President’s Message - June/July eJournal

Last month, CCA convened some of the most important stakeholders in U.S.-Africa business at the 11th Biennial U.S.-Africa Business Summit in Washington, D.C. Majority of the discussions that took place at our plenaries, break-out sessions and in my private meetings were centered on the future of the important U.S.-Africa economic relationship. Business in Africa is rapidly evolving and now is the time to reflect on the commercial and business strategy in Africa – what it is today and how we will need to adjust if U.S. and African companies are to succeed in this changing market.At the opening plenary on June 14, United States Secretary of Commerce, Honorable Wilbur Ross, framed what the new U.S. Administration’s outlook and priorities are for trade with and investment in Africa. He described Africa as a “place of opportunity”, noting that “we cannot ignore such a large, dynamic and vital part of the world”, and said that the U.S. relationship with Africa must continue to “transition from being aid-based to trade-based”. But he also urged African beneficiaries of the African Growth and Opportunity Act (AGOA) to comply with its eligibility requirements, called on African governments to remove barriers to trade and investment, and noted that the Administration would “vigorously protect” U.S. companies and workers. We can also expect more emphasis on two-way trade agreements that would, be mutually beneficial for U.S. businesses and according to Secretary Ross, “create long-term, sustainable improvements to quality of life on both sides of the Atlantic.” H.E. Filipe Nyusi, President of the Republic of Mozambique and Dr. Akinwumi Adesina, President of the African Development Bank (AfDB) spoke to the changing nature of business on the continent and the opportunities for new and seasoned investors. “I agree completely with Secretary Wilbur Ross about the importance of the shift from aid to trade,” said Dr. Adesina, “to which I would add the extra insight that it should be from aid to investment.”One of the most important points that both Dr. Adesina and President Nyusi highlighted was the new opportunities in African markets arising from economic growth and diversification. “Think of a continent where household expenditures will rise to $1.4 trillion in the next three years, where business to business investments will rise to $3.5 trillion by 2025, and where huge demand from a rising youth population will reach 840 million by 2050 – all buying and owning consumer products”, Dr. Adesina said. And while Mozambique is on track to be one of the largest producers of liquid natural gas, President Nyusi urged American business people to “take advantage of the enabling business environment and investment opportunities and potential that exist in Mozambique to diversity their interventions… covering sectors including manufacturing, services, transport and communication, hotels and tourism…”At CCA, we are focused on a range of issues and sectors in which our members are engaged in Africa – from energy, technology, and health, to infrastructure, security and manufacturing. At the Summit, we focused on Africa in a globalizing economy and examined Africa’s role in global supply chains. We heard of many success stories. For example, Bill McRaith, Chief Supply Chain Officer at PVH, spoke about their remarkable success setting up a textile production plant in Ethiopia. These are the kinds of successes I want to see replicated across the continent. This is one of the reasons that I feel this year’s AGOA Forum in Togo in early August is a critical one. U.S. and African companies with a stake in U.S.-Africa trade broadly and AGOA trade specifically will have the opportunity to highlight both their successes as well as their challenges, and engage with senior U.S. and African officials about supportive policies needed. U.S. and African governments need to engage with U.S. and African businesses to understand what policies are working and what presents challenges to those trading with and investing in Africa. The 2017 AGOA Forum Private Sector Dialogue that CCA will host on August 8 in Lomé, Togo will be ground zero for this engagement.Diversification is one of the major reasons CCA acquired the Africa Travel Association (ATA), the oldest travel organization in the United States dedicated to U.S.-Africa tourism, and is one of the reasons why I am excited about the upcoming World Tourism Conference in Kigali, Rwanda on August 28-31. Just this month, the “UNCTAD Economic Development in Africa Report 2017: Tourism for Transformative and Inclusive Growth” was released. “Tourism is a dynamic sector with phenomenal potential in Africa. Properly managed, it can contribute immensely to diversification and inclusion for vulnerable communities,” said Mukhisa Kituyi, the Secretary-General of UNCTAD. Today, Africa accounts for just 3% of the total revenue generated from global tourism but it is the fastest growing tourism region after Southeast Asia. U.S. companies, including Marriott International, Uber Technologies Inc., and Expedia Inc., are already investing in the African travel and tourism sector.Beyond those companies directly involved in tourism, it is my hope that at the 41st Annual World Tourism Conference, our members and other companies involved in sectors such as energy, infrastructure, finance and trade will also recognize tourism in Africa for the incredible opportunity that it is. As countries and businesses look to boost African tourism, these related sectors will be crucial to its success. A higher volume of tourists will require support and investment in projects such as new and upgraded airports, more hotel development, reliable power and a well-developed supply chain.During the U.S.-Africa Business Summit, President Nyusi of Mozambique gave CCA the highest compliment, noting that “when others looked at Africa as a marginalized continent host to various problems, ranging from armed conflicts, natural disasters, chronic poverty and political instability, this organization looks at Africa as a continent of hope. It visualizes an African continent of great potential and immense opportunities that are likely to transform it and mainstream it into the global economy.” This is what CCA and its members are all about – realizing the full potential of U.S.-Africa trade and investment. I urge you to join us at the AGOA Forum Private Sector Dialogue in Togo and then at the World Tourism Conference in Rwanda where we will discuss how trade, tourism, and investment are critical for the mutual benefit and development of both U.S. and African businesses and people