Black Press International |

Date: Feature Week of June 29, 2003
Topic: Black Press Business/Economic
Author: William Reed
Article ID: article_ema062903a

AFRICA: A CONTINENT OF POSSIBILITIES

My trip should signal that I am optimistic about the future of the continent of Africa. After all, there's a generation of leaders who now understand the power of economic liberty and the necessity for global commerce. � President George W. Bush - The Corporate Council On Africa 06/26/03

Quick, find Uganda on the map. As President Bush jets off to the world�s second largest continent, few Black Americans can track his itinerary beyond South Africa and Nigeria.

Bush�s African trip will focus worldwide attention on AIDS and commerce there. Africa has the highest number of people affected by HIV/AIDS. (70 percent of the world�s infected adults and 80 percent of infected children) Although Blacks applaud Bush�s administration for providing $15 billion the next five years to fight HIV/AIDS in Africa and the Caribbean, few know that Sub-Saharan Africa has more orphans than New York City has people. .

Bush�s first night will be in Dakar, Senegal. Then he will fly to South Africa for three nights, during which time he will visit Botswana next door. As he heads back toward the U.S., Bush will make brief stops in Kampala, Uganda and Abuja, Nigeria.

Senegal is on the westernmost point of Africa. It�s a country of 10 million people, predominantly rural, with limited natural resources. Senegal�s foreign exchange monies come from fishing, phosphates, peanuts, tourism, and services. It depends heavily on foreign assistance, which was about 32 percent of government spending in 2000.

South Africa is the most recognized country and advanced economy on the continent. It has more Black multi-millionaires than the U.S. South Africa's economy displays many world-class features, including: a sophisticated financial and physical infrastructure; good telecommunications and energy supply networks and one of the top stock exchanges in the world. South African companies are competitive, and among the world�s markets South Africa is a leader and a producer of not just raw commodity exports but high value-added goods, such as motor vehicles.

Botswana is next door to South Africa. Since its independence in 1966, Botswana has had the highest average economic growth rate in the world - 9 percent per year. The government of this country of 2 million has maintained budget surpluses for 12 of the last 13 years, has no domestic debt, insignificant foreign debt, and foreign exchange reserves totaling about $7 billion. Botswana's economic record is built on diamond mining, prudent fiscal policies and international financial and technical assistance. Two large mining companies, Debswana (formed with DeBeers) and Bamangwato Concessions, Ltd. operate there. American companies, Owens Corning and H.J. Heinz have made major investments in production facilities here. The St. Paul Group has purchased one of the Botswana's leading short-term insurance providers.

A country of 25 million, the Uganda economy has great potential. It is endowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits. The country's infrastructure - transportation and communications systems is being rebuilt. Most industry is related to agriculture. Agricultural products supply nearly all Uganda's foreign exchange earnings: coffee accounting for 65 percent of exports; exports of hides, skins, vegetables, fruits, cut flowers, and fish are growing; while cotton, tea, and tobacco continue to be mainstays.

In 2000 oil and gas exports accounted for more than 98 percent of Nigeria�s export earnings and 83 percent of government revenue. Nigeria's proven oil reserves are estimated to be 25 billion barrels; natural gas reserves are well over 100 trillion cubic feet. The U.S. is Nigeria's largest customer for crude oil. Nigeria provides about 10 percent of all U.S. oil imports and is the fifth-largest source for U.S. imported oil.

Prior to departing for Africa, Bush spoke at the Corporate Council on Africa (CCA) bi-annual meeting. The CCA is America�s leading American dedicated to enhancing trade and investment between the U.S. and Africa. CCA Chairman W. Frank Fountain is the Senior Vice President of Government Affairs at DaimlerChrysler Corporation and the company�s highest-ranking African American. On the way back, in Nigeria Bush is expected to visit the Leon H. Sullivan Summit on Africa. The Summit is headed by former U.N. Ambassador Andrew Young and will be concentrating on sustainable development efforts in Africa for business, trade and investment, education and HIV/AIDS.