President's Message - Nov/Dec eJournal

Earlier this year, on November 7, the Government of the Republic of Côte d’Ivoire and the Millenium Challenge Corporation (MCC) signed a five-year, $524.7 million compact to spur economic growth, reduce poverty, and support regional stability and new business opportunities. I spoke on a panel alongside the Secretary General to the President of Côte d'Ivoire, Minister Patrick Achi, MCC Acting CEO, Jonathan Nash and Center for Strategic and International Studies (CSIS) Africa Program Director, Jennifer Cooke, to discuss the significance of the compact for Ivoirien economic growth and opportunities for partners, hopefully including U.S. companies, that will implement the compact.As we all sat through this discussion, I could not help reflecting on the fact that Cote d’Ivoire’s economic story over the last 10 years has been one of the greatest comeback stories. This small West African nation emerged from civil war in 2003 in a terrible state. In addition to the uncountable costs of war, international investors and businesses had also left Cote d’Ivoire in droves. Fourteen years later, the World Bank cites “growth, economic diversification, and education reforms” as the foundation of Cote d’Ivoire’s current success. It is one of the fastest growing and resilient economies even in the face of recent sluggish growth rates across the continent. And we heard from President Ouattara as well as other senior government officials of their interest in attracting U.S. firms and partners.2017 has been a year of many changes in the U.S. and African political as well as economic landscape, and I think there are critical lessons that we should take from Cote d’Ivoire’s success. Earlier this month, on December 3rd through the 7th, CCA led a US delegation to the Republic of Sudan. Similar to Cote d’Ivoire, this was a country involved in a civil war and there was the additional burden of being under economic sanctions. With the lifting on U.S. economic sanctions in October, we decided to lead the first US trade mission to Sudan in over 20 years because we recognized the importance of bringing investors in early to support Sudan’s growth and development. Limited knowledge about opportunities in Africa remains one of the biggest barriers to doing business. CCA member companies and other delegates on the mission got an up close, hands on experience in Sudan to gain a clear understanding of Sudan’s current investment climate and business opportunities. We ensured that they met with senior government officials critical to approving projects; institutional stakeholders such as the World Bank and the African Development Bank (AfDB); the top financial institutions, including the Sudanese Central Bank, the Sudanese Bankers Association, and the Bank of Khartoum, to understand how businesses can access financing; and local business leaders such as Sudatel and DAL Group to gain insight into how successful Sudanese businesses are operating and the potential for partnerships of such companies with U.S. businesses.Similar to Cote d’Ivoire, the Sudanese government and business leaders recognize that attracting investment, particularly from U.S. companies that are known for high quality products and willingness to transfer skills and technology, will be key to long-term growth. They are looking to do business with U.S. companies in agribusiness, energy, health, infrastructure, financial services and ICT.Another African nation that we are watching closely is Zimbabwe. Recently inaugurated President Emmerson Mnangagwa, has announced a “new economic order” which signals potentially huge shifts from Mugabe-era economic policies. One of the key parts of this strategy will be attracting foreign investment back to the southern African nation. In addition to its arable land and bountiful resources, Zimbabwe also has one of the most educated workforces on the continent. Now is the time for all of us to think about what these policies could mean to potential U.S. investors and partners.These kinds of comeback (or potential comeback) stories in Africa support the findings of the recently issued Trump Administration U.S. Security Strategy which cites that “Africa remains a continent of promise and enduring challenges” … and “contains many of the world’s fastest growing economies, which represent potential new markets for U.S. goods and services”. As a priority for future U.S. economic engagement with Africa, the strategy highlights the U.S. commitment to “expand trade and commercial ties to create jobs and build wealth for Americans and Africans” and “work with reform-oriented governments to help establish conditions that can transform them into trading partners and improve their business environment.”CCA – through its 23 years – has been a staunch believer in and supporter of African comeback and other stories of the continent’s economic success and potential. In my first year as CCA President, this organization has built on our brand as well as revitalized our vision for U.S.-Africa business engagement. With a small, talented staff, we organized a number of events in 2017 – including two world-class conferences - the U.S.-Africa Business Summit in Washington, DC and the World Tourism Conference in Kigali, Rwanda; Forums at AGOA, UNGA and on the sidelines of the World Bank/IMF spring and fall meetings; and I met with numerous African officials and business executives as I traveled across the continent. As business needs in the US and Africa evolve, CCA is also committed to evolving and adapting to ensure that this organization is consistently providing the highest value to our members and stakeholders.The fact is that any company seeking to grow will no longer be able to ignore a marketplace as large as Africa. I personally believe that there are many comeback stories on the continent waiting to happen, but they will require vision and a long term strategic approach. CCA is planning a 2018 calendar of exciting events and initiatives, and is ready to strategically partner with you as you create the next comeback and success stories in U.S.-Africa trade, investment, and business.