association only, and if we do that, we’d be doing the same things we were doing when I came in here - dealing with the issues with a very small staff. We’d be hosting heads of state with dinners, which have limited meaning, as far as I’m concerned. Or, we can really try to make a difference.
On the one hand, we have companies who are part of the corporate council because they want to increase their trade, and in essence that often means sales, to Africa. If our job is to serve our members, which it is - we have more than 200 paying members at this time - they aren’t going to be able to sell much to Africa - in fact, they aren't, if you take away the extractive industries - unless we can support African economic development. And that means we’ve got to address the issues of transparency, of financing, of their ability to sell. We’ve got to take on the issues of trade legislation, like Agoa.
My predecessor kept CCA out of the Agoa debate, and I can understand why he did. He took a much more narrow view, and I’m not critical of that. I felt that we needed to weigh in heavily, and we’ve emerged in a leadership position now in terms of Agoa. It’s a long-term vision. We are serving our members.
We’re trying to look at what are the critical issues that have to be addressed and who’s addressing them. What other organizations are addressing Agoa on the scale it needs to be addressed? Not many. Of course, Rose Whitaker (The Whitaker Group and AGOA 3 Coalition) has played a crucial and leading role, as has Paul Ryberg (Africa Coalition for Trade). There are a lot of others that are involved on Agoa, but there’s not a lot that can have the same influence on the debate as we can. I think we’re obligated to be a part of that. I think we make a difference.
But Agoa doesn’t go far enough. It primarily affects textiles and the extractive industry. Every country in Africa can’t make money on textiles. We’ve got to address agriculture. It’s an area that every country in Africa could be able to sell. We’ve got to open agricultural markets and we’ve got to figure out how to get the U.S. to invest in agriculture in Africa. Tourism is another area in where there’s incredible potential for U.S. investment. And there’s the continuing staple, oil and gas, which is still 65 percent of all U.S. investment in Africa.
So you have five areas of focus?
Yes, it’s Agoa and related trade legislation, financing, building partnerships, working with economic communities and Aids. I think we serve our members best: by addressing these issues so that they can make better investments.
Our companies can’t sell if they can’t get financing, and financing hasn’t been readily available. It’s difficult to obtain, even in this country - for investment in Africa or to sell to Africa. And it’s almost impossible for African business people to get financing. If they can’t get financing, how are they going to buy and sell? So that’s the second issue we’ve got to address. To me, it’s just a very pragmatic point.
The third area we’re looking at is investment in Africa. The investment in Africa right now from the United States is almost identical, or slightly less than it was ten years ago. There’s all kinds of reasons, but I think the governance issues are key. Conflicts have also had an impact, but I think a lot of that’s beginning to reverse. I hope so.
You’re stressing the importance of partnerships for your members and for their counterparts in Africa?
You can’t do much in Africa, or anywhere else, without some type of partner. But how to identify those partners? We have established partnership programs funded by USAID -- SAIBL (South Africa International Business Linkages) and WAIBL (West Africa International Business Linkages). Combined, they’ve brought in more than $400 million dollars in contracts. That’s quantifiable. It’s been audited by an independent British firm. It’s created jobs. It’s a long-term vision, but American companies have already benefited directly.
We have 19 subcontracted staff in South Africa, and we broker business transactions between South African businesses - the euphemism that’s used is "traditionally disadvantaged’, which means about 90 percent of the population, again using the South African euphemism - black, coloured and women-run businesses. And those tend to be small businesses, of course. We try to match them up with U.S. partners, and there’s been $380 million in contracts coming through that.
The West Africa program is a bit different. We do workshops throughout West Africa. We do workshops on infrastructure where groups like Caterpillar and Bechtel benefit by being able to sell things. We bring together 100 to 150 businesses from different countries; they bring their proposals. We bring in financing institutions like the Export-Import Bank and private banks, and we get four or five funded. They get financed right there, to buy U.S. products.
We brokered the deal that set up shea butter transactions between the United States and Africa. In the past, companies here, particularly African-American companies that use a lot of shea butter in cosmetic products, have had to buy it from Europe.
We’re also working with Comesa [Common Market of Eastern and Southern Africa]. We’ve got a permanent staff presence there. We have become a major bridge between those countries through Comesa. And I think that’s why the U.S. government, more and more, comes to us. We have a close relationship with the administration, and I think we’d have one with a Democratic administration because I think we fit a need.
The fifth area is Aids.
You have established a program, with funding from the Gates Foundation?
Yes. Look, if we’re not addressing Aids in the workplace, our companies aren’t going to stay there. We have to address it. If this isn’t addressed, investment isn’t going to increase. That’s just the way it is. It’s very pragmatic. The corporate community is leading the way on education in the workplace, leading the way on research. We’re obligated to be in this or we’re not doing what this council ought to be doing.
The companies that are members of the Corporate Council vary a lot in size. Do the interest of your largest members and your smallest members diverge a great deal?
There is a tension between the large companies and small to medium-sized businesses. We’re not trying to be all things to all people, but we do have a membership that is far more diverse now than it was five years ago, when I came here. We were almost 80 percent large companies, and now we’re 38 percent large, 32 percent small and 30 percent somewhere in between.
The small companies come to us because they don’t have the resources to spend a lot of time in-country, trying to figure out who’s the right partner, how does the system work. They need us to help identify potential partners. SAIBL and WAIBL have been very helpful. Also, we are putting some of our smaller members in contact and in contracts with some of our larger members, particularly in the oil areas.
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