WHILE RICH IN RESOURCES, SUB-SAHARAN AFRICA HAS MADE 
LITTLE ECONOMIC PROGRESS. BUT THAT MAY NOW BE CHANGING WITH 
FREE-MARKET POLICIES AND THE SUBSIDING OF WARFARE IN MUCH OF 
AFRICA. SOME INVESTORS SAY THEY ARE BULLISH ABOUT THIS NEW 
FRONTIER OF OPPORTUNITY. 

SUB-SAHARAN AFRICA HAS A ONE PERCENT SHARE OF WORLD TRADE 
AND ATTRACTS LESS THAN THREE PERCENT OF THE PRIVATE CAPITAL 
INVESTED IN DEVELOPING COUNTRIES. IT RECEIVES EVEN LESS THAN ONE 
PERCENT OF U-S DIRECT INVESTMENT ABROAD.

AMERICAN BUSINESS EXECUTIVES HAVE TENDED TO VIEW AFRICA AS "ONE 
COUNTRY, ONE MESS," SAYS WITNEY SCHNEIDMAN, SENIOR VICE PRESIDENT
AT SAMUELS INTERNATIONAL ASSOCIATES, A TRADE AND INVESTMENT 
CONSULTING FIRM IN WASHINGTON. 

BUT THAT OUTLOOK IS CHANGING, ADDS MR. SCHNEIDMAN. AN INCREASING 
NUMBER OF AFRICAN NATIONS HAVE PURSUED ECONOMIC AND POLITICAL 
REFORM DURING THE LAST 10 YEARS WITH RESULTS TO SHOW FOR IT:

         WE ARE STARTING TO SEE GROWTH IN AFRICAN ECONOMIES, 
         WHICH HAS NOT BEEN THERE FOR SOME TIME. WE ARE BEGINNING
         TO SEE INVESTOR-FRIENDLY POLICIES, AND ALSO WE ARE 
         BEGINNING TO SEE A LOT OF PRIVATIZATION OF STATE ASSETS,
         WHICH CREATES OPPORTUNITIES FOR FOREIGN INVESTORS AND 
         MAKES THEM THINK ABOUT THE POTENTIAL OF AFRICAN MARKETS.

THE ECONOMIES OF ANGOLA, LESOTHO, TOGO, MALAWI, UGANDA, IVORY 
COAST AND MAURITIUS HAVE BEEN GROWING AT ANNUAL RATES OF SEVEN TO
10 PERCENT. MANY OTHER COUNTRIES HAVE REDUCED INFLATION AND 
BUDGET DEFICITS. MULTI-PARTY ELECTIONS HAVE BEEN HELD IN 27 
AFRICAN NATIONS.

POLITICAL INSTABILITY AND VIOLENCE DISCOURAGE INVESTMENT IN SUCH 
COUNTRIES AS CONGO-BRAZZAVILLE, SIERRA LEONE AND SOMALIA. BUT 
WHEN THE WARS END AND A REASONABLE GOVERNMENT TAKES POWER, 
PROGRESS BECOMES POSSIBLE.

MR. SCHNEIDMAN CITES SOUTH AFRICA:
         THE CASE OF SOUTH AFRICA HAS REALLY BEEN A STIMULUS TO 
         U-S INVESTMENT IN THE REGION. THERE IS A GROWING GOOD 
         MOOD ABOUT DOING BUSINESS IN SOUTH AFRICA, AND WHAT I 
         HAVE SEEN IS THAT ONCE BUSINESSES GET DOWN TO SOUTH 
         AFRICA, THEY BEGIN LOOKING NORTH AND START ASKING 
         QUESTIONS ABOUT THE SOUTHERN AFRICAN REGION.

U-S INVESTMENT IN SUB-SAHARAN AFRICA HAS BEEN GIVEN A BOOST BY 
THE CLINTON ADMINISTRATION AND THE U-S CONGRESS. A "GROWTH AND 
OPPORTUNITY" BILL IS EXPECTED TO BE APPROVED THIS FALL THAT WILL 
ELIMINATE DUTIES ON A NUMBER OF AFRICAN PRODUCTS AND RAISE THE 
QUOTA ON AFRICAN TEXTILE IMPORTS:

         THE LEVEL OF TEXTILES COMING FROM AFRICA ARE NOT 
         THREATENING TO ANYBODY. I THINK AMERICAN UNIONS ARE 
         MORE CONCERNED ABOUT THE PRINCIPLE THAN THE VOLUME PER 
         SE. I THINK WITH SOME DIALOGUE ON ALL SIDES, THIS ISSUE 
         CAN BE ADDRESSED SO THAT AFRICANS CAN HAVE THE 
         OPPORTUNITY TO TAKE ADVANTAGE OF THE AMERICAN TEXTILE 
         MARKET IN AN AREA THAT IS OF GREAT IMPORTANCE TO THE 
         AFRICANS.

MELVIN FOOTE, EXECUTIVE DIRECTOR OF THE WASHINGTON-BASED 
CONSTITUENCY FOR AFRICA, SAYS THE NEW LEGISLATION IS CRUCIAL:

         WE THINK THE TRADE INITIATIVE ITSELF WILL HELP ENCOURAGE
         THE AMERICAN PRIVATE SECTOR TO INVEST IN AFRICA. THE 
         PRIVATE SECTOR, BY AND LARGE, HAS ALWAYS FOLLOWED THE 
         ADMINISTRATION'S OR THE GOVERNMENT'S POLICIES. AND IF 
         THEY SEE THE GOVERNMENT IS LOOKING STRONGLY AT AFRICA, 
         YOU CAN BET YOUR BOTTOM DOLLAR THAT THE PRIVATE SECTOR 
         IS GOING TO DO LIKEWISE.

PLENTY OF PROBLEMS REMAIN. POVERTY IS WIDESPREAD IN AFRICA. 
HEALTH AND EDUCATION ARE POOR. AFRICAN NATIONS' HIGH TARIFFS 
BLOCK TRADE AMONG THEMSELVES. BUT MR. FOOTE AND OTHERS SEE 
SUB-SAHARAN AFRICA ON THE BRINK OF THE KIND OF ECONOMIC 
DEVELOPMENT THAT HAS TRANSFORMED OTHER PARTS OF THE WORLD.  

05-Aug-97
Source: Voice of America

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