THE ECONOMIC PROSPECTS OF THE US-AFRICA SUMMIT
The just concluded US-Africa Submit which President Good Luck Ebele Jonathan attended comes handy with greater economic prospects for Africa; especially Nigeria, the largest economy in the continent.
According to reports, Nigeria and the United States have commenced moves aimed at leveraging on the $14 billion investment pledge made to Africa by President Barrack Obama to the country's advantage as it will oversee effective financing of structure for infrastructure in Nigeria. For example, the US Commerce Secretary, Penny Pritzker said “US Companies were eager to do business in Nigeria due to the on-going reforms in critical sectors, adding that, they could also leverage on the US export assistance facilities scattered around the country.”
While speaking, the Nigerian Minister of Industry, Trade and Investment, Dr. Olusengun Aganga noted that, apart from investment commitments and MoUs that were signed during the summit, most investors agreed that Nigeria had the most robust, clear and friendly policies on power which other African nations should try to emulate. He added that “This means we already have an enabling environment that will encourage more investors to come and invest in the sector.”
“In fact, what these investors are saying is that most of our sectoral policies which we have put in place have already encouraged them to come to Nigeria. That was whywhen we met with the American automotive manufacturing giant, Ford during the summit, they said they wanted to come to Nigeria as quickly as possible because of our new automotive policy.”
If the automotive policy was not in place, Ford would not be talking about coming to invest in Nigeria! He also noted that, the World Bank had made apledge of $5 billion for risk capital preparation of projects and to invest in Nigeria. He also disclosed that, most of the investments will be going to the power sector. All these are happening because the current administration in the country formulated and is implementing the right economic policies like the National Industrial Revolution Plan (NIRP) etc. Aganga also said that “That is the value you get as a country when you have a proper industrial plan and a well-articulated sectoral policy.”
Like I have asked earlier this year about the future of Africa in an article entitled “Is Africa's Future in Trade or Aid” and what becomes of the African Growth and Opportunity Act (AGOA) after 2015? But Mr. Aganga said “… We are looking forward to the reformation and modernisation of the African Growth and Opportunity Act (AGOA). We are working on National AGOA strategy in addition to raising the awareness of Nigerians to fully understand the benefits and opportunities that exist there in for them. We will continue to engage with the United States under the Trade and Investment Framework Agreement (TIFA) in order to build and sustain the momentum.”
In the same article, I also hinted of how some African countries as well as some United States analysts and commentator s had been kicking against the notion of Africa entering in to any Economic Partnership Agreement (EPA) with Europe as a replacement to the Preferential TradeAgreement and how it will turn the continent in to a dumping ground for European made goods, the Minister cleared the position of Nigeria saying “Nigeria had not shifted its position, EPA must meet the country's expectations and must be in our overall best economic interest. Nigeria will not and cannot sign any agreement that will lead to loss of jobs, income and investments. These are our major priorities and concerns as a country and until EPA addresses these priorities and concerns, we will not sign any agreement with the European Union.”
The question now is, if Africa should enter in to negotiation with America for the extension of AGOA, is it still going to be anchored on the same raw material products? How has Africans themselves benefited from thecurrent terms of AGOA? And what will the extension mean to Africans in general?
It has been observed that one of the reasons Africa'scontribution to global trade is still very insignificant is because we export our natural resources without adding values to them. This is one of the reasons our high Gross Domestic Product (GDP) is still not reflecting in job creation in the continent! It is also part of the reasons there is still conflicts in some parts of the continent.
Nonetheless, why is it that most countries with rich mineral resources are the ones usually bogged down by crisis and conflicts in the continent?
Therefore, just like the position of my country Nigeria is known, other countries in the continent should also make their position known so that it will help in coordinating the views of the continent on EPA and help in the reformation and modernisation of AGOA to incorporate the needed aspect for our growth as well as translate our high GDP to better living standards.
Hence, the economic prospects of the just concluded US-Africa Summit should be maximised to our own advantage. Various countries in the region should therefore internalise as well as rectify and domesticate the outcome of the summit in their countries. The days when summit resolutions end on the dusty shelves of policy makers are over! The time to act is now. What the future of Africa becomes tomorrow will depend on the actions or inactions of the present day leaders of the continent.
Comrade Edwin Ekene Uhara is an Activist and Public Affairs Commentator. He is also a Media Consultant. Reach him on 07065862479 or [email protected]