Developing strategies to end hunger
 

Moving Forward from the U.S.-Africa Leaders Summit

Last week, President Obama hosted the historic U.S.-Africa Leaders Summit in Washington, DC. The summit, whose theme was Investing in the Next Generation, brought together 50 leaders from across the African continent, members of Africa’s civil society, private sector actors, and various faith communities. The three-day summit, August 4-6, focused on strengthening trade relations between the United States and African nations and opening new economic partnerships that are based on mutual responsibility and mutual respect.

The summit took place in the context of the Obama administration’s deepening engagement with African countries. In June 2012, President Obama released the U.S. Strategy Toward Sub-Saharan Africa, which outlined a comprehensive U.S. policy for the region. This strategy reflects and builds on many of the initiatives launched earlier in Obama’s presidency, such as Feed the Future. In addition, the Strategy supports the integration of existing U.S. government initiatives to boost broad-based economic growth in Africa, including through trade and investment.

SummitPhoto: White House

The African Growth and Opportunity Act (AGOA), signed into law in 2000 by President Clinton, remains the most important piece of legislation that defines trade relationships between the United States and Sub-Saharan Africa. Since the legislation went into effect, the region’s exports have increased by more than 500 percent, from $8.15 billion in 2001 to $53.8 billion in 2011.  AGOA applies to only a small portion of these exports, since during this period, about 95 percent of Africa’s exports outside the continent were oil and gas.

AGOA’s achievements illustrate its great potential to spur economic growth. Agriculture-led growth, which has the greatest impact on poverty, is still urgently needed. The food price crisis of 2007-2008, followed by the worldwide economic downturn, have meant an increase in hunger and malnutrition and continued high poverty rates. An estimated 80 percent of Africa’s hungry and poor people support themselves through agriculture.

AGOA is due for reauthorization in 2015. Bread for the World championed the authorization of AGOA in 2000 and has remained engaged ever since. As Bread for the World President Rev. David Beckmann said during last week’s summit, facilitating regional trade that supports smallholder farmers and local businesses amplifies the efforts of U.S. government-funded programs such as Feed the Future and the Millennium Challenge Corporation (MCC). U.S. agriculture and trade policy – for example, the structure of import tariffs and an assortment of commodity payments made to U.S. farmers -- has sometimes undermined African countries’ efforts to use agriculture to take the first steps out of poverty. A robust AGOA, however, has the potential to boost the livelihoods of hungry and poor people while allowing them to determine their own development path and invest in the future generations.

During his visit to three African countries in 2013, President Obama announced two new initiatives designed to spur economic growth and investment on the continent. Trade Africa aims to both encourage greater regional integration and increase trade and investment between the United States and sub-Saharan African countries by aligning U.S. assistance with national government and private sector priorities. 

Power Africa, on the other hand, is led by the private sector. The goal of this innovative initiative is to double access to electricity in Africa, where more than 600 million people currently lack access. At the summit, Obama announced a renewed commitment to Power Africa, pledging a new level of $300 million in annual funding to expand the project’s reach. The new goal is to provide 30,000 megawatts in additional electrical capacity, increasing access by at least 60 million households and businesses. The president also announced $6 billion in new private sector commitments, bringing the total private sector investment in Power Africa to more than $20 billion. Some of the additional commitments are part of Beyond the Grid, a new sub-initiative announced at the U.S-Africa Energy Ministerial meeting in June of this year. Beyond the Grid will foster private investment in off-grid and small-scale energy solutions that focus on remote areas.

So far under Power Africa, 12 U.S. government agencies have begun working closely with African governments, both to identify and overcome the key legal, regulatory, and policy constraints to investment and to implement policies that will enable good governance and sustainable growth for Africa’s growing power sector. Early experience shows that carefully targeted capacity building in trade and investment aids efforts to reduce hunger and malnutrition and achieve other critical development initiatives. Significant progress is made possible, for example, by reducing post-harvest losses associated with lack of access to cold storage facilities.

The Africa Leaders Summit highlighted several opportunities for trade and investment to intersect with efforts to end hunger and malnutrition. To make the most of these opportunities, U.S. government initiatives should adopt a coordinated approach that is data-driven, goal-oriented, and strategic, and that builds on the experience of relatively new U.S. foreign assistance programs such as the President's Emergency Plan for AIDS Relief (PEPFAR), the Millennium Challenge Corporation (MCC), and Feed the Future.

Faustine Wabwire

 

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