Kampala — Remarks (as prepared) by Jacques P. Walker, Project Director, African Trade and Investment Policy Program Constituency for Africa at a Trade Capacity-building Seminar in Kampala, Uganda March 18-19, 2002, Sponsored by the Office of the United States Trade Representative and the Department of Commerce Commercial Law Development Program. Funded by the U.S. Agency for International Development Africa Trade and Investment Policy (ATRIP) Program.
His Excellency Yoweri Museveni, President of the Republic of Uganda; the Honorable Rosa Whitaker, U.S. Trade Representative for Africa and Head of the U.S. AGOA delegation; the Honorable Martin Brennan, U.S. Ambassador to Uganda; Honorable Ministers and Distinguished Representatives of the Government of Uganda and the Ugandan private sector; Distinguished representatives from neighboring countries; our distinguished U.S. delegation; ladies and gentleman.
Today, I would like to take a few minutes to talk about the efforts of the organization I represent, the Constituency for Africa, to establish and develop linkages between U.S. small and minority-owned companies with businesses in Uganda and throughout Sub-Saharan Africa. While I do have a message that I hope to convey to you, the sole purpose of my visit is to meet African companies and identify viable projects and other opportunities. I also will discuss our plans for follow-up activities in Uganda later this year.
I bring you greetings from CFA's Chairman of the Board, the Honorable Ronald Dellums. As many of you know, Mr. Dellums spent over 30 years as a Member of the U.S. Congress and is currently one of the leading voices in the U.S., and perhaps the world, for the establishment of a new U.S.-Africa partnership. Mr. Dellums has also been a loud, powerful voice for the fight against the HIV/AIDS pandemic in Sub-Saharan Africa and globally.
I also bring you greetings on behalf of the CFA President & CEO, Mr. Melvin Foote. Armed with little more than dedication, ambition, compassion, and a robust fax machine, Mr. Foote has worked tirelessly to establish CFA as one of the foremost advocacy groups for Africa.
My name is Jacques Walker and I am the Project Director for the Constituency for Africa's Africa Trade and Investment Policy Program.
As with this important conference, the Constituency for Africa's ATRIP Program is also funded by the U.S. Agency for International Development. I would like to acknowledge and thank USAID for their support and commitment to increased trade and investment opportunities between the U.S. and Africa.
First and foremost, I wish to acknowledge and thank our host country, Uganda, for such a warm welcome and for your full support in convening this important conference. Your hospitality is truly appreciated.
Secondly, I wish to acknowledge and thank the distinguished officials of the Government of Uganda, for your full involvement and support of the Africa Growth and Opportunity Act and its implementation. Without your support, AGOA could not be a success.
Thirdly, I wish to acknowledge and thank the Ugandan business leaders, and leaders from the private sector from the East and Southern Africa regions, who are here today. Ultimately, it is you who will make AGOA a success. Ultimately, it is you that represent the hopes and possibilities of economic growth and development in Uganda and throughout Africa.
As in the U.S. and elsewhere in the world, small business is the engine for growth. I look forward to meeting with each of you during my stay in Uganda.
While the purpose of our conference today is AGOA, let us not forget that an estimated 7,000 men, women, and children die each and every day from HIV/AIDS in Sub-Saharan Africa. We must be cognizant of this if for no other reason than for the magnitude of this human tragedy. The loss of life, on any scale, is a tragedy. But in the context of trade and investment, let us also recognize that the people who are dying in Africa are people who would otherwise be productive members of society and who also would be making meaningful contributions in every field of human endeavor-every field of human endeavor. These are doctors, lawyers, accountants, and business leaders. We cannot afford this loss.
Today, I will discuss Small Business Development Opportunities between the U.S. and Uganda within the framework of AGOA. I first want to provide you with a brief background on the Constituency for Africa and the work we are doing, particularly as it pertains to small business development and interaction.
The Constituency for Africa was established in 1990 when a group of concerned Africanists and citizens representing major organizations with an interest in Africa, joined to develop a strategy to build organized support for Africa in the United States. From this effort, CFA's broadly defined purpose is to create an educated U.S. public that is well informed about Africa and U.S. policy towards Africa. As the name implies, we are building a constituency for Africa in the U.S. and throughout the world.
CFA's mission is to mobilize and foster increased cooperation and coordination among a broad-based coalition of American, African, and international organizations and individuals committed to the progress and empowerment of Africa and African peoples worldwide.
In over 12 years, we believe that CFA has had an impact and has helped forge a new relationship between the United States and the countries of Africa. CFA has been and will continue to be a voice for action in our fight against HIV/AIDS. As a global community, we must rise to the task and fight this pandemic as never before. We cannot and must not condemn the 35 million people who are infected globally to a certain death. CFA will continue this fight.
Now let's talk business. The reason that I am here, on behalf of CFA, is to talk about the opportunities for small business in Uganda and this region, and the United States; and to discuss our strategies and ideas to establish and grow commercial linkages. Our delegation is here, not just to talk, but also to explore ideas, strategies, and approaches that will yield tangible benefits to the people of Uganda and the East African region.
As was discussed yesterday, AGOA is not just about two-way trade. AGOA is about a broad-based engagement with Africa. AGOA can be about health care, education, and conflict resolution. As powerful as AGOA can be, it is the first step in a new relationship with Africa. As we are gathered here today, I ask you to reflect upon the importance of your presence and participation in this process. We-you and I-all of us, are working to re-define the relationship between Uganda and the United States. Let us appreciate the magnitude of this moment and embrace it as such.
I am a student of the late Reverend Dr. Leon Sullivan. Dr. Sullivan spent his life working to build a bridge between the United States and Africa, with a particular emphasis on reuniting Africans and African-Americans. Right now, at this very moment, we are continuing his work. I am sure Dr. Sullivan is smiling down on us and approves of our activities. I'm sure he is, as we all are, proud of the leadership Rosa Whitaker is providing us in the area of U.S.-Africa trade.
The Constituency for Africa was involved with AGOA from the very beginning. Melvin Foote, working closely with Rosa Whitaker and many other groups, such as the Corporate Council on Africa, advocated for the passage of AGOA. Now that AGOA is law, CFA is working to position ourselves to support and facilitate the implementation of AGOA. For AGOA to be successful, business must get done. That is why we are here.
Our interests are small business-U.S. and African small business enterprises.
Small business is the engine for growth. Now, I certainly use the word "small" in a relative manner. In the U.S., small businesses are defined as companies with fewer than 500 employees.
In Africa and other developing regions and countries, a firm with up to 500 companies would not be considered small. In relative terms, however, the lessons learned from the development and support of small businesses in the United States can serve as a model for Africa, in particular, and Uganda specifically.
Now, I give my remarks in a context that Uganda knows how to do business. With a diversified economy and an abundance of natural and human resources, you certainly have demonstrated an ability to succeed with commercial enterprises. I come to you, rather, with an opportunity. An opportunity that we can both share in to strengthen our relationship and improve the quality of life for the people of Uganda.
In his eloquent remarks yesterday, President Museveni could not have been clearer in his support of free trade and the importance of free trade for job creation, continued economic growth, and social transformation.
Let me take a few moments to give you a few facts about small business in the United States. First, 97% of U.S. companies that export are small businesses. In the U.S., between 1987 and 1997, the number of U.S. small businesses that exported tripled from 65,900 to 202,185.
Why is the participation of small business in international trade important? Because, again, small business is the engine for growth. In the U.S., small businesses have created nearly all of the over 20 million new jobs since 1992. The 24 million small businesses in the U.S. represent over 99% of all employers, and employ up to 85% of the U.S. workforce. Small business is the engine for growth.
This can serve as a model for Uganda. Your sustained economic growth is evidence that this can be done. This is the path that you are already on. With AGOA, and with a U.S. actively engaged with Uganda, we can now elevate our bilateral partnership. We can leverage management and technical expertise, capital, and other resources to help each other.
Let me repeat that-help each other. We do not come to you with the arrogance that we know how to help Africa. Rather, our approach is that both sides, the U.S. and Uganda, bring something of value to the table.
Given that reality, let us come together as partners and move forward.
Our interests are small business-U.S. and African small businesses.
CFA has launched a new program, funded by USAID, to link U.S. and African small business enterprises. In the U.S., we are particularly interested in ensuring that the African-American business community fully participates and plays a leading role in a new U.S.-Africa partnership. Within the framework of AGOA, CFA intends to be the voice for small businesses. To be this voice, however, we must be more than just talk.
Please allow me a few more minutes to provide an overview of our program.
To accomplish our objectives, CFA has implemented our program within the context of an African Commercial Counselors' Forum initiative to address the following three areas:
First, CFA has developed a strategic plan for the ongoing training and education of each participating African Embassy's Commercial Counselor in the application of AGOA for interaction with small and medium-sized business enterprises. In short, we see the Commercial Counselors as a vital link between U.S. and African small businesses.
Second, while AGOA represents tremendous trade and investment opportunities for both African and American small businesses, the ability to establish and maintain an initial connection can be significantly enhanced by the level of participation and commitment of each African Commercial Counselor.
Thirdly, as a well-respected NGO, CFA has a proven track record and comfort-level with the African Ambassadors and Commercial Counselors based on our long-term commitment to the implementation of AGOA and other trade and investment related activities.
With this being said, let me now talk about the specific activities we have initiated: First, as I just mentioned, CFA has launched an African Commercial Counselors Forum where we meet monthly with your Commercial Counselors in Washington, DC. At these meetings we discuss a wide range of relevant issues. We discuss AGOA and AGOA implementation. We discuss obstacles and challenges facing small business. In early April, we will take up to 20 Commercial Counselors to the University of Central Florida for a four-day, intensive capacity-building workshop. This training is modeled after the training provided to U.S. Foreign Commercial Service Officers.
Our goal is to work with each Counselor, as they become more effective advocates within this new AGOA environment. Advocates for you, Ugandan small businesses. To truly support small business, we must have the appropriate infrastructure in place to deliver real, helpful services.
The African Ambassadors and Commercial Counselors in the U.S. are important partners with CFA in our efforts. Your Ambassador in the U.S., Edith Ssempala has led the African Ambassadors in this regard and is truly an effective economic advocate for Uganda.
Second, CFA has embarked on a program of outreach. We intend to cast a wide net to reach out to small business in the U.S. and throughout Africa. Our intent is to create and maintain a timely, accurate database of U.S. and African small businesses and opportunities for small business buyers, sellers, investors, and partners. I am here today to meet and talk to Ugandan small businesses and businesses in general.
CFA wants to work with you to try and identify viable opportunities for Ugandan and U.S. small business enterprises. In the U.S., CFA will hold 15-20 Town Hall Meetings and Africa Business Roundtables in cities throughout the country. We will utilize these events to identify U.S. small businesses that have an interest in Africa. Now, we do recognize that we will be talking to companies at different stages of export-readiness. For example, a segment of these companies may not be ready to trade with African companies, but may just require information to formulate a strategy and best determine how their products and services might best meet a particular market demand in Africa.
Another segment of these companies may have had some exposure to Africa, and may have done some business in a country or region, successfully or unsuccessfully. These firms might need assistance in identifying and qualifying a partner or qualifying new markets in Africa.
Another segment of U.S. small businesses might be fully-established in Africa doing successful business. These firms might require an advanced level of support that could include a trade mission, reverse trade mission, or other relevant services.
Again, CFA is trying to cast a wide net. As in the U.S., we hope to do the same throughout Africa. Company by company, trade association by trade association, we intend to establish a network of businesses throughout Africa.
How does CFA intend to succeed in this endeavor? We will do so by leveraging our track record in the U.S. and throughout Africa, and by leveraging our partnerships.
The U.S. Small Business Administration is our implementation partner.
We are working very closely with the SBA's Office of International Trade to reach out and identify U.S. small businesses that are candidates to benefit from our efforts. In addition to our joint outreach, we are working with SBA to develop and implement capacity-building workshops to prepare U.S. small businesses for the export market. For capacity development, we are also working closely with the Small Business Development Center at Howard University in Washington, DC.
We are working closely with the Corporate Council on Africa, represented here by their President, Mr. Steve Hayes. CCA member companies represent over 80% of the U.S. investment in Africa. We are cooperating fully to integrate our efforts with CCA to ensure that small businesses fully participate in the U.S.-Africa trade and investment partnership.
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As a matter of fact, we will discuss in the next segment a few ideas we have as follow-up for this important AGOA Conference.
Additionally, CFA has just signed an historic partnership with the PanAfrican News Agency, or more commonly referred to as PANA. I am excited about this partnership. With a presence in all African countries, PANA is an important vehicle for news and information out-of, and into Africa. The full value of this partnership will be realized as we communicate and disseminate information to targeted segments and sectors. In regard to small businesses, we now have the vehicle to identify companies and opportunities throughout Africa. As with our efforts in the U.S., this is critical to our strategy to reach-out to African companies.
In closing, I speak directly to each of the Ugandan companies represented here today. CFA intends to be an important voice and resource for small business. More importantly, we want success stories in Uganda. I look forward to discussing our ideas in more detail with you individually and I look forward to hearing your views on this matter.
I do not claim to have all of the answers. I do think, however, that CFA is developing a viable framework to support U.S. and African small businesses. Work with us as we develop and implement a process that can have a meaningful impact.
As a result of this conference, I hope to obtain additional information on your companies and get a better sense of the projects you have identified. I have come here to listen. I have come here to learn what is important to Ugandan businesses. I see this as the first of many steps.
I do expect that we will follow-up with each and every Ugandan company that expresses a genuine interest. In the next 8 weeks, CFA will launch its re-designed website that will be, among other things, a resource for small businesses. Our intent is to help provide African entrepreneurs with the same level of market information and intelligence that U.S. companies have about Africa.
For example, the U.S. market can be segmented by region and sector, as can Africa. There is no reason that an agriculture or technology company in Africa can't identify a buyer, seller, or partner by region and by zip code. With the Internet, the gap between buyers, sellers, investors, and partners has been closed tremendously. Even without Internet access, there are resource tools available. We must continue to use all of these available tools at our disposal to bridge this gap even further.
Also, I do encourage the Ugandan businesses to take advantage of the U.S. delegation here today. This delegation meaningfully represents the U.S. Government and private sector.
As we continue our discussions today, let's talk about specific opportunities. Let's explore opportunities in textiles, manufacturing, food processing, and mining. Let's explore other opportunities in other sectors. Let's work to identify viable, bankable projects that can serve as success stories for Uganda and AGOA.
The resources to facilitate small business development and commercial linkages are largely represented in this room today. With Rosa Whitaker and the USTR and Commerce Department delegates, as well as with groups such as the Corporate Council on Africa, the African Coalition for Trade, CFA, and others, we certainly are in the position to move beyond the "what" and start talking about the "how".
Let me also mention to you, as a follow-up, CFA hopes to convene a small business summit in Kampala later this year. For this Summit, CFA would lead a delegation of small and medium-scale enterprises to Uganda to meet and interact with companies from Uganda and throughout the East African region. I will be discussing this idea with representatives of the Ugandan Government and private sector during my stay.
I thank you for your patience.
