The Corporate Council on Africa, whose members include the largest U.S. firms doing business in Africa - along with many smaller companies - convened a U.S. Africa Business Summit earlier this month in Washington, DC.
The event drew nearly two thousand participants, including many business and government leaders from Africa. Among those who address the gathering were the ranking Democratic and Republican members of the U.S. Senate Africa Subcommittee, Chris Coons (D-Connecticut) and Johnny Isakson (R-Georgia), as well as White House chief-of-staff William Daley. Following the conference conclusion on October 7, CCA President and CEO Stephen Hayes was interviewed by Alhassan Yusha, a Ghanaian journalist based in Baltimore. Excerpts:
What were high points from this event:
We focused more on critical issues than we ever have and the results of our having done this are quite good. First, we focused on U.S.-Africa trade. Secondly, we provided time for selected countries to discuss their advantages for trade with the U.S. We did not put these country specific efforts in competition with other workshops. Instead, we used the two days before the summit proper for "Doing Business" sessions on selected countries.
Finally, we looked at two critical subjects whose solutions are necessary if U.S.-Africa trade and investment is to increase. No country in Africa is meeting its current electricity needs, so we convened a conference on power prior to the summit. At the same time we convened another conference on finding partnerships. You can't do business without a partner. How do you find a good partner? It is difficult. Therefore, our new U.S.-Africa Business Center convened an international partners conference.
How did this differ from previous Summits.
Workshops and plenaries were planned by groups of members and not any individual company. As a result, workshops were no longer show-and-tell exhibits by individual companies. This was the most focused and substantive of any of which I have been associated. We did much more with this summit than any previous summit.
What aspect would you have wished have been better handled?
Even though collectively we had more Summit-related events than at any previous Summit, I wish we had done broader marketing, especially around the U.S. We need to be reaching more American companies, especially beyond the East Coast. We see changes in the corporate response to Africa now, but if we were able to reach more of the country's companies perhaps those changes would move at a faster pace.
Some critics view this event as yet another step to recolonize Africa under the guise of free trade. Others interpret renewed interest in Africa as America's reaction to China's growing role across the continent. What's your take?
Critics are legless people who teach running! It is easy to be cynical in the world today. U.S. interests are no less noble than all the other countries investing in Africa. Our interests in Africa are based on the reality that we need one another. I do not fault China for investing in Africa. I fault ourselves for not investing more broadly and for not supporting the U.S. private sector that wishes to become more involved in Africa. Greater U.S. involvement in Africa only helps Africa as much as it helps the U.S. economy. Certainly we are reacting to China to some extent, and perhaps we can be thankful that China has begun to awaken those in America responsible for U.S. international economic policy. If it takes China to wake us up to the importance of Africa, so be it.
China is engaged in large-scale infrastructure development across Africa, often 'pro bono', with less strings attached than western development institutions. Are there any lessens for the United States from the Chinese example?
China's infrastructural development is not remotely 'pro bono.' It is part of the price they are willing to pay to get the minerals, deals and relationships needed for their economic development. We should have been doing some of the same things. Infrastructure development helps African countries, but - just as importantly - it helps China get the produce and minerals they are taking to the Asian market. Frankly, it also prevents cash they would otherwise pay finding its way to European banks. It is smart business. We could be helping our economy by doing the same thing.
Does CCA monitor the existing and potential U.S. investors in Africa in terms of corporate responsibility?
It is not our job to monitor our companies. That is the role of governments and the companies themselves. Our role is a convening power. We can put various parties at the same table together, but we do not and cannot monitor compliance.
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We also have a role in matchmaking, especially for small and medium-sized businesses. Anyone who wants to do business in Africa needs a reliable partner. We can help companies find those reliable partners.
At a time when members of Congress seem to disagree on almost everything, what are the prospects for renewing the African Growth and Opportunity Act (Agoa), which provides opportunities for African countries to trade with the United States.
The state of political affairs in America is tragic, not only for the country but for the whole world. We would be the laughing stock of the world were its ramifications not so frightening for everyone else. I am optimistic, however, that Agoa will be renewed.
However, until we address more serious issues of infrastructure, financing and partnerships, Agoa will be of limited effectiveness for most nations. The reason that South Africa is the major beneficiary of Agoa is the advanced infrastructure that allows South Africa to use [the legislation] effectively.
