AFRICA ON THE RISE AGAIN

***THIS IS A OLDER ARTICLE BUT RELEVANT TO TODAY'S CHALLENGES***
Africa is on the Rise
By Alvin Singh II
Part I
The following article is the first part of a three part series on the recent developments of African trade, U.S. business policies in Africa, aid development and the results of the Fourth Annual African Growth and Opportunity Act Forum in Dakar, Senegal.

Behind the invalid headlines of “Africa seems hopeless”, there is a more promising reality that Africa is leaping forward.

The home of over 850 million people, Africa is a diverse continent of languages, cultures, political governance and achievement. Africa has recently emerged as a top priority among world leaders. At the July 6-8 2005 G8 Summit held in Gleneagles, Scotland, Africa formed the center of the forum’s many global discussions that were briefly delayed by bomb attacks in London. One of the major topics discussed during the summit was the cancellation debt for 18 developing nations, 14 of them African nations, in a total amount of $40 billion dollars.

With the recognition of HIV/AIDS as a global crisis, the G8 leaders agreed to work on a plan to provide universal access to anti-HIV drugs in Africa by 2010. UN Secretary General Kofi Annan said the G8 deal represented “a good day” but was only “the beginning” towards the fight against AIDS and poverty around the world. Many people in Africa are not sitting still, waiting for the West to help with the complex issues confronting the continent. The entrepreneurial spirit in Africa has risen to new heights and investments on the continent are showing positive returns.

Without question the recent trade boom in Africa has largely come from the oil and mineral industries who have been exporting Africa’s abundant natural resources for centuries. Angola, long divided by the mid-1980’s cold war conflicts and a protracted civil war, has shown economic growth of 14%, the fastest in Africa in 2004. A stable economy, encouraging private sector investments and rising currency values in non-oil producing nations like South Africa are a positive testimony of Africa’s business future. South African Finance Minister Trevor Manuel wrote that commitment to train a million health workers by 2015 must be “largely an African initiative, but needs partners- people thinking, and spending, long term”.

Having cancelled a fraction of Africa’s debt to the IMF and the World Bank, the industrial powers might consider what to do about the remaining $286 billion. With aid in development and infrastructure Africa can finish rebuilding the economies it deserves. According to Corporate Council on Africa, President Steve Hayes and AGOA co-chair “AGOA benefits Africans by creating jobs and stability. But such progress is overshadowed because we continue to keep our (U.S.) markets shut to agricultural goods or undercut African farmers with large subsidies. Africa’s comparative advantage is in agriculture where 70% of Africans earn their living”. The total amount of trade between Africa ad the U.S. rose 37% to $44.4 billion dollars in 2004. AGOA exports showed a substantial increase up 88% to amount $26.6 billion dollars with apparel and agricultural products accounting for more than half of the non oil exports.

United States exports to Africa increased by 25% to $8.6 billion making Kenya and Nigeria the fastest growing markets. However, the overall levels of U.S. direct investment in Africa remains low at a total 1% of U.S. FDI worldwide.

In order for trade to be strengthen and investments trusted in Africa, the continent has been challenged to deal with corruption and political stability that will lower the risk for foreign investors who wish to market in Africa and also buy from African companies. Once the problems of corruption are tackled and handled effectively and honestly Africa can then continue its work towards constructive development with proper communications and means of transportation. Africa is on the rise towards a new future that many people believe will be the true calling of democracy and a decline on poverty.