Photo: US Embassy, Luanda
U.S. Africa Strategy Speech at Trade and Investment Luncheon
03/20/2019 01:09 PM EDT
Remarks
John J. Sullivan
Deputy Secretary of State
Luanda, Angola
March 20, 2019
Thank you, Ambassador, for that introduction and to you Maria, I also
would like to thank, as the Ambassador said, the U.S.-Angola Chamber of
Commerce, and AmCham Angola, and of course Chevron for sponsoring this
event. Good afternoon everyone, and thank you all for the warm welcome
and for joining me here today. This is my first trip to this beautiful
country, and it’s a real pleasure to be here in Angola.
As Ambassador Fite said, I would like to speak today about how the
U.S. Africa strategy can unlock the many economic opportunities we’ll
discuss at greater length throughout today’s luncheon. I look forward to
highlighting the many ways we can work together to promote shared
prosperity and security in the United States, in Angola, and across the
African continent.
As you know, our administration recently announced the new Africa
Strategy to revitalize our engagement with African partners and promote a
prosperous and secure future for all Africans.
At the core of this strategy, we’ll work hard to expand economic
opportunities; support sustainable and inclusive development; advance
peace and security, including combating terrorism and other extremist
groups; and promote stability, human rights, good governance, and
self-reliance.
The Africa Strategy underscores our long-standing commitment to
Africa and to moving African countries away from foreign assistance,
toward self-reliance and sustainable financial independence.
Recognizing the enormous economic potential on the continent, the
Administration has made the expansion of trade and investment in Africa a
key priority for the United States.
By 2025, we expect that nearly two-thirds of the estimated 300
million African households will have discretionary income, which makes
this a key market for globally competitive American companies.
In 2017, the United States had $39 billion in two-way trade with
sub-Saharan African countries. Our Administration believes we can do a
lot better than that.
Through “Prosper Africa,” a new Presidential Initiative, we will
support U.S. investment across the continent, improve the business
climate, and accelerate the growth of Africa’s middle class. We’ll also
prioritize employment opportunities for Africa’s youth.
In support of Prosper Africa, this past October, the President signed
into law the BUILD Act, establishing the U.S. International Development
Finance Corporation, or IDFC. This initiative more than doubles (from
$29 billion to $60 billion) the amount of capital we can use to support
private sector investment in developing countries. With the BUILD Act
and the IDFC, we are well- positioned to unleash the full potential of
private sector-led growth in Africa.
Already, the United States remains the largest private foreign
investor in Africa. From 2001 to 2017, our yearly investment in Africa
increased from $9 billion to $50 billion, creating new businesses
opportunities across the continent. But even with that increase, we are
merely scratching the surface of the available pool of capital the
United States can invest in Africa.
Since 2000, the African Growth and Opportunity Act, or AGOA, has been
at the center of U.S.-African engagement on trade and investment,
offering duty-free market access to eligible African countries and
incentivizing inclusive economic growth and regional stability. Angola
is eligible for preferential trade benefits under AGOA, and we continue
to explore how to maximize those benefits.
I can’t stress enough that the United
States values our long-standing and wide-ranging cooperation with our
African partners, especially with a strategic partner like Angola.
Angola is the third-largest trading partner of the United States in
sub-Saharan Africa, with bilateral trade valued at $3.5 billion in 2017.
American companies are among the largest investors in Angola-many of
them for decades.
I had the privilege and honor to meet today with President Lourenco
and then with Foreign Minister Augusto earlier Based on our
conversations, I know that the Lourenco Administration is committed to
increasing commercial connections and cooperation with the United
States.
We see great opportunity in Angola’s economic diversification policy
that will bring new U.S. products and services to Angola. U.S.
companies, as global leaders in many sectors, can contribute greatly to
Angola’s development by providing high-quality goods and services
through transparent processes. In that vein, the United States joined
with other nations to vote affirmatively for the International Monetary
Fund’s $3.7 billion credit line for Angola in December to support the
country and the administration’s economic reforms.
But based on my discussions with business leaders over the past
several days I know the picture isn’t perfect. Companies, U.S. companies
in particular, do face barriers to trade in Angola. To remedy this,
some time ago, ten years ago we signed a trade and investment framework
agreement to promote greater economic cooperation between our two
countries. We are pursuing negotiations to strengthen this trade
relationship and reduce trade barriers to the mutual benefit of our
citizens. It’s been a failing, I think, of both of our sides, the United
States and Angola that we haven’t pursued these negotiations under the
TIFA framework more aggressively, but we’re committed to doing that.
I’m proud to say that we have made progress. We hosted two successful
visits with the U.S. Treasury Department, during which our
representatives met with the Ministry of Finance, Financial Intelligence
Unit and Bank of Angola representatives. Based on these meetings and
the progress Angola has made, we are now able to offer a Department of
Treasury Technical Advisor here at the Embassy in 2019.
President Lourenco’s commitment to combatting corruption is another
significant positive signal to foreign investors. The creation of a
transparent business environment will generate even greater U.S. private
sector interest in trade and investment in Angola. Likewise,
parliament’s passage of the new private investment law and relaxed visa
requirements will make it easier for private foreign investors to pursue
opportunities in Angola.
Apart from trade, President Lourenco and I talked about several
pressing matters of international peace and security in our meeting this
morning.
Chief among those concerns is the ongoing humanitarian crisis in
Venezuela. On this, our message is clear: Angola has a place next to
Brazil, Portugal, and over 50 other countries that have recognized Juan
Guiado as the interim President of Venezuela-we hope that the Angolan
government will join us in supporting democracy in Venezuela. Democratic
countries everywhere should stand up for democratic governments
anywhere.
On the African continent, our foreign policy is based on the premise
that Africans must be responsible for solving African problems. The
second element of our Africa strategy emphasizes African ownership of
responses to regional threats to peace and security.
Security institutions must be effective, accountable, and capable for
African governments to respond to regional threats to peace and
security. That’s why we have provided peacekeeper training and equipment
to over 20 African countries.? We are encouraged by Angola’s deployment
in support of regional peacekeeping efforts in Lesotho; and by Angola’s
leadership in encouraging the Democratic Republic of the Congo in its
first-ever political transition of power.
We value Angola as a security partner, and have worked with Angolan and regional maritime forces in combatting privac
y,
oil bunkering, and illegal fishing. Our partnership has resulted in
increased sub-regional and international cooperation to strengthen
maritime security, which includes the security of many of the oil
companies represented here today.
In fact, a multinational maritime security exercise, Operation
Obangame Express, is taking place right now off the coast of Angola.
Moreover, Angola has demonstrated increasing leadership in maritime
security in the Gulf of Guinea Commission, helping to pave the way for
greater economic independence and increased legitimate trade to and from
the continent.
Angolan military officers have attended U.S. military institutions
and participated in AFRICOM-led military training exercises, focused on
maritime security, peacekeeping, and medical readiness. This exposure
introduces foreign defense personnel to U.S. military training,
doctrine, and values. It also helps to build the capacity of local
security forces to counter national and transnational threats, while
strengthening the rule of law and security services’ accountability and
performance.
Prosperity, security, and stability require strong and accountable
democratic institutions. That is why the third core element of our
Africa strategy emphasizes self-reliance, good governance, and respect
for human rights. Ultimately, we want to end the need for foreign
assistance, for the benefit of all. I believe we share the goal of
achieving substantial, measurable progress in economic growth;
advancement of good government; creation of a level playing field for
U.S. and all other international investors; and of course strong rule of
law.
While there is no magic formula for?maximizing a nation’s overall
development, expanding opportunities for education and training of youth
populations is one of the most crucial ingredients. Several years ago,
the United States created the Young African Leaders Initiative, or YALI,
to provide a new generation with the leadership and entrepreneurial
skills needed to lead their countries into a brighter future.
These young leaders, including more than 100 in Angola, are making a
great impact by creating jobs and developing innovative products and
services. They are stepping into leadership positions in their
communities and governments. By increasing employment and
entrepreneurial opportunities for Africa’s youth, economic ingenuity and
prosperity will flourish, ultimately serving as a counter weight to
violent extremism, poverty, and despair.
With so many opportunities at Angola’s front door, it’s important
that adequate conditions are met to sustain a healthy workforce. We know
that many of you in this room understand this urgent need because you
have personally worked to improve health outcomes for Angola.
With support of the Association of Oil and Gas Exploration and
Production Companies, USAID mobilized $1.2 million to build a hospital
to benefit Angolans affected by floods in 2015 in the Port City of
Lobito, Benguela Province. Construction was completed in 2018, and the
Benguela province has equipped the hospital in anticipation of its
inauguration this month.
From 2010-2017, ExxonMobil donated $500,000 annually to support the
prevention and control of malaria, and we are now working with Chevron
to expand outreach to Angola’s populations at highest risk for HIV/AIDS.
The United States wants to encourage African leaders to choose
sustainable foreign investments that help their countries become
self-reliant, unlike those investments offered by China that impose
undue costs.
We ask countries to consider how their relationship with China aligns
with their ambitions for sustainable development. Under our Africa
Strategy, the United States will expand economic ties on the basis of
mutual respect, and we will help African nations take control of their
economic destinies.
We encourage Angola and other African countries to choose
high-quality, transparent, inclusive, and sustainable foreign
investment, not predatory investment and development initiatives that
raise debt to unsustainable levels. These loans can impose unnecessary
burdens on recipients that jeopardize their sovereignty.
Just as we encourage countries to consider the implications of
partnership with China and how it aligns with your own sustainability
and prosperity goals, we do the same with regard to Russia. Russia often
utilizes coercive, corrupt, and covert means to attempt to influence
sovereign states, including their security and economic partnerships.
Angola of course has ties to Russia bound into its history. But as it
builds a future business-friendly, more open, democratic country, it
should look to countries that are better models of transparency and
economic sustainability.
The bottom line is this: the United States has an unwavering
commitment to Angola and countries across Africa. No other nation
matches the breadth and depth of the United States’ engagement on the
continent, from health and education, to supporting women and youth,
engaging civil society, and bringing electricity and water to millions
of people.
Africa is the dynamic continent of the future, and Angola has proven itself as an example for other African nations to follow.
An old African proverb instructs that we cannot play the drum with
just one hand. Let us continue to work together, like two hands playing a
drum, to promote shared American and Angolan prosperity and security.
Thank you again for the honor and privilege of speaking to you here
today, and I look forward to our continued engagement with Angola and
throughout Africa. Thank you.
