Address all communications to

Secretary to the Commission

United States International Trade Commission

Washington, DC 20436

U.S. International Trade Commission

COMMISSIONERS

Stephen Koplan

Deanna Tanner Okun, Chairman

Lynn M. Bragg

Robert A. Rogowsky

Director of Operations

Marcia E. Miller

Jennifer A. Hillman, Vice Chairman

Robert B. Koopman

Director of Economics
U.S. International Trade Commission

Washington, DC 20436

U.S. Trade and Investment With

Sub-Saharan Africa

Third Annual Report

Investigation No. 332-415

December 2002

www.usitc.gov

Publication 3552
Address all communications to

Secretary to the Commission

United States International Trade Commission

Washington, DC 20436

This report was principally prepared by

Arona Butcher, Chief, Country and Regional Analysis Division

Laurie-Ann Agama, Project Leader

Nannette Christ, Deputy Project Leader

Douglas Newman, Office of Industries Coordinator

Office of Economics

Edward Wilson, John Benedetto, Cindy Cohen, John Giamalva, and Diane Manifold

Office of Industries

Tsedale Assefa, Laura Bloodgood, Cynthia Foreso, Alfred Forstall, William Greene,

Eric Land, Christopher Mapes, Laura Rodriguez, and Judith Webster

Student Interns

Cory Davidson, Matthew Dixson, Erin Gammill, Adam McKean,

Lynn Miles, and Michael Simmons

Office of Information Services

Andy Rylyk, Patricia Augustine, Barbara Bobbitt, Frank Edwards,

Patricia Holland, and Peggy Verdine

Office of Publishing

Reviewers

James Stamps and Elizabeth Nesbitt

Supporting assistance was provided by:

Patricia M. Thomas, Office of Economics
i

EXECUTIVE SUMMARY

This report is the third in a 5-year series documenting U.S.-sub-Saharan Africa (SSA)

trade and investment flows. The U.S. International Trade Commission (Commission or

USITC) compiled this report at the request of the United States Trade Representative

(USTR). In a letter dated April 12, 2000,1 the United States Trade Representative asked

the U.S. International Trade Commission to submit a report that provides: an analysis

of U.S.-SSA merchandise trade and services trade flows; country-by-country profiles

of the economies of each SSA country, including information on major trading

partners, and a summary of the trade and investment climates in each; a summary of

U.S. foreign and total direct investment and portfolio investment in SSA; information

on SSA privatization efforts; updates on progress in regional integration in SSA,

including statistics on U.S. trade with the major regional groupings; and a summary of

multilateral and U.S. bilateral assistance to SSA countries.

In a letter dated July 10, 2002,2 the USTR requested the Commission to provide the

following additional information: the value of U.S. imports from SSA under the African

Growth and Opportunity Act (AGOA) including its Generalized System of Preferences

(GSP) provisions, by beneficiary country and major product categories; information

on investment developments related to AGOA; a description and analysis of major

SSA export sectors; expanded information on regional integration in SSA, including

information on the Communauté Economique et Monétaire de l’Afrique Centrale

(CEMAC); a description of major U.S. trade capacity-building initiatives related to

SSA; and a description of major non-U.S. trade preference programs for countries in

SSA.

The data included in this report generally cover either calendar or fiscal year 2001,

depending on data availability. In cases where it is useful to show a trend, data for

1997 through 2001 are provided. In addition, when possible, up-to-date

developments in economic, social, trade, and commercial policies are included for the

period January 2002 through mid-year.

In general, a number of factors, including political and economic transitions in several

sub-Saharan African nations, resulted in a precipitous decline in trade and a related

drop in investment flows with this region from 1999 forward. However, trade began a

modest recovery in 2001 and that trend continued through the first half of 2002. The

next section summarizes major developments in U.S.-SSA trade and investment

trends.

1 Copy of the request letter is in appendix A.

2 Copy of the request letter is in appendix A.
ii

U.S.-Sub-Saharan Africa Trade

S In 2001, total U.S. merchandise exports to sub-Saharan Africa totaled $6.8

billion, up from $5.6 billion in 2000 (figure ES-1). U.S. exports to the region in

the transportation sector increased by 58.8 percent, but declined in the

footwear sector by 28.7 percent. U.S. exports of all nonpetroleum products

rose by 21.3 percent to $6.7 billion, led by large increases in exports of

transportation equipment and miscellaneous manufactures--especially

airplanes and other aircrafts, parts for boring and sinking machinery, and

parts and accessories for motor vehicles.

S Total U.S. merchandise imports from the region declined 5.2 percent in 2001

to $21.1 billion, primarily due to falling petroleum prices and decreased

imports of crude petroleum from Nigeria. Nonpetroleum imports decreased

by 17.8 percent, while transportation equipment imports increased by 115.9

percent.

S The United States posted a cross-border surplus in services trade of $2.6

billion in 2000. The predominant U.S. cross-border service exports to Africa

-25

-20

-15

-10

-5

0

5

10

15

20

25

1997 1998 1999 2000 2001

Billion dollars

U.S. exports

U.S. imports

Trade balance

Figure ES-1

U.S. trade with sub-Saharan Africa, 1997-2001

Source: Compiled from official statistics of the U.S. Department of Commerce.
iii

included tourism, freight transport, and education. U.S. service imports were

mainly travel and tourism, passenger transport, and freight transport. Port

services and telecommunication services also accounted for significant shares

of U.S. service imports from Africa.

African Growth and Opportunity Act

S Table ES-1 lists the SSA countries designated as AGOA beneficiaries as of

November 22, 2002.

Table ES-1

AGOA beneficiary countries, as of November 22, 2002 (36)

Benin Guinea Nigeria

Botswana Guinea-Bissau Republic of the Congo

Cape Verde Kenya Rwanda

Cameroon Lesotho São Tomé and Principe

Central African Republic Madagascar Senegal

Chad Malawi Seychelles

Côte d’Ivoire Mali Sierra Leone

Djibouti Mauritania South Africa

Eritrea Mauritius Swaziland

Ethiopia Mozambique Tanzania

Gabon Namibia Uganda

Ghana Niger Zambia

Source: USDOC, “Country Eligibility List,” found at Internet address http://www.agoa.gov,

retrieved Nov. 22, 2002.

S U.S. imports under the African Growth and Opportunity Act (AGOA) first

entered the United States in January 2001. Total imports from SSA countries

eligible for the AGOA benefits (including the GSP provisions) totaled $8.2

billion in 2001 (figure ES-2).

S The largest share of U.S. imports under AGOA came from Nigeria (69.5

percent), followed by Gabon (11.5 percent) and South Africa (11.3 percent).

These imports were dominated by U.S. purchases of energy-related products

in 2001. The remaining AGOA imports were comprised of smaller quantities

of textiles and apparel, minerals and metals, transportation equipment,

agricultural products, and chemicals and related products.
iv

Note.—AGOA imports include GSP provisions.

Source: Compiled from official statistics of the U.S. Department of Commerce.

Figure ES-2

U.S. imports from the world and sub-Saharan Africa, 2001

100

90

80

70

60

50

40

30

20

10

0

Rest

of

World

98%

SSA

2%

Total

SSA

imports

Total

imports

from

AGOA

countries

Total

AGOA

imports

Non-AGOA

Countries

17%

Non-AGOA

53%

AGOA

47%

Non-Energy

17%

Energy

Sector

83%

AGOA

Countries

83%

Total U.S. imports Total SSA imports

Total imports from

AGOA countries Total AGOA imports $1,132,635 $21,061 $17,574 $8,179 Million dollars Percent

S Table ES-2 presents AGOA-related investment in SSA. Evidence of AGOA’s

investment impact manifested itself in increasing foreign direct investment

(FDI) flows, as well as increased employment and output in targeted

industries. Although investment is concentrated in southern SSA and in the

textile and apparel industry, examples of AGOA-related investment emerged

across the continent in a number of sectors.

Table ES-2

Selected examples of recent AGOA-related investment, employment

increases, and industry output expansion, 2000-2002

Country Examples

Botswana S As of early 2002, five companies in the textiles sector had obtained necessary approval to commence exports under AGOA.1

Côte d’Ivoire S In anticipation of AGOA qualification, Henan Youbioa Textile (China), in

partnership with an Ivorian entrepreneur, prepared to invest $9 million in a

new textile factory to export under AGOA.2

Kenya S Economy-wide, AGOA is expected to create 50,000 jobs directly and

150,000 jobs indirectly.3
v

Table ES-2-Continued

Selected examples of recent AGOA-related investment, employment

increases, and industry output expansion, 2000-2002

Country Examples

KenyaContinuedS AGOA helped Kenya revive its cotton growing sector. From August 2000

to July 2001, Kenyan textile exports to the United States quadrupled, thereby encouraging cotton farmers to increase production.4

Lesotho S Textile manufacturing projects investments were the main source of foreign

exchange and new employment in Lesotho. Most investors were from Taiwan, South Africa, and South Korea.5

S In 1999, 17,000 textiles workers were employed in the industry, into which

companies, most of Asian origin, have invested millions to access the U.S.

market through the AGOA program. As of January 2002, there were

40,000 employees, each earning an average of $80 a month.6

S The U.S. market has become an increasingly important destination for

clothing and footwear exports, and accounted for nearly half of Lesotho’s

total exports. This trend is expected to continue as the country continues to

benefit from AGOA.7

S The Swaziland factory, combined with Nien Hsing’s (Taiwan) factories in

Lesotho, was expected to give the company a monthly output of 93,000

dozen garments.8

S The Lesotho government received plans for over $120 million in new investments aimed at exporting products under the AGOA program.9

Madagascar S AGOA was a significant incentive for new investment in Madagascar,

which represented $113 million, generating 52 new apparel companies

and 43,000 new jobs in 2001.10

S Since Madagascar qualified for AGOA, economy-wide employment increased by 10 percent.11

S Madagascar’s textile and apparel exports to the United States in 2001

increased 83 percent. This increase was due, in part, to the special apparel

provision of AGOA which allows poorer countries to use any textile materials for exports.12

S Foreign investments rose sharply in Madagascar after it qualified for trade

benefits under AGOA.13

S Madagascar’s exports of textiles and garments to the United States were

$64.5 million in the first half of 2001, thereby encouraging businesses to

triple industrial investment. Investment in the industry in the first half of

2001 represented a 200 percent increase over the whole of 2000.14

Mauritius S According to the Mauritius Freeport Authority, AGOA encouraged Mast

Industries Ltd. (U.S.), the GAP (U.S.), Eddie Bauer (U.S.), and William E.

Conner & Assoc. (Hong Kong) to open regional buying offices in the country. Also in the textile sector, Shenxi (China) was building a $60 million

spinning mill. CMT Ltd. (Mauritius) and Indo Count Industries Ltd. (India)

jointly invested $40 million in an additional cotton spinning plant. The

Mauritius Board of Investment reviewed other projects worth over $100

million submitted by Indian, Swiss, and Italian companies.15

See footnotes at end of table.
vi

Table ES-2-Continued

Selected examples of recent AGOA-related investment, employment

increases, and industry output expansion, 2000-2002-Cont.

Country Examples

Namibia S In early 2002, Ramatex Textiles (Malaysia) constructed an integrated textile

and clothing complex in Windhoek’s Otjimuise suburb. The Namibia Investment Center stated that negotiations were underway for two additional

factories.16

Rwanda S The Hong Kong-based firm Competent Group of Garment Manufacturing

announced plans to invest $11 million to establish a manufacturing plant in

Rwanda. The plant is expected to provide employment for 2,500 Rwandans

and to produce knitwear and cotton clothing for export to the U.S., European, and African markets.17

South Africa S In August 2001, Frame Textiles (South Africa) planned investments worth

$25 million over the following two years to boost competitiveness and capacity in a bid to penetrate the U.S. market more effectively.18

S A representative of the Clothing Industry Export Council stated that AGOArelated activities and investment could lead to 300,000 new jobs in the

clothing industry and a further 100,000 jobs in the textiles industry, with

additional job opportunities in the agricultural sector from increased cotton

production.19

S As of mid-2002, nearly 90,000 South Africans were employed in jobs

related to industries accessing AGOA benefits.20

S As of September 2001, the main South African sectors to benefit from

AGOA were the apparel, steel, and automotive sectors, as well as certain

sectors of the fruit industry. Some parts of the fruit industry held a 50 percent share in the U.S. market.21

S According to the National Association of Automobile Manufactures of

South Africa, the increase in exports of locally assembled cars and commercial vehicles in 2001 was, in part, due to AGOA.22

S In October 2000, Ramatex Textiles (Malaysia) invested $110 million in a

textile mill and export garment factory in the Eastern Cape in an AGOArelated investment.23

Swaziland S In Swaziland, Nan Woei Industrial (Taiwan) invested $2.4 million in new

sewing machines. Nien Hsing Textile opened a new denim plant in Swaziland, with a capacity of 45,000 dozen garments a month. The Swaziland

factory, combined with Nien Hsing’s factories in Lesotho, is expected to

give the company a monthly output of 93,000 dozen garments. Nien Hsing

invested NT $1 billion ($28.9 million) in a denim fabric mill which will produce 1.6 million yards per month.24

S The minister of finance stated that 18 foreign manufactures had indicated

their intention to invest a total of E188 million ($21.9 million) in 2002 in

order to gain U.S. market access through AGOA.25

See footnotes at end of table.
vii

Table ES-2-Continued

Selected examples of recent AGOA-related investment, employment

increases, and industry output expansion, 2000-2002-Cont.

Country Examples

S AGOA helped attract Tex-Ray (Taiwan) to Swaziland. The company invested $24 million to expand its factory. This investment is expected to

create 4,000 new jobs.26

Uganda S In February 2002, the Ugandan minister of Tourism and Trade launched

Star Coffee. The firm invested about Shs 150 million ($85,000) in processing the coffee. For the first time in 100 years, a Ugandan firm added value

to coffee and exported it as a processed product. The coffee was processed into instant coffee and exported to the United States.27

S In order to take advantage of AGOA, the government encouraged farmers

to grow cotton through its Cotton Development Organization. The historical

cotton growing areas have resumed cotton production, and Uganda boasts

of its excellent long staple cotton.28

S OTK (South Africa) bought a cotton gin in Uganda to supply South African

spinners with raw materials to fully exploit AGOA.29

1 EIU Viewswire, “Botswana: Business: Industry Overview: Manufacturing,” Apr. 8, 2002.

2 EIU Viewswire, “Côte d’Ivoire: Business: Industry Overview: Manufacturing,” Apr. 16, 2002.

3 Inter Press Service, “Economy/ Africa Grew Faster in Developing World in 2001-Study,” May

31, 2002.

4 EIU Viewswire, “Sub-Saharan Africa: Economy: News Analysis: U.S. Trade Legislation has

Brought Benefits for Some,” Aug. 31, 2001.

5 U.S. Department of State, “Lesotho Investment Climate Statement 2002,” MASERU 00407,

found at Internet address http://www.itc.newsedge-web.com, retrieved on June 14, 2002.

6 The Survivor (Lesotho), “Africa a Focus for U.S. Investment,” Jan. 24, 2002.

7 EIU Viewswire, “Lesotho: Business: Industry Overview: Manufacturing,” Apr. 8, 2002.

8 Manchester Trade: Africa Business & Policy Update, “Taiwan: Garment Makers Expand SubSaharan Africa Plants,” July 25, 2002.

9 Inter Press Service, “Economy/ Africa Grew Faster in Developing World in 2001-Study,” May

31, 2002.

10 U.S. Department of State, Cable ANTANA 01768, Aug. 2, 2002.

11 Manchester Trade: Africa Business & Policy Update, “USTR Robert B. Zoellick Visits Sub-Saharan Africa February 14-20,” Feb. 21, 2002.

12 Manchester Trade: Africa Business & Policy Update, “Investment Key to AGOA Success,” July

31, 2002.

13 Inter Press Service, “Economy/ Africa Grew Faster in Developing World in 2001-Study,”

May 31, 2002.

14 EIU Viewswire, “Madagascar: Economy: News Analysis: Disruption to Exports Threatens

Trade,” Apr. 2, 2002.

15 U.S. Department of State, Cable PORT L 00922, Aug. 9, 2002.

16 EIU Viewswire, “Namibia: Business: News Analysis: Ramatex Textiles Complex on Track,”

Feb. 14, 2002.

17 BBC Monitoring, “Hong Kong Textile Company Pledges to Invest 11m Dollars in Rwanda,”

Nov. 19, 2001.

18 EIU Viewswire, “Sub-Saharan Africa: Economy: News Analysis: U.S. Trade Legislation has

Brought Benefits for Some,” Aug. 31, 2001.

19 EIU Viewswire, “South Africa: Business: News Analysis: Textile Firms Come to Terms with

Globalization,” Dec. 8, 2002.

20 The Associated Press, “Report Shows U.S. Trade Deal Boosting South Africa’s Economy,”

Aug. 16, 2002.
viii

Table ES-2-Footnotes Continued

21 Business Monitor International, “South Africa: Quarterly Economic Outlook-Q4 2001 Economic Outlook,” Sept. 28, 2002.

22 EIU Viewswire, “South Africa: Business: News Analysis: Automotive and Pharmaceuticals

Updates,” Jan. 31, 2001.

23 EIU Viewswire, “South Africa: Economy: News Analysis: Country Seeks Inroads into U.S.

Market,” Nov. 15, 2000.

24 Manchester Trade: Africa Business & Policy Update, “Taiwan: Garment Makers Expand SubSaharan Africa Plants,” July 25, 2002. (1 US $ = 34.7 NT.)

25 EIU Viewswire, “Swaziland: Economy: News Analysis: Concern Grows Over AGOA Bene- fits,” May 28, 2002. (1 US $ = 8.6 E.)

26 EIU Viewswire, “Swaziland: Economy: News Analysis: U.S. has Renewed AGOA Eligibility,”

Feb. 14, 2002.

27 Katamba Mohammed, “Local Firm Produces Instant Coffee for American Market,” The Monitor (Kampala), Feb. 22, 2002. (1 US $ = 1,755.7 Shs.)

28 U.S. Department of State, Cable KAMPAL 02074, Aug. 8, 2002.

29 Jim Fisher-Thompson, “AGOA Creating New Jobs and Investment in South Africa: USTR

Zoellick Will Visit the Country,” Manchester Trade: Africa Business & Policy Update, Feb. 12, 2002.

S Table ES-3 presents examples where AGOA facilitated political reforms

conducive to establishing investment-friendly environments. In an effort to

establish and to maintain AGOA eligibility, various governments instituted

changes, including reducing bureaucratic red tape, and improving and

reforming land-use policies.

Foreign direct investment in sub-Saharan Africa

S In 2001, SSA received $14.3 billion in investments, or 7.7 percent of global

foreign investment flows to developing countries. Almost one-half of 2001

inflows reflected the financial restructuring resulting from the sale of a South

African company to a British firm. Without this transaction, investment flows

would have totaled an estimated $6.9 billion, or a 9.2-percent decline from

2000.

S The drop in foreign investment flows was attributed to armed conflicts,

political and policy uncertainty, and social problems that discouraged foreign

investment. SSA countries were also adversely affected by a decrease in

tourism activities after the terrorist attacks in the United States on September

11, 2001, and by low commodity prices that resulted in reduced investment

flows to those sectors.

S In 2000, South Africa, Angola, and Nigeria were the largest recipients of

global and U.S. foreign investment flows to SSA. U.S. investments were

principally in the petroleum, mining, and manufacturing sectors.
ix

Table ES-3

Selected examples of AGOA-related facilitation of investment and reform,

2000-2002

Country Examples

Madagascar S In an effort to maintain the AGOA-driven investment levels in the textile

industry, the government announced plans to reduce regulatory hurdles,

such as reducing waiting time for securing official approval for investment

in the export processing zone and allowing the development of export

processing zones on privately-owned land.1

Mauritius S An advisor to the Prime Minister of Mauritius urged Indian businessmen to

make investments in order to take advantage of AGOA.2

S The Mauritian Information Technology Minister, while leading an information technology and telecommunications delegation to India, stated, “Our

inclusion in the Africa Growth and Opportunities Act can also be leveraged [as an investment opportunity].”3

Nigeria S The Nigerian government assisted Nigerian manufacturers in exporting

goods to the United States under the AGOA program in order to achieve

export expansion and diversification, as well as to improve the Nigerian

economy.4

Senegal S The government expended significant energy to attract investors interested

in relocating existing apparel factories to Senegal, in particular from Mauritius, in order to access AGOA benefits.5

Swaziland S In 2001, Swaziland was warned that it would lose its AGOA benefits if its

human rights record did not improve. The embassy of Taiwan in Swaziland

expressed, for the first time, disapproval towards an action of the Swaziland government. Taiwan is a significant investment source for the

manufacturing sector, which the Swaziland government is trying to develop

to take advantage of the AGOA program.6

Tanzania S In February 2002, Tanzania qualified for textile and apparel benefits under AGOA. AGOA eligibility conditions were similar to eligibility criteria

for the IMF/World Bank HIPC initiative. Policy initiatives aimed at attaining

AGOA eligibility assisted Tanzania to also meet IMF and World Bank requirements, and thereby to qualify for the HIPC debt relief program.7

Uganda S In November 2001, Uganda completed the last step for AGOA approval

by amending the Customs Management Act. The Uganda Investment Authority stated that the government must allow foreign ownership of real

estate before maximum AGOA benefits will be realized.8

1 EIU Viewswire, “Madagascar: Economy: News Analysis: New Figures Confirm Surge in Exports to U.S.,” Dec. 26, 2001. 2 Businessline (Islamabad), “India: “Mauritius, a Gateway to U.S. Markets,” Feb. 19, 2001. 3 Businessline (Islamabad), “India: Mauritius Seeks Help to Become Cyber Island,” Mar. 15,

2001.

4 Asia Intelligence Wire, “Government to Assist Manufacturers Export Under AGOA,” July 26,

2002.

5 U.S. Department of State, Cable DAKAR 01864, July 25, 2002.

6 EIU Viewswire, “Swaziland: Politics: News Analysis: A Controversial Royal Decree,” Aug. 13,

2001.

7 Manchester Trade: Africa Business & Policy Update, “Tanzania Gains Textile Free Trade with

U.S.,” Feb. 14, 2002.

8 EIU Viewswire, “Uganda: Economy: News Analysis: Africa Growth and Opportunity Act to

Create Jobs,” Nov. 7, 2001
x

Regional integration

S During 2001, progress on economic regional integration in sub-Saharan

Africa continued to move slowly, and remained hampered by political

instability and economic problems in some member countries.

S The Economic Community for West African States (ECOWAS) committed to

proceed toward a common currency. The Southern African Customs Union

(SACU) agreed to a new tariff revenue-sharing formula to disburse more

equitably tariff collections among its members. The Tripartite Commission for

East African Co-operation (EAC) was officially inaugurated in January 2001

after ratification of the treaty by all three member countries: Kenya, Uganda

and Tanzania.

S A single passport was implemented for travel throughout the CEMAC region

in July 2001. In April 2002, CEMAC created a regional coordination and

administration committee mandated to conclude an economic partnership

agreement with the European Union (EU).

U.S. Trade Capacity-Building Initiatives

S In 2001, USAID undertook a survey of U.S. government agencies’ trade

capacity-building initiatives. Based on this survey, 14 percent, or $192 million,

of the $1.3 billion distributed to all developing and transitional countries

during FY1999 through FY2001 went to trade capacity-building initiatives in

SSA.

S Although numerous government agencies were involved in this effort, USAID

represented more than 50 percent of total SSA funding for FY1999 through

FY2001.

S U.S. government agencies provided assistance through various funding

channels with the largest share (25.9 percent) falling under the “trade

facilitation” category. Ghana was the primary recipient in SSA, receiving

more than 30 percent and more than 18 percent of total SSA funding for

FY1999 through FY2001, and FY 2001, respectively.

Other Trade-Related Initiatives

S GSP, first approved by GATT members in 1971, was made permanent with the

1979 “Enabling Clause.” GSP programs represent the main trade

preferences programs carried out by developed countries.
xi

S As of mid-2002, 16 GSP programs were in operation, carried out by 28

developed countries. Each country designs and maintains its own GSP

program with regard to product coverage and country eligibility.

S As of mid-2002, the United States granted preferences to 147 developing

countries; the EU granted preferences to 167 developing countries; Japan

granted preferences to 163 developing countries; and Canada granted

preferences to 181 developing countries.

S The main impact of the Everything But Arms Initiative is expected to be the

liberalization of certain agricultural markets covered under the Common

Agricultural Policy. EU duties on highly sensitive products–bananas, rice, and

sugar—will be gradually eliminated between Jan. 1, 2002 and Sept. 1, 2009.

Sector Profiles

The five sectors discussed below are: agriculture, fisheries, and forest products;

chemicals; petroleum and energy-related products; minerals and metals; and textiles

and apparel. Table ES-4 provides a tabular overview comparing U.S. imports, U.S.

exports, and U.S. FDI positions in these five sectors.

Agriculture, Fisheries, and Forest Products

S SSA represents a relatively small market for U.S. exports of agriculture,

fisheries, and forest products, about 1 percent, by value, in 2001. Such exports

declined 13 percent, by value, that year compared with the previous year.

Major SSA markets for U.S. sector exports in 2001 included Nigeria, which

accounted for about one-third of the total, and South Africa, which accounted

for one-quarter. Grains were the principal products, accounting for nearly

one-half of total U.S. sector exports to SSA in 2001.

S SSA also is a minor source of U.S. imports of agriculture, fisheries, and forest

products, about 1 percent in 2001. U.S. sector imports from SSA declined 6

percent in 2001 compared with the previous year. Major SSA suppliers in

2001 included Côte d’Ivoire and South Africa, each of which accounted for

about one-quarter of the total. Principal products included cocoa beans,

vanilla beans, tobacco, and coffee.
Table ES-4

SSA sector profile summary data, 2001

(Million Dollars)

U.S.-SSA trade

U.S. imports

Total AGOA/GSP U.S. exports 

Sector Value

Majorsources Major products Value Major sources Major products Value Major markets

Agriculture, fisheries, andforest products . . . . . . . . 956

Côte d’Ivoire,South Africa Cocoa, coffee 175

South Africa,Malawi

Sugar, fruit andnuts 796

Nigeria,South Africa

Chemicals . . . . . . . . . . . . 648

South Africa,Nigeria

Organicchemicals,inorganicchemicals 128

South Africa,Kenya

Inorganicchemicals,organicchemicals 811

South Africa,Nigeria

Petroleum and energy-related products . . . . . . . . . 14,300 Nigeria, An- gola, Gabon Crude petroleum 6,800 Nigeria Crude petroleum 119 South Africa, NigeriaMinerals and metals . . . . 3,100 South Africa

Diamonds, precious metals 319 South Africa Iron, steel, aluminum 250 South Africa, Nigeria 

Textiles and apparel . . . . 992

Mauritius,Lesotho,South Africa

Woven and knitapparel 358

Lesotho,Madagascar,

Kenya

Woven and knitapparel 120

South Africa,Nigeria, Tanzania 

1 Not available.

Source: Compiled from official statistics of the U.S. Department of Commerce; U.S. Department of Energy; Mining Africa Yearbook, 2002.
xiii

S U.S. imports under AGOA (including GSP) in 2001 represented about 18

percent of total sector imports from SSA, but only about 2 percent of total

imports under the program. Principal suppliers were South Africa, Malawi,

and Côte d’Ivoire. Major products imported under the program included

sugar, tobacco, and oranges.

S The U.S. FDI position in the SSA food and kindred products sector is relatively

minor, accounting for less than 1 percent of total U.S. FDI in the region in 2001.

South Africa was, by far, the leading SSA country for which U.S. sector FDI

position data were reported in 2001. Numerous U.S.-based food corporations operate in the region, and investment activity was reported in 2001 by

U.S. firms such as Coca-Cola, Cargill, and H.J. Heinz.

S Numerous multilateral lending institutions have financed projects in this sector

in the region. Such projects range from micro-credit programs for individual

farmers to large loans for infrastructure and rural development projects.

Chemicals

S Chemical production in South Africa accounted for 5 percent of South

Africa’s gross domestic product (GDP) and 25 percent of all South Africa’s

sales of manufactured products. Production was dominated by such chemical

end-use products as soaps and synthetic detergents, pharmaceuticals, rubber

and plastics products, and fertilizers, and was primarily targeted at meeting

local needs.

S South Africa was by far the SSA country most involved in international trade

in chemicals, accounting for 71 percent of SSA chemical exports and 39

percent of SSA chemical imports. Major imports by SSA nations included

pharmaceuticals, and truck and bus tires. SSA exports were primarily organic

and inorganic chemicals, and natural rubber.

S A major concern of potential investors in developing the sub-Saharan Africa

chemical industry was the limited potential for a reasonable return on their

investment. Despite ample domestic natural resources to support a

petrochemical industry, ancillary issues complicate possible major

multinational investments. For example, conflicts and political unrest in the

regions where the necessary resources, primarily petroleum and natural gas,

are found have already complicated the delivery of these materials to

established energy industry facilities.

Petroleum and Energy-Related Products

S SSA accounted for less than 1 percent of the total value of U.S. exports of the

products in this sector. U.S. exports to SSA consisted of refined petroleum
xiv

products (85 percent) and specialty coals (14 percent). U.S. imports of

petroleum and energy-related products from SSA accounted for about 10

percent of the total value of U.S. imports of these products from all sources.

Crude petroleum from Nigeria, Angola, and Gabon was the primary U.S.

import in this sector from SSA. The only significant AGOA import in this sector

was crude petroleum from Nigeria, which accounted for 80 percent of total

sector AGOA imports in 2001.

S The state-owned petroleum industries in Angola and Nigeria entered into

joint venture agreements with large multinational petroleum companies. Joint

ventures accounted for about 90 percent of Nigeria’s total production of

crude petroleum during 2000-2001. However, foreign operators reportedly

remained reluctant to commit to future exploration and development plans

because of Nigerian arrearages in such programs. While a joint venture with

Royal Dutch Shell produced nearly 50 percent of Nigeria’s total production of

crude petroleum during 2000-2001, U.S. investment in the industry has

decreased significantly since 1998.

Minerals and Metals

S The minerals and metals sector was one of the most important sectors in SSA,

because the region has vast natural resources. The sector provided significant

employment and export revenues for many countries.

S Important products included diamonds, platinum-group metals, ferroalloys,

iron/steel, and aluminum. Prices for key metals continued their 5-year decline

through 2001 as a result of global overproduction and global economic

stagnation, resulting in sector contraction and reduced economic growth in

many countries.

S The minerals and metals sector accounted for 25 percent of total regional

export value. More than 75 percent of exports were concentrated in four

product groups: precious metals, gemstones, ores and concentrates, and

ferroalloys. SSA imports included metal construction products, largely to

support the growth of the oil and gas industries.

S South Africa dominated sector production and was the leading U.S. supplier.

The country increased its U.S. import market share to 90 percent in 2001.

S FDI in the SSA minerals and metals sector has been limited recently by the

political and economic instability in minerals and metals countries, the

worldwide economic slowdown, and weak metals prices. Investment in

mineral exploration expenditures declined by 31 percent to $494 million in

2001.
xv

S Governments in the region actively promoted and sought foreign investment

through enhanced financial, taxation, private property, and regulatory laws.

In contrast, South Africa’s 2002 Minerals Bill, which will return ownership of

mineral tracts to the state, is claimed by producers to negatively affect

investment as well as the financial health of the companies working in that

country.

Textiles and Apparel

S Mauritius, South Africa, Kenya, Zimbabwe, and Madagascar were the top

five SSA textiles and apparel producers. SSA countries accounted for less

than one percent of world exports of textiles and apparel to the global market.

Textile and apparel industries were, however, significant contributors to

industrial production and sources of employment in many SSA countries.

S SSA countries offer relatively low labor rates and ample labor pools.

However, poverty, the lack of capital, obsolete machinery, insufficient raw

materials (such as yarns and fabrics), low labor productivity, and inadequate

infrastructure in many SSA countries limited the competitiveness of their textile

and apparel industries.

S SSA countries are implementing programs and policies to expand their textile

and apparel industries and thereby boost their level of industrialization.

Export processing zones with attractive corporate incentives have been

established and some state-run industries have been privatized.

S On Oct. 1, 2000, AGOA authorized preferential treatment for qualifying

textiles and apparel from eligible SSA countries for 8 years. AGOA allowed

the President to proclaim duty-free and quota-free treatment to apparel

assembled in SSA countries from U.S.-origin fabrics, as well as specified

quantities of apparel made from “regional fabrics” that are produced in SSA

countries from U.S. or SSA yarns. On Aug. 6, 2002, President Bush signed the

Trade Act of 2002, which authorized an increase in the size of the caps,

clarified that preferential treatment is provided for garments assembled from

knit-to-shape components in SSA countries, allowed lesser developed

designated beneficiaries to use third-country fabrics under the regional cap,

and made Namibia and Botswana eligible for this designation.

S SSA accounted for less than 1 percent of total U.S. exports in 2001. Used

clothing accounted for 51 percent of total U.S. exports of textiles and apparel

to SSA.

S U.S. imports of textiles and apparel from the SSA countries rose by 26 percent

in 2001 over 2000, to $992 million, which can likely be attributed to the
xvi

implementation of AGOA. Leading articles imported from the SSA countries

were cotton sweaters, trousers, and shirts, as well as wool or cashmere

sweaters.

S SSA countries have recently expanded incentives to attract foreign investment

in the textile and apparel industries. Known U.S. investors and apparel buyers

include Levi Strauss, Sara Lee, Victoria’s Secret, the Gap, Nordstroms, and

Wal-Mart. The International Finance Corporation has approved projects and

loans to modernize certain textile facilities in SSA. Some SSA countries have

recently been troubled, however, by political instability that has disrupted

textile operations and led to some plant closures.

Country Profiles

S While SSA generally continued to implement economic reforms and to move

toward market-based economies, the pace of reform has slowed. A key

reason for the deceleration is that many governments have completed the

politically easy reforms and now face the more politically difficult reforms,

such as privatization of utilities, reduction in civil servant rosters, and

addressing agricultural subsidies.

S SSA generally experienced a relatively strong 4.3 percent GDP growth in

2001 in part because of robust agricultural performance in East Africa,

cessation of some regional conflicts, and improved macroeconomic

management. This performance was substantially better than the 1 percent

increase from 1999 to 2000. Disparities remained widespread as a total of

36, or 80 percent, of the countries ranked below the region’s average per

capita GDP in 2001.

S Debt levels, decreasing aid levels, continued reliance on primary commodities

experiencing declining international prices, political upheavals, retrenchment

away from macroeconomic reforms, and the AIDS/HIV pandemic continued

to impede reaching the estimated 6- to -7 percent growth rate necessary for

sustained economic development.

S Most of the governments in SSA are World Trade Organization (WTO)

members or are involved as WTO observers. Thirty-eight governments in SSA

are WTO members, while three others have established accession working

parties, and others have requested observer status without as yet electing to

accede to the WTO. Many governments resort to excessive and prohibitive

tariffs and additional non-tariff charges and do not promote the
xvii

transparency of a tariff regime that would reduce uncertainty for traders that

would allow for expanded trade.

S Economic growth varied significantly in 2001, ranging from a petroleum-led

annual growth rate of 65 percent in Equatorial Guinea to economic implosion

and an annual growth rate of negative 7.5 percent in Zimbabwe. South

Africa and Nigeria combined accounted for approximately 48 percent of the

total SSA GDP in 2000.

S The top-ranking countries, by 2001 per capita income, were Seychelles,

Mauritius, Gabon, South Africa, and Botswana, of which, only Gabon

represents a substantial petroleum-producing country. The countries with the

lowest 2001 per capita income were Ethiopia, Burundi, Eritrea, Sierra Leone,

and Malawi, all of which, except Malawi, continued to experience significant

internal or regional conflict.

S SSA world trade volume has increased by only 10 percent, relative to world

trade volumes that tripled in the last two decades. Although some countries

have successfully diversified their trade structure in recent years, including

Madagascar, Mauritius, and Senegal, most countries’ trade relied heavily on

a limited number of primary products, many of which continued to experience

volatile or declining international prices.

S FDI flows into Africa fell in 2000, bringing the continent’s share of global FDI

to less than 1 percent. Frequent factors inhibiting investment into many SSA

countries were inadequate infrastructure, especially transportation; a small

domestic market size; lack of political or bureaucratic transparency; social

unrest; and high input costs, such as energy or imported inputs.

S Generally, sectors experiencing the most privatization or non-petroleum

investment were:

d telecommunications in Burkina Faso, Gabon, The Gambia, Ghana,

Kenya, Mali, Mauritania, Rwanda, and South Africa;

d banking and finance in Angola, Guinea-Bissau, Mauritius,

Mozambique, Sudan, and Tanzania; and

d textiles and apparel in Benin, Cape Verde, Lesotho, Madagascar,

Mauritius, and Swaziland.

xix

TABLE OF CONTENTS

Page

Executive Summary ............................................ i

Glossary of Abbreviations and Acronyms ........................... xxix

Introduction ................................................. xxxi

Purpose and organization of the report xxxi ........................

Approach xxxii ...............................................

Scope of the Report xxxiii .......................................

Chapter 1. U.S. merchandise and services trade with sub-Saharan Africa . 1

U.S. merchandise trade 1 ....................................

U.S. merchandise exports 3 .................................

U.S. merchandise imports 5 .................................

Trade balance 13 .........................................

U.S.-Africa services trade 14 ...................................

Chapter 2. AGOA-related imports and investment ................... 19

African Growth and Opportunity Act 19 ..........................

Apparel provisions 21 ......................................

AGOA Forum 22 .........................................

U.S. imports under AGOA 23 ..................................

AGOA-related investment 25 ..................................

Examples of AGOA-related investment 29 ......................

Investment climate and reform facilitating role of AGOA 32 .........

Chapter 3. Foreign investment and regional integration ............... 35

Investment in sub-Saharan Africa 35 ............................

Overview 35 .............................................

Market reform and privatization 36 ...........................

Global investment trends 37 .................................

Global foreign direct investment 37 ........................

Global foreign portfolio investment 38 ......................

U.S. investment 40 .........................................

U.S. direct investment in sub-Saharan Africa 40 ...............

U.S. portfolio investment in sub-Saharan Africa 40 ............

Regional integration in sub-Saharan Africa 41 .....................

Regional integration in 2001 41 ..............................

Economic Community of West African States 45 ...............

West African Economic and Monetary Union 49 ..............
xx

TABLE OF CONTENTS—Continued

Page

Chapter 3. Foreign investment and regional integration–Continued

Regional integration in sub-Saharan Africa–Continued

Common Market for Eastern and Southern Africa 53 ..............

Southern African Development Community 57 ...................

Southern African Customs Union 61 ...........................

East African Community 65 ..................................

Intergovernmental Authority on Development 69 ..................

Indian Ocean Commission 71 ................................

Communauté Economique et Monétaire de l’Afrique Centrale 73 .....

Chapter 4. Multilateral assistance, U.S. bilateral assistance and other traderelated initiatives .............................................. 77

Sources of multilateral assistance to sub-Saharan Africa 77 ...........

The World Bank Group 80 ..................................

The World Bank/International Development Association 80 ......

Multilateral Investment Guarantee Agency 85 ................

International Finance Corporation 87 .......................

The African Development Bank Group 88 .......................

International Monetary Fund 89 ..............................

New Partnership for African Deveopment 95 ....................

Sources of U.S. bilateral economic assistance to sub-Saharan Africa 96 .

U.S. Government Agencies’ Trade Capacity-Building Initiatives 96 ....

U.S. Government Agencies Involved 97 .....................

Country Coverage . . 97 .................................

Types of Trade Capacity-Building Initiatives 98 ................

The Export-Import Bank of the United States 98 ...................

U.S. Trade and Development Agency 99 .......................

Overseas Private Investment Corporation 103 .....................

U.S. Agency for International Development 106 ...................

Other trade-related initiatives 108 ...............................

Generalized System of Preferences Programs 108 .................

Chapter 5. Industry sector profiles ................................ 113

Agricultural, fisheries, and forest products 115 ......................

Background 115 ...........................................

Industry overview 115 ....................................

Industry and sector issues 115 .............................
xxi

TABLE OF CONTENTS—Continued

Page

Chapter 5. Industry sector profiles–Continued

Economic and trade policy developments 116 .................

Trade 117 ................................................

Key U.S. import developments 119 ..........................

Key AGOA trade developments 119 ........................

Key U.S. export developments 119 ..........................

Investment 120 ............................................

Major investments 120 ...................................

Investment issues 120 ....................................

Multilateral lending 121 ..................................

Chemicals 125 ...............................................

Background 125 ...........................................

Industry overview 125 ....................................

Industry and sector issues 125 .............................

Economic and trade policy developments 125 .................

Trade 126 ................................................

Key U.S. import developments 128 ..........................

Key AGOA trade developments 128 ........................

Key U.S. export developments 128 ..........................

Investment 129 ............................................

Major investments 129 ...................................

Investment issues 129 ....................................

Multilateral lending 129 ..................................

Petroleum and energy-related products 131 ........................

Background 131 ...........................................

Industry overview 131 ....................................

Industry and sector issues 131 .............................

Economic and trade policy developments 131 .................

Trade 132 ................................................

Key U.S. import developments 134 ..........................

Key AGOA trade developments 134 ........................

Key U.S. export developments 134 ..........................

Investment 135 ............................................

Major investments 135 ...................................

Investment issues 135 ....................................
xxii

TABLE OF CONTENTS—Continued

Page

Chapter 5. Industry sector profiles–Continued

Multilateral lending 135 ..................................

Minerals and metals 137 .......................................

Background 137 ...........................................

Industry overview 137 ....................................

Industry and sector issues 138 .............................

Economic and trade policy developments 138 .................

Trade 139 ................................................

Key U.S. import developments 141 ..........................

Key AGOA trade developments 141 ........................

Key U.S. export developments 141 ..........................

Investment 143 ............................................

Major investments 144 ...................................

Investment issues 144 ....................................

Multilateral lending 145 ..................................

Textiles and apparel 147 ......................................

Background 147 ...........................................

Industry overview 147 ....................................

Industry and sector issues 147 .............................

Economic and trade policy developments 147 .................

Trade 149 ................................................

Key U.S. import developments 151 ..........................

Key AGOA trade developments 151 ........................

Key U.S. export developments 151 ..........................

Investment 152 ............................................

Major investments 152 ...................................

Investment issues 152 ....................................

Multilateral lending 152 ..................................

Chapter 6. Country profiles ..................................... 155

Regional overview 155 ........................................

Tariff structure 159 ...........................................

Tariff data, availability and comparability 161 ....................

Glossary and definitions 163 .................................

Technical notes and data sources 163 .............................
xxiii

TABLE OF CONTENTS—Continued

Page

Chapter 6. Country profiles–Continued

Profiles of 48 sub-Saharan African countries 164 ...................

Angola 167 ...............................................

Benin 169 ................................................

Botswana 171 .............................................

Burkina Faso 173 ..........................................

Burundi 175 ...............................................

Cameroon 177 ............................................

Cape Verde 179 ...........................................

Central African Republic 181 .................................

Chad 183 ................................................

Comoros 185 .............................................

Côte d’Ivoire 187 ...........................................

Democratic Republic of the Congo 189 ..........................

Djibouti 191 ...............................................

Equatorial Guinea 193 ......................................

Eritrea 195 ...............................................

Ethiopia 197 ..............................................

Gabon 199 ...............................................

The Gambia 201 ...........................................

Ghana 203 ...............................................

Guinea 205 ...............................................

Guinea-Bissau 207 .........................................

Kenya 209 ................................................

Lesotho 211 ...............................................

Liberia 213 ...............................................

Madagascar 215 ..........................................

Malawi 217 ...............................................

Mali 219 .................................................

Mauritania 221 ............................................

Mauritius 223 .............................................

Mozambique 225 ..........................................

Namibia 227 ..............................................

Niger 229 ................................................

Nigeria 231 ..............................................

Republic of the Congo 235 ...................................

Rwanda 237 ..............................................

São Tomé and Principe 239 ..................................
xxiv

TABLE OF CONTENTS—Continued

Page

Chapter 6. Country profiles–Continued

Profiles of 48 sub-Saharan African countries-Continued

Senegal 241 ..............................................

Seychelles 243 ............................................

Sierra Leone 245 ...........................................

Somalia 247 ..............................................

South Africa 249 ...........................................

Sudan 253 ...............................................

Swaziland 255 ............................................

Tanzania 257 .............................................

Togo 259 .................................................

Uganda 261 ..............................................

Zambia 263 ..............................................

Zimbabwe 265 ............................................

Appendices

A. Request letters from the U.S. Trade Representative 267 .................

B. Trade data 273 ................................................

Figures

ES-1. U.S. trade with sub-Saharan Africa, 1997-2001 ii .................

ES-2. U.S. imports from the world and sub-Saharan Africa, 2001 iv ........

1. Map of sub-Saharan Africa xxxv .................................

1-1. U.S. trade with sub-Saharan Africa, 1997-2001 1 .................

1-2. U.S. nonpetroleum trade with sub-Saharan Africa, 1997-2001 3 ......

1-3. U.S. exports to major sub-Saharan Africa trading partners, 2001 4 ....

1-4. U.S. exports to sub-Saharan Africa by commodity sectors, by

share, 2001 4 ...........................................

1-5. U.S. exports to sub-Saharan Africa: Growth rates by commodity

sectors, 2001 5 ..........................................

1-6. U.S. imports from major sub-Saharan Africa trading partners, 2001 12 .

1-7. U.S. imports from sub-Saharan Africa by commodity sectors,

by shares, 2001 12 ........................................

1-8. U.S. imports from sub-Saharan Africa: Growth rates by commodity

sectors, 2001 13 ..........................................

1-9. U.S. cross-border trade in services with Africa: Exports, imports,

and trade balance, 1997-2000 15 ............................

2-1. U.S. imports under AGOA, by top AGOA beneficiaries, by percent of

additional AGOA benefits, 2001 25 ...........................
xxv

TABLE OF CONTENTS—Continued

Page

Figures-Continued

6-1 Real Per Capita GDP, 2000 156 .................................

6-2 Debt-to-GDP Ratio, 2000 158 ...................................

Boxes

1-1. U.S.-Africa services trade 18 ...................................

Tables

ES-1. AGOA beneficiary countries, as of November 22, 2002 iii ..........

ES-2. Selected examples of recent AGOA-related investment, employment

increases, and industry output expansion, 2000-2002 iv ..........

ES-3. Selected examples of AGOA-related facilitation of investment and

reform, 2000-2002 ix .....................................

ES-4. SSA sector profile summary data, 2001 xii ........................

1-1. Sub-Saharan Africa: U.S. exports of domestic merchandise,

imports for consumption, and merchandise trade balance,

by major commodity sectors, 1997-2001 6 .....................

1-2. Sub-Saharan Africa: U.S. exports, by major commodity items,

1997-2001 8 ............................................

1-3. Sub-Saharan Africa: U.S. imports, by major commodity items,

1997-2001 10 ............................................

1-4. Total Africa and South Africa: U.S. cross-border service exports,

1995 and 2000 15 ........................................

1-5. Total Africa and South Africa: U.S. cross-border service imports,

1995 and 2000 16 ........................................

1-6. Sales and purchases through U.S.-owned affiliates and African-owned

affiliates, 1997-1999 17 ....................................

2-1. SSA countries designated as beneficiary countries of AGOA, on

October 2, 2000 20 .......................................

2-2. U.S. imports under AGOA, by source, 2001, January-June 2001, and

January-June 2002 24 .....................................

2-3. Major U.S. imports under AGOA, by major commodity sectors, 2001,

January-June 2001 and January-June 2002 26 ..................

2-4. Leading U.S. imports under AGOA, by HTS descriptions, 2001,

January-June 2001 and January-June 2002 27 ..................

2-5. Selected examples of recent AGOA-related investment, employment

increases, and industry output expansion, 2000-2002 29 ..........

2-6. Selected examples of AGOA-related facilitation of investment and

reform, 2000-2002 33 .....................................
xxvi

TABLE OF CONTENTS—Continued

Page

Tables-Continued

3-1. Global investment flows to developing countries, 1997-2001 36 ........

3-2. Global investment flows to sub-Saharan Africa, 1997-2000 37 ........

3-3. Share of global investment flows to sub-Saharan Africa, 1997-2000 38 .

3-4. Global portfolio equity investment flows into sub-Saharan Africa,

1997-2000 39 ............................................

3-5. U.S. direct investment abroad: Capital flows, 1997-2001 40 ..........

3-6. U.S. direct investment position on a historical cost basis, 1997-2001 41 . .

4-1. Summary of general developments in multilateral assistance,

U.S. bilateral assistance, and other trade-related initiatives for

sub-Saharan Africa, 2001-2002 78 ...........................

4-2. World Bank/IDA: Eligible borrowers in sub-Saharan Africa (39) 81 ....

4-3. World Bank lending commitments in sub-Saharan Africa to

borrowers by sectors, fiscal years 1998-2001, and

average 1992-97 82 .......................................

4-4. World Bank projects approved in sub-Saharan Africa, FY 2001 83 .....

4-5. Sub-Saharan African MIGA members and countries in the process of

fulfilling membership requirements, 2001 86 .....................

4-6. MIGA guarantees issued in sub-Saharan Africa, FY 2001 86 ..........

4-7. Total AfDF and AfDB projects and programs approved during 2001,

by country 90 ............................................

4-8. Trade capacity-building initiatives: Primary country recipients and

percent of total, FY 1999 through FY 2001, and FY 2001 98 .........

4-9. Trade capacity-building initiatives: Definitions and percent of total,

FY 1999 through FY 2001 100 .................................

4-10. Examples of trade capacity-building Initiatives in sub-Saharan Africa,

FY 1999 through 2001 101 ...................................

4-11. Sub-Saharan Africa: Export-Import Bank exposure, authorizations,

and availability for further support as of Dec. 14, 2001 104 ..........

4-12. TDA program activities in Africa, FY 2001 105 ......................

4-13. USAID funds allocated for sub-Saharan Africa, by major project

categories, FY 2001 107 .....................................

6-1 Share dependance on exports of primary products, selected

sub-Saharan Africa countries, 1998-2000 159 ....................

6-2 Sub-Saharan Africa Tariff Average 160 ...........................

B-1. U.S. exports, imports, and trade balances, with sub-Saharan Africa,

1997-2001 275 ............................................

B-2. U.S. exports, imports, and AGOA/GSP imports by major commodity

sectors, 1997-2001 279 ......................................
xxvii

TABLE OF CONTENTS—Continued

Page

Tables-Continued

B-2. U.S. exports, imports, and GSP imports by major commodity sectors,

1997-2001-Continued

Angola 279 ...............................................

Benin 280 ................................................

Botswana 281 .............................................

Burkina Faso 282 ..........................................

Burundi 283 ...............................................

Cameroon 284 ............................................

Cape Verde 285 ...........................................

Central African Republic 286 .................................

Chad 287 ................................................

Comoros 288 .............................................

Congo-DROC 289 ..........................................

Congo-ROC 290 ...........................................

Côte d’Ivoire 291 ...........................................

Djibouti 292 ...............................................

Equatorial Guinea 293 ......................................

Eritrea 294 ...............................................

Ethiopia 295 ..............................................

Gabon 296 ...............................................

The Gambia 297 ...........................................

Ghana 298 ...............................................

Guinea 299 ...............................................

Guinea-Bissau 300 .........................................

Kenya 301 ................................................

Lesotho 302 ...............................................

Liberia 303 ...............................................

Madagascar 304 ..........................................

Malawi 305 ...............................................

Mali 306 .................................................

Mauritius 307 .............................................

Mauritania 308 ............................................

Mozambique 309 ..........................................

Namibia 310 ..............................................

Niger 311 ................................................

Nigeria 312 ..............................................

Rwanda 313 ..............................................
xxviii

TABLE OF CONTENTS—Continued

Page

Tables-Continued

B-2. U.S. exports, imports, and GSP imports by major commodity sectors,

1997-2001-Continued

São Tomé and Príncipe 314 ..................................

Senegal 315 ..............................................

Seychelles 316 ............................................

Sierra Leone 317 ...........................................

Somalia 318 ..............................................

South Africa 319 ...........................................

Sudan 320 ...............................................

Swaziland 321 ............................................

Tanzania 322 .............................................

Togo 323 .................................................

Uganda 324 .............................................

Zambia 325 ..............................................

Zimbabwe 326 ............................................

B-3. Leading changes in sectoral trade, by sectors, 1997 and 2001 327 ......

Angola 327 ...............................................

Congo-ROC 328 ...........................................

Côte d’Ivoire 329 ...........................................

Equatorial Guinea 330 ......................................

Gabon 331 ...............................................

Ghana 332 ...............................................

South Africa 333 ...........................................

B-4. U.S. imports under AGOA, 2001, January-June 2001,

January-June 2002 334 .....................................
xxix

Glossary of Abbreviations and Acronyms

ADB Asian Development Bank

AfDF African Development Fund

AfDB African Development Bank

AGOA African Growth and Opportunity Act

ATIA African Trade Insurance Agency

ATRIP African Trade and Investment Policy Program

AU African Union

CACEU Central African Customs and Economic Union

CEMAC Communauté Economique et Monétaire de l’Afrique Centrale

CFA Communauté Financière Africaine

CMA Common Monetary Area

COMESA Common Market for Eastern and Southern Africa

DROC Democratic Republic of the Congo

EAC Tripartite Commission for East African Cooperation

ECA United Nations Economic Commission for Africa

ECOWAS Economic Community of West African States

EU European Union

FDI Foreign direct investment

GATT General Agreement on Tariffs and Trade

GDP Gross Domestic Product

GSP U.S. Generalized System of Preferences

HIPC Heavily Indebted Poor Countries

HTS Harmonized Tariff Schedule

IBRD International Bank for Reconstruction and Development

IDA International Development Association

IFC International Finance Corporation

IGAD Intergovernmental Authority on Development

IMF International Monetary Fund

IOC Indian Ocean Commission

JSE Johannesburg Stock Exchange

MIGA Multilateral Investment Guarantee Agency

NEPAD New Partnership for African Development

NTF Nigerian Trust Fund

OAU Organization of African Unity

PRGF Poverty Reduction Growth Facility

PRSC Poverty Reduction Support Credit

PRSP Poverty Reduction Strategy Paper

ROC Republic of the Congo
xxx

Glossary of Abbreviations and Acronyms-Cont.

SACU Southern African Customs Union

SADC Southern African Development Community

SDR Special Drawing Rights

SSA Sub-Saharan Africa

TDA U.S. Trade and Development Agency

TRIPS Agreement on Trade-Related Aspects of Intellectual

Property Rights

UDEAC l’Union Douanière et Economique

UEMOA Union Economique et Monétaire Ouest Africaine

UN United Nations

UNCTAD United Nations Conference on Trade and Development

UNDP United Nations Development Programme

URA Uruguay Round Agreements

USAID U.S. Agency for International Development

USDA U.S. Department of Agriculture

USDOC U.S. Department of Commerce

USITC U.S. International Trade Commission

USTR United States Trade Representative

WAEMU West African Economic and Monetary Union

WIPO World Intellectual Property Organization

WTO World Trade Organization
xxxi

INTRODUCTION

Purpose and Organization of the Report

This is the third report in a 5-year series documenting U.S.-sub-Saharan Africa (SSA)

trade and investment flows.1 In a letter dated Apr. 12, 2000,2 the United States Trade

Representative (USTR) asked the U.S. International Trade Commission (Commission or

USITC) to submit, annually for 5 years, a report that provides:

S an analysis of U.S.-SSA merchandise trade and services trade flows;

S country-by-country profiles of the economies of each SSA country, including

information on major trading partners, and a summary of the trade and

investment climates in each;

S a summary of U.S. foreign and total direct investment and portfolio investment

in SSA;

S information on SSA privatization efforts;

S updates on progress in regional integration in SSA, including statistics on U.S.

trade with the major regional groupings; and

S a summary of multilateral and U.S. bilateral assistance to SSA countries.

In a supplementary letter dated July 10, 2002,3 the USTR asked the Commission to

provide the following additional information:

S the value of U.S. imports from SSA under the African Growth and

Opportunity Act, including its GSP provisions, by beneficiary country and

major product categories;

S information on investment developments related to AGOA;

1 In a letter dated June 5, 1996, the USTR asked the Commission to submit, annually for 5 years, the

specified report. A first series of reports resulted from section 134 of the Uruguay Round Agreements Act

(URAA), which directed the President to develop a comprehensive trade and development policy for the

countries of Africa, and to report to the Congress annually for 5 years on the steps taken to carry out that

mandate. The Statement of Administrative Action approved by the Congress in the URAA broadly

outlined the Administration’s plans for this work, and the assistance needed from the Commission for the

President to fulfill this assignment. The series consisted of five reports, produced over the period

1995-1999. See USITC, U.S.-Africa Trade Flows and Effects of the Uruguay Round Agreements and U.S.

Trade and Development Policy, Fifth Annual Report, USITC pub. 3250, October 1999.

2 Copy of the request letter is in appendix A.

3 Copy of the supplemental letter is in appendix A.
xxxii

S a description and analysis of major SSA export sectors;

S expanded information on regional integration in SSA, including information

on the Communauté Economique et Monétaire de l’Afrique Centrale

(CEMAC);

S a description of major U.S. trade capacity-building initiatives related to SSA;

and

S a description of major non-U.S. trade preference programs for countries in

SSA.

The request letters acknowledged that the information included in the USITC reports

would be useful in USTR’s work and also in meeting any additional reporting

requirements stemming from AGOA.

The report contains six chapters and two appendices. Chapter 1 presents information

on U.S. merchandise and services trade with SSA. The services trade analysis includes

information on cross-border and affiliate transactions. Chapter 2 presents information on AGOA-related imports and investment. Chapter 3 addresses foreign

investment (both direct and portfolio investment) in the SSA region. The chapter also

updates and expands the coverage of integration initiatives in the SSA region

provided in the last USITC report.4 Chapter 4 is a compilation of multilateral

assistance, U.S. bilateral assistance and other trade-related initiatives related to the

SSA region in 2001. Chapter 5 contains a description and analysis of selected SSA

export sectors. The sector profiles present information on production, trade and

investment for various industry sectors in SSA. Chapter 6 contains country profiles for

each of the 48 countries of SSA, including basic economic data as well as a synopsis of

the trade and investment climate of each country. The formal requests from the USTR to

the Commission for this study are included in appendix A. Relevant statistics on

U.S.-SSA trade are included in appendix B.

Approach

The data included in the report generally cover either calendar or fiscal year 2001,

depending on availability. In cases where it is useful to show a trend, data for 1997

through 2001 are provided. Developments in economic, trade, and commercial

policies cover the period from January 2002 through mid-2002, when possible.

4 In addition, the previous series of five reports included information on progress on regional

integration in SSA. See, for example, USITC, U.S.-Africa Trade Flows and Effects of the Uruguay Round

Agreements and U.S. Trade and Development Policy, Fifth Annual Report, Inv. No. 332-360, USITC pub.

3250, October 1999, pp. 2-22 through 2-34.
xxxiii

Online web-pages dedicated to data on trade covered under AGOA and all other

U.S. trade with SSA are available at the USITC website http://reportweb.usitc.gov/

africa. These tables will provide year-to-date statistics that update the information

contained in certain tables of the published report. The website will be automatically

updated with quarterly data as the data become available from the U.S. Department

of Commerce (USDOC).

Numerous data sources were used to compile the information in this report. Annual

data on the value of U.S. exports to, and imports from, SSA were obtained from the

USDOC. Data on U.S. investment flows to SSA were obtained from USDOC and the

U.S. Department of the Treasury (Treasury). Information on major developments in the

WTO likely affecting U.S.-SSA trade flows was collected from the WTO and other

public data sources. Information on U.S. trade and economic activities potentially

affecting U.S.-SSA trade and investment flows was collected from USDOC, the U.S.

Department of State (State), the U.S. Agency for International Development (USAID),

Treasury, the Export-Import Bank of the United States (Eximbank), the Overseas

Private Investment Corporation (OPIC), the U.S. Department of Agriculture (USDA),

the U.S. Trade and Development Agency (TDA), and other relevant U.S. agencies.

Data on trade and economic policy changes in countries in SSA, as well as information

on multilateral project lending, were obtained from USDOC, State, the World Bank,

the African Development Bank, the International Monetary Fund, and the Economist

Intelligence Unit. In addition, U.S. embassies in the SSA region provided important

trade and investment information.

Scope of the Report

As requested by USTR, only the countries of SSA are covered by this report. Figure 1

shows the 48 countries of SSA covered in this investigation. The countries are:

Angola Madagascar

Benin Malawi

Botswana Mali

Burkina Faso Mauritania

Burundi Mauritius

Cameroon Mozambique

Cape Verde Namibia

Central African Republic Niger

Chad Nigeria

Comoros Republic of the Congo

Côte d’Ivoire Rwanda
xxxiv

Democratic Republic of the Congo São Tomé and Principe

Djibouti Senegal

Equatorial Guinea Seychelles

Eritrea Sierra Leone

Ethiopia Somalia

Gabon South Africa

The Gambia Sudan

Ghana Swaziland

Guinea Tanzania

Guinea-Bissau Togo

Kenya Uganda

Lesotho Zambia

Liberia Zimbabwe

All of these countries are classified by the World Bank as developing countries.

However, although the countries of SSA share many common characteristics, they

vary widely in terms of population, size, geography, natural resources, stage of

development, and political stability.5

This report also covers U.S. trade flows with the following SSA regional and

subregional organizations: the Economic Community of West African States

(ECOWAS), the West African Economic and Monetary Union (WAEMU), the

Common Market for Eastern and Southern Africa (COMESA), the Southern Africa

Development Community (SADC), the Southern Africa Customs Union (SACU), and

the Tripartite Commission for East African Cooperation (EAC). At the request of the

USTR, the report also discusses the Intergovernmental Authority on Development

(IGAD), the Indian Ocean Commission (IOC), and the Communauté Economique et

Monétaire de l’Afrique Centrale (CEMAC).

5 See USITC, U.S.-Africa Trade Flows and Effects of the Uruguay Round Agreements and U.S. Trade

and Development Policy, First - Fifth Annual Reports, USITC pubs. 3000 and 3250, pp. 1-4.
Figure 1

Map of sub-Saharan Africa

Angola

Zambia

Eritrea

Ethiopia

Kenya

Tanzania

Democratic Republic

of the Congo

Somalia

Sudan

Niger

Chad

Mali

Mauritania

The Gambia

GuineaBissauGuinea

Liberia

Côte

d’Ivoire

Cape Verde

Ghana

Benin

Togo

Sierra Leone

Nigeria

Burkina Faso Cameroon

Central

African Republic

Rwanda

Burundi

Uganda

Gabon

Madagascar

Namibia Botswana

South Africa

Zimbabwe

Mozambique

Malawi

Swaziland

Lesotho

Djibouti

Mauritius

Comoros

Senegal

Sao Tome &

Principe

Equatorial

Guinea

Republic of the Congo Seychelles

The illustration of the map in this figure is an artistic

representation of the countries of sub-Saharan Africa. It is

not drawn to scale, nor is it intended to depict political or

geographical boundaries.

xxxv

1

CHAPTER 1

U.S. Merchandise and Services Trade With

Sub-Saharan Africa

This chapter discusses the pattern of U.S.- SSA merchandise trade from 1997 to 2001,

and services trade flows from 1996 to 2000 (the most recent year for which data on

services trade are available). The pattern of merchandise trade is presented by major

trading partners and commodity sectors, and for the SSA region as a whole. Data

beginning with 1990 are available in prior Commission reports.1

U.S. Merchandise Trade

Figure 1-1 shows the trend in U.S.-SSA merchandise trade from 1997 to 2001. In 2001,

total merchandise trade (exports plus imports) between the United States and SSA

remained at $27.8 billion.2 The 5.2 percent decline in U.S. imports from the region,

-25

-20

-15

-10

-5

0

5

10

15

20

25

1997 1998 1999 2000 2001

Billion dollars

U.S. exports

U.S. imports

Trade balance

Figure 1-1

U.S. trade with sub-Saharan Africa, 1997-2001

Source: Compiled from official statistics of the U.S. Department of Commerce.

1 For data series beginning in 1990, see USITC, U.S.-Africa Trade Flows and Effects, First Report,

USITC pub. 2938, January 1996, table 2-1, p. 2-2.

2 This report analyzes changes in U.S. merchandise trade on a value basis. A principal reason for

the use of value data is that aggregate trade data by quantity are generally not available. Consequently,

it is possible (if prices fluctuate significantly) for the value of trade to change considerably, but the quantity

of trade to remain the same. Where possible, this report also provides trade information on a quantity

basis.
2

from $22.2 billion in 2000 to $21.1 billion in 2001, was offset by a 21.3 percent

increase in U.S. exports to the region, from $5.6 billion in 2000 to $6.8 billion in 2001.

The sharp rise in U.S. exports was primarily the result of a 58.8 percent increase in

transportation equipment and a 20.0 percent increase in machinery products. Kenya

and Nigeria accounted for almost one-half the increase in total U.S. exports to the

region. U.S. exports to Kenya rose by $338.4 million, or by 143.7 percent, with most of

the increase concentrated in the transportation sector (up by $319.7 million or by

260.9 percent). Exports to Nigeria increased by $235.0 million or 33.0 percent, with

much of the change accounted for by increases in exports of agricultural products (up

by $67.2 million, or by 37.6 percent), transportation equipment (up by $54.8 million,

or by 23.9 percent), electronics (up by $44.9 million, or by 106.7 percent) and

machinery (up by $28.8 million, or by 23.4 percent).

With respect to imports, the United States purchased $21.1 billion of merchandise from

SSA in 2001, a decrease of 5.2 percent, compared to 2000. Nigeria, Angola, and

Gabon accounted for most of the decline of total imports from the region. U.S. imports

from Nigeria declined by $763.7 million, or by 7.9 percent, with most of the decline

concentrated in the chemicals and related products sector (down by $684.9 million, or

by 72.6 percent). Imports from Angola declined by $567.7 million or by 17.0 percent,

largely because of a sharp decline in energy-related products (down by $552.7

million, or by 16.6 percent). U.S. imports from Gabon declined by $306.3 million, or

by 15.0 percent, mostly because of a decline in energy-related products (down by

$204.1 million, or by 10.8 percent).

The decline in total imports from the region was partly offset by increased U.S. imports

from Equatorial Guinea, South Africa, and Madagascar. U.S. imports from Equatorial

Guinea increased by $240.9 million, or 155.7 percent, mainly because of an increase

in energy-related imports (up by $202.6 million, or by 132.8 percent). However, U.S.

imports of energy-related products from Equatorial Guinea represented only a small

share (2.5 percent) of total U.S. imports of energy-related products from SSA in 2001.

For more information on the SSA energy-related products sector, see the petroleum

and energy-related sector profile in chapter 5. Imports from South Africa increased by

$225.9 million, or by 5.4 percent, primarily because of an increase in imports of

transportation equipment (up by $216.6 million, or by 119.0 percent). U.S. imports

from Madagascar increased by $114.1 million, or 72.3 percent, because of imports of

textiles and apparel (up by $68.8 million, or by 62.6 percent) and imports of

agricultural products (up by $44.4 million, or by 112.0 percent). For more information

on the transportation sector in South Africa, and the textiles and apparel sector in

Madagascar, see the respective country profiles in chapter 6.

The result was a U.S. trade deficit of $14.3 billion with SSA in 2001, a decrease of 14.1

percent over the deficit in 2000. Following a sharp increase of 35.0 percent to $9.3

billion in 2000, U.S. nonpetroleum imports declined in 2001 by 17.8 percent to $7.7

billion. Nonpetroleum trade with SSA is presented in figure 1-2.
3

-12

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

Billion dollars

U.S. exports

U.S. imports

Trade balance

Figure 1-2

U.S. nonpetroleum trade with sub-Saharan Africa, 1997-2001

Source: Compiled from official statistics of the U.S. Department of Commerce.

U.S. Merchandise Exports

Figure 1-3 presents U.S. exports to SSA by major trading partner. The largest U.S.

market in 2001 remained South Africa, which accounted for 41.8 percent of U.S.

merchandise exports to the region, down from a 50.9 percent share in 2000. Other

leading U.S. export markets were Nigeria (14.0 percent of the total), Kenya (8.5

percent), Angola (4.1 percent), Namibia (3.7 percent), Cameroon (2.7 percent), and

Ghana (2.7 percent). Cameroon became the sixth largest market for U.S. exports as a

result of a $125 million increase in 2001, including a $122 million increase in

purchases of U.S. transportation equipment.

A total of 35 countries in the region increased purchases of U.S. merchandise exports

in 2001, while 13 recorded a decrease. The largest increases in U.S. exports in 2001

were to Kenya (up by $338.4 million, or by 143.7 percent), Nigeria (up by $235.0

million, or by 33.0 percent), Namibia (up by $170.9 million, or by 217.8 percent),

Seychelles (up by $169.0 million, or by 2,424.1 percent), Chad (up by $125.7 million,

or by 1,166.0 percent), and Cameroon (up by $125.1 million, or by 212.2 percent). The

largest decreases in U.S. exports to the region in 2001 were to Ethiopia (down by

$104.4 million, or by 63.2 percent), Mozambique (down by $29.6 million, or by 51.1

percent), Zimbabwe (down by $21.6 million, or by 40.9 percent), Equatorial Guinea

(down by $15.1 million, or by 16.0 percent) and Burkina Faso (down by $11.2 million,

or by 71.7 percent).
4

Figure 1-3

U.S. exports to major sub-Saharan Africa trading partners, 2001

Source: Compiled from official statistics of the U.S. Department of Commerce.

Other 22.5%

Angola 4.1%

Kenya 8.5%

South Africa

41.8%

Nigeria 14.0%

Namibia 3.7%

Ghana 2.7%

Cameroon 2.7%

As shown in figure 1-4, transportation equipment accounted for the largest share of

U.S. merchandise exports to the SSA region, accounting for 42.4 percent of the total in

2001, compared with 32.4 percent in 2000. U.S. exports of chemicals and related

products accounted for 11.6 percent of all U.S. exports to the region, down from 12.8

percent in 2000. Electronic products accounted for 10.4 percent of the total in 2001,

Figure 1-4

U.S. exports to sub-Saharan Africa by commodity sectors, by share, 2001

Source: Compiled from official statistics of the U.S. Department of Commerce.

Other 11.7%

Machinery 9.9%

Electronic products 10.4%

Transportation

42.4%

Chemicals and related products 11.6%

Special provisions 4.5%

Agriculture 9.7%
5

compared to 12.6 percent in 2000. Machinery products decreased slightly to 9.9

percent from 10.0 percent in 2000, while agricultural exports accounted for 9.7

percent in 2001, down from 13.8 percent in 2000.

In absolute terms, U.S. merchandise export sectors with large increases to the SSA

region in 2001 included transportation equipment (up by $1.1 billion, or by 58.8

percent), machinery (up by $110.9 million, or by 20.0 percent), and chemicals and

related products (up by $70.0 million, or by 10.0 percent). U.S. exports of agricultural

products to the region decreased by $111.7 million, or by 15.0 percent. Figure 1-5

presents U.S. export growth rates by commodity sector for 2001; table 1-1 provides

data on U.S.-SSA exports and imports by major commodity sector for 1997-2001; and

table 1-2 shows the major U.S. commodity exports to SSA at the six-digit level of the

Harmonized Tariff Schedule (HTS) for this same period.

U.S. Merchandise Imports

U.S. merchandise imports from SSA decreased by $1.2 billion (or by 5.2 percent) in

2001, following a 61.5 percent increase in 2000. Figure 1-6 shows U.S. imports from

SSA by major trading partner. Nigeria remained the largest supplier of U.S. imports

from SSA, with $8.9 billion in sales (mostly of petroleum) to the United States,

representing 42.3 percent of U.S. imports from the region in 2001. South Africa

ranked second, with $4.4 billion in sales (of minerals and metals and transportation

--40 --30 --20 --10 0 10 20 30 40 50 60 70

Percent

Source: Compiled from official statistics of the U.S.Department of Commerce.

Total exports

Transportation equipment

Miscellaneous manufactures

Machinery

Minerals and metals

Special provisions

Chemicals and related products

Electronic products

Textiles and apparel

Energy-related products

Forest products

Agricultural products

Footwear

Figure 1-5

U.S. exports to sub-Saharan Africa: Growth rates by commodity sectors,

2001
6

Table 1-1

Sub-Saharan Africa: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by major commodity sectors, 1997-20011

(Dollars)

Item 1997 1998 1999 2000 2001

U.S. exports of domestic

mercandise:

Agricultural products . . . . . 755,915,550 781,187,266 727,752,959 768,772,931 657,105,328

Forest products . . . . . . . . . 205,130,047 193,993,785 154,984,055 158,991,910 147,568,278

Chemicals and related

products . . . . . . . . . . . . 741,108,062 677,917,845 610,074,033 709,665,103 779,699,927

Energy-related products . . 223,822,622 202,882,624 150,167,321 157,501,223 149,189,241

Textiles and apparel . . . . . 207,255,581 177,826,783 146,319,258 136,098,142 130,527,065

Footwear . . . . . . . . . . . . . . 17,161,838 14,986,246 16,736,266 14,183,111 10,113,957

Minerals and metals . . . . . 248,299,973 257,843,682 221,514,187 218,888,636 250,058,717

Machinery . . . . . . . . . . . . . 843,488,878 800,858,750 521,813,230 554,716,285 665,592,719

Transportation

equipment . . . . . . . . . . . 1,708,241,693 2,185,508,902 1,700,409,100 1,801,460,433 2,859,923,973

Electronic products . . . . . . 760,916,769 843,286,041 767,999,355 703,397,838 700,468,120

Miscellaneous

manufactures . . . . . . . . 76,254,480 94,322,680 69,140,525 73,292,204 99,214,346

Special provisions . . . . . . . 281,832,174 290,634,862 244,786,418 266,316,717 300,702,565

Total . . . . . . . . . . . . . . . . 6,069,427,666 6,521,249,465 5,331,696,707 5,563,284,533 6,750,164,235

U.S. imports for

consumption:

Agricultural products . . . . . 915,079,443 919,205,352 832,664,602 874,842,835 835,736,057

Forest products . . . . . . . . . 101,644,871 105,875,612 109,640,190 140,706,086 119,393,988

Chemicals and related

products . . . . . . . . . . . . 836,248,302 761,863,725 849,130,498 1,453,520,970 659,999,263

Energy-related products . . 11,014,127,414 7,963,730,107 8,000,647,833 15,016,274,113 14,271,302,154

Textiles and apparel . . . . . 471,310,715 568,440,555 621,955,260 789,240,337 997,994,773

Footwear . . . . . . . . . . . . . . 1,393,702 811,477 3,422,670 686,473 1,497,322

Minerals and metals . . . . . 2,269,006,772 2,600,294,817 2,637,107,824 3,200,500,413 3,081,792,446

Machinery . . . . . . . . . . . . . 68,348,991 79,263,206 127,684,349 178,378,794 263,164,492

Transportation

equipment . . . . . . . . . . . 80,000,397 104,616,498 200,824,690 185,261,892 399,937,849

Electronic products . . . . . . 31,105,001 35,007,635 56,392,688 58,338,693 52,706,208

Miscellaneous

manufactures . . . . . . . . 87,203,905 90,246,426 99,488,421 97,421,586 108,557,532

Special provisions . . . . . . . 120,290,387 129,804,995 210,755,394 217,476,691 268,417,088

Total . . . . . . . . . . . . . . . . 15,995,759,900 13,359,160,405 13,749,714,419 22,212,648,883 21,060,499,172

U.S. merchandise trade

balance:

Agricultural products . . . . . -159,163,893 -138,018,086 -104,911,643 -106,069,904 -178,630,729

Forest products . . . . . . . . . 103,485,176 88,118,173 45,343,865 18,285,824 28,174,290

Chemicals and related

products . . . . . . . . . . . . -95,140,240 -83,945,880 -239,056,465 -743,855,867 119,700,664

Energy-related products . . -10,790,304,792 -7,760,847,483 -7,850,480,512 -14,858,772,890 -14,122,112,913

Textiles and apparel . . . . . -264,055,134 -390,613,772 -475,636,002 -653,142,195 -867,467,708

Footwear . . . . . . . . . . . . . . 15,768,136 14,174,769 13,313,596 13,496,638 8,616,635

Minerals and metals . . . . . -2,020,706,799 -2,342,451,135 -2,415,593,637 -2,981,611,777 -2,831,733,729

Machinery . . . . . . . . . . . . . 775,139,887 721,595,544 394,128,881 376,337,491 402,428,227

Electronic products . . . . . . 729,811,768 808,278,406 711,606,667 645,059,145 647,761,912

See footnote at end of table.
7

Table 1-1—Continued

Sub-Saharan Africa: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by major commodity sectors, 1997-20011

(Dollars)

Item 1997 1998 1999 2000 2001

U.S. imports for

consumption–Continued

Transportation

equipment . . . . . . . . . . . . . 1,628,241,296 2,080,892,404 1,499,584,410 1,616,198,541 2,459,986,124

Miscellaneous

manufactures . . . . . . . . . . -10,949,425 4,076,254 -30,347,896 -24,129,382 -9,343,186

Special provisions . . . . . . . . . 161,541,787 160,829,867 34,031,024 48,840,026 32,285,477

Total . . . . . . . . . . . . . . . . . -9,926,332,234 -6,837,910,940 -8,418,017,712 -16,649,364,350 -14,310,334,937

1 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

Note.—Because of rounding, figures may not add to totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.

equipment) and a 21.0 percent share. Third was Angola, with $2.8 billion in sales

(mostly energy-related products), representing a 13.2 percent share. U.S. imports

from Gabon totaled $1.7 billion (mostly energy-related products), and from the

Republic of Congo (ROC), about $0.5 billion. For additional data, see appendix B,

table B-3.3

Total U.S. imports of SSA energy-related products totaled $14.3 billion in 2001, and

accounted for 67.8 percent of all U.S. imports from the region (figure 1-7), down

slightly from $15.0 billion, or 67.6 percent of the total, in 2000 primarily because of

decreased imports of crude petroleum from Nigeria and lower world petroleum

prices. The second-largest import commodity was minerals and metals ($3.1 billion),

which accounted for a 14.6 percent share in 2001, compared with 14.4 percent in

2000. Textiles and apparel ($998.0 million) represented 4.7 percent of the total. For

more information, see the respective industry and sector profiles in Chapter 5.

In absolute terms, the largest increase in U.S. imports from SSA in 2001 came from

transportation equipment (up by $214.7 million, or by 115.9 percent) and textiles and

apparel (up by $208.8 million, or by 26.5 percent). A smaller increase was measured

for imports of machinery (up by $84.8 million, or by 47.5 percent). Significant

decreases of U.S. imports from the region were recorded for chemicals and related

products (down by $793.5 million, or by 54.6 percent), energy-related products

(down by $745.0 million, or by 5.0 percent) and minerals and metals (down by $118.7

million, or by 3.7 percent). Table 1-3 shows the major U.S. commodity imports from

SSA at the HTS six-digit level for 1997-2001. Growth rates by commodity sectors are

shown in figure 1-8.

3 Table B-3 presents changes in sectoral trade between 1997 and 2001 for the 10 largest SSA

trading partners of the United States, based on total trade turnover (exports plus imports).
Table 1-2

Sub-Saharan Africa: U.S. exports, by major commodity items, 1997-2001

(Dollars)

HTSNo. Description 1997 1998 1999 8802.40 Airplanes and other aircraft nesoi, of an unladen weight

exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,651,831 583,041,436 422,581,019 5

8431.43 Parts for boring or sinking machinery, nesoi . . . . . . . . . . . . . . . . . . . 418,795,205 424,669,802 275,529,016 31001.90 Wheat (other than durum wheat), and meslin . . . . . . . . . . . . . . . . . . . 222,732,534 249,814,260 250,978,937 3

9880.00 Estimate of non-Canadian low-value export shipments;

compiled low-value shipments to Canada; and shipmentsnot identified by kind to Canada ........................... 215,865,549 218,069,225 170,295,762 1

8708.99 Parts and accessories for motor vehicles, nesoi . . . . . . . . . . . . . . . . . . 53,878,684 100,549,524 39,465,301 

8703.23 Passenger motor vehicles with spark-ignition internal

combustion reciprocating piston engine, cylinder capacityover 1,500 cc but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . 26,901,995 35,698,704 32,432,411 

8803.30 Parts of airplanes or helicopters, nesoi . . . . . . . . . . . . . . . . . . . . . . . . 155,948,415 170,623,090 133,636,982 18802.30 Airplanes and other aircraft nesoi, of an unladen weight

exceeding 2,000 kg but not exceeding 15,000 kg . . . . . . . . . . . . . 91,106,252 83,919,280 126,941,978 

2713.12 Petroleum coke, calcined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,624,503 47,829,237 58,529,148 8473.30 Parts and accessories for automatic data processing

machines and units thereof, magnetic or optical readers,transcribing machines, etc., nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . 72,128,239 90,430,466 83,915,736 

6309.00 Worn clothing and other worn textile articles . . . . . . . . . . . . . . . . . . . 109,226,985 88,279,006 67,197,046 8704.10 Dumpers (dump trucks) designed for off-highway use . . . . . . . . . . . . 98,499,547 66,496,579 34,551,607 8525.20 Transmission apparatus incorporating reception apparatus

for radiotelephony, radiotelegraphy, radiobroadcasting ortelevision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,485,822 57,769,239 51,256,427 

8431.49 Parts and attachments, nesoi, for derricks, cranes, selfpropelled bulldozers, graders, etc., and other grading,

scraping, etc., machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,070,899 115,179,178 42,965,382 

3100.00 Fertilizers (includes crude fertilizers from other areas) . . . . . . . . . . . . 59,123,714 21,272,909 47,245,848 1006.30 Rice, semi-milled or wholly milled, whether or not polished or

glazed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,015,469 60,671,979 66,826,292 

8431.41 Buckets, shovels, grabs and grips for derricks, cranes,

bulldozers, angledozers, graders, scrapers, borers,extracting, etc., machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,900,429 6,559,782 33,242,507 

9018.90 Instruments and appliances for medical, surgical or veterinary

sciences, nesoi, and parts and accessories thereof . . . . . . . . . . . . . 18,047,507 20,232,903 24,643,085 
Table 1-2—Continued

Sub-Saharan Africa: U.S. exports, by major commodity items, 1997-2001

(Dollars)

HTSNo. Description 1997 1998 1999 3004.90 Medicaments, in measured doses, etc. (excluding vaccines, etc.,

coated bandages etc. and pharmaceutical goods),nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,493,552 13,834,306 23,100,831 

8431.39 Parts for lifting, handling, loading or unloading machinery, nesoi . . . 44,315,191 61,341,532 39,624,085 

8411.12 Turbojets of a thrust exceeding 25 kn . . . . . . . . . . . . . . . . . . . . . . . . . 12,577,928 5,230,000 9,135,000 

8479.89 Machines and mechanical appliances having individual

functions, nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,848,179 36,460,692 24,121,242 

8471.80 Automatic data processing units, nesoi . . . . . . . . . . . . . . . . . . . . . . . . 37,267,196 60,813,890 47,496,386 4901.99 Printed books, brochures, leaflets and similar printed

matter, nesoi ............................................ 24,325,182 22,319,835 25,415,995 

2710.00 Petroleum oils and oils from bituminous minerals (other than crude)

and products therefrom, nesoi, containing 70% (by weight) or

more of these oils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,285,480 44,223,531 40,874,087 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,165,116,287 2,685,330,385 2,172,002,110 2,3

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,904,311,379 3,835,919,080 3,159,694,597 3,2

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,069,427,666 6,521,249,465 5,331,696,707 5,5

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “nesoi” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.
Table 1-3

Sub-Saharan Africa: U.S. imports, by major commodity items, 1997-2001

(Dollars)

HTSNo. Description 1997 1998 1999 2709.00 Petroleum oils and oils from bituminous minerals, crude . . . 7,515,971,485 5,279,111,112 5,001,603,197 8,7232710.00 Petroleum oils and oils from bituminous minerals (other

than crude) and products therefrom, nesoi, containing70 percent (by weight) or more of these oils . . . . . . . . . . 1,815,158,046 1,469,781,506 1,826,913,733 4,1

7110.11 Platinum, unwrought or in powder form . . . . . . . . . . . . . . . 584,092,150 655,025,976 548,919,598 74

7110.21 Palladium, unwrought or in powder form . . . . . . . . . . . . . . 103,263,710 196,517,794 277,486,130 4097102.31 Diamonds, nonindustrial, unworked or simply sawn,

cleaved or bruted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268,456,832 219,992,625 284,056,284 272

8703.24 Passenger motor vehicles with spark-ignition internal

combustion reciprocating piston engine, cyclindercapacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . 11,100 0 82,066 

1801.00 Cocoa beans, whole or broken, raw or roasted . . . . . . . . . 197,735,178 338,189,950 296,213,426 270

9801.00 Imports of articles exported and returned, not advanced in

value or condition; imports of animals exported andreturned within 8 months . . . . . . . . . . . . . . . . . . . . . . . . . 110,574,553 116,923,641 194,089,224 194

2713.11 Petroleum coke, not calcined . . . . . . . . . . . . . . . . . . . . . . . . 615,922,007 361,427,992 381,841,064 6907110.31 Rhodium, unwrought or in powder form . . . . . . . . . . . . . . . 44,846,277 109,587,646 116,393,462 2526110.20 Sweaters, pullovers, sweatshirts, vests and similar articles

of cotton, knitted or crocheted ..................... 63,493,484 80,480,489 90,608,399 139

6203.42 Men’s or boys’ trousers, bib and brace overalls, breeches

and shorts of cotton, not knitted or crocheted ......... 108,679,812 137,674,224 153,515,459 19

6204.62 Women’s or girls’ trousers, bib and brace overalls,

breeches and shorts of cotton, not knitted orcrocheted .................................... 46,439,118 84,313,541 111,721,076 116

2711.29 Petroleum gases and other gaseous hydrocarbons in a

gaseous state, nesoi (other than natural gas) . . . . . . . . . 455,777,584 359,600,828 360,584,427 689

2711.11 Natural gas, liquefied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,658 52,808 6,809 47102.39 Diamonds, nonindustrial, worked, including polished

or drilled ..................................... 133,266,407 107,935,421 83,240,870 15

8421.39 Filtering or purifying machinery and apparatus for

gases, nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 7,564,327 37,344,764 69

2620.90 Ash and residues nesoi, containing metals or metallic

compounds nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,579,165 186,456,068 186,325,531 167

0905.00 Vanilla beans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,117,239 24,832,399 19,950,548 32

2711.12 Propane, liquefied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212,192,366 192,471,048 175,423,891 258
Table 1-3—Continued

Sub-Saharan Africa: U.S. imports, by major commodity items, 1997-2001

(Dollars)

HTSNo. Description 1997 1998 1999 2901.29 Acyclic hydrocarbons, unsaturated, nesoi . . . . . . . . . . . . . . 18,970,276 25,550,839 39,106,809 72606.00 Aluminum ores and concentrates . . . . . . . . . . . . . . . . . . . . 109,293,365 97,317,970 90,715,503 72901.22 Propene (propylene) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,589,664 107,219,749 148,209,953 2742901.21 Ethylene (ethene) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,088,390 81,834,167 108,559,120 256205.20 Men’s or boys’ shirts of cotton, not knitted

or crocheted .................................. 75,762,181 76,834,933 76,119,770 78

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,868,356,047 10,316,697,053 10,609,031,113 18,324

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,127,403,853 3,042,463,352 3,140,683,306 3,887

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,995,759,900 13,359,160,405 13,749,714,419 22,212

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “nesoi” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.
12

Figure 1-6

U.S. imports from major sub-Saharan Africa trading partners, 2001

Source: Compiled from official statistics of the U.S. Department of Commerce.

Other 11.2%

Gabon 8.2%

Angola 13.2%

Nigeria 42.3%

South Africa 21.0%

Eq Guinea 1.9%

Congo (ROC) 2.2 %

Figure 1-7

U.S. imports from sub-Saharan Africa, by commodity sectors, by shares,

2001

Source: Compiled from official statistics of the U.S. Department of Commerce.

Other 4.5%

Agricultural products 4.0%

Textiles and apparel 4.7%

Energy-related products 67.8%

Minerals and metals 14.6%

Special provisions 1.3%

Chemicals and related products 3.1 %
13

--100 --50 0 50 100 150

Percent

Source: Compiled from official statistics of the U.S.Department of Commerce.

Total imports

Footwear

Transportation equipment

Machinery

Textiles and apparel

Special provisions

Miscellaneous manufactures

Minerals and metals

Agricultural products

Energy-related products

Electronic products

Forest products

Chemicals and related products

Figure 1-8

U.S. imports from sub-Saharan Africa: Growth rates by commodity

sectors, 2001

Trade Balance

In 2001, the U.S. merchandise trade deficit with SSA decreased by $2.3 billion to $14.3

billion, compared with a deficit of $16.6 billion in 2000 and $8.4 billion in 1999.

Excluding petroleum, the U.S. trade deficit with the region decreased by $2.8 billion,

from $3.8 billion in 2000 to $1.0 billion in 2001. The nonpetroleum trade deficit totaled

$1.6 billion in 1999 and $0.1 billion in 1998.4

The SSA country with which the United States had the largest trade deficit in 2001

remained Nigeria measured at $8.0 billion, down from $9.0 billion in 2000; followed

by Angola ($2.5 billion in 2001, down from $3.1 billion in 2000); Gabon ($1.7 billion

in 2001, down from $2.0 billion in 2000); South Africa ($1.6 billion in 2001, up from

$1.4 billion in 2000); and ROC ($0.4 billion in 2001 and $0.4 billion in 2000). The

United States had trade surpluses with many SSA countries, including Kenya ($0.4

billion), Namibia ($0.2 billion), and Seychelles ($0.2 billion).

On a sectoral basis, the largest U.S. trade deficit with the SSA region occurred in

energy-related products, with a deficit of $14.1 billion in 2001, down slightly from

$14.9 billion in 2000. Second was minerals and metals, with a deficit of $2.8 billion in

2001, down from $3.0 billion in 2000. The U.S. trade deficit in textiles and apparels

increased from $653 million in 2000 to $868 million in 2001.

4 Data were compiled from official statistics of the U.S. Department of Commerce.
14

Several sectors showed a U.S. trade surplus in the region. The U.S. surplus in

transportation equipment measured $2.5 billion in 2001, up from $1.6 billion in 2000.

Electronic products registered a $648 million surplus in 2001, up from a $645 million

surplus in 2000. Other significant U.S. trade surpluses were in machinery products

($402 million) and chemicals and related products ($120 million). The U.S. trade

surplus in footwear was $8.6 million in 2001 and $13.4 million in 2000.

U.S.-Africa Services Trade

Services are provided to foreign customers through cross-border trade and affiliate

transactions.5 The United States recorded a cross-border services trade surplus with

Africa of $2.6 billion in 2000 (figure 1-9).6 U.S. cross-border services exports totaled

$5.4 billion in 2000, compared to cross-border imports of $2.7 billion. During

1995-2000, U.S. exports of services increased at an average annual rate of 13.4

percent, while U.S. imports of services from Africa increased at a slower average

annual rate of 7.0 percent. The primary U.S. cross-border service exports to Africa

were tourism, freight transport, education, and business services, primarily

construction-related services (table 1-4).7 Tourism alone generated $1.4 billion in U.S.

exports in 2000, or 26.8 percent of all U.S. exports of services to Africa. Exports of

education services reflected the tuition and living expenses of 29,000 African students

studying at U.S. colleges and universities during the 2000-2001 academic year.

African students, whose numbers increased by 12.7 percent over the previous year,

represented approximately 5 percent of all foreign students in the United States.8U.S.

service imports from Africa totaled $2.7 billion in 2000, of which travel and tourism

accounted for 49.7 percent (table 1-5). Passenger transport, freight transport and port

5 When a service, or a provider or a purchaser of a service, crosses national borders, the sale is a

cross-border transaction. When a service provider establishes a commercial presence in a foreign

market (an affiliate), sales are called affiliate transactions.

6 Data regarding cross-border services trade with the African continent are available through

2000. There are no data specific to the SSA region, or to individual countries other than South Africa.

7 Construction-related services are included within business services in table 1-4, and account for

48.7 percent of business services exports. U.S. tourism exports reflect spending by African residents while

traveling in the United States, such as for meals and lodging. Exports of freight transport and port services

stem from merchandise trade. Exports of freight services reflect payments to U.S. carriers in return for

transporting merchandise to foreign ports, while exports of port services reflect costs incurred by foreign

carriers docked in U.S. ports. Exports of education services reflect expenditures by African students

studying at U.S. colleges and universities. Exports of construction-related services include the costs of

construction, as well as pre-erection, design, and maintenance work. For further detail regarding trade

in services, see USITC, Recent Trends in U.S. Services Trade, 2002 Annual Report, pub. 3514, June 2002.

8 Excludes students from Algeria, Egypt, Libya, Morocco, Sudan, Tunisia, and Western Sahara.

Institute of International Education, Open Doors 2001 (New York: Institute of International Education,

2002).
15

0

1000

2000

3000

4000

5000

6000

1997 1998 1999 2000

Million dollars

U.S. exports

U.S. imports

Trade balance

Figure 1-9

U.S. cross-border trade in services with Africa: Exports, imports, and

trade balance, 1997-2000

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of

Current Business, November 2001, pp. 66-67.

Table 1-4

Total Africa and South Africa: U.S. cross-border service exports, 1995 and 2000

(Million dollars)

Africa South Africa

Service 1995 2000

Average

annual

growth 1995 2000

Average

annual

growth

Percent Percent

Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . 699 1,443 15.6 344 429 4.5

Passenger transport . . . . . . . . . . . . . . . . . 33 69 15.9 1 11 61.5

Freight transport and port services . . . . . . 568 602 1.2 84 129 9.0

Royalties and license fees . . . . . . . . . . . . . 205 376 12.9 151 218 7.6

Education . . . . . . . . . . . . . . . . . . . . . . . . . 341 603 12.1 34 43 4.8

Insurance1 . . . . . . . . . . . . . . . . . . . . . . . . . 6 -10 (2) 3 -4 (2)

Telecommunications . . . . . . . . . . . . . . . . . 111 200 12.5 28 98 28.5

Financial services . . . . . . . . . . . . . . . . . . . 66 221 27.3 20 57 23.3

Business services3 . . . . . . . . . . . . . . . . . . . 640 1,455 17.9 81 203 20.2

Other4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 423 16.2 55 164 24.4

Total5 . . . . . . . . . . . . . . . . . . . . . . . . . . 2,869 5,382 13.4 801 1,348 11.0

1 Insurance exports are defined as the difference between premiums received from foreign policy-holders and claims

collected by foreign policy-holders. 2 Not a meaningful number. 3 Data also reflect professional and technical services. 4 Includes intra-corporate transactions; i.e., U.S. parent firms’ receipts from foreign-based affiliates, and U.S.-based affiliates’ receipts from foreign parent firms. Large shares of these receipts are in exchange for financial, computer and information,

and transportation services. Also includes expenditures of foreign governments and international organizations in the United

States, and expenditures of foreign residents employed temporarily in the United States. 5 Due to rounding and suppression of individual company data, figures may not add to totals shown.

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, November 2001, pp. 67-91.
16

Table 1-5

Total Africa and South Africa: U.S. cross-border service imports, 1995 and 2000

(Million dollars)

Africa South Africa

Service 1995 2000

Average

annual

growth 1995 2000

Average

annual

growth

Percent Percent

Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,063 1,359 5.0 198 269 6.3

Passenger transport . . . . . . . . . . . . . . . . . . . . 277 453 10.3 119 255 16.5

Freight transport and port services . . . . . . . . . 183 248 6.3 22 63 23.4

Royalties and license fees . . . . . . . . . . . . . . . . 2 4 14.9 1 1 0

Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 61 22.6 1 (1

) (1)

Insurance2 ............................ 5 -1 (3) -1 -1 0

Telecommunications . . . . . . . . . . . . . . . . . . . . 234 222 -1.0 33 432 67.3

Financial services ...................... 10 31 25.4 5 14 22.9

Business services4 ...................... 138 228 10.6 16 43 21.3

Other5 ............................... 13 131 58.7 4 (1

) (1)

Total6 ............................. 1,947 2,736 7.0 398 799 15.0

1 Data have been suppressed to avoid disclosure of individual company operations. 2 Insurance imports are the difference between premiums paid to foreign insurers and claims received by U.S. policy-holders.

Imports are entered as credits on the balance of payments when claims received by U.S. policy-holders exceed premiums paid to

foreign insurers. 3 Not a meaningful number. 4 Data also reflect professional and technical services. 5 Includes intra-corporate transactions; i.e., U.S. parent firms’ payments to foreign-based affiliates, and U.S.-based affiliates’

payments to foreign parent firms. 6 Due to rounding and suppression of individual company data, figures may not add to totals shown.

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, November 2001, pp. 67-91.

services, and telecommunication services also accounted for significant shares of U.S.

imports from Africa.9

South Africa remained the largest U.S. services trading partner in Africa in 2000,

accounting for 25.0 percent of U.S. exports to and 29.2 percent of U.S. imports from

the region. Tourism accounted for the largest share of U.S. cross-border exports to

South Africa (31.8 percent), followed by royalties and license fees (16.2 percent), and

business services (15.1 percent). Passenger transport, telecommunications, financial

services, and business services registered the most rapid growth rates of U.S.

cross-border service exports to South Africa during 1995-2000, each rising over 20

percent on an average annual basis, compared to 11.0 percent for all service exports.

The largest component of U.S. cross-border service imports from South Africa is

telecommunication services (54.1 percent), followed by tourism (33.7 percent), and

passenger transport services (31.9 percent). Telecommunication services also

9 Imports of tourism and travel services reflect travel expenditures by U.S. residents in Africa,

including those for meals and lodging. Passenger transport services principally include airfares. U.S.

imports of freight transport services reflect payments to foreign carriers in return for transporting

merchandise to U.S. ports, while imports of port services reflect costs incurred by U.S. carriers docked in

foreign ports. Imports of telecommunication services reflect payment by U.S. telecommunication

companies to African telecommunication companies in return for terminating telephone calls outbound

from the United States to Africa.
17

registered the fastest growth, with average annual growth of 67.3 percent during

1995-2000, compared to 15.0 percent average annual growth for all services

imports. Freight transport and port services, financial services, and business services

all recorded average annual growth of greater than 20 percent during the period.

In 1999, majority-owned affiliates of U.S. firms in Africa recorded sales of services

totaling $2.3 billion (table 1-6).10 Sales by U.S.-owned affiliates in South Africa

accounted for 45.0 percent of the total, and sales by U.S.-owned affiliates in Nigeria

accounted for 11.1 percent. U.S. consumers purchased services valued at $1.2 billion

from African-owned affiliates operating in the United States, a significant increase

over 1997 purchases of $263 million, but in line with 1998 sales of $997 million.11

Purchases from South African-owned affiliates were suppressed in 1998 and 1999 to

avoid disclosing individual company information, but in 1997, South African-owned

affiliates accounted for 73.8 percent of all U.S. purchases from affiliates of African

companies. The United States recorded a surplus of $1.1 billion in affiliate transactions

with Africa in 1999.

Table 1-6

Sales and purchases through U.S.-owned affiliates and African-owned affiliates, 1997-99

(Million dollars)

1997 1998 1999

U.S. sales:

Total Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,144 2,274 2,296

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 960 1,134 1,034

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 247 254

U.S. purchases:

Total Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 997 1,196

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 (1

) (1)

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

2) (2) (2)

1 Data have been suppressed to avoid disclosure of individual company operations.

2 Not available.

Source: USDOC, BEA, U.S. Direct Investment Abroad: Preliminary 1998 Estimates, table III-F-17; USDOC, BEA, U.S.

Direct Investment Abroad: Revised Estimates, various issues, table III-F-17; USDOC, BEA, Foreign Direct Investment in

the United States: Preliminary 1998 Estimates, table E-13; and USDOC, BEA, Foreign Direct Investment in the

United States: Revised Estimates, various issues, table E-13.

10 Data on sales by African-based affiliates of U.S. parent firms extend only through 1999, with

country-specific data limited to affiliates located in South Africa and Nigeria. Country-specific

information pertaining to sales by U.S.-based affiliates of African firms is available only for firms with

parent companies in South Africa.

11 The large increase in purchases in 1998 had two primary causes. First, equity in several existing

U.S. affiliates changed hands, shifting the ultimate beneficial owner from a non-African to an African

country. Second, African-owned firms established several new, African-owned affiliates in the United

States, thus increasing total U.S. purchases. Telephone interview with USDOC, Bureau of Economic

Affairs staff, July 8, 2002.
18

Box 1-1: U.S.-Africa Services Trade

Total trade in services between the United States and Africa is relatively small, but takes

widely varying forms, as illustrated by the following examples. In 1999, South Africa’s

largest life insurance and mutual fund company, Old Mutual Holdings, moved its

primary stock market listing to the London Stock Exchange, which allowed the

company to bypass legal restrictions on overseas acquisitions imposed by the South

African Government. Old Mutual subsequently purchased a number of foreign

affiliates, in order to expand into the U.S. and British financial services markets. These

included the acquisitions of two U.S.-based companies, United Asset Management

Corp., for $2.2 billion in June 2000, and Fidelity & Guaranty Life Insurance Co., for

$635 million in September 2001.12

In July 2000, U.S.-based Affiliated Computer Services-Business Process Solutions

(ACS-BPS) established a data entry business in Ghana. The Ghanaian facility

processes medical and dental insurance records for U.S. insurance companies with a

3-hour turnaround time through a dedicated satellite link. The U.S. Embassy in Accra

nominated ACS-BPS for an award to recognize its contribution to the development of

Ghana’s computer services industry.13Also in 2000, U.S. Internet stock brokerage firm

E*Trade opened a South African subsidiary, offering online securities trading to South

Africans.14

In October 2001, U.S.-based Dial-Thru International Corp. announced an agreement

with Telkom SA Ltd., the largest South African telecommunication services provider, to

jointly provide data, fax, and voice telephony services over the Internet, using fiber

optic cables owned by Telkom SA and U.S.-based Global Crossing. The deal is

expected to expand both voice and data traffic between the United States and South

Africa, thus increasing both U.S. exports and imports of telecommunication services.

12 Institutional Investor, “Top Spin,” February 2002; Pensions & Investments, “Changes in Store for

UAM’s Subs,” June 26, 2000, both found at Internet address http://www.proquest.umi.com/, retrieved

on July 2, 2002; and “Old Mutual Completes Purchase of F&G Life,” Fidelity & Guaranty Life Insurance

Co., press release, Sept. 28, 2001, found at Internet address http://www.fglife.com/,retrieved on July 9,

2002.

13 U.S. Department of State telegram, “Award for Corporate Excellence,” message reference No.

01362, prepared by U.S. Embassy, Accra, June 3, 2002.

14 Newsbytes, “E*Trade South Africa Goes Live,” Oct. 2, 2000, found at Internet address

http://www.toolkit.dialog.com/, retrieved on July 3, 2002.
19

CHAPTER 2

AGOA-Related Imports and Investment

This chapter provides information on the African Growth and Opportunity Act,1

including its GSP provisions, as requested by the U.S. Trade Representative’s (USTR)

supplemental letter to the Commission dated July 10, 2002.2 U.S. imports under

AGOA are discussed by major SSA trading partner and commodity sector, as well as

for the SSA region as a whole. Trade data were compiled from official statistics of the

U.S. Department of Commerce. Investment developments related to AGOA are also

discussed. Since AGOA was only enacted in May 2000, AGOA-related investment

data generally are not available. Information on recent AGOA-related investment

was obtained primarily from the U.S. Department of State and various other

publications, such as the EIU, Businessline, and Manchester Trade.

African Growth and Opportunity Act

The Trade and Development Act of 2000, enacted on May 18, 2000, provided for

expanded trade benefits for 48 eligible SSA countries under Title I, which is the AGOA.

The AGOA amends the U.S. GSP program, authorizing the President to provide

duty-free and quota-free treatment for certain SSA products, if, after receiving advice

from the Commission, he determines that the products are not import-sensitive in the

context of imports from these countries.3 The statute also provides for graduation of

countries from the program when they become high-income countries and for removal

of eligibility of articles, or articles from certain countries, under certain conditions.4

On Oct. 2, 2000, the President issued Proclamation 7350, designating 34 countries as

AGOA beneficiaries (table 2-1). On Jan. 18, 2001, Swaziland became the 35th

AGOA beneficiary country.5 All AGOA beneficiaries must undergo an annual review

to determine that they are making continued progress towards a market-based

1 Trade and Development Act of 2000, Pub. L. 106-200, Title I, May 18, 2000, 114 Stat. 252.

2 Copy of the supplemental letter is in appendix A.

3 The U.S. GSP program authorizes the President to grant duty-free access to the U.S. market for

certain goods that are products of designated developing countries and territories. The GSP is authorized

by Title V of the Trade Act of 1974, as amended (19 U.S.C. 2461 et seq.). The President implemented the

original GSP program by Executive Order 11888 on Nov. 24, 1975, and has modified it through later

executive orders and presidential proclamations.

4 U.S. Department of Commerce “The African Growth and Opportunity Act,” found at Internet

address http://www.agoa.gov/About_AGOA/about_agoa.html, retrieved on Aug. 21, 2002. 5 66 Federal Register (FR) 15.
20

Table 2-1

SSA countries designated as beneficiary countries of AGOA on

October 2, 2000 (34)

Benin Guinea-Bissau Republic of the Congo

Botswana Kenya Rwanda

Cape Verde Lesotho São Tomé and Principe

Cameroon Madagascar Senegal

Central African Republic Malawi Seychelles

Chad Mali Sierra Leone

Djibouti Mauritania South Africa

Eritrea Mauritius Tanzania

Ethiopia Mozambique Uganda

Gabon Namibia Zambia

Ghana Niger

Guinea Nigeria

Source: USDOC, “Country Eligibility List,” found at Internet address http://www.agoa.gov,

retrieved Nov. 22, 2002.

economy, the rule of law and political pluralism, free trade, and economic policies that

will reduce poverty and protect workers’ rights. On Dec. 31, 2001, the President

approved the designation of 35 SSA countries as AGOA-eligible under the annual

review.6 Côte d’Ivoire was designated the 36th AGOA beneficiary country on May 16,

2002.7

On Aug. 6, 2002, the President signed the Trade Act of 2002, modifying certain

provisions of AGOA and expanding preferential access for imports from beneficiary

SSA countries. The modifications, which are collectively referred to as AGOA II,8

became effective immediately upon enactment. AGOA II amended AGOA to

accomplish the following: (1) to provide preferential treatment to “wholly assembled”

apparel articles assembled in one or more beneficiaries from U.S. or SSA

knit-to-shape components; (2) to provide preferential treatment for apparel articles

that are cut both in the United States and in beneficiary countries; (3) to make a

technical correction to allow SSA producers to take advantage of the AGOA benefit

for merino wool sweaters; (4) to increase gradually the cap for apparel made in SSA

from regional fabric made with regional yarn from the previous level of 1.5 to 3.5

percent of U.S. consumption to the new level of 3 to 7 percent over 8 years; and (5) to

grant Namibia and Botswana lesser-developed beneficiary country (LDBC) status,

and to allow producers in these LDBCs to use third country fabric and yarn

6 White House, “President Approves Tariff Preferences,” found at Internet address

http://www.white house.gov/news/releases/2002/20020102-4.html, retrieved on Feb. 11, 2002.

7 67 FR 98.

8 Sec. 3108 of The Trade Act of 2002, Pub. L. 107-210, 116 Stat. 1038.
21

in qualifying apparel through September 2004.9 This change in designation provides

LDBCs greater flexibility in sourcing inputs for duty-free apparel exports to the United

States, and expressly adds these two countries to this group despite their slightly higher

per capita GNP levels.

AGOA II was designed to improve the operation of AGOA and to improve SSA

country utilization of the AGOA program. The program reflects the U.S. commitment

to three broad goals: (1) to promote economic development in developing and

transitional economies through increased trade rather than foreign aid; (2) to

reinforce U.S. trade policy objectives that encourage beneficiary countries to open

their markets, to comply more fully with international trading rules, and to participate

more actively in the international trading system; and (3) to help maintain U.S.

international competitiveness by lowering the costs for U.S. business, as well as

lowering prices for American consumers.

On Jan. 24, 2002, the USTR published a Federal Register notice announcing the

timetable for public hearings for consideration of two petitions to alter AGOA benefits

for two products. One petition by Northwest Horticultural Council, Yakima, WA;

California Pear Advisory Board, Sacramento, CA; Washington-Oregon Canning

Pear Assn., Yakima, WA; Pacific Coast Producers, Lodi, CA; and Signature Fruit Co.,

LLC, San Roman, CA, proposed the termination of canned pears as a GSP-eligible

article. The second petition by Eramet Marietta Inc., Marietta, OH, and Manganese

Metal Company Ltd., South Africa, proposed the designation of manganese metal as

a GSP-eligible article when imported from AGOA beneficiary countries.10

Apparel Provisions

AGOA authorizes preferential treatment for qualifying textiles and apparel from

eligible SSA countries until Sept. 30, 2008. The trade benefits are available to

designated AGOA beneficiaries provided they meet certain customs-related

requirements, including the adoption of procedures to prevent unlawful

transshipments and the use of counterfeit documents. AGOA provides for duty-free

and quota-free access to the U.S. market for apparel made in eligible SSA countries

from U.S. fabric, yarn, and thread. It also provides for substantial growth of duty-free

and quota-free apparel imports made from fabric produced in SSA beneficiaries.

Apparel imports made with African fabric and yarn are subject to a cap of 3 percent of

overall U.S. apparel imports beginning in 2000, and growing to 7 percent of overall

imports over an 8-year period. The cap is measured in square meter equivalents, and

9 LDBCs are designated SSA beneficiaries with a per capita GNP of less than $1,500 in 1998. U.S.

Department of Commerce, “President Bush Signs the Trade Act of 2002 on Aug. 6, 2002 — Including

AGOA II,” found at Internet address http://www.agoa.gov/index.htm, retrieved on Aug. 21, 2002.

10 67 FR 16.
22

has no dollar equivalent. Under a special rule, Botswana, Namibia, and other LDBCs

are to enjoy duty-free U.S. market access for apparel made from fabric and yarn

originating anywhere in the world until Sep. 30, 2004. Apparel imported under the

special rule is counted against a cap.11 The Secretary of Commerce is directed to

monitor apparel imports on a monthly basis to guard against surges. If increased

imports are threatening serious damage to the U.S. apparel industry, the President is to

suspend duty-free treatment for the article in question. Preferential treatment for

apparel took effect on Oct. 1, 2000; however, beneficiary countries must first establish

that they have effective visa and enforcement mechanisms to prevent illegal

transshipment. As of November 2002, 18 countries had met these requirements and

became eligible for the apparel trade benefits. These countries are: Botswana,

Cameroon, Cape Verde, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi,

Mauritius, Mozambique, Namibia, Senegal, South Africa, Swaziland, Tanzania,

Uganda, and Zambia. The USTR has determined that the LDBCs – all 18 countries listed

above, excluding Mauritius and South Africa – are eligible for the special rule

benefits.12

AGOA Forum

President Bush established the U.S.-SSA Trade and Economic Cooperation forum

(AGOA Forum) on May 16, 2001, to complement the AGOA.13 The first AGOA Forum

was held in Washington, D.C., on Oct. 29-30, 2001. The Forum was hosted by the

Secretaries of State, Treasury, and Commerce, and the USTR. Trade, foreign affairs,

and finance ministers from 35 eligible SSA countries participated, along with

representatives from African regional organizations. The forum serves as a vehicle for

regular dialogue between the United States and SSA countries on issues of economics,

trade, and investment. President Bush addressed the Forum, and in his address,

announced the creation of a $200 million Overseas Private Investment Corporation 14

support facility to give American firms access to loans, guarantees, and political risk

insurance for investment projects in SSA. The President also announced the

establishment of a Trade and Development Agency15 (TDA) regional office in

Johannesburg, South Africa, and the TDA Trade for African Development and

Enterprise Program, to provide guidance and assistance to governments and

companies that seek to liberalize their trade laws, to improve the investment

environment, and to take advantage of AGOA.

11 Ibid.

12 U.S. Department of Commerce, “African Growth and Opportunity Act Country Eligibility List,”

found at Internet address http://www.agoa.gov/Eligibility/eligibility.htm, retrieved on Nov. 22, 2002.

13 USTR, “President Bush and USTR Zoellick Open First U.S.-Sub-Saharan Africa Trade Forum,”

found at Internet address http://www.ustr.gov/releases/2001/10/01-90.htm, retrieved on Feb. 15,

2002.

14 The Overseas Private Investment Corporation is discussed in greater detail in chapter 4.

15 The Trade and Development Agency is discussed in greater detail in chapter 4.
23

The first AGOA forum focused on measures that the United States and SSA countries

can take jointly to stimulate economic growth and trade, to enhance democracy and

good governance, and to combat HIV/AIDS. During the forum, U.S. officials

emphasized the United States’ strong commitment to SSA and noted the initial success

of increased trade under the AGOA program. (See AGOA imports discussion below).

U.S. and SSA delegates underscored the necessity of good governance, rule of law,

and political freedom to attract investment and to achieve economic growth. The use of

African co-chairs and active question and answer sessions allowed SSA officials the

opportunity to speak openly about the benefits and challenges of AGOA.16

On Oct. 30, 2001, U.S. Trade Representative Zoellick, signed two agreements–a

U.S.-Nigerian Joint Declaration on Electronic Commerce, and a Trade and Investment

Framework Agreement (TIFA) between the United States and the Common Market for

Eastern and Southern Africa (COMESA). The TIFA represents the first agreement

between the United States and a regional organization in SSA.17

On Apr. 24, 2002, the Deputy U.S. Trade Representative, Ambassador Jon

Huntsman, signed a TIFA agreement between the United States and the West African

Economic Monetary Union (WAEMU).18

U.S. Imports under AGOA

The first U.S. imports under the additional AGOA benefits entered the United States in

January 2001. As shown in table 2-2 and figure 2-1, the countries supplying the most

U.S. imports under AGOA (including its GSP provisions) during 2001, included

Nigeria ($5.7 billion or 70 percent), Gabon ($938.8 million or 12 percent), and South

Africa ($923.2 million or 11 percent). These three countries combined accounted for

more than 92 percent of U.S. imports under AGOA (including GSP) in 2001. These

three countries’ combined imports, however, accounted for 88 percent during the first

half of 2002 as countries such as Lesotho ($142 million), Madagascar ($61 million),

and Mauritius ($55 million) increased their AGOA (including GSP) imports. For some

beneficiary countries, U.S. imports under additional AGOA benefits represented a

substantial portion of total AGOA (including GSP) imports (figure 2-1). For example,

for the following countries, U.S. imports under additional AGOA benefits represented

more than half of total AGOA (including GSP) imports: Nigeria (99 percent), Gabon

(99 percent), Lesotho (99 percent), the Republic of the Congo (99 percent), Cameroon

(99 percent), Madagascar (95 percent), Kenya (94 percent), Rwanda (83 percent),

Mauritius (72 percent), and Swaziland (56 percent).

16 U.S. Department of Commerce, “The First U.S.-Sub-Saharan African Trade and Economic

Cooperation Forum,” found at Internet address http://www.agoa.gov/AGOA_Update/ agoa_

update.html, retrieved on Feb. 19, 2002.

17 USTR, “Remarks on the Signing of the U.S.-COMESA Trade and Investment Framework

Agreement,” Oct. 29, 2001.

18 USTR, “United States and West African Nations Sign Agreement Promoting Trade,” Apr. 24,

2002.
Table 2-2

U.S. imports under AGOA, by sources, 2001, Jan.-June 2001, and Jan.-June 2002

(1,000 dollars)

2001 Jan.-June 2001 

Source

AGOA

(includes GSP) GSP

AGOA

(includes GSP) GSP

(inc

Benin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 178 0 0 Botswana . . . . . . . . . . . . . . . . . . . . . . . . . 1,221 1,221 558 558 Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . 37,174 443 16,541 293 Cape Verde . . . . . . . . . . . . . . . . . . . . . . . 152 152 75 75 Congo (ROC) . . . . . . . . . . . . . . . . . . . . . . 130,235 1,489 13,385 65 Côte d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . 13,321 13,321 6,525 6,525 Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . 822 607 270 270 Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . 938,760 65 448,501 18 Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,889 9,797 24,784 5,839 Guinea . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 191 86 86 Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,873 3,783 17,887 1,738 Lesotho . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,592 69 4,905 0 Madagascar . . . . . . . . . . . . . . . . . . . . . . . 97,105 4,959 13,749 3,987 Malawi . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,362 23,305 16,744 16,744 Mali . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 293 142 142 Mauritania . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . 53,975 15,076 12,785 4,203 Mozambique . . . . . . . . . . . . . . . . . . . . . . . 5,278 5,278 21 21 Namibia . . . . . . . . . . . . . . . . . . . . . . . . . . 93 93 2 2 Niger . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 42 42 42 Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,688,461 359 2,335,079 172 2Rwanda . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 53 33 33 Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . 567 567 312 312 Seychelles . . . . . . . . . . . . . . . . . . . . . . . . . 4,230 4,230 2,233 2,23 Sierra Leone . . . . . . . . . . . . . . . . . . . . . . . 387 387 191 191 South Africa . . . . . . . . . . . . . . . . . . . . . . . 923,243 505,987 395,690 260,193 Swaziland . . . . . . . . . . . . . . . . . . . . . . . . . 14,770 6,456 23 17 Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . 899 883 206 195 Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 141 72 72 Zambia . . . . . . . . . . . . . . . . . . . . . . . . . . . 775 765 724 714 

Total . . . . . . . . . . . . . . . . . . . . . . . . . 8,179,346 600,189 3,311,565 304,742 

Source: Compiled from official statistics of the U.S. Department of Commerce.
25

0 20 40 60 80 100

Nigeria

Gabon

Lesotho

Congo (ROC)

Cameroon

Madagascar

Kenya

Rwanda

Mauritius

Swaziland

AGOA imports

GSP only

Additional AGOA benefits

Figure 2-1

U.S. imports under AGOA, by top AGOA beneficiaries, by percent of additional AGOA

benefits, 2001

Source: Compiled from official statistics of the U.S. Department of Commerce.

5,688,461

938,760

129,592

130,235

37,174

97,105

58,873

318

53,975

14,770

($1,000)

Percent

AGOA (including GSP) imports were dominated by U.S. purchases of energy-related

products in 2001 (table 2-3). U.S. imports of energy-related products during the

second quarter of 2002 totaled $3.0 billion, 87.3 percent of the AGOA (including

GSP) total. The remaining AGOA (including GSP) imports comprised smaller

quantities of textiles and apparel, transportation equipment, minerals and metals,

agricultural products, and chemicals and related products.19 Table 2-4 shows the

major U.S. commodity imports under AGOA from SSA at the six-digit level of the

Harmonized Tariff Schedule (HTS) for this period.

AGOA-Related Investment

This section discusses AGOA-related investment in SSA. The first part reviews the

examples of AGOA-related investment in SSA. The second part discusses the

facilitating role AGOA plays in increasing investment and encouraging economic

reform.

19 Chapter 5 provides additional details on production, trade, and investment for five of these

sectors: agriculture, fisheries, and forest products; chemicals; petroleum and energy-related products;

minerals and metals; and textiles and apparel.
Table 2-3

Major U.S. imports under AGOA, by major commodity sectors, 2001, Jan.-June 2001, and Jan.-June 2002

2001 Jan.-June 2001 

Sector

AGOA

(includes GSP) GSP

AGOA

(includes GSP) GSP

A

(includes 

Value (1,000 dollars)

Energy-related products . . . . . . . . . . . . . . 6,827,424 2 2,832,569 2 3,03Textiles and apparel . . . . . . . . . . . . . . . . . 359,469 3,564 48,029 1,940 364Minerals and metals . . . . . . . . . . . . . . . . . 319,134 227,927 154,186 120,195 13Transportation equipment . . . . . . . . . . . . . 300,539 59,339 106,284 24,705 24Agricultural products . . . . . . . . . . . . . . . . . 153,515 94,525 53,090 41,444 7Chemicals and related products . . . . . . . . 128,083 124,271 62,459 61,744 6Miscellaneous manufactures . . . . . . . . . . . 33,049 32,749 17,314 17,254 1Machinery . . . . . . . . . . . . . . . . . . . . . . . . . 22,988 22,976 18,370 18,370 Forest products . . . . . . . . . . . . . . . . . . . . . 21,728 21,662 12,619 12,619 1Electronic products . . . . . . . . . . . . . . . . . . 13,174 13,174 6,468 6,468 4Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . 242 0 177 0 

Total, all sectors . . . . . . . . . . . . . . . . . 8,179,346 600,189 3,311,565 304,742 3,97

AGOA imports as a share of total sector imports from SSA (Percent)

Energy-related products . . . . . . . . . . . . . . 61.87 0.00 46.02 0.00 Textiles and apparel . . . . . . . . . . . . . . . . . 36.59 0.36 11.22 0.45 Minerals and metals . . . . . . . . . . . . . . . . . 10.57 7.55 9.30 7.25 Transportation equipment . . . . . . . . . . . . . 75.16 14.84 60.53 14.07 Agricultural products . . . . . . . . . . . . . . . . . 19.44 11.97 13.27 10.36 Chemicals and related products . . . . . . . . 22.23 21.56 15.36 15.18 Miscellaneous manufactures . . . . . . . . . . . 37.36 37.02 38.16 38.03 Machinery . . . . . . . . . . . . . . . . . . . . . . . . . 8.74 8.74 12.97 12.97 Forest products . . . . . . . . . . . . . . . . . . . . . 18.85 18.79 19.72 19.72 Electronic products . . . . . . . . . . . . . . . . . . 25.45 25.45 25.05 25.05 Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . 17.60 0.00 16.35 0.00 

Total, all sectors . . . . . . . . . . . . . . . . . 46.54 3.42 34.54 3.18 

Note.–Because of rounding, figures may not add to the totals shown.Source: Compiled from official statistics of the U.S. Department of Commerce.
Table 2-4

Leading U.S. imports under AGOA, by HTS descriptions, 2001, Jan.-June 2001, and Jan.-June 2002

(1,000 dollars)

2001 Jan.-June 2001 

HTS6 Description

AGOA

(includes GSP) GSP

AGOA

(includes GSP) GSP

(i

270900 Petroleum oils and oils obtained from bituminous

minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,548,533 0 2,744,263 0 

271000 Petroleum oils and oils obtained from bituminous

minerals, other than crude; and preparations,n.e.s.o.i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,888 0 88,304 0 

870324 Passenger motor vehicles with spark-ignition

internal-combustion reciprocating piston engine,cylinder capacity over 3,000 cc . . . . . . . . . . . . . . 232,277 0 78,449 0 

620462 Women’s or girls’ trousers, etc., of cotton, not knitted

or crocheted ............................. 98,519 0 18,387 0 

620342 Men’s or boys’ trousers, bib and brace overalls,

breeches and shorts not knitted or crocheted, ofcotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,362 0 14,094 0 

611020 Sweaters, pullovers, sweatshirts, waistcoats (vests)

and similar articles, knitted or crocheted, of cotton 61,964 0 2,331 0 

760612 Rectangular plates, sheets and strip, over 0.2 mm

thick, of aluminum alloy . . . . . . . . . . . . . . . . . . . . 55,478 55,478 28,372 28,372 

720241 Ferrochromium, containing by weight more than 4

percent of carbon . . . . . . . . . . . . . . . . . . . . . . . . . 42,853 42,853 30,051 30,051 

720230 Ferrosilicon manganese . . . . . . . . . . . . . . . . . . . . . . 37,388 37,387 15,209 15,209 720211 Ferromanganese, containing by weight more than 2

percent of carbon . . . . . . . . . . . . . . . . . . . . . . . . . 28,058 0 9,147 0 

170111 Cane sugar, raw, in solid form, not containing added

flavoring or coloring matter ................. 27,561 27,561 7,208 7,208 

280469 Silicon, containing by weight less than 99.99 percent

of silicon ................................ 24,692 24,692 12,563 12,563 

240120 Tobacco, partly or wholly stemmed/stripped . . . . . . 23,968 15,769 13,079 13,079 711319 Articles of jewelry and parts thereof, of precious

metal (excluding silver) . . . . . . . . . . . . . . . . . . . . . 23,833 23,833 12,200 12,200 
Table 2-4--Continued

Leading U.S. imports under AGOA, by HTS descriptions, 2001, Jan.-June 2001, and Jan.-June 2002

(1,000 dollars)

2001 Jan.-June 2001 

HTS6 Description

AGOA

(includes GSP) GSP

AGOA

(includes GSP) GSP

(i

720219 Ferromanganese, containing by weight 2 percent or

less of carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,351 23,351 11,237 11,237 

870870 Road wheels and parts and accessories thereof, for

motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,374 21,374 7,661 7,661 

611010 Sweaters, pullovers, sweatshirts, vests and similar

articles of wool or fine animal hair, knitted orcrocheted ............................... 20,242 0 1,075 0 

080510 Oranges, fresh or dried . . . . . . . . . . . . . . . . . . . . . . 14,490 0 760 0 850433 Electrical transformers n.e.s.o.i., having a power

handling capacity exceeding 16 kVA but notexceeding 500 kVA . . . . . . . . . . . . . . . . . . . . . . . 14,314 14,314 14,314 14,314 

620520 Men’s or boys’ shirts of cotton, not knitted or

crocheted ............................... 13,823 0 3,301 0 

410790 Leather of animals n.e.s.o.i., without hair on 13,728 13,358 7,359 7,327 284390 Inorganic or organic compounds of precious metals,

not gold or silver, whether or not chemicallydefined; amalgrams of precious metals . . . . . . . . 13,216 13,216 10,805 10,805 

220710 Ethyl alcohol, undenatured, of an alcoholic strength

by volume of 80 percent or higher 11,572 180 3,900 0 

721049 Flat-rolled iron or nonalloy steel, not corrugated, 600

mm or more wide, plated or coated with zincother than electrolytically . . . . . . . . . . . . . . . . . . . 10,881 0 1,701 0 

282010 Manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . . 10,389 10,389 3,584 3,584 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,733,755 323,756 3,139,354 173,610 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445,592 276,433 172,211 131,131 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,179,346 600,189 3,311,565 304,742 

Note.–Because of rounding, figures may not add to totals shown. The abbreviation “nesoi” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.
29

Examples of AGOA-Related Investment

In addition to having the goal of increasing market access to the United States, AGOA

was implemented to encourage investment in SSA. Increased levels of investment also

facilitate knowledge, managerial skill, and technology transfers that support

long-term economic growth. Despite the crucial role played by investment, specific

identification of the motivating factors remains a difficult task, as investment decisions

are often very complex and can rarely be attributed to a single factor. Components of

investment decisions include domestic market size, labor market flexibility,

infrastructure, especially transportation, political stability, macroeconomic stability,

and the overall investment climate, as well as numerous other factors. AGOA eligibility

improves the overall investment climate in SSA by affording eligible countries duty-free

access to the U.S. market. Table 2-5 lists selected examples of AGOA-related

investment, employment increases, and industry output expansion in SSA.

Table 2-5

Selected examples of recent AGOA-related investment, employment increases, and industry

output expansion, 2000-2002

Country Examples

Botswana As of early 2002, five companies in the textiles sector had obtained necessary approval to commence

exports under AGOA.1

Côte d’Ivoire In anticipation of AGOA qualification, Henan Youbioa Textile (China), in partnership with an Ivorian

entrepreneur, prepared to invest $9 million in a new textile factory to export under AGOA.2

Kenya Economy-wide, AGOA is expected to create 50,000 jobs directly and 150,000 jobs indirectly.3

AGOA helped Kenya revive its cotton growing sector. From August 2000 to July 2001, Kenyan textile

exports to the United States quadrupled, thereby encouraging cotton farmers to increase production.4

Lesotho Textile manufacturing projects investments were the main source of foreign exchange and new

employment in Lesotho. Most investors were from Taiwan, South Africa, and South Korea.5

In 1999, 17,000 textiles workers were employed in the industry, into which companies, most of Asian

origin, have invested millions to access the U.S. market through the AGOA program. As of January

2002, there were 40,000 employees, each earning an average of $80 a month.6

The U.S. market has become an increasingly important destination for clothing and footwear exports,

and accounted for nearly half of Lesotho’s total exports. This trend is expected to continue as the country

continues to benefit from AGOA.7

The Swaziland factory, combined with Nien Hsing’s (Taiwan) factories in Lesotho, was expected to give

the company a monthly output of 93,000 dozen garments.8

The Lesotho government received plans for over $120 million in new investments aimed at exporting

products under the AGOA program.9

Madagascar AGOA was a significant incentive for new investment in Madagascar, which represented $113 million,

generating 52 new apparel companies and 43,000 new jobs in 2001.10

Since Madagascar qualified for AGOA, economy-wide employment increased by 10 percent.11

Madagascar’s textile and apparel exports to the United States in 2001 increased 83 percent. This

increase was due, in part, to the special apparel provision of AGOA which allows poorer countries to

use any textile materials for exports.12

Foreign investments rose sharply in Madagascar after it qualified for trade benefits under AGOA.13

See footnotes at end of table.
30

Table 2-5-Continued

Selected examples of recent AGOA-related investment, employment increases, and industry

output expansion, 2000-2002

Country Examples

Madagascar’s exports of textiles and garments to the United States were $64.5 million in the first half of

2001, thereby encouraging businesses to triple industrial investment. Investment in the industry in the first

half of 2001 represented a 200 percent increase over the whole of 2000.14

Mauritius According to the Mauritius Freeport Authority, AGOA encouraged Mast Industries Ltd. (U.S.), the GAP

(U.S.), Eddie Bauer (U.S.), and William E. Conner & Assoc. (Hong Kong) to open regional buying offices

in the country. Also in the textile sector, Shenxi (China) was building a $60 million spinning mill. CMT Ltd.

(Mauritius) and Indo Count Industries Ltd. (India) jointly invested $40 million in an additional cotton

spinning plant. The Mauritius Board of Investment reviewed other projects worth over $100 million

submitted by Indian, Swiss, and Italian companies.15

Namibia In early 2002, Ramatex Textiles (Malaysia) constructed an integrated textile and clothing complex in

Windhoek’s Otjimuise suburb. The Namibia Investment Center stated that negotiations were underway

for two additional factories.16

Rwanda The Hong Kong-based firm Competent Group of Garment Manufacturing announced plans to invest $11

million to establish a manufacturing plant in Rwanda. The plant is expected to provide employment for

2,500 Rwandans and to produce knitwear and cotton clothing for export to the U.S., European, and

African markets.17

South Africa In August 2001, Frame Textiles (South Africa) planned investments worth $25 million over the following

two years to boost competitiveness and capacity in a bid to penetrate the U.S. market more effectively.18

A representative of the Clothing Industry Export Council stated that AGOA-related activities and

investment could lead to 300,000 new jobs in the clothing industry and a further 100,000 jobs in the

textiles industry, with additional job opportunities in the agricultural sector from increased cotton

production.19

As of mid-2002, nearly 90,000 South Africans were employed in jobs related to industries accessing

AGOA benefits.20

As of September 2001, the main South African sectors to benefit from AGOA were the apparel, steel,

and automotive sectors, as well as certain sectors of the fruit industry. Some parts of the fruit industry

held a 50 percent share in the U.S. market.21

According to the National Association of Automobile Manufactures of South Africa, the increase in

exports of locally assembled cars and commercial vehicles in 2001 was, in part, due to AGOA.22

In October 2000, Ramatex (Malaysia) invested $110 million in a textile mill and export garment factory in

the Eastern Cape in an AGOA-related investment.23

Swaziland In Swaziland, Nan Woei Industrial (Taiwan) invested $2.4 million in new sewing machines. Nien Hsing

Textile opened a new denim plant in Swaziland, with a capacity of 45,000 dozen garments a month.

The Swaziland factory, combined with Nien Hsing’s factories in Lesotho, is expected to give the company

a monthly output of 93,000 dozen garments. Nien Hsing invested NT $1 billion ($28.9 million) in a denim

fabric mill which will produce 1.6 million yards per month.24

The minister of finance stated that 18 foreign manufactures had indicated their intention to invest a total

of E188 million ($21.9 million) in 2002 in order to gain U.S. market access through AGOA.

Consequently, AGOA expiration would lead to significant job losses.25

AGOA helped attract Tex-Ray (Taiwan) to Swaziland. The company invested $24 million to expand its

factory. This investment is expected to create 4,000 new jobs.26

See footnotes at end of table.
31

Table 2-5-Continued

Selected examples of recent AGOA-related investment, employment increases, and industry

output expansion, 2000-2002

Country Examples

Uganda In February 2002, the Ugandan minister of Tourism and Trade launched Star Coffee. The firm invested

about Shs 150 million ($85,000) in processing the coffee. For the first time in 100 years, a Ugandan firm

added value to coffee and exported it as a processed product. The coffee was processed into instant

coffee and exported to the United States.27

In order to take advantage of AGOA, the government encouraged farmers to grow cotton through its

Cotton Development Organization. The historical cotton growing areas have resumed cotton production,

and Uganda boasts of its excellent long staple cotton.28

OTK (South Africa) bought a cotton gin in Uganda to supply South African spinners with raw materials to

fully exploit AGOA.29

1 EIU Viewswire, “Botswana: Business: Industry Overview: Manufacturing,” Apr. 8, 2002.

2 EIU Viewswire, “Côte d’Ivoire: Business: Industry Overview: Manufacturing,” Apr. 16, 2002.

3 Inter Press Service, “Economy/ Africa Grew Faster in Developing World in 2001-Study,” May 31, 2002.

4 EIU Viewswire, “Sub-Saharan Africa: Economy: News Analysis: US Trade Legislation has Brought Benefits for

Some,” Aug. 31, 2001.

5 U.S. Department of State, “Lesotho Investment Climate Statement 2002,” MASERU 00407, found at Internet address

http://www.itc.newsedge-web.com, retrieved on June 14, 2002.

6 The Survivor (Lesotho), “Africa a Focus for US Investment,” Jan. 24, 2002.

7 EIU Viewswire, “Lesotho: Business: Industry Overview: Manufacturing,” Apr. 8, 2002.

8 Manchester Trade: Africa Business & Policy Update, “Taiwan: Garment Makers Expand Sub-Saharan Africa

Plants,” July 25, 2002.

9 Inter Press Service, “Economy/ Africa Grew Faster in Developing World in 2001-Study,” May 31, 2002.

10 U.S. Department of State, Cable ANTANA 01768, Aug. 2, 2002.

11 Manchester Trade: Africa Business & Policy Update, “USTR Robert B. Zoellick Visits Sub-Saharan Africa February

14-20,” Feb. 21, 2002.

12 Manchester Trade: Africa Business & Policy Update, “Investment Key to AGOA Success,” July 31, 2002.

13 Inter Press Service, “Economy/ Africa Grew Faster in Developing World in 2001-Study,” May 31, 2002.

14 EIU Viewswire, “Madagascar: Economy: News Analysis: Disruption to Exports Threatens Trade,” Apr. 2, 2002.

15 U.S. Department of State, Cable PORT L 00922, Aug. 9, 2002.

16 EIU Viewswire, “Namibia: Business: News Analysis: Ramatex Textiles Complex on Track,” Feb. 14, 2002.

17 BBC Monitoring, “Hong Kong Textile Company Pledges to Invest 11m Dollars in Rwanda,” Nov. 19, 2001.

18 EIU Viewswire, “Sub-Saharan Africa: Economy: News Analysis: US Trade Legislation has Brought Benefits for

Some,” Aug. 31, 2001.

19 EIU Viewswire, “South Africa: Business: News Analysis: Textile Firms Come to Terms with Globalization,” Dec. 8,

2002.

20 The Associated Press, “Report Shows U.S. Trade Deal Boosting South Africa’s Economy,” Aug. 16, 2002.

21 Business Monitor International, “South Africa: Quarterly Economic Outlook-Q4 2001 Economic Outlook,” Sept. 28,

2002.

22 EIU Viewswire, “South Africa: Business: News Analysis: Automotive and Pharmaceuticals Updates,” Jan. 31, 2001.

23 EIU Viewswire, “South Africa: Economy: News Analysis: Country Seeks Inroads into US Market,” Nov. 15, 2000.

24 Manchester Trade: Africa Business & Policy Update, “Taiwan: Garment Makers Expand Sub-Saharan Africa

Plants,” July 25, 2002. (1 US$ = 34.7 NT.)

25 EIU Viewswire, “Swaziland: Economy: News Analysis: Concern Grows Over AGOA Benefits,” May 28, 2002.

(1 US$ = 8.6E.)

26 EIU Viewswire, “Swaziland: Economy: News Analysis: US has Renewed AGOA Eligibility,” Feb. 14, 2002.

27 Katamba Mohammed, “Local Firm Produces Instant Coffee for American Market,” The Monitor (Kampala), Feb.

22, 2002. (1 US$ = 1,755.7 Shs.)

28 U.S. Department of State, Cable KAMPAL 02074, Aug. 8, 2002.

29 Jim Fisher-Thompson, “AGOA Creating New Jobs and Investment in South Africa: USTR Zoellick Will Visit the

Country,” Manchester Trade: Africa Business & Policy Update, Feb. 12, 2002.
32

Investment Climate and Reform Facilitating Role of

AGOA

In order to receive AGOA benefits, a country must have or be making progress toward

the following:

S a market-based economy,

S the rule of law and political pluralism,

S elimination of barriers to U.S. trade and investment,

S protection of intellectual property,

S efforts to combat corruption,

S policies to reduce poverty,

S increasing availability of health care and educational opportunities,

S protection of human rights and worker rights, and

S elimination of certain child labor practices.20

A government’s commitment to these AGOA requirements stands to help create an

investment-friendly environment that signals to potential investors the country’s

commitment to market-based policies.21 Numerous AGOA-eligible governments have

recognized this aspect of AGOA, and have used AGOA eligibility to attract investment

and to undertake reforms (table 2-6).

20 Trade and Development Act of 2000, Pub. L. 106-200, Title I, May 18, 2000, 114 Stat. 252. For

more information on AGOA eligibility requirements, see information found at Internet address

http://www.agoa.gov. 21 EIU Viewswire, “Country seeks inroads into U.S. market,” Nov. 15, 2000.
33

Table 2-6

Selected examples of AGOA-related facilitation of investment and reform, 2000-2002

Country Examples

Madagascar In an effort to maintain the AGOA-driven investment levels in the textile industry, the government

announced plans to reduce regulatory hurdles, such as reducing waiting time for securing official

approval for investment in the export processing zone and allowing the development of export

processing zones on privately-owned land.1

Mauritius An advisor to the Prime Minister of Mauritius urged Indian businessmen to make investments in order to

take advantage of AGOA.2

The Mauritian Information Technology Minister, while leading an information technology and

telecommunications delegation to India, stated, “Our inclusion in the Africa Growth and Opportunities

Act can also be leveraged [as an investment opportunity].”3

Nigeria The Nigerian government assisted Nigerian manufacturers in exporting goods to the United States under

the AGOA program in order to achieve export expansion and diversification, as well as to improve the

Nigerian economy.4

Senegal The government expended significant energy to attract investors interested in relocating existing apparel

factories to Senegal, in particular from Mauritius, in order to access AGOA benefits.5

Swaziland In 2001, Swaziland was warned that it would lose its AGOA benefits if its human rights record did not

improve. The embassy of Taiwan in Swaziland expressed, for the first time, disapproval towards an

action of the Swaziland government. Taiwan is a significant investment source for the manufacturing

sector, which the Swaziland government is trying to develop to take advantage of the AGOA program.6

Tanzania In February 2002, Tanzania qualified for textile and apparel benefits under AGOA. AGOA eligibility

conditions were similar to eligibility criteria for the IMF/World Bank HIPC initiative. Policy initiatives

aimed at attaining AGOA eligibility assisted Tanzania to also meet IMF and World Bank requirements,

and thereby to qualify for the HIPC debt relief program.7

Uganda In November 2001, Uganda completed the last step for AGOA approval by amending the Customs

Management Act. The Uganda Investment Authority stated that the government must allow foreign

ownership of real estate before maximum AGOA benefits will be realized.8

1 EIU Viewswire, “Madagascar: Economy: News Analysis: New Figures Confirm Surge in Exports to US,” Dec. 26,

2001.

2 Businessline (Islamabad), “India: Mauritius, a Gateway to US Markets,” Feb. 19, 2001.

3 Businessline (Islamabad), “India: Mauritius Seeks Help to Become Cyber Island,” Mar. 15, 2001.

4 Asia Intelligence Wire, “Government to Assist Manufacturers Export Under AGOA,” July 26, 2002.

5 U.S. Department of State, Cable DAKAR 01864, July 25, 2002.

6 EIU Viewswire, “Swaziland: Politics: News Analysis: A Controversial Royal Decree,” Aug. 13, 2001.

7 Manchester Trade: Africa Business & Policy Update, “Tanzania Gains Textile Free Trade with US,” Feb. 14, 2002.

8 EIU Viewswire, “Uganda: Economy: News Analysis: Africa Growth and Opportunity Act to Create Jobs,” Nov. 7,

2001

35

CHAPTER 3

Foreign Investment and Regional Integration

Investment in Sub-Saharan Africa

Overview

In 2001, SSA received $14.3 billion, or 7.7 percent of global foreign investment flows

to developing countries. This amount nearly doubled the $7.6 billion received in 2000,

which represented 3.5 percent of all investment flows to developing countries (table

3-1).1 The U.S. share of that global investment flow to Africa represented only a small

amount - $798 million in 2001 - or less than 0.1 percent of total U.S. direct investment

abroad. However, almost one-half of the 2001 inflows to SSA stemmed from the

financial restructuring of DeBeers Group (a South African diamond mining company),

which was purchased by Anglo American PLC (United Kingdom). Absent this

transaction, investment in SSA would have totaled an estimated $6.9 billion,

representing a 9.2-percent decline from 2000.2

The drop in foreign investment flows can be principally attributed to geographic

fragmentation and domestic conditions in SSA.3 The fragmentation of African markets

reduces their attractiveness as investment destinations because investors prefer access

to large or integrated markets. In addition, armed conflicts, political and policy

uncertainty, and social problems paint a negative picture of the continent and

discourage foreign investment. Recent conflicts in Burundi, the Democratic Republic of

Congo (DROC), Eritrea and Ethiopia, Liberia, and Sudan, and political events in

Zimbabwe further dampened investor interest in these countries. Investment flows to

Africa were also adversely affected by increased security concerns after the terrorist

attacks in the United States on Sept. 11, 2001, which reduced tourism receipts, and thus

investment in tourism infrastructure such as hotels. In addition, the decline in oil prices

reduced investment flows to the petroleum and tourism sectors in the region.4 The

HIV/AIDS pandemic also may have dampened the investment climate because of its

adverse effect on the labor supply.5

1 The World Bank, “Global Development Finance (GDF) 2002, Analysis and Summary Tables,”

Washington, D.C.2002, pp. 22 and 46.

2Anglo American’s acquisition of DeBeers shifted ownership of the latter’s assets from South Africa

to the United Kingdom. Consequently, the United Kingdom’s direct investment in South Africa increased

by the value of DeBeers assets. The World Bank, “GDF 2002, Analysis and Summary Tables,” p.186.

3 The World Bank, “GDF 2002, Country Tables,” Washington, D.C. 2002, p. 22.

4 The World Bank, “GDF 2002, Analysis and Summary Tables,” p.186.

5 The World Bank, “Intensifying Action Against HIV/AIDS in Africa,” found at Internet address

http://www.worldbank.org/afr/aids/, retrieved on July 2, 2002.
36

Table 3-1

Global Investment Flows to Developing Countries, 1997-2001

Country/Region 1997 1998 1999 2000 2001

Value (million dollars)

Sub-Saharan Africa:

FDI . . . . . . . . . . . . . . . . . . . 8,195 6,332 7,937 6,676 13,602

Portfolio equity flows . . . . . 1,507 681 3,899 893 703

Total . . . . . . . . . . . . . . . . 9,702 7,013 11,836 7,569 14,305

Developing Countries:

FDI . . . . . . . . . . . . . . . . . . . 172,494 178,263 184,353 166,691 168,238

Portfolio equity flows . . . . . . 30,094 15,567 34,456 50,867 18,527

Total . . . . . . . . . . . . . . . . 202,588 193,830 218,809 217,558 186,765

Share of total (percent)

Share of Sub-Saharan Africa:

FDI . . . . . . . . . . . . . . . . . . . 4.8 3.6 4.3 4.0 8.1

Portfolio equity flows . . . . . . 5.0 4.4 11.3 1.8 3.8

Total . . . . . . . . . . . . . . . . 4.8 3.6 5.4 3.5 7.7

Source: The World Bank, “Global Development Finance 2002, Country Tables,” Washington, D.C.

2002, pp. 22 and 48.

Market reform and privatization

The basic elements commonly cited as essential to investor confidence include efficient

financial institutions; a legal framework, which defines the rights and obligations of

market participants and provides guidelines and rules for financial institutions; and a

regulatory and supervisory system to oversee the sector and to ensure competition.6

SSA countries have undertaken significant financial reforms and established facilities,

including capital markets, in the past decade to entice foreign investment.

In 1999, foreign investment accounted for 51.2 percent of the total proceeds from

privatization activities in SSA.7 However, privatization activities in SSA have declined

considerably during the last 2 years. The World Bank recorded nine privatization

activities in 2001, compared to 35 in 2000.8 Uganda led in terms of the number of

privatization activities with four enterprises divested in 2001, mainly in transportation

services.9 State ownership is estimated at 10 percent of GDP in developing countries on

average, suggesting that further privatization is possible in SSA.10

6 The United Nations Economic Commission for Africa, “Promotion of Capital Markets in Africa in

the Context of Enhancing Domestic and External Resource Mobilization for Development,” found at

Internet address http://www.uneca.org/, retrieved on June 9, 2002.

7 The World Bank, “GDF (GDF) 2001,” Analysis and Summary Tables, p. 189-190.

8 The World Bank, Privatization database, found at Internet address http://www4.worldbank.org/

afr/database/afrpriv/p1getlst.cfm, retrieved on July 9, 2002.

9 Ibid.

10 James S. Guseh, “The Public Sector, Privatization, and Development in sub-Saharan Africa,”

2001, found at Internet address http://www.web.africa.ufl.edu, retrieved onJuly 10, 2002.
37

Global Investment Trends

Global Foreign Direct Investment (FDI)

Net FDI in sub-Saharan Africa declined for the period 1997 through 2000, from $8.2

billion in 1997 to $6.7 billion in 2000, as shown in table 3-2. Total private investment

flows to SSA spiked in 1999 at $11.8 billion, up from $7.0 billion the previous year, but

dropped to $7.6 billion in 2000. The same trend was evident in portfolio equity flows,

which rose from $681 million in 1998 to $3.9 billion in 1999, dropping to $893 million

in 2000.

Table 3-2

Global investment flows to sub-Saharan Africa, 1997-2000

(Million dollars)

Country/Region 1997 1998 1999 2000

Sub-Saharan Africa investment flows:

FDI (net) . . . . . . . . . . . . . . . . . . . . . . . 8,195 6,332 7,937 6,676

Portfolio equity flows . . . . . . . . . . . . . . 1,507 681 3,899 893

Total private investment flows . . . . 9,702 7,013 11,836 7,569

Foreign direct investment flows:

Angola . . . . . . . . . . . . . . . . . . . . . . . . 412 1,114 2,471 1,698

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . 1,539 1,051 1,005 1,083

South Africa . . . . . . . . . . . . . . . . . . . . 3,811 550 1,503 961

Portfolio equity flows:

South Africa . . . . . . . . . . . . . . . . . . . . 1,393 619 3,855 864

Ghana . . . . . . . . . . . . . . . . . . . . . . . . 46 15 19 17

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . 4 2 2 2

Total investment flows:

South Africa . . . . . . . . . . . . . . . . 5,204 1,169 5,358 1,825

Angola . . . . . . . . . . . . . . . . . . . . 412 1,114 2,471 1,698

Nigeria . . . . . . . . . . . . . . . . . . . . 1,543 1,053 1,007 1,085

Source: The World Bank, “Global Development Finance 2002, Country Tables ,” pp. 6-8, 22.

FDI flows to SSA are unevenly distributed. In 2000, Angola, Nigeria and South Africa

received 25.4 percent, 16.2 percent and 14.4 percent, respectively, of total direct

investment flows to the region (table 3-3). The next five countries, Sudan, Mauritius,

Uganda, Zambia, and Tanzania, jointly received 19 percent.11 FDI flows to Angola

decreased by 31.3 percent and flows to South Africa decreased by 36.1 percent

during 2000, while flows to Nigeria increased by 7.8 percent. FDI flows to Angola and

Nigeria were mainly directed to the petroleum sector, where sharply lower oil prices

reduced or reversed the growth of inbound direct investment in 2000. Direct

investment in South Africa declined as privatization activities declined.12

11 The World Bank, “GDF 2002: Analysis and Summary Tables,” p. 212.

12United Nations Commission on Trade and Development (UNCTAD), Press Release “Foreign Direct

Investment in Africa Shrinks,” TAD/INF/PR24, Sept. 18, 2001.
38

Table 3-3

Share of global investment flows to sub-Saharan Africa, 1997-2000

(Percent)

Country 1997 1998 1999 2000

Foreign direct investment:

Angola . . . . . . . . . . . . . . . . . . . 5.0 17.6 31.1 25.4

Nigeria . . . . . . . . . . . . . . . . . . . 18.8 16.6 12.7 16.2

South Africa . . . . . . . . . . . . . . . 46.5 8.7 18.9 14.4

Portfolio investment:

South Africa . . . . . . . . . . . . . . . 92.4 90.9 98.9 103.5

Ghana . . . . . . . . . . . . . . . . . . . 3.1 2.2 0.5 2.0

Total investment:

South Africa . . . . . . . . . . . 53.6 16.7 45.3 24.3

Angola . . . . . . . . . . . . . . . 4.2 15.9 20.9 22.6

Nigeria . . . . . . . . . . . . . . . 15.9 15.0 8.5 14.4

Source: The World Bank, “Global Development Finance 2002, Country Tables ,” pp. 6-8, 22.”

While the United States, France, and the United Kingdom remain the principal

investors in SSA, it appears that the sources of FDI in SSA are diversifying. For

example, Germany, the Netherlands, China, India, Malaysia, Taiwan, and the

Middle Eastern countries increased their participation in the SSA investment market.

U.S. direct investment flows to SSA countries are primarily directed to the petroleum

sector, while those from France target other natural resources extraction. The United

Kingdom invests mainly in the services sector, and Germany, the Netherlands and

Switzerland primarily invest in manufacturing.13

Global Foreign Portfolio Investment

Portfolio equity funds in SSA are funneled through stock exchanges in Africa, and also

through other exchanges via mutual funds managed and traded overseas. African

companies—particularly South African companies—also list their shares on overseas

stock exchanges. Portfolio equity flows to SSA declined by 21.3 percent in 2001, to

$703 million (table 3-4). The decline principally reflected Anglo American’s

acquisition of DeBeers; South African residents’ holdings of DeBeers stock were, as a

result of the acquisition, counted as outbound investment, rather than as investment in

a domestic firm.14 Except for a one-time surge in 1999, portfolio investment flows to the

region have declined every year since 1997.15

Many SSA stock exchanges were created or significantly reformed in the 1990s to

provide much needed liquidity to finance the development of the SSA region.16

13 UNCTAD, “WIR 2000,” Geneva:2000, p. 41-42; and “More than expected,” The Economist,

June 1, 2000, found at Internet address http://www.economist.com, retrieved on May 29, 2002.

14 Economist Intelligence Unit (EIU), Country Profile 2001:South Africa, London, p.53.

15 USDOC, International Trade Administration, “Country Commercial Guide: South Africa 2002,”

09/05/2001, found at Internet address http://www.stat-usa.gov, retrieved on July 2, 2002.

16 MBendi, “Africa’s Stock Exchanges,” found on Internet address http://mbendi.co.za/exaf.htm,

retrieved on July 14, 2000.
39

Table 3-4

Global portfolio equity investment flows into sub-Saharan Africa, 1997-2000

(Million dollars)

Country/Region 1997 1998 1999 2000 2001

Share of

Total

2000

Change

1999-2000

Percent

South Africa . . . . . . . . . . 1,393 619 3,855 864 (1) 96.8 -77.6

Ghana . . . . . . . . . . . . . . 46 15 19 17 (1) 1.9 -10.5

Côte d’Ivoire . . . . . . . . . . 18 6 8 6 (1

) 0.7 -25.0

Total SSA . . . . . . . . . 1,507 681 3,899 893 703 (

2) -77.1

1 Not available.

2 Not a meaningful number.

Source: The World Bank, “Global Development Finance, Country Tables,” pp. 6-8, 22.

However, the majority of these exchanges are either not operating or trading at a

minimal level. The Johannesburg Stock Exchange (JSE) in South Africa, established in

1887, is the largest and the most active on the continent, with 353 listed companies and

a market capitalization of $163 billion in March 2002.17 JSE accounted for 90 percent

of the total market capitalization of all exchanges in SSA in 1999.18 The Nigeria Stock

Exchange ranked second in the region with $2.9 billion in market capitalization in

1999. The Bourse Régionale des Valeurs Mobilières (BRVM), a regional exchange in

Abidjan, serving the members of the West African Economic and Monetary Union

(WAEMU), was third with $1.5 billion, and the Ghana Stock exchange was fourth with

$916 million in market capitalization in 1999.19 With the exception of the JSE, stock

exchanges in Africa are restricted by low liquidity levels; that is, the low value of shares

traded relative to total market capitalization.20 While the exchanges may provide

larger corporations with access to additional capital, local companies, which are too

few in number and too small, make little use of them. This limited use is likely due to lack

of experience and resources for issuing shares, and also because managers fear

losing control after going public.21 The lack of adequate legal and regulatory

institutions also plays a role in discouraging portfolio investment through the

exchanges. In addition, foreign ownership of securities in Africa is controversial, as

there is concern that exposure to foreign markets might bring susceptibility to global

volatility.22

17 Johannesburg Stock Exchange, “Market Profile, Apr. 30, 2002,” found at Internet address

http://www.jse.co.za/, retrieved on July 12, 2002.

18 Jacqueline Irving, “Africa’s Struggling Stock Exchanges,” Africa Recovery, vol. 14, No. 3, p. 25,

October 2000 found at Internet address http://www.un.org/ecosocdev/geninfo/afrec/subjindx/1

43stock.htm, retrieved on June 20, 2002.

19 BRVM serves Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.

MBendi, “Bourse Régionale des Valeurs Mobilières (BRVM - Regional Stock Exchange),” found at Internet

address http://www.mbendi.co.za/exaf.htm, retrieved on May 24, 2002.

20 Jacqueline Irving, “Africa’s Struggling Stock Exchanges.”

21 Ibid.

22 Ibid.
40

U.S. Investment

U.S. Direct Investment in Sub-Saharan Africa

U.S. direct investment flows to Africa totaled $798 million in 2001, or less than 0.1

percent of total direct investment abroad. In 2001, despite large net inflows to Nigeria,

U.S. direct investment flows to African countries decreased by 30.7 percent,

compared to a 30.9-percent decline in total U.S. direct investment flows abroad (table

3-5).23 The decline in U.S. investment to SSA was largely due to a reversal of capital

flows between the United States and South Africa, the latter of which recorded a net

outflow of $4 million, compared with a net inflow of $490 million in 2000. A drop in

the value of the rand and uncertainty in the region, compounded by events in

Zimbabwe, could have contributed to the flight of investment capital from South Africa.

Flows to the continent decreased to $581 million in 2001, from $980 million in 2000.

Nevertheless, U.S. direct investment position in Africa increased by 10.1 percent in

2001, to $15.9 billion (table 3-6).24 South Africa hosts $3 billion or 18.6 percent of U.S.

assets in Africa, Angola $1.5 billion or 9.4 percent, and Nigeria $1.3 billion or 8.1

percent. U.S. holdings are principally in the petroleum sector in Angola and Nigeria,

and in the mining and manufacturing sectors in South Africa.25

U.S. Portfolio Investment in Sub-Saharan Africa

Few SSA companies list their stocks on U.S. exchanges. U.S. portfolio investment in

SSA is largely channeled through mutual funds managed by U.S. investment

companies. As noted, these funds integrate stocks of SSA companies with those of

other emerging markets, or concentrate exclusively on SSA stocks. SSA stocks

Table 3-5

U.S. direct investment abroad: Capital flows, 1997-2001

(Million dollars)

Country/Region 1997 1998 1999 2000 2001

All countries . . . . . . . . . . . 95,769 131,004 174,576 164,969 113,977

Africa . . . . . . . . . . . . . . . . 3,436 3,075 498 1,151 798

Nigeria . . . . . . . . . . . . . . . 375 403 -1721 -319 221

South Africa . . . . . . . . . . . 1,298 -83 872 490 -4

Other . . . . . . . . . . . . . . . . 1,763 2,756 -202 980 581

1 Negative numbers indicate inflows of capital into the United States.

Source: USDOC, BEA, “ U.S. Direct Investment Abroad: Country Detail for Selected Items,” found

at Internet address, http://www.bea.doc.gov/di/dia-ctry.htm, retrieved on June 28, 2002.

23 Bhinda N., Griffith-Jones S., Leape J. and M. Martin, “Private Capital Flows to Africa: Perception

and Reality,” Forum on Debt and Development, The Hague: 1999, pp. 32-33.

24 Data specific to SSA are not available. USDOC, BEA, “U.S. Direct Investment Abroad,” found at

Internet address http://www.bea.doc.gov/, retrieved on June 28, 2002.

25 Except for South Africa and Nigeria, country-specific USDIA data in SSA are not available.

USDOC, BEA, “U.S. Direct Investment Abroad: Country detail for selected items,” found at Internet

address http://www.bea.doc.gov/, retrieved on June 28, 2002.
41

Table 3-6

U.S. direct investment position on a historical cost basis, 1997-2001

(Million dollars)

Country 1997 1998 1999 2000 2001

All countries . . . . . . . . . . 871,316 1,000,703 1,173,122 1,293,431 1,381,674

Africa . . . . . . . . . . . . . . . 11,330 14,061 13,621 14,417 15,872

Nigeria . . . . . . . . . . . . . 1,396 1,686 1,442 1,237 1,467

South Africa . . . . . . . . . . 2,499 2,344 3,009 3,245 2,950

Angola . . . . . . . . . . . . . . 798 1,116 1,536 1,601 1,498

Other . . . . . . . . . . . . . . . 6,637 8,915 7,634 8,334 9,957

Source: BEA, USDIA, U.S. Direct Investment Abroad, found at Internet address

http://www.bea.doc.gov/bea/di/diapos_01.xls, retrieved on July 12, 2002.

generally experienced a significant decline in 2001. For example, the Calvert South

Africa Fund dropped by 7.6 percent in value during the year ended June 30, 2002.26

Regional Integration in Sub-Saharan Africa

With nine major regional trade agreements, SSA has one of the highest number of

regional groupings in the developing world. These nine regional organizations, most

with overlapping memberships, are: (1) the Economic Community of West African

States (ECOWAS),with 15 members; (2) the West African Economic and Monetary

Union (WAEMU) with eight members, all also belonging to ECOWAS; (3) the Common

Market for Eastern and Southern Africa (COMESA), with 20 members; (4) the

Southern African Development Community (SADC), with 14 members; (5) the

Southern African Customs Union (SACU), with five members, all also belonging to

SADC and two to COMESA; (6) the East African Community (EAC), with three

members, two belonging to COMESA and one to SADC; (7) the Inter-Governmental

Authority on Development (IGAD), with seven members in eastern Africa; (8) the

Indian Ocean Commission (IOC), with five members, four belonging to COMESA and

one to SADC; and (9) the Communauté Economique et Monétaire de l’Afrique

Centrale (CEMAC), with six members.27

Regional Integration in 2001

Progress on economic regional integration in SSA moved slowly in 2001. Political

instability and economic problems in certain SSA countries remained significant

constraints to economic integration. Countries with political instability in 2001 included

26 USDOC, BEA, “U.S. Direct Investment Position Abroad on a Historical-Cost Basis,” found at

Internet address http://www.bea.doc.gov/, retrieved on June 27, 2002.

27 K.Y. Amaoko, Executive Secretary of ECA “Accelerating the Pace of Regional Integration in

Africa: The Challenges Ahead,” Mar. 4, 2002, found at Internet address http://www.uneca.org/

eca_resources, retrieved on June 10, 2002.
42

Côte d’Ivoire, Zimbabwe, and DROC, all key members in a number of SSA trade

agreements.

Economic problems included inadequate financing, similarity in production structures,

and high poverty rates in member countries.28 These problems were compounded by

inadequate infrastructure that made transportation and communication expensive.29

Internal economic problems also hampered the ability of many SSA countries to

promote free trade effectively, and the elimination of tariff barriers to interregional

trade continued to pose difficulties for several countries primarily because of the

adverse effects on government revenues.30

A major impediment to successful regional integration in SSA is the overlapping nature

of the many trade agreements within the SSA region. Many SSA countries belong to

two or more regional groupings. Of the 48 SSA countries, 26 are members of two

regional economic agreements and 15 countries are members of three regional

economic agreements. DROC is a member of four regional agreements. Only seven

countries belong to one regional agreement.31 A recent IMF study describes the many

complications that arise as a result of these overlapping memberships. Foremost, trade

agreement implementation is difficult because of conflicting obligations, particularly

when trade blocs have different rules of origin or tariff reduction schedules. For

example, COMESA members are not allowed to offer trade preferences to partners in

SADC and nine members of SADC are also members of the COMESA organization.32

Second, SSA countries already facing economic and financial difficulties cannot

afford the administrative costs of participation in multiple agreements. As a result,

many countries have fallen behind on their obligations to the trade groups. For

example, since the implementation of newer trade blocs such as SADC and EAC,

contributions to more established blocs like COMESA and CEMAC have fallen.

COMESA and CEMAC had a rate of collection which fell from 100 percent in 1993 to

just over 50 percent in 1998.33

Despite these problems, regional integration advanced, albeit slowly, during 2001.

Most importantly, regional blocs in Africa began to expand their role from solely

economic to political and military in order to address issues that were more political in

28 Nigerian Institute of Social and Economic Research. “Reflection on African’s Historic and Current

Initiatives for Political and Economic Unity,”, Mar. 1, 2002, found at Internet address

http://www.allafrica.com/stories/200203010736.html, retrieved on June 10, 2002.

29 New Vision, “Examine Alternative Transport,” May 24, 2002, found at Internet address

http://www.allafrica.com/stories/200205240123.html, retrieved on June 10, 2002.

30 United Nations Economic Commission For Africa (UNECA), “Annual Report On Integration In

Africa 2002,” Mar. 2002, found at Internet address http://www.uneca.org/adfiii/ariaoverview.htm,

retrieved on June 10, 2002.

31 K.Y. Amaoko, Executive Secretary of ECA “Accelerating the Pace of Regional Integration in

Africa: The Challenges Ahead,” Mar. 4, 2002, found at Internet address http://www.uneca.org/

eca_resources, retrieved on June 10, 2002.

32 EIU Viewswire, “Investors focus on Southern Africa,” May 21, 2001, found at Internet address

http://www.viewswire.com/index.asp?layout=display_article&search_text=eac&doc_id=147075,

retrieved on June 10, 2002.

33 K.Y. Amaoko, Executive Secretary of ECA “Accelerating the Pace of Regional Integration in

Africa: The Challenges Ahead,” Mar. 4, 2002, found at Internet address http://www.uneca.org/

eca_resources, retrieved on June 10, 2002.
43

nature and to help resolve conflicts. This shift indicates that the regional groups are

taking a stronger role in the SSA region. Almost every trade bloc in SSA has intervened

in regional conflicts. For example, the West African Peace Keeping Mission, known by

the acronym ECOMOG, a monitoring group within the ECOWAS, reportedly

intervened militarily and with some success in the armed conflicts in Liberia and Sierra

Leone.34 SADC acted as an election observer in Zimbabwe and attempted to end the

land seizures there. The Intergovernmental Authority on Development (IGAD), is

attempting to negotiate peace in Somalia.35

In addition, the trade blocs promoted regional-based development projects.

Currently, there are a number of infrastructure projects that are being driven by

regional trade agreements, particularly in the energy and telecommunications

sectors. Energy pooling through the interconnection of electricity grids in the SADC

region, with the establishment of the Southern African Power Pool (SAPP) in 1995,

linked the SADC member states into a single electricity grid. The SAPP has become the

model for other SSA regions. ECOWAS is developing the West African Power Pool,

while the EAC is developing a regional plan for future energy projects and considering

the interconnection of electricity grids in the EAC region. Furthermore, COMESA has

launched COMTEL to build a regional telecommunications network, and ECOWAS is

setting up telecommunication regulatory organs to share information and harmonize

regulations.36

Many financing and development institutions have begun to approach the blocs

instead of individual countries to discuss financial and economic support. One of the

most significant projects geared toward the regional blocs is the World Bank-funded

Africa Trade Insurance Agency, whose purpose is to provide insurance and other

financial services to support trade and investments in Africa among the COMESA

countries.

Two other significant developments in 2001 were the creation of the Africa Union (AU)

and the New Partnership for African Development (NEPAD). The AU, which replaced

the 40-year old Organization of African Unity (OAU) and is modeled on the European

Union (EU), was established to promote good governance and economic development

in member countries. The AU will feature a standby peacekeeping force, a central

bank, and court of justice. The AU will complement NEPAD, an agreement formalized

in October 2001, in which African countries agreed to promote strategies of poverty

eradication, sustainable development, and economic growth and integration with

world markets.37 For more information on NEPAD, see chapter 4.

34 Nigerian Institute of Social and Economic Research, “Reflection on African’s Historic and Current

Initiatives for Political and Economic Unity,” Mar. 1, 2002, found at Internet address

http://www.allafrica.com/stories/200203010736.html, retrieved on June 10, 2002.

35 EIU Viewswire, “Enhanced regional role,” Oct. 18, 2001, found at Internet address

http://www.viewswire...layout=display_print&doc_id=160974, retrieved on June 5, 2002.

36 UNECA, “Annual Report on Integration in Africa 2002,” Mar. 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved on June 10, 2002.

37 NEPAD, “New Partnership for Africa’s Development,” found at Internet address

http://www.nepad.org/AA0010101.pdf, retrieved on Aug. 13, 2002

U.S. Exports

Wheat

Parts of machinery

Rice

Transmission apparatus

Automatic data processing machines

Worn clothing

U.S. Imports

Petroleum products

Cocoa beans

Aluminum ore and unwrought aluminum

Rubber

Diamonds

Wood veneers and chipped woods

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

Status and structure:

ECOWAS, established in 1975, created a customs union among its 15 member states to institute the free circulation of

goods, services, labor, and capital within the ECOWAS area. The ECOWAS bloc includes all eight members of the WAEMU

and members of the Communauté Financière Africaine (CFA) franc zone. In 1979, a trade liberalization program was

launched to reduce and eliminate tariffs within ECOWAS. By January 1990, tariff and nontariff barriers were eliminated on

agricultural products. This affected primarily livestock, agricultural, forestry and fishery products, meat, and certain textile

fibers. Import duties on industrial products were to be reduced at a rate ranging from 10 to 16.6 percent per year, over a

period of 6 to 10 years. After achieving full free trade agreement (FTA) status, there will be three separate groups of

countries, according to level of industrial development, within the ECOWAS area.

ECOWAS implemented a rules-of-origin regime for manufactured goods to receive preferential treatment -- more than 300

industrial products have been approved for this origin regime. In order to receive a certificate of origin, domestic content

must be at least 60 percent or, if less, domestic value-added must be at least 40 percent of the freight on board (f.o.b.)

price.

In early 2001, ECOWAS unveiled the West African Monetary Institute, a transitional institution that paved the way for a

common central bank.

Trade:

Overall, ECOWAS ranks second among regional trade agreements in SSA with 17 percent of total intraregional trade.1

ECOWAS

Members: Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria,

Senegal, Sierra Leone, and Togo

Population: 228.7 million (2001)

GNP: $69.6 billion (2001)

Goals: Free trade area; full economic and monetary union

Key Traded Commodities

Million dollars

U.S. Trade with ECOWAS U.S. exports

U.S. imports

Trade balance

45

Economic Community of West African States
46

Economic Community of West African States

AGOA Trade in 2001

By Sector

By Country

Recent developments:

Key AGOA Developments

U.S. imports from the ECOWAS region

under AGOA (including GSP) totaled

$5.75 billion in 2001. Nigeria is one of

the key beneficiaries of AGOA due mainly

to a significant increase in exports of

energy-related products to the United

States. In 2001, the United States

imported $5.7 billion worth of

energy-related products from Nigeria

under the preference program.

All other 1.0%

Agricultural

products 59.9%

All other 0.4%

Nigeria 99.6%

Energy-related

products 99.0%

Ghana 73.9%

Côte d’lvoire 22.9%

Forest

products 30.9%

All other 9.2%

At the April 2001 meeting of ministers and heads of

state, leaders decided to proceed towards a

monetary union by committing to reduce central bank

financing of budget deficits to 20 percent of the

previous year’s revenue; reduce budget deficits to 10

percent of the previous year’s government revenue;

reduce budget deficits to 4 percent of GDP by 2003;

create a Convergence Council to help coordinate

macroeconomic policies; and set up a common

central bank among the non-CFA franc countries by

January 2003 as the first step towards establishing

a wider monetary union encompassing all the

ECOWAS countries by 2004. As Liberia is not

expected to meet the convergence criteria by the

2004 deadline, five states -- Gambia, Ghana, Guinea,

Nigeria, and Sierra Leone -- are currently involved in

the single currency project.2 The leaders also agreed

that all member countries must meet certain criteria

--for example, good governance -- before convergence

could be attained.3

Other issues in the organization’s agenda in 2001

included corruption, terrorism, money-laundering,

good governance, human trafficking and children’s

rights.4

ECOWAS continued its work with the WAEMU to

develop common policies for trade liberalization and

macroeconomic policy convergence. Both ECOWAS

and WAEMU have agreed to adopt new common

rules of origin and a single customs declaration form

to enhance the flow of trade. 5

All other 3.1%
47

Economic Community of West African States

Issues:

U.S. Investment by Sector in ECOWAS in 2001

0

200

400

600

800

1000

Petroleum Chemicals Wholesale

Trade

Finance,

Insurance,

and Real Estate

Services Other

Million dollars

1,900

19 6

142

14

194

Progress on full economic integration has been impeded by several factors. Most significantly, smaller countries are

concerned that Nigeria, which accounts for more than 82 percent of regional GDP, and 79 percent of regional

population, could dominate the Community.6 Another impediment to further economic integration has been the

dependency on exports of primary commodities, exported mainly to the EU. Three member countries are dependent on a

single commodity for over 50 percent of their export revenue -- Nigeria (petroleum), Guinea (bauxite), and Niger

(uranium).7 At the same time, ECOWAS members import manufactured goods from Europe.8 Therefore, opportunities for

intra-regional trade are diminished because the economies of ECOWAS are not complementary. Finally, there has been

difficulty within ECOWAS with tariff reduction and establishing a common external tariff. Tariffs have been eliminated on

traditional and artisan goods, but tariff reduction on industrial commodities has been limited.9
48
49

West African Economic and Monetary Union

-200

-100

0

100

200

300

400

500

1997 1998 1999 2000 2001

Thousand dollars

U.S. Trade with WAEMU U.S. exports

U.S. imports

Trade balance

Status and structure:

In January 1994, WAEMU was established to create a common market with free movement of goods, services, capital, and

labor within the WAEMU region. Ultimately aiming for the convergence of fiscal policies, harmonization of tax legislation, and

a common investment policy, the treaty provided for common sectoral policies as well as a customs union. All member

countries participated in the Communauté Financière Africaine (CFA) franc zone based on the Euro and maintained an

operations account with the French Treasury to facilitate trade with France.

In December 1995, the member countries concluded a preferential trade agreement that instituted a transitional tariff

regime pending establishment of the customs union. The agreement set out regime and customs procedures applicable to

the movement of goods within the WAEMU area. A common external tariff became operative on January 1, 2000. Member

states tariff revenues losses were to be offset by a transitional but temporary tax on imports from outside WAEMU.

Trade:

WAEMU is ranked sixth among all regional trade agreements in SSA in terms of individual intraregional exports as a share

of total intraregional exports and as a share of intraregional exports in total SSA exports.10

WAEMU

Members: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo

Population: 73.1 million (2001)

GNP: $24.3 billion (2001)

Goals: Customs union and coordinated monetary policy

Key Traded Commodities

U.S. Exports

Worn clothing

Parts of machinery

Motor vehicles for transport

Medicaments

Parts for typewriters

U.S. Imports

Cocoa beans and paste

Petroleum oils

Goods for salvage and repair

Sawn or chipped wood

Peanut oil
50

West African Economic and Monetary Union

AGOA Trade in 2001

By Sector

By Country

Recent developments:

The WAEMU common external tariff, with rates not to exceed

22 percent ad valorem, took effect in January 2000. However,

adherence to the tariff structure is not consistent throughout

the region. WAEMU has established a common accounting

system and a regional stock exchange. Also, ECOWAS and

WAEMU have determined a number of measures which will

help to harmonize the two blocs. Both have agreed to adopt

new common rules of origin to enhance the flow of trade and

implement a universal customs declaration form.

Issues:

Côte d’Ivoire’s economic crisis, which began in 1999, has

hampered economic prospects for the WAEMU region.

Key AGOA Developments

U.S. imports from the WAEMU region under AGOA

(including GSP) totaled $14.4 million in 2001. This

reflects of a sharp decline in imports of agricultural

products from Côte d’Ivoire.11

Forest

products

5.9%

Agricultural

products 87.6%

All other

1.8% Chemicals

products 3.1%

Côte d’lvoire

92.5%

Mali 2.1% Senegal 3.9%

All other 1.5%

Miscellaneous

manufactures

1.6%
51

West African Economic and Monetary Union

U.S. Investment by Sector in WAEMU in 2001

0

20

40

60

80

100

120

140

Petroleum Chemicals Wholesale Trade Services Food

Million dollars

132

1 6

14

49
52
53

Common Market for Eastern and Southern Africa

-4

-3

-2

-1

0

1

2

3

4

5

1997 1998 1999 2000 2001

Status and structure:

COMESA was founded in December 1994 to promote the free movement of services, capital, and labor; and cooperation in

various policy areas, including money and finance, agriculture and industry, communications, energy, environment, health,

tourism, and transport within the COMESA area. The COMESA free trade area was officially launched on October 30, 2000.

Goods from countries not participating in the FTA are subject to the tariffs that FTA members apply to non-COMESA

countries, unless lower tariffs can be agreed upon between FTA members and nonmembers on a bilateral basis. Nontariff

barriers on imports from member countries are to be eliminated, with possible exceptions allowed based on safety, security,

infant industry, or balance-of-payments difficulties. Emergency actions, such as safeguard, antidumping and countervailing

measures, are allowed for limited periods, for example, up to one year for safeguard measures. Cooperation regarding

customs management, and the harmonization of trade documents and procedures is another COMESA goal.

Trade:

Only 6 percent of COMESA’s total exports are to its COMESA partners. COMESA ranks fourth among regional trade

agreements in SSA in total exports and fifth in imports.12

comesa

Members: Angola, Burundi, Comoros, Democratic Republic of the Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi,

Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe

Population: 294.0 million (2001)

GNP: $133.8 billion (2001)

Goals: Customs union by 2004

Key Traded Commodities

Million dollars

U.S. Trade with COMESA U.S. exports

U.S. imports

Trade balance

U.S. Exports

Aircraft and spacecraft

Wheat and meslin

Corn

Parts of machinery

Polymers of vinyl chloride

U.S. Imports

Petroleum oils

Women and men’s suits

Sweaters, pullovers, and waistcoats

Vanilla beans

Tobacco
54

Common Market for Eastern and Southern Africa

AGOA Trade in 2001

By Sector

By Country

Recent developments:

Only nine COMESA members -- Egypt, Djibouti, Kenya,

Madagascar, Malawi, Mauritius, Sudan, Zambia, and

Zimbabwe -- have committed to participate in the free trade

area. One significant issue to be resolved is how to enable

other COMESA members to participate in the FTA without

revenue losses from reduced tariffs.

COMESA has taken steps to establish the Fund for

Cooperation, Compensation and Development,13 a $200

million fund to assist members that lose tariff revenue as a

result of opening their markets.14 COMESA has also taken

steps to implement tariff reductions, eliminate nontariff

barriers, apply remedial and safeguard measures, and define

rules of origin. Preparatory work continues for a regional

competition policy, the COMESA business community forum,

subregional women-in- business information centers, the

COMESA Iron and Steel Industry Association, and an

e-commerce information network for industry.

COMESA has adopted a four-phase monetary harmonization

program aimed at achieving full monetary union by 2025.

COMESA is currently in the second phase, and members have

agreed to introduce limited currency convertibility among

themselves and implement appropriate monetary and fiscal

policies to support overall stabilization efforts.

COMESA has also undertaken a number of measures to

strengthen the region and stimulate trade within the bloc. For

example, COMESA encouraged members to take advantage of

AGOA by producing high-quality yarn. Sub-Saharan Africa

exported 234 million square meters of yarn to the United

States in 2001, which COMESA hopes will increase by 13

times to 1.09 billion square meters by the time AGOA expires

in 2008.15 The opening of a Preferential Trade Bank to make

loans available to cross-border traders.16 COMESA sponsored

the establishment of the African Trade Insurance Agency

(ATIA), funded in part by the World Bank, to offer political risk

coverage for African trade. 17 COMESA worked on

strengthening ties with other regional groups in SSA to

promote harmonization between trading blocs, particularly

those with overlapping memberships. The EAC and COMESA

have a memorandum of understanding to promote

harmonization of their policies and programs, and the SADC

and COMESA have agreed to set up a task force to deal with

common issues and to regularly invite each other to their policy

and technical meetings.18

Key AGOA Developments

U.S. imports under AGOA (including GSP)

from COMESA countries totaled $266.5

million in 2001. Imports from

Madagascar totaled $97.1 million, while

imports from Kenya and Mauritius totaled

$58.9 million and $54 million

respectively. Import growth was mainly

due to increased imports of textiles and

apparel.

Agricultural

products

20.1%

Madagascar 36.4%

All other 2.4%

Electronic

products 2.8%

Swaziland 5.5%

Kenya 22.1%

Mauritius 20.3%

Forest

products 1.6%

Textiles and

apparel

73.6%

All other 1.9%

Malawi 13.3%
55

Common Market for Eastern and Southern Africa

-100

-50

0

50

100

There exist a number of impediments to full economic integration of COMESA. Most significantly, some members (for

example, Angola, DROC, Rwanda, Sudan, and Zimbabwe) are experiencing internal conflicts. In addition, individual

countries are having difficulty negotiating with each other or coming to terms with the convergence criteria. COMESA

members have expressed concerns about Egypt’s plan to sign a free trade agreement with the EU. One concern is that

the agreement will flood COMESA with less expensive European imports.19 Zambia and Malawi want to use tariffs or

surcharges to protect local manufacturers. Kenya, which accuses sugar exporters of dumping their products in its

market, is reportedly considering import quotas.20

Zambia disagreed with labeling requirements imposed by Zimbabwe that requires Zambian milk exporters to label their

products in Shona and Ndebele. Zambian milk for export is already labeled in English, French and Portuguese, and the

manufacturers argued that the additional labeling would create additional costs for Zambian exporters. Disagreements led

to an escalating trade battle between the two countries. Zambian farmers also asked the government to impose a

year-long ban on imports of Zimbabwean agricultural commodities, including wheat, dairy products, oilseeds, fruit and

vegetables, alleging that Zimbabwean farmers had unfair advantages, including access to a parallel foreign-exchange

market. In July 2002, the Zambian government announced that it would introduce nontariff barriers to protect Zambian

farmers.21

Rules of origin have been a source of concern among COMESA members, with some members arguing that the current

rules are too stringent. Nevertheless, concerns about rules of origin violators have resulted in even tighter controls to

stop illegal transshipment of goods within the bloc.22

The lack of harmonization between the many overlapping trade blocs in southern Africa has impeded COMESA’s

effectiveness. This problem is particularly relevant as South Africa, the region’s largest economy, is a member of SADC

but not COMESA. SADC and COMESA have limited cooperation and coordination.

Issues:

U.S. Investment by Sector in COMESA in 2001

Millionsdollars Petroleum

Food

Chemicals

Machinery/equipment

Metals

Electronics

Transportation

Other manufacturing

Wholesale trade

Financial

Services

Other

4,636

-235

34 39

-6

56

9

67

12

2 -64 -10
56
57

Southern African Development Community

-6

-4

-2

0

2

4

6

8

10

1997 1998 1999 2000 2001

Million dollars

U.S. Trade with SADC U.S. exports

U.S. imports

Trade balance

Status and structure:

The SADC Free Trade Area was launched on Sept. 1, 2000, to promote development and economic growth, alleviate

poverty, enhance the standard and quality of life for the people of Southern Africa and support the socially disadvantaged

through regional integration.23 SADC seeks to establish a free trade area among the 14 member countries in the region,

providing for the reduction and elimination of tariff and nontariff barriers within 8 years of entry into force. It includes a

rules-of-origin regime that requires goods to be wholly produced in the member states, with specific provisions for mineral

products that must be either extracted from the ground or the sea-bed of the member states. SADC develops policies that

reduce and eliminate barriers to the free movement of goods, services, capital, and labor, as well as mobilizes support for

national and regional projects. SADC is governed by a policymaking body (the Summit of Heads of State and Government),

along with a Council of Ministers, and a secretariat based in Gaborone, Botswana. The SADC treaty provides for a protocol

to exercise a trade tribunal to adjudicate disputes between members that arise from the treaty in a final and binding

manner.

SADC promotes sectoral cooperation within the region, such as in communications, energy, industry, mining, tourism, and

transport, and operates projects partially financed by foreign sources. Certain specific sectoral tasks are apportioned to

particular members, for example, South Africa coordinates SADC’s finance and investment, Namibia coordinates projects in

fisheries, and Botswana holds the seat of the SADC Secretariat.

Trade:

Of all the regional integration projects in SSA, SADC is the most successful, ranking first out of all the SSA trade blocs. Of all

interregional trade in SSA, SADC accounts for 31 percent of exports and 24 percent of imports. This strong performance is

a result of trade among South Africa, Mauritius, Zimbabwe, Malawi and Mozambique, which are more developed and

diversified economies.24

sadc

Members: Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa,

Seychelles, Swaziland, Tanzania, Zambia, and Zimbabwe.

Population: 204.4 million (2001)

GNP: $166.3 billion (2001)

Goals: Common market; common currency

Key Traded Commodities

U.S. Exports

Aircraft and spacecraft

Parts of machinery

Parts for tractors

Motor cars

Parts of aircraft

U.S. Imports

Petroleum products

Platinum

Diamonds

Motor cars

Sweaters, pullovers, sweatshirts,

and vests
58

Southern African Development Community

AGOA Trade in 2001

By Sector

By Country

Recent developments:

The institutional framework for the FTA is slowly evolving. The

SADC Secretariat’s new trade implementation unit, which is

responsible for assisting members in implementing the FTA, is

operating. SADC countries, with the assistance of the U.S.

Agency for International Development (USAID), are beginning to

form interagency task forces to oversee implementation of the

FTA at the national level. SADC has made slow progress in

implementing the FTA. As of March 2001, 11 signatories had

ratified the agreement and eight had submitted their

instruments of implementation. Negotiators met in December

2000, but were unable to resolve outstanding issues

concerning textiles and apparel trade and overall market

access. The least developed signatories, Mozambique, Malawi,

Tanzania and Zambia (or MMTZ countries), claim that the

textile and apparel import quotas offered by the SACU

countries—South Africa, Botswana, Lesotho, Namibia and

Swaziland (the latter four are commonly referred to as BLNS

countries)—are inadequate. In addition, South Africa favors an

immediate reduction to a zero tariff, whereas the BLNS

countries prefer a gradual tariff phase-down. As part of the

market access debate, the BLNS countries and MMTZ

countries are demanding reciprocal concessions from each

other on textile and apparel quotas. Negotiators have yet to

settle on product-specific rules of origin for coffee, wheat flour,

plastics, electrical appliances and motor vehicles. UNCTAD is

helping to facilitate further negotiations on these product

categories and a technical committee will be established to

address the motor vehicle issue.

SADC continues to advance its plans to interconnect the power

grids within SADC countries. The Southern African Power Pool

has been a model for other regional integration projects in

SSA.

Key AGOA Developments

U.S. imports from SADC under AGOA

(including GSP) totaled $1.2 billion in

2001. Lesotho, which had no exports to

the United States under the GSP program

in 2000, had the greatest increase in

trade under AGOA in 2001 with $129.5

million in exports to the United States of

textiles and apparel goods.

Transportation

equipment

25.7%

Minerals

and metals

27.1%

Agricultural

products

11.3%

Chemical

products

10.8%

Textiles and

apparel

18.4%

South Africa

78.9%

All other 1.1%

All other

6.7%

Swaziland 1.3%

Malawi 3.0%

Mauritius 4.6%

Lesotho 11.1%
59

Southern African Development Community

Issues:

U.S. Investment by Sector in SADC in 2001

0

100

200

300

400

500

600

Petroleum Food

Million dollars

Chemicals Wholesale

trade

Machinery/

equipment

Metals Electronics Transportation Other

manufacturing

1,604

114

326

90

12

196

17

286

158

Key impediments to full integration within SADC have been civil war in the DROC as well as conflict between the president

of Zimbabwe and the rest of the SADC countries.25 Another concern is the effect of the loss of tariff revenue from

intraregional trade on the weaker SADC economies as a result of full FTA implementation. Member countries may have

to raise internal taxes to compensate for lost customs revenue after full implementation of the agreement. The

anticipated inclusion of SADC members in the EU-South Africa free trade agreement has also raised concern that the

weaker SADC countries will not be able to contend with EU competition. Tariff schedules for key sectors such as sugar,

fuels, autos, and electronics have yet to be developed. More broadly, the interrelationship between SADC and the SACU

has been reported to pose some difficulties.
60
61

Southern African Customs Union

-2

-1

0

1

2

3

4

5

1997 1998 1999 2000 2001

Million dollars

U.S. Trade with SACU U.S. exports

U.S. imports

Trade balance

Status and structure:

On March 1, 1970, the SACU agreement entered into force.

Members may not impose duties or quantitative restrictions on goods from the SACU area. Nor may members impose

duties on imports from other SACU members that are of foreign origin. Duties are collected at the place of entry into the

common customs area, following which these goods are given duty-free circulation within the SACU area. However, each

member has its own legislation concerning quantitative restrictions on goods imported from outside the SACU area.

Botswana, Lesotho, Namibia, and Swaziland, but not South Africa, may apply additional duties or increase duties for the

protection of infant industries. The SACU agreement also provides for nondiscriminatory transportation rates and freedom of

transit within the common customs area.

The SACU common monetary area, the Multilateral Monetary Agreement, aims to achieve monetary stability, better

economic and financial cooperation among member states for sustained economic development, and to encourage the

advancement of the lesser developed members.

All five SACU members – South Africa, Botswana, Lesotho, Swaziland and Namibia – are also members of SADC. Whereas

SADC is a free trade agreement with separate external tariff regimes, SACU is a customs union with a common external

tariff.

Trade:

Botswana, Lesotho, Namibia, and Swaziland still depend on South Africa for most of their imports and, more importantly,

are dependent on the privileged access to the South African market that their goods receive.

sacu

Members: Botswana, Lesotho, Namibia, South Africa, and Swaziland

Population: 51.1 million (2001)

GNP: $123.4 billion (2001)

Goals: Free trade area and customs union

Key Traded Commodities

U.S. Exports

Aircraft and spacecraft

Parts for vehicles

Motor cars

Parts for machinery

Parts for aircraft

U.S. Imports

Platinum

Diamonds

Motor cars

Sweaters, pullovers, sweatshirts

and vests

Ferroalloys
62

Southern African Customs Union

Recent developments:

A new SACU agreement was reached in October 2001 after 8

years of negotiations among SACU members. The revisions

occurred as a result of perceptions of the other four members

that South Africa was dominating the treaty, particularly in

terms of revenue sharing. Under the former agreement, South

Africa was responsible for setting tariff rates, collecting tariffs,

and disbursing revenue to member countries. This

disbursement was often delayed for up to 2 years. The

renegotiated agreement has two key elements: a new

revenue-sharing formula and institution building designed to

strengthen the SACU. The new revenue formula makes a

distinction between customs duties on imports, which will be

distributed pro rata among members based on their imports,

and excise duties. A total of 15 percent of excise taxes--on

beer, tobacco and fuel--will go into a development fund for

disbursement to the BLNS states for development projects.

The balance of excise duties will be shared between all member

states based on their per capita GDP. The 15 percent share

for development will be increased if deemed necessary. In a

reported effort to reduce institutional weakness in SACU, the

five governments have agreed to set up a council of ministers

and secretariat. A board of independent regional trade experts

will meet on a quarterly or monthly basis, as needed, to

consider tariffs and antidumping applications from member

states, with final decisions made by the council of ministers of

trade or industry.26

AGOA Trade in 2001

By Sector

By Country

Key AGOA Developments

U.S. imports in 2001 from SACU

countries under AGOA (including GSP)

were valued at $1.1 billion in 2001.

South Africa was the largest beneficiary of

AGOA, accounting for $923 million in

AGOA imports. The largest increases in

exports were in the transportation goods

($300 million) and in the textiles and

apparel ($171 million). Lesotho was a

major beneficiary of the textile provision,

exporting $129.5 million under AGOA in

2001.

All other 6.5%

Agricultural

products 8.0%

Chemicals

products 11.8%

South Africa

86.4%

All other

0.1%

Minerals and

metals 29.6%

Transportation

equipment

28.1%

Textiles and

apparel

16.0%

Lesotho

12.1%

Swaziland

1.4%
63

Southern African Customs Union

0

40

80

120

160

200

240

280

320

Issues:

U.S. Investment by Sector in SACU in 2001

Petroleum Food Chemicals

Million dollars

Machinery/

equipment

Metals Electronics TransportationOther

manufacturing

Wholesale

trade

69

114

306

87

11 17

196

283

123

As many SACU members are involved in other trade blocs, there is concern that members cannot focus on SACU due

to multiple administrative costs and conflicting trade policies. For example, all five SACU members are members of the

SADC. The interrelationship between SADC and SACU has been reported to pose difficulties because SADC is a free

trade agreement with separate external tariff regimes and SACU is a customs union with a common external tariff.

Since the foundation of SADC, South Africa has been accused of focusing on SADC at the expense of SACU.

Furthermore, the BLNS countries of SACU have criticized South Africa for using SACU to satisfy its own industrialization

strategy while using SADC as its mechanism for free trade.27
64
65

East African Community

0

100

200

300

400

500

600

700

1997 1998 1999 2000 2001

Thousand dollars

U.S. Trade with EAC U.S. exports

U.S. imports

Trade balance

Status and structure:

The original EAC was founded in 1967, but dissolved in 1977 after persistent disagreements over a variety of financial and

political issues. In 1999, Kenya, Uganda, and Tanzania signed a second East African Community Treaty, which laid the

administrative foundation for future talks on regional integration, with the long-term goals of creating a common market and

federation. Priority areas of cooperation and coordination include fiscal and financial policies; immigration controls; tariffs,

customs procedures and other trade issues; standards; air, road, rail, and water transport; and postal services and

telecommunications. The EAC anticipates eventual evolution into an organization that resembles COMESA. Kenya and

Uganda are members of COMESA. EAC goals include the eventual establishment of zero tariff rates among EAC members.

To protect revenue and infant industries, a 10 percent surcharge will be permitted on certain products.

EAC’s administrative provisions establish a biannual council of ministers and cooperation committee, as well as a court of

justice and a legislative assembly responsible for budgeting and auditing.

Trade:

The EAC is ranked seventh among all regional trade agreements in SSA in terms of individual intraregional exports as a

share of total intraregional exports and as a share of intraregional exports in total SSA exports.28

EAC

Members: Kenya, Tanzania, and Uganda

Population: 88.3 million (2001)

GNP: $25.0 billion (2001)

Goals: Customs union

Key Traded Commodities

U.S. Exports

Aircraft and spacecraft

Turbojets and turboprops

Fertilizers

Worn clothing

Parts of aircraft

U.S. Imports

Women’s or girls’ suits

Men’s or boys’ suits

Coffee

Tea

Precious and semiprecious stones
66

East African Community

AGOA Trade in 2001

By Sector

By Country

Recent developments:

The EAC was officially inaugurated in January 2001 after

ratification of the treaty by all three member countries. The

member countries agreed that Kenya would have no tariffs on

its imports from Uganda and Tanzania and that the latter two

countries would apply a diminishing 10 percent tariff on their

imports from Kenya that would be phased out over 4 years.

During 2001, the EAC established a number of institutions

designed to strengthen the bloc. The East African Assembly (a

legislative body) and a Court of Justice were created.29 The

East African Business Council was established to promote

trade and investment. The East African Law Society, and the

East African Securities Regulatory Authority were also created.

Kenya, Tanzania, and Uganda are considering joint projects in

power, road and rail transport, and telecommunications.

Finally, the EAC and COMESA have concluded a memorandum

of understanding to foster the harmonization of their trade

policies and programs.

Key AGOA Developments

U.S. imports under AGOA (including GSP) from EAC

totaled $59.9 million in 2001. According to a recently

published report by the Central Intelligence Agency, the

EAC was the greatest sub-Saharan regional beneficiary

under AGOA in 2001. This was primarily because of

Kenyan textile and apparel exports, which increased to

$51.6 million. Tanzania and Uganda, which lack

well-developed apparel industries and are dependent on

coffee and tea exports, have been slower to profit from

the U.S. provisions.

Textiles

and

apparel

86.1%

Agricultural

products

6.1%

All other

1.5%

Forest

products

4.3%

Kenya

98.3%

Tanzania

1.5%

Uganda

0.29%

Chemical

products

2.0%
67

East African Community

Issues:

U.S. Investment by Sector in EAC in 2001

-30

-20

-10

0

10

20

30

Petroleum Food

Million dollars

Chemicals Electronics Other

manufacturing

Wholesale

trade

Services

-15 -24 1 1 3 5

25

Economic disparity between member countries in the EAC is a major issue. Tanzania and Uganda have expressed concern

about Kenya’s stronger industrial base and more competitive economy.30 One of the major challenges facing the EAC is to

develop strategies that will enable Kenya’s industrial strength to benefit the region as a whole. Kenya dominates the zone

economically because the vast majority of goods move from Kenya to Tanzania and Uganda, and there is little trade

between Tanzania and Uganda.31 Conflicts over tariff disputes have led Kenya to impose duties on goods from Tanzania

and Uganda in retaliation for excise and suspended duties on Kenyan goods applied by those two countries.32

In January 2001, Tanzania and Uganda expressed concerns regarding Kenyan proposals in the areas of tourism and

agriculture. Both countries are concerned that Kenya will receive the bulk of proceeds from ventures in these sectors.

For example, Tanzania is concerned that most tourists could choose to visit the better known Kenyan game parks,

resulting in a disproportionate share of revenue being realized by Kenya.33
68
69

Intergovernmental Authority on Development

0

100

200

300

400

500

600

1997 1998 1999 2000 2001

Thousand dollars

U.S. Trade with IGAD U.S. exports

U.S. imports

Trade balance

Status and structure:

The current focus of IGAD is on transportation and communications infrastructure cooperation. Regional roadways are in

disrepair, and members are favoring rail-line rehabilitation to improve transportation. IGAD is applying most of the

integration instruments already adopted within the COMESA.34 Djibouti, Eritrea, Ethiopia, Kenya, and Uganda are

members of COMESA.

Trade:

IGAD is ranked eighth among all regional trade agreements in SSA in terms of individual intraregional exports as a share

of total intraregional exports and as a share of intraregional exports in total SSA exports.35

igad

Members: Djibouti, Eritrea, Ethiopia, Kenya, Somalia, and Uganda

Population: 136.5 million (2001)

GNP: $23.2 billion (2001)

Goals: To combat the effects of drought and address economic, political and social issues, including conflict prevention and resolution.

Key Traded Commodities

U.S. Exports

Aircraft and spacecraft

Wheat and meslin

Fertilizers

Turbojets and turboproppellors

Parts of aircraft

U.S. Imports

Women’s or girls’ suits

Men’s or boys’ suits

Coffee

Tea

Oil seeds

Recent developments:

In January 2002, IGAD members held their ninth summit. The top issues on the agenda were developing a peace

initiative for Sudan, the Somali reconciliation process, and the establishment of a regional mechanism for fighting

terrorism.36 Talks on peace in the Sudan have continued through June 2002.37 Early in 2002, there was discussion

of establishing an IGAD parliament.

Issues:

Regional fighting between Somalia and Sudan, Eritrea and Ethiopia, and between Ethiopia and Somalia has stalled

progress of the organization.
70

Intergovernmental Authority on Development

AGOA Trade in 2001

By Sector

By Country

Key AGOA Developments

Kenya benefitted from AGOA in 2001. U.S.

imports in 2001 from Kenya under AGOA

(including GSP) were valued at $58.9 million of

the $59.8 million exported from IGAD under the

AGOA program; $51.6 million of which were

textiles and apparel goods.

Textiles

and

apparel

86.4%

Agricultural

products

6.1%

All other

3.6%

Forest products

3.9%

Kenya

98.4%

Ethiopia Uganda 1.4%

0.2%

U.S. Investment by Sector in IGAD in 2001

-30

-20

-10

0

10

20

30

40

Petroleum Food

Million

dollars

Chemicals

Electronics

Other

manufacturing

Wholesale

trade Services

35

-24 1 1 3 5

32
71

Indian Ocean Commission

-600

-400

-200

0

200

400

600

800

1997 1998 1999 2000 2001

Thousand dollars

U.S. Trade with IOC U.S. exports

U.S. imports

Trade balance

Status and structure:

In 1982, the Indian Ocean Commission was established to promote cooperation between the islands of the Indian Ocean in

economic, social, cultural, agricultural, and scientific policies. Regarding trade, the IOC aims to carry out the “Programme

Regional Integré de Dévelopement des Echanges” (PRIDE) which concerns trade in goods and services among the IOC

member states. The program seeks to promote intraregional trade by removing trade barriers and facilitating import

payments, and hopes to contribute toward the better integration of the markets of the IOC member states. IOC is applying

most of the integration instruments already adopted within COMESA.38 Comoros, Madagascar, Mauritius, and Seychelles

are members of COMESA.

Trade:

The IOC ranks last out of all regional trade agreements in SSA in terms of individual intraregional exports as a share of total

intraregional exports (0.7 percent) and as a share of intraregional exports in total SSA exports (0.1 percent).39

iOC

Members: Comoros, France (representing the French Overseas Department of Reunion), Madagascar, Mauritius, and Seychelles

Population: 18.4 million (2001)

GNP: $10.0 billion (2001)

Goals: To achieve representation in the EU and tariff reduction among members.

Key Traded Commodities

U.S. Exports

Aircraft and spacecraft

Medical instruments

Machinery for washing textiles

(not laundry)

Parts of aircraft

X-Ray apparatus

U.S. Imports

Sweaters, pullovers, sweatshirts

and vests

Women and girls’ suits

Men and boys’ suits

Men and boys’ shirts

Vanilla beans
72

Indian Ocean Commission

AGOA Trade in 2001

By Sector

By Country

Recent developments:

IOC has initiated a number of projects aimed at promoting

industry development in member countries. The bloc has

received aid from the EU for more than 20 developmental

projects. Current projects include a regional tourism

promotion, which is aimed at attracting tourists and improving

tourism services; an oil-spill contingency planning project, which

will develop legal and institutional frameworks to deal with spills;

and a regional environment program, which seeks to protect

species endemic to the region and establish environmental

auditing systems. Other projects that have been initiated

include: Regional Program for Eradication of the Fruit Fly,

Integrated Regional Program for the Development of

Exchanges, and the University of the Indian Ocean Program.

The following projects are being finalized: Regional Handicraft

Program, Foreign Trade Statistics Program, Meteorological

Program, Regional Tuna Fishing Program and International

Transit Center. The IOC also organizes annual regional trade

fairs.

Key AGOA Developments

U.S. imports from IOC countries under

AGOA (including GSP) totaled $155.3

million in 2001. Madagascar benefitted

the most from AGOA, as the United

States imported $97.1 million worth of

goods from Madagascar under the

preference program. This was mainly due

to an increase in U.S. imports of textile

and apparel goods.

Textiles

and

apparel

84.7%

Agricultural

products

8.1%

All other

0.9% Electronic

products

4.8%

Madagascar

62.5%

Seychelles

2.7%

Miscellaneous

manufactures

1.5%

Issues:

Poor transportation and communication infrastructure inhibit

the flow of goods and people among the members of the

IOC. IOC’s mandate is limited by its budget even with the

inclusion of French (Reunion) funds. The group also

experiences an irregular payment of dues as well as the

inability to pay qualified staff members. The importance of

IOC in terms of economic integration has been negated by

the formation of the SADC and the COMESA as these two

groups incorporate countries with stronger economies and

have more defined goals than that of IOC.

Mauritius

34.8%
73

Communauté Economique et Monétaire de ľAfrique Centrale

-4

-3

-2

-1

0

1

2

3

4

1997 1998 1999 2000 2001

Status and structure:

CEMAC was founded in March 1994 to promote an economic and monetary union. Like WAEMU, CEMAC members use the

CFA franc as a common regional currency. The long-term goals of CEMAC are similar to WAEMU’s: to promote a

convergence of macroeconomic policies, stabilize the common currency, create a single market, harmonize sectoral

policies, and remove tariff and nontariff barriers.40 CEMAC also has institutions in place such as a parliament and a court of

justice comprising judicial and accounting chambers.41

Trade:

CEMAC ranks only ahead of the IOC in terms of individual intraregional exports as a share of total intraregional exports (1.1

percent) and as a share of intraregional exports in total SSA exports (0.1 percent).42

cemac

Members: Cameroon, Central African Republic, Chad, Republic of Congo (ROC), Equatorial Guinea, and Gabon

Population: 7.8 million (2001)

GNP: $16.9 billion (2001)

Goals: Customs union

Key Traded Commodities

Million dollars

U.S. Trade with CEMAC U.S. exports

U.S. imports

Trade balance U.S. Exports

Parts of machinery

Aircraft and spacecraft

Machinery for moving earth or snow

Prefabricated buildings

Lifting, handling, or loading machinery

U.S. Imports

Petroleum oils

Petroleum gases

Oils from distillation of coal tars

Acyclic alcohols and hydrocarbons

Manganese ores

Recent developments:

A single passport was implemented for travel throughout the CEMAC region in July 2001.43 In April 2002, CEMAC

created a regional coordination and administration committee mandated to conclude an economic partnership

agreement with the EU.44

Issues:

Rivalry among leaders within CEMAC and political instability is expected to affect the integration process negatively.45

Moreover, according to Gabon’s deputy prime minister, the CEMAC region also suffers from the lowest road density of

any grouping in SSA.
74

Communauté Economique et Monétaire de ľAfrique Centrale

U.S. Investment by Sector in CEMAC in 2001

0

1

2

3

4

5

6

7

8

9

10

Million

dollars

Petroleum Services Depository

Finance,

insurance/

real estate Other

1,899

8

7

1 1

AGOA Trade in 2001

By Country

Key AGOA Developments

U.S. imports under AGOA (including GSP)

from CEMAC totaled $1.1 billion. Almost

all U.S. imports from CEMAC in 2001

under AGOA were energy-related

products. Gabon was the greatest

beneficiary of AGOA in 2001. U.S.

imports of energy-related products from

Gabon totaled $938.7 million in 2001.

Congo (ROC)

11.8%

Cameroon 3.4%

Gabon

84.8%

Energy-related

products 99.8%

All other .2%

By Sector

Minerals

and metals

71.8%

All other

8.6%

Agricultural

products 8.2%

Forest

products 11.4%
75

1 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on

June 10, 2002.

2 Asia Intelligence Unit, “Ecowas/Converging Ideally on

a Single Currency,” June 14, 2002, found at Internet

address

http://www.its.newsedge-web.com/NewsEdge/ViewRevie

wStory/020614/0/1/2/8?Username=nchrist, retrieved

on June 14, 2002.

3 Ghanaian Chronicle, Howard Scott, “Pushing for

Single West African Currency,” June 7, 2002, found at

Internet address

http://www.allafrica.com/stories/200206170546.html,

retrieved on June 15, 2002.

4 The Economist Intelligence Unit (EIU), “Country

Profile,”2002.

5 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on

June 10, 2002.

6 EIU Viewswire, “Monetary union in West Africa-plan

or pipedream?” June 11, 2001 found at Internet address

http://www.viewswire.com/index.asp?layout=display_articl

e&search_text=Ecowas&doc_id=149033, retrieved on May

23, 3002.

7 EIU Viewswire, “Monetary union in West Africa-plan

or pipedream?” June 11, 2001, found at Internet address

http://www.viewswire.com/index.asp?layout=display_articl

e&search_text=Ecowas&doc_id=149033, retrieved on May

23, 3002.

8 “Why so Little Intra-ECOWAS Trade?” U.S. Embassy

in Lagos.

9 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on June 10, 2002.

10 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on June 10, 2002.

11 For more detailed analysis of Côte d’Ivoire, see the

country profile in Chapter 6.

12 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on June 10, 2002.

13 The Herald, “Free Trade Area Boosts Trade Within

COMESA,” May 25, 2002, found at Internet address

http://www.allafrica.com/stories/200205270578.html,

retrieved on June 10, 2002.

14 Financial Gazette, “Zimbabwe To Increase COMESA

Exports,” May 30, 2002, found at Internet address

http://www.allafrica.com/stories/200205300212.html,

retrieved on June 14, 2002.

15 EIU Viewswire, “AGOA is working,” May 8,2002,

found at Internet address

http://www.viewswire.com/index.asp?layout=display_articl

e&search_text=comesa&doc_id=189605, retrieved on

May 23, 2002.

16 Financial Gazette, “Zimbabwe To Increase COMESA

Exports,” May 30, 2002, found at Internet address

http://www.allafrica.com/stories/200205300212.html,

retrieved on June 14, 2002.

17 EIU Viewswire, “New trade insurance initiative holds

promise,” Dec. 17, 2001, found at Internet address

http://www.viewswire.com/index.asp?layout=display_articl

e&search_text=comesa&doc_id=171703, retrieved on May

23, 2002.

18 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on

June 10, 2002.

19 EIU, “Country Profile,” 2002.

20 EIU Viewswire, “Proposed Free Trade Groupings

Face Challenges,” June 11, 2001, found at Internet

address

http://www.viewswire.com/index.asp?layout=display_articl

e&search_text=comesa&doc_id=149022, retrieved on May

23, 2002.

21 EIU Viewswire, “Protectionist Sentiment is Growing,”

Aug. 17, 2001, found at Internet address

http://www.viewswire.com/index.asp?layout=display_articl

e&search_text=comesa&doc_id=156999, retrievedon May

23, 2002.

22 The East African Standard, “Comesa Riled By

Cheating on FTA,” May 6, 2002, found at Internet address

http://www.allafrica.com/stories/200205070043.html,

retrieved on June 15, 2002.

23 SADC, “Transformation from Convergence to

Community,” found at Internet address

http://www.sadc.int/english/about/background.html,

retrieved on

July 23, 2002.

24 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on

June 10, 2002.

25 EIU,“Country Profile,” 2002.

26 EIU Viewswire, “SACU Trade Deal at Last,” Oct. 30,

2001, found at Internet address

http://www.viewswire.com/index.asp?layout=display_articl

e&search_text=sadc&doc_id=165552, retrieved on

June 10, 2002.

27 EIU, “Country Profile,”2002.

28 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

on

June 10, 2002.

29 Neil Ford, “East African Community: Will the Unity

Hold?” African Business, Iss. 273, February 2002.

30 Asia Intelligence Wire,“Tanzania Pleads for Balanced

Trade with Kenya,” July 17, 2002, found at Internet

address

http://www.itc.newsedge-web.com/NewsEdge/ViewRevie

wStory/020617/0/1/2/6?Username=nchrist, retrieved

on July 17, 2002.

31 Neil Ford, “East African Community: Will the Unity

Hold?” African Business, Iss. 273, Feb. 2002.

32 Vitalis Omondi, “Reciprocal Duty: Kenya Likely to Stir

Controversy,” The East African, June 17, 2002, found at

Internet address

http://www.allafrica.com/stories/200206170947.html,

retrieved on July 17, 2002.

TRADE-Continued

ENDNOTES
76

33 EIU, Kenya: Country Profile 2001, December 2001,

p. 40.

34 UNECA, “Annual Report On Integration In Africa

2002,”March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved on

June 10, 2002.

35 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved

June 10, 2002.

36 EIU Viewswire, “East African summit highlights political

realignment,”Jan. 11, 2002, found at Internet address

http://www.viewswire.com/index.asp?layout=display_article

&search_text=igad&doc_id=174277, retrieved June 10,

2002.

37 Joyce Mulama,“Sudan Peace Talks Start At Kenyan

Secret Location,” African Church Information Service, found

at Internet address

http://www.allafrica.com/stories/200206240394.html,

retrieved on June 24, 2002.

38 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved on

June 10, 2002.

39 UNECA, “Annual Report On Integration In Africa

2002,”March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved on

June 10, 2002.

40 U.S. Commercial Service, “Regional Cooperation

Makes It Easier To Do Business,” found at Internet address

http://www.buyusa.gov/westafrica/en/page79.html,

retrieved on Sept. 18, 2002.

41 Africa Online, “Profile on CEMAC,” found at Internet

address

http://www.africaonline.co.ci/AfricaOnline/nesda/profile.ht

ml, retrieved on Sept. 18, 2002.

42 UNECA, “Annual Report On Integration In Africa

2002,” March 2002, found at Internet address

http://www.uneca.org/adfiii/ariaoverview.htm, retrieved on

June 10, 2002.

43 Africa New Bulletin, “Regional Integration,” found at

Internet address

http://www.peacelink.it/anb-bia/nr427/e01.html,

retrieved on Aug. 13, 2002.

44 United Nations, “CEMAC Moves Closer to Economic

Accord with EU,” Office for the Coordination of Humanitarian

Affairs, Apr. 8, 2002, found at Internet address

http://www.callisto.centre.edu/pipermail/focar/2002-April

/000516.html, retrieved on Aug. 13, 2002.

45 EIU Viewswire, “Key Development: Camaroon” June 5,

2002, found at Internet address

http://www.viewswire.com/index.asp?layout=display_article

&search_text=cemac&doc_id=193165, retrieved on June

10, 2002.

TRADE-Continued

ENDNOTES-Continued
77

CHAPTER 4

Multilateral Assistance, U.S. Bilateral Assistance,

and Other Trade-Related Initiatives

U.S. trade and investment relationships with countries in SSA are influenced by a

number of factors, including programs providing multilateral assistance, bilateral

assistance, and other trade-related initiatives. U.S. export and investment

relationships with the region are affected by policies and programs of the

Export-Import Bank (Ex-Im Bank), U.S. Trade and Development Agency (TDA),

Overseas Private Investment Corporation (OPIC), and various programs for

agricultural exports operated by the U.S. Agency for International Development

(USAID) and the U.S. Department of Agriculture (USDA).1 Additional U.S. economic

assistance to SSA is largely provided through grants administered by USAID. USAID’s

development assistance programs in the region promote development activities in

health, education, agriculture, finance and business development, democratic

institutions, and international trade and investment. The nature and level of U.S.

imports from SSA are similarly influenced by U.S. and foreign trade-related initiatives

and programs.

Given the relatively low investment levels (see chapter 3), lending through the

International Development Association (IDA) of the World Bank and the African

Development Fund of the African Development Bank (AfDB) Group is a significant

source of financing the economic development programs in the region. As a

shareholder in both the World Bank and the AfDB, the United States is an important

voice in these banks’ operations, and U.S. companies are eligible to bid on their

funded procurement opportunities.

This chapter summarizes developments in multilateral assistance, U.S.-bilateral

assistance to SSA, and other trade-related initiatives and programs. Table 4-1

provides an overview of these activities.

Sources of Multilateral Assistance to Sub-Saharan Africa

The World Bank Group and the AfDB Group are major sources of multilateral

assistance for SSA.2 Lending by the World Bank and AfDB finances specific

1 The USDA administers Title I of Pub. L. 480, which provides sales of U.S. agricultural commodities

using long-term concessional credit.

2 The World Bank Group includes the International Bank for Reconstruction and Development (IBRD)

or World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee

Agency (MIGA). The IFC promotes private investment in its members by financing private-sector projects
78

Table 4-1

Summary of general developments in multilateral assistance, U.S. bilateral

assistance and other trade-related initiatives for sub-Saharan Africa,

2001-02

Institution/activity

2001 assistance levels for

Sub-Saharan Africa Other developments

Multilateral Economic and Trade Assistance

The World Bank Group:

International Development

Association (IDA)/World Bank

Lending commitments made by

the World Bank to countries in

sub-Saharan Africa were

valued at $1.8 billion in 2000

and in 2001 reached $3.4

billion.

The first Poverty Reduction

Strategy Credit was issued to

Uganda.

The World Bank Group:

Multilateral Investment

Guarantee Agency (MIGA)

In FY 2001, MIGA provided

guarantees or coverage for

eight projects in sub-Saharan

Africa, totaling $186 million.

The African Connection

Telecomms Databank was

launched.

The World Bank Group:

International Finance

Corporation (IFC)

The IFC supported

approximately $1.5 billion in

financing for projects in

sub-Saharan African countries

during FY 2001.

Assisted African countries in

projects ranging from hotels to

infrastructure.

African Development Bank

Group (AfDB)

In 2001, the AfDB approved

loans, private equity

investments, and debt relief

with a combined value of $3.0

billion.

In 2001, the AfDB implemented

projects in line with emphasis

on agricultural and rural

development investments as an

approach to poverty reduction.

International Monetary Fund

(IMF)

Regular and concessional

lending increased in FY 2001

to SDR $9.5 billion from SDR

$6.3 billion in FY 2000.

Held a joint meeting with

World Bank to discuss views of

African leaders.

Heavily Indebted Poor

Countries debt relief (HIPC)

Nine countries in sub-Saharan

Africa qualified for an

estimated $9 billion (in nominal

terms over time from all

creditors) of debt relief in FY

2001.

34 countries received $36

billion, freeing them of $56

billion in payments.

New Partnership for African

Development (NEPAD)

African leaders advocated

NEPAD funding levels of

approximately $65 billion at

the June 2002 G8 meeting.

No definite funding was

allocated; however, G8

leaders did advocate efforts

aimed at increasing official

development assistance by $12

billion by 2006.

NEPAD is a merger of the

Millennium Partnership for the

African Recovery Programme

(MAP) and the Omega Plan.

On July 3, 2001; the merger

was finalized and the New

Africa Initiative (NAI) was

established. On October 23,

2001, the policy framework

was finalized by the Heads of

State Implementation

Committee and NEPAD was

formed.

U.S. Trade Capacity Building

Initiatives

According to a 2001 USAID

survey, U.S. Government

agencies funded or

implemented trade capacity

building initiatives totaling

Assisted countries received

trade capacity building

assistance in areas ranging

from WTO Awareness and

Accession to Environment to
79

Table 4-1—Continued

Summary of general developments in multilateral assistance, U.S. bilateral

assistance and other trade-related initiatives for sub-Saharan Africa,

2001-02

Institution/activity

2001 assistance levels for

Sub-Saharan Africa Other developments

U.S. Economic and Trade Assistance

U.S. Trade Capacity Building

Initiatives-Cont.

$192 million for FY1999

through FY2001, of which

approximately $54 million

was distributed in FY2001.

Services to Governance and

Interagency Coordination. A

variety of U.S. Government

agencies were involved in

trade capacity building

initiatives, including USAID,

Department of Agriculture,

Department of Commerce,

Ex-Im Bank, OPIC, and Trade

and Development Agency.

Export-Import Bank of the

United States (Ex-Im Bank)

Ex-Im Bank’s support to

sub-Saharan Africa, which

consists of loans, guarantees,

and insurance, increased from

$136 million in FY 2000 to

$312 million in FY 2001.

In FY 2001, Ex-Im Bank

authorized a loan for mining

improvements in Ghana and

provided a guarantee for a

South Africa aircraft purchase.

U.S. Trade and Development

Agency (TDA)

TDA’s obligations in

sub-Saharan Africa increased

to $6.1 million in FY 2001 from

$4.2 million in FY 2000.

To promote airline safety the

TDA held 2 orientation visits for

African aviation officials in FY

2001.

Overseas Private Investment

Corporation (OPIC)

In FY 2001, OPIC committed

$31.8 million to insure and

finance five investment projects

in sub-Saharan Africa.

OPIC supported funds that

invest in sub-Saharan Africa

including the Africa Millennium

Fund, the ZM Africa Investment

Fund, the Modern Africa

Growth and Investment Fund,

and the Africa Growth Fund.

Development Assistance and

other economic assistance

programs (USAID)

USAID appropriations

increased from $924 million in

FY 2000 to $1,262 million in

FY 2001. ATRIP funding was

about $22 million in FY 2001.

USAID’s regional programs

emphasized diverse initiatives

such as crisis prevention,

sustainable economic growth,

support for national food

security strategies, and smalland medium-scale business

development.

African Growth and

Opportunity Act (AGOA)

In 2001, AGOA (including

GSP) imports from AGOA

beneficiary countries totaled

$8.2 billion. Nigeria was the

leading sub-Saharan African

beneficiary with 69.5 percent

of the total; Gabon was second

with 11.5 percent; and South

Africa was third with 11.3

percent.

On August 6, 2002, the

President signed the Trade Act

of 2002, which modifies

certain provisions of AGOA

and expands preferential

access for imports from

beneficiary sub-Saharan

African countries. The

modifications, collectively

referred to as AGOA II, are

effective immediately upon

enactment, but must be

reflected in the HTS by

proclamation.

Source: Compiled by USITC.
80

development projects, and therefore can generally be classified by sector. In addition

to these two organizations, the International Monetary Fund (IMF) provides

concessional loans to countries experiencing balance-of-payments difficulties. These

loans cannot be classified by sector.

The World Bank Group

The World Bank/International Development Association

The World Bank is the leading multilateral institution dedicated to providing

development assistance. The Bank’s main goals are to strengthen the investment

climate and invest in poverty reduction. While focusing on project quality, the Bank

seeks to improve public expenditure through improved procurement and financial

management, and by reducing structural constraints to poverty reduction. The

International Development Association (IDA), the Bank’s concessional lending arm,

provides long-term loans at no interest to eligible borrowers from developing

countries.

The IDA is an integral part of the Bank’s poverty reduction mission by lending to and

assisting those countries with limited access to capital.3 Eligible countries are ranked on

the basis of policy performance and effective use of financial aid. The IDA allocates

more funds to the poorest eligible countries, with a consideration for a country’s level

of policy performance and institutional capacity. The goal is to increase the likelihood

that the loans are granted to countries where they will have the most impact.4

In 1999, the Poverty Reduction Strategy Program was launched. This program was

designed to increase government participation in projects that use foreign aid.

Thirty-two countries (17 in Africa) have submitted Full or Interim Poverty Reduction

Strategy Papers (PRSPs). The Bank and IMF perform joint staff assessments on these

plans to ensure that the plans move the country toward international development

goals such as applying sound macroeconomic and sectoral policies, protecting the

environment, and strengthening social sectors. The Bank then allocates Poverty

Reduction Support Credits (PRSCs) to low-income countries to assist them in

implementing their reforms. Uganda received the first PRSC in May 2001, a $150

million credit.5

The 13th replenishment of the IDA (IDA-13) was held in June 2001. Replenishments are

held so donors can commit funds to the IDA. To achieve better transparency and

2—Continued

that lack government guarantees. MIGA offers investment insurance to encourage foreign investment in

its developing country members. As with the World Bank and the AfDB, share capital for MIGA and the

IFC is provided by the member countries, which collectively determine the policies and activities of these

institutions. The United States is a shareholder in both MIGA and the IFC.

3 World Bank, The World Bank Annual Report, 2001, vol. 1, pp. i, 11.

4 Ibid., p. 11.

5 Ibid., pp. i, 11, 43 and 67.
81

broaden participation of the IDA, the Bank included borrowing countries, for the first

time, in discussions with donors about the IDA’s future direction.6

IDA lending increased to $6.8 billion in fiscal year 2001, compared with $4.2 billion in

fiscal year 2000. Sub-Saharan Africa received $3.4 billion of the fiscal year 2001

total, one half of all new IDA commitments. Several factors caused this increase, some

country specific and others affecting the entire region. Ethiopia and Kenya, which did

not receive funding in 2000, received funding in 2001. Ethiopia was the largest overall

borrower with loans of $667 million. New types of activities in Africa supported by the

IDA have increased the average amount of loans. According to the World Bank, these

include a concerted response to the HIV/AIDS pandemic, help in adjusting to

petroleum price changes, promotion of regional trade, and post-conflict

reconstruction support.7 Sub-Saharan African countries eligible to borrow from the

IDA are listed in table 4-2.

Table 4-2

World Bank/IDA: Eligible borrowers in sub-Saharan Africa (39)

Angola Ethiopia Niger

Benin The Gambia Nigeria

Burkina Faso Ghana Rwanda

Burundi Guinea São Tomé and Principe

Cameroon Guinea-Bissau Senegal

Cape Verde Kenya Sierra Leone

Central African Republic Lesotho Somalia

Chad Liberia Sudan

Comoros Madagascar Tanzania

Congo (DROC) Malawi Togo

Congo (ROC) Mali Uganda

Côte d’Ivoire Mauritania Zambia

Eritrea Mozambique Zimbabwe

Source: IDA, “Current IDA - Eligible Borrowers,” found at

http://www.worldbank.org/ida/eligible.htm, retrieved May 30, 2002.

Table 4-3 presents sectoral loan commitments made by the IDA, and credits provided

to countries in SSA by the World Bank during fiscal years 1992-2001. Economic policy

received the largest loan commitment of fiscal year 2001, with loans totaling $531.2

million. Private sector development and social protection received loans totaling

$462.2 million and $453.7 million, respectively. Traditional activities such as

transportation and agriculture received loans totaling $99 million and $362.3 million,

respectively.

Table 4-4 shows World Bank projects approved for SSA in fiscal year 2001. There

were 76 IDA projects undertaken in 27 African countries during fiscal year 2001. The

five countries borrowing the most were Ethiopia ($666.8 million), Uganda ($358.4

million), Kenya ($350.2 million), Madagascar ($267.6 million), and Senegal

6 Ibid., p. 11.

7 Ibid., p. 19.
82

Table 4-3

World Bank (IDA and IBRD) lending commitments in sub-Saharan Africa to

borrowers by sectors, fiscal years 1998-2001, and average 1992-97

(Million U.S. dollars by fiscal years)

Average

1998 1999 2000 2001 Sector 1992-97 1998 1999 2000 2001

Agriculture . . . . . . . . . . . . . . . . . . . 322.1 176.9 188.1 173.5 362.3

Economic Policy . . . . . . . . . . . . . . . . 527.1 330.1 676.6 426.3 531.2

Education . . . . . . . . . . . . . . . . . . . . 235.7 372.3 194.1 159.7 84.9

Electric power and other energy . . . 181.4 380.3 (1

) 42.9 (1)

Environment . . . . . . . . . . . . . . . . . . 47.1 71.8 15.0 16.4 22.0

Finance . . . . . . . . . . . . . . . . . . . . . . 213.1 5.0 29.4 60.4 189.4

Health, population and nutrition . . . 133.3 227.0 172.1 110.0 384.2

Mining . . . . . . . . . . . . . . . . . . . . . . . 10.7 5.0 15.0 (1

) 18.0

Multisector . . . . . . . . . . . . . . . . . . . . 38.9 (1

) (1) 65.0 (1)

Petroleum oil and gas . . . . . . . . . . . 31.4 (1

) 17.5 116.6 72.0

Private sector development . . . . . . . 204.5 44.4 78.1 200.6 462.2

Public sector management . . . . . . . 96.4 180.5 121.2 283.4 382.2

Social protection . . . . . . . . . . . . . . . 118.9 114.7 129.6 139.4 453.7

Telecommunications . . . . . . . . . . . . 14.9 (1

) 10.8 10.2 (1)

Transportation . . . . . . . . . . . . . . . . . 294.4 770.1 236.6 256.2 99.0

Urban development . . . . . . . . . . . . 132.3 85.0 110.9 10.8 40.0

Water supply and sanitation . . . . . . 124.6 110.7 75.0 87.7 254.4

Total . . . . . . . . . . . . . . . . . . . . 2,726.7 2,873.8 2,070.0 2,159.1 3,355.5

1 Not available

Note.—Because of rounding, figures may not add to the totals shown.

Source: World Bank, The World Bank Annual Report, 2001, Volume 1, pp. 107-125.

($255 million). Ethiopia received funding for eight projects, three of which received the

largest loans overall. These projects were $230 million for an emergency recovery

project, $171 million for an emergency demobilization and reintegration project, and

$150 million for economic rehabilitation support credit. Uganda borrowed $150

million of credit for poverty reduction.8 Kenya borrowed $150 million of credit for

economic and public sector reform. Kenya borrowed funds for six projects, and

Uganda borrowed $7 billion for payments.9 Nine African countries qualified for $9

billion. These countries were Benin, Burkina Faso, Cameroon, Mali, Mauritania,

Mozambique, Senegal, Tanzania, and Uganda.10

The Highly Indebted Poor Countries (HIPC) Initiative is a joint effort of the International

Monetary Fund and the World Bank. The HIPC Initiative was recently enhanced to

deliver debt relief faster to countries in need. In FY 2001, 34 countries received $36

billion, which freed them of $56 billion in payments.

8 Poverty Reduction Support Credits are discussed in detail later in the chapter.

9 IMF, “Debt Relief under the Heavily Indebted Poor Countries (HIPC) Initiative,” found at Internet

address http://www.imf.org/external/np/exr/facts/hipc.htm, retrieved on July 11, 2002.

10 World Bank, “Prospects for Development,” found at Internet address

http://www.worldbank.org/prospects/gep2001/appx1/safrica.htm, retrieved on July 10, 2002.
83

Table 4-4

World Bank projects approved in sub-Saharan Africa, FY 2001

Country/project name

Date of

approval

Maturity

dates

Principal

amount

(million dollars)

Africa

Regional Trade Facilitation Project April 3, 2001 2011/2036 5.0

Benin

Public Expenditure Reform Adjustment Credit Mar. 22, 2001 2011/2041 10.0

Burkina Faso

Ouagadougou Water Supply Project

Community-Based Rural Development Project

Mar. 21, 2001

Nov. 30, 2000

2011/2040

2011/2040

70.0

66.7

Burundi

Regional Trade Facilitation Project

Public Works and Employment Creation Project

Apr 3, 2001

Jan 23, 2001

2011/2041

2011/2040

7.5

40.0

Cameroon

Structural Adjustment Credit III-IDA Reflows

Multi-sectoral HIV/AIDS Project

June 15, 2001

Jan. 15, 2001

2008/2038

2011/2040

7.8

50.0

Cape Verde

Supplemental Credit for Transport and

Infrastructure Project

Jan. 30,2001 2003/2033 5.0

Chad

National Transport Program Support Project Oct. 26, 2000 2011/2040 67.0

Comoros

Infrastructure, Water and Environment Project Mar. 1, 2001 2011/2040 11.4

Eritrea

HIV/AIDS, Malaria, Sexually Transmitted

Diseases andTuberculosis Control Project

Emergency Reconstruction Credit

Integrated Early Childhood Development Project

Dec. 18, 2000

Nov. 22, 2000

July 27, 2000

2011/2040

2011/2040

2010/2040

40.0

90.0

40.0

Ethiopia

Supplemental Credit for National Fertilizer

Sector Project

Economic Rehabilitation Support Credit

Distance Learning Project

Conservation and Sustainable Use of

Medicinal Plants Project

Emergency Recovery Project

Emergency Demobilization and Reintegration

Project

Multi-Sector HIV/AIDS Project

Women Development Initiatives Project

June 14, 2001

June 5, 2001

Apr. 17, 2001

Feb. 13, 2001

Dec. 5, 2000

Dec. 5, 2000

Sep. 12, 2000

July 27, 2000

2011/2041

2011/2041

2011/2040

2011/2041

2011/2040

2011/2040

2011/2040

2010/2040

44.0

150.0

4.9

2.6

230.0

170.6

59.7

5.0

Gambia, The

HIV/AIDS Rapid Response Project Jan. 16, 2000 2011/2040 15.0

Ghana

AIDS Response Project (GARFUND)

Supplemental Credit for Economic

Reform Support

Operation II Program

Agricultural Services Subsector Investment

Project

Dec. 28, 2000

Sep. 7, 2000

Aug. 1, 2000

2011/1040

2011/2040

2010/2040

25.0

49.0

67.0

Kenya

Regional Trade Facilitation Project

Supplemental Credit for Economic and Public Sector

Reform

Decentralized Reproductive Health and HIV/AIDS

Project

Apr. 3, 2001

Jan. 24, 2001

Dec. 12, 2000

2011/2041

2010/2040

2011/2040

25.0

3.2

50.0
84

Table 4-4—Continued

World Bank projects approved in sub-Saharan Africa, FY 2001

Country/project name

Date of

approval

Maturity

dates

Principal

amount

(million dollars)

Kenya-Continued

Emergency Power Supply Project

AIDS Disaster Response Project

Economic and Public Sector Reform Credit

Oct. 26, 2000

Sep. 12, 2000

Aug. 1, 2000

2011/2040

2011/2040

2010/2040

72.0

50.0

150.0

Lesotho

Utilities Sector Reform Project Mar. 29, 2001 2011/2040 28.6

Madagascar

Rural Development Support Project

Community Development Project

Supplemental Credit for Structural Adjustment II

Supplemental Credit for Structural Adjustment III

Supplemental Credit for Social Fund III Project for

Cyclone Rehabilitation Activities

June 19, 2001

Apr. 19, 2001

Dec. 22, 2000

July 20, 2000

July 20, 2000

2011/2041

2011/2040

2011/2040

2009/2039

2010/2040

89.0

110.0

30.4

20.1

18.1

Malawi

Regional Trade Facilitation Project

Fiscal Restructuring and Deregulation Program

Credit III

- IDA Reflow

Fiscal Restructuring and Deregulation Program

Technical Assistance III Project

Fiscal Restructuring and Deregulation Program

Credit III

Apr. 3, 2001

Dec. 22, 2000

Dec. 21, 2000

Dec. 21, 2000

2011/2041

2011/2040

2011/2010

2011/2040

15.0

0.5

3.0

55.1

Mali

Supplemental Credit for Fiscal Reform

Education Sector Expenditure Program

Dec. 22, 2000

Dec. 20, 2000

2011/2040

2011/2040

25.4

45.0

Mauritania

Supplemental Credit for Fiscal Reform Support

Operation

Dec. 22, 2000 2010/2039 18.3

Mozambique

Mineral Resources Management Capacity

Building Project

Mar. 29, 2001 2011/2040 18.0

Niger

Water Sector Project

Supplemental Credit for Public Finance Recovery

Adjustment

Public Finance Adjustment Recovery Credit

May 3, 2001

Dec. 22, 2000

Sep. 14, 2000

2011/2040

2011/2040

2011/2040

48.0

12.2

35.0

Nigeria

Privatization Support Project

Community Based Poverty Reduction Project

June 14, 2001

Dec. 20, 2000

2011/2036

2011/2035

114.3

60.0

Rwanda

Competitveness and Enterprise Development

Project

Regional Trade Facilitation Project

Rural Sector Support Project

Supplemental Credit for Economic Recovery

Supplemental Credit for Health and Population

Project

Apr. 19, 2001

Apr. 3, 2001

Mar. 29, 2001

Dec. 22, 2000

Dec. 21, 2000

2011/2041

2011/2041

2011/2040

2009/2038

2011/2040

40.8

7.5

48.0

15.3

7.0

Sao Tome and Principe

Public Resource Management Credit

Public Resource Management Technical

Assistance II Project

Nov. 2, 2000

Nov. 2, 2000

2011/2040

2011/2040

7.5

2.5
85

Table 4-4—Continued

World Bank projects approved in sub-Saharan Africa, FY 2001

Country/project name

Principal

amount

(million dollars)

Maturity

dates

Date of

approval

Senegal

Long Term Water Sector Project

Social Development Fund Program

Trade Reform and Competitiveness Credit

Mar. 6, 2001

Dec. 20, 2000

Sep. 14, 2000

2011/2041

2011/2040

2011/2040

125.0

30.0

100.0

Sierra Leone

Public Sector Management Support II Project

Supplemental Credit for Economic Rehabilitation

and Recovery

Feb. 15, 2001

Dec. 14, 2000

2011/2040

2010/2040

3.5

10.0

Tanzania

Regional Trade Facilitation Project

Programmatic Structural Adjustment I IDA-Reflow

Social Action Fund Project

Apr. 3, 2001

Jan. 29, 2001

Aug. 22, 2000

2011/2041

2010/2040

2010/2040

15.0

0.8

60.0

Uganda

Poverty Reduction Support Credit

Regional Trade Facilitation Project

Environmental Management and Capacity

Building II Project

National Agricultural Advisory Services Project

HIV/AIDS Control Project

Supplemental Credit for Structural Adjustment III

Privatization and Utility Sector Reform Project

May 31, 2001

Apr. 3, 2001

Mar. 20, 2001

Feb. 15, 2001

Jan. 18, 2001

Dec. 22, 2000

Aug. 24, 2000

2011/2041

2011/2041

2011/2041

2011/2040

2011/2040

2007/2037

2010/2040

150.0

20.0

22.0

45.0

47.5

25.4

48.5

Western Africa

BCEAO Regional Payment Systems Project Oct. 19, 2000 2011/2040 9.4

Zambia

Technical Education Vocational and

Entrepreneurship Training Development

Program Support Project

Regional Trade Facilitation Project

Supplemental Credit for Fiscal Sustainability

Supplemental Credit for Fiscal Sustainability

Railways Restructuring Project

June 14, 2001

Apr. 3, 2001

Dec. 22, 2000

Nov. 20, 2000

Nov. 16, 2000

2011/2041

2011/2041

2010/2040

2010/2040

2011/2040

25.0

15.0

30.4

2.1

27.0

Total ................................ 3,369.6

Note.—n.a.=not applicable (IBRD loan). Because of rounding, figures may not add to the totals shown.

Source: World Bank, The World Bank Annual Report, 2001,vol. 1, pp. 144-146.

Multilateral Investment Guarantee Agency

The Multilateral Investment Guarantee Agency (MIGA) was established in 1998 as a

member of the World Bank Group to address the concerns of political instability for

investors. Its purpose is to encourage foreign direct investment in developing countries

by providing investment guarantees and technical assistance. Investment guarantees

act as insurance for investors against numerous situations involving economic and

social risks, such as expropriation, breach of contract, and war and civil disturbance in

a host country considered too risky to be profitable by private-sector insurance firms.

In 2001, MIGA was composed of 154 industrialized and developing countries.11 Table

4-5 lists those countries in SSA that are currently members of MIGA and those that are

11 MIGA, “Miga Membership,” found at Internet address http://www.miga.org/screens/

pubs/annrep01/members.pdf, retrieved on June 3, 2002.
86

Table 4-5

Sub-Saharan African MIGA members and countries in the process of

fulfilling membership requirements, 2000

MIGA Member countries (38)

Angola The Gambia Seychelles

Benin Ghana Sierra Leone

Botswana Guinea South Africa

Burkina Faso Kenya Sudan

Burundi Lesotho Swaziland

Cameroon Madagascar Tanzania

Cape Verde Malawi Togo

Central African Republic Mali Uganda

Congo (DROC) Mauritania Zambia

Congo (ROC) Mauritius Zimbabwe

Côte d’Ivoire Mozambique

Equatorial Guinea Namibia

Eritrea Nigeria

Ethiopia Senegal

Countries in the Process of Fulfilling Membership Requirements (6)

Chad Guinea-Bissau Niger

Gabon Liberia Rwanda

Source: MIGA website, “MIGA Member Countries,” found at http://www.miga.org/screens/pubs/

annrep01/members.pdf.

in the process of fulfilling membership requirements. MIGA issued investment

guarantees to cover eight projects in Africa totaling $186 million during fiscal year

2001. Table 4-6 outlines these projects, which typically involve privatization efforts

and capacity building activities.

Table 4-6

MIGA guarantees issued in sub-Saharan Africa, fiscal year 2001

Country Investor

Investor

country

Guarantee

amount Sector

Angola Desco A.B. Sweden $1,000,000 Construction and

management of an office

building

Guinea Agro-Industial and

Development S.A.

Panama $9,000,000 Restructure and refinance a

flour mill

Guinea Guinea Investment Guinea $40,000,000 Mining, processing,

electricity and

transportation

Mozambique Banque National

de Paris

France $4,500,000 Creation of a corporate

and trade finance facility

Mozambique “Sena Group” Mauritius $65,000,000 Rehabilitate and partially

privatize a large sugar

estate

Tanzania Barrick Gold Corp Canada $56,300,000 Mining

Togo Banque Belgolaise

and Joseph Fermon

Belgium and

United States

$7,400,000 Cotton ginning facility

Zambia Mitubishi Corp. Japan $2,400,000 Expansion of a car

dealership

Source: MIGA, MIGA Annual Report, 2001, pp. 50-53.
87

In its continued support of foreign direct investment into developing countries, MIGA

has been assisting the startup of the African Trade Insurance Agency (ATIA). ATIA is

designed to provide insurance against noncommercial and commercial risks, which

often keep Africa out of the global trading and investment loop. Membership is open to

all African countries and users are expected to be African and non-African firms and

banks. The initial members are Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda,

and Zambia.

MIGA also was involved in several other projects in 2001. The MIGA funded “Promote

Africa” which is a project designed to develop and utilize relationships for outreach

and marketing efforts. Also in 2001, another project was launched, African

Connection Telecomms Databank, a joint effort of the International Finance

Corporation (IFC) and MIGA. Furthermore, IFC has been assisting MIGA by marketing

its activities in Southern Africa. In 2001, a mobile office was set up in Senegal to

promote investment. MIGA teams conducted seminars in West Africa and met with

high-level government officials and business representatives in Mali, Senegal, and

Ghana. MIGA staff listened to concerns about local investment priorities and

challenges.12

International Finance Corporation

The IFC is a legally and financially independent member of the World Bank Group

founded in 1956. The IFC’s main objective is to promote sustainable private sector

investments.13 The IFC does so by following its current strategy, developed in 1998,

which emphasizes three areas: building up the financial sector, expanding private

investment in infrastructure, and supporting indigenous entrepreneurship.14

The IFC expanded its involvement in SSA in fiscal year 2001 as its committed portfolio

in Africa increased to $1.5 billion. Out of the 240 projects approved worldwide for

fiscal year 2001, 45 were for the Africa region.15 Reflecting the IFC’s focus on building

financial markets, $1,185 million (30 percent of the committed portfolio) went to fund

projects in financial services, infrastructure projects received $827 million (21

percent), and $309 million was directed towards petroleum, gas, and mining projects

(8 percent). Health care and education projects received $139 million (3.5 percent).16

According to the IFC, progress has been made toward peace in Sierra Leone, and

fighting has ended in Ethiopia and Eritrea, although HIV/AIDS continues to challenge

economic and social development in many SSA countries. Given these perceptions of

increasing stability, the IFC has stated that one of its interests is increasing tourism in

12 MIGA, Annual Report 2001, pp. 10, 12, and 31.

13 IFC, “Introduction,” found at Internet address http://www.ifc.org/ar2001/annual/intro.html,

retrieved on July 9, 2002.

14 IFC, Annual Report 2001, p. 38.

15 Ibid., pp. 30 and 38.

16 IFC, “Financial Highlights,”found at Internet address http://www.ifc.org/ar2001/annual/

financial.html, retrieved on July 9, 2002.
88

SSA. In FY 2001, the IFC committed to 12 hotel projects in Africa. In Tanzania, the IFC

provided equity for a hotel in an ecotourism area. This project targets environmental

conservation as well as provides positive economic benefit. Other hotel projects were

in South Africa and Botswana.17

The IFC also dispenses assistance to other areas. For example, the IFC assisted

Nigerian banks in meeting the medium-term lending needs of their customers. IFC

committed $122.5 million to this project, which benefits a broad range of companies

and local financial institutions. Bank projects were assisted in Cameroon, Malawi,

Namibia, and Tanzania, as well. The IFC loaned $40 million and arranged another

$60 million loan to assist Ghana Telecommunications. These loans will provide at least

70,000 households with telephone access. Communication projects also were

financed in Rwanda and Uganda.18

The African Development Bank Group

The African Development Bank (AfDB), the African Development Fund (AfDF) and the

Nigerian Trust Fund (NTF), together, comprise the African Development Bank Group

(AfDB Group). The main goals of the AfDB are to promote sustainable economic

growth and to reduce poverty in Africa. To achieve this, the Bank finances a broad

range of development projects and programs. The AfDB offers financial assistance on

nonconcessional terms, while the AfDF and NTF lend on concessional terms to

low-income regional member countries. The AfDB Group approvals for loans, equity

investments, and debt relief totaled $3 billion in 2001. In 1999, the AfDB adopted a

new mission statement that emphasized agricultural and rural development

investments as part of a new approach to reduce poverty. Because poverty is most

prevalent in rural areas, poverty reduction programs generally attempt to boost

productivity and develop human capital. The AfDB Group sees agriculture as the most

likely source of income generating activities for African populations, which are still

largely rural and agrarian. Almost 45 percent of the loan approvals went to projects in

the agriculture and social sector.19

The AfDB agenda addresses human capital building needs and private sector

development. Projects in these areas aim to facilitate the integration of African

economies with the global economy and enhance African workers’ employment

prospects. Toward these ends, there are several mechanisms devoted to expanding

and cultivating various segments of the private sector. There are venture capital funds,

infrastructure funds, and development financial institutions that provide lines of credit

to small- and medium-sized enterprises. Additionally, there are organizations such as

the African Project Development Facility, which assists African entrepreneurs in

developing business plans and feasibility studies. The AfDB Bank also approved loans

17 IFC, Annual Report 2001, pp. 37, 38, and 41.

18 Ibid., pp. 39 and 41.

19 Africa Development Bank, Annual Report, 2000, pp. viii, ix, 1, 2, and 7.
89

to the African Management Services Company, which provides management services

and training to African enterprises with potential long-term economic viability but with

no experienced management.20

The AfDB has had much success in cofinancing with foreign, local, and private

institutions. The major cofinanciers in 2001 were the World Bank (UA21 1.16 billion,

$1.46 billion), IMF (UA 0.72 billion, $0.90 billion), and EU (UA 0.35 billion, $0.44

billion). Regional member countries obtain loans from capital markets or other

third-party lenders, and the AfDB guarantees payment of the loan. The AfDB is able to

draw on a greater supply of financing resources, and hence lower financing costs for

borrowers by covering the risk that the private market is often unable to evaluate or

unwilling to accept. In 2001, external cofinanciers contributed UA 3.09 billion ($3.88

billion). The AfDB contributed UA 813.2 million ($1,022.0 million) to cofinancing

projects.22

The AfDB Group is actively involved in the movement to provide African countries with

debt relief. Its collaboration with the World Bank and IMF on the Enhanced HIPC

Initiative complements the AfDB Group’s efforts in that area. Under the Enhanced HIPC

Initiative, the AfDB Group relieves regional member countries of up to 80 percent of

their annual debt. The AfDB uses the PRSPs to monitor projects and poverty reduction

strategies implemented with newly available funds. In 2001, Gambia, Guinea,

Madagascar, Malawi, Rwanda, and Zambia received UA 174.9 million ($219.9

million) in debt relief from the AfDB under the Enhanced HIPC Initiative.23

Table 4-7 summarizes AfDB and AfDF approvals of loans and grants for projects in

SSA for 2001 (excluding multinational projects). The AfDB Group authorized funding

for 105 projects at a total cost of UA 2.1 billion ($2.6 billion). Ethiopia received the most

loans and grants: UA 185.8 million ($233.5 million), for seven projects. Niger also

received funding for seven projects. The AfDB Group’s funding approvals by sector

reflect the priorities set out in the mission statement adopted in 1999: UA 611.2 million

($768.1 million) was authorized for debt relief; UA 217.3 million ($273.1 million) was

authorized for agriculture and rural development; UA 100.6 million ($233.6 million)

was designated for social sector projects; and UA 173.3 million ($217.7 million) was to

be allocated to transportation projects.

International Monetary Fund

The IMF is composed of several lending facilities that tailor their assistance to respond

to specific balance of payments problems and help cushion the impact of structural

20 Ibid., pp. 70, 73, and 74.

21 UA= Unit of Account. An artificial currency used for accounting purposes where 1UA=$1.25674

as of Dec. 31, 2001.

22 African Development Bank, Annual Report, 2001, pp. 7 and 35. Note: U.S. dollar figures

calculated by USITC using conversion factor of 1UA=US$1.25673.

23 African Development Bank, Annual Report, 2001, pp. 37-40.
90

Table 4-7

Total AfDF and AfDB projects and programs approved during 2001, by country

AfDF and AfDB Funding

Country Sector Project Total Cost

Loan & Grants

Amounts

(Million dollars)

Angola Social Basic Education and Job Skills Project $24.37 $12.10

Benin Agriculture and Rural

Development

Project to Support the Rural Development of the

Mono and Couffo Departments 13.26 11.47

Agriculture and Rural

Development

The Firewood Project

14.77 12.57

Social Budget Reform Support Program for Poverty

Reduction 17.59

Burkina Faso Agriculture and Rural

Development

Decentralized and Participatory Rural

Development Project in the Bazega and

Kadiogo Provinces 25.44 18.85

Agriculture and Rural

Development

Study of a Decentralized Rural Development

Support Project for the Centre-West Region 0.77 0.73

Social Poverty Reduction Strategy Support Program 29.02

Transportation Second Road Program 31.10 27.65

Cameroon Multisector National Governance Program 4.21 4.00

Multisector Structural Adjustment Program III 25.76

Social Human Resources Development Project 0.58 0.57

Social Rural Family Income Improvement Program 21.87 17.59

Transportation Road Development Project 21.70 18.85

Chad Agriculture and Rural

Development

Biltine Department Rural Development Project

15.08 11.31

Agriculture and Rural

Development

Livestock Breeding System Support Project

0.54 0.50

Agriculture and Rural

Development

Natural Resources Management Project

0.63 0.58

Social Education V 9.40 8.46

Social Project to Support the Control of HIV/AIDS and

other Epidemic Diseases 16.38 7.54

Other Approvals HIPC Debt Relief 49.82

Democratic

Republic of

Congo

Social Emergency Humanitarian Assistance Program

0.48

Multisector The National Capacity Building Program

Support Project 3.43 2.48

Djibouti Agriculture and Rural

Development

Integrated Fisheries Development Project

(Supplementary Loan) 2.10 1.89

See footnotes at end of table.
91

Table 4-7—Continued

Total AfDF and AfDB Projects and Programs Approved During 2001, by country

AfDF and AfDB Funding

Country Sector Project Total Cost

Loan & Grants

Amounts

(Million dollars)

Djibouti–Con. Multisector Institutional Building Project for Good

Governance of Public Finance

1.57 1.48

Social Institutional Support to Improve the Situation of

Women

0.98 0.90

Ethiopia Agriculture and Rural

Development

Genale-Dawa River Basin Integrated Resources

Master Plan Study

5.28

4.94

Agriculture and Rural

Development

Koga Irrigation and Watershed Management

Project 47.55 42.63

Agriculture and Rural

Development

National Fertilizer Sector Project

(Supplementary Loan) 23.79 10.59

Multisector

Capacity Building of Ministry of Finance and

Economy 0.72 0.65

Multisector Second Structural Adjustment Loan 463.23 75.40

Power Supply The Rural Electrification Project 54.45 47.34

Transportation Butajira-Hossaina-Sodo Road Upgrading

Project

57.68 51.92

The Gambia Other Approvals HIPC Debt Relief 1.27

Environment Coastal Protection Project 19.00 12.05

Other Approvals HIPC Debt Relief 17.68

Ghana Agriculture and Rural

Development

Livestock Development Project 27.74 24.61

Agriculture and Rural

Development

The Inland Valleys Rice Development Project 21.49 18.85

Multisector Economic Reform Support Operation 49.01

Multisector Institutional Support Project for Governance

and Poverty Reduction 4.21 3.77

Guinea Other Approvals HIPC Debt Relief 66.78

Agriculture and Rural

Development

Study of a Palm Oil and Rubber Development

Plan

2.63 2.49

Multisector Third Structural Adjustment Program 15.39

Social Sustainable Social Development in Upper and

Central Guinea 30.35 27.33

Other Approvals HIPC Debt Relief 22.01

Guinea-Bissau Agriculture and Rural

Development

The Fishing Sector Support Project 8.34 7.53

Agriculture and Rural

Development

The Rural Development Institutional Support

Project

1.73 1.38

Social The Rehabilitation Project 8.03 7.35

Kenya Transportation The Roads 2000-Districts Rural Rehabilitation

Project

28.00 25.13

See footnotes at end of table.
92

Table 4-7—Continued

Total AfDF and AfDB Projects and Programs Approved During 2001, by country

AfDF and AfDB Funding

Country Sector Project Total Cost

Loan & Grants

Amounts

(Million dollars)

Madagascar Other Approvals HIPC Debt Relief 15.95

Agriculture and Rural

Development Preventive Locust Control Project 17.48 8.70

Water Supply and

Sanitation

Great South Rural Area Water Supply and

Sanitation Project 11.21 9.97

Other Approvals HIPC Debt Relief 56.90

Malawi Social Humanitarian Relief Support of the Victims of

the 2001 Floods 0.50

Other Approvals HIPC Debt Relief 20.18

Social Support to Community Day Secondary Schools 20.95 18.85

Water Supply and

Sanitation

The Integrated Rural Water Supply and

Sanitation Project 13.92 12.05

Other Approvals HIPC Debt Relief 74.56

Mali Agriculture and Rural

Development

MOPTI Region Rural Development Support

Project 22.63 19.19

Agriculture and Rural

Development

Study of the Douentza District Agricultural

Development Project 0.87 0.82

Agriculture and Rural

Development

The Seed Subsector Support Project 8.23 7.13

Social Health and Social Development Support 20.95 18.85

Mauritania Industry Project to increase the Export Capacity of

Societe Nationale Industrielle Miniere 185.51 29.67

Agriculture and Rural

Development

Livestock Development and Range Management

Project 11.69 6.28

Multisector The Fiscal Adjustment Program 121.81 12.57

Social The Ten-year Education System Development

Program Support Project 12.19 10.42

Mauritius Finance Regional Line of Credit to the Mauritius

Commercial Bank Ltd 100.89

Social Support to the National Health Plan Project 25.26 14.50

Social1 Support to the National Health Plan Project 25.26 6.41

Mozambique Social Humanitarian Relief Support to the Victims of

the 2001 Floods 0.50

Agriculture and Rural

Development

Artisanal Fisheries Development Project 23.25 19.98

Industry Mineral Resources Management Capacity

Building Project 33.52 4.13

Power Supply The Rural Electrification Project 24.29 13.97

Social Education Program IV 24.12 12.57

See footnotes at end of table.
93

Table 4-7—Continued

Total AfDF and AfDB Projects and Programs Approved During 2001, by country

AfDF and AfDB Funding

Country Sector Project Total Cost

Loan & Grants

Amounts

(Million dollars)

Namibia Finance Second Line of Credit to Agribank 8.71

Transportation Northern Railway Extension Project

(Tsumeb-Ondangwa section) 60.35 25.01

Niger Agriculture and Rural

Development

The Agricultural Development Support Project in

Zinder Region 8.28 7.29

Multisector Third Structural Adjustment Program 12.57

Social Healthcare Improvement Project 22.80 20.55

Transportation Road Study II 1.82 1.73

Water Supply and

Sanitation

Rural Water Supply Program Study 1.27 1.21

Water Supply and

Sanitation

Study on Run-off Water in the Dosso and

Tillabery Regions 0.63 0.55

Other Approvals HIPC Debt Relief 56.80

Nigeria Finance Line of credit to the International Bank FSB PLC 17.54

Other Approvals

Ibadan Emergency Water Rehabilitation

Project (Reallocation) 16.44 12.62

Multisector

Governance Institutional Support Project for

Capacity Building and Poverty Reduction 6.18 5.03

Rwanda Other Approvals HIPC Debt Relief 0.15

Agriculture and Rural

Development

The Forestry Management Support Project 14.46 11.18

Multisector Public Investment Programming and

Management System Institutional Support

Project 2.76 2.51

Other Approvals HIPC Debt Relief 135.99

São Tomé and

Principe

Multisector Structural Adjustment Program III

2.01

Social Human Resources Development Support

Program 0.31 0.30

Other Approvals HIPC Debt Relief 78.68

Senegal Agriculture and Rural

Development

Anambe Basin Rural Development Project 10.87 9.02

Transportation The Diam Niadio-Mbour-Kaolack Road Project 33.68 18.85

Water Supply and

Sanitation

The Dakar City Sanitation Project 16.90 14.99

See footnotes at end of table.
94

Table 4-7—Continued

Total AfDF and AfDB Projects and Programs Approved During 2001, by country

AfDF and AfDB Funding

Country Sector Project Total Cost

Loan & Grants

Amounts

(Million dollars)

Sierra Leone Agriculture and Rural

Development

Artisanal Fisheries Development Project 14.96 12.57

Multisector Economic Rehabilitation and Recovery Program

The Institutional Support Project for Capacity

Strengthening, Governance and Poverty 12.57

Multisector Reduction 1.31 1.21

Tanzania Multisector The Second Structural Adjustment Program 50.27

Power Supply The Rural Electrification Study 2.53 2.35

Transportation

Project: The Roads Rehabilitation/Upgrading

Project 53.96 48.57

Water Supply and

Sanitation

Dar Es Salaam Water Supply and Sanitation

Project 144.36 48.07

Uganda Power Supply Bujagali Hydroelectric Power Project 573.62 54.59

Zambia Other Approvals HIPC Debt Relief 115.52

Multisector

Fiscal Transparency and Accountability Support

Program 20.36 0.67

Social Support to the National Aid Control Program 1.36 1.26

Other Approvals HIPC Debt Relief 55.84

Total2 $2,649.76 $2,110.38

1 NTF project.

2 Totals do not include multi-country programs and projects approved by the African Development Bank Group in 2000.

Source: Derived from data in African Development Bank, Annual Report 2001, pp. 138-144 and 206-230. US$ figures

calculated by USITC staff using a Unit of Account (1 UA)=US$1.25673, African Development Bank, Annual Report 2001, p. 7.

adjustment. Stand-By Arrangements and the Extended Fund Facility (EFF) are two

traditional examples of such assistance. Member countries needing a line of credit on

a short-term basis rely on the SBA; member countries needing long-term funding (at

least 3 years) rely on the EFF. In fiscal year 2001, the IMF changed the repurchase

schedule for the EFF. Payment must still start after 4.5 years, but must be repaid after 7

years instead of 10. The Supplemental Reserve Facility and the Contingent Credit Lines,

established in 1999, provide additional resources to prevent loss of market confidence

in a member country or sustain those experiencing abrupt reversals of investment

flows.24

24 IMF, Annual Report 2001, pp. 38-40.
95

The IMF has two mechanisms through which it addresses protracted payments arrears:

the HIPC Initiative and the PRGF. The World Bank and the IMF combined their

resources in 1996 to provide debt relief more effectively through the HIPC Initiative. In

the fall of 1999, the World Bank and IMF governing boards adopted the Enhanced

HIPC Initiative to shorten the time it takes for countries to qualify for relief. The PRGF is

the most recent incarnation of the IMF’s concessional lending facility (it was known as

the Structural Adjustment Facility (SAF) in 1986, and the Enhanced SAF in 1987).

Launched in November 1999, the PRGF reflects the new primary objective of the IMF’s

concessional lending arm–poverty reduction in low-income countries. Loan approvals

are linked to antipoverty programs developed by the recipient country in the Poverty

Reduction Strategy Paper.25 To qualify for support, the antipoverty programs must be

developed by member countries in collaboration with civil society and bilateral and

multilateral donors.26

As of Apr. 30, 2001, the Democratic Republic of the Congo, Liberia, Somalia, and

Sudan arrears accounted for over 97 percent (SDR 2.190 billions of SDR 2.242

billions) of outstanding debt to the IMF. These four members were no longer eligible to

receive support pursuant to Article XXVI, Section 2(a). Declarations of noncooperation

remained in effect for the Democratic Republic of the Congo (issued on February 14,

1992) and Liberia (issued on March 30, 1990) as of May 31, 2002. After a review of

Sudan’s overdue obligations, compliance with commitments, and policy performance,

the IMF terminated the suspension of Sudan’s voting rights in the IMF, with effect from

August 1, 2000.27

New Partnership for African Development

The NEPAD was launched in 2001 as a comprehensive, integrated, strategic

framework for African socioeconomic development. The NEPAD is a merger of two

continentwide economic development initiatives: the Millennium Partnership for the

African Recovery Program, and the Omega Plan. On July 3, 2001, the merger was

finalized, and the New Africa Initiative (NAI) was formed. The NAI was approved on

July 11, 2001 by the heads of state and government at the 2001 Organization for

African Unity summit. On October 23, 2001, the policy framework was finalized by

the Implementation Committee and the NEPAD (renamed from the NAI) was

formed.28 The primary goals of the NEPAD are:

S to promote accelerated growth and sustainable development;

S to eradicate widespread and severe poverty; and

S to halt the marginalisation of Africa in the globalization process.

25 [The PRSP is a tool first used by the World Bank as part of its strategy to increase the effectiveness

of financial assistance.] See discussion in section of this chapter entitled The World Bank Group. 26 IMF, Annual Report 2001, p. 38.

27 Ibid., p. 73.

28 NEPAD, “NEPAD in Brief,” found at Internet address http://www.nepad.org/about.html,

retrieved on July 16, 2002.
96

The NEPAD priorities include:

S to achieve universal primary education by 2015;

S to encourage peace, security, democracy, human rights, and good

governance;

S to promote export diversification;

S to promote and to protect African culture and the environment; and

S to develop healthcare, clean water, and sanitation systems.

At the June 2001 G-8 meeting, African leaders advocated an overall NEPAD funding

level of approximately $65 billion, deemed as necessary for Africa to attain the

estimated 7 percent annual economic growth rate needed for substantive

socioeconomic development.29 Although G-8 leaders praised NEPAD and made it a

summit priority, no definite funding was allocated.

Sources of U.S. Bilateral Economic Assistance to Sub-Saharan Africa

The major economic and trade programs supported by the U.S. Government are those

directed by the Ex-Im Bank, TDA, OPIC, and USAID. The discussion below includes

developments in U.S. trade capacity building initiatives, economic programs, and U.S.

trade assistance programs during 2001.

U.S. Government Agencies’ Trade Capacity-Building

Initiatives

A variety of U.S. Government agencies fund and implement a broad range of trade

capacity-building initiatives in SSA, aimed at assisting countries to integrate more fully

into the world trading system. Although initiatives vary, they all aim to remove

obstacles to trade and, consequently, to development. In the summer of 2001, USAID

undertook a survey of its programs and initiatives that promote trade

capacity-building in developing and transitional economies, and developed a

database from the survey results. The survey was updated in 2002.30 According to

USAID, 14 percent, or $192 million, of the $1.3 billion distributed to all developing and

transition countries during FY1999 through FY2001 went to trade capacity-building

initiatives in SSA. Of the total funding for SSA countries, 33 percent was provided in

29 EIU, “Partnership development programme just may succeed,” Apr. 19, 2002, found at Internet

address http://www.viewswire.com, retrieved on June 19, 2002. G-8 countries are Canada, France,

Germany, Italy, Japan, Russia, the United Kingdom, and the United States.

30 For additional information on the USAID Trade Capacity Building Reports and Database, see

Internet address http://www.quesdb.cdie.org/tcb/index.html, retrieved on Oct. 2, 2002.
97

FY1999, 40 percent was provided in FY2000, and 28 percent was provided in

FY2001.31

U.S. Government Agencies Involved

In developing its database, USAID surveyed numerous U.S. Government agencies that

provide trade capacity-building assistance, including USDA, Department of

Commerce, Department of Energy, Department of Justice, Department of Labor,

Department of State, Department of Transportation, Environmental Protection

Agency, Ex-Im Bank of the United States, Federal Trade Commission, Overseas Private

Investment Corporation, Peace Corps, Trade and Development Agency, and USAID.

Although U.S. assistance funding was provided through a variety of agencies with

various areas of expertise, more than 50 percent of funding for FY1999 through

FY2001 was attributed to USAID.32

Country Coverage

The Trade Capacity Building Database geographic region covering SSA includes:

Angola, Benin, Botswana, Burkina Faso, Cameroon, Democratic Republic of the

Congo, Eritrea, Ethiopia, Ghana, Guinea, Kenya, Lesotho, Liberia, Madagascar,

Malawi, Mali, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Senegal,

Seychelles, Somalia, South Africa, Swaziland, Tanzania, Togo, Uganda, Zambia,

and Zimbabwe. Sub-Saharan countries for which the database provides detailed

country breakouts include: Angola, Benin, Botswana, Cameroon, Côte d’Ivoire,

Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritius,

Mozambique, Namibia, Nigeria, Senegal, South Africa, Tanzania, Togo, Uganda,

Zambia, and Zimbabwe.33 As table 4-8 indicates, more than 75 percent of FY1999

through FY2001 funding went to six country recipients, with Ghana receiving the

largest share (30.5 percent). Analysis of FY2001 data indicates that Ghana remained

the primary recipient; Tanzania, Nigeria, Zambia, Uganda, and Mali ranked second,

third, fourth, fifth, and sixth, respectively. Although the top six countries continued to

receive over 75 percent of funding in FY2001, distribution between the countries was

more balanced.

31 Figures and analysis based on USAID summary data which include data as of June 2002 for

which a funding agency can be attributed. Because of rounding, figures may not add up to 100.

32 Figures and analysis based on USAID summary data which include data as of June 2002 for both

Funder and Implementer Only departments.

33Quantitative analysis of trade capacity building funding in the “Country Coverage” and “Types of

Trade Capacity Building Initiatives” is based on countries for which funding agency can be attributed and

category breakout figures are available as of June 2002.
98

Table 4-8

Trade Capacity-Building Initiatives: Primary Country Recipients and Percent of Total, FY1999

through FY2001, and FY20011

Country

Percent of total

(FY1999-FY2001) Country

Percent of total

(FY2001)

Ghana . . . . . . . . . . . . . . . . . . . . . 30.5 Ghana . . . . . . . . . . . . . . . . . . . . . . 18.5

Mozambique . . . . . . . . . . . . . . . . . 11.7 Tanzania . . . . . . . . . . . . . . . . . . . . . 15.4

Nigeria . . . . . . . . . . . . . . . . . . . . . 9.9 Nigeria . . . . . . . . . . . . . . . . . . . . . . 15.3

Mali . . . . . . . . . . . . . . . . . . . . . . . 9.4 Zambia . . . . . . . . . . . . . . . . . . . . . . 14.4

Zambia . . . . . . . . . . . . . . . . . . . . . 8.6 Uganda . . . . . . . . . . . . . . . . . . . . . . 8.3

Tanzania . . . . . . . . . . . . . . . . . . . . 7.0 Mali . . . . . . . . . . . . . . . . . . . . . . . . 5.9

1 Percentages based on countries for which funding agency can be attributed and category breakouts are available as

of June 2002.

Source: USAID Trade Capacity Building Database.

Types of Trade Capacity-Building Initiatives

U.S. Government agencies’ trade capacity-building initiatives cover a wide variety of

categories. The primary funding channel or category is “Trade Facilitation,”

representing 26 percent of FY1999 through FY2001 funding for SSA. Table 4-9

provides definitions and percentage of total funding. Of the 11 funding avenues

covered in FY1999 through FY2001, nearly 75 percent of funding falls into the top five

categories. Analysis of FY2001 data indicates that “Trade Facilitation” remained the

top funding avenue with “Services” ranked second, “Government and Interagency

Coordination” ranked third, “Agricultural Development” ranked fourth, and “Human

Resources and Labor Standards” ranked fifth. Table 4-10 provides illustrative

examples of U.S. trade capacity-building initiatives.34

The Export-Import Bank of the United States

The Ex-Im Bank is an independent U.S. Government agency that assists in the sale of

U.S. exports, primarily to emerging markets. This assistance is provided through loan

financing and other credit measures.

The Ex-Im Bank supported $12.5 billion of U.S. exports in FY 2001,35 and $15.5 billion

in FY 2000.36 Ex-Im Bank support to SSA–which consists of loans, guarantees, and

insurance–increased twofold to $312 million in FY 2001,37 from $136 million in FY

2000.38 The Ex-Im Bank can consider project financing in every SSA country except

Sudan.39 Project finance is available for projects that do not rely on the typical export

credit security package but require long-term cash flow financing. Traditional export

34 Further discussion and full report available at Internet address http://www.usaid.gov/

economic_growth/tradereport/index.html, retrieved on May 24, 2002.

35 Ex-Im Bank, 2001 Annual Report, p. 14.

36 Ibid., p. 6.

37 Ibid., pp. 20-23.

38 Ibid., pp. 20-23.

39 Ex-Im Bank, “Country Limitation Schedule,” found at Internet address http://www.exim.gov/

country/cntlimit.html, retrieved on May 24, 2002.
99

financing is also available in 37 SSA countries.40Countries benefitting from financing

in 2001 included Benin, Cameroon, Gambia, Ghana, Kenya, Mali, Nigeria, Senegal,

South Africa, Tanzania, Uganda, and Zimbabwe.

In addition to more traditional export financing, the Ex-Im Bank participates in

innovative methods to promote development in SSA. For example, in FY 2001, the

Ex-Im Bank authorized $5.4 million in loans to Ghana for mining improvements and

guaranteed $257.7 million for South Africa to purchase aircraft.41 As of December

14, 2001, Ex-Im Bank’s total exposure in SSA was $3.1 billion. The Democratic Republic

of the Congo (DROC) accounted for 29 percent, while Nigeria made up 19 percent,

and South Africa constituted 14 percent of total regional Ex-Im Bank exposure. Table

4-11 lists Ex-Im Bank exposure, 2001 authorizations, and availability of financing in

SSA.

U.S. Trade and Development Agency

TDA is an independent government agency that assists U.S. firms by identifying major

development projects in developing countries offering large export potential, and by

funding U.S. private sector involvement in project planning activities which, in turn,

helps to position U.S. firms for follow up activities during the implementation phase. The

TDA also promotes economic development in developing countries by funding

feasibility studies, consultancies, training programs, and other project planning

services.

The TDA’s obligations in SSA totaled $6.1 million in FY 2001 (table 4-12) and $4.2

million in FY 2000. SSA funding accounted for 11.8 percent of all TDA funding in 2001,

compared with 8.2 percent of funding in 2000.42 The time lag between funding project

planning activities and the identification of actual export sales associated with the

project vary widely.

The TDA uses its commercial experience in developing and middle income countries, in

conjunction with the State Department and the USAID, to promote U.S. foreign policy.

For example, the “Safe Skies for Africa” was started in 1998 through the TDA. This

partnership between the U.S. government and eight African countries promotes safe

and secure airlines. In 2001, TDA funded two orientation visits for 28 African aviation

officials. The participating countries were Angola, Cameroon, Cape Verde, Kenya,

Mali, Namibia, and Tanzania.43

40 Ex-Im Bank, “Ex-Im Bank Program Availability,” found at Internet address http://www.exim.gov/

africa-i/afr03.html, retrieved on June 13, 2002.

41 Ex-Im Bank, 2001 Annual Report, p. 26, 29.

42 TDA, 2001 Annual Report, pp. 31-38; and 2000 Annual Report, p. 40. Overall, TDA funding to

the Africa/Middle East region increased from $6.4 million in 2000 (12.3 percent of all 2000 funding) to

$8.8 million in 2001 (16.9 percent of all funding).

43 TDA, 2001 Annual Report, p. 13.
100

Table 4-9

Trade Capacity-Building Initiatives: Definitions and Percent of Total, FY1999 through FY20011

Category Definition

Percent of total

(FY1999-FY2001)

Trade Facilitation To lower the costs of engaging in international trade, assistance to business

support agencies and market development services, private business

organizations, information services and technology transfer . . . . . . . . . . . . . . 25.9

Agricultural

Development

To extend the benefits of trade to rural sectors, support of trade-related

aspects of agriculture technology development and agribusiness . . . . . . . . . . . 20.7

Trade-Related

Infrastructure

Development

To build the physical capacity to conduct international commerce, support for

trade-related telecommunications, marine ports, airports, and related

facilities ....................................................... 9.8

Services To help developing and transition countries engage in international services

trade, support for the service sectors in those countries . . . . . . . . . . . . . . . . . . 9.2

Human Resources and

Labor Standards

To help workers participate in the gains from trade and protect their rights in

trade related sectors, support for workforce skills development, worker rights

and labor standards, elimination of child labor exploitation and gender bias . 9.1

WTO Agreements To support countries’ efforts towards compliance and implementation,

including institution building so that developing and transition countries may

reap the benefits of membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4

Governance and

Interagency

Coordination

To make government trade programs more accountable, trade policies and

regulations more transparent, and to improve planning and communications

among government agencies working in trade policy formulation and

implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8

Competition Policy To assure that participation in international trade is conducted on an equal

footing and benefits consumers, support for developing and strengthening

antitrust laws and eliminating local monopolies ........................ 2.5

WTO Awareness and

Accession

To provide a basic understanding of the WTO Agreements, helping accession

candidates to identify changes to laws, regulations, policies, and procedures

necessary to complete negotiations on the terms of WTO membership . . . . . . . 1.6

Environment To assure that trade is environmentally neutral or positive; includes efforts to

improve environmental regulations and standards, as well as to promote

transfer of environmental technology for sustainable development . . . . . . . . . 0.6

1 Percentages based on countries for which funding agency can be attributed and category breakouts are available as of

June 2002.

Source: Definitions provided by USAID and available at http://qesdb.cdie.org/tcb/definition.html.
101

Table 4-10

Examples of Trade Capacity-Building Initiatives in sub-Saharan Africa, FY1999 through FY20011

Country/Region Category Description

COMESA Trade Facilitation Team of experts reviewed existing COMESA regime on Rules of

Origin to assess its adequacy in supporting the growth of

intra-COMESA trade

East Africa Agricultural Development Sponsored a project to reduce import costs by harmonizing trade

and transport standards for commerce between Uganda, Kenya,

and Tanzania

Ghana Agricultural Development Assisted food producers to comply with foreign phyto-sanitary

standards

Ghana Human Resources and

Labor Standards

Helped incorporate gender neutral language into labor laws and

prohibit discrimination based on sex

Ghana Human Resources and

Labor Standards

Solidarity Center promoted gender equity in the trade union

movement allowing for greater female participation at both the

union and government levels

Ghana Services Helped develop tourism-led economic growth through the private

sector by supporting preservation of natural and historical sites

Ghana WTO Agreements:

Intellectual Property Rights

Conducted seminars and training programs to assist in the

enforcement of intellectual property rights

Kenya WTO Agreements:

Intellectual Property Rights

Conducted seminars and training programs to assist in the

enforcement of intellectual property rights

Malawi Human Resources and

Labor Standards

Provided assistance increasing HIV/AIDS awareness in the

workplace and protects worker rights in trade-related industries

Mali Trade Facilitation Business development services grant program promoted crafts

suitable for export and linking artisans with overseas importers

Mozambique Human Resources and

Labor Standards

Supported trade union education and training programs to increase

and upgrade workers’ negotiating skills

Mozambique Infrastructure Development Funded the restructuring and privatization of Mozambique’s three

main railroads which link Swaziland, South Africa, Zimbabwe, and

Malawi to the Indian Ocean ports

Mozambique Trade Facilitation At the request of the Confederation of Mozambican Business

Associates, sponsored series of discussions of the opportunities and

costs of trade liberalization, with particular focus on Southern

African Development Community free trade area

Mozambique WTO Agreements:

Intellectual Property Rights

Conducted seminars and training programs to assist in the

enforcement of intellectual property rights

Nigeria Human Resources and

Labor Standards

Developed programs that reintegrate recently discharged military

combatants into civilian trade-related occupations

Nigeria Human Resources and

Labor Standards

Helped incorporate gender neutral language into labor laws and

prohibit discrimination based on sex
102

Table 4-10—Continued

Examples of Trade Capacity-Building Initiatives in sub-Saharan Africa, FY1999 through FY20011

Country/Region Category Description

Nigeria Infrastructure Development Assisted in modernizing the Murtala Mohammed International

Airport and the Nigerian aviation system, assessing Lagos port and

privatization services, implementing an oversight system for

maintenance, and privatizing of the railways

South Africa Human Resources and

Labor Standards

Developed programs that reintegrate recently discharged military

combatants into civilian trade-related occupations

South Africa Services Developed and applied workforce diagnostic tool, “Workforce

Development: Skills for Competitiveness,” which comprehensively

examines training requirements and available skills in the labor

force

Sub-Saharan Africa Competition Policy Hosted internships and conferences for antimonopoly officials

Sub-Saharan Africa Environment Provided support for sustainable, environmentally-based enterprises

including nature tourism, bio-prospecting and sustainable forest

management and timber harvesting

Sub-Saharan Africa Financial Sector

Development

Invested in OPIC Modern Africa fund which furthers trade

integration with the rest of the world

Sub-Saharan Africa

(e.g. Benin, Cote d’Ivoire,

Guinea, Mali,

Madagascar,

Mozambique, Rwanda,

Uganda)

Infrastructure Development Funded the Leland Initiative which provided technical and financial

support for the expansion of Internet connectivity and helped

increase the availability of trade information in the areas of new

market development, investment, and trade promotion

Sub-Saharan Africa Infrastructure Development “Safe Skies for Africa” initiative to promote aviation safety and

security

Sub-Saharan Africa

(e.g. Kenya, Mozambique,

Nigeria, South Africa,

Uganda)

WTO Agreements:

Technical Barriers to Trade

Assisted countries to participate in the development of standards

and to disseminate information on standards to facilitate market

access

Sub-Saharan Africa WTO Agreements: Customs

Valuation Methods

Provided technical assistance to expedite the movement of goods

across borders and in complying with WTO customs valuation

agreement; and to assist regional trade organizations to improve

procedures and to introduce regional customs-bond guarantee

scheme

Sub-Saharan Africa WTO Agreements: Sanitary

and Phyto-Sanitary

Measures

Helped administer the founding congress of the African Seed Trade

Association to provide mechanism for communication between

African countries facilitating regional harmonization of policies,

liberalization of national markets, and integration into international

markets

Sub-Saharan Africa

(e.g. Benin, Ghana, Kenya,

Madagascar,

Mozambique, Namibia,

Senegal, Zambia,

ECOWAS)

WTO Awareness and

Accession

Conducted trade policy workshops on the benefits of trade reform

and open markets; and clarified of general rights and obligations

under the WTO and current issues before the WTO

Tanzania WTO Agreements: Customs

Valuation Methods

Assisted in reducing the number of steps and amount of time

required of importers in obtaining customs clearances
103

Table 4-10—Continued

Examples of Trade Capacity-Building Initiatives in sub-Saharan Africa, FY1999 through FY20011

Country/Region Category Description

Uganda Trade Facilitation Competitive Enterprise and Trade Expansion Project helped the

coffee, fish, and cotton industries to improve their export

competitiveness and increase foreign exchange earnings

Zambia Trade Facilitation Assisted Zambia Investment Center to upgrade its website and to

establish an investor tracking system

Source: United States Government Initiatives to Build Trade Related Capacity in Developing and Transition Countries (USAID,

2001).

Overseas Private Investment Corporation

OPIC is a self-sustaining U.S. Government agency that provides investment funds,

project finance, and political risk insurance to U.S. businesses investing in developing

nations and emerging markets around the world. OPIC focuses its efforts in Africa on

supporting small- and medium-sized businesses.

In 2001, OPIC’s programs were available for 40 of the 48 SSA countries.44 OPIC

supported four privately managed funds that invest in SSA: the $350 million Africa

Millennium Fund, which replaces the Africa Infrastructure Fund; the $120 million ZM

Africa Investment Fund, L.P. for Southern Africa; the $105 million Modern Africa

Growth and Investment Fund; and the $25 million Africa Growth Fund.45 OPIC also

committed to providing insurance for three investment projects in SSA: $25 million for

oil and gas field expansion, development, and production in Côte d’Ivoire; $4.77

million for import and marketing of cement in Nigeria; and more than $1.5 million for

agribusiness in Zambia. In addition, OPIC committed to providing finance for two

projects: $0.2 million for drilling potable water wells in Kenya, and $0.3 million for

assembly and sale of solar ovens in Uganda.46

44 OPIC, 2001 Annual Report, p. 30.

45 OPIC, OPIC Direct Investment Funds List, as of Nov. 6, 2001, found at Internet address

http://www.opic.gov/InvestmentFunds/fundlist.htm, retrieved on June 7, 2002.

46 OPIC, 2001 Annual Report, p. 25.
104

Table 4-11

Sub-Saharan Africa: Export-Import Bank exposure, authorizations, and availability2 for further

support as of December 14, 2001

Country Exposure 2000 Authorizations Availability

Angola $141,232,855 NA ......................... Benin 10,812,497 $10,662497 P.A. ........................... Botswana ....................... Yes

Burkina Faso ..................... P.A.

Burundi ......................... NA

Cameroon 47,628,784 1,310,930 P.A. ....................... Cape Verde ..................... P.A.

Central African Republic 8,710,258 NA ............ Chad ........................... P.A.

Comoros ........................ NA

Congo (ROC) .................... P.A.

Congo (DROC) 921,830,192 NA ...................

Côte d’Ivoire 164,649,554 P.A. ..................... Djibouti ......................... P.A.

Equatorial Guinea ................. NA

Eritrea .......................... NA

Ethiopia ......................... NA

Gabon 61,203,980 P.A. ......................... The Gambia 184,056 210,350 P.A. ..................... Ghana 157,800,151 15,006,148 P.A. ......................... Guinea 7,761,977 P.A. .........................

Guinea-Bissau .................... P.A.

Kenya 113,041,466 2,731,304 P.A. ..........................

Lesotho ......................... Yes

Liberia 5,980,110 NA .......................... Madagascar 38,318,462 P.A. .....................

Malawi 1,271 P.A. ......................... Mali 2,716,474 2,716,474 P.A. ............................

Mauritania 6,598,057 P.A. ...................... Mauritius 28,276,955 Yes ........................

Mozambique 48,156,266 P.A. ..................... Namibia 89,528,788 Yes ........................ Niger 7,002,759 P.A. ..........................

Nigeria 601,636,742 13,958,002 P.A. ......................... Rwanda 559,569 NA .........................

São Tome and Principè ............. P.A.

Senegal 7,819,754 3,010,584 P.A. ......................... Seychelles 70,834 P.A. ....................... Sierra Leone 1,740,984 NA .....................

Somalia ......................... NA

South Africa 445,300,018 258,235,789 Yes ..................... Sudan 28,246,331 L .......................... Swaziland ....................... Yes

Tanzania 21,868,528 326,824 P.A. ........................

Togo 2,820 P.A. ........................... Uganda 2,407,512 1,665,133 P.A. ......................... Zambia 147,156,683 P.A. ......................... Zimbabwe 65,959,481 1,904,204 ....................... NA

Total $3,184,204,367 $311,738,239 ..........................

1 Exposure is defined as authorization of all forms of support minus repayment and cancellations.

2 Yes = Available for all six types of financing: short, medium, and long term for both private and public buyers of U.S. goods

and services; NA =country is open for specifically financed transactions but short-term, and long-term sectors are not open.; P.A. =

Partially available for some of the six types of financing; L = Support is legally prohibited.

Source: Ex-Im Bank, 2001 Annual Report, pp. 20-23 and CLS
105

Table 4-12

TDA Program Activities in Africa, FY 2001

(Funds obligated

Country Title Activity dollars)

Angola Luanda Aiport Upgrade Feasibility Study 322,150

Angola Port of Cabinda Expansion Desk Study 2,500

Angola Port of Cabinda Expansion Feasibility Study 374,850

Cameroon Port of Limbe Project Phase I Assessment Desk Study 2,500

Cameroon Port of Limbe Project - Phase II Feasibility Study 300,375

Cameroon Codilait S.A. Beverage Packaging Feasibility Study 172,500

Cameroon Camlait S.A. Beverage Packaging Feasibility Study 172,500

Cameroon Nickel-Cobalt Mining Desk Study 4,750

Ghana Poultry Processing Facility Desk Study 2,500

Gabon Poultry Processing Facility Feasibility Study 192,825

Gabon Road Infrastructure Definitional Mission 24,923

Ghana Sunyani Municipal Water Desk Study 2,500

Ghana Sunyani Water Treatment and Supply Feasibility Study 365,071

Ghana Government Wide Area Network Definitional Mission 24,518

Ghana Sogakope-Lome Water Supply Definitional Mission 20,000

Guinea Hydroelectric Plants Feasibility Study 140,044

Kenya Power Sector Definitional Mission 25,000

Kenya Power Transmission Feasibility Study 498,804

Mali Bamako-Senou Airport Expansion Technical Assistance 145,000

Mauritius Information Technology Sector Definitional Mission 24,815

Nigeria Agribusiness Sector Definitional Mission 24,946

Nigeria Bauchi State Meat Processing Plant Feasibility Study 70,150

Nigeria Imo-Abia Waste Management Desk Study 2,500

Nigeria Imo-Abia Waste Management Feasibility Study 238,200

Nigeria Bulk Commodities Transit Terminal Desk Study 2,500

Nigeria Independent Power Production Definitional Mission 29,950

Nigeria Ogun State Sugar Factory Desk Study 2,500

South Africa Portnet/ACSA Visit Orientation Visit 846

South Africa Road Radio Project Desk Study 4,685

South Africa La Mercy Airport Intermodal Desk Study 2,500

South Africa La Mercy Airport Intermodal Feasibility Study 291,200

South Africa Point Marine Project Desk Study 2,500

South Africa Point Marine Project Technical Assistance 100,00

South Africa South Africa Tire Recycling Desk Study 2,500

South Africa Integrated Waste Management Desk Study 2,500

South Africa ACSA Noise Abatement Technical Assistance 291,000

South Africa Richards Bay Fluidized Bed Power Desk Study 3,940

Tanzania Heart Institute Desk Study 2,500

Uganda IFC Rural Electrification Technical Assistance 200,553

Uganda Entebbe Airport Development Desk Study 2,500

Uganda Entebbe Airport Development Feasibility Study 287,680

Zambia Kansanshi Power Transmission Feasibility Study 287,970

Zambia Mufulira Deep Mining Feasibility Study 248,540

Africa/ME Regional Project Analyst Technical Assistance 28,579

Africa/ME Regional Maghreb Trade and Investment Conference Technical Symposium 50,032

Africa/ME Regional Benin/Cameroon Agribusiness/ Food Processing Definitional Mission 24,990

Africa/ME Regional Sake Skies Symposium Orientation Visit 73,816

Africa/ME Regional Gaza-Ashkelon Passenger and Freight Rail Link Desk Study 2,500

Africa/ME Regional North African/Middle East Aviation Sector Desk Study 5,000

Africa/ME Regional CCA Africa Major Project Conference Technical Symposium 309,908

Africa/ME Regional Safe Skies II Orientation Visit 136,784

Africa/ME Regional Middle East Petrochemicals Definitional Mission 29,951

Africa/ME Regional North Africa Interconnection Reinforcement Desk Study 5,000

Africa/ME Regional North Africa Interconnection Reinforcement Feasibility Study 397,896

Africa Regional Port Orientation Visit Orientation 143,943

Total $6,128,684

Source: U.S. Trade and Development Agency, 2001 Annual Report, found at Internet address http://www.tda.gov/abouttda/report2001/pabr_africa-me.html, retrieved May 2002.
106

U.S. Agency for International Development

USAID implements U.S. foreign economic assistance programs offered by the U.S.

Government. Issues addressed by these programs include sustainable broad-based

economic development and the promotion of democratic ideals and values. USAID’s

program and management challenges in SSA include responses to the HIV/AIDS

pandemic, as well as staff and operating expense constraints.47

In FY 2001, USAID obligations for SSA totaled $1.3 billion. USAID’s assistance

consisted of $344 million for child survival and disease programs; $424.1 million for

development assistance programs; $466.9 million for Public Law 480, Title II, which

provides food assistance and poverty alleviation through nonprofit, charitable

organizations; and $85.8 million in economic support funds.48 Table 4-13 contains

additional information on USAID projects in SSA.

Regional programs offered by USAID include: the Africa Regional Program, the Great

Lakes Justice Initiative (GLJI), the Greater Horn of Africa Initiative (GHAI), the Initiative

for Southern Africa (ISA), the Regional Economic Development Service for East and

Southern Africa (REDSO/ESA), the West Africa Regional Program (WARP), and the

Africa Trade and Investment Policy (ATRIP) Program. The Africa Regional Program,

with funding of $191.2 million in FY 2001 provides Africa-specific technical expertise to

support bilateral program development, address transnational issues, and support

other USAID efforts when a geographic focus is necessary.49 The GLJI seeks to

strengthen national and local judicial systems and to promote processes for

reconciliation in the Great Lakes region, which includes Rwanda, Burundi, and DROC.

The United States is currently promoting the involvement of other bilateral and

multilateral donors in these efforts.50 The GHAI was launched in 1994 to address the

recurring cycle of crisis, instability, and famine in the Greater Horn region. In 2001, the

program focused on strengthening African regional capacity to improve food security

and manage conflict.51 The REDSO/ESA program supports U.S. national security

goals to foster regional stability, prevent conflict, and promote free and open

markets.52

The ISA is the USAID’s regional approach to helping the countries in the southern

Africa region achieve equitable, sustainable economic growth, and successful

democracies. ISA programs complement and support broader U.S. foreign policy

47 USAID, “Africa Overview,” found at Internet address http://www.usaid.gov/country/afr.html,

retrieved on June 4, 2001.

48 USAID, “FY 2003 Congressional Budget Justification,” found at Internet address

http://www.usaid.gov/pubs/cbj2003/fy03_table4b.html, retrieved on June 13, 2002.

49 USAID, FY 2003 Congressional Budget Justification, found at Internet address

http://www.usaid.gov/pubs/cbj2003, retrieved on June 13, 2002.

50 USAID, “Great Lakes Justice Initiative,” found at Internet address http://www.usaid.gov/

pubs/bj2001/afr/glji/, retrieved on June 13, 2002.

51 USAID, “Greater Horn of Africa Initiative,” found at Internet address

http://www.usaid.gov/regions.afr.ghai/, retrieved on July 15, 2002.

52 USAID, “Regional Economic Development Services for East and Southern Africa,” found at

Internet address http://www.usaid.gov/country/afr/redso/, retrieved on June 13, 2002.
107

Table 4-13

USAID funds allocated for sub-Saharan Africa,1 by major project categories, FY 2001

(Million dollars)

Country

Development

Fund for Africa

Child Survival

and Disease

P.L. 480

Title II

P.L. 480

Title III

Economic

Support

Funds Total

Angola . . . . . . . . . . . . . . . . . . . . . 3.5 6.4 7.8 - 5.0 22.7

Benin . . . . . . . . . . . . . . . . . . . . . . . 4.6 10.0 4.2 - - 18.9

DROC . . . . . . . . . . . . . . . . . . . . . . 3.1 9.8 - - - 12.9

Eritrea . . . . . . . . . . . . . . . . . . . . . . 4.6 4.7 - - - 9.3

Ethiopia . . . . . . . . . . . . . . . . . . . . . 15.7 24.7 38.3 - - 78.7

Ghana . . . . . . . . . . . . . . . . . . . . . 20.9 15.3 16.3 - - 52.4

Guinea . . . . . . . . . . . . . . . . . . . . . 13.1 9.6 3.9 - - 26.6

Kenya . . . . . . . . . . . . . . . . . . . . . . 22.6 9.3 7.3 - - 39.2

Liberia . . . . . . . . . . . . . . . . . . . . . . 7.8 1.9 4.4 - - 14.1

Madagascar . . . . . . . . . . . . . . . . . 16.9 4.2 7.2 - - 28.3

Malawi . . . . . . . . . . . . . . . . . . . . . 17.7 11.5 3.0 - - 32.2

Mali . . . . . . . . . . . . . . . . . . . . . . . 25.7 12.3 1.1 - - 39.1

Mozambique . . . . . . . . . . . . . . . . . 32.7 12.9 19.3 - - 64.9

Namibia . . . . . . . . . . . . . . . . . . . . 6.8 3.5 - - - 10.3

Nigeria . . . . . . . . . . . . . . . . . . . . . 32.8 22.2 - - 25.0 80.0

Rwanda . . . . . . . . . . . . . . . . . . . . . 8.5 6.3 10.1 - - 24.9

Senegal . . . . . . . . . . . . . . . . . . . . . 16.5 7.0 - - - 23.4

Sierra Leone . . . . . . . . . . . . . . . . . 3.1 1.9 - - - 5.0

South Africa . . . . . . . . . . . . . . . . . 39.1 15.4 - - - 54.5

Tanzania . . . . . . . . . . . . . . . . . . . . 15.8 10.3 - - - 26.1

Uganda . . . . . . . . . . . . . . . . . . . . . 31.1 22.7 9.3 - - 63.1

Zambia . . . . . . . . . . . . . . . . . . . . . 13.7 21.4 - - - 35.0

Zimbabwe . . . . . . . . . . . . . . . . . . . 7.7 6.0 - - - 13.7

Total . . . . . . . . . . . . . . . . . . . 364.1 249.1 132.2 0.0 30.0 775.4

1 Only sub-Saharan African countries receiving direct USAID bilateral assistance are included in this table. These and other

sub-Saharan African countries may receive USAID assistance indirectly through regional programs.

Source: Compiled from USAID data available at Internet address http://www.usaid.gov/pubs/bj2001/afr. retrieved May 28, 2002.

initiatives, including efforts by the Department of Commerce to create export

opportunities for U.S. firms, efforts by the USTR to negotiate a Trade and Investment

Framework Agreement with the Southern Africa Development Community (SADC),53

and the U.S. Secretary of State’s annual U.S.-SADC Forum.54

The WARP supports U.S. national interests through its goals of regional political

stability and economic prosperity. The program coordinates current USAID regional

activities in West Africa.55 The ATRIP is one of the main financial support and technical

assistance components offered under AGOA. The ATRIP program provides technical

53 SADC is discussed in more detail in chapter 3.

54 USAID, “Initiative for Southern Africa,” found at Internet address http://www.usaid.gov/

country/afr/isa, retrieved on July 10, 2002.

55 USAID, “West Africa Regional Program,” found at Internet address http://www.usaid.gov/

country/aft/wafr/, retrieved on July 8, 2002.
108

assistance and training to create the environment for trade and private investment. The

program also assists in promoting business linkages between U.S. and African

business associations and business networks. Total ATRIP funding for fiscal year 2002

was $22 million. USAID planned funding for the ATRIP in fiscal year 2001 was

approximately $22 million, although as of June 2002, total fiscal year 2001 funding

was unavailable.56

Other trade-related initiatives

Generalized System of Preferences Programs

The GSP is a regime of trade preferences granted by the developed countries to

developing countries. The United Nations Conference on Trade and Development

initially proposed GSP in the early 1960s during the Kennedy Round, but it was evident

that the GSP program would violate most-favored- nation status, a requirement of the

GATT. Temporary special waivers for GSP programs, first approved by GATT

members in 1971, were made permanent with the 1979 GATT agreement on

“Differential and More Favourable Treatment, Reciprocity and Fuller Participation of

Developing Countries,” better known as the “Enabling Clause,” negotiated under the

Tokyo Round agreements. As of mid-2002, 16 different GSP programs were in

operation, carried out by 28 developed countries.57 Under a GSP program, a

developed nation voluntarily reduces tariffs on selected imports from developing

countries. This preference is granted on a nonreciprocal basis; the beneficiary country

is not required to concede additional market access in return. There is no legal

obligation for a country to provide GSP trade benefits, and any country injured

because of exclusion from a GSP program has no available recourse in international

law.58

The Enabling Clause did not establish guidelines for GSP implementation by donor

countries. Consequently, each country designs and maintains its own GSP program

with regard to product coverage and beneficiary eligibility. Each donor nation also

determines its “graduation” criteria, the point at which a developing nation is no

longer in need of any special trade status. Economic eligibility criteria usually include

level of economic development, lack of affiliation with cartels, progress toward

economic liberalization, and the degree to which other developed nations give

preferences to the country in question. Other factors can include affiliation with

56 USAID, “Africa Trade and Investment Policy (ATRIP) Program,” found at Internet address

http://www.usaid.gov/regions/afr/atrip-overview.html, retrieved on June 11, 2002.

57 The nations that grant preferences under the Enabling Clause are Australia, Belarus, Bulgaria,

Canada, the Czech Republic, the EU member nations, Hungary, Japan, New Zealand, Norway, Poland,

Russia, the Slovak Republic, Switzerland, and the United States.

58 Çaglar Özden and Eric Reinhardt, “The Perversity of Preferences: GSP and Developing Country

Trade Policies, 1976-2000,” p. 5, found at Internet address http://www.eserwww.service.emory.edu/

~erein/research/gsp2.pdf, retrieved on Oct. 2, 2002.
109

terrorist groups, level of democracy, environmental standards, or human or labor

rights records. Imports of items considered as sensitive products by the donor country

are generally excluded from GSP programs.59 So-called escape clauses may also be

included, generally setting a limit to the amount of any good that a country may export

to a donor nation without losing its GSP eligibility. Although most imports from

developing countries are GSP-eligible, some importers do not apply for the lower GSP

tariffs. Various cited reasons for low utilization rates include lack of exporter

knowledge, administrative complexity, strict rules-of-origin criteria, and lack of

technical capacity.

The United States established its GSP program in 1976. As of mid-2002, the United

States granted preferences to 147 developing nations including most of the SSA

countries. The total value of imports receiving preferences under the U.S. GSP

program in 1997 was $14 billion. The utilization rate60 was 61.1 percent for all

beneficiary countries, and U.S. tariff revenue foregone was estimated at

approximately $242 million. Changes made to the U.S. GSP program in 1997

substantially increased product coverage for imports from LDCs. Product coverage

increased to nearly 100 percent for agricultural products from LDCs and to more than

60 percent for industrial goods. In October 2000, the United States incorporated the

AGOA program into its GSP program, removing almost all tariffs from SSA

beneficiary country imports. (See chapter 2.)

Japan’s GSP program began in 1971,61 and as of mid-2002, 163 countries received

preferences. The total value of imports receiving preferences under Japan’s GSP

program was $15 billion in 1997. Japan’s GSP utilization rate was 42.5 percent for all

beneficiary countries. An estimated $353 million in tariff revenue was foregone.

Industrial imports to Japan are subject to ceilings under its GSP program. Products can

only be imported at the preferential rate until the ceilings are reached, after which the

MFN rate applies. In 1999, Japan began to provide for graduation of selected

products.62

Canada initiated its GSP program in 1974,63 and as of mid-2002, granted

preferences to 181 developing nations. GSP program imports into Canada

represented $2.9 billion in 1997. The utilization rate was 65.9 percent for all

beneficiary countries. Tariff revenue forgone was estimated at approximately $52.6

million.64

59 Usually agriculture, textiles, clothing, and fish products. See “Participation of Developing

Countries in World Trade: Overview of Major Trends and Underlying Factors. A note by the Secretariat,”

found at Internet address http://www.unctad.org/en/docs/poitcdtsbm52.en.pdf, retrieved on Oct. 2,

2002.

60Utilization rate is defined as the ratio between imports receiving preference and covered imports.

Source for all cited utilization rates is UNCTAD, “Quantifying the Benefits Obtained by Developing

Countries From the Generalized System of Preferences: Note by the UNCTAD Secretariat,” Oct. 7, 1999,

p. 6-7, found at Internet address http://www.unctad.org/en/docs/poitcdtsbm52.en.pdf, retrieved on

Sept. 30, 2002.

61 Ibid., p. 4.

62 Ibid., p. 4.

63 UNCTAD, Handbook on the Scheme of Japan 2000/2001, found at Internet address

http://www.unctad.org/en/docs/poitcdtsbm42r1.en.pdf, retrieved on Oct. 2, 2002.

64 UNCTAD,“Quantifying the Benefits Obtained by Developing Countries From the Generalized

System of Preferences: Note by the UNCTAD Secretariat,” Oct. 7, 1999, p. 9, found at Internet address

http://www.unctad.org/en/docs/poitcdtsbm52.en.pdf, retrieved on Sept. 30, 2002.
110

The EU implemented its GSP program in 1971, and as of mid-2002 granted

preferences to 167 countries. In 1997, the total value of imports receiving preferences

was $65 billion, 22 percent of the value of total imports from GSP beneficiaries.65 The

utilization rate66 was 55.9 percent for all beneficiary countries. Total tariff revenue

foregone was estimated at approximately $1.6 billion. In March 2001, the EU

implemented the “Everything But Arms” (EBA) initiative, removing duties from almost

all imports from least-developed countries (LDCs). (The EBA initiative is discribed in the

next section.) In June 2001, in an effort to simplify its GSP program, the EU divided

eligible imports into two categories, sensitive and nonsensitive, replacing the four it

used previously.

The EU incorporated the “Everything But Arms” (EBA) initiative into its GSP program on

March 5, 2001. This program grants duty-free entry to all imports from the 49 LDCs67

excluding armaments.68 The EU will gradually eliminate duties on three highly

sensitive products in order to provide an adjustment period for European producers in

these sectors. Reduction of customs duties on fresh bananas commenced on Jan. 1,

2002, and the duties will be eliminated by 2006.69 Duties on rice and sugar will be

phased out between 2006 and 2009.70 To compensate for the time lag in the latter two

products, the EU will establish a tariff-free quota for the products, which will increase

by 15 percent per year until the tariffs are eliminated. The initiative contains a

safeguard clause, which allows the European Commission to rescind preferences

“where imports...massively exceed the usual levels of production and export

capacity”71 of the LDCs. The initiative is noncontractual, and has no date of expiration

or required renewal process.

As most imports from LDCs have already been accorded duty-free preferences for

most products under GSP and other EU preference programs, the main impact of EBA

is the liberalization of certain European agricultural markets, particularly ones

covered under the Common Agricultural Policy. The market impact on the EU, at least

in the short-term, is likely to be insignificant; LDC exports account for only 1 percent of

EU imports.72 The potential impact on the agricultural sectors of the LDCs may be far

65 UNCTAD, Handbook on the Scheme of Canada, found at Internet address

http://www.unctad.org/en/docs/poitcdtsbm66.en.pdf, retrieved on Oct. 2, 2002.

66 UNCTAD, “Quantifying the Benefits Obtained by Developing Countries From the Generalized

System of Preferences: Note by the UNCTAD Secretariat,” Oct. 7, 1999, p. 10, found at Internet address

http://www.unctad.org/en/docs/poitcdtsbm52.en.pdf, retrieved on Sept. 30, 2002.

67 As classified by the United Nations.

68 “Armaments” are all imports included in chapter 93 of the Harmonized System of Trade

Classification.

69 Customs duties on fresh bananas will be reduced by 20 percent per year beginning on Jan. 1,

2002 and will be eliminated by Jan. 1, 2006. 70 Customs duties on rice will be reduced by 20 percent on Sept. 1, 2006; by 50 percent on Sept. 1,

2007; by 80 percent on Sept. 1, 2008; and eliminated by Sept. 1, 2009. Customs duties on sugar will be

reduced by 20 percent on July 1, 2006; by 50 percent on July 1, 2007; by 80 percent on July 1, 2008; and

eliminated by July 1, 2009.

71 Official Journal of the European Communities, “Council Regulation (EC) No. 2501/2001,”found

at Internet address http://europa.eu.int/eur-lex/pri/en/oj/dat/2001/1_34620011231 en

00010059.pdf, retrieved on Oct. 17, 2002.

72 Solagral (France), “The ÔEverything But Arms’ Initiative: What are its consequences for the RESAL

countries?” June 2001, found at Internet address http://www.europa.eu.int/comm/europeaid/

projects/resal/Download/report/mission/coord/0301tncoordebaeng.pdf, retrieved on Sept. 30,

2002.
111

greater. Currently, over 50 percent of LDC agricultural exports are destined for the

EU.73 The short-term impact of the initiative on the LDCs is likely to be small because of

production capacity constraints.74Another cited goal of the initiative was that it would

serve as “concrete indication of EU political goodwill towards the LDCs in the context of

preparations for the next round of WTO negotiations.”75

Medium- and long-term impact will depend, in part, on the degree to which the EBA

initiative encourages LDCs to redirect their exports to Europe, to increase export

volume, and to establish additional export structures.76 Concern has been expressed,

however, that the EU’s June 2001 update to its GSP program will diminish EBA’s

relative advantage to LDCs by further reducing tariff restrictions on imports from all

GSP-eligible countries.77

73 Ibid.

74 Ibid.

75 ICTSD BridgesWeekly,“One Eye on the New Round, EU Woos Developing Countries,” vol. 5, No.

7. February 2001, found at Internet address http://www.ictsd.org/html/weekly/ story1.27-02-01.htm,

retrieved on Sept. 30, 2002. 76 Solagral (France), “The ÔEverything But Arms’ Initiative: What are its consequences for the RESAL

countries?” June 2001, found at Internet address http://www.europa.eu.int/comm/europeaid/

projects/resal/Download/report/mission/coord/0301tncoordebaeng.pdf, retrieved on Sept. 30,

2002.

77 Bridges Weekly Trade News Digest, “New GSP Adopted by European Union,”vol. 5, No. 42,

found at Internet address http://www.newsbulletin.org/bulletins/getbulletin.CFM?SID=#New %20

GSP%20Adopted%20by%20European%20Union, retrieved on Oct. 2, 2002.

113

CHAPTER 5

Industry Sector Profiles

This chapter provides information and analysis on production, trade, and investment

for various industry sectors in sub-Saharan Africa. The sectors include agriculture,

fisheries, and forest products; chemicals; petroleum and energy-related products;

minerals and metals; and textiles and apparel.1 These sectors comprise the major items

of trade between the United States and the SSA region. Each sector discussion

provides industry background information, including sector production, industry and

sector issues, and economic and trade policy developments. Trade information is also

provided, including trade between the United States and SSA as well as global SSA

trade. Investment information includes major SSA sector policy developments, U.S.

foreign direct investment position in SSA, major investments, investment issues, and

multilateral lending. The information and analysis generally focuses on developments

that occurred during 2001.2

Data on SSA industry sector production were compiled from numerous sources,

including the U.S. Department of Commerce, the U.S. Department of Energy, the U.S.

Geological Survey, the Central Intelligence Agency, the United Nations, various U.S.

and international industry trade associations, and various industry-specific statistical

publications. Data on SSA global trade were compiled from statistics of the United

Nations. Data on U.S.-SSA trade were compiled from official statistics of the U.S.

Department of Commerce. Data on U.S. foreign direct investment in SSA were

compiled from statistics of the U.S. Department of Commerce.

1 The sectors generally are in the order of the Harmonized Tariff Schedules.

2 In some cases, the latest available data are for 2000.

115

S The mix of sector production varied by country. In Nigeria,

crops (mainly cassava, yams, oil palm fruit, and sorghum)

comprised 79 percent (by weight) of sector production,

and in South Africa, crops (principally sugar cane, maize,

alfalfa, and wheat) comprised 77 percent of sector

production. In Ethiopia, forest products comprised 59

percent of sector production.5

Industry and Sector Issues

S Arable crop land in the SSA generally is relatively low in

quality. SSA agricultural production is often constrained by

the inability of farmers to obtain necessary inputs at

affordable prices. Because much of the remaining land in

SSA is marginal for agriculture, opportunities to increase

agricultural output through expansion of arable lands are

limited.6 In addition, SSA agriculture has been plagued by

poor policies, institutional failures, heavy state control,

inadequate infrastructure, and antiquated farming

methods.

S Food security continues to be a concern in SSA, partly due

to continuing political unrest in some countries.7 In 2001,

337 million of SSA’s total 589 million people were

inadequately fed. The number of hungry people in SSA is

projected to increase over the next decade to 367 million.8

S Food shortages currently exist in several southern SSA

countries (mainly Zambia, Malawi, and Zimbabwe) due to

low rainfall, and the resulting higher price of corn has

limited access to food for a large segment of the

population within drought-stricken areas. SADC estimates

an overall corn deficit of more than 3 million metric tons,

and it is estimated that food security will continue to

worsen through early 2003. Inadequate transportation

infrastructure often hampers efforts to transport food from

areas of plentiful harvest to drought-stricken regions.9

S Cereal food aid pledges to SSA totaled about 2.6 million

metric tons for marketing year 2000/2001. Principal

recipients included Ethiopia (32 percent of the total), Kenya

(12 percent), and Eritrea (9 percent). Principal donors

included the World Food Program of the United Nations

(49 percent of the total), the United States (35 percent),

and the EU (12 percent).10

S In Zimbabwe, the redistribution of commercial farm land

has exacerbated the impact of drought. In addition to its

short-term adverse impact on production, sources

estimate that the redistribution stands to reduce

economies of scale for some crops.11

S Climate change resulting from global warming is expected

to reduce agricultural productivity in SSA through greater

rainfall variability. This likely will increase food insecurity and

the incidence of certain diseases, such as malaria.12

S SSA agricultural research generally lags behind the world.

However, many SSA countries are recognizing the potential

for genetically modified (GM) products and genetically

improved varieties. South Africa has adopted an ambitious

strategy to develop its agricultural biotechnology industry,

has introduced GM soya, white maize, and cotton, and now

has the capacity to produce GM crops specifically tailored

to local growing conditions. Kenya has introduced GM

sweet potatoes and cotton. New, high-yield, high-protein,

rice varieties are to be introduced in seven SSA pilot

countries.13

agriculture, fisheries, and

BACKGROUND

1

forest products

Source: United Nations, FAOSTAT database.

Share of total (percent)

Source: United Nations, FAOSTAT database.

SSA sector production, by country, 2000

(1.2 billion metric tons)

SSA sector production, by product, 2000

(1.2 billion metric tons)

0 10 20 30 40 50 60 70

Crops

Forest Products

Livestock

Fish

South Africa 12%

All other

46%

Nigeria 20%

Ethiopia 9%

DROC 7% Uganda 6%

S The agriculture, fisheries, and forest products sector is a

major component of the SSA economy. In 1999, agriculture

contributed 18 percent of SSA GDP, 70 percent of

employment, and 40 percent of exports.2

S During the period 1996-2000, sector production was

relatively flat, increasing at an average annual rate of less

than 1 percent, by quantity. Production was highly

concentrated; the top two countries, Nigeria and South

Africa, together accounted for one-third and the top five

accounted for more than one-half of the total quantity of

SSA production in 2000.3

S Agricultural crops, by far, accounted for the largest share

of sector production, nearly two-thirds of the total, by

quantity, in 2000. The leading crops produced in SSA

included cassava, cereals, sugar cane, and fruit. Forest

products production was the second leading sector

category, accounting for about one-third of the total. Fuel

wood comprised 90 percent of forest products production

in SSA. Livestock and fishery products production were very

small parts of sector production.4

Industry Overview

64

33

2

1
116

BACKGROUND-Continued

S The HIV/AIDS pandemic is adversely affecting SSA. The

prevalence of this and other diseases, such as

tuberculosis, diarrhea, and respiratory infections, directly

undermines efforts to improve agricultural productivity by

reducing the availability and quality of labor and by

imposing additional cost burdens on family members.

Indirectly, HIV/AIDS will adversely affect nutritional intake

in those countries that switch to less labor-intensive, but

less nutritious crops, such as corn to cassava, in

response to labor shortages.14

S Low prices for major SSA export commodities have

adversely affected several SSA countries. Low coffee

prices have discouraged production in Côte d’Ivoire,

Kenya, Uganda, and Ethiopia, with Kenyan production

dropping by 50 percent in 2001. Crops have been

abandoned in Kenya and Côte d’Ivoire, and the plunge has

severely reduced the foreign exchange reserve of Ethiopia,

which depends on coffee exports for 60 percent of this

reserve.15

S Production methods for certain important SSA

commodities, mainly coffee and cocoa, have come under

criticism in major export markets. Environmental

production practices and prices paid to farmers are of

issue in the production of coffee, and cocoa production

has come under increasing scrutiny in world markets

because of child-labor practices.16

Economic and Trade Policy Developments

S Some SSA countries have begun relaxing government

control of their agriculture industries. In October 2000,

Ghana partially privatized the external marketing of its

cocoa production, and in 2002, Kenya partially privatized

its coffee industry and its largest sugar company.17

S A dependence on a narrow range of export commodities

places many SSA countries at the mercy of fluctuations in

world commodity prices. In response to low commodity

prices, Ghana has initiated price-driven incentive policies

to encourage cocoa production, and Côte d’Ivoire will

subsidize its coffee producers.18

S There is increasing concern among SSA countries

regarding GM products, particularly with respect to

increasing global market restrictions on these products.

Because of traditionally strong ties to the United Kingdom

and the Netherlands, South Africa’s agricultural

biotechnology policy is affected by the EU, which currently

has closed its market to most GM products. South

African fears of potential trade friction with the EU have

slowed its development of a national biotechnology

strategy. South Africa has capitalized on the market for

non-GM grains by importing GM varieties for domestic

consumption and selling its output of non-GM varieties

abroad.19

S Concerns over GM products also prompted Zimbabwe

and Zambia to refuse food aid containing GM corn during

the summer of 2002. Such refusals would greatly

exacerbate the impact of food shortages caused by

drought.20

S In May 2001, an agreement was signed by South African

agricultural groups and farm worker unions to improved

pay and working conditions for South African farm

workers.21

S Certain SSA countries are moving to protect and develop

their own fishing industries and are increasingly excluding

foreign vessels from their waters. In January 2002,

Ghana passed a law prohibiting foreign trawlers in

territorial waters. Namibia is considering a total ban on

pilchard fishing due to depleted stocks.22

S In efforts to protect domestic interests, several SSA

countries have recently raised tariffs on agricultural

products. In March 2002, Kenya raised duties on

imported dairy products and wheat. In January 2001,

Nigeria raised duties on rice and announced a ban on

imports of bulk vegetable oils. In March 2002, Nigeria

imposed large tariff increases, particularly for

agricultural and processed food products.23

S SSA countries have made progress towards meeting

international sanitary and phytosanitary (SPS)

requirements. The South African fruit industry has

implemented protocols to meet the requirements of

European markets and in February 2002, Uganda

resumed exports of fish products to the EU.24

S In May 2001, Nigeria instituted new customs clearance

procedures requiring 100 percent inspection of all

imports to counter tariff avoidance. The resulting port

congestion and abandonment of some shipments

resulted in a drop in national retail sales of imported

processed food products by 50 percent.25
117

SSA sector global exports,

by HS chapter, 2000

($15.5 billion)

0 10 20 30 40 50 60

Cereals (10)

Paper Products (48)

Fats and Oils (15)

Cotton (52)

Sugar (17)

All other

SSA sector global imports, by country, 2000

($8.8 billion)

TRADE

SSA sector global imports,

by HS chapter, 2000

($8.8 billion)

Source: United Nations.

Share of total (percent)

SSA sector global exports, by country, 2000

($15.5 billion)

Source: United Nations.

South Africa 20%

All other 50%

Nigeria 15%

Senegal 5%

Angola 5%

Source: United Nations.

South Africa 25%

All other 42%

Côte d’lvoire 16%

Cameroon 6%

Kenya 6%Zimbabwe 5%

0 10 20 30 40 50

Wood Products (44)

Cocoa (18)

Coffee, Tea, Spices (9)

Fruit and Nuts (8)

Fish (3)

All other

Source: United Nations.

Share of total (percent)

Major Share of Major Import Share of

Import Total Item Total

Source (2000) (percent) (6-digit HS) (2000) (percent)

EU 48 Wheat, not durum (1001.90) 8 .................. ...

United States 10 Cane or beet sugar (1701.99) 5 ....... ..

South Africa 9 Cigarettes (2402.20) 4 ........... ...........

China 4 Durum wheat (1001.10) 3 ................. ........

Brazil 4 Milled rice (1006.30) 3 ................. ...........

Argentina 4 Concentrated milk (0402.21) 3 ............. ...

Source: United Nations. Source: United Nations.

Major Share of Major Export Share of

Export Total Item Total

Market (2000) (percent) (6-digit HS) (2000) (percent)

EU 60 Cocoa beans (1801.00) 12 .................. .......

United States 7 Coffee (0901.11) 8 ......... ..............

Japan 7 Tropical wood (4403.49) 5 ................. .......

China 4 Tobacco (2401.20) 5 ................. ............

Hong Kong 2 Cane sugar (1701.11) 3 ............ ..........

Saudi Arabia 2 Tropical lumber (4407.29) 3 .......... ......

15

10

8

6

6

55

15

14

11

10

10

40

Côte d’lvoire 5%
118

Source: Compiled from official statistics of the

U.S. Department of Commerce. Source: Compiled from official statistics of the

U.S. Department of Commerce.

Source: Compiled from official statistics of the

U.S. Department of Commerce.

0 5 10 15 20 25 30 35

Cocoa (18)

Coffee, Tea, Spices (9)

Wood Products (44)

Fish (3)

Tobacco (24)

All other

U.S. sector imports from

SSA, by source, 2001

($956 million)

TRADE-Continued

U.S. sector imports from SSA,

by HS chapter, 2001

($956 million)

Share of total (percent)

U.S. sector imports under AGOA

(including GSP), by source, 2001

($175 million)

U.S. sector imports under AGOA

(including GSP), by HS chapter, 2001

($175 million)

South Africa 50%

All other 15%

Malawi 17%

Ghana 5%

Mauritius 6%

0 5 10 15 20 25 30 35 40

Sugar (17)

Fruit and Nuts (8)

Tobacco (24)

Wood Products (44)

All other

Share of total (percent)

South Africa 23%

All other 28%

Ghana 9%

Madagascar 9%

Malawi 6%

Source: Compiled from official statistics of the

U.S. Department of Commerce.

29

18

9

8

6

30

23

17

13

12

35

Côte d’lvoire 7%

Côte d’lvoire 25%
119

U.S. sector exports to SSA,

by market, 2001

($796 million)

TRADE-Continued

Angola 4%

U.S. sector exports to SSA,

by HS chapter, 2001

($796 million)

Source: Compiled from official statistics of the

U.S. Department of Commerce.

South Africa 24%

Nigeria 34% All other 29%

Ghana 6%

0 10 20 30 40 50

Cereals (10)

Printed Matter (49)

Paper Products (48)

Milling Products (11)

Fats and Oils (15)

All other

Source: Compiled from official statistics of the

U.S. Department of Commerce.

Key U.S. Import Developments

S U.S. sector imports from SSA totaled $956 million in

2001, down 6 percent from the previous year. SSA

accounted for about 1 percent of total U.S. sector

imports in 2001.

S In 2001, the top five import commodities at the

6-digit HS level accounted for 50 percent of total

imports. Cocoa beans (HS 1801.00) accounted for

26 percent; vanilla beans (HS 0905.00) for 9

percent; stemmed and stripped tobacco (HS

2401.20) for 6 percent; coffee not roasted or

decaffeinated (HS 0901.11) for 5 percent; and frozen

fish fillets (HS 0304.20) for 4 percent.

S Côte d’Ivoire and South Africa supplied about 50

percent of all U.S. sector imports from SSA.

Key AGOA Trade Developments

S In 2001, the value of U.S. sector imports under AGOA

(including GSP) was $175 million, representing 2

percent of total AGOA imports and 18 percent of total

sector imports from SSA. South Africa was by far the

largest source for U.S. imports under AGOA in the

sector in 2001, accounting for half of such imports.

S The principal products imported under AGOA were

raw cane sugar (HS 1701.11), at $28 million or 16

percent of the total; stemmed and stripped tobacco

(HS 2401.20), $24 million or 14 percent); and fresh

oranges (HS 0805.10), $14 million or 8 percent.

S AGOA contributed to an increase in South African

citrus fruit shipments to the United States from $8.3

million in 2000 to $20.2 million in 2001. South

African citrus output is forecast to increase 5 percent

and exports to increase 69 percent in 2002.26

S Kenyan efforts to take advantage of AGOA for fresh

produce have been hampered by SPS requirements

and high freight charges. Kenya is actively seeking

U.S. technical assistance to update its pest risk

analysis facilities to international standards.27

S U.S. canned pear producers sought in 2002 to have

duties reimposed on canned pears under AGOA.

Virtually all such imports from AGOA countries are

from South Africa.28

Key U.S. Export Developments

S U.S. sector exports to SSA totaled $796 million in

2001, down 13 percent from the previous year. SSA

accounted for about 1 percent of total U.S. sector

exports in 2001.

S In 2001, the top four export commodities at the

6-digit HS level accounted for 50 percent of total

exports. These included wheat other than Durum (HS

1001.90), 36 percent; milled rice (HS 1006.30), 6

percent; books, brochures, and leaflets (HS

4901.99), 4 percent; and frozen chicken cuts and

offal (HS 0207.14), 4 percent.

S U.S. exports of grain to SSA countries were about

$360 million in 2001, a 10 percent drop from 2000.

Nigeria, Ghana and South Africa purchased 75

percent of the total. About three-quarters of U.S.

grain exports to the region in 2001 consisted of

wheat, one-eighth of rice, and the remainder was

mostly corn.

S A high proportion of U.S. grain sales to SSA consist of

food aid sales under humanitarian assistance or

export credit programs. U.S. exports to Nigeria are

mostly commercial sales, but those to most other

SSA countries are food aid or donations. The 10

percent drop in U.S. exports occurred because of

fewer food aid exports to South Africa, Ethiopia,

Mozambique, the Democratic Republic of the Congo,

and the Republic of the Congo.

S U.S. wheat sales to Nigeria in 2001 increased $65

million (43 percent) from the 2000 total, but did not

offset the drop to other countries. Higher per capita

income and lower tariffs on wheat helped Nigeria

become the fourth largest foreign market for U.S.

wheat exports.29

S In December 2000, South Africa imposed prohibitive

antidumping duties on imports of bone-in dark meat

chicken cuts from the United States, effectively

eliminating such imports by 2002.30

Ethiopia 3%

Share of total (percent)

46

8

7

6

6

27
120

Country/region Development

Malawi A new land ownership policy in Malawi prohibits foreigners from owning land.31

Kenya In June 2002, Kenya abolished tax concessions and imposed 100 percent duties on imported sugar, affecting Del Monte operations

in that country.32

Zimbabwe In 2002, Zimbabwe effected a land redistribution policy that seriously disrupted domestic

farm output and jeopardized investments.

INVESTMENT

Major Investments

S U.S. FDI in SSAs food and kindred products category

totaled $90 million in 2001, down from $222 million

in 1997. South Africa has been by far the leading

destination country. Sector FDI was about 1 percent of

the total for all industries in SSA and less than 0.5

percent of world total for the food and kindred

products sector.33

S Numerous U.S. and foreign-based multinational food

product corporations report operations and

investments in the SSA region. Among these include

H.J. Heinz (Seychelles, Ghana, South Africa,

Botswana, Zimbabwe), Kellogg (South Africa), Mars

(South Africa, Côte d’Ivoire), Nestlé (South Africa,

Cameroon, Côte d’Ivoire, Gabon, Ghana, Guinea,

Kenya, Mauritius, Nigeria, Senegal, Zimbabwe), Kraft

(Côte d’Ivoire, Ghana, Kenya, Malawi, Nigeria, South

Africa, Tanzania, Uganda, Zambia, Zimbabwe), Wrigley

(Kenya), Cargill (Cameroon, Côte d’Ivoire, Kenya,

Nigeria, South Africa, Tanzania, Zimbabwe), Dole

(Cameroon, Ghana, Côte d’Ivoire, Kenya, Namibia,

South Africa, Zimbabwe), and Coca-Cola (Nigeria,

South Africa).34

S Recent investment activity reported by multinational

food product corporations in SSA include the following:

$8 million in capital expenditures by the Coca-Cola

Company; a 100,000 ton capacity cocoa processing

plant in Côte d’Ivoire by Cargill; and the acquisition of

John West Foods in South Africa by Heinz.35

S Various government agencies are making efforts to

match partners for investment opportunities. For

example, Illinois is focusing trade and investment

efforts on Tanzania, South Africa, Botswana, and

Ghana, and a U.S. fruit-processing firm is reportedly

looking for partners within COMESA. The governments

of South Africa and the United Kingdom are reportedly

working to identify partnerships that would lead to

increased agricultural trade.36

S A Uganda project to farm Nile perch in Lake Victoria is

being funded by USAID. Uganda is looking to replenish

dwindling fish stocks and increase exports, particularly

to non-European markets, such as the Middle East and

Asia.37

Investment Issues

S Major multinational agribusiness enterprises have

identified the following major investment barriers in

SSA: restrictions on profit repatriation, foreign

exchange controls, inadequate infrastructure,

government policy changes and uncertainty, and

inadequate legal systems.38

S SSA domestic agricultural enterprises have identified

such investment-limiting factors as financing

obstacles, weak research and extension services,

unstable government policies, and cumbersome land

ownership and leasing procedures.39

S Specific FDI constraints include political instability and

corruption in many SSA countries, relatively low GDP

levels and growth rates, relatively high tariffs and other

trade restrictions, and unstable exchange rates.40

S Recent progress has been made in improving policies

and conditions affecting sector investment in SSA. In

particular, market liberalization measures, such as

privatization of production and state trading

enterprises, have encouraged such investment in

recent years.41

0

30

60

90

120

150

180

210

240

270

1997 1998 1999 2000 2001

Millions of U.S. dollars

U.S. sector SSA FDI position, 1997-2001

-40 -20 0 20 40 60 80 100 120 140

South Africa

Kenya

Total

Millions of U.S. dollars

U.S. sector SSA FDI position, by country, 2001

Note.—Data for Côte d’Ivoire, Nigeria, Swaziland,

Zambia, and Zimbabwe are not disclosed owing to

confidentiality. U.S. FDI position is negative for some

countries.

Source: U.S. Department of Commerce, Bureau of

Economic Analysis.

Note.—Data for some countries are not disclosed owing to

confidentiality. U.S. FDI position is negative for some countries.

Source: U.S. Department of Commerce, Bureau of Economic

Analysis.

114

-24

90

222 217

243

171

90

Major SSA sector investment policy developments
121

INVESTMENT-Continued

S According to a survey of investment promotion

agencies conducted by UNCTAD, the food and

beverage sector ranked as the second most

attractive sector for FDI in SSA. The agriculture

sector ranked sixth, fishery sector ranked eleventh,

and the forestry sector ranked sixteenth.42

Multilateral Lending

S In 2002, the International Fund for Agricultural

Development announced $42 million in loans to

Uganda and Nigeria to assist in rural and agricultural

development, particularly small-scale farmers and

entrepreneurs and loans to Mozambique and Benin

to assist in development of fisheries.43

S In February 2002, the African Development Bank

(AfBD) announced a $5 million loan to Mauritius for

new waste treatment systems that will provide

additional irrigation water and compost for sugar

cane farmers.44

S In June 2002, AfDB approved a loan to finance new

coffee production, processing, and marketing

operations in Uganda.45

S Eighty thousand Nigerian farmers have utilized a $4

million micro-credit fund from the United Nations

Development Program.46
122

1 This sector includes Harmonized System chapters 01

through 24 and 44 through 49, and portions of chapters 35,

41, 43, 51, and 52.

2 World Bank, “Sub-Saharan Africa Data Profile,” found at

Internet address http://devdata.worldbank.org/external/

dgprofile.asp?, retrieved July 3, 2002. Also see Corporate

Council on Africa, Africa 2002, Business Books International,

New Canaan, CT (2001), p. 98; and World Bank,

“Sub-Saharan Africa,” World Bank Brief, found at Internet

address http://www.worldbamk.org/afr/overview.pdf,

retrieved June 17, 2002.

3 Based on data of the Food and Agriculture Organization

of the United Nations.

4 Ibid.

5 Ibid.

6 Keith Wiebe and Abebayehu Tegene, “Resource Quality,

Agricultural Productivity, and Food Security in Developing

Countries;” USDA, ERS, Food Security Assessment GFA-12,

December 2000, p. 26; USDA, FAS, Ghana Cocoa Situation

Report, 2000, GAIN Report #GH0002, Oct. 6, 2000, p. 3;

USDA, FAS, Nigeria Cotton and Products Annual, 2001,

GAIN Report #NI1011, May 22, 2001, p. 1; and Shahla

Shapouri and Stacie Rosen, “Toll on Agriculture from

HIV/AIDS in Sub-Saharan Africa,” USDA, ERS, Agriculture

Information Bulletin No. 765-9, June 2001.

7 Corporate Council on Africa, Africa 2002, p. 98; and

Shapouri and Rosen, “Toll on Agriculture from HIV/AIDS in

Sub-Saharan Africa.”

8 Stacey Rosen, “Sub-Saharan Africa,” USDA, ERS, Food

Security Assessment GFA-13, March 2002, p. 10.

9 U.S. Department of State telegram, “Zambia’s Maize

Shortage Unabated,” message reference No. 03370,

prepared by U.S. Embassy, Lusaka, Oct. 12, 2001; U.S.

Department of State telegram, “Maize Shortfall and Higher

Maize Prices in Malawi,” message reference No. 01931,

prepared by U.S. Embassy, Lilongwe, Oct. 16, 2001;

MBendi, “Zambia declares food disaster,” news release found

at Internet address http://www.mbendi.co.za/a_sndmsg/

news_view.asp?P=0&PGI=11&I, retrieved June 14, 2002;

USAID, “US AID Response to Drought in Southern Africa,”

found at Internet address http://www.usaid.gov/press/

releases/2002/fs020510.html, retrieved June 17, 2002;

and USAID, “Southern Africa-Complex Food Security Crisis

Situation Report #5 (FY) 2002,” found at Internet address

http://www.usaid.gov/hum_response/ofda/southernafrica_

sr5_fy02.html, retrieved June 17, 2002.

10 Food and Agricultural Organization of the United

Nations, Global Information and Early Warning System on

Food and Agriculture, Food Supply Situation and Crop

Prospects in Sub-Saharan Africa, No. 3, Dec. 2001, p. 15.

11 MBendi, “Drought blamed as Mugabe declares state of

disaster over food shortages,” news release found at Internet

address http://www.mbendi.co.za/a_sndmsg/

news_view.asp?P=0&PGI=11&I=33162&M=0, retrieved June

14, 2002; Nando Times, “World: Zimbabwe white farmers

prepare for government takeover,” found at Internet address

http://www.nandotimes.com/world/story/446724p-3574

703c.html, retrieved June 26, 2002; and Foodnews, “Land

grabs ruin Zimbabwe citrus,” vol. 30, No. 8, Feb. 15, 2002,

p. 9.

12 Roy F. Darwin, “Climate Change and Food Security,”

USDA, ERS, Agriculture Information Bulletin No. 765-8, June

2001; and World Bank, “Sub-Saharan Africa,” World Bank

12-Continued

Brief found at Internet address http://www.worldbank.org/

afr/overview.htm, retrieved June 17, 2002

13 MBendi, “Soya is SA’s latest modified crop” and “Africa is

falling behind in agricultural research,” news releases found at

Internet address http://www.mbendi.co.za/a_sndmsg/

news_view.asp?P=0&PG=11I, retrieved June 14, 2002; U.S.

Department of State telegram, “South Africa Making

Biotechnology a Focus for Future Development,” message

reference No. 05919, prepared by U.S. Embassy, Pretoria,

Oct. 5, 2001; USDA, FAS, Kenya Biotechnology in Kenya,

2001, GAIN Report #KE1005, Oct. 29, 2001, p. 2; USDA,

FAS, Kenya Cotton and Products The Kenya Cotton Industry,

2001, GAIN Report #KE1006, Oct. 29, 2001, p. 3; and

MBendi, “New rice varieties to benefit sub-Saharan Africa,”

news release found at Internet address http://www.mbendi.

co.za/a_sndmsg/news_view.asp?I=37256,retrieved June 14,

2002.

14 World Bank, “Sub-Saharan Africa,” World Bank Brief

found at Internet address http://www.worldbamk.org/afr/

overview.pdf, retrieved June 17, 2002; Shahla Shapouri and

Stacey Rosen, “Food Security Assessment: Regional Overview,”

USDA, ERS, Agricultural Information Bulletin Number 765-1,

April 2001; USAID, “Southern Africa - Complex Food Security

Crisis Situation Report #5 (FY) 2002,” found at Internet

address http://www.usaid.gov/hum_response/ofda/

southernafrica_sr5_fy02.html, retrieved June 17, 2002; and

Shapouri and Rosen, “Toll on Agriculture from HIV/AIDS in

Sub-Saharan Africa.”

15 MBendi, “Uganda suffers as a result of falling coffee

prices,” news release found at Internet address

http://www.mbendi.co.za/a_sndmsg/news_view.asp?P=0&P

GI=11&I..., retrieved June 14, 2002: Mbendi, “Kenyan coffee

production dips by 50 percent,” news release found at Internet

address http://www.mbendi.co.za/a_sndmsg/

news_view.asp?P=0&PGI=11&I, retrieved June 14, 2002;

USDA, FAS, Kenya, Coffee Annual, 2002, GAIN Report

#KE2004, May 8, 2002, p. 1; USDA, FAS, Côte d’Ivoire,

Coffee Annual, 2002, GAIN Report #IV2003, May 13, 2002,

p. 1; and MBendi, “Plunge in coffee prices hit Ethiopia’s forex

reserves,” news release found at Internet address

http://www.mbendi.co.za/a_sndmsg/news_view.asp?P=0&P

GI=11&I..., retrieved June 14, 2002.

16 See, for example, Global Exchange, Fair Trade Coffee

Campaign, found at Internet address

http://www.globalexchange.org/economy/coffee/, retrieved

Sep. 23, 2002; and International Institute of Tropical

Agriculture, Child Labor in the Cocoa Sector of West Africa,

found at Internet address http://www.iita.org/news/

cocoa.pdf, retrieved Aug. 6, 2002.

17 USDA, FAS, Ghana Cocoa Situation Report, 2000, GAIN

Report #GH0002, Oct. 6, 2000, p. 1; USDA, FAS, Kenya

Coffee Annual, 2002, GAIN Report #KE2004, May 8, 2002,

p. 1; and USDA, FAS, Kenya Sugar Annual, 2002, GAIN

Report #KE2003, Apr. 9, 2002, p. 1.

18 USDA, FAS, Ghana Cocoa Situation Report, 2000, p. 5;

and USDA, FAS, Côte d’Ivoire, Coffee Annual, 2002, GAIN

Report #IV2003, May 13, 2002, p. 1.

19 U.S. Department of State telegram, “South Africa

Making Biotechnology a Focus for Future Development,”

message reference No. 05919, prepared by U.S. Embassy,

Pretoria, Oct. 5, 2001.

TRADE-Continued

ENDNOTES
123

20 U.S. Department of State telegram, “Demarche to

SADC Secretariat and Member States: The Urgent Case for

Genetically Modified Food,” message reference No. 145379,

July 30, 2002.

21 U.S. Department of State telegram, “Workers on

Commercial Farms Struggle for a Decent Standard of Living,”

message reference No. 00723, prepared by U.S. Consul,

Johannesburg, May 31, 2001.

22 MBendi, “West Africa focuses its investments on

upgrading,” news release found at Internet address

http://www.mbendi.co.za/a_sndmsg/news_view.asp?P=0&

PGI=11&I, retrieved June 14, 2002; MBendi, “Fishing in

Ghana’s waters is for Ghanaians only,” found at Internet

address http://www.mbendi.co.za/a_sndmsg/

news_view.asp?P=0&PG=11&I=32488&M=0, retrieved June

26, 2002; and Foodnews, “Pilchard fishing quotas likely to be

slashed,” vol. 30, No. 14, Mar. 29, 2002, p. 5.

23 Foodnews, “Kenya raises tariffs on dairy goods,” vol.

30, No. 13, Mar. 22, 2002, p. 6; USDA, FAS, Kenya Grain

and Feed Wheat Update, 2002, GAIN Report #KE2001,

Mar. 22, 2002, p. 1; USDA, FAS, Nigeria Grain and Feed

Rice Situation, 2001, GAIN Report #NI1024, Dec. 7, 2001,

p. 1; USDA, FAS, Nigeria Oilseeds and Products Annual,

2002, GAIN Report #NI2002, Feb. 20, 2002, p. 1; and

U.S. Department of State telegram, “Nigeria: GON

Implements Protectionist Tariff Schedule,” message reference

No. 01163, prepared by U.S. Embassy, Abuja, Apr. 12,

2002.

24 USDA, FAS, South Africa, Fresh Deciduous Fruit

Annual, 2002, GAIN Report #SF2001, Feb. 14, 2002, p.

11; Foodnews, “Uganda renews fish exports to EU,” vol. 30,

No. 7, Feb. 8, 2002, p. 9; Foodnews, “Fish farming in Lake

Victoria,” vol. 30, No. 27, June 28, 2002, p. 3.

25 USDA, FAS, Nigeria Trade Policy Monitoring Imports of

High-Value Food Drop Sharply, 2001, GAIN Report #NI1016,

Jul. 31, 2001, p. 1.

26 USDOC, ITA, U.S.-African Trade Profile, found at

Internet address http://www.agoa.gov/trdprofl02.pdf,

retrieved June 17, 2002; and Foodnews, “SA citrus rise,”

vol. 30, No. 24, June 7, 2002, p. 6.

27 USDA, FAS, Kenya Horticultural Situation, 2002, GAIN

Report #KE2006, June 20, 2002, p. 5; and MBendi, “Kenya

to diversify products for export to US,” news release found at

Internet address http://www.mbendi.co.za/a_sndmsg/

news_view.asp?P=0&PG=11&I=33841&M=0&CTRL=S,

retrieved June 14, 2002.

28 Foodnews, “South Africa battles to halt U.S. duty

imposition,” vol. 30, No. 25, June 14, 2002, p. 5.

29 USDA, FAS, Nigeria Grain and Feed Annual, 2002,

GAIN Report #NI2009, Apr. 18, 2002, p. 1.

30 USDA, FAS, South Africa, Poultry and Products

Annual, 2001, GAIN Report #SF1020, Aug. 16, 2001, p. 4.

31 MBendi, “Malawi: land row erupts,” news release found

at http://www.mbendi.co.za/a_sndmsg/news_view.

asp?P=0&PG=11&I=36658&M=0&CTRL=S, retrieved June

14, 2002.

32 Foodnews, “Kenyan taxation puts Del Monte in

jeopardy,” vol. 30, No. 27, June 28, 2002, p. 11.

33 USDOC, BEA, U.S. Direct Investment Position Abroad

on a Historical-Cost Basis: Country Detail by Industry, 2001,

obtained by email, Jul. 23, 2002. Data for some countries

are not disclosed owing to confidentiality.

34 Various corporate annual reports. Companies may have

operations or investments in additional SSA countries.

35 Coca-Cola Company, 2001 Annual Report, p. 53;

Cargill, Worldwide Presence, found at Internet address

http://www.cargill.com/prodserv/country/cotedivoire.htm,

retrieved July 12, 2002; and H.J. Heinz Company, Annual

Report 2001, p.19.

36 U.S. Department of State telegram, “State of Illinois

Seeks Investment Opportunities in Tanzania,” message

reference No. 02327, prepared by U.S. Embassy, Dar Es

Salaam, Jun. 19, 2001; MBendi, “U.S. based fruit-processing

firm looking for COMESA partners,” news release found at

Internet address http://www.mbendi.co.za/a_sndmsg/

news_view.asp?P=0&PGI=11&I, retrieved June 14, 2002;

and MBendi, “SA and UK establish agricultural partnership,”

found at Internet address http://www.mbendi.co.za/

a_sndmsg/news_view.asp?P=0&PG=11&I=34649&M=0,

retrieved June 26, 2002.

37 Foodnews, “Uganda renews fish exports to EU,” vol.

30, No. 7, Feb. 8, 2002, p. 9.

38 Vince Ruddy and others, “The Changing Environment for

Southern African Agribusiness: Perspectives of Regional and

International Companies,” Southern African Agribusiness:

Gaining through Regional Collaboration, World Bank Technical

Paper No. 424, February 1999, pp. 23-24.

39 Ibid, pp. 15-16.

40 Stacey Rosen and Shahla Shapouri, USDA, ERS, “The

African Growth & Opportunity Act: How Much Opportunity?,”

Agricultural Outlook, August 2000, p. 20.

41 Ruddy and others, “The Changing Environment for

Southern African Agribusiness,”, p. 23.

42 Corporate Council on Africa, Africa 2002, Business

Books International, New Canaan, CT, 2001, p. 62.

43 International Fund for Agricultural Development, “IFAD

to Support an Agricultural Modernization Programme in the

Republic of Uganda,” found at Internet address http://

www.ifad.org/media/press/2002/07-02.htm, retrieved

June 26, 2002; “Programme Agreement Signed for USD

29.9 Million IFAD-initiated Community-Based Agricultural and

Rural Development Programme in Federal Republic of

Nigeria,” found at Internet address http://www.ifad.org/

media/press/2002/28-02.htm, retrieved June 26, 2002;

“IFAD to Support the Sofala Bank Artisanal Fisheries Project in

the Republic of Mozambique,” found at Internet address

http://www.ifad.org/media/press/2002/15-02.htm,

retrieved June 26, 2002; and “IFAD to Assist in the

Participatory Artisanal Fisheries Development in the Republic

of Benin,” found at Internet address http://www.ifad.org/

media/press/2002/16-02.htm, retrieved June 26, 2002.

44 MBendi, “The African development bank approves a US

$5.03 million and euro 5.75 million loan to Mauritius,” news

release found at Internet address http://www.mbendi.co.za/

retrieved June 26, 2002.

45 MBendi, “African Development Bank approves a $2.5

million loan to finance the kaweri coffee plantation project in

Uganda,” news release found at Internet address

http://www.mbendi.co.za/a_sndmsg/news_view.asp?P=0&

PG=11&I=33528&M=0, retrieved July 1, 2002.

46 MBendi, “Thousands of Nigerian farmers benefit from

UNDP micro-credits,” news release found at Internet address

http://www.mbendi.co.za/a_sndmsg/news_view.asp?P=0&

PG=11&I=33967&M=0&CTRL=S, retrieved June 14, 2002.

TRADE-Continued

ENDNOTES-Continued
124
125

0 10 20 30 40 50

Organic chemicals

Rubber and plastics

Inorganic chemicals

Pharmaceuticals

Specialty chemicals

Fertilizers

Miscellaneous chemical products

Source: USITC estimates based on information from

MBendi; Chemical & Engineering News, “World

Chemical Outlook,” Dec. 17, 2001, pp.26-40;

USDOC, US&FCS Market Research Reports:

Chemicals-South Africa, Dec. 5, 2001; and USDOC,

US&FCS Market Research Reports: The Chemicals

Industry—South Africa, Oct. 26, 1999.

S The major western SSA chemical industries (primarily in

Nigeria) are largely based on crude petroleum and natural

gas resources located within their borders, and rarely

import petroleum products or gas derivatives for use as

feedstocks.

S Chemical production in South Africa, mostly based on

organic chemicals derived from coal, contributes 5

percent of South Africa’s GDP and accounts for 25

percent of all South Africa’s sales of manufactured

products.

Industry and Sector Issues

S SSA’s chemical production capacity grew rapidly during the

late 1990s, as several multinational chemical companies

sought to capitalize on the crude petroleum and natural

gas reserves found in Nigeria.

S Producers were forced to delay many planned projects

during 2001 and postponed completion on some projects

already under construction due to financial problems,

problems with civil conflicts that caused interruptions in

material supplies, and the uncertain availability of needed

resources.

S Infrastructure constraints owing to civil disturbances and

the lack of preexisting transportation links has caused

significant unforeseen expenses in recent years. For

example, inconsistent deliveries of feedstock natural gas

to two new petrochemical complexes that produce plastics

and fertilizers in Port Harcourt, Nigeria forced these

plants to run at about 20 percent of installed capacity.2

S Demand has increased steadily for certain pharmaceutical

products due to the rapid spread of certain diseases,

such as AIDS and other AIDS-related infections.3

S As of March 2001, 39 foreign pharmaceutical

manufacturers had filed petitions to challenge a South

African law (Medicines and Related Substances Control

Amendment Act) allowing domestic drug companies to buy

inexpensive, generic substitutes for patented AIDS drugs.

In April 2001, these companies dropped their challenges,

thereby allowing South African drug companies both to

purchase and to produce the generic substitutes to help

treat the large number of HIV-positive individuals in their

population.4

S Sales of many nonessential consumer chemical products

in SSA, such as cosmetics, toiletries, and perfumes, are

limited owing to relatively low levels of discretionary income

compared with the U.S. market.

Economic and Trade Policy Developments

S In April 2001, the Pharmaceutical Manufacturers

Association ended its legal challenge to South Africa’s

Medicines and Related Substances Control Amendment

Act. As a result, the South African Government agreed

that their implementation of the Act would remain

consistent with the WTO rules governing intellectual

property rights.

S U.S. trade programs such as GSP and AGOA have helped

improve the ability of SSA nations to export chemical

products to the U.S. market. However, the emphasis of

SSA nations remains on developing their domestic

industries to take advantage of their own domestic

resources.

BACKGROUND

1

CHEMICALS

Share of total (percent)

Source: USITC estimates based on information from

MBendi; Chemical & Engineering News, “World

Chemical Outlook,” Dec. 17, 2001, pp.26-40;

USDOC, US&FCS Market Research Reports:

Chemicals-South Africa, Dec. 5, 2001; and USDOC,

US&FCS Market Research Reports: The Chemicals

Industry—South Africa,

Oct. 26, 1999.

SSA sector production, by country, 2000

($16.6 billion)

SSA sector production, by product, 2000

($16.6 billion)

South Africa 71%

All other 29%

Industry Overview

S The majority of the chemical production located in SSA is

targeted at meeting local needs, with production dominated

by such chemical end-use products as soaps and synthetic

detergents, pharmaceuticals, rubber and plastics products,

and fertilizers.

S Domestic companies involved in the SSA chemical industry

range from smaller domestic privately owned companies

that specialize in limited product lines to larger domestic

companies that are more vertically integrated and produce

different products most often based on a specific type of

basic feeedstock chemical. Also, various state-owned firms

and multinational companies with facilities throughout the

region generally produce a broader range of products than

most of the privately owned domestic producers.

41

25

10

6

5

2

11
126

0 5 10 15 20 25 30

SSA sector global exports,

by HS chapter, 2000

($2.2 billion)

0 5 10 15 20 25 30 35 40

Rubber and plastics (39,40)

Pharmaceuticals (30)

Organic chemicals (29)

Inorganic chemicals (28)

All other

SSA sector global imports, by country, 2000

($8.0 billion)

TRADE

SSA sector global imports,

by HS chapter, 2000

($8.0 billion)

Source: United Nations.

Share of total (percent)

SSA sector global exports, by country, 2000

($2.2 billion)

Source: United Nations.

South Africa 38%

All other 37%

Nigeria 13%

Kenya 4%

Zimbabwe 4%

Source: United Nations.

South Africa 71%

All other 11%

Niger 4%

Liberia 4%

Guinea 5%

Source: United Nations.

Share of total (percent)

Major Share of Major Import Share of

Import Total Item Total

Source (2000) (percent) (6-digit HS) (2000) (percent)

France 15 Pharmaceuticals (3004.90) 12 .............. ....

South Africa 10 Bus and truck tires (4011.20) 2 ......... ..

Germany 9 Insecticides (3808.10) 2 .............. .........

United States 9 .........

United Kingdom 8 .......

Belgium 5 ...............

Source: United Nations. Source: United Nations.

Major Share of Major Export Share of

Export Total Item Total

Market (2000) (percent) (6-digit HS) (2000) (percent)

United States 17 Acyclic hydrocarbons (2901.29) 6 .......

France 11 Uranium (2844.10) 6 .............. ............

Germany 7 Natural rubber (4001.22) 4 .............. ......

Iran 6 Aluminum oxide (2818.20) 4 ................... ......

United Kingdom 5 New tires for cars (4011.10) 3 ....... ...

Russia 4 Latex (4001.10) 3 ................ ...............

30

20

9

35

6

25

19

17

13

10

16

Côte d’lvoire 4%

Côte d’lvoire 5%

Inorganic chemicals (28)

Organic chemicals (29)

Rubber and articles

thereof (40)

Plastics and articles

thereof (39)

All other

Miscellaneous chemical

products (38)
127

0 10 20 30 40 50 60

Source: Compiled from official statistics of the

U.S. Department of Commerce.

Source: Compiled from official statistics of the

U.S. Department of Commerce.

Source: Compiled from official statistics of the

U.S. Department of Commerce.

0 10 20 30 40 50 60 70

Organic chemicals (29)

Inorganic chemicals (29)

Rubber and plastics (39, 40)

All other

U.S. sector imports from

SSA, by source, 2001

($648 million)

TRADE-Continued

U.S. sector imports from SSA,

by HS chapter, 2001

($648 million)

Share of total (percent)

U.S. sector imports under AGOA

(including GSP), by HS chapter, 2001

($128 million)

U.S. sector imports under AGOA

(including GSP), by HS chapter, 2001

($128 million)

South Africa 98%

All other 1% Kenya 1%

Share of total (percent)

South Africa 48% All other 18%

Nigeria 34%

Source: Compiled from official statistics of the

U.S. Department of Commerce.

58

20

12

10

53

16

9

9

22

Inorganic chemicals (28)

Organic chemicals (28)

Plastics and articles

thereof (39)

Dyes and pigments (32)

All other
128

U.S. sector exports to SSA,

by market, 2001

($811 million)

TRADE-Continued

U.S. sector exports to SSA,

by HS chapter, 2001

($811 million)

Source: Compiled from official statistics of the

U.S. Department of Commerce.

South Africa 60% All other 26%

Nigeria 9%

0 10 20 30 40 50

Rubber and plastics (39, 40)

Organic chemicals (29)

Phamaceuticals (30)

All other

Source: Compiled from official statistics of the

U.S. Department of Commerce.

Key U.S. Import Developments

S U.S. sector imports from SSA totaled $648 million in

2001, down 53 percent from the previous year. Principal

SSA suppliers included South Africa and Nigeria. Most of

the decline was accounted for by petrochemicals from

Nigeria.

S The three largest (by value) traded U.S. chemical imports

from the SSA nations were organic chemicals used as

feedstocks for producing chemical intermediates and

chemical products. These products were unsaturated

acyclic hydrocarbons (HS 2901.29), accounting for 12

percent of U.S. chemical imports; and propylene (HS

2901.22) and ethylene (HS 2901.21), each accounting

for more than 10 percent of U.S. chemical imports.

S Only Nigeria and South Africa are significant suppliers of

U.S. chemical imports, of which most are organic

chemicals produced from the petroleum resources in

Nigeria and from the coal resources in South Africa. The

remaining items are minerals from South Africa.

S The primary materials that comprise U.S. chemical imports

from SSA nations are ethylene (HS 2901.21), propylene

(HS 2901.22) and mixed xylenes (HS 2902.44) from

Nigeria; and unsaturated acyclic hydrocarbons (HS

2901.29), silicon (HS 2804.69) and uranium (HS

2844.10) from South Africa.

Key AGOA Trade Developments

S In 2001, U.S. sector imports under AGOA totaled

$128 million.5 This represented 2 percent of total

U.S. imports under the GSP and AGOA and 20

percent of total sector imports from SSA.

S The major products imported under AGOA in 2001

included silicon (HS 2804.69.10), representing 19

percent of the total, compounds of precious metals

(HS 2843.90.00), with 10 percent, and manganese

dioxide (HS 2820.10.00), with 8 percent. All of these

products entered under the GSP.

S U.S. imports under specific AGOA provisions were

relatively minor in 2001, totaling $3.8 million. AGOA,

apart from GSP, is not expected to have a major

effect on the export of products in the chemical

sector from SSA nations to the United States.

S None of the SSA countries that are not designated for

AGOA has significant production of sector products.

Key U.S. Export Developments

S U.S. sector exports to SSA totaled $811 million in

2001, up 8 percent from the previous year. South

Africa, by far, was the major SSA market, followed by

Nigeria and Kenya.

S The largest (by value) traded chemical exports to

South Africa were: medicaments, in measured doses

(HS 3004.90), valued at $22.6 million; (nylon type)

polyamide, in primary forms (HS 3908.10), valued at

$17.0 million; and supported catalysts with precious

metal or precious metal compounds (HS 3815.12),

valued at $16.4 million.

S The largest (by value) traded chemical exports to

Nigeria were polypropylene in primary forms (HS

3902.10), valued at $6.3 million; other prepared

binders for foundry molds or cores, including culture

crystals (HS 3824.90), valued at $6.0 million; and

certain additives for mineral oils (HS 3811.90),

valued at $5.2 million.

S The largest (by value) traded chemical exports to

Kenya were fertilizers (HS 3100.00), valued at $20.7

million, and certain water-based paints (HS

3208.90), valued at $8.6 million.

S The largest (by value) traded chemical exports to

Ghana were aluminum oxide (HS 2818.20), valued at

$9.2 million; certain hair preparations (HS 3305.90),

valued at $3.2 million; and sheath contraceptives (HS

4014.10), valued at $2.5 million.

S The largest (by value) traded chemical exports to Côte

d’Ivoire were fertilizers (HS 3100.00), valued at $5.2

million, and polyvinyl chloride (HS 3904.10), valued at

$4.4 million.

Share of total (percent)

27

20

10

43

Kenya 5%
129

INVESTMENT

Investment Issues

S The major concern of potential investors in

developing the SSA chemical industry is the

currently limited potential for a reasonable return

on their investment. Despite ample natural

resources to support a domestic petrochemical

industry, ancillary issues complicate possible major

multinational investments. For example, conflicts

and political unrest in the precise regions where the

necessary resources, primarily petroleum and

natural gas, are found have already complicated the

delivery of these materials to established energy

industry facilities.

Multilateral Lending

S Information published by the International Monetary

Fund (IMF) stated that despite the overall weak

world economic situation, growth in Africa was

reasonable in 2001and is expected to remain so in

2002. Assuming continued positive economic

developments in SSA nations, the IMF recognizes

the need to advance policies and initiatives to

promote multilateral level economic growth.9

0

50

100

150

200

250

300

350

400

450

1997 1998 1999 2000 2001

Millions of U.S. dollars

U.S. sector SSA FDI position, 1997-2001

0 50 100 150 200 250 300 350 400

South Africa

Nigeria

Zimbabwe

Zambia

Bostwana

Kenya

Senegal

Total

Millions of U.S. dollars

U.S. sector SSA FDI position, by country, 2001

Source: U.S. Department of Commerce, Bureau of

Economic Analysis.

Source: U.S. Department of Commerce, Bureau of Economic

Analysis.

300

346

18

12

8

6

1

1

397

215 199

245

346

Major Investments

S Dow Chemical is closing several of its SSA plants

producing organic chemicals for the European market

as part of a restructuring and rationalization of its

overall European strategy for production of chemical

intermediates. Specifically, Dow has announced plans

to close a plant located in Durban that currently

produces 20,000 metric tons per year of polyols,

effectively ending manufacture of polyurethanes at that

location.6

S Sasol, a major South African chemical producer, is

seeking multiple arrangements with Mitsubishi to

continue major petrochemical plant expansions and

developments in organic solvents, both in South Africa

and also in Nigeria.7 Also, Sasol is looking into new

investments in olefins and derivatives at Secunda,

which would in turn allow for future development of

new world-scale polyethylene and polypropylene units at

Secunda.8
130

1 This sector includes Harmonized System chapters 28

through 34 and 36 through 40 and parts of chapter 35.

2 Oil & Gas Journal, “Natural gas offers Nigeria huge

potential, challenge,” vol. 99, Issue 27, July 2, 2001, pp.

76-79.

3 Kwame Kusdey, “The Politics of AIDS Drugs in Africa,”

Aids & Africa, found at Internet address,

http://www.aidsandafrica.com/drugs.html, retrieved July 11,

2002.

4 Ibid.

5 Includes imports under both AGOA and GSP programs.

6 Chemical Week, “Dow to end South African polyols

production; more closures planned,” vol. 164, Issue 5, Feb. 6,

2002, p. 17.

7 Chemical Week, “Sasol confirms: Petchems expansion

plan; eyes more acquisitions,” vol. 163, Issue 37, Oct. 3-10,

2001, p. 15.

8 Ibid.

9 International Monetary Fund, Annual Report 2002, May

2002, p. 6.

TRADE-Continued

ENDNOTES
131

ENERGY-RELATED PRODUCTS

S Angola is the region’s second largest producer of crude

petroleum behind Nigeria, with the majority of its crude oil

production located offshore. Angola accounts for less

than 1 percent of the world’s crude petroleum and

natural gas reserves. Angola has only one small refinery

with a capacity to refine 39,000 barrels of crude per

day.

S Both Nigeria’s and Angola’s crude petroleum reserves

consist primarily of high quality, low-sulfur quality crude.

S South Africa accounts for about 4 percent of the world’s

recoverable reserves of coal. South Africa accounts for

less than 1 percent of the world’s recoverable reserves of

crude petroleum and has virtually no recoverable reserves

of natural gas.

S South Africa is one of the major refining countries in the

region with four refineries and a total capacity to refine

468,547 barrels of crude petroleum per day.

S South Africa has a highly developed synthetic fuels

industry, which takes advantage of the country’s abundant

coal resources and offshore natural gas and condensate

production in Mossel Bay. The two major players are

Sasol, the world’s largest manufacturer of oil from coal,

(coal-to-oil/chemicals) and Mossgas (natural

gas-to-petroleum products).

S In October 2000, Sasol referred to natural gas as an

“underused” resource in South Africa, accounting for just

2 percent of the country’s energy needs. Sasol pledged to

increase its expected natural gas consumption from 82

million cubic feet in 2002 to 184.5 million cubic feet by

2010. Sasol has the capacity to produce 150,000

barrels per day and Mossgas 45,000 barrels per day.

Economic and Trade Policy Developments

S Nigeria’s economy is heavily dependent on the petroleum

sector, which accounts for nearly 80 percent of

government revenues, 90 to 95 percent of export

revenues, and over 90 percent of foreign exchange

earnings.

S Nigeria’s four refineries and its system of pipelines for

carrying crude petroleum and refined petroleum products

have experienced severe problems including sabotage,

fire, poor management and lack of turnaround

maintenance, which have sharply decreased actual

output.

S Angola, which has been in a state of nearly constant civil

war since it achieved independence from Portugal in

1975, also is heavily dependent on its petroleum sector,

which accounts for over 60 percent of its GDP and nearly

90 percent of total government revenues.

S Angola maintains positive GDP growth rates due to the

strength of its petroleum sector, which has very few

linkages to other sectors of the economy.

S Coal is the primary fuel produced and consumed in South

Africa and is its largest source of foreign exchange.

S South Africa’s coal reserves are mainly bituminous, with

relatively high ash content (about 45 percent) and low

sulfur content (about 1 percent). Three coalfields hold 70

percent of total recoverable reserves.

PETROLEUM AND

BACKGROUND

1

Source: U.S. Department of Energy and the American Petroleum

Institute

Share of total (percent)

Source: U.S. Department of Energy and the American Petroleum

Institute.

SSA sector production, by country, 2001

($57.3 billion)

SSA sector production, by product, 2001

($57.3 billion)

0 10 20 30 40 50 60

South Africa 49% All other 9%

Nigeria 42%

Industry Overview

S Crude petroleum in Nigeria and coal in South Africa are the

primary petroleum and energy-related products produced in

SSA. Nigeria accounts for 3 percent of the world’s

production and 9 percent of OPEC’s production of crude

petroleum.

S Both countries have recoverable reserves of the products

and have developed industries geared toward export.

S South Africa is a major producer and consumer of coal,

based on its abundant reserves. In addition, South Africa is

one of the major refining centers in the region.

S Nigeria’s four refineries have a capacity to refine a total of

438,750 barrels of crude petroleum per day, or 1 percent

of the world’s total refining capacity.

Industry and Sector Issues

S Nigeria accounts for about 2 percent of the world’s total

recoverable reserves of crude petroleum and 2 percent of

the world’s reserves of natural gas. Nigeria is a member of

OPEC and accounts for 3 percent of OPEC’s total crude

reserves and 5 percent of OPEC’s natural gas reserves.

54

40

4

2

Crude petroleum

Coal

Natural gas

Refined petroleum

products
132

0 20 40 60 80 100

SSA sector global exports,

by 4-digit HS, 2000

($36.7 billion)

0 20 40 60 80 100

SSA sector global imports, by country, 2000

($3.4 billion)

TRADE

SSA sector global imports,

by 4-digit HS, 2000

($3.4 billion)

Source: United Nations.

Share of total (percent)

SSA sector global exports, by country, 2000

($36.7 billion)

Source: United Nations.

South Africa 18%

All other 10%

Nigeria 3%

Senegal 11%

Cameroon 11%

Source: United Nations.

South Africa 5%

All other 14%

Nigeria 54%

Angola 19%

Gabon 8%

Source: United Nations.

Share of total (percent)

Major Share of Major Import Share of

Import Total Item Total

Source (2000) (percent) (6-digit HS) (2000) (percent)

Nigeria 79 Crude petroleum (2709.00) 82 .............. ...

EU 4 Refined petroleum products ....................

United States 3 (2710.00) 5 ......... .....................

Source: United Nations. Source: United Nations.

Major Share of Major Export Share of

Export Total Item Total

Market (2000) (percent) (6-digit HS) (2000) (percent)

United States 47 Crude petroleum (2709.00) 92 ....... ...

EU 25 Bituminous coal (2701.12) 3 .................. .....

China 10 ...............

Korea 5 .................

All other 13 ............

82

10

3

3

92

5

2

1

Côte d’lvoire 36%

Ghana 11%

2

Refined petroleum products

(2710, 2712-2715)

Crude petroleum (2709)

Coal (2701-2703)

Natural gas (2711)

All other Refined petroleum products

(2710, 2712-2715)

Crude petroleum (2709)

Coal (2701-2703)

Natural gas (2711)
133

Source: Compiled from official statistics of the

U.S. Department of Commerce. Source: Compiled from official statistics of the

U.S. Department of Commerce.

Source: Compiled from official statistics of the

U.S. Department of Commerce.

0 20 40 60 80 100

U.S. sector imports from

SSA, by source, 2001

($14.3 billion)

TRADE-Continued

U.S. sector imports from SSA,

by 4-digit HS, 2001

($14.3 billion)

Share of total (percent)

U.S. sector imports under AGOA

(including GSP), by source, 2001

($6.8 billion)

U.S. sector imports under AGOA

(including GSP), by 4-digit HS, 2001

($6.8 billion)

All other 17%

0 20 40 60 80 100 120

Share of total (percent)

Nigeria 61%

All other 9%

Gabon 11%

Angola 19%

Source: Compiled from official statistics of the

U.S. Department of Commerce.

85

12

3

96

4

Nigeria 83%

Refined petroleum products

(2710, 2712-2715)

Crude petroleum (2709)

All other

Crude petroleum (2709)

All other
134

U.S. sector exports to SSA,

by market, 2001

($119 million)

TRADE-Continued

U.S. sector exports to SSA,

by 4-digit HS, 2001

($119 million)

Source: Compiled from official statistics of the

U.S. Department of Commerce.

South Africa 62%

All other 24%

Nigeria 14%

0 20 40 60 80 100

Source: Compiled from official statistics of the

U.S. Department of Commerce.

Key U.S. Import Developments

S U.S. imports of petroleum and energy-related

products from SSA account for about 10 percent of

total U.S. imports of these products from all sources.

S U.S. imports of petroleum and energy-related

products from SSA decreased from $15 billion in

2000 to $14.3 billion in 2001, or by 5 percent. The

decrease was due primarily to decreased imports of

crude petroleum from Nigeria coupled with a drop in

the world price of crude petroleum during the period.

S Crude petroleum from Nigeria, Angola, and Gabon is

the primary U.S. import in this sector from SSA.

S The quantity of U.S. imports of crude petroleum and

refined petroleum products from Nigeria decreased by

5 percent from 2000 to 2001, primarily as a result

of continued supply disruptions resulting from the civil

unrest in Nigeria.

S The quantity of U.S. imports of crude petroleum from

Angola increased by 6 percent but decreased by 5

percent from Gabon during the period; however

Angola and Gabon each account for less than 1

percent of total U.S. imports of crude petroleum.

Key AGOA Trade Developments

S U.S. imports of coal and natural gas enter the U.S.

market unconditionally free of duty. The only

significant imports in this sector under the

provisions of AGOA (including GSP) from the SSA

are crude petroleum imports from Nigeria.

S Crude petroleum from Nigeria accounted for 80

percent of total sector AGOA imports from the

region in 2001. Crude petroleum from Gabon, the

ROC, and Cameroon together accounted for 16

percent and refined petroleum products from

Nigeria, the ROC, Ghana, Cameroon and South

Africa together accounted for the remaining 4

percent.

S The share of total U.S. sector imports from SSA

accounted for by imports entering the U.S. market

under the provisions of AGOA was 47 percent in

2001.

Key U.S. Export Developments

S The United States is a major world producer and

consumer of petroleum and petroleum-related

products and accounts for 2 percent of the world’s

estimated proved reserves of crude petroleum; 3

percent of natural gas reserves; 26 percent of coal

reserves; and 22 percent of the world’s refinery

capacity.

S SSA accounts for less than 1 percent of total U.S.

exports of the products in this sector.2 U.S.

exports to SSA consist of refined petroleum

products (85 percent) and specialty coals (14

percent).

S U.S. exports of petroleum and energy-related

products to SSA decreased, from $125 million in

2000 to $119 million in 2001, primarily because

the world price of crude petroleum decreased by

about $6 per barrel from 2000 to 2001. This

decrease in prices was due to a situation of excess

production capacity and stable production levels

despite fear that the September 11th terrorists

attacks on the United States would cause supply

disruptions.

S South Africa also continued to replace U.S. refined

petroleum products with domestically-produced

coal-based synthetic liquid fuels, which account for

more than 45 percent of all liquid fuels consumed

in South Africa.

S Nigeria is a market for U.S. exports of diesel and

bunker fuels as three of Nigeria’s four refineries

have had major supply disruptions due to safety

shutdowns since 1997. Because of these

shutdowns, Nigeria has been forced to import

refined petroleum products from the United States

and other world exporters to satisfy domestic

demand.

Share of total (percent)

85

14

1

Refined petroleum products

(2710, 2712-2715)

All other

Coal and coke (2701-2708)
135

Country/region Development

SSA There have been no major developments

during 2000-01. Nigeria, Angola, and

Gabon operate national petroleum companies, which are responsible for all exploration and development as well as

joint venture agreements involving crude

petroleum, natural gas, and refined petroleum products.

0 1000 2000 3000 4000 5000 6000

Nigeria

Guinea

Angola

Total

0

1000

2000

3000

4000

5000

6000

1997 1998 1999 2000 2001

INVESTMENT

Major Investments

S Angola’s national petroleum company, Sonangol, was

established in 1976. A hydrocarbon law passed in 1978

made Sonangol sole concessionaire for exploration and

production. Associations with foreign companies are in the

form of joint ventures and production sharing agreements.

S The Nigerian National Petroleum Corp. (NNPC) maintains

interests of 50 percent or more in production joint

ventures with large multinational petroleum companies that

produce more than half of Nigeria’s total production of

crude petroleum.

S During 2000-2001, joint ventures account for about 90

percent of Nigeria’s total production of crude petroleum;

however, foreign operators continue to be reluctant to

commit to exploration and development plans because

NNPC has not upheld its financial obligations in many such

programs.

S While a joint venture with Royal Dutch Shell produced

nearly 50 percent of Nigeria’s total production of crude

petroleum during 2000-2001, U.S. investment in the

industry has decreased significantly since 1998.

S Nigeria’s liquefied natural gas facility on Bonny Island,

completed in September 1999, was designed to process

252.4 billion cubic feet annually but has faced start-up

problems and damage caused by civil unrest.

S In September 2001, Shell reported that a flow station,

located in southern Nigeria, had been severely damaged in

an attack by armed youths. The flow station will be out of

operation for the next 18 months, with nearly 40,000

barrels per day of production shut in. In addition, since the

terrorist attacks in the United States on September 11th,

2001, OPEC production quotas resulted in cutbacks in

Nigerian production of crude petroleum.

S In South Africa in October 2000, Sasol announced the

formation of a joint venture with Chevron to commercialize

natural gas-to-liquids technology worldwide. The two

companies are partners and anticipate investments

totaling more than $5 million through 2010.

S South Africa’s prospects for sustained natural gas

production received a major boost in March 2000 with the

discovery of offshore reserves close to South Africa’s

border with Namibia.

S South Africa has been slow to develop its offshore

reserves of conventional crude petroleum but is developing

joint venture agreements with several multinational

petroleum companies to explore for and produce crude

petroleum.

Investment Issues

S Nigeria, Angola, and Gabon operate national petroleum

companies, which are solely responsible for all exploration

and development of energy resources.

S Generally, the national petroleum companies maintain a

majority share in any joint ventures with multinational

energy companies relating to development and production.

Multilateral Lending

S Under the terms of most joint venture agreements

between national petroleum companies and the

multinational energy companies, the multinational provides

the financing, technical expertise, equipment, and some

personnel for exploration, development, production, and

processing. In exchange for their investments, these

multinational companies retain a certain amount of the

production and/or discovered reserves.

Millions of U.S. dollars

U.S. sector SSA FDI position, 1997-2001

Millions of U.S. dollars

U.S. sector SSA FDI position, by country, 2001

Note.—Data for some countries are not disclosed owing to

confidentiality. U.S. FDI position is negative for some

countries.

Source: U.S. Department of Commerce, Bureau of

Economic Analysis.

Note.—Data for some countries are not disclosed owing to

confidentiality. U.S. FDI position is negative for some countries.

Source: U.S. Department of Commerce, Bureau of Economic

Analysis.

1,684

1,473

5,378

2,018

Major SSA sector investment policy developments

1,801

3,117

3,461

3,128

5,378
136

1 This sector includes Harmonized System chapter 27.

2 U.S. exports of crude petroleum have been prohibited

since 1973, except as approved by the U.S. Government.

TRADE-Continued

ENDNOTES
137

S Guinea: 95 percent of exports and 29 percent of the

state’s earnings (primarily bauxite), and employment for

about 40,000 people;4

S Lesotho: royalties from South African mining is one-third

of GDP;

S Mauritania: iron ore is responsible for 50 percent of

exports;

S Mozambique: 12 percent of GDP;

S Namibia: 60 percent of the country’s total export

earnings and 20 percent of GDP;

S South Africa: 31 percent of GDP (mainly processed

aluminum, ferroalloys, and steel);

S Tanzania: 40 percent of GDP;

S Uganda: 30 percent of GDP;

S Zambia: 60 percent of GDP from exports of copper, 20

percent from exports of cobalt; and

S Zimbabwe: 40 percent of foreign exchange earned from

exports of mineral resources.

S During 1999, SSA produced much of the world’s mined

supply of platinum group metals5 (PGMs) (63 percent),

chrome (55 percent), diamonds (55 percent), vermiculite

(48 percent), alumino-silicates (46 percent), vanadium (45

percent), cobalt (36 percent), manganese (32 percent),

fluorspar (28 percent), zirconium (24 percent), gold (24

percent), and titanium (23 percent).6 Several other metals,

such as iron, copper and aluminum also are produced,

although the SSA share of world production is not as

significant.

S The region has many mineral deposits that are among the

highest grade in the world, and several crucial metals

(PGMs, chrome, and cobalt) produced from these minerals

occur naturally in only a few areas of the world.

S South Africa is by far the region’s largest producer,

accounting for more than half of SSA’s output for many

minerals and metals. Gold and diamonds have been produced

at South Africa’s facilities for several hundred years, and on

massive industrial scale for well over one hundred years.

Anglo Platinum, the world’s biggest platinum producer, holds

about two-thirds of South Africa’s platinum reserves,

according to the government. Roughly half the country’s gold

reserves are controlled either by Anglo Gold or by Gold Fields

Ltd., both of whom operate many holdings elsewhere on the

continent and overseas.

S Other important producers include Cameroon and Ghana

(aluminum); Gabon, Guinea, and Mauritania (several

nonferrous metals); and Zambia, Democratic Republic of

Congo (DROC), and Angola, which cover the Copperbelt,

producing copper and cobalt.

S Most of SSA’s mineral production is manufactured into pure

form. There is little production of downstream products (such

as sheet, strip, wire, bars, rods, castings). Many of the pure

forms of metals and diamonds are exported. South Africa is

the exception as it produces downstream metal and metal

alloy products of steel, aluminum, and copper.7

S Despite significant production, the SSA minerals and metals

sector, especially outside South Africa, is considered

underdeveloped or in significant disrepair. Africa is now the

focus of mineral exploration and mine development for new

deposits and revitalization of existing operations by many

Canadian, South African and Australian companies, most

notably in cobalt, copper, gold and diamond projects. The

region’s contribution to the world in these commodities

should increase significantly in the future.

BACKGROUND

1

MINERALS AND METALS

Note.—Not including manufacturing production of fabricated forms. Total

is of those reporting.

Source: U.S. Geological Survey and World Bureau of Metal Statistics.

Share of total (percent)

Note.—Data are for mining and refining for reporting countries.

Source: USITC estimates based on data from CIA World Factbook

2001 and Mining Africa Yearbook 2002.

SSA sector production, by country, 2001

($205 billion)

SSA sector production, by product, 2001

($205 billion)

0 10 20 30 40 50 60 70 80

South Africa 62%

All other 12%

Tanzania 5%

Zimbabwe 5%

DROC 9%

Zambia 3%

S SSA’s extensive mineral resources have provided the basis

for substantial minerals and metals industries in

numerous African countries. The sector is one of the

most important in SSA, constituting a large portion of the

GDP of many countries, as well as employment and export

earnings.2

S Countries with significant mining dependence include the

following:3

S Botswana, with 80 percent of earnings from exports

and one third of total GDP from mining (primarily

diamonds);

S Central African Republic: 40 percent of GDP;

S DROC: 60 percent of GDP from mining (primarily

copper and cobalt);

Industry Overview

27

3

3

67

Uganda 4%

Diamonds, non-industrial

Steel

Gold

All other
138

BACKGROUND-Continued

Industry and Sector Issues

S Worldwide overproduction of most metals, coupled with

economic downturns in the United States, the EU

(primarily Germany) and Japan, has led to significant

price decreases for many minerals and metals in the

past five years. For example, during the period

1997-2001, the price of copper declined from $1.03

to $0.75 per pound; aluminum from $0.72 to $0.62

per pound; and gold from $331 to $294 per troy

ounce. Several base metals approached or set all-time

record low constant dollar values in 2001.

S In contrast, prices of PGMs have increased over the

same period because of strong demand from the

transportation sector (these metals are used in

catalytic converters) and partly as a result of

uncertainty regarding Russian supplies of these metals.

This benefits South Africa primarily.

S The South African mineral and metal sector is

experiencing significant competitive problems. Mineral

deposits have been extensively exploited and grades of

many deposits have been declining. Further, the

country’s mines are almost exclusively deep

underground operations. These factors contribute to

relatively high operating costs, and have especially

affected the South African gold mining sector, the

largest in the world, which has had to restructure and

rationalize.

S Political instability has caused a substantial contraction

of the vast Copperbelt minerals and metals sector.

These countries have rich copper and cobalt deposits

that are close to the surface, indicating the potential

for low-cost production. Internal strife has caused a

precipitous decline in production since the 1970s.

Reinvestment has been minimal, little new technology

has been adopted, and much of the equipment has

become antiquated and unreliable. Present operating

costs are substantial as a result. The Copperbelt is

indicative of SSA’s mineral export dependence, with as

much as 85 percent of Zambia’s historical GDP being

derived from metal sales.8

S In 1995, DROC was the continent’s fifth largest mineral

producer. However, cobalt production is now only 25

percent of its 1974 peak, copper is 7 percent of 1980

levels and current diamond production is 85 percent of

its 1986 high.

Economic and Trade Policy Developments

S Sub-Saharan African countries continued to liberalize

mining laws in an effort to attract foreign investment,9

although South Africa recently passed legislation that

converts all mineral rights from private to state

ownership (see investment issues section for details).

S In Zambia, the privatization of the major copper-cobalt

mines of the state-owned mining company Zambia

Consolidated Copper Mines (ZCCM) has not been

without difficulty and has yielded little return to the

government. The industry is in dire need of

reinvestment and revitalization. Anglo American, a

South African mining company, headed a consortium

that purchased the majority of the mines from the

government. First Quantum, of Toronto, Canada,

purchased other smaller holdings of the ZCCM sale.

S The DROC has enacted new mining legislation that

could help attract foreign investment back into the

country’s minerals and metals sector. The legislation

cuts income tax to 30 percent from 50 percent,

although royalties will now apply of 2 percent for base

metals and 4 percent for precious metals, gems and

diamonds. Generale des Carrieres et des Mines

(Gécamines), the state mining company, is currently

negotiating with several potential foreign investors,

including Kumba Resources Ltd., BHP Billiton, Phelps

Dodge Corp., Lundin Group, Rio Tinto, Anglo American plc

and First Quantum Minerals Ltd. Many of these

companies already have joint-venture agreements with

Gécamines.

S Many developed countries are instituting ”conflict

diamonds” policies and legislation.10 The World Diamond

Council, representing the diamond and diamond-containing

jewelry industries, and The Campaign to Eliminate Conflict

Diamonds, representing a number of international human

rights groups, have collaborated in the drafting of

legislation to address social concerns related to this issue.

As of November 18, 2002 pending legislation before the

U.S. Congress would prohibit imports of diamonds from

conflict countries without certification of uncut diamonds.

Countries affected include Sierra Leone, Angola, the

DROC, and Liberia.

S The U.S. Inter-Agency Market Impact Committee, which

plans disposals of material stored in the U.S. Defense

National Stockpile, approved disposing of 125,000 troy

ounces of platinum and 200,000 troy ounces of palladium

during fiscal years 1999 and 2000. This plan has yet to

be approved by Congress. Similarly, during 2001, the

International Monetary Fund proposed selling part of its

gold reserves to provide financial assistance for poor

countries. This proposal had the support of key IMF

members, including the United States. South African

Government officials and Anglo American Platinum (a

major South African producer) were concerned that such

sales would disrupt the market, and suggested that the

proposed sales be implemented over a long time period to

minimize market effects.
139

0 10 20 30 40 50 60 70

SSA sector global exports,

by HS chapter, 2000

($19.4 billion)

0 5 10 15 20 25 30

SSA sector global imports, by country, 2000

($4.9 billion)

TRADE

SSA sector global imports,

by HS chapter, 2000

($4.9 billion)

Source: United Nations.

Share of total (percent)

SSA sector global exports, by country, 2000

($19.4 billion)

Source: United Nations.

South Africa 36% All other 35%

Angola 3%

Mozambique 3%

Kenya 4%

Source: United Nations.

South Africa 76%

All other 9%

Zambia 2%

Angola 3%

DROC 5%

Source: United Nations.

Share of total (percent)

Source: United Nations. Source: United Nations.

26

20

11

8

56

14

14

5

Côte d’lvoire 3%

Ghana 4%

Nigeria 12%

6

6

6

17

Major Share of Major Import Share of

Import Total Item Total

Source (2000) (percent) (6-digit HS) (2000) (percent)

South Africa 11 Nonindustrial diamonds (7102.31) 5 ......... ......

United Kingdom 9 Iron or steel structures (7308.90) 4 ....... ......

Germany 8 Portland .............. cement (2523.29) 3 .............

China 8 Flat steel coils (7209.18) 2 ................. ...............

Italy 6 Glazed ceramic tiles (6908.90) 2 ................... .........

Iron or steel articles (7326.90) 1 .........

Major Share of Major Export Share of

Export Total Item Total

Market (2000) (percent) (6-digit HS) (2000) (percent)

United States 17 Nonindustrial diamonds (7102.31) 21 ....... ....

Belgium 14 Platinum (7110.11) 11 ............. ..................

Japan 13 Gold (7108.12) 9 ............... ........................

United Kingdom 12 Palladium (7110.21) 6 ..... ...................

Italy 10 Aluminum (7601.10) 5 ................. ...................

Germany 7 Ferrochromium (7202.41) 4 .............. ..............

Zimbabwe 2%

Guinea 3%

2

3

6

Articles of iron

or steel (73)

Iron and steel (72)

Diamonds and precious

metals (71)

Ceramic products (69)

Base metals tools

and cutlery (82)

Lime and cement (25)

Aluminum (76)

All other

Iron and steel (72)

Diamonds and precious

metals (71)

Copper (74)

Metal ores and

concentrates (26)

Lime and cement (25)

Aluminum (76)

All other
140

0 10 20 30 40 50 60 70

Source: Compiled from official statistics of the

U.S. Department of Commerce. Source: Compiled from official statistics of the

U.S. Department of Commerce.

Source: Compiled from official statistics of the

U.S. Department of Commerce.

0 10 20 30 40 50 60 70 80

U.S. sector imports from

SSA, by source, 2001

($3.1 billion)

TRADE-Continued

U.S. sector imports from SSA,

by HS chapter, 2001

($3.1 billion)

Share of total (percent)

U.S. sector imports under AGOA

(including GSP), by source, 2001

($319 million)

U.S. sector imports under AGOA

(including GSP), by HS chapter, 2001

($319 million)

All other 1%

Share of total (percent)

South Africa 90%

All other 7%

Guinea 3%

Source: Compiled from official statistics of the

U.S. Department of Commerce.

68

11

10

3

South Africa 99%

4

7 5

7

5

20

60 Precious stones and

metals (71)

Metal ores and

concentrates (26)

Iron and steel (72)

Aluminum (76)

All other

Precious stones and

metals (71)

Metal ores and

concentrates (26)

Iron and steel (72)

Aluminum (76)

All other

Iron and steel (72)

Aluminum (76)

Articles of iiron

and steel (73)

Glass and

glassware (70)

All other

Copper and articles

thereof (74)
141

U.S. sector exports to SSA,

by market, 2001

($250 million)

TRADE-Continued

U.S. sector exports to SSA,

by HS chapter, 2001

($250 million)

Source: Compiled from official statistics of the

U.S. Department of Commerce.

South Africa 39%

All other 21%

Angola 8%

0 10 20 30 40 50 60

Source: Compiled from official statistics of the

U.S. Department of Commerce.

Key U.S. Import Developments

S During 2001, U.S. sector imports from SSA of $3.1

billion were more than 10 times as much as U.S.

exports to SSA of $250 million. The U.S. trade deficit

decreased $150 million (5 percent) to $2.8 billion, as

U.S. imports fell by $119 million (4 percent) and

exports increased by $31 million (14 percent).

S Fifty percent of U.S. sector imports from SSA are

PGMs, all of which are from South Africa, which is the

major source of these metals to the world. Imports of

diamonds totaled $523 million in 2001, or 17

percent of the sector import total.

S South Africa is the leading U.S. sector supplier, by an

overwhelming margin, and increased its U.S. import

market share to 90 percent in 2001. The country is

the primary mine source for many specialty metals

(including PGMs) needed by the U.S. high-tech and

transportation industries. In some cases, such as

chrome, there is little alternative sourcing available.

S The decrease in U.S. sector imports during 2000-01 was

a result of decreased shipments from South Africa, mostly

of ferroalloys, especially ferrochrome and

ferromanganese. This decrease was partially offset by a

minor increase in imports of PGMs (platinum and

palladium imports were up $88 million due to increased

trading volume outpacing significant price declines, but

rhodium, indium, osmium, and ruthenium were down $80

million due to level volumes but significant price declines),

and diamonds, particularly non-industrial diamonds, which

increased substantially.

S The dutiable value of U.S. minerals and metals imports

from SSA decreased $201 million (62 percent) to $123

million in 2001. Slightly over 10 percent of imports were

subject to duties, and almost 99 percent ($121 million) of

dutiable imports were from South Africa.

S Duty-free imports of minerals and metals products from all

of SSA under the GSP program decreased $62 million (19

percent) to $256 million in 2001. Most GSP imports

were supplied by South Africa ($225 million, or 88

percent of total) and Zimbabwe ($19 million, or 7 percent

of the total). Ferroalloys accounted for almost half of the

GSP imports and were responsible for the decline,

declining $76 million, or 37 percent, during 2000-01.

S Final antidumping and countervailing duty orders were

instituted in 1999 for certain stainless steel plate in coils

from South Africa. These orders established an

antidumping margin of 37.77 percent and countervailing

duty of 3.95 percent. The entire region was granted

developing country exclusions from the 2002 steel 201

remedies.

S No other URA provisions in 2001 were identified to have

significant effects on U.S.-SSA trade in the minerals and

metals sector. The Doha Round Agreements are not

expected to have significant effect on U.S.-SSA trade in

the minerals and metals sectors.

Key AGOA Trade Developments

S U.S. sectoral imports from AGOA countries under the

AGOA/GSP trade programs were $319 million in 2001,

or 12 percent of total U.S. sectoral imports from AGOA

countries.

S Major import items under AGOA and GSP in 2001

included ferroalloys (44 percent of the total), and

aluminum alloy plate, sheet, strip (17 percent).

S South Africa supplied nearly all U.S. imports under AGOA

(including GSP) provisions in 2001. The ROC was the only

other significant AGOA exporter to the United States.

Sector imports under AGOA declined from the previous

year.

Key U.S. Export Developments

S U.S. exports to the region increased by $31 million (14

percent) over 2000, reversing the decline of the prior two

years and returning to levels of 1997-1998, although still

below 1996 levels.

S U.S. exports reflect the significant oil exploration and

oil-field development that is underway in SSA, primarily in

Nigeria, Angola, and surrounding areas. U.S. companies

are heavily involved. Steel products, such as tube/pipe,

barrels, and casings, and ancillary products such as

drilling muds and abrasives are the major exports.

Together, these products total 90 percent of the sectoral

and 50 percent of the entire U.S. exports to the region,

and increased by $49 million (89 percent) during

2000-01.

Share of total (percent)

46

14

9

Nigeria 15%

Chad 5%

Guinea 4%

Liberia 4%

Kenya 4%

5

5

21

Articles of iron

or steel (73)

Base metals tools

and cutlery (82)

Stone, plaster, etc. (68)

Precious stones

and metals (710

Glass and

glassware (70)

All other
142

TRADE-Continued

S Nonpowered handtools are also a major U.S. export to the

region. Much of SSA is agrarian and/or minerals-based,

and almost one-third of these exports are rock drilling or

earth boring tools, which are likely used by farmers and

mining companies.

S U.S. exports to South Africa in the minerals and metals

sector decreased by $21 million (18 percent) from 2000,

largely attributable to a $19-million decrease in exports of

PGMs. The majority of the decrease is in

semi-manufactured forms of platinum and palladium U.S.

exports of unwrought forms of platinum, palladium, and

rhodium to South Africa entirely ceased in 2001, reflecting

a shift of exports of the unrefined or unwrought forms to

other countries with refining and fabricating capabilities.
143

Country/region Development

Burkina Faso Implementing new mining law regulations

for law enacted in 1997.

Botswana Additional revisions to mining law.

DROC Government completed mining law revision that provides for investor security and

financial incentives.

Sierra Leone New mining law enacted to encourage

foreign investment.

South Africa Change in mining code for state to retain

mineral ownership, with lease provisions.

Tanzania New mining law enacted to encourage

foreign investment.

Uganda Revisions to mining law completed. Draft is

expected to make private-sector foreign

investment more likely, since government is

in favor of development of the mineral industry.

WAEMU countries Have created regional mining code to facilitate exploration.

Zambia Quantum Minerals purchased a majority

stake in Kansanshi (Zambian government

as junior partner) mine of Copperbelt. Developing plans to bring into production in

next few years.

Zambia Kvaerner Engineering and Construction

(South Africa) recently completed work on

Cobalt from Slag and Copper, the first major capital project undertaken in Zambia

for almost 30 years. The $100 million project upgrades and extends the Chambishi

metals treatment facility. Chambishi is

jointly operated by Avmin (90 percent)

and the Zambian government (10 percent).11

0

50

100

150

200

250

300

1997 1998 1999 2000 2001

0 20 40 60 80 100120140160180200

South Africa

Zimabwe

Total

INVESTMENT

Millions of U.S. dollars

U.S. sector SSA FDI position, 1997-2001

Millions of U.S. dollars

U.S. sector SSA FDI position, by country, 2001

Note.—Does not include mining activities. Data for

various countries are not disclosed owing to

confidentiality. U.S. FDI position is negative for some

countries.

Source: USITC estimate based on data from the U.S.

Department of Commerce, Bureau of Economic

Analysis.

Note.—Does not include mining activities. Data for various

countries are not disclosed owing to confidentiality. U.S. FDI

position is negative for some countries.

Source: USITC estimates based on data from the U.S.

Department of Commerce, Bureau of Economic Analysis,.

6

177

233

Major SSA sector investment policy developments

11

228

252 245

177
144

INVESTMENT-Continued

Major Investments

S Governments in the region actively promoted foreign

investment through enhanced financial, taxation, private

property, and regulatory laws. Despite this, investment

in mineral exploration expenditures declined $168 million

to $494 million in 2001 because of weak metal prices.

The general economic slowdown worldwide and the

depressed state of the minerals industries because of

oversupply have limited foreign investment in the SSA

minerals and metals sector.

S Less than one percent ($177 million) of the United

States’ total FDI to the world was earmarked toward

SSA’s metals sector, down 30 percent ($75 million)

from the 1999 high. The percentage of FDI to SSA’s

sector also decreased, almost by half, indicating

movement to other areas or sectors. Unreported,

because of company confidentiality reasons, were gold

processing activities in Ghana.

S Estimates indicate between $100 million to $150

million of U.S. investment went to metal and nonmetallic

mining ventures in SSA, which is down from about $200

million in the mid- to late-1990s.12 Notable was an

investment in bauxite mining in Guinea, and metals

mining ventures in South Africa and Zambia.

International partners significantly increased their

investment in Guinean bauxite mining in 2001.13 Bauxite

dominates the mining sector in the Guinean economy,

and the nation has more than one-third of global bauxite

reserves. Guinea holds around 40 percent of the world

bauxite market. General FDI in the mining and quarrying

portion of the sector since 1996 was targeted toward

the following countries: Botswana, Burkina Faso, ROC,

DROC, Côte D’Ivoire, Ethiopia, Ghana, Madagascar, Mali,

Namibia, Niger, Sudan, Tanzania, Togo, Zambia, and

Zimbabwe.14

S The most recent major financial acquisition investment

was the Africa Franco-Nevada of Canada purchase of

Gold Fields of South Africa for $1.7 billion in 2000.15

Newmont, of the United States, purchased

Franco-Nevada in 2001, making it the largest gold

mining company in the world, displacing Anglo Gold, a

subsidiary of Anglo American of South Africa.

S At the beginning of 2002, Anglo American announced

that it was pulling out of its investment in the Konkola

facilities, despite agreements to spend another $500

million in continuing and development capital. Zambian

and IFC officials have cited the low level of copper prices,

the global economic slowdown, and unanticipated

operational difficulties in Zambia as combining to give a

triple blow to Konkola Copper Mines’ profitability and

future prospects. These factors placed the survival of

these facilities in jeopardy. More importantly, the

development of the Konkola Deep, which was widely

expected to be the source of high-grade material for

another 20 to 40 years, is now in jeopardy.

S Almost concurrently, several other companies with

minority positions in the Copperbelt, notably First

Quantum of Canada, are reorganizing their focus away

from existing facilities to new opportunities. First

Quantum has chosen not to develop the Kolwezi and

Likasi tailings dump projects in the DROC. However, as

noted, they have purchased a majority stake in the

Zambian Kansanshi property, intending to bring it into

production in a few years, and are investing heavily to

expand its Bwana Mkubwa mine, which is operating so

efficiently that it is importing ore from DROC to process

in Zambia.16

S After several years of prospecting and development,

the Yatela Gold Mine–a joint venture between

AngloGold (40 percent), IAMGOLD (40 percent) and

the Mali Government (20 percent)–officially opened in

Mali in September 2001.

S After more than a year of negotiations with the

Angola Government, DeBeers announced in May

2001 suspension of all exploration and investment

activities in Angola. DeBeers held exclusive rights to

market Angola’s diamonds in a joint venture with

Endiama, a company run by the State. The Angolan

Government has awarded the marketing rights to an

Israeli firm.17

Investment Issues

S Several issues deter new investment and

reinvestment in existing facilities. These include the

following:

S Political risk. There have been significant strides in

stabilization in the past decade, but the

overwhelming presence and potential of

re-nationalization of mineral and metal assets

remains a concern for most foreign investors. A

recent example is the published concern that

Zambia may re-nationalize the Konkola copper

facilities.

S Health risk, including the need for malaria

prevention and treatment and the high HIV

infection rate. These risks, when coupled with an

additional cost for employee health protection,

diminish the financial attractiveness of any

potential investment. Health issues also make it

difficult to encourage suitable foreign technical

professionals to move to the region to manage

operations.

S The DROC, a major copper producer that has recently

undergone significant turmoil, has been ranked in the

lowest five countries of the world in economic

freedoms, according to a recent study. African

countries generally performed poorly in the study.18

S Zambia’s attempt to rid itself of government

corruption will be an important test of how African

states are able to adapt to the demand for clean

governance imposed by the African Union. This is

considered essential to the success of the New

Partnership for Africa’s Development. According to

local press, the change in the presidency in 2002 is

clouded with charges of corruption between Frederick

Chiluba, the outgoing president largely responsible for

the growth in the past few years, and his protege,

Levy Mwanamasa. In July, Parliament overturned the

constitutional immunity Chiluba had against charges of

corruption.19

S In early 2002, South Africa enacted the Minerals Bill,

which gives the government ownership of all of the

country’s mineral resources, which mining companies

can exploit only under license. The law calls for

licenses of up to 5 years for prospecting rights and

up to 30 years for mining rights. The purpose of the

law is to create opportunities for more black

ownership in the sector. The government claims there

will be automatic conversion of the “old order rights”

to “new order rights,” but admits that there may be a

temporary drop in investment, particularly while the

details of the law, regarding paying for the asset

rights, are worked out. It is claimed by the producers

that the change in reserve value, by reverting the

assets to the state, may affect the financial strength

of present companies operating in South Africa.20
145

INVESTMENT-Continued

Multilateral Lending

S The World Bank Group, through the IFC, approved

loans or other financial assistance for two mineral

and metal projects in SSA during fiscal year 2001.

These projects included $3.9 million in assistance

for upgrading a clay mining operation in Senegal

that will cost a total of $9.6 million and $700,000

in assistance to build a $1.6 million factory to cut

and polish gemstones in Zambia. The IFC also made

a commitment in late 2001 for a one-third equity

stake in a small company that is planning a $5

million mine development investment in Burkina

Faso. The World Bank provided a loan of $5 million

to the Government of Madagascar to study and

assess reform of the country’s mining policies and

regulations to stimulate private-sector

investment.21

S The World Bank is considering financial assistance

to Sierra Rutile, a company that mines rutile

(titanium oxide) that has been shut down since

1995 because of rebel activity. The Sierra Leone

Government and the U.S. and Australian companies

that own Sierra Rutile are negotiating with the

World Bank for an $80 million loan to re-open the

mine.

S The EU provided $12.5 million to rehabilitate a

government-owned gold mine in Burkina Faso. The

mine is expected to produce 1.5 to 2 tons per year,

and the government has agreed to privatize the

mine if it proves to be a viable enterprise.22

S The IFC and others have stepped in to prevent the

shutdown of the former Anglo American holdings of

Konkola Copper Mines (KCM), promising continuing

capital to keep the operations going, and to attract

potential investors through low-cost loans. The IFC

is requiring Anglo American to pay up to $200

million of the costs involved in the company’s

withdrawal from Zambia’s copper industry.23 Bank

officials stressed on several occasions that they

would help Zambia through the difficult times that

undoubtedly lie ahead. There is discussion of

re-nationalization by the local population.

Developmental capital spending has ceased for the

Konkola Deep Mining Project, which had been

expected to provide another 25 to 30 years of

mining life.24

S The growth of Tanzania’s mining sector has led to a

surge in foreign investment of more than 300

percent since 1994, making Tanzania among the

leading investment destinations in sub-Saharan

Africa. Tanzania attracted more mining exploration

expenditure in 1998 than any other African country,

including South Africa, with spending in nonferrous

minerals reaching nearly $58 million, some 13

percent of the African total. Investor sentiment is

more optimistic as a result of clear government

shifts away from socialist self-reliance and distrust

of foreign investment. In July 2002, Tanzania

launched an initiative supported by the World Bank

and the IMF, seeking to improve the investment

climate in the country. Tanzania’s Investors Round

Table brings together national and international

corporate leaders in an effort to enable a stronger,

direct partnership between business and

government in prioritizing and implementing

necessary reforms.25

S In DROC, lack of financing constrains the industry as

a whole. In Katanga Province, for example, current

exploitation rates represent about 20 percent of its

potential. Hesitation for increased spending

generally is attributed to continued political

uncertainty resulting from the murder of former

President Laurent Kabila in January 2001.

Developments in 2001, prior to Kabila’s death,

include the following:

S The government opened its diamond market, the

country’s principal source of foreign exchange,

by suspending a monopoly on buying and

exporting the gem stones held by the Israeli

Company Idi Diamonds since July 2000.26

S Phelps Dodge, BHP World Exploration, Anvil

Mining NL, and Oryx Natural Resources all

purchased options to invest in, develop and

manage concessions from the state-owned

Tenke Mining Corp’s African property interests,

in cobalt, copper, and diamonds.27

S Anvil Mining claimed that President Joseph

Kabila’s actions resulted in the emergence of

significant financial support and a very significant

re-engagement after many years of absence by

key multilateral organizations such as the

International Monetary Fund, the World Bank

and the United Nations.28

S The government suspended all managing

directors and board members of public sector

operations after allegedly discovering gross

mismanagement following an audit.29 President

Joseph Kabila then fired the heads of all public

sector companies, including Gécamines, the

state-owned copper and cobalt mining company.
146

1 This sector includes Harmonized System chapters 26,

68 through 69, 71 through 76, 78 through 83, and portions

of chapters 25 and 70.

2 The minerals and metals sector includes clays and

earths, sand and gravel, stone, cement and plaster, and

nonmetallic minerals; metal-bearing ores, concentrates, ash,

and residues; ceramic, glass, and fiberglass articles;

gemstones; iron and steel, base metals, precious metals, and

metal alloys in unwrought and scrap forms; ferrous and

nonferrous mill products (shaped by casting, forging,

machining, rolling, drawing, or extrusion operations); and

certain fabricated metal products, such as containers, wire

cables, chain, industrial fasteners, certain kitchen and sewing

implements, cutlery, nonpowered hand tools, construction

components, and builder’s hardware.

3 Infomine-africa.com, Mining Africa Yearbook 2002,

CD-ROM; and George J. Coakley, “The Minerals Industry of

South Africa,” Minerals Yearbook International 2000, U.S.

Geological Survey, found at Internet address

http://minerals.usgs.gov/minerals/pubs/country/2000/92

35000.pdf, retrieved June 8, 2002.

4 MBendi, “Guinea: Mining,” found at Internet address

http://www.mbendi.co.za/indy/ming/af/gu/p0005.htm,

retrieved Aug. 16, 2002.

5 The platinum group metals are platinum, palladium,

rhodium, ruthenium, iridium and osmium, and are collectively

known as PGMs.

6 The process of mining produces mineral products. Mining

activities also include the first level of processing, or

beneficiation, that separates the desired mineral from the

waste minerals or makes a concentrated form of the mineral.

The concentrated minerals need no further processing in

certain cases (some industrial minerals and diamonds) but

many must be manufactured into pure substances. In the case

of metals, the concentrated minerals are further refined to

pure metal. This unwrought pure form is the result of

processing at smelters, refineries, and other types of plants.

Further processing into wrought forms (wire, plates, sheets,

strip, etc.) is typical before metals are ready for use in

fabricated products. For most of these items, production

figures refer to the mineral or metal content of the mined

material. Some SSA countries have facilities for conversion to

the pure form, but other products are exported from the

region in mineral form. Few SSA countries have facilities for

conversion to wrought forms.

7 Coakley, The Mineral Industries of Africa.

8 John Chadwick, “The Zambian Copperbelt,” MINING

Magazine, Feb. 2002, pp. 64-70.

9 Composite of multiple unattributed references in various

issues of The Mining Journal LTD, London, 2001 and 2002,

and U.S. State Department reports available at

http://www.state.gov/p/af/ci/, first retrieved Mar. 20,

2002.

10 Conflict diamonds are rough diamonds, the importation

of which is prohibited by United Nations security council

resolutions because trade in these products fuels conflict.

Certain diamond-producing facilities in SSA are targets of

groups wanting to acquire control of valuable resources. The

funds derived from the sale of certain diamonds reportedly are

being used by rebels to finance military activities that include

the overthrow of legitimate governments, subverting

international stabilization efforts, and ethnic warfare. Source:

Senators Richard Durbin (D, IL), Mike DeWine (R, OH), and

Russell Feingold (D, WI), “To implement effective measures to

stop trade in conflict diamonds, and for other purposes.,” Bill

No. S.2027, 107th Congress, 2d Session, In The Senate of

the United States, introduced Mar. 18, 2002.

11 Gavin Horscroft, “Chambishi Metals,” MINING Magazine,

Feb. 2002, pp. 82-84.

12 Much of the data in the mining sector are withheld to

avoid disclosure of data of individual companies. The estimates

reflect a composite of industry analyst sources.

13 Bauxite, a mineral composite usually containing 60

percent alumina, is the primary mineral feeding the worldwide

aluminum industry.

14 Coakley, The Mineral Industries of Africa.

15 Infomine-africa.com, Mining Africa Yearbook 2002.

16 The Economist, “Copper Bottomed,” vol. 363, No. 8278,

June 22, 2002, p.18

17 Infomine-africa.com, Mining Africa Yearbook 2002.

18 James D. Gwartney and Robert A. Lawson, Economic

Freedom of the World: 2002 Annual Report, Sixth Edition,

Fraser Institute, found at Internet address

http://www.fraserinstitute.ca/shared/readmore.asp?sNav=pb

&id=329, retrieved July 10, 2002.

19 Asia Intelligence Wire, “Zambian mischief,” July 18,

2002.

20 NewsEdge Headlines, “SA Minerals Bill: Boost to Black

Economics,” June 21, 2002. Paragraph also synopsizes other

press reports through Aug. 1, 2002.

21 Infomine-africa.com, Mining Africa Yearbook 2002.

22 Ibid.

23 “KCM’s funding, fate is on the line at Anglo talks,”

American Metal Market, May 14, 2002, found at Internet

address http://www.amm.com/index2.htm.

24 The Economist, “Tragically undermined,” Special Report:

Zambian Copper, vol. 363, No. 8275, June 1, 2002, pp.

65-66.

25 Asia Intelligence Wire, “Tanzania convenes roundtable to

court new FDI.” July 18, 2002.

26 Mining Journal, “DRC revokes diamond monopoly,” vol.

336, No. 8631, Apr. 27, 2001; first reported by The

Johannesburg Star, April 23, 2001.

27 Infomine-africa.com, “Countries: CONGO DRC,” found at

Internet address

http://www.infomine-africa.com/CongoDRC.asp, retrieved July

18, 2002.

28 Anvil Mining NL, “Anvil Takes Major Step Forward with

Financing Facility to Initiate Development of Dikulushi,” Media

Release, July 10, 2001, found at Internet address

http://www.anvil.com.au/media/avl100701.htm, retrieved

Oct. 17, 2002.

29 Mining Journal, “Kabila sacks Gécamines head and

others,” vol. 337, No. 8650, Sept. 7, 2001.

TRADE-Continued

ENDNOTES
147

BACKGROUND

1

TEXTILES AND APPAREL

S Textiles and apparel production data for SSA are not readily

available. Based on U.S. Department of State information

and United Nations trade data, the top five SSA textiles and

apparel producers are Mauritius, South Africa, Kenya, and

Zimbabwe, and, until early 2002, Madagascar.2 Other

significant producers include Lesotho and Swaziland.

Encouraged by the employment and trade opportunities

offered by AGOA, numerous SSA countries are expanding

their textiles and apparel industries.

S Although their textile and apparel industries have been

growing in recent years, SSA countries together are still a

relatively small supplier of textiles and apparel to the global

market, accounting for less than 1 percent of world exports

of such goods in 2000. Textiles and apparel industries are,

nevertheless, a significant sector in industrial production

and a source of employment in a number of SSA countries.

S Mauritius’ apparel industry ranks second to sugar in driving

the country’s economic growth. South Africa’s textile and

apparel industry is the country’s sixth largest manufacturing

sector employer and the country reportedly has spent about

$900 million since 1994 to upgrade and modernize the

industry.3 South Africa’s textile industry directly employed

230,000 people and another 200,000 in dependent

industries such as transport and packaging in 1998.4

Kenya’s textile industry is the country’s largest

manufacturing industry and employer.5 As a result of

AGOA, Kenya’s apparel sector rose from 10 factories

producing $30 million in garment exports in 2000 to 24

factories producing $70 million in exports in 2001.6

S Apparel assembly accounts for the majority of total SSA

sector production and exports. Leading apparel products

include sweaters, trousers, and basic shirts. Because the

manufacturing of these articles generally involves

standardized runs, simple tasks, and few styling changes,

they are particularly suited to countries that are still in the

initial stages of industrialization.

S Although generally small, textile manufacturing in the SSA

countries has been growing. Some SSA countries produce

their own raw materials; for example, South Africa

produces wool, accounting for over half of the world’s supply

of mohair wool;7 and Madagascar, Swaziland, and Côte

d’Ivoire grow cotton. Other SSA countries lack access to

sufficient quantities of raw materials and fabrics and rely

heavily on imports from Asian and other suppliers.

Industry Overview Industry and Sector Issues

S SSA countries generally offer relatively low labor rates and

ample labor pools. In 2000, wage rates for Kenya were 60

cents per hour and for Madagascar were 37 cents per

hour. Fewer available workers and higher wage rates were

found in Mauritius at $1.47 per hour and South Africa at

$1.82 per hour, leading to a shift of some operations to

Madagascar, Lesotho, Mozambique, and other lower cost

SSA countries.8

S Political unrest in Madagascar following a presidential

election has led to transportation disruptions and some

apparel plant closings because of reduced levels of clothing

inputs. Plant closures included the shutdown of a sweater

factory and also the large knit shirting operations owned by

foreign investor Novel Denim Holdings, a Hong Kong-based

denim manufacturer. Novel Denim incurred $5.2 million in

costs associated with production disruptions and plant

closures.9

S SSA countries’ competitiveness has been hindered by

poverty and a resulting lack of capital, insufficient access to

quality raw materials, yarns, and fabrics, low industrial

development and weak domestic demand, along with

outdated technology, lower labor productivity–25 percent

lower than China and other low-cost suppliers10–and

increased input costs in recent years.11

S Inadequate infrastructure–roads in disrepair and poorly

developed transportation networks, port delays and

bureaucracy, and unreliable power supplies–constrain

textile and apparel production, delay delivery times, and

increase textile and apparel production costs. Natural

geographic barriers that landlock Uganda, Botswana, and

Zambia boost transportation costs and slow deliveries,

making these suppliers less attractive as textile and apparel

sources for the U.S. and EU markets.12

Economic and Trade Policy Developments

S Industrialization is a key concern of many SSA countries.

SSA countries such as Uganda, for example, have made a

commitment to expand their textiles and apparel industry in

order to boost the country’s level of industrialization.13

S SSA countries have been implementing various measures

and programs to boost their textile and apparel industries.

Until early 2002 when political strife disrupted textile and

apparel operations, Madagascar’s apparel industry had

expanded from the early1990s when export processing

zones (EPZs) were set up with such incentives as lower

corporate tax rates and the elimination of traditional local

ownership and local content requirements. The government

had also begun to privatize state-run industries.14 Until

early 2002, 140 of 230 companies established in

Madagascar’s EPZs, or more than half, were apparel

assembly operations and were the largest employers.15

S SSA countries have been working with the multilateral

lending institutions to expand their economies. See

investment section for information on recent projects in

Madagascar.
148

BACKGROUND-Continued

S Under U.S. law (title V of the Trade Act of 1974, which

authorizes the GSP program), the President may not

designate textiles and apparel subject to textile agreements

as eligible for duty-free treatment under the GSP. These

products were considered import sensitive. Consequently,

to date, a negligible amount of U.S. imports of textiles and

apparel from SSA countries have entered under the GSP.

S Beginning on Oct. 1, 2000, AGOA authorized preferential

treatment for qualifying textiles and apparel from eligible

SSA countries for 8 years. AGOA extends duty-free and

quota-free treatment to apparel assembled in SSA

countries from U.S. -origin fabrics, as well as specified

quantities of apparel made from “regional fabrics” that are

produced in SSA countries from U.S. or SSA yarns.

S Imports of apparel made in SSA countries from regional

fabrics are subject to an annual cap that began on Oct. 1,

2000, equal to 1.5 percent (in square meter equivalents)

of total U.S. apparel imports by quantity in the preceding

12-month period, and rising in equal annual increments

over 7 years to 3.5 percent in the final 1-year period

beginning Oct. 1, 2007.

S A special rule allows apparel entered under the cap from

lesser developed SSA countries to be made of third-country

fabrics through September 30, 2004.16

S On Aug. 6, 2002, the President signed into law the Trade

Act of 2002 (P.L. 107-210). The legislation amends the

AGOA by doubling the size of the cap; that is, changing the

applicable percentage from the current level of 1.5 to 3.5

percent to a level of 3 to 7 percent over the 8-year period.

The Trade Act also clarifies that preferential treatment is to

be provided for knit-to-shape garments assembled in SSA

countries and allows Namibia and Botswana to use

third-country fabrics under the regional fabric cap ( a

provision set aside only for lesser-developed countries)

through September 2004.17
149

SSA sector global exports,

by HS chapter, 2000

($2.3 billion)

0 5 10 15 20 25 30

SSA sector global imports, by country, 2000

($3.1 billion)

TRADE

SSA sector global imports,

by HS chapter, 2000

($3.1 billion)

Source: United Nations.

Share of total (percent)

SSA sector global exports, by country, 2000

($2.3 billion)

Source: United Nations.

South Africa 24%

All other 32%

Togo 5%

Kenya 4%

Mauritius 7%

Source: United Nations.

South Africa 26%

All other 9%

Kenya 3%

Madagascar 17%

0 10 20 30 40 50

Knit apparel (61)

Woven apparel (62)

Cotton textiles (52)

Wool textiles (51)

All other

Source: United Nations.

Share of total (percent)

Source: United Nations. Source: United Nations.

16

16

14

12

39

35

Madagascar 7%

Benin 9%

Nigeria 12%

11

8

23

Major Share of Major Import Share of

Import Total Item Total

Source (2000) (percent) (6-digit HS) (2000) (percent)

China 31 Used clothing (6309.00) 11 ............... ..............

Indonesia 10 Cotton fabrics (5208.52) 4 ........... ...............

Korea 8 Badges, etc. of man-made .................

United Kingdom 6 fiber (5810.92) 2 ....... ......................

France 5 ................

Major Share of Major Export Share of

Export Total Item Total

Market (2000) (percent) (6-digit HS) (2000) (percent)

EU 56 Cotton trousers (6203.42) 12 .................. ...........

United States 28 Cotton T-shirts (6109.10) 11 ....... ............

Iran 3 Wool sweaters (6110.10) 8 ................... ..............

Cotton sweaters (6110.20) 8 .............

Cotton shirts (6205.20) 7 ................

Zimbabwe 3%

13

4

9

Mauritius 42%

Cotton textiles (52)

Used clothing & made-up

textiles (63)

Man-made staple

fibers (55)

Woven apparel (62)

Man-made filaments (54)

Knit apparel (61)

All other
150

Source: Compiled from official statistics of the

U.S. Department of Commerce. Source: Compiled from official statistics of the

U.S. Department of Commerce.

Source: Compiled from official statistics of the

U.S. Department of Commerce.

0 10 20 30 40 50 60

Woven apparel (62)

Knit apparel (61)

All other

U.S. sector imports from

SSA, by source, 2001

($992 million)

TRADE-Continued

U.S. sector imports from SSA,

by HS chapter, 2001

($992 million)

Share of total (percent)

U.S. sector imports under AGOA

(including GSP), by source, 2001

($358 million)

U.S. sector imports under AGOA

(including GSP), by HS chapter, 2001

($358 million)

All other 4%

0 10 20 30 40 50 60 70

Woven apparel (62)

Knit apparel (61)

All other

Share of total (percent)

South Africa 21%

All other 8%

Kenya 7%

Source: Compiled from official statistics of the

U.S. Department of Commerce.

52

44

59

1

South Africa 9%

4

Lesotho 22%

Mauritius 24%

Madagascar 18%

40

Mauritius 11%

Lesotho 36%

Madagascar 26%

Kenya 14%
151

U.S. sector exports to SSA,

by market, 2001

($120 million)

TRADE-Continued

U.S. sector exports to SSA,

by HS chapter, 2001

($120 million)

Source: Compiled from official statistics of the

U.S. Department of Commerce.

South Africa 19%

All other 43%

Tanzania 8%

0 10 20 30 40 50 60 70

Source: Compiled from official statistics of the

U.S. Department of Commerce.

Key U.S. Import Developments

S U.S. imports of textiles and apparel from the SSA countries

rose by 26 percent in 2001, up from $992 million in

2000, which can likely be attributed to the implementation

of AGOA.

S In 2001, U.S. imports from top SSA textiles and apparel

suppliers Lesotho rose by 55 percent, Madagascar by 63

percent, and Kenya by 46 percent from the 2000 levels.

U.S. imports from South Africa rose by 21 percent,

whereas U.S. imports from Mauritius fell by 3 percent in

2001. The slower growth rates and downturn in imports

from South Africa and Mauritius can at least partly be

attributed to their higher production costs and inability to

use third-country fabrics.18

S Leading articles imported from the SSA countries were

cotton sweaters, trousers, and shirts, and wool or

cashmere sweaters.

Key AGOA Trade Developments

S In 2001, U.S. imports of textiles and apparel from SSA

countries under AGOA (including GSP) totaled $357.7

million, or 36 percent of total U.S. imports from the SSA

countries. Only 0.5 percent ($1.9 million) were

accounted for by imports entering under the GSP.

S The principal woven apparel articles (59 percent)

imported under AGOA included trousers and shirts. The

principal knit apparel articles (40 percent) included

cotton and wool sweaters and cotton shirts.

S A total of 85 percent of the articles imported from SSA

countries under the GSP were textile articles, primarily

transmission or conveyor belts, sails for boats, and

miscellaneous made-up textile articles.

S A total of 77 percent of U.S. imports of textiles and

apparel entered under AGOA in 2001 came from

Lesotho, Madagascar, and Kenya, lower-cost textile

producers, whereas only 20 percent of U.S. imports

under AGOA came from Mauritius and South Africa.

Key U.S. Export Developments

S SSA is a small export market for the U.S. textiles and

apparel industry, accounting for less than 1 percent

($119.9 million) of total U.S. exports in 2001. U.S.

exports to the region declined by 38 percent in value

during the 1997-2001 period. Increased competition

from Asian suppliers likely explains the decline in U.S.

exports to the region during the period.

S South Africa has consistently been the United States’ top

export market in SSA in recent years. U.S. textile and

apparel exports to South Africa totaled $22.4 million in

2001.

S The leading U.S. product exported to SSA in 2001 was

used clothing, which accounted for 51 percent of total

U.S. textile and apparel. Used clothing from the United

States is perceived as stylish and higher quality and

therefore often outsells apparel produced in domestic

apparel facilities.19 Other leading U.S. exports to SSA

include woven fabrics of synthetic filament; pile fabrics;

various made-up textile articles; and knitted or crocheted

fabrics.

S Since 1992, South Africa has been implementing a

significant 12-year tariff reduction program for textiles

and apparel. Textile tariffs are being reduced from 100

percent to 45 percent on clothing, from 50 percent to

25 percent on fabrics, from 35 percent to 17.5 percent

on yarn, from 15 percent to 10 percent on fibers, and

from 60 percent to 30 percent on household textiles.

Share of total (percent)

60

11

8

Nigeria 11%

Kenya 7% Benin 6%

5

16

Ghana 6%

Used clothing/

textiles (63)

Man-made filaments/

woven fabrics (54)

Knitted/crocheted fabrics (60)

Cotton yarns/fabrics (52)

All other
152

Country/region Development

Mauritius Adopted new investment promotion act in

December 2000 to streamline legal framework and enhance investment promotion

and facilitation.21

Madagascar Until early 2002, the textile and apparel

industry had grown steadily since the establishment and expansion of export processing zones (EPZs) that had begun 1990.

The EPZs have offered several investment

incentives, boosted textile and apparel

manufacturing.

Lesotho Following political unrest in the late 1990s,

the Government introduced incentives to

attract foreign investors (principally from

Taiwan, South Korea and South Africa) to

the local economy. Generally FDI is concentrated in the manufacturing sector.

South Africa The South African government actively

seeks foreign investment and conducts investment promotion efforts to attract U.S.

investment in its textiles, apparel, and other priority industries. Policies to boost investment include allowing foreign investors 100 percent ownership, eliminating

most foreign exchange controls, and permitting foreign firms to be eligible for export incentive programs, tax allowances,

and other trade regulations.22

INVESTMENT20

Major Investments

S Although most FDI in Mauritius has been concentrated in

low-skill manufacturing activities in the EPZs, such as

textiles and apparel, FDI in these zones totaled only

$300,000 in 2000. AGOA has reportedly prompted

several apparel companies to open regional buying

offices in Mauritius: Mast Industries Ltd. (subsidiary of

the Limited), the Gap, Eddie Bauer, and William E.

Connor. Also, American & Efird Inc. began its operations

of a joint venture thread dyeing plant. Country sources

report that AGOA is encouraging foreign investment by

firms in China, India, and Italy to construct cotton

spinning mills.23 Shanxi Tianli Enterprises Ltd. of China

began construction of a $60 million cotton yarn-spinning

mill in Mauritius in early 2002.24

S Major known U.S. investors in South Africa reportedly

include Levi Strauss and Sara Lee.25 Since AGOA was

implemented, U.S. apparel buyers pursuing business in

South Africa include Victoria’s Secret, the Gap,

Nordstrom’s, J.C. Penney, and Wal-Mart.26

Major SSA sector investment policy developments S FDI investment in Lesotho is primarily concentrated in

the manufacturing sector which includes textiles and

apparel production. As in many SSA countries, Asian

investors (Chinese, Taiwanese and South Korean) as well

as investors from South Africa dominate FDI in Lesotho.

Chinese-owned operations reportedly have been the

principal suppliers to the U.S. market.27 Several

Taiwanese garment producers have opened large

factories to take advantage of AGOA.28 Currently, there

are no known significant U.S. textile investors in

Lesotho.29

Investment Issues

S Political instability in several SSA countries, such

Madagascar30 and Côte d’Ivoire, have disrupted textile

operations and led to some plant closures and could

discourage new foreign direct investment.

Multilateral Lending

S In 2001, the International Finance Corporation approved

a $27 million project and a loan of up to $8.5 million to

modernize the manufacturing equipment, capacity, and

facilities of Cotona, the largest vertically integrated textile

manufacturer in Madagascar.31
153

TRADE-Continued

ENDNOTES

1 This sector includes Harmonized System chapters 50,

53-63, and parts of chapters 51 and 52.

2 Niki Tait, “Prospects for the Textile and Clothing

Industry in Madagascar,” Textile Outlook International,

March-April 2002, p. 131.

3 Trade and Investment South Africa, “Trade and

Investment in South Africa: the South African Textile and

Clothing Industry,” found at Internet address

http://www.isa.org.za/textile/sa_textile.asp, retrieved Mar.

18, 2002.

4 Nazeem Sterras, “Industry Sector Analysis: Textile and

Apparel Industry-South Africa,” Tradeport, September 1998,

found at Internet address http://www.tradeport.org/

ts/countries/safrica/isa/isar0016.html, retrieved Apr. 2,

2002.

5 USDA, FAS, “The Kenya Cotton Industry–2001,” Gain

Report #KE1006, Oct. 29, 2001, p .2.

6 U.S. Department of State telegram, “Without

Assistance to Local Textile Producers, Kenyan Garment

Exports Will Lose Comparative Advantage,” message

reference No. 4307, June 6, 2002, prepared by U.S.

Embassy, Nairobi.

7 Anton Galli, “Textiles in Africa: Depressed But Not

Without Hope,” Textile Asia, April 2001, p. 41.

8 In 2002, however, the political crisis in Madagascar

reportedly forced some Mauritian companies to partly

relocate some of the operations they had established in

Madagascar back to Mauritius. See Emerging Textiles.com,

“Mauritius Intends to Become a Regional Hub,” found at

Internet address http://www.emergingtextiles.com, Apr. 4,

2002, retrieved June 26, 2002.

9 Textile Outlook International, “AGOA: A Flash in the

Pan? Or a Real Opportunity for Economic Development in

Sub-Saharan Africa?”, March-April 2002, p. 3; U.S.

Department of State telegram, “Madagascar Election: The

Economic Impact of Civil Protests,” message No. 346,

prepared by U.S. Embassy, Antananarivo; and Emerging

Textiles.com, “Madagascar’s Crisis Nearing End,” found at

Internet address http://www.emergingtextiles.com, June

14, 2002, retrieved July 8, 2002.

10 Tait, “Prospects for the Textile and Clothing Industry in

Madagascar,” p. 145 and Anton Galli, “Textiles in Africa:

Depressed, But Not Without Hope,” Textile Asia, Apr. 2001,

p. 41.

11 International Textile Manufacturers Federation, “South

Africa,” Country Statements 2000, September 2000, p. 20.

12 Peter Steele, “AGOA: New Opportunities for the Textile

and Clothing Industries in Sub-Saharan Africa,” Textile Outlook

International, March-April 2002, p. 99.

13 Scott Malone, “Uganda Aims to Boost Apparel,”

Women’s Wear Daily, May 13, 2002, p. 10; and

TextileWeb, “Ugandan President Discusses with Textiles

Companies on Strategies of Development,” found at Internet

address http://www.textileweb.com/content/news/

article.asp?docid={c151f686-7489-11d6-a789-00d0b7694

f32}, retrieved June 6, 2002.

14 Helene Cooper, “Can African Nations Use Duty-Free

Deal to Revamp Economy?” Wall Street Journal, Jan. 2,

2002, p. A1; and Tait, “Prospects for the Textile and

Clothing Industry in Madagascar,” p. 140.

15 Tait, “Prospects for the Textile and Clothing Industry in

Madagascar,” p.141.

16 The AGOA defines a lesser-developed SSA country as

one that had a per capita gross national product of less than

$1,500 in 1998 as measured by the World Bank.

17 Although Botswana and Namibia do not qualify as

lesser developed countries, because they do not have

fabric-making capacity, they were included in the list of SSA

countries eligible to use third-country fabrics for a limited

period to aid in the development of their textile and apparel

industries.

18 Mauritius and South Africa do not qualify for lesser

developed beneficiary SSA country status and must use

SSA or U.S. materials to qualify for quota- and duty-free

access to the U.S. market. Lesser developed SSA

countries however, can use third-country fabrics from any

source they choose. Most third-country fabrics are

imported from Asian suppliers.

19 Jon Jeter, “The Dumping Ground: As Zambia Courts

Western Markets, Used Goods Arrive at a Heavy Price,”

Washington Post, Apr. 22, 2002, p. A1.

20 Data on U.S. foreign direct investment position in

the SSA textiles and apparel sector are not available.

21 U.S. Department of State telegram, “Mauritius:

2001 Investment Climate Statement,” message reference

No. 871, July 27, 2001, prepared by U.S. Embassy, Port

Louis.

22 U.S. Department of State telegram, “Investment

Climate Statement for South Africa FY 2001,” message

reference No. 4068, July 16, 2001, prepared by U.S.

Embassy, Pretoria.

23 U.S. Department of State telegram, “Mauritius:

2001 Investment Climate Statement.”

24 U.S. Department of State telegram, “Updated

Information for Use in 2002 President’s Report on AGOA,”

message reference No. 451, Apr. 17, 2002, prepared by

U.S. Embassy, Port Louis.

25 U.S. Department of State telegram, “Investment

Climate for South Africa - FY 2001.”

26 U.S. Department of State telegram, “Scenesetter

for USTR Zoellick: AGOA is working in South Africa,”

message reference No. 772, prepared by U.S. Embassy,

Pretoria, Apr. 12, 2002.

27 Steele, “AGOA: New Opportunities for the Textile and

Clothing Industries in Sub-Saharan Africa,” p. 99.

28 Angela Mackay, “Africa Woos Far Eastern Fashion

Factories,” Sunday Business, Sep. 23, 2001.

29 U.S. Department of State telegram, “Lesotho

Investment Climate Statement 2002,” message reference

No. 407, June 13, 2002, prepared by U.S. Embassy,

Maseru.

30 U.S. Department of State telegram, “Madagascar

Election: The Economic Impact of Civil Protests,” message

reference No. 346, prepared by U.S. Embassy

Antananarivo, Feb. 8, 2002.

31 International Finance Corporation, “Summary of

Project Information - Project Cotona III - Project number

8660,” found at Internet address

http://wbln0018.worldbank.org/IFCExt/spiwebsite1.nsf/f

f6b5ca54705f90f85256c55004c6db3/ef997ef3f4f972

4585256a3b007c6f39?OpenDocument, retrieved July 3,

2002.

155

CHAPTER 6

Country Profiles

This chapter presents economic data on the 48 countries of SSA. It consists of four

sections. The first section briefly discusses the region, broadly comparing countries and

identifying common factors. The second section discusses the tariff structure of SSA

countries. The third section consists of technical notes regarding data and information

sources. The last section consists of the 48 country profiles.

Regional Overview1

SSA still faces a number of barriers to achieving sustained economic growth. In

general, Africa’s share of world FDI has fallen in the last two decades; foreign aid

levels have subsided; and most commodity prices (SSA’s primary exports) have

declined substantially, deteriorating its terms of trade. The estimated 6 percent annual

real growth rate necessary to achieve significant poverty reduction and sustainable

development continues to elude the region.2 Despite these barriers, SSA generally

experienced a relatively strong 4.3 percent GDP growth rate in 2001. Africa’s

relatively strong economic growth in 2001 was in part because of robust agricultural

growth in East Africa, cessation of some conflicts, and better macroeconomic

management.3 There were, however, significant disparities in growth ranging from

exceptional growth in petroleum-rich Equatorial Guinea (65 percent) to negative

growth in Zimbabwe (-7.5 percent).4 Total GDP for SSA was $323 billion in 2000, a 1

percent increase ($3.3 billion) over 1999.5 Total GDP fell to $167 billion, a 48 percent

decrease from the total SSA figure, when South Africa and Nigeria were excluded.

The average real GDP per capita in 2000 was $984 (figure 6-1).6 The top ranking

countries were Seychelles, Mauritius, Gabon, South Africa, and Botswana. The

countries with the lowest per capita GDP were Ethiopia, Burundi, Eritrea, Sierra Leone,

and Malawi. A total of 36 countries, or 80 percent, ranked below the region’s average

per capita GDP.

External debt levels remain high for many SSA countries. One indicator of the relative

burden of debt levels on SSA countries is the debt-to-GDP ratio. Namibia, Botswana,

1 Data for tables and figures in this introductory section are from the World Bank, African

Development Indicators 2002 unless otherwise indicated.

2 United Nations, Economic Development in Africa, (New York and Geneva: 2001).

3 United Nations Economic Commission for Africa, Economic Report on Africa 2002 (Ethiopia,

2002), passim.

4 Ibid.

5 World Bank, African Development Indicators 2002 (Washington, DC: 2002).

6 Ibid.
0 1000 2000 3000 4000 5000 6000 7000 8000

Figure 6-1

Real Per Capita GDP, 2000 (constant 1995 US$)

Ethipoia

Brundi

Guinea-Bissau

Eritrea

Niger

Sierra Leone

Chad

Mozambique

Mali

Madagascar

Rwanda

Nigeria

Burkina Faso

Tanzania

Angola

Central African Republic

Togo

Uganda

Gambia, The

Sudan

Comoros

Kenya

Benin

Ghana

Zambia

Mauritania

Guinea

Zimbabwe

Congo, Republic of

Lesotho

Cameroon

Senegal

Djbouti

Equatorial Guniea

Swaziland

Namibia

Bostwana

Gabon

Cape Verde

Mauritius

Seychelles

South Africa

Note.—Due to lack of data, DROC, Liberia, and Somalia have not been included.

Source: World Bank, African Development Indicators, 2002.

Malawi

São Tomé and Principe

Côte d’lvoire

156
157

South Africa, Swaziland, and Eritrea have relatively low debt-to-GDP ratios of less

than 0.21. São Tomé & Principe, Guinea-Bissau, the Republic of the Congo,

Mozambique, and Zambia ranked as the countries with the highest debt-to-GDP ratios

with ratios exceeding 1.7 (figure 6-2). Another factor further exacerbating the debt

burden was the declining levels of aid to SSA. For example, aid to the continent fell

from $28.6 billion in 1990 to $16.4 billion in 2000.7

While the value of world trade has tripled in the last two decades, the value of SSA’s

world trade has increased by only 10 percent.8 One factor was SSA’s continued heavy

reliance on exports of primary commodities, such as coffee, tea, copper, and cocoa,

many of which have been experiencing declining international prices. Madagascar,

Mauritius, Senegal, Sierra Leone, and the countries of the Southern African Customs

Union (primarily South Africa and Lesotho) rank among the few SSA countries to have

successfully diversified (table 6-1).9 As mentioned, many sub-Saharan countries

experienced low levels of investment. Although global FDI increased 18 percent in

2000, FDI inflows to Africa have fallen, bringing the continent’s share of world FDI to

less than 1 percent.10 Privatization, a primary vehicle for investment, also experienced

a decline.While previous years have seen the privatization of relatively politically easy

parastatals, many countries are encountering the more politically difficult

privatizations that have provoked resistance from trade unions and the general public.

In addition, many of the remaining companies are deep in debt, compete with some

companies that remain heavily state controlled, or operate in sectors where

government price controls still prevail, thereby inhibiting new investment.11 The African

Trade Insurance Agency was launched in August 2001 to provide political risk

insurance, to promote trade, and, more broadly, to improve the investment climate.12

A concern for SSA is the HIV/AIDS pandemic and its impact on the labor force and

SSA economic development. HIV/AIDS has a significant adverse impact on life

expectancy and labor productivity. One health writer pointed out that although the

epidemic’s effects varied by African country, by the end of 2000, 25.3 million people

were infected in SSA. This included 3.8 million new infections in 2000 and an average

HIV rate of 8.8 percent throughout Africa.13 According to officials of UNAIDS and the

World Health Organization, by 2010 some of the more severely affected countries

could experience an 8 percent drop in per capita GDP due to the effects of AIDS and

HIV.14

7United Nations, Independent evaluation of the implementation of the United Nations New Agenda

for the Development of Africa (New York: June 2002).

8 John Murphey, “Africa Strives to Sell to Others,” Baltimore Sun, June 10, 2002.

9 Economist Intelligence Unit, “Commodities – Primary Mover?”July 18, 2002.

10 Stephen Williams, “Slump in African FDI,” African Business, January 2002.

11 Neil Ford, “Privatization in Africa,” African Business, May 2002.

12 UNCTAD, World Investment Report 2001, (Geneva: 2002).

13 Jeff Gow, “The HIV/AIDS Epidemic in Africa,” Health Affairs May/June 2002.

14 UNAIDS and WHO, AIDs Epidemic Update - December 2001, (Geneva: 2001).
012345

Figure 6-2

Debt-to-GDP Ratio, 2000

Burkina Faso

Gabon

Guinea-Bissau

Benin

Angola

Equatorial Guniea

Gambia, The

Tanzania

Zambia

Cameroon

Congo, Republic of

Chad

Niger

Ghana

Central African Republic

Eritrea

Rwanda

Comoros

Kenya

Cape Verde

Mozambique

Lesotho

Uganda

Togo

Nigeria

Senegal

Sudan

Mali

Malawi

South Africa

Brundi

Guinea

Djibouti

Swailand

Zimbabwe

Mauritania

Seychelles

Madagascar

Botswana

Ethiopia

Note.—Due to lack of data, DROC, Liberia, and Somalia have not been included.

Source: World Bank, African Development Indictors, 2002 and USITC analysis.

Mauritius

Nambia

Sierra Leone

Côte d’lvoire

São Tomé and Principe

158
159

Table 6-1

Share dependance on exports of primary products, selected sub-Saharan

African countries, 1998-2000

Percent

Country

Angola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Zambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Democratic Republic of the Congo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Côte d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Zimbabwe ......................................................... 72

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

SACU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Madagascar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Sierra Leone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Source: EIU, “Commodities – Primary Mover?” July 18, 2002.

Tariff Structure

Most of the governments in SSA are WTO Members or are involved as WTO

observers.15 Thirty-eight governments in SSA are WTO Members, while three others

have established accession working parties,16 and others have requested observer

status without as yet electing to accede to the WTO (table 6-2).17

Despite their WTO participation, accurate tariff information for SSA is scarce. In the

situations where tariff data for sub-Saharan countries are available, the information

can be spotty, inconsistent, and nontransparent. When a picture does emerge of

African tariff regimes, it generally indicates high tariffs that are likely to hinder, rather

than facilitate, trade. Common among WTO schedules and other tariff information

available are high to prohibitive tariffs (e.g., tariffs averaging from 35 to 100 percent),

as well as extra import charges, taxes, or fees that do not promote a transparent trade

environment that, in turn, could facilitate expanded trade.

15 The following 10 governments of SSA are not WTO Members: Cape Verde, Comoros, Eritrea,

Ethiopia, Equatorial Guinea, Liberia, São Tomé and Principe, Seychelles, Somalia, and Sudan.

16 WTO accession working parties were established for the following SSA countries: Cape Verde

(July 2000), Seychelles (May 1995), and Sudan (November 1994).

17 The following SSA countries have requested WTO observership: Ethiopia (October 1997),

Equatorial Guinea (March 2002), Liberia (June 2000), and São Tomé and Principe (January 2001).

Countries with established WTO accession working parties also enjoy observership status, namely, Cape

Verde, Seychelles, and Sudan. See WTO, WT/ACC/11/Rev. 1 (09.vii.02.), WT/L/448 (03.iv.02.),

WT/L/357 (15.vi.00.), WT/L/389 (25.i.01.)
160

Table 6-2

Sub-Saharan Africa Tariff Averages

Country Agricultural Industrial

Agricultural

and Industrial

WTO members:

Angola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.3 80.0 (1

)

Benin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 11.0

Botswana . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 8.6 8.5

Burkina Faso . . . . . . . . . . . . . . . . . . . . . . . . 25.9 23.5 (1

)

Burundi . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 7.4

Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . 21.1 18.0 (1

)

Central African Republic . . . . . . . . . . . . . . . 21.1 17.4 (1

)

Chad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.9 15.6 (1

)

Congo, Democratic Republic . . . . . . . . . . . . 19.5 20.0 (1

)

Congo, Republic . . . . . . . . . . . . . . . . . . . . . 17.8 17.5 (1

)

Côte d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . . 19.7 18.8 (1

)

Djibouti ............................ 22.5 32.0 (1

)

Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.5 17.2 (1

)

Gambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 13.6

Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.2 13.8 (1

)

Guinea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 16.4

Guinea-Bissau . . . . . . . . . . . . . . . . . . . . . . . 40.0 50.0 (1

)

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.6 16.5 (1

)

Lesotho . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 8.6 8.5

Madagascar . . . . . . . . . . . . . . . . . . . . . . . . 5.6 6.0 (1

)

Malawi . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.5 15.5 (1

)

Mali . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.1 10.4 (1

)

Mauritania . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 20.3

Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.7 19.2 (1

)

Mozambique . . . . . . . . . . . . . . . . . . . . . . . . 19.9 16.2 (1

)

Namibia . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 8.6 8.5

Niger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 18.3

Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.5 20.2 21.8

Rwanda . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.8 27.5 34.8

Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 12.3

Sierra Leone . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 21.0

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 8.6 8.5

Swaziland . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 8.6 8.5

Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.1 18.0 (1

)

Togo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.6 13.3 (1

)

Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.2 8.5 (1

)

Zambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.1 14.4 (1

)

Zimbabwe .......................... 27.7 17.3 (1

)

WTO Average . . . . . . . . . . . . . . . . . . . 18.6 19.0 14.6

Non-WTO members:

Cape Verde . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 20.0

Comoros . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) (1)

Eritrea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) (1)

Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.1 31.7 (1

)

Guinea, Equ. . . . . . . . . . . . . . . . . . . . . . . . . 21.1 18.4 (1

)

Liberia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) (1)

São Tomé . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) (1)

Seychelles . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) (1)

Somalia . . . . . . . . . . . . . . . . . . . . . . . . . . . . (

1

) (1) 23.2

Sudan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.4 4.7 (1

)

Non-WTO average . . . . . . . . . . . . . . . . 23.5 18.3 21.6

All sub-Saharan Africa . . . . . . . . . . . 21.0 18.6 18.1

1 Not available.

Note.–Simple average tariff data for sub-Saharan Africa is reported by separate agricultural and

industrial sectors where available, or by a single combined average tariff or if more current. Because of the scarcity of tariff data for sub-Saharan Africa, the data reflect tariff rates reported for

various years from 1993 to 2001 and the data reflect a mix of applied and bound tariff rates.

Source: Compiled by USITC from data of the WTO and World Bank.
161

Tariff Data, Availability, and Comparability

The tariff information available for SSA and used in this report comes primarily from

sources such as the WTO, UNCTAD, and the World Bank. These data include the–

S WTO, Results of the Uruguay Round, CD-ROM;

S WTO Trade Policy Reviews (CD-ROM and from the WTO website at

www.wto.org);

S WTO Integrated Data Base (CD-ROM, version 4);

S UNCTAD TRAINS for Windows database CD-ROM;18 and

S World Bank, World Development Indicators 2002.

The coverage of different SSA countries varies among these sources, but no one source

covers all 48 countries. The WTO database of the Uruguay Round results covers 38

countries–the broadest coverage–whereas the UNCTAD TRAINS disc covers 16

countries, and the World Bank website covers 11, with some overlap involved among

all three sources.

Comparability also varies among these sources. The tariff information from WTO

national schedules of concessions typically represents the maximum tariff that a

government agrees can be levied legally–in effect a tariff rate ceiling for each product

category.

Bound tariff rates can contrast sharply with applied tariff rates typically published in

national tariff schedules. Although the bound rate is the maximum possible tariff

charge that can legally be levied under the GATT on an import, the applied rate is the

standard tariff charge commonly levied on an import in daily commerce.

Although the bound tariff rate and the applied tariff rate for an imported article can be

the same or approximately so (i.e. the applied rate may be equal or near the bound

rate), the two rates could differ significantly in situations where a government has

agreed during negotiations only to a bound rate that is greater than the applied tariff

rate typically charged. Thus, obtaining a tariff binding may be an initial goal of

negotiators, whereas obtaining a tariff binding at a lower applied tariff rate may

prove a subsequent goal.

A bound tariff rate higher than the applied rate permits a government to raise tariff

rates above the applied tariff rate as an instrument of trade policy without the required

payment of trade compensation that would otherwise be due under WTO multilateral

trade rules to a trading partner whose exporters are suddenly confronted with

additional tariff duties. A large difference between standard applied tariff rates and

higher bound tariff rates might act as a brake on expanding trade if it suggests to

traders an unpredictable tariff policy.

18 TRAINS is the acronym for the Trade Analysis Information System.
162

Commitments in the WTO schedules are being phased in over various implementation

periods, and so may not be the tariff rate currently imposed on a product.

Market-access commitments for most industrial products (HS chapters 25 to 97) were

phased in with five equal-increment reductions starting on the Jan. 1, 1995,

establishment of the World Trade Organization, and the final rates were to enter into

effect at the start of 1999.

However, market-access commitments for agricultural products (HS chapters 1 to 24)

were to be phased in over implementation periods that varied by a WTO Member’s

level of economic development:19

S Developed country WTO Members had 6 years to phase-in their agriculture

commitments;

S Developing country WTO Members had 10 years to phase-in their agriculture

commitments; and

S Least developed country WTO Members were not required to make

agricultural market-access commitments.

Consequently, although developed country agriculture commitments were to be in

place at the start of 2000, developing countries have until 2004 to finish phasing in

their agricultural market-access commitments. Moreover, least developed

countries–the status for much of SSA–were not required to make agricultural

market-access commitments in the Uruguay Round.

In contrast to most WTO tariff data publically available, the tariff information from the

UNCTAD database and World Bank sources appears to be based largely on applied

tariff rates. Thus, the WTO schedules cover the widest array of sub-Saharan countries,

but reflect a higher average tariff rate (comprising bound rates) in their coverage,

compared to calculations derived from national tariff schedules where applied tariff

rates are shown. In addition, the version or year of a tariff schedule may affect the

utility of available tariff information as well. For example, South African tariff

schedules for 1997, 1998, 1999, or other years may all be available, which will affect

in turn the five countries that are party to the Southern African Customs Union,

depending on which schedule is selected.

Other tariff information is available but only adds to the mixture in terms of data

comparability. The WTO Integrated Data Base PC CD-ROM (revision 4) provides tariff

information for a very few SSA countries (Madagascar, Mali, and Togo), but typically

provides applied tariff rates.

In March 2002, the WTO revised its listing entitled “Tariff Information Available in the

Secretariat.”20 It updates the list of available tariffs and their latest modifications as of

19 WTO, “Tariff Information Available in the Secretariat,” revision, G/MA/TAR/3/Rev.7, Mar. 1,

2002.

20 To some extent, implementation dates also varied.
163

Mar. 1, 2002. It is drawn from three sources: national editions of the customs tariffs,

publications of the International Customs Bureau in Brussels, Belgium; and the German

Bundestelle fuer Aussenhandelsinformation (BFAI). The list indicates that, although

many SSA governments have some tariff schedules on file in Geneva with the WTO

Secretariat, the WTO has no tariff information available for WTO members Burundi,

Djibouti, Gambia, and Rwanda; for non-WTO members Cape Verde, Eritrea,

Ethiopia, Equatorial Guinea, Liberia, São Tomé and Principe, and Somalia; nor for a

number of regional trade arrangements such as COMESA, SADC, and WAEMU.

Glossary and Definitions

Definitions used in table 6-2 and this tariff structure section include the following:

S Agriculture tariff averages are a simple average of rates for HS chapters 1 to

24.

S Manufactures tariff averages are a simple average of rates for HS chapters

25 to 97.

S The terms “manufactures,” “industrial tariffs,” and “nonagricultural tariffs”

are interchangeable, referring to goods or rates for HS chapters 25 to 97 in

aggregate.

S The term “charge” indicates the “Other Duties and Charges” column in WTO

national schedules, encompassing both normal and special levies.

S ICB tariff schedules indicate those from the International Customs Bureau

(Brussels, Belgium).

S BFAI tariff schedules indicate those from the German Bundesstelle fur

Aussenhandelsinformation.

S The term “schedule anomaly” indicates that a national schedule entry was

corrected for apparent errors.

Technical Notes and Data Sources

Attempts have been made to provide standard and consistently defined measures for

each country profile, but because of statistical methods and data limitations, coverage,

practices, and information may differ, both among the 48 countries and among

different sources. Consequently, full comparability cannot be assured. The data are

drawn from sources thought to be the most authoritative and most recent. As statistical

systems in many countries remain weak and government data publication can be
164

significantly delayed, availability and reliability can be compromised. To facilitate

cross-country comparisons, values of many national series have been converted from

the national currencies to U.S. dollars, using the World Bank Atlas methodology.21

Data series expressed in constant U.S. dollars and exchange rates use a base year of

1995. Most group averages are weighted according to the relative importance of the

countries in the group total where appropriate, and shares and ratios are calculated

using current price series.22 “MR” indicates “most recent year available.” “NA”

indicates “not available.” Some data based on estimates in previous editions have

been updated or replaced with actual data or improved estimates.23 In situations

where official exchange rates diverge by an exceptional margin from the rate

effectively applied to international transactions and a more appropriate conversion

factor is estimated, the dollar value of GDP may not equal the local currency GDP

value multiplied by the exchange rate. Referenced information throughout the text is

primarily drawn from sources including African Business (London), World Trade,

Associated Press, Agence France Presse, Corporate Council on Africa’s Africa 2002

Report, and The Economist Intelligence Unit country reports. Discussions relied on these

sources, as well as the U.S. Department of State, the World Bank, and the International

Monetary Fund. Text references to the “formal” sector indicate activity that is linked to

official administrative entities (such as through tax collection); and text references to

the “informal” sector indicate activity primarily unmonitored by administrative entities

(such as cash payments to employees). All country profile text discussions represent

reported information from the just-referenced sources, and are not Commission

opinion or assessment. Statistical data for the 48 countries were sourced from the most

recent data available from the Economist Intelligence Unit as of June 2002 (economic

and world trade indicators),24 World Bank Africa Database (net FDI),25 and the U.S.

Department of Commerce (U.S.-SSA trade data).26 Some countries’ “Composition of

GDP” charts are divided into primary, secondary, and tertiary sectors. These are

defined as: primary – agriculture, fisheries, mining, and quarrying; secondary –

manufacturing, construction, electricity, water, and other utilities; and tertiary –

primarily service activities, such as retail, financial, real estate, and government

services.

Profiles of 48 sub-Saharan African Countries

Each country profile contains Economic, Trade, and Investment and Privatization

sections. Each section combines a tabular or graphical summation of related key

21 World Bank, African Development Indicators 2002, Washington, DC, p. 2.

22 Ibid., p. 2 and 3.

23 Ibid., p. 2.

24 Economist Intelligence Unit, various Country Economic Structure profiles, 2001. EIU data include

both official government data and EIU estimates when official source information is unavailable.

25 World Bank, African Development Indicators 2002 (drawn from World Bank Africa Database).

26 Compiled from official statistics of the U.S. Department of Commerce.

27 For historical information, see previous editions of this report (USITC, U.S. Trade and Investment

with Sub-Saharan Africa, Investigation No. 332-415, publication 3371 and 3476).
165

economic indicators or information with a brief discussion of the topic with emphasis

on the last 12 months.27 Because of the close link between investment levels and

privatization efforts for many SSA countries, this edition has combined these two

previously separate sections. Where available, information on the climate for services

was included as part of the trade profile discussion.28

28 See other chapters of this publication for more in-depth discussions of trade, investment,

multilateral and bilateral assistance, and regional organizations.

167

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Kz bn) 40.1 89.6 49.5

GDP (US$ bn) 4 4.1 0.1

CPI Inflation (annual average; %) 325.3 115 -210.3

Goods Exports (US$ mn) 8,090 6,910 -1,180.0

Goods Imports (US$ mn) 2,469.9 2,667.4 197.5

Trade Balance (US$ mn) 5,620.1 4,242.6 -1,377.5

Current Account Balance (US$ mn) -109.9 -497 -387.1

Foreign Exchange Reserves

(US$ mn)

1,198.2 732 -466.2

Total External Debt (US$ bn) 10.6 10.6 0.0

Debt Service Ratio, paid (%) 16.9 18 1.1

Exchange Rate (Kz/US$) 10 22.1 12.1

Angola has substantial natural resources, such as

petroleum, which contribute significantly to GDP.1

Angola also has reserves of natural gas and

diamonds, as well as hydroelectric potential.

Manufacturing and agriculture, which employ most of

the population, contribute modestly to GDP. Civil

unrest and political uncertainty, however, have

severely impacted economic growth. In recent

months, however, Angola has experienced increased

stability that is more conducive to economic growth.

Fiscal and monetary policies have resulted in high

inflation and low GDP growth. With one the highest

inflation rates in SSA, Angola has experienced

unabated price increases driven by a loose monetary

policy. In an effort to halt hyperinflation, Angola has

remonetized four times since its independence in

1975. Monetary and fiscal discipline remain poor

despite an April 2000 IMF agreement. The central

bank continues to intervene in support of the kwanza.

At the end of 2001, the IMF reviewed economic

performance and policies as well as the lapse of the

staff-monitored program. The IMF conducted a

partial audit of the petroleum sector. In addition, it

recommended greater fiscal and financial

transparency, a reduction in off-budget expenditure,

and increased spending on health and education.

Although a number of the goals have been attained,

reform is behind schedule. Angola missed its 2001

year-end targets established by the IMF, which were

necessary for loan restructuring. In addition, efforts

to draft a PRSP have encountered obstacles.

1 Due to delays in official statistics resulting in analyst and

government estimates, the significant role of the petroleum

sector, and different measurement terms for trade and GDP

data, trade balance may exceed GDP.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

ANGOLA

Agriculture

(7%)

Oil

(61%)

Others

(12%)

Manufacturing

(4%)

Services

(7%)

Mining

(9%)

0

1

2

3

4

5

6

7

8

1997 1998 1999 2000 2001

Percent
-4000

-3200

-2400

-1600

-800

0

800

1600

2400

3200

4000

1997 1998 1999 2000 2001

angola

Trade Profile

Because of civil unrest and the historic government’s

land policies of confiscating settler farms and

establishing inefficient state farms and marketing firms,

Angola continues to depend on food imports despite

plentiful arable land. Petroleum is the predominant

export for the country, making up 95 percent of the

export receipts. Angola is the second largest producer

of petroleum in SSA. The country also produces smaller

quantities of liquefied natural gas and refined petroleum

products. Trade diversification continues to be

hampered by rail corridors and ports that are in decay.

Because of civil unrest, however, the large diamond rich

areas are considered to be under-explored.

In 2001, U.S. exports to Angola consisted primarily of

machinery and mechanical products; and U.S. imports

from Angola consisted primarily of mineral fuels.

Angola is not designated an AGOA-beneficiary country.

Investment and Privatization Profile

The operating environment for business is extremely

adverse because of a weak regulatory framework and a

high cost structure imposed by economic distortions.

Consequently, investment outside the energy sector has

been hampered by a tenuous legal framework,

corruption, civil unrest, weak enforcement of private

property rights and contracts, and a devastated

infrastructure, including roads and rail systems.

Inadequate telecommunication services also contributed

to a poor investment environment. Large offshore

crude petroleum discoveries and exploration have

boosted investments in the petroleum sector. A March

2002 agreement between Angola and the Republic of

the Congo resolved their border dispute opening the

petroleum sector to further investment. Sonangol, the

state-owned petroleum company, has established many

joint ventures with foreign companies. In early 2002,

Sonangol signed a letter of intent with five petroleum

firms (ChevronTexaco, TotalfinaElf, ExxonMobil, British

Petroleum, and Norsk Hydro) to invest in liquified

natural gas plant production.

Angola’s privatization program has been fairly weak,

reportedly lacking financing and administrative support.

The privatization overseeing body stated in October

2001 that seven state-owned companies were slated

for privatization. These included a woodworking

company, an oil and soap factory, two biscuit

manufacturers, two flour millers, and the Katekero

Hotel. As of the end of 2001, however, these

state-owned companies had not been sold because of a

lack of interested buyers. Privatization of the state bank

was a key requirement of the ongoing IMF program,

and state officials announced in September 2001 that

consultants would be appointed to prepare the sale of

51 percent of the bank. Generally, Angola’s privatized

companies have not performed well. Plans to divest the

telecommunications sector were announced in 2001

and for the banking sector in 2002.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

0

500

1000

1500

2000

2500

1996 1997 1998 1999 2000

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Minerals and mining (diamonds)

168

Main Trade Partners, percent of total, 1998

Markets Sources

United States 49.4% Portugal 15.9%

China 13.9% United States 10.3%

Belgium/

Luxembourg

7.8% South Africa 10.2%

France 5.1% France 5.6%

Main Trade Commodities, US$ million

Exports 1999 Imports 1996

Crude Oil 4,305 Consumer goods

(excluding food)

712

Diamonds 577 Capital goods 327

Refined

petroleum

products

75

Intermediate

goods

299

Gas 10 Food 295
169

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 1,605.4 1,755.7 150.3

GDP (US$ bn) 2.3 2.4 0.1

CPI Inflation (annual average; %) 4.2 3.3 -0.9

Goods Exports (US$ mn) 186 209 23.0

Goods Imports (US$ mn) 438 455 17.0

Trade Balance (US$ mn) -252 -246 6.0

Current Account Balance (US$ mn) -182 -158 24.0

Foreign Exchange Reserves

(US$ mn)

458.1 580 121.9

Total External Debt (US$ mn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CFAfr/US$) 712 732.3 20.3

Despite its endowments of offshore crude petroleum

deposits, limestone, marble, and timber, Benin’s

economy continues to be constrained by its small

market size. Benin is heavily dependent on

international donor assistance and economic

performance is subject to fluctuations in world

commodity prices. Historically low international

cotton prices dampened potential economic

performance. A February 2002 decision to lower

gasoline prices led to shortages of gasoline and

kerosene. Efforts by Benin’s SBEE Electrical Company

to link Benin’s electrical grid with Nigeria may lessen

its use of electricity from Ghana and Côte d’Ivoire,

and make supply more reliable. Benin’s industrial

sector contributed minimally to GDP.

Benin’s economic policies during 2001 concentrated

on reducing poverty, economic development,

enhancing the business environment, improving

government financial management, and developing

an effective anticorruption regime. In late 2001, the

government announced plans to streamline legal and

regulatory frameworks to facilitate private sector

growth, as well as plans to strengthen the banking

system. In 2002, Benin failed to meet some of its

budgetary targets to the IMF and World Bank

because of strikes and social unrest, high petroleum

prices that contributed to higher-than-expected

import bills, and depreciation of the CFA franc. Benin

successfully met its UEMOA convergence criteria by

maintaining a budget deficit below 3 percent.

Government public spending, however, kept inflation

rates higher in Benin than in the rest of UEMOA.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

BENIN

Primary

(37%)

Secondary

(14%)

Tertiary

(49%)

0

1

2

3

4

5

6

7

1997 1998 1999 2000 2001

Percent
170

Main Trade Partners, percent of total, 2000

Markets Sources

Italy 17% France 20%

India 16% China 11%

Indonesia 11% Côte d’Ivoire 9%

Thailand 4% Germany 5%

Main Trade Commodities, US$ million, 2000

Exports Imports

Cotton and

textiles

152 Food 211

Capital goods 116

Fuel 153

0

10

20

30

40

50

60

1997 1998 1999 2000 2001

benin

Trade Profile

Cotton was Benin’s principal export sector,

representing 90 percent of total official foreign

currency earnings and roughly 50 percent of GDP.

Low international cotton prices were partly offset by

rising reexports to Nigeria, Niger, and Burkina Faso.

Benin also has made efforts to improve the

performance at the Port of Cotonou to lure transit

trade from the Port of Lagos and to promote closer

economic ties with Nigeria.

On Apr. 4, 2002, Benin and seven other West African

countries signed a Trade and Investment Framework

Agreement with the U.S. government. State-owned

Sitex (cloth and thread) and Sobetex (printed cloth)

ceased exporting to the United States partly because

the higher input costs made their products less

internationally competitive.

In 2001, U.S. exports to Benin consisted primarily of

textiles, machinery and equipment, and iron or steel;

and U.S. imports from Benin consisted primarily of live

animals and wood. In addition, Benin has been

designated a beneficiary country under AGOA. AGOA

(including GSP) imports from Benin totaled $178,000

in 2001.

Investment and Privatization Profile

Benin continued plans to establish industrial free-trade

zones in each of its 12 departments to attract

domestic and international investment. Investors will

be provided with tax breaks, as well as preferential

access to water, electricity, and telephone services. A

Chinese-European shirt and apparel joint venture

reportedly may build a factory near Cotonou to benefit

from AGOA. Also, a Hong Kong company expressed

interest in importing 3,000 sewing machines to

assemble apparel for the U.S. market with production

valued at $60 million and for the Japanese market

with production valued at $50 million.

In late 2001, the government drew up a new

timetable for privatization. Changes in the new time

line included proposals to increase private participation

in the Cotonou port, to continue liberalization of the

cotton sector, and to sell state interests in the textile

sector. For example, in 2001-02, the government of

Benin privatized the cotton parastatal. In January

2002, West Cost Energy (U.S.) announced that it had

invested $80 million in Benin to build a

75-to-125-megawatt power plant and a 40 km gas

pipeline from the Aje field in Nigeria to Benin. The

project is expected to be completed by 2004. In July

2002, the government announced plans to privatize

its telephone parastatal, Société Beninoise des

Télécommunications (Sobetel). The principal

front-runner in the bidding process has been France

Télécom. Plans also were announced to restructure

SBEE prior to its planned sale in late 2002.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

-10

0

10

20

30

40

50

60

70

80

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Agriculture and forestry

S Minerals and mining

S Petroleum and energy-related products
171

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, P bn) 28.9 32 3.1

GDP (US$ bn) 5.7 5.6 -0.1

CPI Inflation (annual average; %) 8.5 6.6 -1.9

Goods Exports (US$ mn) 2,736 2,432 -304.0

Goods Imports (US$ mn) 1,780 1,784 4.0

Trade Balance (US$ mn) 956 648 -308.0

Current Account Balance (US$ mn) 677 440 -237.0

Foreign Exchange Reserves

(US$ mn)

6.3 6.2 -0.1

Total External Debt (US$ mn) 380 310.5 -69.5

Debt Service Ratio, paid (%) 2.5 2.1 -0.4

Exchange Rate (P/US$) 5.1 5.8 0.7

Botswana’s relatively strong economic growth in

2001was fueled by foreign reserves, low inflation,

and a stable government. The economy has seen a

growth in the manufacturing, construction, trade,

transportation, and services sectors. Diamond

mining remains Botswana’s largest industry, but

accounted for less than 5 percent of total

employment in the formal sector. Manufacturing

accounted for only about 5 percent of GDP, but

employed about 10 percent of those in formal

employment. Almost one-half of the total employment

in the formal sector is in public enterprises.

Botswana remains highly dependant on the

agricultural sector for rural sector employment.

Economic expansion was hampered, however, by lack

of economic diversity, low level of industrialization,

and reportedly high HIV prevalence.

The government’s economic policies focus on

diversifying the economy and increasing employment.

In an effort to position itself as an international

financial center, the government issued its first

sovereign bond in early 2002. The International

Financial Services Center project offers tax breaks

and other incentives to international financial services

firms. Tourism earnings have boosted the services

sector as the government has promoted ecotourism

at Botswana’s unique wetlands, three national parks,

and five game reserves. Botswana and Zimbabwe

have closely connected tourism sectors, and the

government has expressed concern over the influx of

Zimbabwean refugees and the potential threat that

Zimbabwe’s instability poses for Botswana’s tourism

sector.

The government continued to maintain budget

surpluses and high levels of capital spending.

Botswana’s main sources of government revenue

were diamond earnings, income from the common

customs pool of the Southern African Customs Union

(SACU), and income earned by the central bank on

its investment of the country’s foreign-exchange

reserves. Inflation remained within the single-digit

range. The government also continued to encourage

open trade policies and foreign direct investment.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

BOTSWANA

Agriculture

(3%)

Trade, hotels, & restuarants

(10%)

Financial & business

services (11%)

Manufacturing

(5%) Construction

(5%)

Mining and quarrying

(36%)

Others

(14%)

General government

(16%)

0

2

4

6

8

10

1997 1998 1999 2000 2001

Percent
172

Main Trade Partners, percent of total, 1999

Markets Sources

EFTA 85% SACU 77%

SACU 10% EFTA 9%

Zimbabwe 2% Zimbabwe 4%

Main Trade Commodities, US$ million, 1999

Exports Imports

Diamonds 2,099 Machinery &

electrical

463

Vehicles 144 Food,

beverage &

tobacco

305

Copper & nickel 121 Vehicles &

transport

297

Textiles 54 Chemical &

rubber

203

-20

-10

0

10

20

30

40

50

1997 1998 1999 2000 2001

botswana

Trade Profile

Mined products are Botswana’s main export.

Diamonds, copper-nickel, and soda ash are heavily

mined. Diamonds are marketed exclusively by

DeBeers’ London-based Diamond Trading Company.

Botswana is the world’s second largest volume

producer after Australia and the second largest

African mining producer by value. Global diamond

demand, however, has fallen, reducing demand for

Botswana diamonds. Consequently, Debswana (the

joint partnership between DeBeers and the

Botswana government) stated that it had no plans

to develop potential resources. Botswana has many

coal mines, but poor quality and high transportation

costs make it an improbable export. Botswana’s

soda ash and gold exports, however, have

increased. A feasibility study was commissioned on

developing a new direct line linking Botswana and

Zambia, which could facilitate trade and reduce

import bills. As of early 2002, five companies in the

textile sector had been issued the required

documentation to begin exporting to the United

States under AGOA.

In 2001, U.S. exports to Botswana consisted

primarily of aircraft and parts, and machinery and

equipment. In 2001, U.S. imports from Botswana

consisted primarily of minerals. In addition,

Botswana has been designated a beneficiary country

under AGOA, including the apparel provision. AGOA

(including GSP) imports from Botswana totaled $1.2

million in 2001.

Investment and Privatization Profile

Conditions are generally favorable for foreign

investment in Botswana due in large measure to low

tax rates, government stability, and a stable

monetary policy linked to South Africa. In addition, in

2001, Botswana was ranked 26th out of 91

countries rated by Transparency International, the

highest ranking of any surveyed African country.

Other factors conducive to investment include a

stable electricity supply, as well as well-developed

telecommunications, road, and rail networks. There

has been an increase in concern over the instability

in Zimbabwe, however, and its effect on Botswana.

The government has eliminated subsidies to the

electricity, telecommunications, transportation,

water, real estate, cattle, and mining sectors in

anticipation of privatization. The government

continued to encounter difficulty in privatizing its

parastatals. In 2001, the Public Enterprise

Evaluation and Privatization Agency was established

to oversee and accelerate the privatization program.

The national airline, Air Botswana, is being prepared

for privatization, although the sale date was

extended from 2001 to 2002.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

0

20

40

60

80

100

1996 1997 1998 1999 2000

S Minerals and mining (diamonds)

S Tourism

S Vehicle assembly
173

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 1,580 1,740 160.0

GDP (US$ bn) 2.2 2.4 0.2

CPI Inflation (annual average; %) -0.3 4.9 5.2

Goods Exports (US$ mn) 205.6 241.5 35.9

Goods Imports (US$ mn) 517.6 537.5 19.9

Trade Balance (US$ mn) -312 -296 16.0

Current Account Balance

(US$ mn)

-313.9 -301.5 12.4

Foreign Exchange Reserves

(US$ mn)

243.6 244.6 1.0

Total External Debt (US$ mn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CFAfr/US$) 712 733 21.0

Burkina Faso’s overall economic performance

depends heavily on the cotton sector, but agriculture

is prone to inadequate water resources, persistent

droughts, and land degradation. Subsistence

agriculture employed 90 percent of the population in

2001 and accounted for 40 percent of GDP. Burkina

Faso’s economy is dominated by cereals for domestic

consumption, combined with exports of cotton and

limited quantities of gold. Important crops include

shea nuts, sesame, irrigated vegetables, tobacco,

millet, sorghum, peanuts, yams, and rice. Despite

improved economic performance over the last few

years, with growth that averaged 5.7 percent during

the 1996-2000 period, Burkina Faso’s economic

development continued to be adversely affected by

social and labor unrest, domestic and regional

instability, higher petroleum prices, declining worker

remittances, inadequate rainfall, and declining

international commodity prices, especially for cotton

and gold.

Burkina Faso’s economic development relies heavily

on the IMF, World Bank, and other international

donor institutions. According to the World Bank,

Burkina Faso is notable for implementation of its

strategic framework agreement in the fight against

poverty. In 2001, the nation received $700 million in

debt-service payments from the World Bank’s HIPC

and $7 million from the IMF’s PRGF. In January

2002, the World Bank provided an additional $32.6

million loan for the initial phase of Burkina Faso’s

10-year educational reform plan. The EU announced

in March 2002 that it would provide Burkina Faso

with $310.8 million to support the government’s

antipoverty, rural development, food security, basic

education, road building, and health programs. In

April 2002, the World Bank and the IMF reported

that they would provide Burkina Faso with a $129

million grant for debt relief under the HIPC initiative.

The African Development Bank announced in June

2002 that it would provide 74 percent of the $30

million budget for a poverty-alleviation project aimed

at improving agricultural output. Burkina Faso has

made significant progress in implementing the

structural reforms and institutional changes agreed

to with the IMF and World Bank.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

Tertiary

(45%)

Primary

(36%)

Secondary

(19%)

0

1

2

3

4

5

6

7

1997 1998 1999 2000 2001

Percent

BURKINA FASO
174

Main Trade Partners, percent of total, 2000

Markets Sources

Venezuela 14.7% Côte d’Ivoire 25.1%

Belgium/

Luxembourg

12.2% Venezuela 23.4%

Italy 9.6% France 17.0%

France 7.0%

Main Trade Commodities, US$ million, 2000

Exports Imports

Cotton 102 Capital goods 177

Livestock 42 Petroleum

products

91

Gold 8 Food 63

-2

0

2

4

6

8

10

12

14

16

18

20

1997 1998 1999 2000 2001

burkina faso

Trade Profile

Burkina Faso exports continued to be dominated

by cotton and gold. Cotton harvests reached

historic levels of 400,000 metric tons in 2001,

representing an increase of more than 45

percent. In 2001 and 2002, declining

international gold prices resulted in the closure of

Burkina Faso’s largest gold mine.

In 2001, U.S. exports to Burkina Faso consisted

primarily of cereals, and machinery and

equipment; and U.S. imports from Burkina Faso

consisted primarily of agricultural products.

Burkina Faso is not designated as an

AGOA-beneficiary country.

Investment and Privatization Profile

Foreign investment levels in Burkina Faso remain

limited despite the government’s efforts to control

inflation and to attract private and foreign

investment. Government efforts to increase

investment in the mining sector included easing

regulatory laws, reducing taxes, and adopting

standard investment contracts. Morocco’s Omnim

Nord Africain group announced plans to open a

gold mine in Burkina Faso in 2004. One factor

said to be inhibiting the investment environment is

the reportedly high rate of HIV/AIDS, and its

potential impact on labor productivity and

economic performance.

In 2001 and 2002, the government continued its

liberalization plans for the cotton sector by selling

a majority share in Sofitex, the national ginning

and marketing company. In mid-2001, the

government officially announced additional firms

slated for privatization, including Sonabel

(electricity), Sonabhy (hydrocarbons), Onea

(water), Bumigeb (mining), several hotels, and

Medifa (medical laboratory). In 2001, the process

of privatizing Onatel, the telecommunications

parastatal, began and was expected to be

competed by 2003. The government announced

its intent to sell 34 percent of Onatel to a foreign

investor, to sell 20 percent on the regional stock

exchange, and to retain the remaining 46 percent.

As of mid-2002, Burkina Faso had liquidated or

sold 41 state enterprises.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

-25

-15

-5

5

15

25

35

1996 1997 1998 1999 2000

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (gold)

S Agriculture (cotton)
175

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Bufr bn) 489 550 61.0

GDP (US$ bn) 0.7 0.7 -0.0

CPI Inflation (annual average; %) 24.3 10 -14.3

Goods Exports (US$ mn) 49.1 30 -19.1

Goods Imports (US$ mn) 107.9 125 17.1

Trade Balance (US$ mn) -58.8 -95 -36.2

Current Account Balance (US$ mn) -30.6 -35.7 -5.1

Foreign Exchange Reserves

(US$ mn)

32.9 17.7 -15.2

Total External Debt (US$ mn) 1,180 1,145 -35.0

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (Bufr/US$) 720.7 830.4 109.7

Burundi’s economy continued to suffer from the

effects of United Nations economic sanctions

(1996-1999); a 9-year-old civil war, falling

international coffee and tea prices; and a large,

displaced refugee population. Economic prospects

may improve with the July 2001 peace agreement.

In 2002, roughly 68 percent of Burundi’s population

continued to live in extreme poverty. Subsistence

agriculture accounted for 46 percent of Burundi’s

GDP and sustained more than 90 percent of the

population. Subsistence crops include cassava,

bananas, sweet potatoes, pulses, maize, sorghum,

yams, and peanuts. Export crops consisted of tea,

coffee, and raw cotton. Coffee, Burundi’s principal

cash crop, accounted for 80 percent of the value of

exports. The government maintained price controls

on products such as petroleum products, beer, and

sugar.

In 2001 and 2002, the government’s primary

economic policy objectives were to stabilize the

economy and reduce poverty. The government

adopted tight monetary policies to promote price

stability and lower interest rates. Burundi is heavily

dependent on pledges from bilateral and multilateral

donors. Burundi requested that the IMF and World

Bank accelerate the process for obtaining

post-conflict macroeconomic assistance. Government

officials indicated that Burundi required $100 million

in budgetary aid and $115 million to cover foreign

debt payments. A significant share of government

revenues are budgeted for the payment of Burundi’s

$1.4 billion debt, which represented 140 percent of

GDP. The World Bank approved a $187 million loan

in March 2002 for Burundi’s transitional support

strategy to be used for health and population

projects, HIV/AIDS-related programs, and economic

rehabilitation. Germany also announced in April 2002

that it would resume aid to Burundi after a 9-year

break. Germany designated $40 million for projects

related to the reintegration of refugees, HIV/AIDSrelated activities, and rural water supply projects.

Burundi made substantial progress in implementing

the structural reforms and institutional changes

prescribed by bilateral and multilateral financial

institutions. Burundi has completed an exhaustive

PRSP as part of its compliance obligations to the IMF

and the World Bank. IMF officials indicated that

Burundi’s PRSP had been prepared, but had yet to

be implemented.

Origins of GDP (1998)

Economic Profile

Real GDP Growth Rate

BURundi

Agriculture

(46%)

Manufacturing

(13%)

Services

(37%)

Other Industry

(4%)

-2

-1

0

1

2

3

4

5

6

1997 1998 1999 2000 2001

Percent
176

Main Trade Partners, percent of total, 2000

Markets Sources

UK 38.3% France 24.9%

Switzerland 22.1% Zambia 15.6%

Germany 16.0% Kenya 14.4%

United States 13.2% Tanzania 12.0%

Main Trade Commodities, US$ million, 1999

Exports Imports

Coffee 44.1 Intermediate

goods

50.2

Tea 10.3 Capital goods 30.0

Manufacturing 1.0 Consumption

goods

37.4

Hides 0.1 Food 10

-15

-10

-5

0

5

10

15

1997 1998 1999 2000 2001

burundi

Trade Profile

Porous boundaries and civil unrest made assessing

Burundi’s trade levels difficult. Tea, coffee, and

cotton continued to dominate Burundi’s exports.

Coffee, Burundi’s principal cash crop, accounted for

80 percent of the value of exports. Exports

continued to be adversely affected by Burundi’s

protracted civil unrest, and by falling international

coffee and tea prices. Export diversification was

hampered by regulations in the commercial

agriculture sector and export taxes.

In 2001, U.S. exports to Burundi consisted primarily

of cereals and vehicles and parts; and U.S. imports

from Burundi consisted primarily of coffee, tea, and

spices. Burundi is not designated as an

AGOA-beneficiary country.

Investment and Privatization Profile

Inadequate telecommunications services, civil

unrest, high poverty levels, inadequate transport

systems, energy disruptions, and reportedly high

HIV/AIDS rates continued to inhibit investment

prospects. Burundi’s government continues to own

a large percentage of the country’s economic

assets. The government has indicated intentions to

divest parastatals, but the dearth of private

investment, both domestic and foreign, stymied this

goal. Argosy (Australia) announced in April 2002

that it would resume development of the Musongati

nickel project, which was suspended in 2000

because of escalating political tensions.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

0

1

2

3

4

5

6

1996 1997 1998 1999 2000

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Agriculture (coffee, tea)

S Minerals and mining (nickel, cobalt, copper)
177

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 6,311 6,938 627.0

GDP (US$ bn) 9.6 9.4 -0.2

CPI Inflation (annual average; %) 0.8 2.8 2.0

Goods Exports (US$ mn) 1,998 2,050 52.0

Goods Imports (US$ mn) 1,387 1,542 155.0

Trade Balance (US$ mn) 611 508 -103.0

Current Account Balance (US$ mn) 176 64 -112.0

Foreign Exchange Reserves

(US$ mn)

212 338 126.0

Total External Debt (US$ bn) 9.6 9.5 -0.1

Debt Service Ratio, paid (%) 19.3 17.4 -1.9

Exchange Rate (CFAfr/US$) 712 733 21.0

Agriculture is the dominant sector in the economy of

Cameroon, and employed over 75 percent of the

workforce in 2001. The country has relatively large

crude petroleum reserves and unexplored mineral

resources including bauxite, cobalt, chromium, gold,

iron, nickel, tin, titanium, uranium, and limestone.

Since 1996, macroeconomic performance has

increased, averaging 4 to 5 percent real GDP

growth, but is highly dependent on the petroleum

sector. Cameroon also has a large tropical rainforest

that is a source of lumber for export and local

consumption. The fishing industry remains a strong

sector. Recent economic growth has been driven by

the construction of the Chad-Cameroon crude

petroleum pipeline, external assistance including

private investment in forestry and other industries,

and donor-funded investment projects. Inflation has

been kept low primarily because of improved fiscal

management, a stable monetary policy by the BEAC,

the regional central bank, and lower consumer prices

in the euro area, a primary import source.

Government economic policy has largely followed

agreements made with the World Bank and IMF. The

IMF has praised the government for accomplishing

strong growth and low inflation based on sound

macroeconomic management and market-oriented

reforms. Cameroon qualified for debt relief up to $2

billion under the HIPC initiative. The country also

qualified for a new three-year PRGF totaling $134

million. The PRGF was revised in October 2001.

Origins of GDP (2001)

Economic Profile

Real GDP Growth Rate

CAMEROON

Agriculture

(29%)

Industry

(31%)

Services

(40%)

0

1

2

3

4

5

6

1997 1998 1999 2000 2001

Percent
178

Main Trade Partners, percent of total, 2000

Markets Sources

Italy 28.7% France 35.6%

France 12.6% Nigeria 14.4%

Spain 10.6% Italy 4.6%

Main Trade Commodities, US$ million, 2001

Exports Imports

Oil 878 Manufactures 1,363

Timber & cork 384 Primary products 123

Cocoa 134 Fuel 55

Coffee 58

-120

-90

-60

-30

0

30

60

90

120

150

180

210

1997 1998 1999 2000 2001

cameroon

Trade Profile

Petroleum exports have declined slightly in recent

years, but still represented the predominant export

product in 2001. Petroleum development has been

limited because of maturing petroleum fields, poor

incentives, and a lack of exploration. Several

petroleum fields were discovered after the

government passed a law reducing regulations, but

discovery dwindled again in 2000 and 2001. After

petroleum exports, forest products are the second

largest export. Logging flourishes in the east, and

despite rapid deforestation, the country still

possessed the third largest forest in Africa.

European firms control an estimated 70 percent of

Cameroon’s logging industry. Cocoa was the main

cash crop. Despite a large mineral potential, mining

remained underdeveloped primarily because of the

lack of infrastructure.

In 2001, U.S. exports to Cameroon consisted

primarily of aircraft and parts and machinery; and

U.S. imports from Cameroon consisted primarily of

mineral fuels, wood, and rubber. In addition,

Cameroon has been designated a beneficiary

country under AGOA, including the apparel provision.

AGOA (including GSP) imports from Cameroon

totaled $37.2 million in 2001.

Investment and Privatization Profile

Although the government is open to investment, the

process to obtain the required licenses can be

difficult, and there are reports of favoritism and

corruption. The country created an Industrial Free

Zone which mandates that 80 percent of the

product must be sold outside of Cameroon and

allows investors to operate virtually outside the

country’s legal and regulatory systems. Investment

in certain potentially petroleum rich areas is

hampered by the ongoing dispute between

Cameroon and Nigeria (currently before the

International Court of Justice) over the Bakassi

Peninsula. In November 2001, the Doula Stock

exchange was established with an initial share

capital of CFA 1.2 billion. Equity holders include a

private investment bank, PSI, (55 percent),

insurance companies (21 percent), parastatals (15

percent), and the government (9 percent).

The government continued plans to privatize all

parastatals except for the aluminum company. As of

late 2001, four of 11 state-owned companies had

been privatized. Legal and other political issues,

however, have delayed privatization of the remaining

companies. Parastatals still slated for privatization

include Camair (airline), Camtel and Camtel-Mobile

(telecommunications), and CNPS (insurance).

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

-50

0

50

100

150

200

250

300

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Agriculture and forestry
179

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CVEsc bn) 64.7 68.6 3.9

GDP (US$ mn) 558.2 553.3 -4.9

CPI Inflation (annual average; %) -2.5 3 5.5

Goods Exports (US$ mn) 23.9 27.3 3.4

Goods Imports (US$ mn) 217.6 218 0.4

Trade Balance (US$ mn) -193.7 -190.7 3.0

Current Account Balance (US$ mn) -66.9 -60.9 6.0

Foreign Exchange Reserves

(US$ mn)

28.2 27.9 -0.3

Total External Debt (US$ mn) 301.3 344 42.7

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CVEsc/US$) 115.9 122.9 7.0

Economic Profile

Cape Verde has few natural resources and a low per

capita GDP. Economic growth was driven by aid

flows, remittances, and government development

programs. Approximately 90 percent of food is

imported. Migration from the 10 islands continued at

high levels, and emigrant remittances supplemented

GDP by approximately 20 percent. The service

sector is the economy’s foundation. Services

consisted primarily of foreign shipping and airline

services. The country’s location in the North Atlantic

high-pressure belt makes it an ideal transit point for

foreign ships and planes. In 2001, tourism and

construction grew rapidly. Although fishing has

significant potential, lack of technology for deep-sea

fishing inhibited fishing industry growth. Mining

efforts were limited to pozzolana (a volcanic

substance used for cement) and salt.

The government’s economic policies continued the

decade-long shift from participant to promoter and

regulator. The 1991 government move toward

market-oriented policies now appears to be resulting

in economic growth. Sound government policies

maintained a relatively low inflation rate. The World

Bank, the IMF, and many multilateral and bilateral

donors have supported the government’s economic

policies. Cape Verde signed an $11 million PRGF

with the IMF in April 2002, the main goals of which

include fiscal consolidation, debt reduction, and social

services improvement.

Origins of GDP (2000)

Real GDP Growth Rate

CAPE VERDE

Agriculture

(12%)

Industry

(20%)

Services

(68%)

0

1

2

3

4

5

6

7

8

9

1997 1998 1999 2000 2001

Percent

Economic Profile
180

Main Trade Partners, percent of total, 2000

Markets Sources

Portugal 81.8% Portugal 48.1%

United States 9.1% Netherlands 5.9%

Japan 5.5%

Main Trade Commodities, US$ million, 2000

Exports Imports

Fuel 21.6 Capital goods 150.3

Clothing &

footwear

10.8 Food 78.3

Fish & fish

products

0.8 Fuels 10.1

Trade Profile

Because of historic colonial ties, Portugal is Cape

Verde’s primary trade partner. Cape Verde imports

nearly all of its basic consumer products, industrial

inputs, and energy. These high import requirements

have led to persistent trade deficits. In mid-2001,

the EU signed a new fishing agreement with Cape

Verde that represents a significant portion of

foreign exchange earnings. The Cape Verde escudo

is tied to the Portuguese escudo and thus to the

euro.

In 2001, U.S. exports to Cape Verde consisted

primarily of aircraft and parts, and cereals. In

2001, U.S. imports from Cape Verde consisted

primarily of apparel and clothing. In addition, Cape

Verde has been designated a beneficiary country

under AGOA, including the apparel provision. AGOA

(including GSP) imports from Cape Verde totaled

$152,000 in 2001.

Investment and Privatization Profile

The foreign investment promotion agency PROMEX

has successfully attracted large amounts of

investment in light manufacturing, tourism, fishing,

transportation, and communications. Although most

foreign investment came from Europe, many Asian

and American investors have expressed interest in

opportunities available on the islands. Relatively

labor-intensive sectors, such as light manufacturing,

are a main investment target. Many foreign firms

established manufacturing and assembly plants in

Cape Verde to take advantage of its often-unfilled

quotas to Europe and the United States. Industries

in the export sector are often given preferential

access to markets in Europe, West Africa, and the

United States.

In 1997, Cape Verde began to privatize as part of a

5-year World Bank funded program. In recent

years, with help from the World Bank, Cape Verde’s

financial sector has restructured dramatically. The

Bank of Cape Verde was split into central and

commercial banks, and the Stock Market of Cape

Verde was launched in March of 1999. Foreign

banks have been allowed to operate on the island,

and there are currently two foreign-owned

commercial banks. Since privatization began, Cape

Verde has sold more than 30 parastatals, primarily

to Portugese buyers. These companies include

Cabo Verde Telecom (telecommunications), Enacol

(petroleum distribution), and three hotels. The sale

of two commercial banks, an insurance company,

the port authority, and the power supply company

continued to advance along their privatization

processes.

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

cape verde

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

0

10

20

30

40

50

60

70

1996 1997 1998 1999 2000

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Services (tourism, transportation, communications)

S Light manufacturing

S Fishing
181

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 672.6 699.4 26.8

GDP (US$ bn) 0.9 1.0 0.1

CPI Inflation (annual average; %) 3.1 3.8 0.7

Goods Exports (US$ mn) 155 131 -24.0

Goods Imports (US$ mn) 115 123 8.0

Trade Balance (US$ mn) 40 8 -32.0

Current Account Balance (US$ mn) 12 7 -5.0

Foreign Exchange Reserves

(US$ mn)

133 115 -18.0

Total External Debt (US$ mn) 872 n/a n/a

Debt Service Ratio, paid (%) 9 n/a n/a

Exchange Rate (CFAfr/US$) 712 733 21.0

Economic Profile

The Central African Republic is sparsely populated

and contains vast natural resources, but

development of these natural resources continued to

be inhibited in 2001 by the country’s landlocked

status, inadequate transportation system, lack of

skilled labor, and civil unrest. The economy is based

on subsistence agriculture (including forestry), which

contributed approximately 55 percent of GDP and

represented 80 percent of all jobs. The ongoing civil

unrest that erupted in May 2001 and again in

November 2001 damaged the economy. Late 2000

and early 2001 witnessed strikes that ceased in

March 2001, but erupted again 2 months later.

Education and healthcare services reportedly have

suffered from inadequate government funding,

frequent strikes, and the civil unrest. On the UN

human development index, the Central African

Republic ranked among the 10 least developed

countries.

In 2001, the government continued its reform

efforts. Lapses in its 3-year enhanced structural

adjustment facility continued in 2001 when the

government fell short of IMF targets. Civil unrest in

mid-2001 resulted in the postponement of a decision

regarding the country’s qualification for the HIPC

initiative. The IMF, World Bank, and bilateral donors

have stated they are reluctant to invest in long-term

projects in the Central African Republic because of

the political unrest, lack of financial transparency,

and limited governance capacity.

Origins of GDP (2000)

Real GDP Growth Rate

CENTRAL

AFRICAN REPUBLIC

Agriculture

(55%)

Industry

(16%)

Services

(29%)

-2

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

Percent
182

Main Trade Partners, percent of total, 2000

Markets Sources

Belgium/

Luxembourg

62.8% France 29.2%

Spain 6.1% Cameroon 12.9%

Pakistan 5.1% Belgium 7.8%

Main Trade Commodities, US$ million, 2000

Exports Imports

Timber 67 Public

investment

20

Diamonds 59 Fuel &

energy

15

Cotton 11

Coffee 9

Trade Profile

Trade is hindered by the Central African Republic’s

lack of a shipping port. The civil unrest in the

Democratic Republic of the Congo led traders to

utilize more costly routes through Cameroon. A

major barrier to trade expansion continued to be

product distribution problems. The main route for

petroleum imports from the Democratic Republic of

the Congo remained closed because of fighting in

the country, resulting in delays and increased cost.

In 2001, U.S. exports to Central African Republic

consisted primarily of machinery and equipment;

and U.S. imports from Central African Republic

consisted primarily of minerals. In addition, the

Central African Republic has been designated a

beneficiary country under AGOA.

Investment and Privatization Profile

Foreign direct investment was focused primarily on

the diamond, gold, and timber industries. The

government introduced a new investment code in

July 2001, which offers tax concessions, export

support, and a more streamlined approval process.

Government reforms also were aimed at increasing

opportunities in the telecommunications sector.

Capital, profits, and dividends can be freely

transferred in and out of the country; however, tax

and customs laws can be confusing. The investment

climate is hampered by a reportedly high HIV/AIDS

rate, civil unrest, regional instability involving the

Democratic Republic of the Congo, the Republic of

the Congo, and Sudan, and inadequate transport

systems. In March 2002, the U.S.-based company

Grynberg Petroleum reported commercially viable

crude petroleum deposits in the country’s remote

eastern regions. Several American firms have

reportedly expressed interest in developing the

diamond sector.

Although parastatals are being privatized under an

IMF-approved extended structure adjustment facility,

civil unrest continued to delay privatization efforts.

To date, 49 percent of the national

telecommunications company, Socatel, has been

sold.

-2

-1

0

1

2

3

4

5

1997 1998 1999 2000 2001

central african republic

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

-5

0

5

10

15

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (diamonds, gold)

S Forestry products
183

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 1,002 1,175 173.0

GDP (US$ bn) 1.4 1.6 0.2

CPI Inflation (annual average; %) 3.8 12.4 8.6

Goods Exports (US$ mn) 182 191 9.0

Goods Imports (US$ mn) 243 559 316.0

Trade Balance (US$ mn) -61 -368 -307.0

Current Account Balance (US$ mn) -194 -660 -466.0

Foreign Exchange Reserves

(US$ mn)

111 115 4.0

Total External Debt (US$ mn) 1,116 n/a n/a

Debt Service Ratio, paid (%) 9.3 n/a n/a

Exchange Rate (CFAfr/US$) 712 733 21.0

Persistent civil unrest, inadequate infrastructure, and

long-standing drought have made Chad one of the

world’s poorest and least developed countries. The

agricultural sector was adversely affected in 2001 by

extreme weather conditions and a decline in world

cotton prices. Subsistence agriculture and pastoral

activities accounted for a substantial part of GDP and

engaged more than 80 percent of the population. In

2001, the agricultural sector suffered from drought

and severe food shortages, fueling inflationary

pressures. Chad’s principal subsistence crops

included cereals, sesame, potatoes, and rice. In

2001, manufacturing consisted primarily of cotton

ginning, textiles manufacturing, and sugar refining.

GDP growth has been driven by construction of the

Chad-Cameroon crude petroleum pipeline, petroleum

exports, structural reforms, and improved

governance. Chad’s economic policies during 2001

and 2002 were guided by agreements made with the

IMF, World Bank, and other donor institutions.

Government spending concentrated on education,

health, rural development, infrastructure

development, and improved governance. Chad’s fiscal

policy concentrated on increasing revenue by

improving customs administration, tax collection, and

tax coverage.

In February 2002, the EU signed a 5-year 202

million euro cooperation agreement with Chad

targeting poverty-reduction programs, roads and

transportation development, healthcare, good

governance, and civil society support. The IMF

provided Chad with an additional $6.8 million in

2002 to ease the consequences of reduced cotton

earnings. Relations with the EU, the World Bank, and

the IMF were strained, however, because of alleged

irregularities in the April 2002 elections, reported

corruption, and policy slippages.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

CHAD

Primary

(39%)

Secondary

(14%)

Tertiary

(47%)

0

2

4

6

8

10

1997 1998 1999 2000 2001

Percent
184

Main Trade Partners, percent of total, 2000

Markets Sources

Portugal 31% France 35%

Germany 17% Nigeria 10%

United States 6% United States 6%

France 6% Saudi Arabia 5%

Main Trade Commodities, US$ million, 2000

Exports Imports

Livestock & meat 106 Oil 190

Cotton 83 Public sector 90

Non-oil 72

Trade Profile

Trade expansion was inhibited by Chad’s landlocked

status and inadequate infrastructure, which

contributed to high transport costs for imports. In

2001, livestock surpassed cotton as Chad’s

primary trade commodity. Chad’s trade profile is

expected to change to reflect increased petroleum

exports with completion of the Chad-Cameroon

pipeline. In 2002, Chad continued to run a trade

deficit because of its limited export base. Imports

increased in 2001 and were driven by demand for

imported food, and for intermediate goods and

capital equipment needed for the Doba petroleum

project.

In 2001, U.S. exports to Chad consisted primarily

of machinery and equipment; and U.S. imports from

Chad consisted primarily of agricultural products. In

addition, Chad has been designated a beneficiary

country under AGOA.

Investment and Privatization Profile

Nonpetroleum investment (and trade) diversification

were hampered by inadequate infrastructures, high

energy costs, and civil unrest. In 2001, an

international consortium led by ExxonMobil-Chevron

began drilling for crude petroleum in Chad. The

$3.5 billion project is expected to result in a

650-mile pipeline from Chad to Cameroon. The

pipeline is expected to be online by late 2003, and

it is reportedly estimated that Chad will receive

between $2.5 billion and $5 billion in annual

revenues from royalties, taxes, and dividends over

the petroleum field’s potential 30-year life span.

Approximately $370 million of the project’s cost is

expected to be underwritten by the World Bank’s

International Finance Corporation. In June 2001,

the World Bank approved a $93 million loan to

develop the Doba petroleum fields, representing the

largest onshore investment in Africa.

The majority of state-owned enterprises have been

privatized. Privatization continued steadily with the

restructuring of the state-owned bank and rural

water companies. Companies that remained on the

privatization list include Sonasut (sugar monopoly),

TIT (telecommunications), ONPT (post), Air Chad,

and Cotontchad (cotton monopoly). Chad has only

partially liberalized its telecommunications industry

and telecommunications services are still dominated

by parastatal Sotelchad. Chad petitioned the World

Bank in March 2002 for an emergency loan for the

Société Tchadienne d’Eau et d’Electricité (STEE), its

power authority. STEE, currently under a 30-year

management contract with Vivendi (France), is

scheduled to eventually transfer ownership from the

government to Vivendi. The Government of France

provided CFA 3.5 billion for the STEE privatization

process.

0

20

40

60

80

1996 1997 1998 1999 2000

Net Foreign Direct Investment

Millions of U.S. Dollars

-20

0

20

40

60

80

100

120

140

160

1997 1998 1999 2000 2001

chad

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Agriculture (cotton)

S Infrastructure development
185

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Cfr bn) 90.1 108 17.9

GDP (US$ bn) 0.2 0.2 0.0

CPI Inflation (annual average; %) -1.9 3.5 5.4

Goods Exports (US$ mn) 12.2 9.6 -2.6

Goods Imports (US$ mn) 38.1 44.9 6.8

Trade Balance (US$ mn) -25.9 -35.3 -9.4

Current Account Balance (US$ mn) -0.9 10.5 11.4

Foreign Exchange Reserves

(US$ mn)

43.2 n/a n/a

Total External Debt (US$ mn) 111 104 -7.0

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (Cfr/US$) 533.9 550.2 16.3

Economic Profile

Comoros is one of the world’s poorest countries. It is

heavily dependent on subsistence agriculture,

hunting, fishing, forestry, and grants and technical

assistance from donor institutions. Agricultural

activities contributed 40 percent to GDP in 2001

and employed approximately 80 percent of the

population. The country remained heavily dependent

on food imports, and spent approximately 50 percent

of its annual budget on imported food. Its principal

export crops were vulnerable to international

commodity price fluctuations. These cash crops

include vanilla, ylang-ylang oil, and cloves.

Manufacturing activities were limited to processing of

ylang-ylang oil and vanilla, and to the production of

soap, plant oils, soft drinks, plastics, and wood

products. Comoros’ tourism industry remained small,

and the unstable political situation continued to

impair its development. Despite the political

instability, Comoros nevertheless attracted 20,000

tourists, principally from South Africa and Europe.

Although the government continued its program to

improve roads and links to rural communities,

inadequate transport systems continue to inhibit

economic development. Remittances from 150,000

Comorans living abroad supplemented Comoros’

GDP.

Economic policy is formulated within the guidelines of

the IMF’s staff-monitored program. Government

policy focused on improving education, technical

training, and health care, as well as diversifying

exports, promoting tourism, and privatizing

parastatal enterprises with support from

international donor institutions. The government set

a 4 percent annual GDP growth target. Inflation

remained under control, as the Comoran franc is

pegged to the French franc.

Origins of GDP (2000)

Real GDP Growth Rate

COMOROS

Agriculture, fishing & forestry

(41%)

Manufacturing

(4%)

Services

(55%)

-2

-1

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
186

Main Trade Partners, percent of total, 2000.0

Markets Sources

France 31.3% France 25.0%

United States 18.8% South Africa 16.7%

Singapore 18.8% Kenya 6.7%

Germany 6.3% Pakistan 3.4%

Main Trade Commodities, US$ million, 2000

Exports Imports

Vanilla 7.7 Rice 8.8

Ylang-ylang 1.7 Petroleum 5.1

Cloves 2.3

Trade Profile

Comoros is a major world exporter of vanilla which

continued to represent the major portion of Comoros’

overall export structure. Comoros’ trade deficit was

driven by weak international prices for vanilla and

cloves. Tourism remained stable. Official transfers

continued to improve as donor support and private

transfers reached approximately $3 million.

In 2001, U.S. exports to Comoros consisted

primarily of machinery and equipment; and U.S.

imports from Comoros consisted primarily of coffee,

tea, and spices. Comoros is not designated an

AGOA-beneficiary country.

Investment and Privatization Profile

Although the government offered a number of special

tax and other incentives, investment continued to be

hampered by the country’s small domestic market

and continued political instability. The privatization

process continued slowly. A South African company

recently purchased three hotels. French companies,

however, remain the primary potential buyers of

state-owned assets. One aspect of the country’s

return to the reform process included its announced

intent to privatize SNPT (postal and

telecommunications services) and Socopotram (port

and marine transport).

Net Foreign Direct Investment

Millions of U.S. Dollars

-10

-5

0

5

10

15

1997 1998 1999 2000 2001

comoros

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Key Investment and Privatization Sectors

S Tourism

S Fishing

S Perfume distillation

0.0

0.5

1.0

1996 1997 1998 1999 2000
187

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 6.7 6.8 0.1

GDP (US$ bn) 9.4 9.2 -0.2

CPI Inflation (annual average; %) 2.4 4.4 2.0

Goods Exports (US$ mn) 3,972.9 3,795.7 -177.2

Goods Imports (US$ mn) 2,175.5 2,198.9 23.4

Trade Balance (US$ mn) 1,797.4 1,596.8 -200.6

Current Account Balance (US$ mn) -12.9 -131.4 -118.5

Foreign Exchange Reserves (US$

mn)

667.8 1,018.9 351.1

Total External Debt (US$ bn) 12.1 11.8 -0.3

Debt Service Ratio, paid (%) 21.6 18.6 -3.0

Exchange Rate (CFAfr/US$) 712 733 21.0

Economic Profile

Agriculture was the predominant sector of Côte

d’Ivoire’s GDP in 2001 and employed approximately

80 percent of the population. The country is the

world’s largest producer of cocoa and one of the

largest producers of coffee. Cocoa producers have,

however experienced falling international prices in

recent years. In an attempt to counter this trend,

Africa’s Cocoa Producers Alliance ordered the

destruction of 250,000 tons of cocoa during the

2000/2001 season in Côte d’Ivoire, Nigeria, Ghana,

and Cameroon. Government-stated economic goals

included export diversification, agricultural

diversification, extractive industries expansion, and

services sector expansion. The main focus of the

government’s budget was poverty reduction, fiscal

consolidation, repayment of external and domestic

debt, improved public expenditure management, and

structural reforms.

Donor activity returned to the country after the

national reconciliation forum was held in late 2001.

In late 2001, the IMF officially ended its freeze on aid

to Côte d’Ivoire that had been instituted in late-1998.

In early 2002, the EU and France re-established aid.

France subsequently announced budgetary aid of

183 million euros for Côte d’Ivoire, the most financial

aid France had ever given to an African country.

Shortly after, the African Development Bank (AfDB)

restored its assistance to Côte d’Ivoire and gave it a

$39 million loan to assist in meeting the country’s

outstanding interest payments. In April the AfDB

approved another loan of CFAfr23 billion for worker

training and education. The international financial

institutions continued, however, to express concerns

over good governance and transparency. After the

successful completion of the staff-monitored program

set up by the IMF in March 2002, it approved a

$365 million, 3-year PRGF. Also, in March 2002,

the World Bank approved an interim PRSP compiled

by the government. On April 20, 2002, the Paris

Club of official bilateral creditors signed a $2.3 billion

debt scheduling deal with Côte d’Ivoire. Because of

increased political stability, the IMF also announced

plans to consider the country for the HIPC initiative in

September 2002. Efforts are ongoing to complete

the final PRSP in the second half of 2002.

Origins of GDP (2000)

Real GDP Growth Rate

Tertiary

(43%)

Primary

(33%)

Secondary

(24%)

-4

-2

0

2

4

6

8

1997 1998 1999 2000 2001

Percent

CÔTE D’IVOIRE
188

Main Trade Partners, percent of total, 2000

Markets Sources

France 11.4% Nigeria 19.8%

United States 6.4% France 15.1%

Netherlands 7.5% Belgium/

Luxembourg

3.0%

Mali 4.4% Italy 2.7%

Main Trade Commodities, US$ million, 2000

Exports Imports

Cocoa &

products

1,031 Capital goods 446

Petroleum &

products

735 Fuel &

lubricants

839

Timber 305 Food

products

431

Coffee &

products

302

-320

-240

-160

-80

0

80

160

240

320

400

480

1997 1998 1999 2000 2001

Trade Profile

Led by cocoa and coffee, which accounted for 60

percent of the area under cultivation, agriculture

was the main contributor to Côte d’Ivoire’s exports

in 2001. The country’s trade performance

depends on the price fluctuation of cocoa. Côte

d’Ivoire produced more than 40 percent of the

world’s supply of cocoa in 2001. Although Côte

d’Ivoire also exports palm oil and rubber, the nation

continued to experience declining international

prices for these products. Many forest resources

have been depleted; however, timber remained a

major export.

In 2001, U.S. exports to Côte d’Ivoire consisted

primarily of machinery and equipment; and U.S.

imports from Côte d’Ivoire consisted primarily of

cocoa. In addition, Côte d’Ivoire has been

designated a beneficiary country under AGOA.

AGOA (including GSP) imports totaled $13.3 million

in 2001.

Investment and Privatization Profile

Direct foreign investment declined significantly

during the last 2 years because of political

instability that resulted in severed international

ties. Foreign firms continued to focus on mining

(gold and nickel) and crude petroleum exploration.

In 2001 and 2002, Canadian, Australian, and

South African mining companies entered into new

contracts. The agro-industry also attracted foreign

interest. France was Côte d’Ivoire’s main

investment source.

Because of an ambitious privatization program in

the 1990s, which resulted in the privatization of

most of the 60 parastatals, few firms remain to be

privatized. Remaining state-owned companies

included the telecommunications company, the

vegetable oil producer, a hotel, the electric

company, and a petroleum refinery. In October

2001, Côte d’Ivoire sold 51 percent of its stake in

Nouvelle Air Ivoire, the domestic airline, to All

Africa Airways, owned by Air France. The airline

suspended operation several times, but in June

2000, resumed service with privatization

assistance.

0

50

100

150

200

250

300

350

1996 1997 1998 1999 2000

Net Foreign Direct Investment

Millions of U.S. Dollars

CÔTE D’IVOIRE

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Agriculture and forestry (cotton, timber)

S Agro-industry
189

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, FC bn) 313.3 1,376 1,062.7

GDP (US$ bn) 14.4 6.0 -8.4

CPI Inflation (annual average; %) 554 358 -196.0

Goods Exports (US$ mn) 760 750 -10.0

Goods Imports (US$ mn) 1,035 1,024 -11.0

Trade Balance (US$ mn) -275 -274 1.0

Current Account Balance (US$ mn) -798 -800 -2.0

Foreign Exchange Reserves

(US$ mn) n/a n/a n/a

Total External Debt (US$ mn) 12,862 n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (FC/US$) 21.8 231 209.2

Economic Profile

The Democratic Republic of the Congo has many

resources, but has been plagued by civil unrest and

regional instability over the past several years. The

eruption of Mount Nyiragongo in Gonea further

exacerbated the refugee situation and economic

turmoil. Consequently, agricultural output was low in

2001. The Democratic Republic of the Congo’s main

crops include coffee, palm oil, cotton, cocoa, rubber,

and tobacco. A major portion of the population is

employed in the informal sector or is engaged in

subsistence farming. Economic growth is hampered

by lack of investment outside the mining sector,

inadequate infrastructure, unreliable energy supply,

and social turmoil. Though not fully tapped, the

Democratic Republic of Congo has hydropower

energy potential from the Congo River.

A new president was appointed in January 2001,

and has worked to improve economic conditions,

beginning with the liberalization of foreign exchange

controls when he took office. The government’s

interim economic adjustment program consisted of

tightening fiscal oversight and controlling monetary

growth. Overall domestic public spending was

approximately 6 percent. The Democratic Republic of

the Congo has not received official international aid

assistance for many years. The new president has,

however, made economic and management

improvements; and the country is now eligible for

official international aid assistance. In 2001, the

World Bank prepared a transitional support strategy

to promote economic recovery and social

stabilization. In July 2001, the IMF approved a

6-month staff monitoring program that could lead to

funding. In January 2002, the World Bank

announced technical assistance of $50 million, and

the EU committed $108 million in assistance.

Origins of GDP (1997)

Real GDP Growth Rate

DEMOCRATIC REPUBLIC

of the congo

Agriculture

(58%)

Industry

(17%)

Services

(25%)

-12

-10

-8

-6

-4

-2

0

1997 1998 1999 2000 2001

Percent
190

Main Trade Partners, percent of total, 2000

Markets Sources

Belgium 61.1% South Africa 21.2%

United States 17.4% Belgium 15.7%

Finland 6.1% Nigeria 10.4%

Netherlands 2.6% Zambia 5.2%

Main Trade Commodities, US$ million

Exports (2000) Imports (1999)

Diamonds 437 Consumer goods 263

Crude Oil 141 Capital goods 110

Cobalt 97 Raw materials 115

Copper 45

Trade Profile

Most of the Democratic Republic of the Congo’s trade

is with industrialized countries. Formal regional trade

was minimal; informal trade and smuggling, though

difficult to quantify, is believed to be substantial.

Mining accounted for almost 80 percent of the

Democratic Republic of the Congo’s export revenue.

The main minerals were copper, cobalt, diamonds,

and zinc, with small amounts of cadmium, cassiterite,

gold, silver, and wolframite. The Democratic Republic

of the Congo was the third largest producer of

diamonds by volume, though the diamonds tend to be

of lower quality. Diamonds accounted for most of the

mining revenue. Most mining activity was in the

Katanga region. In April 2001, the government

abrogated the IDI Diamond (Israeli) monopoly, which

had increased illegal diamond sales. Societe Miniere

de Bakwanga (Miba) is 80 percent government

owned and controls one-third of the diamond

production. General des carrieres et des mines

(Gecamines) is the state-owned copper and cobalt

producer. The main cash crops were coffee and

timber.

In 2001, U.S. exports to the Democratic Republic of

the Congo consisted primarily of cereals and

furniture; and U.S. imports from the Democratic

Republic of the Congo consisted primarily of mineral

fuels. The Democratic Republic of the Congo is not

designated an AGOA-beneficiary country.

Investment and Privatization Profile

The Democratic Republic of the Congo’s

infrastructure has suffered from years of civil unrest.

Roads and railroads remain in inadequate condition.

River and air transport are both frequently used;

however, air transportation is poorly regulated.

Because of frequent conflict and instability,

investment external to the mining and petroleum

sectors has been nonexistent. As agreed upon at the

Inter-Congolese Dialogue, the government continued

to review contracts and concessions awarded during

the conflict. In early 2002, the government began

work on drafting a new mining investment code aimed

at increasing foreign investment by lowering taxes,

abolishing export duties, and improving licensing

transparency. The Democratic Republic of the

Congo’s crude petroleum reserves are being exploited

primarily by two consortia: Chevron (U.S.), Union Oil

(U.S.), and Teikoku Oil (Japan); and Petrofina

(Belgium) and Shell (Anglo-Dutch).

-300

-240

-180

-120

-60

0

60

120

180

240

300

360

1997 1998 1999 2000 2001

democratic republic of congo

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

0

1

2

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Minerals and mining (diamonds, copper, cobalt)
191

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Dfr bn) 98.3 102.3 4.0

GDP (US$ mn) 553.2 575.7 22.5

CPI Inflation (annual average; %) 2.3 1.8 -0.5

Goods Exports (US$ mn) 75 75 0.0

Goods Imports (US$ mn) 270 261 -9.0

Trade Balance (US$ mn) -195 -186 9.0

Current Account Balance (US$ mn) -39 -17 22.0

Foreign Exchange Reserves

(US$ mn)

67.8 70.3 2.5

Total External Debt (US$ mn) 238 n/a n/a

Debt Service Ratio, paid (%) 5.5 n/a n/a

Exchange Rate (Dfr/US$) 177.7 177.7 0.0

Economic Profile

Djibouti’s economy is based primarily on service

activities for France’s military garrison and its

strategic location as an outlet to the Red Sea and

the Indian Ocean. Djibouti’s service sector, which

accounted for 80 percent of GDP in 2001, depends

on serving Ethiopia through its port, rail, and air

links. In 2002, Ethiopia signed a major agreement

with Djibouti to use its Red Sea port. Although the

agriculture sector contributes minimally to GDP, it

accounted for approximately 75 percent of

employment in 2001. Almost 45 percent of Djibouti’s

population lives in poverty and nearly 60 percent are

unemployed. Over the last 3 years, shortages of

arable land, drought, and food shortages have cause

malnutrition to increase from 24 percent to 30

percent of the population. The country has little

manufacturing aside from those industries that rely

on the port and airport.

In 2002, Djibouti’s Ministry of Finance and the

Banque Nationale de Djibouti continued to move

toward increased budgetary discipline. The

Parliament enacted legislation in January 2002 to

bolster existing legal protection for intellectual

property. In November 2001, Djibouti agreed to

carry out IMF-requested budgetary reforms. In

March 2002, the African Development Bank

provided several grants and loans to Djibouti, valued

at $7.22 million, directed at poverty reduction, good

governance, business environment enhancement,

and improving the situation of women. In June 2002,

the World Bank approved a $15 million loan to

finance Djibouti’s long-term health sector

development program and granted Djibouti a $10

million fiscal consolidation credit. In June 2002, the

Government announced that it would begin issuing

“certificates of origin” for diamonds produced in the

country in an effort to stem the flow of smuggled

diamonds.

Origins of GDP (2001)

Real GDP Growth Rate

DJIBOUTI

Primary sector

(4%) Construction & public works

(7%)

Other secondary

(9%)

Other tetiary

(52%)

Transport & communications

(28%)

0

1

2

3

4

1997 1998 1999 2000 2001

Percent
192

Main Trade Partners, percent of total, 2000

Markets Sources

Somalia 56% Saudi Arabia 18%

Yemen 24% France 10%

France 6% China 10%

UAE 5% Ethiopia 10%

Main Trade Commodities, US$ million, 1998

Exports Imports

Re-exports 45 Food &

beverages

53

Locally produced

goods

14 Qat 17

Petroleum

products

17

Machinery 15

Trade Profile

A significant portion of Djibouti’s trade consisted of

goods destined for Ethiopia and Somalia. Djibouti

exports little beyond personal effects and personal

vehicles, hides and skins, salt, and re-exported

products. In October 2001, the Ethiopian Chamber

of Commerce and Djibouti’s ministers met to

discuss Ethiopia’s concern regarding the Djibouti

Ministry of Transport’s September 2001 legislation

reserving key port handling and forwarding activities

for national companies. The United States and

Djibouti signed an agreement in June 2002 to

establish a radio relay station valued between $7

million and $8 million.

In 2001, U.S. exports to Djibouti consisted primarily

of fertilizer and vehicles and parts; and U.S. imports

from Djibouti consisted primarily of agricultural and

animal products. In addition, Angola has been

designated a beneficiary country under AGOA.

Investment and Privatization Profile

Increased investment was hampered by civil unrest.

Sysnet (U.S.) is currently modernizing Djibouti’s

telecom billing system. A principal condition of the

IMF’s structural adjustment agreement is that

Djibouti privatize government-owned monopolies. In

September 2001, the government announced plans

to privatize its telecommunications, utilities, and

transport (airport) parastatals. These

announcements were not, however, met with

significant investor responses.

0

2

4

6

8

10

1996 1997 1998 1999 2000

0

5

10

15

20

25

30

1997 1998 1999 2000 2001

djibouti

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Infrastructure projects (port, airport)
193

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 954.9 1,346.6 391.7

GDP (US$ bn) 1.3 1.8 0.5

CPI Inflation (annual average; %) 6 6 0.0

Goods Exports (US$ mn) 1,363 2,182 819.0

Goods Imports (US$ mn) 464 696 232.0

Trade Balance (US$ mn) 899 1,486 587.0

Current Account Balance (US$ mn) -366 -480 -114.0

Foreign Exchange Reserves

(US$ mn)

17.3 38.4 21.1

Total External Debt (US$ mn) 225 n/a n/a

Debt Service Ratio, paid (%) 1.2 0.6 -0.6

Exchange Rate (CFAfr/US$) 712 733 21.0

Equatorial Guinea exhibited one of the fastest

growing economies in the world in 2001, primarily

because of the rapid development of the petroleum

sector. Despite having one of the highest GDP

growth rates in Africa, Equatorial Guinea continues to

have widespread poverty, income disparities, and

severe social problems. Agriculture is predominantly

subsistence farming and employs a large portion of

the population. The once dominant agriculture sector

contributed minimally to GDP in 2001, but the

government announced in November 2001 that it

would use some of its petroleum revenues to

facilitate agricultural development and to revive rural

communities. The lack of infrastructure has limited

potential tourism growth.

Government policy reportedly exhibited lackluster

macroeconomic management, limited fiscal

discipline, increasing debt, and rising corruption in

2001. Primarily because of tight monetary policy by

the central bank, however, inflation was low and

stable. In February 2002, the World Bank reached

an agreement with Equatorial Guinea to fund

transport development, including roads and ports.

This program represented the first agreement with

the World Bank in over a decade. The IMF also

returned to Equatorial Guinea and urged the

government to control better petroleum revenue

expenditure and to promote transparency in the

accounting of petroleum receipts.

Origins of GDP (1998)

Real GDP Growth Rate

EQUATORIAL

GUINEA

Agriculture

(15%)

Oil

(61%)

Others

(5%)

Services

(12%) Forestry

(7%)

0

10

20

30

40

50

60

70

80

1997 1998 1999 2000 2001

Percent

Economic Profile
194

Main Trade Partners, percent of total, 1999

Markets Sources

China 24% United States 60%

Japan 7% France 12%

United States 7% Spain 8%

Korea 5% Italy 6%

Main Trade Commodities, US$ million, 1999

Exports Imports

Petroleum 629 Petroleum

sector

352

Timber 63 Manufactured

goods &

equipment

76

Cocoa 7

Trade Profile

Equatorial Guinea’s main cash crops are cocoa and

coffee, but their relative importance has declined

with the development of the petroleum sector.

Equatorial Guinea has become one of the largest

petroleum producers in the Gulf of Guinea. Petroleum

production began to grow in the mid-1990s and

doubled between 2000 and 2002. The United States

was a primary petroleum export destination. After

petroleum, the main source of foreign exchange was

timber. Timber exports have increased in recent

years, especially to Asia. Imports were primarily

destined for the petroleum industry, public

infrastructure projects, and consumer consumption.

In 2001, U.S. exports to Equatorial Guinea consisted

primarily of machinery and mechanical products; and

U.S. imports from Equatorial Guinea consisted

primarily of mineral fuels. Equatorial Guinea is not

designated an AGOA-beneficiary country.

Investment and Privatization Profile

The rise in petroleum production in Equatorial Guinea

is attracting more international attention. Despite the

political uncertainty, petroleum companies continue

to press ahead with new exploration and production.

A principal petroleum sector investment source in

2001 was the United States. Since 1995, U.S.

companies have invested more than $3 billion in the

country, the third largest single country amount in

Africa. In 2001, the U.S.-owned company, Amerada

Hess, announced several new crude petroleum

discoveries in the offshore Rio Muni Basin. The

company owns 85 percent of the Rio Muni project

along with the South Africa-based Energy Africa,

which owns the remaining 15 percent. Sasol

Petroleum International, a South African petroleum

and natural gas company, acquired a 20 percent

interest in a block of the Rio Muni Basin. In February

2002, Gepetrole, the state-owned petroleum

company, awarded an offshore exploration license to

Petronas (Malaysia). In 2002, a French company,

Technip-Coflexip, won a contract from Mobil

Equatorial Guinea for a section of the offshore Bioko

Island.

In order to attract foreign companies to the mineral

sector, the government offered various investment

incentives. Nonpetroleum sector investment was

hampered by political uncertainty, reported

corruption, and a small domestic market.

0

50

100

150

200

250

300

350

400

1996 1997 1998 1999 2000

-400

-300

-200

-100

0

100

200

300

400

500

1997 1998 1999 2000 2001

equatorial guINEA

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products
195

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Nfa bn) 7.6 8 0.4

GDP (US$ bn) 0.8 0.6 -0.2

CPI Inflation (annual average; %) 14 15 1.0

Goods Exports (US$ mn) 24 20 -4.0

Goods Imports (US$ mn) 500 500 0.0

Trade Balance (US$ mn) -476 -480 -4.0

Current Account Balance (US$ mn) -195 -190 5.0

Foreign Exchange Reserves

(US$ mn)

n/a n/a n/a

Total External Debt (US$ mn) 311 n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (Nfa/US$) 9.7 13.5 3.8

Economic Profile

Eritrea’s economy continued its recovery in 2001

after years of social turmoil and persistent droughts.

In 2001, the World Food Program stated that 1.8

million Eritreans needed food aid, despite recovering

grain production in 2001. The UN Development

Program also funded the artisanal fisheries sector

development. The agriculture and fishing industries

contributed substantially to GDP and employed

approximately 70 percent of the population. The

main crops are teff, millet, wheat, sesame,

vegetables, barley, fruit, cotton, and coffee. The

fishing industry produces primarily sardines,

anchovies, shrimp, and lobsters. The mining sector

continued to depend on artisanal gold, while copper,

zinc, and steel were also minimally mined. Although

there are several projects in progress, petroleum

and natural gas have not contributed significantly to

GDP. In May 2002, the government approved a

major national strategy aimed at rapid economic

development to help rebuild the country after war.

The government focused on continued liberalization

and implementation of market-oriented economic

policies. Economic policy focused on developing

infrastructure and improving food security. The

supply of food aid in 2001 helped to reduce inflation

rates. Multilateral lenders, such as the World Bank

and IMF, have commended the government’s fiscal

policy. In May 2002, Eritrea signed a $60 million

loan agreement with the World Bank, aimed at a

variety of development projects. Also in May 2002,

the UN signed a $242 million aid agreement with the

government.

Origins of GDP (1999)

Real GDP Growth Rate

ERITREA

Agriculture

(17%)

Industry

(27%)

Other services

(13%)

Manufacturing

(10%)

Distributionservices

(32%)

Others

(1%)

-2

0

2

4

6

8

10

1997 1998 1999 2000 2001

Percent
196

Main Trade Partners, percent of total, 1998

Markets Sources

Sudan 27.2% Italy 17.4%

Ethiopia 26.5% UAE 16.2%

Japan 13.2% Germany 5.7%

UAE 7.3% UK 4.5%

Main Trade Commodities, US$ million, 1998

Exports Imports

Crude materials 12 Machinery &

transport

equipment

141

Food & live

animals

8 Manufactured

goods

88

Manufactured 4 Food & live

animals

63

Chemical &

chemical

products

21

Trade Profile

Agricultural sector expansion, which contributed a

substantial share of exports, was constrained by

persistent drought. In 2001, Eritrea’s trade deficit

was driven by the demand for capital imports that

were used in the reconstruction process. After

mounting political tensions in 1998, trade was

suspended with Ethiopia, formerly Eritrea’s largest

trade partner. The government has reoriented

attention toward East Asia and the Great Lakes

region of Africa in search of trade partners. The

biggest hindrance to trade expansion is the lingering

effects of war and a weak economy.

In 2001, U.S. exports to Eritrea consisted primarily

of cereals; and U.S. imports from Eritrea consisted

primarily of animal products. In addition, Eritrea has

been designated a beneficiary country under AGOA.

Investment and Privatization Profile

Foreign investment helped to drive GDP growth prior

to the Eritrea-Ethiopia conflict. The government

continued to support partnerships with international

donors and foreign private investors. The targeted

areas for investment were fishing, offshore crude

petroleum and natural gas exploration, mining, and

construction enterprises. In May 2001, the

government signed a petroleum exploration

agreement with CMS Oil and Gas (U.S.). Investment

inhibitors include inadequate infrastructure, social

upheaval in the aftermath of war, and a small

domestic economy. In 2001, privatization plans

continued for the majority of Eritrea’s 42 state-owned

companies, including its hotels. Over the last 2 years,

a dozen enterprises have been privatized, including a

dairy factory, brewery, and a corrugated iron sheet

factory. Eritrea’s first private bank was established in

May 2002 and planned to commence operations in

the latter half of 2002. 0

5

10

15

20

25

30

1997 1998 1999 2000 2001

eritrea

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

0

20

40

60

80

100

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (gold)
197

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Birr bn) 51.4 51.2 -0.2

GDP (US$ bn) 6.3 6.1 -0.2

CPI Inflation (annual average; %) 0 -7.5 -7.5

Goods Exports (US$ mn) 486 502 16.0

Goods Imports (US$ mn) 1,131 1,300 169.0

Trade Balance (US$ mn) -645 -798 -153.0

Current Account Balance (US$ mn) 16 -300 -316.0

Foreign Exchange Reserves

(US$ mn)

306 427 121.0

Total External Debt (US$ bn) 5.5 5.4 -0.1

Debt Service Ratio, paid (%) 17 16 -1.0

Exchange Rate (Birr/US$) 8.2 8.3 0.1

Ethiopia is one of the least developed countries in the

world. Agriculture represented the largest

percentage of GDP in 2001 and employed more than

80 percent of the population. Economic performance

depends on the agriculture and forestry sectors’

performance; consequently, these sectors are

affected by environmental conditions. One-fifth of

arable land is cultivated, and a high dependence on

rainfall leaves the country vulnerable to famine and

crop failure. In addition, low fertilizer use, coupled

with soil erosion, have historically produced low

yields. Although the country experienced a buoyant

harvest in 2001 that increased food security, the

food deficit affected more than 5 million people.

In mid-2002, the Council of Ministers in Ethiopia

approved a $2 billion budget for the 2002-2003

fiscal year. The budget included an increase in capital

expenditures funding and for regional governments to

build institutional capacity and to improve

infrastructure. Economic policy has focused on

modernizing and diversifying agriculture to reduce

poverty and increase foreign earnings.

The IMF completed Ethiopia’s second review of the

PRGF approved in March 2001 and made available

an additional $30 million. In 2001, the EU provided

Ethiopia’s largest grant ever, $480 million, to help

rebuild infrastructure and fight poverty. In mid-2002,

Italy cancelled $350 million of Ethiopian debt to free

funds for development programs. Through its

development cooperation program with Ethiopia, Italy

has disbursed within the last 5years about $101

million for the implementation of such programs. The

IMF and the World Bank granted $1.9 billion of debt

relief to Ethiopia as a part of it’s efforts to qualify for

the HIPC initiative. This assistance is expected to

reduce Ethiopia’s total external debt by 47 percent.

The World Bank, which resumed assistance in late

2000, approved a loan of $120 million in mid-2002

to help stabilize the economy and increase economic

growth. The government also submitted the PRSP in

2002.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

ETHIOPIA

Agriculture & allied activities

(45%)

Industry

(11%)

Services sector

(44%)

-2

0

2

4

6

8

1997 1998 1999 2000 2001

Percent
198

Main Trade Partners, percent of total, 2000

Markets Sources

Germany 17.8% Saudi Arabia 25%

Japan 10.8% United States 8.8%

Djibouti 10.5% Italy 6.7%

Saudi Arabia 7.7% Russia 3.5%

Main Trade Commodities, US$ million, 2001

Exports Imports

Pulses 8 Consumer

goods

459

Capital goods 436

Fuel 403

Semi-finished

goods

278

Trade Profile

Ethiopia’s export performance relies on the coffee

industry, which in recent decades produced

approximately two-thirds of export earnings.

Decreases in world coffee prices and an increase in

coffee berry disease have negatively affected coffee

production and terms of trade. Import costs

increased primarily because of increased machinery

imports destined for the reconstruction process. In

order to increase foreign exchange and to diversify

trade, government policy has emphasized a shift from

food crops to cash crops. This policy adopted by the

Agricultural Development Led Industrialization

Strategy, targets on poverty reduction, economic

growth, and reduced food imports (food aid).

In 2001, U.S. exports to Ethiopia consisted primarily

of cereals; and U.S. imports from Ethiopia consisted

primarily of coffee, tea, mate, and spices. In addition,

Ethiopia has been designated a beneficiary country

under AGOA, including the apparel provision. AGOA

(including GSP) imports from Ethiopia totaled

$822,000 in 2001.

Investment and Privatization Profile

In early 2002, the government streamlined its

bureaucracy and immigration formalities and began

offering investment incentives to encourage

nonresident Ethiopian investment. Inadequate

telecommunications network, underdeveloped energy

provision, inadequate transport infrastructure, and

reported corruption continued to hamper investment.

For example, reported corruption at the Commercial

Bank of Ethiopia led to questions regarding the

strength of the financial sector. The majority of the

charges targeted to faulty loans to Star Business

Group. In March 2002, the governor of the National

Bank appointed new officials to carry out necessary

reforms.

Since 1995 approximately 180 parastatals have been

privatized. The privatization of state-owned

enterprises has, however, subsided primarily because

of reported corruption in the privatization process.

The issue of reported corruption in the privatization

process has led to the renationalization of five

enterprises, including the Taitu Hotel, a soap factory,

a printing press, and a flour mill. In late 2001, the

new director of the Ethiopian Privatization Agency was

announced. In January 2002, the government

reissued bid calls for nine state-owned enterprises

because of a lack of investor interest in the initial

round. As of mid-2002, 12 agricultural enterprises

had been privatized. The Ethiopian Coffee Exporting

Enterprise, Ethiopian Fruit Marketing Enterprise, and

a few other parastatals awaiting privatization were

reorganized into share companies. Despite

privatization efforts, the manufacturing sector

remains largely state controlled.

0

20

40

60

80

100

120

140

160

180

1997 1998 1999 2000 2001

ethiopia

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

0

50

100

150

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (gold)

S Petroleum and energy-related products

S Agro-industry
199

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAFr 000bn) 2.5 2.6 0.1

GDP (US$ bn) 3.5 3.5 0.0

CPI Inflation (annual average; %) 0.5 1.7 1.2

Goods Exports (US$ mn) 3,149 2,626 -523.0

Goods Imports (US$ mn) 823 880 57.0

Trade Balance (US$ mn) 2,326 1,746 -580.0

Current Account Balance (US$ mn) 608 -59 -667.0

Foreign Exchange Reserves

(US$ mn)

190 35 -155.0

Total External Debt (US$ bn) 4 3.6 -0.4

Debt Service Ratio, paid (%) 13.5 25.5 12.0

Exchange Rate (CFAfr/US$) 712 733 21.0

The heavily petroleum-dependent country of Gabon

exhibited modest growth in 2001 driven by a decline

in petroleum production. Attempts to diversify the

economy away from petroleum dependency remained

relatively unsuccessful. Consequently, the economy

continues to be vulnerable to changing international

petroleum prices. Agriculture represented a small

portion of GDP in 2001. Agriculture sector

expansion was constrained by limited arable land and

inadequate infrastructure. Forestry contributed a

larger amount to GDP, but deforestation remains a

government concern. With 70 percent of the country

covered by forest, Gabon is Africa’s fourth largest

producer of tropical wood. A weakened economy,

falling food prices, and a tight monetary policy by the

regional central bank kept inflation relatively low.

In 2001, government reform policies were

coordinated with the World Bank and aimed at

diversifying the economy and reducing debt.

IMF-based reforms progressed, and the new

government sought to negotiate a new IMF program

by the middle of 2002. In mid-2002, the government

also began negotiations for a debt-rescheduling

agreement with the Paris Club to alleviate the

pressure of debt servicing on public finances. In in a

June 2002 review, the IMF requested that the

government improve budgetary management and

implementation of poverty-reduction measures.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

GABON

Primary

(7%)

Secondary

(61%)

Tertiary

(32%)

-8

-6

-4

-2

0

2

4

6

8

1997 1998 1999 2000 2001

Percent
200

Main Trade Partners, percent of total, 2000

Markets Sources

United States 50.2% France 64.8%

France 17.1% United States 5.1%

China 7.7% Belgium 4.2%

Netherland

Antilles

4.3% Netherlands 2.5%

Main Trade Commodities, US$ million, 2000

Exports Imports

Petroleum

(crude)

2,564 Oil Sector 275

Timber 381 Public Sector 12

Manganese 107 Forestry

Sector

8

Trade Profile

Petroleum represented the predominant export

commodity. Gabon’s main cash crops are coffee,

cocoa, palm oil, and rubber. Petroleum sector

expansion, however, has reduced the incentive to

produce cash crops. In September 2001, the

European Union renewed a 4-year fishing agreement

allowing EU vessels to fish in Gabon’s territory.

Timber also contributed to export earnings, and in

2001, the government passed a new forestry code

aimed at better management in order to avoid

deforestation. Staple food products, such as cereal,

represented a substantial portion of Gabon’s imports.

The increase in U.S. exports to Gabon was primarily

because of the demand for petroleum equipment.

In 2001, U.S. exports to Gabon consisted primarily

of machinery and mechanical appliances; and U.S.

imports from Gabon consisted primarily of mineral

fuels. In addition, Gabon has been designated a

beneficiary country under AGOA. AGOA (including

GSP) imports from Gabon totaled $938.8 million in

2001.

Investment and Privatization Profile

The majority of investment targeted the petroleum

sector. In recent years, U.S. firms have increased

their presence in the petroleum sector. In February

2002, Royal Dutch/Shell discovered a new onshore

crude petroleum deposit at fields jointly owned by

Amerada Hess (U.S.). In May 2002, Energy Africa

(South Africa) signed a production-sharing contract

with the government covering three fields of Akoum

Permit. With the Société Nationale de Bois du

Gabon’s loss of its monopoly in August 2001 and the

introduction of new forestry legislation, however, the

government opened the way for increased investment

in the timber sector. Investment outside the

petroleum sector was hindered by lack of skilled and

high input costs.

The government’s reportedly tenuous commitment to

privatization efforts slowed down privatization efforts.

Privatization plans continued for the Trans-Gabanese

railway, the state electricity and water company, and

the telecommunications company (OPT). In January

2002, Price Waterhouse Coopers was chosen to

liquidate OPT. France was a major participant in

investment and privatization efforts.

-2500

-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500

1997 1998 1999 2000 2001

gabon

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

-150

-100

-50

0

50

100

150

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Minerals and mining (manganese)

S Forestry (timber, wood processing)
201

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, D mn) 5,171 5,641 470.0

GDP (US$ mn) 404.3 352.6 -51.7

CPI Inflation (annual average; %) 0.8 4.3 3.5

Goods Exports (US$ mn) 126.5 n/a n/a

Goods Imports (US$ mn) 192.3 n/a n/a

Trade Balance (US$ mn) -65.8 n/a n/a

Current Account Balance (US$ mn) -19.4 n/a n/a

Foreign Exchange Reserves

(US$ mn)

109 111 2.0

Total External Debt (US$ mn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (D/US$) 12.7 16 3.2

The Gambia is Africa’s smallest country and one of

the world’s poorest with approximately 47 percent of

the population living below the international poverty

level. In 2002, agriculture employed 75 percent of

the population and accounted for 33 percent of GDP.

Cross-border trade and other services accounted for

approximately 67 percent of GDP. The agricultural

sector is highly dependent on weather conditions.

Main crops include groundnuts, millet, sorghum,

maize, and rice. Groundnuts provided income for 70

percent of the population. Small-scale manufacturing

remained limited to activities such as the processing

of peanuts, fish, and animal hides.

The Gambia’s economic development policies focused

on complying with IMF and World Bank agreements

in 2001. In November 2001, the EU announced a

new 5-year $44 million financial package for The

Gambia. In 2002, the IMF and World Bank approved

a $16 million loan to finance The Gambia Trade

Gateway Project, which was designed to encourage

private sector growth in the processing, packaging,

transshipment, and distribution of goods; to attract

domestic and foreign investment; and to produce an

internationally competitive business environment. The

IMF announced its intent to arrange a new 3-year,

$27 million PRGF initiative for The Gambia during

2002. The initiative will stress monetary policy

reforms limiting inflation, improved tax collection, the

privatization of state-owned enterprises, and reform

of the groundnut industry.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

the gambia

Agriculture

(33%)

Industry

(13%)

Services

(54%)

0

1

2

3

4

5

6

7

1997 1998 1999 2000 2001

Percent
202

Main Trade Partners, percent of total, 2000

Markets Sources

Belgium/

Luxembourg

25.6% China (incl.

Hong Kong)

17.9%

Japan 14.9% UK 10.4%

UK 14.1% Netherlands 8.5%

Brazil 7.1% France 6.4%

Main Trade Commodities, US$ million, 1999

Exports Imports

Groundnut

products

10.0 Food &

beverages

89.4

Fish & fish

preparation

3.1 Machinery &

transport

equipment

46.5

Re-exports 104.0 Manufactures 53.8

Minerals &

fuel

12.4

Trade Profile

Groundnuts accounted for most of The Gambia’s

agricultural exports. The government has instituted

programs to diversify the economy by promoting

exports of horticultural products, flowers, and exotic

fruits. These efforts have been restrained by

under-investment and inefficiency at the Port of

Banjul. The Gambia trade profile relied on re-exports,

groundnuts, fish, and fish processing. In 2001, U.S.

exports to The Gambia consisted primarily of

agriculture and animal products. In 2001, U.S.

imports from The Gambia consisted primarily of fish

and ocean products. The Gambia is not designated

an AGOA-beneficiary country.

Investment and Privatization Profile

Investment continued to be hampered by frequent

energy shortages, inadequate transportation

networks, and a small domestic market. In November

2001, the Director General of the Kuwaiti Fund

signed a $10 million, 24-year loan agreement with

The Gambia for the construction of a 115-kilometer

road in the North Bank Division. In early 2002, Africa

Oil and Gas, Fusion Oil, and an Anglo-Australian

company announced plans to increase exploration in

The Gambia after an Australian petroleum company

made a promising discovery in late 2001. The

privatization of state-owned Gambia

Telecommunications and National Water and

Electricity Company was postponed beyond 2002. In

2001, Africell, became The Gambia’s first private

mobile telephone service company.

0

2

4

6

8

10

12

1996 1997 1998 1999 2000

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

the gambia

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

U.S. Trade Balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Fish and fish processing

S Tourism

S Agriculture
203

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, C bn) 27.1 38.1 11.0

GDP (US$ bn) 5.0 5.3 0.3

CPI Inflation (annual average; %) 25.2 32.9 7.7

Goods Exports (US$ mn) 1,898.4 1,843.0 -55.4

Goods Imports (US$ mn) 2,741.3 2,688.0 -53.3

Trade Balance (US$ mn) -849.9 -845.0 4.9

Current Account Balance (US$ mn) -412.6 -313.0 99.6

Foreign Exchange Reserves

(US$ mn)

232.1 265.0 32.9

Total External Debt (US$ bn) 6.7 6.8 0.1

Debt Service Ratio, paid (%) 16.2 15.3 -0.9

Exchange Rate (C/US$) 5,455.1 7,170.8 1,715.7

Agriculture is the mainstay of Ghana’s economy,

accounting for about 36 percent of GDP and 60

percent of employment. Mining, especially gold,

accounted for 6 percent of GDP and rivaled cocoa as

Ghana’s main foreign exchange earner in 2001.

Commercial forestry became the third largest source

of foreign exchange. Agriculture suffered from low

investment, a lack of technology investment, and the

removal of subsidies on fertilizers. Cocoa was

Ghana’s most important agricultural export, and

accounted for about 35 percent of total exports.

Less than 15 percent of Ghana’s cocoa trees were

at peak production age in 2001, and donors and the

government have been working to replace aging

trees. The mining and cocoa industries, both sectors

subject to volatile international prices, tried to

encourage price stability–the mining companies used

swaps and options, and the state-owned Ghana

Cocoa Board (Cocobod) traded on the futures

market. Ghana’s industrial sector is relatively broad

and diverse, and includes aluminum smelting, timber

and agricultural processing, brewing, cement

manufacturing, petroleum refining, textiles,

pharmaceuticals, and mining. Government jobs

accounted for most formal employment.

Government economic policy was heavily focused on

agreements with international financial institutions.

The government economic policy emphasized

macroeconomic stability and sustainable economic

growth. The government identified the fiscal deficit,

public sector debt, falling economic growth rates,

rising inflation, and high unemployment as the main

issues facing Ghana’s economy. In 2001, the

government increased fuel prices by 64 percent as it

moved toward market prices. Ghana qualified for the

HIPC initiative in March 2002.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

GHANA

Agriculture, forestry & fishing

(35%)

Manufacturing

(9%)

Services

(39%)

Other industry

(17%)

0

1

2

3

4

5

6

1997 1998 1999 2000 2001

Percent
204

Main Trade Partners, percent of total, 2000

Markets Sources

Togo 14.9% Nigeria 20.2%

Netherlands 13.2% Italy 12.2%

United States 10.8% UK 9.4%

UK 7.3% United States 6.9%

Main Trade Commodities, US$ million, 2000

Exports Imports

Gold 705 Manufactures 1,650

Cocoa beans &

products

437 Fuels 250,140

Timber &

products

175 Non-fuel

primary

products

140

Trade Profile

Cocoa is Ghana’s main cash crop. Cocobod has a

monopoly on external marketing and dominated the

domestic purchasing through its Produce Buying

Company. Cocoa smuggling through Côte d’Ivoire has

been increasing because of higher prices offered

there. In early 2002, the government attempted to

rectify this problem by increasing cocoa producer

prices. In 2001, gold exports surpassed cocoa. The

country’s largest gold producer, the Ashanti

Goldfields Company, accounted for 50 percent of

Ghanaian production. Ghana also is one of the

world’s largest exporters of manganese, which was

solely produced by the Ghana Manganese Company.

Ghana Bauxite is the sole producer of bauxite, and

mined only a small proportion of the reserves. The

main growth sectors include agriculture and

agro-processing industries, particularly fish products

and pineapples.

In 2001, U.S. exports to Ghana consisted primarily

of cereals, and machinery and mechanical

appliances; and U.S. imports from Ghana consisted

primarily of mineral fuels and cocoa. In addition,

Ghana has been designated a beneficiary country

under AGOA, including the apparel provision. AGOA

(including GSP) imports from Ghana totaled $42.9

million in 2001.

Investment and Privatization Profile

The government is committed to attracting new

investment. The Industry Revival Scheme provided

incentives by increasing access to capital, and the

Export Development Fund assisted private

entrepreneurs to invest in the export sector by

improving exporters’ access to short-term credit

funds. The government is drafting new legislation to

attract more investment in offshore crude petroleum

drilling by extending licensing periods, eliminating

offshore sites royalties, and reducing the petroleum

profit tax on deepwater sites. A variety of companies

invested in Ghana in 2001 and 2002. Tyme

International (UK) and a Ghanian company, Bytes and

PC World, established a joint venture to manufacture

computer components in Ghana. An American

insurance firm set up an office in Accra to process

claims. Gold Fields (South Africa) and Repadre Capital

Corporation (Canada) are buying Ranger Minerals’

(Australia) 90 percent stake in Abosso Gold.

The privatization of state companies is overseen by

the Divestiture Implementation Committee. In 2001

and 2002 GT was partially sold to G-Com (Malaysia)

and the new government is planning to sell an

additional stake in GT to increase competition. PBC

was partly privatized through sales of shares to the

public. The government continued plans to sell 25

percent of its shares in the Cocoa Processing

Company, and two development banks, the National

Investment Bank and Agricultural Development Bank.

-40

0

40

80

120

160

200

240

280

320

360

1997 1998 1999 2000 2001

ghana

Net Foreign Direct Investment

0

25

50

75

100

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

U.S. Trade Balance

S Minerals and mining (gold)

S Manufacturing

S Parastatal divestiture
205

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Gnf bn) 5,252 5,946 694.0

GDP (US$ bn) 3.0 3.1 0.1

CPI Inflation (annual average; %) 6.8 9.6 2.8

Goods Exports (US$ mn) 695 775 80.0

Goods Imports (US$ mn) 555 648 93.0

Trade Balance (US$ mn) 140 127 -13.0

Current Account Balance (US$ mn) -90 -76 14.0

Foreign Exchange Reserves

(US$ mn)

148 130 -18.0

Total External Debt (US$ mn) 3,388 n/a n/a

Debt Service Ratio, paid (%) 15.3 n/a n/a

Exchange Rate (Gnf/US$) 1,747 1,951 204.0

Mining continues to drive GDP performance in

Guinea. But having significant mineral wealth,

including more than 30 percent of the world’s

bauxite reserves, Guinea remains a relatively poor

country. Bauxite, aluminum, gold, and diamonds

accounted for 90 percent of exports and 70 percent

of government tax revenues. Guinea is the world’s

second largest producer of bauxite, which accounted

for 65 percent of its exports in 2001. Light

manufacturing and agriculture employed

approximately 80 percent of the population. The

agricultural sector accounted for approximately 65

percent of employment and 10 percent of exports.

Civil unrest in the Mano River countries of Guinea,

Liberia, and Sierra Leone continued to limit economic

development and created a humanitarian crisis. The

10-year struggle centers primarily on control over

Sierra Leone’s diamond fields. Easing of border

tensions with Sierra Leone and Liberia has

encouraged foreign companies to resume diamond

mining in Guinea, and has increased agricultural

production in the eastern border zone. Government

economic policy focused on dismantling the state-run

economy by privatizing parastatals, improving public

sector performance, improving regulatory

environment, liberalizing price controls, and

increasing tax collection efficiency. Good harvests,

lower petroleum prices, and continued donor support

helped stabilize inflation rates.

In May 2001, the IMF approved a 3-year, $82

million PRGF arrangement for Guinea, but relations

with the IMF and the World Bank were strained after

Guinea delayed presenting its 2002 budget in an

acceptable format. The delay could slow upcoming

disbursement from the IMF under the HIPC initiative.

The IMF and World Bank’s main areas of concern

were border tensions with Sierra Leone and Liberia,

inadequate efforts to alleviate corruption, and the

renationalization of previously privatized parastatals.

In April 2002, Guinea signed a $22.6 million

debt-reduction agreement with the United States to

finance poverty reduction, education, health care,

and infrastructure programs.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

guinea

Agriculture

(13%)

Industry

(26%)

Mining

(14%)

Construction

(8%)

Services

(39%)

0

1

2

3

4

5

6

1997 1998 1999 2000 2001

Percent
206

Main Trade Partners, percent of total, 2000

Markets Sources

Belgium 16.9% France 18.9%

United States 12.9% United States 11.0%

Russia 9.2% Côte d’Ivoire 8.5%

Ireland 8.8% Belgium 7.1%

Main Trade Commodities, US$ million, 1999

Exports Imports

Bauxite 285 Fuel &

energy

59

Gold 119 Capital goods 42

Aluminium 94 Food 41

Diamonds 24

Trade Profile

Exports of bauxite, gold, and diamonds, which

account for nearly 80 percent of Guinea’s exports,

have encountered declining international market

prices. In 2002, Guinea joined with The Gambia,

Nigeria, Ghana, Liberia, and Sierra Leone to establish

a common currency and central bank under the new

West African Secondary Monetary Zone by January

2003. In 2001, U.S. exports to Guinea consisted

primarily of machinery and mechanical appliances,

and inorganic chemicals; and U.S. imports from

Guinea consisted primarily of ores, slag, and ash. In

addition, Guinea has been designated a beneficiary

country under AGOA. AGOA (including GSP) imports

from Guinea totaled $191,000 in 2001.

Investment and Privatization Profile

Foreign investment targets primarily the mining

sector. Political instability, reported corruption, and a

poor business environment continue to deter foreign

investors in nonmining sectors. Guinea has

encountered difficulty in locating foreign partners for

recently privatized water and electricity parastatals.

The electricity company, was renationalized 3 months

after the company’s foreign partners Saur (Éectricité

de France) and HydroQuebec departed. DiaBras of

Canada announced in November 2001, that it had

signed an agreement giving it an option on a

60-percent interest in the Banankoro mine. In March

2002, Rio Tinto, an Anglo-Australian mining

company, signed a $14.5 million joint-venture

agreement with Trivalence to conduct preliminary

exploration of the Aredor kimberlite project. In May

2002, Omuium Nord Africain of Morocco opened a

$24 million gold mine in Guinea.

Net Foreign Direct Investment

0

10

20

30

40

50

1996 1997 1998 1999 2000

Millions of U.S. Dollars

0

10

20

30

40

50

1996 1997 1998 1999 2000

Millions of U.S. Dollars

-90

-60

-30

0

30

60

90

120

150

1997 1998 1999 2000 2001

guinea

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Key Investment and Privatization Sectors

S Minerals and mining (bauxite, gold, diamonds)

S Aluminum smelting

S Manufacturing
207

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 135.6 148.8 13.2

GDP (US$ mn) 190.4 203.8 13.4

CPI Inflation (annual average; %) 9.1 5 -4.1

Goods Exports (US$ mn) 80 68 -12.0

Goods Imports (US$ mn) 55.2 58 2.8

Trade Balance (US$ mn) 24.8 10 -14.8

Current Account Balance (US$ mn) 33.5 28 -5.5

Foreign Exchange Reserves

(US$ mn)

53.7 70 16.3

Total External Debt (US$ mn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CFAfr/US$) 712 733 21.0

Guinea-Bissau, the world’s sixth poorest country,

continues to rely heavily on subsistence agriculture,

fishing, and support from international donor

institutions. Guinea-Bissau continued to suffer from

the adverse effects of years of intermittent civil

unrest, an undercapitalized private sector,

inadequate infrastructure, poor rural market

development, and poor macroeconomic policies. GDP

growth fell sharply after social conflict resumed in

1998. In 2001, subsistence agriculture accounted

for 60 percent of GDP, employed approximately 85

percent of the population, and accounted for 90

percent of exports. The manufacturing sector,

primarily activities related to food-processing,

brewing, and cotton and wool processing,

contributed minimally to GDP. Political instability has

impeded government efforts to implement policies

promoting economic recovery.

The Guinea-Bissau government continued to initiate

programs designed to secure the restoration of the

IMF’s PRGF, which was suspended in May 2001. To

meet these objectives, the government reportedly

plans to improve its budgetary and financial

management, and to address donor concerns

regarding poverty reduction, economic diversification,

and public sector infrastructure development. The

IMF and the government agreed on a 4-month

program that could potentially lead to the restoration

of the PRGF in 2002. In February 2002, the World

Bank concluded a $26 million agreement to support

the Private Sector Rehabilitation and Development

Project in Guinea-Bissau. The project will provide

funds for privatization, infrastructure and legal

reform, improvement of the country’s business

environment, and settlement of domestic debt.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

guinea-Bissau

Agriculture and fishing

(62%)

Industry

(12%)

Services

(26%)

-35

-30

-25

-20

-15

-10

-5

0

5

10

15

1997 1998 1999 2000 2001

Percent
208

Main Trade Partners, percent of total, 2000

Markets Sources

India 51.4% Portugal 30.0%

Italy 2.7% Senegal 14.6%

South Korea 2.0% Thailand 8.5%

Belgium 2.0% China 5.7%

Main Trade Commodities, US$ million

Exports (1998) Imports (1999)

Cashew nuts 22.9 Foodstuffs 19.8

Fish and shrimp 0.5 Petroleum

products

6.4

0

2

4

6

8

10

12

1996 1997 1998 1999 2000

-2

-1

0

1

2

3

1997 1998 1999 2000 2001

Net Foreign Direct Investment

Millions of U.S. Dollars

guinea-bissau

Trade Profile

Guinea-Bissau has ample fish stocks, but was unable

to exploit this potential export commodity because of

the lack of a modern fishing fleet and onshore

processing facilities. In 2002, the majority of

Guinea-Bissau’s fishing activities were contracted out

to foreign fleets, primarily from the EU, in return for

licensing fees. Other leading exports include small

quantities of peanuts, palm kernels, and saw lumber.

In 2001, U.S. exports to Guinea-Bissau consisted

primarily of machinery and mechanical appliances. In

2001, U.S. imports from Guinea-Bissau consisted

primarily of printed material. In addition, Guinea-Bissau

has been designated a beneficiary country under

AGOA.

Investment and Privatization Profile

Investment in the nonpetroleum sector is inhibited by

weak infrastructure network, social unrest, erratic

power supplies, reported corruption, and extreme

poverty. However, the government continued its

privatization efforts in 2001. In 2002, the parastatal

petroleum company, PetroGuin, opened a new

licensing round for offshore crude petroleum

exploration, offering nine exploration licenses. In

February 2002, the government outsourced all

authority for the privatization of its parastatals

overseen by the recently established privatization

council. In March 2002, the government liquidated the

Banco Internacional da Guinea-Bissau and, for the first

time, granted operating licenses for a cellular

telephone service.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Key Investment and Privatization Sectors

S Agriculture (cashews)

S Petroleum and energy-related products

S Infrastructure development
209

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, KSh bn) 788.9 795.7 6.8

GDP (US$ bn) 10.4 10.1 -0.3

CPI Inflation (annual average; %) 6.2 0.8 -5.4

Goods Exports (US$ mn) 1,773 1,809 36.0

Goods Imports (US$ mn) 3,044 3,135 91.0

Trade Balance (US$ mn) -1,271 -1,326 -55.0

Current Account Balance (US$ mn) -238.2 -251.3 -13.1

Foreign Exchange Reserves

(US$ mn)

897.7 1,064.9 167.2

Total External Debt (US$ bn) 6.3 6 -0.3

Debt Service Ratio, paid (%) 17.3 18.1 0.8

Exchange Rate (KSh/US$) 76.1 78.5 2.4

Kenya is the most industrially developed country in

East Africa, although almost half of all agricultural

output is subsistence farming. Farming, cattle

rearing, forestry and fishing account for one- fourth

of GDP and 18 percent of employment in the formal

sector. In recent years the output of the fishing,

forestry and mining industries has decreased. Only 3

percent of Kenya is forested because wood is

constantly being cut for fuel, agriculture,

construction, tourism and industrial activities.

Depletion of fish reserves also is a concern. After

agriculture, tourism is the second largest foreign

exchange earner, accounting for one-fifth of GDP in

2001. Manufacturing accounted for 13 percent of

GDP. Most manufacturing was in agro-processing

industries such as grain milling, beer production, and

sugarcane crushing. Government economic policy

focused on increasing industrialization. The UN

Development Program attributed Kenya’s recent

modest economic performance to declining farm

production, a slump in external trade, and drought.

The World Bank suspended aid to the Kenya Power

and Lighting Corporation projects in April 2001. In

April 2002, the IMF and World Bank said that the

Kenyan government must make clear progress

toward reducing corruption and increasing structural

reforms if assistance were to resume. The IMF also

requested that the government privatize Telkom

Kenya, the telecommunications parastatal. The

government negotiated the sale of Telkom Kenya for

a year with Mount Kenya Consortium, but, in January

2002, the government rejected the consortium’s

final offer. In May 2002, the World Bank suspended

its financial support to the Kenya Urban Transport

Infrastructure Project because of reported

corruption. With the loss of IMF and World Bank

support, the Kenyan government turned to bonds to

raise finances.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

KENYA

Agriculture, forestry & fishing

(24%)

Manufacturing

(13%) Government services

(13%)

Trade, restaurants & hotels

(13%) Transport, storage & communications

(6%)

Others

(31%)

-1

0

1

2

3

1997 1998 1999 2000 2001

Percent
210

Main Trade Partners, percent of total, 2000

Markets Sources

UK 13.5% UK 12.0%

Tanzania 12.5% UAE 9.8%

Uganda 12.0% Japan 6.5%

Germany 5.5% India 4.4%

Main Trade Commodities, US$ million, 2000

Exports Imports

Tea 461 Industrial

machinery

518

Horticulture

products

278 Refined

petroleum

products

286

Coffee 154 Crude

petroleum

551

Petroleum

products

124 Motor

vehicles &

chassis

127

0

70

140

210

280

350

420

490

560

630

1997 1998 1999 2000 2001

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

kenya

Trade Profile

Kenya has a well developed export sector and is the

world’s leading supplier of black tea. Declining

international coffee prices have adversely affected

Kenyan foreign exchange earnings. Tea, coffee, and

horticulture were the main agricultural export

commodities, accounting for over half of all

merchandise exports. Other exports included

petroleum products and cement. Imports were

predominantly capital goods, industrial inputs, and

fuel. Processed food imports, however, have

increased recently because of years of drought.

In 2001, U.S. exports to Kenya consisted primarily of

aircraft and parts, and machinery and mechanical

appliances; and U.S. imports from Kenya consisted

primarily of apparel and clothing, and coffee, tea, and

spices. In addition, Kenya has been designated a

beneficiary country under AGOA, including the apparel

provision. AGOA (including GSP) imports from Kenya

totaled $58.9 million in 2001.

Investment and Privatization Profile

Inadequate infrastructure, the need for structural

reform, sporadic liberalization of the agricultural

sector, and reported corruption were the main

inhibitors to investment. For example, the main port

at Mombasa experienced problems with overstaffing

and poor productivity, despite government plans to

privatize the port. In addition, in August 2001, the

government replaced the Kenya Anti-Corruption

Authority with the Anti-Corruption Unit, and in May

2002, the government failed to pass an

anticorruption bill. After several years of intense

market share competition, South African Breweries

closed Castle Brewing in Kenya, leaving East African

Breweries as the country’s sole beer producer. In

June 2001, Swedish and South African companies

began building a sugar factory in Busia. Ogilvy Public

Relations Worldwide (U.S.), one of the first

advertising agencies to open an office outside South

Africa, opened an office in Kenya in March 2001.

Engen Kenya (South Africa) also expanded operations

in Kenya. In April 2001, Dana Petroleum (UK) was

approved to explore offshore crude petroleum sites.

Affrez (Australia) and Dana Petroleum (U.S.) also

commenced offshore crude petroleum drilling

projects.

Though subdued, the government continued with its

privatization process. In February 2002, the

government delayed plans to privatize Kenya Railways

Corporation for two years. Kenya also began licensing

Very Small Aperture Terminal operators, which

provide direct, low-cost communication links. Two

public firms, Telkom Kenya Ltd. and Gilat Aldean

Africa Ltd., and seven private firms, including African

Virtual University, Standard Chartered Bank, and

Reuters, were licensed as operators as of May

2002.

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Agriculture

S Agro-industry

S Petroleum and energy-related products

0

20

40

60

80

100

120

140

1996 1997 1998 1999 2000
211

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, M mn) 6,239 6,832 593.0

GDP (US$ mn) 899.0 807.6 -91.4

CPI Inflation (annual average; %) 6.1 6.9 0.8

Goods Exports (US$ mn) 211 250 39.0

Goods Imports (US$ mn) 727 720 -7.0

Trade Balance (US$ mn) -516 -470 46.0

Current Account Balance (US$ mn) -151 -140 11.0

Foreign Exchange Reserves

(US$ mn)

418 383 -35.0

Total External Debt (US$ mn) 700 715 15.0

Debt Service Ratio, paid (%) 9 9.2 0.2

Exchange Rate (M/US$) 6.9 8.4 1.6

Lesotho, completely surrounded by South Africa and

lacking substantial natural resources except water,

remains one of the poorest countries in the world. In

2001, agriculture employed 50 percent of the

population. A severe drought in 2001 limited

agricultural production and economic growth, and

necessitated food aid in early 2002. The fastest

growing sector of the economy in 2001 was

manufacturing, driven by exports to the United

States under the AGOA program. Migrant

remittances from South Africa also accounted for a

large share of GDP. Lesotho’s currency is pegged to

the South Africa’s rand, which maintains relatively

low inflation rates.

Throughout 2001, government economic policy

focused on the World Bank and IMF PRGF program

that began in March 2001. In March 2002, the IMF

completed a review of the PRGF program and made

available SDR7 million ($9.2 million). The government

provided an interim PRSP in 2001 and plans to

provide the final PRSP outlining complete

Origins of GDP (1999) implementation of poverty reduction programs.

Economic Profile

Real GDP Growth Rate

LESOTHO

Agriculture

(19%)

Industry

(40%)

Services

(41%)

-6

-4

-2

0

2

4

6

8

10

1997 1998 1999 2000 2001

Percent
212

Main Trade Partners, percent of total, 1999

Markets Sources

Southern

African

Customs Union

53.9% Southern African

Customs Union

89.5%

North America 45.6% Asia 7.0%

EU 0.2% North America 0.9%

Main Trade Commodities, US$ million, 1999

Exports Imports

Manufactures 108 Capital Goods 368

Machinery &

transport

equipment

16 Food 328

Beverages &

tobacco

14 Fuel & energy 216

Food &

livestock

5

-240

-180

-120

-60

0

60

120

180

240

300

360

lesotho

Trade Profile

Exports increased dramatically in 2001, primarily

because of increased investment in the manufacturing

sector, especially textile production. The garment

sector is rapidly increasing and creating approximately

1,000 jobs per month as a result of AGOA. With

duty-free access to U.S. markets, sector employment

doubled and exports increased by 30 percent. In early

2002, the Central Bank of Lesotho developed a plan to

provide exporters with financial support to further

diversify the export base. Tourism has also increased.

Lack of infrastructure and facilities, however, were

barriers to tourism sector expansion. As part of the

Lesotho Highland Water Development Project, Lesotho

exports water to South Africa.

In 2001, U.S. exports to Lesotho consisted primarily

of aircraft and parts, and machinery and mechanical

appliances; and U.S. imports from Lesotho consisted

primarily of apparel and clothing. In addition, Lesotho

has been designated a beneficiary country under

AGOA, including the apparel provision. AGOA (including

GSP) imports from Lesotho totaled $129.6 million in

2001.

Investment and Privatization Profile

Lesotho’s investment facilitators include a

well-developed infrastructure, relatively low-cost labor,

investor-friendly government, and strong anticorruption

policies. In addition, close ties with the South African

economy, such as linked monetary policies, integrated

infrastructure, and liberal labor mobility, make Lesotho

an attractive investment destination. Factors inhibiting

investment include a reportedly high HIV/AIDS rate, a

small domestic market, and potential political

instability. Political uncertainty in Madagascar

encouraged the relocation of textile firms to Lesotho.

Lesotho has, consequently, become the largest African

supplier of garments to the United States in 2001.

Taiwan investors have announced approximately $100

million of investment targeting the textile industry.

Other FDI prospects are assembly and manufacture of

light electronics. The Afriski Resort, which will be

equipped with a high-altitude Olympic training facility,

obtained $10 million in investments. The Lesotho

Highlands Water Project also attracted a large amount

of investment from European, South African, Hong

Kong, Taiwan, Singapore, and U.S. firms. Two

Canadian firms, Messina Diamond and Diamond

Works, purchased diamond exploration options.

The government’s privatization efforts continued in

2001 and 2002. KPMG was hired to provide sale and

advisory services in preparation for the Lesotho

Electricity Corporation’s privatization. Public resistance

inhibited the privatization of parastatals in the

agricultural sector. Although privatization in the

agricultural sector began in 1977, less than 30

percent of the 31 companies slated for privatization

have been sold.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

140

180

220

260

300

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Textiles, apparel, and footwear

S Light manufacturing

S Minerals and mining (diamonds)
213

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, L$ mn) 41,328 46,128 4,800.0

GDP (US$ mn) 516.6 576.6 60.0

CPI Inflation (annual average; %) 5.3 10.5 5.2

Goods Exports (US$ mn) 55 50 -5.0

Goods Imports (US$ mn) 170 175 5.0

Trade Balance (US$ mn) -115 -125 -10.0

Current Account Balance (US$ mn) -52.7 -55 -2.3

Foreign Exchange Reserves (US$ mn) 0.3 0.5 0.2

Total External Debt (US$ mn) 2,032 n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (L$/US$) 80 80 0.0

Liberia’s economy continued to struggle from social

unrest and political instability in 2001. Other factors

limiting economic development were the county’s

small market size, UN and U.S. sanctions, reported

corruption, inadequate tax–revenue collection, and

inadequate infrastructure system. The civil unrest

has reportedly contributed to an 80 percent

unemployment rate, with 76 percent of the

population living below the poverty line of less than

$1.00 per day. As many as 30,000 Liberians have

reportedly fled to neighboring Sierra Leone, Guinea,

and Côte d’Ivoire during the first half of 2002. Civil

unrest also limited agricultural production in many

areas. Diamond and gold production was

predominantly small scale. In June 2002, the

government announced a 50 percent reduction in

Liberia’s commercial vehicle tax to counter the

effects of increases in fuel prices. The government

also announced a tax credit for businesses that

contribute to the reconstruction of specified

counties. The Liberian Central Bank announced in

May 2002 that it would temporarily suspend

publishing rates because of persistent fluctuations in

the parallel market rate. In 2002, Liberia joined with

The Gambia, Nigeria, Ghana, Guinea, and Sierra

Leone to establish a common currency and central

bank under the new West African Secondary

Monetary Zone by January 2003.

In May 2002, the United Nations extended its

sanctions against Liberia for another year. UN

sanctions were initially imposed in response to

Liberia’s diamond-for-arms trade with Sierra Leone.

To preserve Liberia’s forests the government signed

several international conventions and instruments of

accession in January 2002: the Convention

concerning the Protection of World Culture and

National Heritage; the Convention on Wetlands of

International Importance, especially as Waterfowl

Habitat; the Stockholm Convention on Persistent

Organic Pollutants; and the Cartagena Protocol on

Bio-Safety of the Convention on Biological Diversity.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

LIBERIA

Agriculture

(61%)

Forestry

(14%)

Services

(18%)

Manufacturing

(5%)

Mining

(2%)

0

20

40

60

80

100

120

1997 1998 1999 2000 2001

Percent
214

Main Trade Partners, percent of total, 2000

Markets Sources

Germany 25.6% France 29.3%

Belgium 19.4% South Korea 21.6%

Norway 8.6% Japan 14.8%

Italy 7.5% Singapore 8.8%

Main Trade Commodities, US$ million, 1999

Exports Imports

Rubber 31.7 Foodstuffs 53.4

Timber 21.8 Machinery 36.3

Cocoa 1.1 Fuels &

lubricants

20.7

Coffee 1.0 Manufactured goods17.1

-10

0

10

20

30

40

50

60

1997 1998 1999 2000 2001

liberia

Trade Profile

Liberia’s historically dominant export products remain

curtailed in 2001 by social unrest and the

international response to that unrest. Rubber was

Liberia’s chief cash crop. Timber and rubber

production continued, though below potential

production levels. Diamond mining remained subject

to international sanctions over the smuggling of

conflict diamonds from Sierra Leone. The United

States maintained its ban on imported rough

diamonds from Liberia in 2002. Another source of

foreign exchange was the use of the Liberian flag of

convenience by shipping vessels. After Panama,

Liberia is the world’s second largest, by tonnage, flag

of convenience issuer. In late 2001, however, the

United Nations imposed sanctions on the country’s

maritime industry alleging that flag-of-convenience

revenue had been used to fund weapons purchases.

Liberia’s import bill was dominated by food, transport

equipment, and machinery.

In 2001, U.S. exports to Liberia consisted primarily

of iron or steel, and cereals; and U.S. imports from

Liberia consisted primarily of rubber. Liberia is not

designated an AGOA-beneficiary country.

Investment and Privatization Profile

Investment was inhibited primarily by reported

corruption and persistent economic and political

instability. Other factors inhibiting nonmining

investment include inadequate infrastructure, limited

energy generation and distribution, and a small

domestic market. Investment activities in 2001 and

early 2002 targeted primarily the minerals and

mining sector. An Abu Dhabi-based

telecommunications company, Thuraya, announced

its intentions to provide telecommunications services

in Liberia. Mano River Resources (Canada) signed

two mineral development agreements with

government. The agreement covers the mineral

projects in the Bea Mountains and the Kpo Range.

Mano River Resources also signed an agreement

with Trans Hex Group (South Africa) to establish a

diamond exploration and development joint venture.

Unexplore (U.S.) visited Liberia in 2002 to explore

the possibility of establishing a $700 million iron ore

project which would include constructing and

rehabilitating rail lines linked to iron deposits in

Guinea. The government announced places to hold a

petroleum licensing round in late 2002, and updated

its petroleum legislation in anticipation of new

investment. The government did not have substantial

privatization events, and contrary to its rhetoric

supporting a free market economy, the government

has granted monopolies to firms in the rice, gasoline,

and cement sectors.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Key Investment and Privatization Sectors

S Minerals and mining (diamonds)

S Infrastructure development

S Agriculture (rubber, timber)
215

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Mgfr bn) 26,882 30,917 4,035.0

GDP (US$ bn) 4.0 4.7 0.7

CPI Inflation (annual average; %) 11.8 8.5 -3.3

Goods Exports (US$ mn) 824 740 -84.0

Goods Imports (US$ mn) 997 1,105 108.0

Trade Balance (US$ mn) -173 -365 -192.0

Current Account Balance (US$ mn) 283 240 -43.0

Foreign Exchange Reserves

(US$ mn)

285 360 75.0

Total External Debt (US$ mn) 4,460 4,500 40.0

Debt Service Ratio, paid (%) 11 6.3 -4.7

Exchange Rate (Mgfr/US$) 6,767 6,588 -179.0

Madagascar achieved relatively high growth in 2001.

Madagascar is a predominantly agrarian economy.

Agriculture employed 80 percent of the workforce

and generated one-third of GDP in 2001. In

2001-2002, although the rice trade was liberalized,

agriculture sector expansion was hampered by locust

infestation, periodic cyclone damage, inadequate

transportation, limited irrigation and water networks,

and price controls. Only 1.5 percent of

Madagascar’s small farmers had access to credit

and only 5 percent of total lending went to

agriculture. Poverty is widespread in Madagascar,

particularly in rural areas. Madagascar’s relatively

low wages have attracted a substantial amount of

relatively labor-intensive activity from Mauritius,

where labor costs are higher. Madagascar has

extensively used its AGOA access; and from January

to June 2001, 22,000 jobs were created in the new

Export Processing Zone (EPZ). Textiles and apparel

were the main industrial product. Textile

manufactures employed 100,000 people and

accounted for 70 percent of the country’s total

exports in 2001. Madagascar’s seven major national

parks, and wildlife or forest reserves have tourism

potential. Government economic policy focused on

market liberalization, tightened fiscal policy,

increased investment in social services, and

grassroots economic development.

At the end of 2001, political turmoil erupted in a

highly contested presidential election. Both

candidates had separate central banks printing

money, fueling inflation and large deficits. A strike

began in January 2002. According to the World

Bank and IMF, the strike cost up to $14 million per

day. In the first five days of the strike, the total

savings from the HIPC initiative were lost. At least

100,000 jobs were lost or suspended, and several

textile companies left the country. During the strike,

stranded air passengers negatively affected the

travel and tourism sectors. Because of the political

uncertainty, foreign aid was not provided during the

late 2001 and early 2002 period. The IMF

maintained pressure on the government to pursue a

firm policy on revenue collection and tax policy. In

early 2001, Madagascar’s PRGF with the IMF was

extended until 2003.

Origins of GDP (1997)

Economic Profile

Real GDP Growth Rate

MADAGASCAR

Agriculture

(34%)

Industry

(12%)

Services

(45%)

Others

(9%)

0

1

2

3

4

5

6

7

1997 1998 1999 2000 2001

Percent
216

Main Trade Partners, percent of total, 2000

Markets Sources

France 40.9% France 38.0%

United States 21.1% Hong Kong 10.1%

Germany 7.4% China 5.4%

Japan 3.6% Singapore 5.1%

Main Trade Commodities, US$ million, 1998

Exports Imports

Coffee 40 Capital goods 150

Cotton cloth 35 Raw

materials

144

Vanilla 17 Consumer

goods

122

Prawns 17 Fuel products 49

-300

-240

-180

-120

-60

0

60

120

180

240

300

1997 1998 1999 2000 2001

-300

-240

-180

-120

-60

0

60

120

180

240

300

1997 1998 1999 2000 2001

madagascar

Trade Profile

The country has a relatively diversified export base that

includes agriculture products, light industry, and prawns.

Traditional exports, coffee, vanilla, cloves, and pepper

have declined in export shares but remained crucial

foreign exchange earners. The major portion of export

revenue was generated in export processing zones. In

2001 and 2002, five new sites were reviewed as

potential EPZs. Prawns were the second largest export

earner, and seafood exports have become an

increasingly important source of foreign currency. Beef

also is a significant export earner, although the sector’s

performance has been erratic. The government has

expressed interest in joining the Southern African

Development Community.

In 2001, Madagascar extensively used the AGOA

program, and exports increased rapidly. In the first half

of 2001, investment was three times the total

investment of 2000. Political instability, however,

resulted in many companies exiting the country. France

was Madagascar’s predominant trading partner and an

important source of aid. In 2001, U.S. exports to

Madagascar consisted primarily of machinery and

mechanical appliances, and aircraft and parts. In 2001,

U.S. imports from Madagascar consisted primarily of

apparel and clothing. In addition, Madagascar has been

designated a beneficiary country under AGOA, including

the apparel provision. AGOA (including GSP) imports

from Madagascar totaled $97.1 million in 2001.

Investment and Privatization Profile

Inadequate transportation networks, crime, and reported

corruption deterred economic development and

investment outside the capital. The government however,

has reduced the time for investment approval and has

approved EPZs on privately owned land. EPZs generally

attracted spill-over investment from Mauritius, especially

in the relatively labor-intensive textiles sector. Last year

exports of textiles and garments to the United States

encouraged local and foreign businesses to triple

industrial investment. Although there is significant

potential for mineral exploitation, the deposits are in

isolated and scattered areas. Madagascar reportedly

could more than double its gold output and has

possibilities for increasing production of chrome ore,

quartz, gemstones, graphite, mica, marble, bauxite, and

iron, if it had improved infrastructure networks.

The government continued its plan to privatize more than

40 state-owned enterprises. Preparations were made

for the sale of cotton and sugar parastatals. The fuel

monopoly, Solitany Madagascar, was sold to several

companies including: TotalFinaElf (France); Jovenna

(South Africa); and Galana (Kenya). In late 2001, the

government was trying to complete the arrangements

for the restructure and sale of Solima, the state

petroleum refinery. The sale of the telecommunications

company, Telma, was deterred by high cost. The

privatization of Telecom Malagasy and Air Madagascar

were set back because of the political turmoil.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports U.S. imports Trade balance

U.S. exports

Net Foreign Direct Investment

0

20

40

60

80

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Textiles and apparel

S Light manufacturing
217

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, MK bn) 97.2 126.9 29.7

GDP (US$ bn) 1.6 1.8 0.2

CPI Inflation (annual average; %) 29.6 27.2 -2.4

Goods Exports (US$ mn) 424.5 415.7 -8.8

Goods Imports (US$ mn) 435.3 473.6 38.3

Trade Balance (US$ mn) -10.8 -57.9 -47.1

Current Account Balance (US$ mn) -147.7 -192.6 -44.9

Foreign Exchange Reserves (US$

mn)

246.9 206.7 -40.2

Total External Debt (US$ bn) 2.8 2.8 0.0

Debt Service Ratio, paid (%) 21.9 12.9 -9.0

Exchange Rate (MK/US$) 59.5 72.2 12.6

As one of the least-developed nations in the world,

Malawi continues to experience variable growth

rates. Agriculture is the mainstay of the economy,

and accounted for 86 percent of jobs, 37 percent of

GDP, and 85 percent of export revenues in 2001.

The March 2001 torrential floods resulted in

significant economic loss and food shortages. Large

parts of the already inadequate infrastructure was

damaged. Rural development programs have

encouraged many subsistence farmers to produce

cash crops, and the main crops were tobacco, tea,

and sugar. Fishing and forestry industries have been

growing rapidly.

The economy, however, remained reliant on aid from

the IMF, World Bank, and donor nations. Economic

development continued to be hampered by

inadequate transport systems, power shortages,

inadequate telecommunications network, adverse

weather conditions, and a reportedly growing

HIV/AIDs epidemic. Economic policy broadly followed

IMF-supported policy goals, including fiscal discipline,

increased macroeconomic stability, decreased

inflation, and deficit reduction. Donors have

expressed concerns regarding reported corruption,

rigid bureaucracy, and an overstaffed government

sector. The president’s effort to change the

constitution to allow himself to stand for a third term

in office in 2004 also was criticized.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

MALAWI

Agriculture

(51%)

Industry

(23%)

Services

(26%)

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
218

Main Trade Partners, percent of total, 2000

Markets Sources

South Africa 20.3% South Africa 42.5%

United States 12.8% Zimbabwe 15.1%

Japan 11.0% Zambia 10.3%

Germany 7.0% India 3.0%

Main Trade Commodities, US$ million, 2000

Exports Imports

Tobacco 224 Intermediate

goods

287

Sugar 42 Capital goods 83

Tea 37 Consumer

goods

65

Pulses 7

-80

-60

-40

-20

0

20

40

60

80

100

1997 1998 1999 2000 2001

malawi

Trade Profile

The overall trade environment is favorable. Tariff levels

continued to be lowered in 2001, and nontariff

barriers to trade are being removed. A sizeable trade

deficit persisted, driven in part by a growing market

for computers, peripherals, software, and vehicles

and parts. Trade continued to be hampered by

distribution difficulties, especially during the rainy

season. In 2001, tobacco represented more than 60

percent of all exports, though attempts continue to

diversify away from and reduce dependence on the

crop. The government increased its focus on

developing the mining sector, which has potential for

large-scale mining of bauxite, asbestos, graphite, and

uranium.

In 2001, U.S. exports to Malawi consisted primarily of

machinery and equipment; and U.S. imports from

Malawi consisted primarily of tobacco. In addition,

Malawi has been designated a beneficiary country

under AGOA, including the apparel provision. AGOA

(including GSP) imports from Malawi totaled $35.4

million in 2001.

Investment and Privatization Profile

Foreign direct investment and expertise are flowing

into the country (relative to past years) as a result of

fewer government controls and the government’s

privatization program. In 2001 and 2002, the

government aggressively sought foreign investors via

promotional programs abroad. Investment incentives

include duty-free importation of raw materials for

manufacturing industries, quota privileges for textiles

and sugar in the EU and United States, and export

advantages to neighbors Zambia and Tanzania.

Several export processing zones offer tariff free

access to South Africa. Reported increases in

corruption were a growing concern for both

international financial donors and investors. For

example, in early 2002, several Western funders,

who accounted for much of Malawi’s budget,

announced they were suspending aid amid concerns

over government corruption and overspending.

As of October 2001, the government had privatized

45 of the 100 parastatals earmarked for sale. The

government suspended plans to privatize MTL

(telecommunications) in July 2001, but later resumed

plans, and the company is now slated for privatization

in 2002. Econet Wireless (Zimbabwe) and Telecoms

Consultant India were the two firms interested in the

available 30 percent share.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

24

26

28

30

32

34

36

38

40

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Minerals and mining

S Textiles and apparel

S Agriculture (tobacco)
219

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 1,811 1,896 85.0

GDP (US$ bn) 2.5 2.6 0.1

CPI Inflation (annual average; %) -0.7 5.2 5.9

Goods Exports (US$ mn) 531 661 130.0

Goods Imports (US$ mn) 592 620 28.0

Trade Balance (US$ mn) -61 41 102.0

Current Account Balance (US$ mn) -241 -276 -35.0

Foreign Exchange Reserves

(US$ mn)

381 291.7 -89.3

Total External Debt (US$ bn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CFAfr/US$) 712 733 21.0

Mali is one of the world’s least developed economies,

and economic development in 2001 was limited by a

small market size, limited export base, and few

energy supplies beyond traditional sources like wood

and charcoal. Nearly 80 percent of the population

derived its livelihood from agriculture and livestock

husbandry. Agriculture accounted for 50 percent of

GNP with cotton as the principal cash crop. Although

cotton production surged in 2002, Mali remains

vulnerable to depressed international prices. Until

2000, cotton dominated Mali’s exports, but Mali has

since become one of the world’s fastest growing gold

producers, and in 2002, Mali became Africa’s third

largest gold exporter, after South Africa and Ghana.

In 2001 and 2002, mining conglomerates such as

Imagold, Anglogold (S. Africa), Randgold Resources

(S. Africa), and IAMGold (Canada) announced plans

to expand production. The country also has

significant deposits of bauxite, manganese, zinc,

copper, and aluminum. Manufacturing was minimal,

accounting for only 2 percent of GDP in 2001.

Mali continued to reduce macroeconomic imbalances

and liberalize its economy. Government policy

focused on efforts to achieve transparency in

government operations, poverty reduction, budgetary

management and tax collection improvement, and

reduced corruption. Mali, nevertheless, remained

heavily dependent on international donor support and

foreign aid. In December 2001, the World Bank

authorized Mali’s third structural adjustment credit

valued at $70 million to meet Mali’s balance of

payments and support the country’s structural

reforms. In January 2002, Mali signed agreements

with the IMF and World Bank adopting the PRSP.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

MALI

Agriculture

(47%)

Other industry

(14%) Manufacturing

(6%)

Services

(33%)

0

1

2

3

4

5

6

7

8

1997 1998 1999 2000 2001

Percent
220

Main Trade Partners, percent of total, 2000

Markets Sources

Brazil 11.0% Côte d’Ivoire 21%

Korea 10.0% France 12%

Italy 7.0% Senegal 4%

Canada 7.0% Germany 4%

Main Trade Commodities, US$ million, 2000

Exports Imports

Gold 266 Petroleum

products

98

Cotton 153

Livestock &

products

42

0

5

10

15

20

25

30

35

1997 1998 1999 2000 2001

mali

Trade Profile

Mali’s main exports, cotton and gold, have

experienced declining international prices in recent

years negatively impacting its trade balance. Although

formal trade remains limited, informal regional trade,

though difficult to quantify, is believed to be

substantial. Services exports were stifled by the

continued emigration of Malian entrepreneurs and

various skilled Malians.

In 2001, U.S. exports to Mali consisted primarily of

vehicles and parts; and U.S. imports from Mali

consisted primarily of miscellaneous equipment. In

addition, Mali has been designated a beneficiary

country under AGOA. AGOA (including GSP) imports

from Mali totaled $293,000 in 2001.

Investment and Privatization Profile

Investment continued to be hampered by limited

energy provision, a small domestic market, reported

corruption, and inadequate infrastructure. Nevsun

Resources (Canada) signed two agreements to

purchase gold properties near its Tabakoto mine is

Mali’s Kenieba district. The government awarded a

telecommunications service license to

France-Télécom, and sold 60 percent of EDM, the

state-owned electricity and water company, to Saur

International of France. In September 2001, the

government launched a tender to license a private

telecommunications operator offering both fixed and

cellular services to compete with parastatal Solelam.

The IMF expressed approval of Mali’s December

2001 plans to privatize CMDT, the cotton production

parastatal though trade unions and producers have

expressed concerns. Mali announced in February

2002 that it had received several bids for its

state-owned railroad. The bidders included Canarail

(Canada), Comazar (South Africa), and Transurb

(Belgium). Completed privatization is expected by April

2003. As of mid-2001, however, approximately 90

percent of all production was state controlled.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (gold)

S Telecommunications services

S Agriculture (cotton, cereal)

-50

-25

0

25

50

75

100

1996 1997 1998 1999 2000
221

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, UM bn) 205.1 223.9 18.8

GDP (US$ mn) 858.5 932.9 74.4

CPI Inflation (annual average; %) 3.3 4 0.7

Goods Exports (US$ mn) 350 360 10.0

Goods Imports (US$ mn) 320 335 15.0

Trade Balance (US$ mn) 30 25 -5.0

Current Account Balance (US$ mn) n/a n/a n/a

Foreign Exchange Reserves

(US$ mn)

284 345 61.0

Total External Debt (US$ bn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (UM/US$) 238.9 240 1.1

Mauritania’s economic development was restricted

by a small market size, limited rainfall, declining

international commodity prices, and limited export

base in 2001. Mauritania derived a significant

percentage of its foreign exchange earnings from

fishing and fishing licenses. A concern, however, has

been the sustainability of current fishing levels as

reserves continued to decline. Mauritania’s economic

policy in 2001 focused on those endorsed by the IMF

and World Bank, which includes tight monetary

policy, achieving balanced budgets, privatization of

parastatals, inflation control, and economic

diversification. In January 2002, Mauritania enacted

a new nonnegotiable mining law that covers the

economic, customs, fiscal, and foreign-exchange

conditions under which new mining investments can

be made. The law exempts foreign investors from

import duties on equipment and goods imported for

export-oriented projects, guarantees transfer of

convertible currencies associated with new

investments, provides for national or international

dispute arbitration, and establishes a “one-stop-shop”

to provide guidance and mediation with Mauritania’s

ministries. The government also provided free-trade

zone status to new companies manufacturing

finished goods for export.

International donor institutions granted Mauritania

$142 million over the next 3 years to finance various

government antipoverty initiatives, and in 2002

Mauritania became the sixth developing country to

attain the “completion point” under the IMF and

World Bank HIPC initiative. The IMF and the World

Bank also canceled $1.1 billion of Mauritania’s $2.2

billion debt.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

MAURITANIA

Primary

(25%)

Secondary

(27%)

Tertiary

(48%)

0

1

2

3

4

5

6

1997 1998 1999 2000 2001

Percent
222

Main Trade Partners, percent of total, 2000

Markets Sources

France 17.6% France 24.5%

Japan 16.1% Algeria 10.8%

Italy 13.1% Belgium 8.4%

Spain 10.5% Spain 5.7%

Main Trade Commodities, US$ million, 1999

Exports Imports

Iron ore 129.6 Public sector 15.1

Fish & fish

products

113.2 Private sector 139.1

0

5

10

15

20

25

30

35

1997 1998 1999 2000 2001

mauritania

Trade Profile

Mauritania continued to diversify its export base and

currently exports to the EU high-value vegetables and

fruit (green beans, peppers, watermelon, and okra)

grown in irrigated fields. Mauritania’s export base,

nevertheless, was dominated by fish, including fish

products, and iron ore. Iron ore exports, Mauritania’s

leading source of foreign exchange, declined during

2001 because of declining world prices.

In 2001, U.S. exports to Mauritania consisted

primarily of machinery and mechanical appliances;

and U.S. imports from Mauritania consisted primarily

of electrical machinery and equipment. In addition,

Mauritania has been designated a beneficiary country

under AGOA.

Investment and Privatization Profile

Investment into Mauritania was primarily in the

agro-industry and extractive sectors. A new flour mill,

Grands moulins de Mauritanie, was set up in

November 2001. The $7.8 million mill represented

the largest single agro-industrial venture in

Mauritania. It is a joint venture between Ballouhey

(France) and the Mohamed Abdallahi Ould Abdallahi

group (Mauritania). Societe nationale industrielle et

miniere (SNIM) entered into a joint venture with

Sphere Investments (Australia) to develop the Guelb

el Aouj iron ore deposit. In January 2002, the

government granted the International Petroleum

Group (IPG) permission to explore for crude

petroleum in the country’s coastal basin. In 2001,

Spain agreed to finance the construction of a new

petroleum tanker terminal at the port of Nouakchott.

Nonextractive investment detractors include sparse

infrastructure network, a small domestic market, and

environmental vagaries.

During 2001, Mauritania sold its national airline and

telecommunications company. It also granted licenses

to two private cellular phone companies, U.S.-based

Harris Communications and Nortel of Canada. The

IMF and World Bank also requested Mauritania

privatize its state-owned water and electricity

company. Five private sector investors have

prequalified to bid on Somelec and completion is

planned by the end of 2002.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

-3

-2

-1

0

1

2

3

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (iron ore)

S Petroleum and energy-related products

S Infrastructure development
223

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, MRs bn) 118.5 132.5 14.0

GDP (US$ bn) 4.5 4.5 0.0

CPI Inflation (annual average; %) 4.2 5.4 1.2

Goods Exports (US$ mn) 1,559.4 1,551.4 -8.0

Goods Imports (US$ mn) 1,953.3 1,976.8 23.5

Trade Balance (US$ mn) -393.9 -425.4 -31.5

Current Account Balance (US$ mn) -33.2 -31.4 1.8

Foreign Exchange Reserves (US$

mn)

897.4 848 -49.4

Total External Debt (US$ bn) 2.8 2.9 0.1

Debt Service Ratio, paid (%) 9.5 8.7 -0.8

Exchange Rate (MRs/US$) 26.3 29.1 2.8

For the past two decades, Mauritius’ GDP growth

has averaged nearly 6 percent. This level of growth

has been driven by growth in exports, which

contributed two-thirds of total output. The

government forecast a lower growth rate for 2002,

because of damage to the sugar crop, low textile

production, and damaged tourism infrastructures

resulting from a cyclone in January 2002. The

government’s Economic Agenda for the New

Millennium (NEA) set forth three major priorities:

social (education, social assistance, health care)

development; environmental protection; and

increasing global competitiveness. An important

focus of government policy was developing the

informational technology sector with the goal of

becoming a “Cyber Island.” In recent years, textiles,

tourism, and financial services have emerged as the

predominant sectors, although sugar remains an

important sector. High budget deficits and the

depreciation of the rupee have contributed to

increasing inflation.

The ADB approved a $7.4 loan for health care in

December 2001 and a $5 million loan for a

sewerage project in February 2002. In May 2002,

the World Bank approved a $40 million Public

Expenditure Reform Loan (PERL) to support the

country’s NEA with additional PERLs to be made

available over the next 2 years. In addition, the World

Bank is funding three projects totaling $19 million for

financial services and infrastructure development.

The Development Bank of Southern Africa also

granted a $15.8 million, 10-year loan to the

Development Bank of Mauritius for infrastructure

projects.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

MAURITIUS

Agriculture(6%)

Transport & communications

(12%)

Manufacturing

(33%)

Wholesale & retail trade

(13%)

Restaurants & hotels

(5%)

Other (2%)

Government services

(13%)

Financial services

(16%)

0

2

4

6

8

10

1997 1998 1999 2000 2001

Percent
224

Main Trade Partners, percent of total, 2000

Markets Sources

UK 25.8% France 20.0%

France 20.8% South Africa 19.0%

United States 16.0% India 9.0%

South Africa 10.9% Hong Kong 5.2%

Main Trade Commodities, US$ million, 2000

Exports Imports

EPZ products:

textiles and

apparel

1,029 Manufactured

goods

839

Sugar 335 Machinery &

transport

goods

911

Food &

beverages

278

20

60

100

140

1996 1997 1998 1999 2000

-350

-280

-210

-140

-70

0

70

140

210

280

350

1997 1998 1999 2000 2001

mauritius

Trade Profile

Total exports increased from 2000 to 2001 with

sugar, and textiles and clothing representing the

major exports. Sugar exports have declined,

however, as a result of the government’s 5-year

Sugar Sector Strategic Plan (2001-2005), which

called for a reduction in the number of sugar mills

and workers. Exports from the export processing

zone, particularly textiles and clothing, increased in

2001 as Mauritius became eligible for the AGOA

program. The government also continued efforts to

diversify production away from textiles to other

manufactured products. Significant reductions in

tariffs were implemented in 2000 and 2001. The

government, however, regulates imports of certain

products, including petroleum products, cement,

rice, flour, potatoes, onions, and some spices.

In 2001, U.S. exports to Mauritius consisted

primarily of machinery and mechanical appliances;

and U.S. imports from Mauritius consisted primarily

of apparel and clothing. In addition, Mauritius has

been designated a beneficiary country under AGOA,

including the apparel provision. AGOA (including GSP)

imports from Mauritius totaled $54 million in 2001.

Investment and Privatization Profile

The government continued to encourage foreign

investment. Companies operating in the EPZs or the

Mauritius Freeport, and offshore businesses

benefitted from tax advantages (15 percent

corporate tax instead of 35 percent), duty-free or

reduced tariffs on inputs, and low-interest loans. In

addition, the Permanent Residence Scheme and

Regional Headquarters Scheme were introduced to

attract new investment. The Board of Investment

also was established by the government in 2001 to

promote and facilitate investment. Top investment

sources were India, the United Kingdom, France,

Germany, and South Africa. Some of the leading

sectors for foreign investment were information

technology, printing and publishing, pharmaceuticals,

light engineering, high-quality garments, and jewelry.

The government’s privatization efforts continued as it

sought foreign investment partners for various

parastatals. The process also began for selecting

partners for the Cargo Handling Corporation, Central

Water Authority, and the Central Electricity Board,

and plans continue for the Postal Services and

National Transport Corporation. France Telecom

acquired 40 percent of Mauritius Telecom in

November 2000 with 40 percent of the remaining

interest held by the government and 20 percent by

the Bank of Mauritius. The government plans to open

the telecommunications sector to full competition by

the end of 2003. Internet services and radio and TV

broadcasting were also liberalized.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Textiles and apparel

S Light manufacturing (EPZs)

S Financial services
225

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, MT bn) 60,103 80,592 20,489.0

GDP (US$ bn) 3.8 3.9 0.1

CPI Inflation (annual average; %) 11.4 21.9 10.5

Goods Exports (US$ mn) 364 744 380.0

Goods Imports (US$ mn) 1,157 1,090 -67.0

Trade Balance (US$ mn) -793 -346 447.0

Current Account Balance (US$ mn) -1,006 -985 21.0

Foreign Exchange Reserves

(US$ mn)

725 683 -42.0

Total External Debt (US$ bn) 896 966 70.0

Debt Service Ratio, paid (%) 9.1 n/a n/a

Exchange Rate (MT/US$) 15,447 20,704 5,257.0

For several years, Mozambique has experienced

strong GDP growth and low inflation. It is one of

Africa’s fastest growing countries and averaged eight

percent annual GDP growth since 1992.

Mozambique’s growth was subdued by flooding in

2000, but has resumed strong growth partly

because of FDI. Agriculture products, such as cash

crops, cotton, copra, and sugar, contributed

significantly to GDP growth. Two factors expected to

contribute to future economic growth are the

expansion of the Mozal aluminum smelter and the

construction of a gas export pipeline to South Africa.

The completion of a 865 km-long pipeline project in

late 2001 is expected to increase Mozambique’s

GDP by as much as 20 percent. However, a

reportedly high AIDS/HIV rate has reduced life

expectancy in Mozambique. The epidemic is

negatively affecting labor supply, and could have a

profound effect on economic development. Whereas

inflation increased in 2001, primarily because of

currency weakness and monetary expansion, tighter

monetary policy reduced inflation by mid-2002.

In its October 2001 PRSP, the government stated its

main economic policy goals were to obtain

poverty-reducing growth, to continue macroeconomic

stability, and to increase social services. It also is

focusing on judicial and public-sector reform and the

effective management of state institutions. Since

1987, Mozambique has followed a structural

adjustment program set out by the IMF and has

received more than $8 billion in foreign aid. In late

2001, Mozambique’s main international partners

committed a total of $722 million for aid in 2002. In

early 2002, the European Commission planned a

3-year food assistance program worth 25.2 million

euros to alleviate poverty levels. Mozambique

borrowed $11 million from the PRGF, bringing the

total to $80 million. The PRGF load capacity set in

2000 is $113 million. Under the HIPC initiative,

OPEC’s International Development Fund cancelled

$7.7 million of Mozambique’s debt. Switzerland has

granted $25 million for the 2002-2005 bilateral

cooperation program.

Origins of GDP (1998)

Economic Profile

Real GDP Growth Rate

MOZAMBIQUE

Others (2%)

Trade & services

(47%)

Manufacturing & mining

(10%)

Construction (8%)

Agriculture, fishing

& forestry (31%)

Electricity & water (2%)

0

2

4

6

8

10

12

14

1997 1998 1999 2000 2001

Percent

0

2

4

6

8

10

12

14

1997 1998 1999 2000 2001

Percent
226

Main Trade Partners, percent of total, 2000

Markets Sources

Zimbabwe 17.9% South Africa 36.7%

South Africa 14.6% Portugal 7.9%

Portugal 11.5% Japan 4.4%

Spain 10.7% United States 3.1%

Main Trade Commodities, US$ million

Exports (1998) Imports (1997)

Prawns

72.6

Machinery &

equipment

139

Cashew nuts 40.7 Vehicles &

transport

113.8

Cotton 22.3 Fuel 92.3

Timber 11.0 Textiles 43.4

0

10

20

30

40

50

60

70

1997 1998 1999 2000 2001

mozambique

Trade Profile

Exports were once dominated by seafood and

agriculture, but the government has encouraged

diversification. Electricity exports rose as a result of

the increased tariff rates paid by the South African

electricity company. For the first time, Mozambique

recorded a trade surplus with the EU, driven by an

increase in aluminum exports which accounted for

almost 80 percent of total exports to the EU. Sasol

continued construction on the joint venture pipeline

project with the governments of Mozambique and

South Africa. The gas pipeline will transport natural

gas from Mozambique to South Africa to be

converted into synthetic fuel. In mid-2002 plans were

developed for South Africa’s state-owned Industrial

Development Corporation to facilitate the $2.2 billion

railway rehabilitation program for the railway between

the Moatize coal deposits and the port of Beira. In

2001, Mozambique overtook Zimbabwe as South

Africa’s largest regional trade partner.

In 2001, U.S. exports to Mozambique consisted

primarily of cereals and milling industry products; and

U.S. imports from Mozambique consisted primarily of

sugar. In addition, Mozambique has been designated

a beneficiary country under AGOA, including the

apparel provision. AGOA (including GSP) imports from

Mozambique totaled $5.3 million in 2001.

Investment and Privatization Profile

As part of its IMF program, the government is

reforming its investment regime. In late March 2002,

it passed a new mining bill aimed at increasing

transparency and incorporating environmental best

practices. The $1.5 billion Mozambique Aluminum

Smelter was financed by a four-nation consortium

and, in its first year of operation in 2001, accounted

for 4 percent of GDP. The aluminum smelter was also

the main driver of foreign direct investment inflows,

and, as of mid-2002, a $800 million expansion was

undertaken to double capacity. The project was the

first investment of its scale in the country in the past

50 years. The aluminum smelter has considerably

changed Mozambique’s export structure. Whereas

aluminum was not a significant export in 2000, it

contributed strongly to export growth in 2001.

Petronas (Malaysia) signed a petroleum exploration

deal and agreed to a joint venture with a Mozambican

firm. The Development Bank of Southern Africa

granted a $12 million loan to rehabilitate the

Marromeu, the largest sugar mill in Mozambique.

Over 900 parastastals, ranging from a cement plant

to flour mills to trading companies, have been sold. In

late 2001, Amalgamated Bank of South Africa, one of

South Africa’s largest banks, bought an 80 percent

stake in one of Mozambique’s largest commercial

banks for $10 million. It was reportedly the largest

arrangement ever in the financial sector in

Mozambique.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Minerals and mining (aluminum smelting)

S Parastatal divestiture

50

100

150

200

250

300

350

400

1996 1997 1998 1999 2000
227

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, N$ bn) 23.8 25.8 2.0

GDP (US$ bn) 3.4 3 -0.4

CPI Inflation (annual average; %) 9.2 9.3 0.1

Goods Exports (US$ mn) 1,461 1,213 -248.0

Goods Imports (US$ mn) 1,449 1,386 -63.0

Trade Balance (US$ mn) 12 -173 -185.0

Current Account Balance (US$ mn) 358 98 -260.0

Foreign Exchange Reserves

(US$ mn)

260 234 -26.0

Total External Debt (US$ bn) 313 390 77.0

Debt Service Ratio, paid (%) 2.8 4.1 1.3

Exchange Rate (N$/US$) 6.9 8.6 1.7

Namibia’s overall economic performance was heavily

dependent on mining and mineral processing in

2001. Its economy continues to be divided into two

systems. One system is modern and market based,

and incorporates a rules-based trading system,

whereas the other system is a traditional

subsistence-based agricultural economy. Although

mining determined economic performance, its

importance continued to decline relative to tourism

and fishing. Namibia continued to diversify its

economy beyond ranching, mining and fishing, all of

which are susceptible to international commodity

market price fluctuations.

Namibia’s economic policy concentrated on

maintaining economic growth, diversifying the

economy, reducing poverty and unemployment,

raising rural incomes, and fighting HIV/AIDS.

Economic growth has benefitted from the new

Ramatex textile and garment factory in Windhoek,

growing construction activities related to the

Skorpion mine, industrial development, and tourism

Origins of GDP (2000) facilities in Walvis Bay and Luderitz.

Economic Profile

Real GDP Growth Rate

NAMIBIA

Mining & quarrying

(15%)

Financial services, real

estate & business service

(14%)

Others

(14%)

Manufacturing including fish

processing (12%)

Government

(23%)

Agriculture & fishing

(12%)

Wholesale & retail trade

(10%)

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
228

Main Trade Partners, percent of total

Markets (1998) Sources (1997)

UK 43% South Africa 81%

South Africa 26% US 4%

Spain 14% Germany 2%

France 8% Zimbabwe 1%

Main Trade Commodities, US$ million, 2000

Exports Imports

Diamonds 698 Transport

equipment

245

Prepared &

preserved fish

364 Refined

petroleum

products

172

Metals ores, incl.

uranium ore

160 Chemical

products

168

Meat, meat

preparations,

hides, skins

78 Food excl.

fish, meat, &

beverages

127

-80

-40

0

40

80

120

160

200

240

280

1997 1998 1999 2000 2001

namibia

Trade Profile

Diamonds, base metals, and white fish were

Namibia’s leading exports and main foreign exchange

earners. In 2001, Namibia was the world’s fourth

leading exporter of nonfuel minerals and the fifth

leading producer of uranium, although uranium output

has been declining. Abundant diamond deposits make

Namibia a primary source of gem-quality diamonds.

Namibia also produces large quantities of lead, zinc,

tin, silver, and tungsten. Exports of base metals are

expected to increase when the Skorpion zinc mine

begins production. A decline in imports of consumer

goods was caused by the depreciation of the

Namibian dollar.

In 2001, U.S. exports to Namibia consisted primarily

of vehicles and parts; and U.S. imports from Namibia

consisted primarily of copper, and fish and ocean

products. In addition, Namibia has been designated a

beneficiary country under AGOA, including the apparel

provision. AGOA (including GSP) imports from Namibia

totaled $93,000 in 2001.

Investment and Privatization Profile

In 2001 and 2002, investment in Namibia included a

joint venture between ZincOX Resources (U.S.) and

Ongopolo Mining and Processing (OMP) to evaluate

and exploit slag deposited at OMP’s Tsumeb zinc

mine; Leviev Group’s (Israel) acquisition of Namibian

Minerals Corp., the marine diamond producer, in

exchange for providing additional financing to the

company; Rusina’s (Australia) plans to purchase two

Namibian tantalum projects, Crater Mining Ltd. and

Reefton Mining; and Mars Investment Holding’s

(Russia) $2 million diamond-cutting mill in Namibia’s

free export zone.

Namibia has more than 20 state-owned enterprises.

In early 2002, the government approved a new policy

framework aimed at improving the performances and

accountability of state-owned enterprises. Parastatals

such as Namibia Power Corporation and Namibia

Telecom were profitable and considered to be

efficiently administered, and therefore unlikely to be

sold in the near future. According to Pyramid

Research, Namibia Telecom was acclaimed as one of

the continent’s best-run state-operated companies.

Namibia Telecom is expected, however, to lose its

monopoly status in 2002. Air Namibia is slated for

privatization during the second half of 2002, and SA

Airlink (South Africa) announced that it would acquire

a 40 percent stake in Air Namibia. The remainder will

be split between the government (20 percent),

Comav, a Namibian regional airline (15 percent),

National Union of Namibian workers (10 percent), and

Air Namibia employees (10 percent).

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

90

100

110

120

130

140

150

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (uranium, diamonds)

S Agriculture (animal husbandry, fishing)

S Petroleum and energy-related products
229

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 1,112 1,193 81.0

GDP (US$ bn) 1.6 1.6 0.0

CPI Inflation (annual average; %) 2.9 4 1.1

Goods Exports (US$ mn) 260 251 -9.0

Goods Imports (US$ mn) 289 324 35.0

Trade Balance (US$ mn) -29 -73 -44.0

Current Account Balance (US$ mn) -112 -138 -26.0

Foreign Exchange Reserves

(US$ mn)

80.3 65.9 -14.4

Total External Debt (US$ bn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CFAfr/US$) 712 733 21.0

Niger is the world’s second poorest country, and its

economy is dominated by subsistence agriculture,

re-export trade, and uranium exports. Factors that

influence economic performance are international

commodity prices, external loans and debt

reductions, donor assistance, and water levels. In

2001, Niger’s agricultural sector expanded

dramatically with millet, sorghum, and maize

harvests at record levels. Despite producing an

overall food surplus, shortages remain in some

regions of the country, especially Maraid and Dosso.

Niger has critical development needs, a small market

size, and limited infrastructure. For example, in April

2002, Zinder, Niger’s second largest city, reported a

serious water shortage. The government raised

water tariffs in April 2002 by 20 percent, and

announced plans to increase the price of water on

average by 10 percent in 2002, by 5 percent in

2004, and by 8.5 percent in 2005. Esso-Mobil also

reported that it would resume operations in Niger

moving the country toward becoming a petroleum

producer.

Niger remained committed to economic policies

designed to satisfy IMF and World Bank PRGF

guidelines. Economic reforms concentrated on

reducing poverty, easing domestic payments arrears,

improving public finances, and privatizing state-owned

enterprises. In March 2002, the EU provided Niger

with $337 million under the Ninth European

Development Fund targeting food security,

transportation projects, macroeconomic stability, and

good governance. In 2002, the World Bank’s

International Development Agency committed $38.8

million for Niger’s second phase of a private irrigation

promotion project.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

NIGER

Secondary

(15%)

Tertiary

(47%)

Primary

(38%)

-2

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

Percent
230

Main Trade Partners, percent of total, 2000

Markets Sources

France 43.4% France 16.8%

Nigeria 35.0% Côte d’Ivoire 13.4%

Spain 4.5% United States 9.6%

United States 3.9% Nigeria 7.6%

Main Trade Commodities, US$ million, 2000

Exports Imports

Uranium 90 Capital goods 65

Livestock 45 Petroleum

products

38

-20

-10

0

10

20

30

40

50

60

70

1997 1998 1999 2000 2001

Trade Profile

Uranium, Niger’s principal export commodity and

foreign exchange earner, experienced lower

international prices in 2002. Niger also has proven

reserves of gold, petroleum, and minerals; however,

infrastructure inadequacy limits extraction. Niger

continued diversification efforts by exploring its

petroleum and gold reserves. Niger’s sole textile

manufacturer has expressed interest in taking

advantage of the AGOA program to export textiles

and apparel to the United States. Despite its natural

resources, Niger relied on international donor

support, loans, and debt rescheduling to finance

imports.

In 2001, U.S. exports to Niger consisted primarily of

pharmaceutical products; and U.S. imports from

Niger consisted primarily of paper products, and

machinery and mechanical appliances. In addition,

Niger has been designated a beneficiary country

under AGOA. AGOA (including GSP) imports from

Niger totaled $42,000 in 2001.

Investment and Privatization Profile

Investment continued to be hampered by a small

domestic market, external debt, inadequate

infrastructure, and a lack of skilled labor. Morocco’s

Omnium Nord Africain announced plans to open a

gold mine in Niger during the second half of 2002. In

November 2001, Niger privatized Sonitel, its

state-owned telecommunications company by selling a

51 percent share to ZTE (China). It also privatized

Société Nigérienne des Eaux (SNE), the state-owned

water company, in April 2001. Vivendi of France

assumed a 51 percent stake in SNE, but newly

created parastatal Société de Patimoine des Eaux du

Niger retained government ownership of all water

resources. Vivendi took responsibility for distributing

water, primarily in Niamey, through its subsidiary

Société d’Exploitation des Eaux du Niger. The

government indicated that state-owned enterprises

Nigéléc (electricity) and Sonidep (petroleum

distribution) would be privatized by 2003.

niger

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

0

2

4

6

8

10

12

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Minerals and mining (gold)

S Services (telecommunications)

S Petroleum and energy-related products
231

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, N bn) 3,568.8 4,386 817.2

GDP (US$ bn) 35.1 38.9 3.8

CPI Inflation (annual average; %) 6.9 18.9 12.0

Goods Exports (US$ mn) 20,441 20,261 -180.0

Goods Imports (US$ mn) 12,372 13,749 1,377.0

Trade Balance (US$ mn) 8,069 6,512 -1,557.0

Current Account Balance

(US$ mn)

2,037 1,172 -865.0

Foreign Exchange Reserves

(US$ mn)

9,910 10,430 520.0

Total External Debt (US$ bn) 34.1 33.8 -0.3

Debt Service Ratio, paid (%) 4.4 6.4 2.0

Exchange Rate (N/US$) 101.7 112.9 11.2

Nigeria’s economy consists of a large petroleum

sector combined with a mostly traditional agricultural

economy. Petroleum products were the predominant

source of foreign exchange for Nigeria, and various

new crude petroleum and natural gas reserves have

been discovered in the last 2 years. The Nigerian

economy was helped by stronger world petroleum

prices in 2000 and the first half of 2001, but these

prices have declined since the second half of 2001.

Nigeria violated its OPEC quota in 2001, but is now

attempting to comply with it, which may restrain

Nigerian exports of petroleum products.

Approximately 70 percent of the population works in

agriculture, mostly on small farms. While rich in

potential resources for mining and agriculture,

Nigeria remains a poor country with inadequate

infrastructure such as rail, ports, and

communications networks. This infrastructure

weakness restrained Nigeria’s potentially strong

economic growth, as do frequent energy shortages

because of popular government subsidies and

technical difficulties at refineries. The newly elected

civilian government, however, has made modest

steps in improving water and electricity distribution

and telephone service. Although still nascent, the

government continues to develop an industrial export

sector.

Since 1999, the government has been pledging

economic reforms to reduce reported corruption, to

liberalize trade, and to increase privatization. With

elections expected in the first half of 2003, the pace

of many economic changes has slowed, and Nigeria

withdrew from informal IMF monitoring programs as

a result. In general, Nigerian reforms were viewed by

international donors as moving slowly, inhibited by

political realities and limited governance capacity.

Although the current government has stated a goal

of a floating exchange rate, high inflation rates have

devalued the naira, and the official exchange rate has

moved farther from the parallel market rate.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

NIGERIA

Finance & insurance

(9%)

Livestock

(5%)

Crude petroleum & gas

(10%)

Manufacturing

(6%)

Agriculture excluding

livestock (37%)

Wholesale & retail trade

(12%)

Others (21%)

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
232

Main Trade Partners, percent of total, 2000

Markets Sources

United States 40.1% United States 10.0%

Spain 8.4% UK 8.9%

India 6.5% France 8.4%

France 5.2% Germany 7.2%

Main Trade Commodities, US$ million, 2000

Exports Imports

Oil 18,897 Manufactured

goods

2,746

Non-oil 244 Machinery &

transport

2,282

Chemicals 2,149

Food & live

animals

1,117

-12000

-9000

-6000

-3000

0

3000

6000

9000

12000

1997 1998 1999 2000 2001

nigeria

Trade Profile

More than 95 percent of Nigeria’s exports are

petroleum and petroleum products and, Nigeria also

exports small amounts of cocoa and rubber. Nigeria

also produces peanuts, palm oil, maize, and rice, but

still required food imports in 2001. Nigeria imports

primarily machinery, chemicals, transportation

equipment, and food. Import tariffs were the

government’s second largest source of revenue after

petroleum. In an effort to end customs fraud, the

government began a policy of requiring inspection of

100 percent of imports. Critics have complained that

tariff inspections are expensive, inconsistently

enforced, and often illegally avoided. In 2001, tariffs

on some raw materials and capital equipment were

reduced in an effort to develop an industrial sector for

export. Tariffs have been raised, however, on some

agricultural and consumer goods. Nontariff barriers

include bans and quotas on cement and some

agricultural goods.

The government has tried to promote the development

of an industrial export sector. For example, in

December 2001, it announced a 7-year tax holiday for

some exporters. Outside the petroleum sectors,

however, the government’s efforts have not had much

success to date. The Nigerian Export Processing Zone

Authority (NEPZA) has plans for five export processing

zones, but only two (Calabar and Bonny Island) were

operational in 2001. NEPZA has approved a mix of

light and heavy industry, including a steel mill, for

export processing at Calabar.

In 2001, U.S. exports to Nigeria consisted primarily of

cereals, and machinery and mechanical appliances;

and U.S. imports from Nigeria consisted primarily of

mineral fuels. In addition, Nigeria has been designated

a beneficiary country under AGOA. AGOA (including

GSP) imports from Nigeria totaled $5.7 billion in

2001.

Investment and Privatization Profile

The government’s stated goal of an improved business

climate and increased foreign investment was

restrained by political realities, inadequate

infrastructure, reported corruption, and inconsistent

application of the law. With union and political

opposition to privatization, the government has moved

slowly toward its goal of a market-oriented economy.

Foreign investment is handled by the Nigerian

Investment Promotion Commission. Except in the

petroleum sector, 100 percent foreign ownership is

allowed. Since 1999, there has been increased

foreign interest in investments in the petroleum

sector, though exact estimates of investment vary

widely. The increased interest was because of rising

petroleum and natural gas prices,

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance
233

Net Foreign Direct Investment

600

800

1000

1200

1400

1600

1996 1997 1998 1999 2000

Millions of U.S. Dollars

nigeria

Investment and Privatization Profile-Cont.

discoveries of new reserves in 2000 and 2001, and a

civilian government replacing the previous military

regime. All foreign investors in the petroleum sector

must work with the Nigerian National Petroleum

Corporation (NNPC). Financial conditions of this

state-owned company have slowed investment

expansion, but the government has tried to speed the

process by allowing NNPC to use production-sharing

contracts for financing. One lingering issue for foreign

petroleum companies was sabotage of facilities by

groups who object to perceived environmental damage

by petroleum extraction in their regions. Most current

offshore crude petroleum production comes from

licenses awarded in 1993, but additional licenses

awarded in 2000 may become operational in 2002 or

2003. The government is attempting to develop

natural gas exports because natural gas is not subject

to OPEC quotas. In December 2001, Royal-Dutch Shell

announced a $7.5 billion investment to expand natural

gas production with Nigeria Liquefied Natural Gas. In

the refining sector, the government granted 18

licenses for new private refineries in 2002. Also in

2002, Shell Petroleum and South Africa’s Eskom were

awarded contracts to rebuild several Nigerian power

plants.

Progress continued on a three-stage privatization

program announced in 1999. Privatization is handled

by the National Council on Privatization. Fourteen of

107 planned privatizations have taken place. The first

phase, privatization of banks, cement companies, and

some petroleum marketing firms, is complete. The

second phase, privatization of hotels and automotive

plants, and the third phase, privatization of the

electricity and telecommunications parastatals (Nepa

and Nitel), are under way, and due to be finished in

2003. The Nitel privatization was delayed when a large

bidder could not secure financing, and Nepa will be

restructured into separate companies for generation

and transmission. Critics call the pace of these

privatizations too slow and say the desired sales prices

are unrealistically high, but some expect the pace to

quicken after next year’s elections.

S Petroleum and energy-related products

S Light manufacturing

Key Investment and Privatization Sectors
234
235

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFRfr bn) 1,497 1,574 77.0

GDP (US$ bn) 2.1 2.1 0.0

CPI Inflation (annual average; %) 0.4 -0.5 -0.9

Goods Exports (US$ mn) 2,887 2,414 -473.0

Goods Imports (US$ mn) 665 705 40.0

Trade Balance (US$ mn) 2,222 1,709 -513.0

Current Account Balance (US$ mn) 324 42 -282.0

Foreign Exchange Reserves

(US$ mn)

222 55.5 -166.5

Total External Debt (US$ bn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CFRfr/US$) 711.9 733 21.1

The relatively strong economic recovery in 2000 and

2001 was primarily a result of temporary suspension

of social turmoil. A barrier, however, to continued

rehabilitation and nonpetroleum sector recovery was

the outbreak of fighting in late March 2002.

Nonpetroleum real GDP expanded by 9 percent,

primarily because of a recovery in construction,

transport, commerce, and forestry sectors. About

60 percent of the population derived their livelihood

from the informal agriculture sector. While

petroleum accounted for most of the export earnings

and about half of GDP, forestry and agriculture were

also main production sectors. In early 2001, the

Republic of the Congo surpassed Gabon to become

the third-largest petroleum producer in SSA.

Petroleum production has been declining, however,

as mainland fields dry up and production begins to

move offshore. Despite its petroleum resources, the

Republic of the Congo must import electricity, and

about one-quarter of its electricity comes from the

Democratic Republic of the Congo. The Republic of

the Congo suffers from inadequate infrastructure,

and a reported increase in the HIV/AIDS rate.

International financial donors continued to stress

financial transparency and increased commitment to

policies, especially poverty reduction. Under

agreements with the IMF and the World Bank, the

government’s economic focus was to promote

recovery through macroeconomic stabilization,

structural reforms, and the re-establishment of basic

public services. Most international financial donor

institutions have discontinued additional aid until

conflict cessation.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

CONGO

Petroleum

(47%)

Others

(10%)

Services

(32%)

Agriculture & fishing

(9%)

Forestry

(2%)

-4

-2

0

2

4

6

8

10

1997 1998 1999 2000 2001

Percent

REPUBLIC OF THE
236

Main Trade Partners, percent of total, 2000

Markets Sources

United States 20.9% France 20.5%

South Korea 15.5% United States 9.8%

China 6.7% Italy 7.5%

Germany 3.2% Belgium 3.8%

Main Trade Commodities, US$ million

Exports (1999) Imports (1998)

Petroleum 1,526.4 Petroleum

sector

423.7

Timber 70.8 Other capital

goods

64.9

-600

-400

-200

0

200

400

600

1997 1998 1999 2000 2001

republic of congo

Trade Profile

The Republic of the Congo’s predominant export

product was petroleum. The country also began to

export hardwood, but there has been reported

concern over the unregulated logging of rare tropical

hardwoods. Another government concern was the

illegal trade in animals and animal body parts. The

sale of illegal Democratic Republic of the Congo

diamonds through the Republic of the Congo has

reportedly decreased since the IDI-Diamonds (Israeli)

monopoly was rescinded in April 2001. Rehabilitation

of the railroad from Pointe-Noire to Brazzaville helped

facilitate internal movement and trade.

In 2001, U.S. exports to the Republic of the Congo

consisted primarily of machinery and equipment; and

U.S. imports from the Republic of the Congo

consisted primarily of mineral fuels. In addition, the

Republic of the Congo has been designated a

beneficiary country under AGOA. AGOA (including

GSP) imports from the Republic of the Congo totaled

$130.2 million.

Investment and Privatization Profile

Investment, especially in the nonpetroleum sectors,

was inhibited by inadequate infrastructure, such as

transport networks, port services, and

telecommunications services; a limited energy supply;

and civil unrest. The Republic of the Congo’s primary

investment destination was the petroleum sector.

TotalFinaElf (France) disclosed that its production fell

5.5 percent in 2001. SASOL Petroleum International

(South Africa) announced plans to withdraw from the

Republic of the Congo. Agip (Italy) announced plans to

develop a deepwater commercial field, and Anadarko

(U.S.) announced plans to begin drilling in early 2002.

Following resolution of the border dispute between

the Republic of the Congo and Angola, ChevronTexaco

began working with both governments to explore

jointly their underwater petroleum potential.

Magnesium Alloy Corporation (Canada) completed a

technical feasibility study to mine magnesium in the

Republic of the Congo. Project development was

halted, however, because of domestic unrest.

Inadequate infrastructure has prompted forestry

sector investment in road construction to gain access

to tropical hardwood forests. During 2000 and

2001, several foreign companies expanded their

timber activities in the Republic of the Congo,

including Mokabi (a joint-venture with Rougier of

France), Africaine industrielle de bois (a

Malaysian-Congolese joint-venture company), Danzer

(Germany), and Foralac (Portugal).

During 2001 management of water and electric

utilities was privatized. Several banks were also

restructured and sold. Air transport was partially

liberalized, and the government announced plans to

privatize the port at Pointe-Noire.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

100

200

300

400

500

600

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products

S Minerals and mining (magnesium)

S Agriculture (timber)
237

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Rwfr bn) 682.5 763.2 80.7

GDP (US$ bn) 1.8 1.7 -0.1

CPI Inflation (annual average; %) 3.9 4 0.1

Goods Exports (US$ mn) 69.1 81 11.9

Goods Imports (US$ mn) 222.3 215 -7.3

Trade Balance (US$ mn) -153.2 -134 19.2

Current Account Balance (US$ mn) -6.8 -27.9 -21.1

Foreign Exchange Reserves

(US$ mn)

190.6 212.1 21.5

Total External Debt (US$ bn) 1,258 n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (Rwfr/US$) 389.7 443 53.3

Rwanda is primarily a rural country with more than

90 percent of the population reliant on subsistence

agriculture and, therefore, on rainfall levels. Rwanda

has few natural resources, and economic

development was hindered by inadequate

infrastructure, high transportation costs, and the

effects of civil unrest. The country, nevertheless,

posted relatively strong growth of 6 percent in

2001, driven by coltran exports and increased in

rainfall. Rwanda’s exports of coltran, used in the

manufacturer of mobile phones, declined, however,

because of declining world prices and industry

substitution of niobium for tantalum.

Government economic policy focused on

implementation of IMF structural reforms such as

civil service reform, privatization, trade liberalization,

financial sector restructuring, and tighter monetary

policy. The IMF also released $12 million for a 3-year

PRGF plan. The World Bank, IMF, and the ADB

cancelled $25 million of the country’s debt. A

number of countries such as China ($3.6 million),

Germany ($16.8 million), and the United kingdom

($70 million) granted developmental aid to Rwanda. Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

rwanda

Agriculture

(40%)

Industry

(20%)

Services

(39%)

Others (1%)

0

2

4

6

8

10

12

14

1997 1998 1999 2000 2001

Percent
238

Main Trade Partners, percent of total, 2000

Markets Sources

Germany 17.7% Kenya 22.1%

Pakistan 7.4% Belgium 9.0%

Netherlands 6.7% United States 7.5%

Belgium 5.6% Japan 3.5%

Main Trade Commodities, US$ million, 2000

Exports Imports

Tea 24.3 Capital goods 30.8

Coffee 22.5 Intermediate

goods

40.3

Coltran 8.5 Energy

products

54.0

Tin Ore 1.0 Food 43.4

0

10

20

30

40

50

60

1997 1998 1999 2000 2001

rwanda

Trade Profile

Coffee, tea, and coltran were Rwanda’s leading

exports. In 2001, Rwanda planted 3 million new

coffee trees and introduced new coffee varieties,

which are expected to expand yield fourfold and to

improve crop quality. Coltran, used in the production

of power-storing components for high-tech equipment,

experienced a 400 percent increase in the value of

exports of early 2001, but consequently, experienced

a sharp fall in international prices as companies

located substitute products. Declining international

prices for coffee, tea, coltran, and tantalum have

adversely affected export earnings.

In 2001, U.S. exports to Rwanda consisted primarily

of electrical machinery and equipment; and U.S.

imports from Rwanda consisted primarily of coffee,

tea, mate, and spices. In addition, Rwanda has been

designated a beneficiary country under AGOA. AGOA,

(including GSP) imports from Rwanda totaled

$318,000 in 2001.

Investment and Privatization Profile

In November 2001, Competent Group of Garment

Manufacturing (Hong Kong) announced plans to invest

$11 million to establish a textile manufacturing plant

in Rwanda to export products to the United States

under the AGOA program. Heineken (Netherlands),

the majority shareholder in Rwanda’s only brewery

(Bralirwa), announced plans to build a $58 million

brewery near the capital. In December 2001, Engen

(South Africa), a fuel company that had taken over BP

Fina’s Rwandan fuel assets in 1998, sold its assets

to Shirwa, a Rwandan firm.

Rwanda has sold 40 percent of the state-owned

enterprises slated for privatization. In September

2001, the government sold 30 percent of its

holdings in the Rwandan Tobacco Company to British

American Tobacco for $1.5 million. The government

announced that two (Mulindi and Pfunda) of its nine

tea estates in the northeast would be offered for sale

in early 2002. The state-owned telecommunications

company, Rwandatel, is scheduled to offer 28

percent of its holdings in Rwanda’s sole mobile phone

operator, Rwandacell, in 2002. Rwandacell’s primary

share holders are MTN (South Africa) and Tristar

(Rwanda).

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (coltran)

S Agriculture (tea, coffee, flowers)

0

2

4

6

8

10

12

14

16

1996 1997 1998 1999 2000
239

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Db mn) 369,500 422,000 52,500.0

GDP (US$ mn) 46.3 47.7 1.4

CPI Inflation (annual average; %) 5 9.4 4.4

Goods Exports (US$ mn) 3.2 3.9 0.7

Goods Imports (US$ mn) 22.3 23.4 1.1

Trade Balance (US$ mn) -19.1 -19.5 -0.4

Current Account Balance (US$ mn) -9.6 -5.2 4.4

Foreign Exchange Reserves

(US$ mn)

17 19.7 2.7

Total External Debt (US$ bn) 300.1 303.3 3.2

Debt Service Ratio, paid (%) 26.1 10.8 -15.3

Exchange Rate (DB/US$) 7,978.2 8,842.1 863.9

Agriculture is the principal component of São Tomé

and Principe’s economy, especially cocoa production.

Although the government has attempted to increase

economic growth by reducing price controls and

subsidies for cocoa, economic growth remained

marginal. Because of reported mismanagement and

drought, cocoa production has declined substantially,

contributing to a persistent balance of payments

deficit. São Tomé imported nearly all of its energy

needs, most manufactured goods, consumer goods,

and large amounts of food. In an effort to increase

foreign exchange earnings, the government has in

recent years expanded the nation’s tourism facilities.

International agencies and an increasing, although

small, number of foreign investors led diversification

efforts into fishing and crops other than cocoa.

The country continues to rely on foreign aid and

donors. Debt servicing remained a concern, but has

been alleviated by an IMF approved PRGF in April

2000, and a World Bank and IMF approved debt

relief program under the HIPC initiative in December

2000. In November 2001, the IMF PRGF program

was halted because of fiscal indiscipline, and the IMF

instead worked on establishing a staff-monitored

program. Government economic policy has focused

on resumption of the PRGF program.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

SÃO TOMé &

PRINCIPE

Fisheries

(4%)

Manufacturing & energy

(6%)

Services

(62%)

Agriculture

(17%)

Others (11%)

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
240

Main Trade Partners, percent of total, 2000

Markets Sources

Portugal 38.9% Portugal 47.5%

Netherlands 11.1% UK 7.5%

Turkey 11.1% Germany 7.5%

Main Trade Commodities, US$ million, 1999

Exports Imports

Cocoa 3 Capital goods 12

Food 6

Fuel 3

-4

-2

0

2

4

6

8

10

12

14

1997 1998 1999 2000 2001

Trade Profile

Cocoa was the country’s primary export product.

Estimates place the export of cocoa at 90 percent to

98 percent of total exports. Other remaining primary

exports were copra, coffee, and palm oil. Foodstuffs

accounted on average for 35 percent of total imports

during the 1990s, although the government is

attempting to increase food-crop production.

In 2001, U.S. exports to São Tomé and Principe

consisted primarily of aircraft and parts. In 2001,

U.S. imports from São Tomé and Principe consisted

primarily of machinery and mechanical appliances. In

addition, São Tomé and Principe has been designated

a beneficiary country under AGOA, but, as yet, has

not exported products under the AGOA program.

Investment and Privatization Profile

The UN Development Program, the World Bank, the

European Union, and the African Development Bank

have financed projects on São Tomé and Principe.

Efforts to find private investors, however, have had

little success. A small domestic market, certain

foreign exchange controls, reported corruption, low

productivity, and low education levels are said to

inhibit nonpetroleum foreign investment. In February

of 2001, São Tomé and Nigeria reached a

settlement agreement regarding their border

dispute, which allowed São Tomé to sell petroleum

exploration concessions. The two countries will jointly

manage the zone and split the revenue (40 percent

to São Tomé, 60 percent to Nigeria). São Tomé also

reached territorial rights agreements with Equatorial

Guinea and Gabon. Petroleum production is projected

to begin in 2005. In 2001, ExxonMobil (U.S.) and

Environmental Remediation Holding Corporation

(U.S.) began exploration activities. Spain announced

plans to invest $1 million in rehabilitating the Neves

shipyard through a joint venture between Spain and

the government of São Tomé, with the eventual goal

that the shipyard will serve as a center for EU

shipping fleets.

Most parastatals have been sold, with only 12

companies remaining, including utilities and public

transportation firms not slated for complete

privatization. Since 1991, restructuring the state-run

agricultural and industrial sectors has been a primary

government policy. A lack of domestic capital has

constrained the privatization efforts of several cocoa

estates. As an alternative to complete divestiture,

some plantations have been managed by private

management firms while government ownership was

retained.

U.S. Trade Balance

SÃO TOMÉ AND PRINCIPE

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

0

1

2

3

4

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products
241

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 3,113.6 3,401.8 288.2

GDP (US$ bn) 4.4 4.6 0.2

CPI Inflation (annual average; %) 0.7 3 2.3

Goods Exports (US$ mn) 997.2 1,016.6 19.4

Goods Imports (US$ mn) 1,338.6 1,329.7 -8.9

Trade Balance (US$ mn) -341.4 -313.1 28.3

Current Account Balance (US$ mn) -323.3 -253.7 69.6

Foreign Exchange Reserves

(US$ mn)

383.5 425 41.5

Total External Debt (US$ bn) 3.5 3.5 0.0

Debt Service Ratio, paid (%) 18.1 14 -4.1

Exchange Rate (CFAfr/US$) 712 733 21.0

Senegal has experienced a significant turnaround in

its economic performance resulting from a reform

program that began in 1993. Real GDP growth has

averaged 5 percent since 1993 and annual inflation

decreased to an average 1.5 percent in the

1996-2000 period. The country depends heavily on

agriculture, which employed more than 75 percent of

the workforce and represented more than one-fifth of

GDP. Major cash corps were groundnuts, cotton,

and horticulture. Other important sectors of the

economy were livestock, marine fishing, mining,

natural gas, and textiles. Primarily because of high

production costs, strict regulations, and a small

domestic market, Senegal’s manufacturing sector

remained relatively small. The current account deficit

narrowed primarily because of falling world petroleum

prices. Government policy focused on strengthening

revenue from domestic sources, improving tax

efficiency, and controlling budgetary expenditure.

Senegal’s government also worked on preparing a

PRSP, and in April 2002, the IMF completed the first

review granting Senegal the ability to receive $11

million. Progress toward the HIPC initiative

completion point was hindered by delays in the

government’s planned divestiture of 11 enterprises.

Senegal continued, however, to receive praise from

the World Bank and the IMF for its economic

recovery, stable growth, and transparency.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

SENEGAL

Secondary sector

(23%)

Primary sector

(21%)

Tertiary sector

(56%)

0

1

2

3

4

5

6

7

1997 1998 1999 2000 2001

Percent
242

Main Trade Partners, percent of total, 2000

Markets Sources

India 18.0% France 27.4%

France 15.6% Nigeria 18.9%

Italy 9.0% Germany 5.3%

Mali 5.9% Italy 3.6%

Main Trade Commodities, US$ million, 2000

Exports Imports

Fish & fish

products

222 Food

products

315

Phosphates &

fertilizers

101 Capital goods 216

Groundnuts &

products 84

Petroleum

products 341

-40

-20

0

20

40

60

80

100

120

1997 1998 1999 2000 2001

senegal Trade Profile

The agriculture and fishing sectors dominated Senegal’s

export structure. Senegal was the largest exporter of

groundnuts on the continent. In 2001, the groundnut

sector set a record for both production and collection.

Cotton production more than doubled in 2001 because

of improved rainfall and improved production methods.

The fishing industry represented 30 percent of

merchandise exports, as well as the largest source of

employment. It is also Senegal’s largest foreign

exchange earner. However, with total annual catches

exceeding the estimated sustainable amount,

over-fishing remained a government concern. As of

January 2002, the European Commission had not

extended the 1997 four-year fishing accord with

Senegal. Downstream value-add services fell, however,

as international competition forced the closure of three

tuna-processing plants. Mining also contributed

substantially to merchandise exports. High foreign

interest in the potentially significant deposits of gold,

copper, and other minerals prompted the government

to issue additional mining prospecting permits. Other

major exports included phosphates, petroleum

products, and chemical products.

In 2001, U.S. exports to Senegal consisted primarily of

machinery and mechanical appliances; and U.S. imports

from Senegal consisted primarily of agricultural

products. In addition, Senegal has been designated a

beneficiary country under AGOA, including the apparel

provision. AGOA (including GSP) imports from Senegal

totaled $567,000 in 2001. The substantial increase in

U.S. imports from Senegal in 2001 was primarily a

result of imports of aircraft that was returned, without

having ben advanced in value or improved in condition by

any process.

Investment and Privatization Profile

To encourage both domestic and foreign investment,

the government launched a series of initiatives in 2001.

For example, the Agency for the Promotion of

Investment and Infrastructure provided strategic

advocacy to foreign investors and assisted investors

with administrative procedures. The government also

established the Dakar Industrial Free Zone, which is an

industrial park dedicated primarily to relatively

labor-intensive products and export-oriented

manufacturing. The zone provides investors with tax-free

status, and duty-free entry of raw materials and

components. The government also solicited private

financing for major new work projects, such as a new

international airport, expanded road network, and port

development. In early 2002, the IMF expressed

concerns regarding the slowing pace of privatizations,

especially in the utilities and groundnut sectors.

Enterprises slated for privatization include the state

groundnut marketing and processing enterprise, the

state cotton company, and the state railway company.

Senegal’s government preferred to retain some

ownership in divestitures and to establish joint ventures

with domestic and foreign entrepreneurs.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

-5

40

85

130

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Fishing and fish-processing

S Minerals and mining (gold, copper)

S Infrastructure development
243

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, SRs mn) 3,407 3,665 258.0

GDP (US$ mn) 596.7 626.5 29.8

CPI Inflation (annual average; %) 6.3 6.5 0.2

Goods Exports (US$ mn) 170.1 182.6 12.5

Goods Imports (US$ mn) 370.8 360.2 -10.6

Trade Balance (US$ mn) -200.7 -177.6 23.1

Current Account Balance (US$ mn) -71.5 -93.4 -21.9

Foreign Exchange Reserves

(US$ mn)

43.7 30.2 -13.5

Total External Debt (US$ bn) 165 n/a n/a

Debt Service Ratio, paid (%) 4.4 n/a n/a

Exchange Rate (SRs/US$) 5.7 5.8 0.1

With a population of approximately 80,000 on 115

small islands, Seychelles is Africa’s smallest and

richest nation. Economic performance is driven by

the tourism (generally over 80 percent of tourists

come from Europe) and tuna industries. In an effort

to limit dependence on the tourism and tuna

industries, the government promoted the

development of farming, fishing, and small-scale

manufacturing. Efforts also were made to turn the

island into an offshore banking and insurance center

comparable to the Bahamas. The larger populated

islands are mainly composed of granite, and thus not

suitable for high-yield crops. All petroleum is

imported and only three islands have electricity.

Chronic water shortages also pose a problem – the

tuna plant had to temporarily shut down in 2000

because of a lack of water. By the end of this year,

four desalination plants were due to come online to

temper the water shortage problem.

Government policy focused on diversification of the

economy, reduction of imports, and overcoming

chronic foreign exchange shortages. Diversification

efforts are hampered by a small local market,

geographical isolation, a lack of raw materials, and

an overvalued currency. In 2001, the government

instituted amendments to the Foreign Earnings Act,

the Exchange Control Act, and the Central Bank of

Seychelles Act designed to restrict the parallel

currency market.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

SEYCHELLES

Agriculture & fishing

(3%)

Manufacturing

(18%)

Finance

(10%)

Others (7%)

Construction

(11%)

Transport, communications &

distribution (30%)

Hotels & restaurants

(8%)

Government services

(13%)

-4

-3

-2

-1

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
244

Main Trade Partners, percent of total, 2000

Markets Sources

UK 30.7% South Africa 9.6%

France 16.2% UK 9.3%

Netherlands 10.2% Singapore 9.0%

Italy 10.2% France 8.2%

Main Trade Commodities, US$ million, 1999

Exports Imports

Canned tuna 101.0 Machinery &

transport

goods

108.7

Frozen prawns 1.4 Manufactured

goods

113.7

Frozen & fresh

fish

2.8 Food & live

animals

77.0

Re-exports of

petroleum

33.3 Fuel 36.4

-20

0

20

40

60

80

100

120

140

160

180

200

1997 1998 1999 2000 2001

seychelles

Trade Profile

Seychelles’ main foreign exchange earners were

tourism and fishing. Leading fish products were tuna,

shrimp, and prawns. In September 2001, the

European Commission and the Seychelles government

renewed their fisheries protocol for an additional 3

years. In November 2001, the Seychelles Fishing

Authority extended license requirements to cover a

broader jurisdiction. The parastatal Seychelles

Marketing Board retained its monopoly over the

import of many staple products, such as rice, sugar,

and dairy products.

In 2001, U.S. exports to Seychelles consisted

primarily of aircraft and parts; and U.S. imports from

Seychelles consisted primarily of fish and ocean

products. In addition, Seychelles has been designated

a beneficiary country under AGOA. AGOA (including

GSP) imports from Seychelles totaled $4.2 million in

2001. The substantial increase in U.S. imports from

Seychelles in 2001 was primarily a result of imports

of frozen fillet of seabass.

Investment and Privatization Profile

Investor-friendly reforms contributed to investment in

fishing and manufacturing sectors. Foreign entities

have also invested in the telecommunications and

tourism sectors. The Seychelles International Trade

Zone promotes foreign investment via tax benefits

and other incentives for export-oriented

manufacturing. The Seychelles International Business

Authority registers offshore companies and promotes

the Seychelles as a hub in the Indian Ocean region. In

July 2001, the Seychelles Investment Bank was

established as a joint venture between a Malaysian

group and the government, aimed at securing loans

to fund investment projects. Exploration for crude

petroleum has, thus far, not yielded discoveries. The

government invested primarily in infrastructure, such

as roads and bus service. Its expansion of air

transport services contributed to expansion of the

tourism industry. Although privatization has made

strides, the state continues to play a significant role

in the economy, accounting for 40 percent of GDP.

The partial sale several years ago of the state-owned

tuna plant was an important step away from

government-owned companies. Continued expansion

of the tuna-processing plant has made it the largest

employer on the island.

Net Foreign Direct Investment

Millions of U.S. Dollars

0

20

40

60

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports U.S. imports Trade balance

S Tourism

S Fishing and fish-processing

S Manufacturing (agro-industry)
245

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Le bn) 1,330.4 1,508.7 178.3

GDP (US$ mn) 634 662.6 28.6

CPI Inflation (annual average; %) -0.9 8 8.9

Goods Exports (US$ mn) 29 50 21.0

Goods Imports (US$ mn) 160.5 190 29.5

Trade Balance (US$ mn) -131.5 -140 -8.5

Current Account Balance (US$ mn) -115 -135 -20.0

Foreign Exchange Reserves

(US$ mn)

50.9 51.6 0.7

Total External Debt (US$ bn) 1,273 n/a n/a

Debt Service Ratio, paid (%) 48 n/a n/a

Exchange Rate (Le/US$) 2,098.3 2,277 178.7

Persistent civil unrest has produced stagnant

economic performance in recent years. In late 2000

and early 2001, however, a series of agreements

were signed appointing UN peacekeeping forces and

commencing demobilization. Consequently, after

several years of negative GDP growth, Sierra Leone

experienced relatively strong growth in 2000 and

2001. Although Sierra Leone has substantial

agriculture resources, as well as mining and fishing

potential, it is one of the poorest countries in the

world. Agriculture employed about 70 percent of the

population in 2001, but struggled because of low

producer prices and inadequate transportation

infrastructure. The mining of diamonds, bauxite,

rutile, and gold provided the main sources of foreign

currency.

In September 2001, the IMF announced a 3-year,

$169 million loan to Sierra Leone under the PRGF.

The loan is subject to a two-stage strategy of goals

and guidelines set up by the government. The first

stage focuses on increasing security, rehabilitating

social and physical infrastructure, increasing

assistance to disabled and war veterans, and building

governance capacity. The second stage is expected

to focus on long-term growth and increased poverty

reduction. Also, in March 2002, under the HIPC

initiative, the IMF and World Bank announced debt

reduction of up to $950 million for Sierra Leone.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

SIERRA LEONE

Other industry

(4%)

Manufacturing

(13%)

Services

(22%)

Agriculture

(58%)

Import duties

(3%)

-20

-15

-10

-5

0

5

10

1997 1998 1999 2000 2001

Percent
246

Main Trade Partners, percent of total, 2000

Markets Sources

Belgium 41.7% UK 39.5%

United States 11.7% United States 6.2%

France 8.0% Netherlands 5.8%

Canada 6.4% Germany 4.4%

Main Trade Commodities, US$ million, 1996

Exports Imports

Diamonds 37.0 Food 84.2

Rutile 2.3 Fuel &

energy

19.7

Fish & shrimps 2.0 Chemicals 16.5

Cocoa 1.9 Machinery &

transport

equipment

14.3

-5

0

5

10

15

20

25

30

35

1997 1998 1999 2000 2001

sierra Leone

Trade Profile

Official trade figures are difficult to assess because

of the reported smuggling during the civil unrest. The

government attempted to curb smuggling by revising

the tax code to harmonize rates with neighboring

countries. Mineral exports were Sierra Leone’s

predominant export products, and consisted

primarily of diamonds and some gold. From July

2000 to July 2001, official diamond exports total

$15 million, however, estimated totals from illegal

exports were reportedly as high as $68 million. In

December 2001, the UN Security Council extended

its ban on importing diamonds without certification of

origin for an additional 11 months. Sierra Leone is

also the world’s second largest producer of rutile, an

essential ingredient in paints. Traditional export crops

are coffee, cocoa, palm kernels, and ginger. The

fishing industry expanded, because of oyster and

shrimp increases. The trade deficit increased

because of increasing food and fuel imports. It is

expected to remain in a deficit until security

conditions increase enough to provide for traditional

exports to increase.

In 2001, U.S. exports to Sierra Leone consisted

primarily of milling industry products; and U.S.

imports from Sierra Leone consisted primarily of

apparel and clothing. In addition, Sierra Leone has

been designated a beneficiary country under AGOA.

AGOA, (including GSP) imports from Sierra Leone

totaled $387,000 in 2001.

Investment and Privatization Profile

Investment outside the mining and petroleum sectors

was inhibited by political and social unrest,

inadequate infrastructure networks, lack of skilled

labor, a recuperating banking system, and frequent

fuel shortages. The Sierra Leone government opened

bidding for offshore crude petroleum exploration at

the start of 2002. The process was supervised by

the U.S.-Norwegian firm TGS-Nopec. Kimberlite

(diamond-bearing hard rock) was discovered in the

Kono region, and the government awarded a

concession to Branch Energy. Given the civil unrest

and administrative uncertainty, no information is

available on privatization.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

0

1

2

3

4

1996 1997 1998 1999 2000

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining (diamonds, bauxite, rutile)

S Petroleum and energy-related products
247

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, SolSh bn) n/a n/a n/a

GDP (US$ bn) n/a n/a n/a

CPI Inflation (annual average; %) n/a n/a n/a

Goods Exports (US$ mn) 120 n/a n/a

Goods Imports (US$ mn) 336 n/a n/a

Trade Balance (US$ mn) -216 n/a n/a

Current Account Balance (US$ mn) n/a n/a n/a

Foreign Exchange Reserves

(US$ mn)

n/a n/a n/a

Total External Debt (US$ mn) 2,562 n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (SolSh/US$) n/a n/a n/a

Agriculture accounted for approximately 60 percent

of Somalia’s GDP in 2001. Livestock production is

the largest component of the agricultural sector and

accounted for approximately 40 percent of GDP.

Prior to a ban on livestock exports, this sector

accounted for approximately 65 percent of exports.

Approximately two-thirds of the labor force was

employed in agricultural production, primarily as

pastoral nomads. Most livestock and other

agricultural production depend on rainfall rather than

irrigation. Insufficient rains in late 2001 resulted in a

poor harvest in much of the southern region of the

country. Deposits of gold, silver, tungsten,

manganese, titanium, chromium, nickel, and gypsum

have been identified, but have not been developed.

Remittances from displaced Somalis living abroad

have been estimated at $200 to 500 million

annually. The remittance company al-Barakat was the

largest Somali employer. This firm was closed in

November 2001, and its assets seized, because of

alleged ties to terrorist organizations. Several other

remittance banks operating in Addis Ababa were

closed. The United Nations Development Program

announced the approval of a project designed to

legitimize financial remittance services offered by

transfer companies. The break-away regions of the

Republic of Somaliland and Puntland have issued

separate currency and maintain separate

administrations for the collection of duties and taxes.

The regions do not recognize agreements signed by

the Transitional National Government. The lack of

government control over much of the country has

resulted in the lack of formal economic data.

Economic Profile

somalia
248

Main Trade Partners, percent of total, 2000

Markets Sources

Saudi Arabia 29% Djibouti 27%

United Arab

Emirates

29% Kenya 12%

Yemen 28% India 9%

Bahrain 1% Brazil 9%

Main Trade Commodities, US$ million, 1990

Exports Imports

Livestock 43 Manufactures 204

Bananas 28 Non-fuel primary

products

104

Hides & skins 3 Fuel 52

0

1

2

3

4

5

6

7

8

1997 1998 1999 2000 2001

somalia

Trade Profile

The ban on livestock imports from Somalia (owing to

the outbreak of Rift Valley Fever) imposed by Saudi

Arabia and other Gulf states in September 2000,

persisted and has interrupted Somalia’s largest

source of export earnings. Factional fighting in the

southern part of the country hampered the

production and export of traditional crops, such as

sorghum, sugarcane, and bananas. Somalia’s

coastline is the longest in Africa. Prior to the civil

unrest, the country’s estimated 4,000 artisanal

fishermen landed approximately 10,000 metric

tonnes annually. Fishing in Somalia’s coastal waters

was largely unregulated and unrecorded. Fishing

licenses were issued by a variety of factions. Puntland

has retained the services of Hart Group International,

a security firm based in Bermuda, to train and to

operate a fishery protection force. The International

Maritime Bureau issued an alert, warning ships to

remain at least 50 miles off the Somali shore to

avoid seizure by the warring factions, as vessels have

been seized in both the northern and southern

regions of the country In 2001, U.S. exports to

Somalia consisted primarily of milling industry

products; and U.S. imports from Somalia consisted

primarily of essential oils. Somalia is not designated

an AGOA-beneficiary country.

Investment and Privatization Profile

The lack of security, as evidenced by the continuing

abduction of international aid workers in the capital,

deterred investment in the central and southern part

of the country. Renewed fighting has been reported

in Puntland, formerly one of the more stable regions

of the country. The autonomy of the Republic of

Somaliland in the northwest and Puntland in the

northeast has not been recognized by Somalia’s

transitional government. The Republic of Somaliland

issues its own currency, the Somaliland shilling.

Inflation of both the Somali shilling and the Somaliland

shilling were more than 100 percent annually. No

external debts have been serviced since 1990. The

government signed a 1-year agreement worth $3.5

million with TotalFinaElf (France) to explore blocks off

the southern coast between Merca and Kismaayo for

possible crude petroleum reserves.

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

U.S. Trade Balance

Key Investment and Privatization Sectors

S Fishing

S Petroleum and energy-related products
249

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, R bn) 887.8 971.1 83.3

GDP (US$ bn) 127.9 112.8 -15.1

CPI Inflation (annual average; %) 5.3 5.7 0.4

Goods Exports (US$ mn) 31,636 30,643 -993.0

Goods Imports (US$ mn) 27,320 25,677 -1,643.0

Trade Balance (US$ mn) 4,316 4,966 650.0

Current Account Balance (US$ mn) -575 -165 410.0

Foreign Exchange Reserves

(US$ mn)

6,083 6,045 -38.0

Total External Debt (US$ bn) 24.9 24.8 -0.1

Debt Service Ratio, paid (%) 9.9 10 0.1

Exchange Rate (R/US$) 6.9 8.6 1.7

South Africa has the highest GDP and is one of the

most diverse economies in SSA. Although agriculture

and mining remain important economic sectors,

South Africa has transformed itself from an economy

dominated by these primary sectors to one where

services and manufacturing contribute a substantial

share to GDP. Part of this transformation is because

of South Africa’s continued efforts to expand

value-add activities by moving from pure extraction to

downstream benefication. Manufacturing, primarily

products of steel, aluminum, and other processed

minerals, accounted for one-fifth of GDP in 2001.

South Africa has approximately 80 percent of the

world’s reserves of manganese ore, 68 percent of

chromium, 56 percent of platinum group metals, and

35 percent of gold. Although agriculture, forestry,

and fishing provided most rural employment, these

sectors represented less than 5 percent of GDP in

2001. The lack of skilled labor continued to dampen

economic growth prospects.

Government policy has generally focused on fiscal

prudence, tight monetary policy, and liberalization of

the economy. Tight monetary policy and

independence of the South African Reserve Bank

contributed to relatively low inflation rates. Although

the rand lost approximately 40 percent of its value in

2001, by May 2002, the rand had appreciated 17

percent against the dollar. Several reported reasons

for the rand’s depreciation were South Africa’s

relatively low foreign exchange reserves, delays in the

privatization process, poor investment sentiment

toward emerging markets, and the political instability

in neighboring Zimbabwe. Several large companies,

such as South African Breweries and Anglo

American, moved their primary listings to London in

search of additional capital. In May 2001, DeBeers

delisted from the Johannesburg Securities Exchange.

Origins of GDP (2001)

Economic Profile

Real GDP Growth Rate

SOUTH AFRICA

Manufacturing

(20%)

Financial services

(18%)

Others (26%)

Construction

(3%)

Electricity, gas &

water supplies (3%)

Public adm./parastatal

(20%)

Agriculture, forestry & fishing

(4%) Mining & quarrying

(6%)

0

1

2

3

4

1997 1998 1999 2000 2001

Percent
250

Main Trade Partners, percent of total, 2000

Markets Sources

United States 10.6% Germany 13.3%

UK 7.6% United States 11.9%

Japan 7.1% UK 9.4%

Germany 7.0% Japan 7.3%

Main Trade Commodities, US$ million, 1997

Exports Imports

Metal & metal

products

6.3 Machinery &

appliances

8.9

Gold 5.6 Mineral

products

3.7

Diamonds 2.9 Chemicals 3.4

Machinery &

transport

equipment

2.6 Transport &

equipment

1.7

-2100

-1400

-700

0

700

1400

2100

2800

3500

4200

4900

1997 1998 1999 2000 2001

south africa

Trade Profile

Minerals and mineral-based products contributed

heavily to export earnings. Gold accounted for

approximately one-third of exports. Other important

mineral exports were manganese, chrome, platinum,

coal, and diamonds. Exported agriculture and

agriculture-based products included maize, wine,

fruit, and ostrich meat. Agriculture and agriculturally

based products represented an export growth area.

For example, over the past 3 years South Africa has

developed a thriving olive oil export market, and

South African olive oil garnered two medals of

distinction in Italy. South Africa also has become the

world’s seventh largest wine producer, most of which

is destined for the EU. The EU and South Africa

signed an agreement in January 2002, to expand

wine and spirits trade. As part of the agreement, the

EU will provide $13 million to South Africa to assist in

restructuring its wine and spirits industry, while

South Africa agreed to phase out use of the names

port, sherry, grappa, and ouzo. The government has

explored free trade agreements with Argentina,

Brazil, China, India, Paraguay, the United States, and

Uruguay. Approximately one-eighth of South Africa’s

exports are to other SSA countries. South Africa’s

exports reportedly received a boost from the rand’s

depreciation in 2001.

In 2001, U.S. exports to South Africa consisted

primarily of aircraft and parts, machinery and

mechanical appliances, and vehicles and parts; and

U.S. imports from South Africa consisted primarily of

minerals and precious stones. In addition, South

Africa has been designated a beneficiary country

under AGOA including the apparel provision. AGOA,

(including GSP) imports from South Africa totaled

$923.2 million in 2001.

Investment and Privatization Profile

South Africa is one of the primary destinations for

investment into SSA for a variety of reasons. South

Africa has a strong infrastructure network, including

roads, ports, and airports, which are well-suited for

business and trade. South Africa also boasts

well-functioning institutions, such as courts and

government. South Africa was the destination of

numerous investment projects in 2001 and 2002.

Bluefish Technologies (Germany), a

telecommunications firm, opened an office in

Johannesburg in October 2001. In November 2001,

Cellit Technologies (U.S.), a customer interaction

management solutions company, opened an office in

Cape Town. Also in November 2001, Oracle (U.S.)

announced a partnership with Visions Consulting, a

South African firm specializing in human resources

consulting. The motor industry experienced

substantial investment as Ford, Honda,

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance
251

south africa

Investment and Privatization Profile-Cont.

Toyota, and Volvo increased their presence in South

Africa. For example, Ford Motor Company of South

Africa announced that the company was on course to

triple its 2001 production of 55,000 vehicles to

160,000 vehicles in 2002. This expansion has

spurred component supplier investment, such as

Murray & Roberts Foundry Group, which

commissioned the construction of a $13 million

aluminum foundry in April 2002, and the industrial

group Bel-Essex, which signed a $10 million

agreement with Almec (Italy) to build an aluminum

die-casting foundry.

South Africa also is a significant investor in SSA. In

2001, a South African group purchased 80 percent of

Uganda’s largest bank, the Uganda Commercial Bank.

Also in 2001, Gold Fields, a South African firm, which

jointly owns the Tarkwa mine in Ghana, purchased a

71 percent stake in Abosso Gold in Ghana. In 2002,

Eskom Enterprises of South Africa and Shell Petroleum

Development Company received $540 million to

rehabilitate Afam power plants in Nigeria, as well as to

construct an additional plant. The government is also

part of a consortium building a gas pipeline from

Mozambique to South Africa. The pipeline will be jointly

owned by Sasol and the governments of South Africa

and Mozambique.

Although at a slower pace, government privatization

and liberalization efforts continued throughout 2001

and 2002. In 2001, the government continued the

restructuring of Transnet, the transportation

parastatal, in preparation for privatization. In late

2001, the government repurchased its 20 percent

ownership of South African airlines, which had earlier

been purchased by Swissair, because Swissair was

undergoing financial difficulties that threatened closure

of the airline. In January 2002, the government sold

its 20 percent stake in M-Cell, one of South Africa’s

mobile phone operators, to Ice Finance (Netherlands)

for $475 million, although the government retained

control of the timing of sale and purchaser selection.

Also in January 2002, the government placed the

assets of South African Forest Company for sale.

These assets included a forest lodge, an avocado

estate, and an eucalyptus estate. The government

retained ownership in many other assets of the forest

company, such as Aventura (a chain of holiday resorts)

and Alexkor (a diamond mine). In March 2002, the

government announced that it would begin receiving

bids for a second national operator to compete with

Telkom, the state-owned telecommunications firm,

whose monopoly was set to expire in mid-2002.

Net Foreign Direct Investment

-1300

-950

-600

-250

100

450

800

1150

1500

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Minerals and mining

S Manufacturing

S Services (telecommunications, tourism)
252
253

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, SD bn) 3,325.2 3,618.5 293.3

GDP (US$ bn) 12.9 14 1.1

CPI Inflation (annual average; %) 14 6 -8.0

Goods Exports (US$ mn) 1,806.7 1,601.8 -204.9

Goods Imports (US$ mn) 1,366.3 1,427.8 61.5

Trade Balance (US$ mn) 440.4 174.1 -266.3

Current Account Balance (US$ mn) -556.8 -562.5 -5.71

Foreign Exchange Reserves

(US$ mn) 247.3 125 -122.3

Total External Debt (US$ bn) 15.7 15.9 0.2

Debt Service Ratio, paid (%) 3.4 4 0.6

Exchange Rate (SD/US$) 257.1 258.7 1.6

Despite abundant natural resources, Sudan’s

economic performance was stifled by civil unrest in

2001. Agriculture was the most important

contributor in GDP, but inadequate maintenance of

the irrigation system and persistent drought limited

the sector’s performance. Sesame surpassed cotton

as the principal cash crop. In addition, petroleum

production has recently surged and become a

significant contributor to GDP after completion of the

longest crude petroleum export pipeline in Africa.

Use of the pipeline has become an important

economic activity in Sudan, and it is altering the

trade climate and attracting other development

projects. There are concerns, however, regarding

the pipeline’s security and political risk, especially for

the foreign firms, because of ongoing civil unrest.

Most of the expected future petroleum gains will be

from the 95 percent foreign-owned Greater Nile

Petroleum Operating Company, which led the

development efforts of the Sudanese petroleum

industry in 2001. Government economic policy in

2001 focused on implementation of the 1999 IMF

agreement. Policy goals included macroeconomic

stabilization, external accounts improvement,

increased privatization, banking sector reform, trade

liberalization, and investment and foreign exchange

control liberalization.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

SUDAN

Agriculture

(43%)

Construction

(6%)

Industry & mining

(10%)

Transport, communications &

distribution (26%)

Other services

(15%)

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

Percent
254

Main Trade Partners, percent of total, 2000

Markets Sources

China 37.6% China 10.0%

Japan 15.8% Saudi Arabia 7.4%

Saudi Arabia 8.7% Germany 6.7%

South Korea 7.2% UK 5.0%

Main Trade Commodities, US$ million, 2000

Exports Imports

Crude oil 1,351 Machinery &

equipment

329

Sesame 147 Manufactured

goods

294

Livestock 75 Wheat &

wheat flour

208

Cotton 53 Transport

equipment

159

0

5

10

15

20

25

30

35

40

45

1997 1998 1999 2000 2001

sudan

Trade Profile

Agriculture, which has historically produced

approximately 80 percent of the country’s exports,

was the largest contributor to trade and employed

approximately two-thirds of the population in 2001.

The main crops were sesame, cotton, gum arabic,

and sorghum. Another important part of the

agriculture sector is livestock. This commodity has

increased recently, because of better veterinary

services and increased credit facilities. Sudan’s trade

structure has undergone significant changes,

because of the emergence and expansion of the

petroleum industry, which now represents the

largest, single source of foreign exchange. In the last

2 years, Sudan recorded a trade surplus for the first

time in more than 20 years, primarily because of the

petroleum industry. U.S. trade with Sudan has

increased because of the lifting of UN sanctions. In

2001, U.S. exports to Sudan consisted primarily of

cereals and milling industry products; and U.S.

imports from Sudan consisted primarily of lac, gums,

and resin. Sudan is not designated an

AGOA-beneficiary country.

Investment and Privatization Profile

Investment was concentrated in the petroleum

sector, although political and social instability resulted

in some divestiture. The Chinese National Petroleum

Company announced plans to increase capital

spending in Sudan and expected to triple its overseas

production by 2005. Canadian Talisman Energy

succumbed to pressure and recently sold its 25

percent stake in the Greater Nile project to Lundin Oil

(Sweden). Investment in the nonpetroleum sector was

inhibited by social and political unrest, which

contributed to inadequate infrastructure, safety and

security concerns, and unstable labor market.

Nonpetroleum sector investment has, nevertheless,

occurred in the agriculture sector with U.S.

investment in the sugar cane and cotton sectors.

The government’s privatization goals are to support

growth, to fund infrastructure, and to decrease public

spending. In July 2001, the government announced

that the finance ministry had identified firms and

projects for privatization or for investors development,

representing about $15 billion and covering a variety

of economic sectors. In June 2002, the government

announced the privatization of 13 parastatals. The

most significant company was Sudan’s oldest

commercial bank, Bank of Khartoum. Other banks

were slated for sale, but await balance sheet

resolutions. Additional companies slated for

privatization during this phase were stores, and the

Bridges and Roads Corporation. Companies the

government reportedly intends to privatize in the

future include the Sudan Railway Corporation, Sudan

Airways, and the National Electric Company.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Petroleum and energy-related products

50

150

250

350

450

550

650

750

1996 1997 1998 1999 2000
255

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, E bn) 9.3 10.2 0.9

GDP (US$ bn) 1.3 1.2 -0.1

CPI Inflation (annual average; %) 7.3 7.5 0.2

Goods Exports (US$ mn) 811 810 -1.0

Goods Imports (US$ mn) 921 879 -42.0

Trade Balance (US$ mn) -110 -69 41.0

Current Account Balance (US$ mn) -40 -63 -23.0

Foreign Exchange Reserves

(US$ mn)

352 272 -80.0

Total External Debt (US$ bn) 262 295 33.0

Debt Service Ratio, paid (%) 2.3 2.5 0.2

Exchange Rate (E/US$) 6.9 8.6 1.7

Swaziland’s economic growth has been relatively

strong for several decades, though it slowed during

the 1990s. About 60 percent of the population

relied on subsistence agriculture in 2001, and

overgrazing, soil depletion, and drought persisted as

frequent problems. More than 10 percent of the

population depended on the sugar industry, the

nation’s largest employer and leading exporter.

Swaziland has Africa’s largest manmade forest,

which covers 7 percent of the nation’s land area and

earns foreign currency through the sale of wood and

pulp. The manufacturing sector consisted primarily of

agro-processing activities. Diversification efforts have

begun to pay off. Until the late 1980s, 80 percent of

the industrial sector depended on agricultural and

forestry products. As of mid-2002, textiles,

footwear, beverages, beer processing, and

construction contributed substantially to economic

growth. Consequently, agriculture’s contribution to

GDP has fallen from 33 percent at independence

(1968) to approximately 10 percent in 2001.

Monetary and fiscal policy generally followed those of

South Africa. Government policy focused on

land-tenure reform, labor-issues, and privatization.

Tax reforms involving corporate tax rates, withholding

rates, tax bands, and thresholds took effect in July

2001. Cautious government borrowing has left the

country relatively free from debt.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

SWAZILAND

Other industry

(9%)

Manufacturing

(36%)

Others

(11%)

Agriculture

(10%)

Government services

(16%)

Other services

(18%)

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
256

Main Trade Partners, percent of total, 1999

Markets Sources

South Africa 72.0% South Africa 88.8%

EU 14.2% EU 5.6%

Mozambique 3.7% Japan 0.6%

United States 3.5% Singapore 0.4%

Main Trade Commodities, US$ million, 2000

Exports Imports

Misc. edibles

(largely soft

drink

concentrate)

251 Manufactured

goods

154

Consumer goods 133 Machinery &

transport

equipment

280

Sugar 112 Food & live

animals

131

Wood pulp 86 Chemicals 111

Net Foreign Direct Investment

Millions of U.S. Dollars

-80

-60

-40

-20

0

20

40

60

80

1997 1998 1999 2000 2001

swaZILAND

Trade Profile

Exports of soft drink concentrate, sugar, and wood

pulp were the main foreign exchange earners. The

nation’s relatively narrow export base makes it

particularly vulnerable to external shocks in world

prices. Though sugar still has a major role among

exported items, exports of electronic appliances,

textiles, and processed food grew rapidly. Tourism

also contributed substantially to foreign exchange

earnings.

In 2001, U.S. exports to Swaziland consisted

primarily of machinery and mechanical appliances;

and U.S. imports from Swaziland consisted primarily

of apparel and clothing. In addition, Swaziland has

been designated a beneficiary country under AGOA,

including the apparel provision. AGOA (including GSP)

imports from Swaziland totaled $14.8 million in

2001.

Investment and Privatization Profile

Stability and economic reforms have attracted foreign

investment, particularly from South Africa. Other

leading investment sources included England and

Taiwan. Coca Cola invested heavily in the nation when

it built a syrup concentrate plant. Lack of political

transparency reportedly serves as an impediment to

domestic and international investor confidence. The

government continued to advance its privatization

efforts. The Swazi Post and Telecommunications

Corporation were earmarked for privatization, as well

as the Royal Swazi National Airways Corporation.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Key Investment and Privatization Sectors

S Light manufacturing

0

10

20

30

40

1996 1997 1998 1999 2000
257

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, TSh bn) 7,238.7 7,981.3 742.6

GDP (US$ bn) 9 9.1 0.1

CPI Inflation (annual average; %) 5.9 5.1 -0.8

Goods Exports (US$ mn) 665.7 827 161.3

Goods Imports (US$ mn) 1,339.8 1,547.3 207.5

Trade Balance (US$ mn) -674.1 -720.3 -46.2

Current Account Balance (US$ mn) -480.3 -482.4 -2.1

Foreign Exchange Reserves

(US$ mn)

974.2 1,155 180.8

Total External Debt (US$ bn) 7.4 7 -0.4

Debt Service Ratio, paid (%) 16.2 12.8 -3.4

Exchange Rate (TSh/US$) 800.4 875.5 75.1

The Tanzanian economy is heavily dependent on

agriculture, which accounted for 48 percent of GDP

in 2001. About 80 percent of the labor force was

engaged in agriculture in 2001, and the remainder

was engaged in the industry and commerce sectors.

The major agricultural products were coffee, cotton,

tea, tobacco, cloves, sisal, cashew nuts, and maize.

Agricultural activities consisted primarily of

subsistence and cash-crop farming. Sisal and tea

are, however, grown on large estates. Industry,

including textiles, agribusiness, light manufacturing,

petroleum refining, and construction, accounted for

approximately 8 percent of GDP in 2001. Gold

mining, tourism, and transport and communications

have increased GDP contributions in recent years.

Although the government focused on raising

revenues and improving fiscal performance, it

remained heavily dependent on donor inflows. Major

reforms included improving development

management, maintaining a stable fiscal policy, using

public resources more efficiently, deregulating state

enterprises, supporting primary education and basic

health care, supporting the development of basic

infrastructure, and restructuring the financial sector.

Having followed an IMF program for 3 years and then

embarked on a PRGF, Tanzania was admitted into

the HIPC initiative in April 2000. In September

2001, the African Development Bank and the Arab

Bank for Economic Development in Africa provided

support to increase economic growth and to reduce

poverty. In November 2001, the IMF approved $3

billion in debt relief for Tanzania, as the country

officially reached the HIPC completion point. The

International Finance Corporation Program provided

$20 to $40 million over a 3-year period with a focus

on private sector development through loan and

equity investments, advisory services, privatization of

state-owned enterprises, and capital market

development. In February 2002, Canada announced

that it would forgive $52 million in debt owed by

Tanzania.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

TANZANIA

Manufacturing

(8%)

Services

(35%)

Others

(2%)

Construction & utilities

(5%)

Agriculture, forestry &

fishing (48%)

Mining

(2%)

0

1

2

3

4

5

6

1997 1998 1999 2000 2001

Percent
258

Main Trade Partners, percent of total, 2000

Markets Sources

UK 20.2% South Africa 11.5%

India 13.4% Japan 9.3%

Germany 9.1% UK 7.0%

Netherlands 6.3% Australia 6.2%

Main Trade Commodities, US$ million, 2000

Exports Imports

Gold 150.0 Machinery &

transport

equipment

225.6

Cashew nuts 84.4 Consumer

goods

381.0

Coffee 83.7 Oil 134.1

Manufactures 43.3 Industrial

raw materials

165.5

0

10

20

30

40

50

60

70

80

1997 1998 1999 2000 2001

tanzania

Trade Profile

Tanzania’s traditional export crops, coffee, cotton,

and tea, have experienced declining and volatile

international prices in recent years. Consequently, the

government has been encouraging nontraditional

exports, such as petroleum, gold, and manufactured

goods. Tourism remained a dynamic sector, exhibiting

growth in recent years.

In 2001, U.S. exports to Tanzania consisted primarily

of vehicles and parts; and U.S. imports from Tanzania

consisted primarily of precious stones, and fish and

ocean products. In addition, Tanzania has been

designated a beneficiary country under AGOA,

including the apparel provision. AGOA (including GSP)

imports from Tanzania totaled $899,000 in 2001.

Investment and Privatization Profile

The government has been promoting the private

sector by liberalizing investment regulations. For

example, in mid-2002, the chairman of the Dar es

Salaam Stock Exchange announced that as of Oct. 1,

2002, foreign investors would be allowed to purchase

shares. The Tanzanian Investment Centre has

registered 1,800 projects since the early 1990s

when Tanzania introduced a market-based system.

Investments have targeted the mining, financial

services, insurance, agriculture, agro-industry,

tourism, and various other sectors. In October 2001,

the government launched the National Investment

Company in an attempt to encourage national firms to

purchase privatized public enterprises. The

investment company plans to collect $1.12 million for

its initial capital outlay, and the government is in the

process of establishing seven export processing

zones throughout the country. In mid-2002,

Goldstream Mining (Australia) announced that it had

received encouraging results from test drilling,

indicating high levels of platinum group metals, which

include platinum, gold, and palladium. The company

also announced that it would intensify drilling efforts in

May 2002. Barrick Gold Corporation announced in

May 2002 that initial drilling had resulted in

encouraging results for nickel deposits.

The government’s privatization program focused on

utilities, infrastructure, and large commercial

enterprises. In December 2001, in preparation for

privatization of the Tanzanian Railways Corporation,

the government announced plans to transfer

management and operation to a private firm for a

period of 25 years. The private firm is not expected,

however, to manage the Tazara railway. In April

2002, Netgroup Solutions (South Africa) was

awarded a contract to manage the state-owned

electric company, Tanesco, in preparation for future

privatization. The government also continued efforts

to locate a buyer for the national airline, Air Tanzania.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

100

125

150

175

200

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Minerals and mining

S Parastatal divestiture
259

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, CFAfr bn) 885.8 928.8 43.0

GDP (US$ bn) 1.2 1.3 0.1

CPI Inflation (annual average; %) 1.9 2.3 0.40

Goods Exports (US$ mn) 330 306 -24.0

Goods Imports (US$ mn) 451 420 -31.0

Trade Balance (US$ mn) -121 -114 7.0

Current Account Balance (US$ mn) -137 -118 19.0

Foreign Exchange Reserves

(US$ mn)

152.3 142 -10.3

Total External Debt (US$ bn) n/a n/a n/a

Debt Service Ratio, paid (%) n/a n/a n/a

Exchange Rate (CFAfr/US$) 712 732.3 20.3

Togo is heavily dependent on subsistence agriculture,

which provided employment for nearly 65 percent of

the labor force in 2001. Cotton and phosphate

dominated Togo’s exports and were its principal

foreign exchange earners. Togo’s phosphate industry

required revamping because of the EU, Togo’s

primary phosphate market, implemented stricter

regulations governing permissible levels of cadmium

in phosphate imports. This would lower demand for

Togo’s current product. Recently appointed

management by the International Fertilizer

Group-Togo is expected to address this concern, as

well as increase phosphate production. The

International Fertilizer Group is a joint venture

between the government and Brifco (France) and has

been charged with management of the state’s

phosphate assets. Higher producer prices, the

introduction of more productive cotton varieties, and

timelier payments to farmers resulted in higher

cotton harvests in 2001. Although power shortages

continued to hamper economic development, the

planned West Africa gas pipeline project involving

Togo, Ghana, Benin, and Nigeria is expected to begin

operations in 2005, and consequently, to alleviate

shortages in the region.

The IMF, the World Bank, and the majority of the

international donor community maintained their

suspension of financial assistance in 2001. The

resumption of donor assistance is not expected until

Togo reschedules general elections, which were

postponed in March 2002. A visiting IMF delegation,

however, applauded Togo’s structural and budgetary

reforms.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

TOGO

Agriculture

(39%)

Industry

(22%)

Services

(39%)

-3

-2

-1

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
260

Main Trade Partners, percent of total, 2000

Markets Sources

Benin 12% Ghana 26%

Nigeria 9% France 11%

Belgium 5% China 7%

Ghana 4% Côte d’Ivoire 7%

Main Trade Commodities, US$ million, 2000

Exports Imports

Re-exports 82 Capital goods 96

Phosphates 76 Food

products

79

Cotton 57 Petroleum

products

43

0

5

10

15

20

25

30

1997 1998 1999 2000 2001

togo

Trade Profile

Phosphate was Togo’s predominant export product

and foreign exchange earner. Under the management

of IFG-Togo, foreign exchange earnings are expected

to increase as phosphate production increases.

Cotton exports are also expected to increase in

2002, if weather conditions remain normal and if

international prices are stable. Imports consisted

primarily of capital goods and equipment, driven by

infrastructure projects, such as the Ecomarine port

project. In 2001, U.S. exports to Togo consisted

primarily of machinery and mechanical appliances;

and U.S. imports from Togo consisted primarily of

fertilizers and mineral fuels. Togo is not designated an

AGOA-beneficiary country.

Investment and Privatization Profile

Togo attracted investment in agriculture and

infrastructure development, with continued potential

in the petroleum sector in 2001. Continental Eagle

opened a second cotton ginnery, Socosa, in January

2002. A joint venture between Sea Port (U.S.) and

the Ecomarine shipping group announced plans to

invest $100 million in a new container terminal in

Lome. Hunt Oil (U.S.) announced plans to drill its first

well before the end of 2002.

Togo’s privatization process has been intermittent. As

of August 2002, only Togo’s state-owned power

sector was privatized. In 2001, the government

commissioned a private consortium sponsored by

Sterling Merchant Finance to preside over the

privatization of Togo Télécom. Régies Nationales des

Eaux du Togo, the state-owned water company, was

scheduled for privatization, but had to focus on

financial restructuring. Togo’s second largest bank,

Banque Togolaise pour le Commerce et l’Industrie,

was scheduled for privatization sometime in 2002.

BNP-Paribas Bank of France increased its share in

state-owned Banque Togolaise pour le Commerce et

l’Industrie to 53 percent. Togo’s Office Togolais des

Phosphates was dissolved and replaced by the

International Fertilizer Group in April 2002.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

0

5

10

15

20

25

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Minerals and mining (phosphate)

S Agriculture (cotton)

S Infrastructure development
261

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, NUSh bn) 9.5 10.2 0.7

GDP (US$ bn) 5.8 5.8 0.0

CPI Inflation (annual average; %) 2.8 2.4 -0.4

Goods Exports (US$ mn) 390.8 365.1 -25.7

Goods Imports (US$ mn) 1,190.5 1,252 61.5

Trade Balance (US$ mn) -799.7 -886.9 -87.2

Current Account Balance (US$ mn) -533 -528.2 4.8

Foreign Exchange Reserves

(US$ mn)

808 784 -24.0

Total External Debt (US$ bn) 3.7 3.4 -0.3

Debt Service Ratio, paid (%) 17.1 15.8 -1.3

Exchange Rate (NUSh/US$) 1,644.5 1,755.7 111.2

Uganda has achieved significant GDP growth,

averaging 7 percent over the last decade. Economic

growth in 2001 was driven by the

telecommunications and construction sectors, which

compensated for the lower coffee and higher

petroleum prices. Agriculture is the dominant sector

in the economy, and in 2001 it accounted for more

than 40 percent of GDP and employed approximately

80 percent of the population. Almost half of the

sector was subsistence farming. Coffee was the

main export crop. In mid-2001, the government

instituted a cocoa development program, and cocoa

production has subsequently increased. Government

policy focused on liberalization and structural reform,

such as reducing public expenditure, funding road

improvements, and extending agricultural services

and rural sector financing. Donors financed more

than 50 percent of the government’s 2001 budget.

The government’s tight monetary policy has reduced

inflation rates, which have averaged 4.3 percent

since 1996. In mid-2002, the World Bank approved

a $250 million zero-interest loan to help reduce

poverty. In May 2002, as part of the HIPC initiative,

the United States forgave the remainder of Uganda’s

debt owed to the United States. International donors

have, however, continued to express concerns over

reported levels of corruption and the lack of

governance transparency.

Origins of GDP (2000)

Economic Profile

Real GDP Growth Rate

UGANDA

Commerce

(13%)

Manufacturing

(9%)

Others

(12%)

Agriculture

(42%)

Government & community

services (16%)

Construction

(8%)

0

1

2

3

4

5

6

7

8

1997 1998 1999 2000 2001

Percent
262

Main Trade Partners, percent of total, 2000

Markets Sources

Germany 12.0% Kenya 41.0%

Netherlands 10.2% UK 7.6%

United States 8.7% India 6.8%

Spain 8.0% South Africa 6.5%

Main Trade Commodities, US$ million, 2000

Exports Imports

Coffee 162 Machinery

including

electrical

171

Tea 50 Petroleum 121

Gold 35 Road vehicles 97

Cotton 13 Medical &

pharmaceuticals

74

Trade Profile

Exports were dominated by agricultural products, and

imports were primarily manufactured products.

Although coffee was a substantial export product,

Uganda continued to diversify away from coffee into

nontraditional exports. Foreign earnings from coffee

fell in 2001, while fish, cotton, gold, and other

nontraditional exports steadily increased. The Ugandan

government has been emphasizing private sector use

of AGOA, especially in the textile and apparel sectors.

Uganda traditionally has a trade deficit, requiring

donor assistance to help fund its import bill.

In 2001, U.S. exports to Uganda consisted primarily

of electrical machinery and equipment, and machinery

and mechanical appliances; and U.S. imports from

Uganda consisted primarily of coffee, tea, mate, and

spices. In addition, Uganda has been designated a

beneficiary country under AGOA including the apparel

provision. AGOA (including GSP) imports from Uganda

totaled $141,000 in 2001.

Investment and Privatization Profile

Uganda attracted diverse investment, ranging from

agro-processing to textile manufacturing to gold

mining. Uganda is a relatively attractive destination for

investment into SSA, because of prudent monetary

policy, international donor support, stable political

environment, and government investment initiatives.

The Uganda Investment Authority estimated that

foreign investment into Uganda in 1999-2000 was

$214 million, representing 123 projects. The last two

years have experienced substantial investment in the

beverage industry by companies such as Coca-Cola,

Pepsi, South African Breweries, and Guinness.

Of the 146 state-owned businesses slated for

privatization, Uganda has privatized 108 thus far. The

remaining 38 firms were primarily utilities and

transport companies, such as electricity, water, and

railway parastatals, which accounted for substantial

employment, a large portion of GDP, and a substantial

portion of government expenditures. The government

plans to sell the remaining 38 firms over the next 2

years, although asset stripping and lack of

transparency have reportedly marred the process. As

of mid-2002, the government was negotiating with

Conrail (Canada) to act as technical advisor for the

concessioning of the state-owned Uganda Railways

Corporation (URC). The government plans to divide

URC into an operating company and an asset-holding

company. The operating company is expected to be

concessioned to a private firm.

-10

0

10

20

30

40

50

1997 1998 1999 2000 2001

uganda

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

100

150

200

250

1996 1997 1998 1999 2000

Millions of U.S. Dollars

Key Investment and Privatization Sectors

S Agriculture (cotton, cocoa, coffee)

S Light manufacturing (textiles, beverages)
263

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, ZK bn) 11 13.5 2.5

GDP (US$ bn) 3.5 3.7 0.2

CPI Inflation (annual average; %) 26 21.4 -4.6

Goods Exports (US$ mn) 746 871 125.0

Goods Imports (US$ mn) 978 1253 275.0

Trade Balance (US$ mn) -232 -382 -150.0

Current Account Balance (US$ mn) -417 -523 -106.0

Foreign Exchange Reserves

(US$ mn)

244.8 195 -49.8

Total External Debt (US$ bn) 5.7 6.1 0.4

Debt Service Ratio, paid (%) 21.2 40.5 19.3

Exchange Rate (ZK/US$) 3,110.8 3,610.9 500.1

Most of the Zambian population relies on the

agriculture sector, which accounted for over one-fifth

of GDP in 2001. Production of cotton, tobacco,

vegetables, and flowers experienced growth in recent

years, although only 20 percent of Zambia’s land is

cultivated. Zambia’s economy was driven by the

copper and cobalt mines, which accounted for more

than 80 percent of foreign exchange earnings.

Zambia also produced lead and zinc. The

manufacturing sector was constrained by insufficient

access to credit, high utility costs, high duties on

manufacturing inputs, local currency fluctuations,

and regional instability. Anglo-American’s decision in

early-2002 to close unprofitable copper mines in

Zambia placed numerous jobs and a large

percentage of foreign exchange earnings at risk. The

World Bank and the Zambian government drew up

plans to address Anglo-American’s decision to

withdraw from Zambia, which included efforts to

accelerate diversification efforts and to make other

copper mines commercially viable.

In July 2002, the government identified agriculture,

tourism, industry, and mining as key sectors for

economic development and government focus.

Government reforms included removing price

controls, reducing tariffs, cutting subsidies to

parastatals, withdrawing from the maize market,

privatizing state-owned companies, and removing

currency controls. Tight monetary and fiscal policies

have resulted in an improvement in the country’s

balance of payments, which has also helped restore

investor confidence.

The privatization of Zambia Consolidated Copper

Mine in 2000 improved Zambia’s prospects for

international debt relief because the government was

no longer responsible for the substantial losses the

company incurred. The government remained

committed to developing a final PRSP. In May 2002,

the IMF approved $317 million to finance Zambia’s

2002 poverty reduction plan, of which $150 million

represented HIPC initiative financing. Donors have,

however, expressed concerns regarding governance

issues.

Origins of GDP (2001)

Economic Profile

Real GDP Growth Rate

ZAMBIA

Manufacturing

(11%)

Electricity, gas & water

(3%)

Government & other services

(58%)

Construction

(5%)

Agriculture

(16%)

Mining

(7%)

-3

-2

-1

0

1

2

3

4

5

1997 1998 1999 2000 2001

Percent
264

Main Trade Partners, percent of total, 2000

Markets Sources

UK 25.2% South Africa 67.1%

South Africa 24.5% UK 9.8%

Switzerland 9.4% Zimbabwe 7.5%

Malawi 7.5% United States 5.0%

Main Trade Commodities, US$ million, 2001

Exports Imports

Copper 500 Metals 312

Cobalt 90

-30

-20

-10

0

10

20

30

40

50

60

70

1997 1998 1999 2000 2001

zambia

Trade Profile

Primary commodities, especially copper, continued to

represent a large portion of Zambia’s exports. The

government has made efforts to diversify trade and to

promote nontraditional exports, such as electricity,

sugar, cement, horticulture, and floriculture. In 2001,

Zambia earned more than $300 million from

nontraditional exports, such as flowers, cotton,

processed food, coffee, tobacco, honey, beeswax, and

fresh vegetables. Because of the social unrest in

Zimbabwe, which represents Zambia’s major transit

route for imports and exports, trade has been

diverted, and consequently, has suffered from

increase transport costs. In 2001, U.S. exports to

Zambia consisted primarily of machinery and

mechanical appliances; and U.S. imports from Zambia

consisted primarily of base metals. In addition, Zambia

has been designated a beneficiary country under

AGOA, including the apparel provision. AGOA (including

GSP) imports from Zambia totaled $775,000 in

2001.

Investment and Privatization Profile

Zambia has an investor-friendly environment. For

example, companies enjoy legal rights and,

traditionally, the courts have upheld contracts for U.S.

companies. Capital is not restricted from leaving or

entering the country, and one can hold bank accounts

in either local or foreign currency.

By July 2001, 258 of the 280 companies slated for

privatization had been sold. Zambia has earned more

than $455 million from these sales. Remaining

companies were primarily in the utilities and energy

sectors, such as Zambia Electric Supply Company,

Tanzania-Zambia Pipeline, and the Zambia National Oil

Company. The government continued its plans to

privatize Zesco, the electric parastatal, by determining

the appropriate legal framework for the privatization

process. In 2001, the government also announced

plans to privatize the Indeni petroleum refinery, which

has operated below full capacity since December

2000. In October 2001, the government confirmed

plans to sell a 35 percent stake in the Zambia

National Commercial Bank with management rights,

and in May 2002 announced that 51 percent of the

bank would be offered to international investors.

U.S. Trade Balance

Millions of U.S. Dollars U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

0

25

50

75

100

125

150

175

200

225

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Minerals and mining

S Light manufacturing
265

Economic Overview

Economic Indicators

2000 2001 Difference

GDP (nominal, Z$ bn) 317.8 507.8 190.0

GDP (US$ bn) 7.2 9.2 2.0

CPI Inflation (annual average; %) 55.7 74.5 18.8

Goods Exports (US$ mn) 2,138.7 1,757.1 -381.6

Goods Imports (US$ mn) 1,507.5 1,472.3 -35.2

Trade Balance (US$ mn) 631.2 284.8 -346.4

Current Account Balance (US$ mn) 39.9 149.9 110.0

Foreign Exchange Reserves

(US$ mn)

193.1 64.7 -128.4

Total External Debt (US$ bn) 5.1 5.5 0.4

Debt Service Ratio, paid (%) 22.6 21.5 -1.1

Exchange Rate (Z$/US$) 44.4 55.1 10.7

Zimbabwe’s economic contraction has resulted in

near famine for a large percentage of the population,

in 2001. Until recently, Zimbabwe’s economy could

boast of activity in a variety of sectors, including cash

crops (tobacco, cotton, sugarcane), food crops

(maize, wheat, soy, meats), mining (gold, chrome,

nickel), and light manufacturing (chemicals, metals,

food and mineral processing). Historically, about 70

percent of the labor force was employed in

agriculture, but Zimbabwe also has a well-educated

workforce that can support world-class business

services. In 2001, commercial agriculture was

concentrated in 4,400 farms that covered about 30

percent of Zimbabwe’s land area.

Political pressure on the government in the late

1990s led to its support of land and property

seizures by “war veterans.” While the government

has stated its intent to reform land policy for years,

the seizures have reportedly taken place with little

regard for law and with no clear organization. With

farm workers terrorized, management disrupted,

and new settlers having little training in farming,

production of food crops (especially maize) and

crucial cash crops (tobacco) have declined. In

addition to the land reform disputes, Zimbabwe’s

economic crisis has stemmed from large

government deficits and droughts.

The Zimbabwean government has responded to the

economic crisis by financing growing deficits resulting

in inflation, by holding the exchange rate at an

overvalued rate, and by fixing prices for staple goods

and some manufactured products. Inflation grew to

more than 100 percent in 2002. Tobacco producers

have been forced to export tobacco at a loss,

because of exchange rate controls, endangering

future tobacco production. In addition, severe

shortages of staple products have developed as price

controls went into effect in 2002. In this previously

self-sufficient country, between 600,000 and 6

million Zimbabweans are in imminent danger of

famine. International donor agencies have been

reluctant to work with the current government.

Zimbabwe is in arrears with the IMF and other

international creditors, making further loans unlikely

without political changes.

Origins of GDP (1999)

Economic Profile

Real GDP Growth Rate

ZIMBABWE

Transport & communications

(6%)

Manufacturing

(17%)

Others

(29%)

Agriculture, hunting & fishing

(20%)

Mining & quarrying

(2%)

Distribution, hotels & resturants

(19%)

Education

(7%)

-10

-8

-6

-4

-2

0

2

4

1997 1998 1999 2000 2001

Percent
266

Main Trade Partners, percent of total, 2000

Markets Sources

South Africa 13.1% South Africa 41.8%

UK 9.3% UK 7.1%

Japan 8.4% Mozambique 3.9%

Germany 6.5% United States 3.2%

Main Trade Commodities, US$ million

Exports (2000) Imports (1999)

Tobacco 547 Machinery &

transport

equipment

439

Gold 284 Manufactures 252

Ferro-alloys 124 Chemicals 250

Nickel 78 Petroleum

products &

electricty

167

-90

-60

-30

0

30

60

90

120

150

180

1997 1998 1999 2000 2001

zimbabwe

Trade Profile

For trade, landlocked Zimbabwe relies principally on

South African ports and the Beira corridor and port in

Mozambique, the latter of which has been upgraded

and has a relatively important role in Zimbabwean

trade. Until recently, Zimbabwe exported minerals,

cash crops, surplus food crops, and some

manufactured goods. With the recent food crisis,

however, Zimbabwe has been importing foods products

(such as maize) it previously exported. Zimbabwe

traditionally has imported machinery, fuel, and

chemicals, and is currently dependent on the South

African producer Eskom for electricity. In the

agricultural sector, the land seizures have reduced

exports of cash crops and surplus food crops. In the

mining and manufacturing sectors, imports of crucial

raw materials have also fallen because of the foreign

currency shortage. In turn, the lower raw material

imports have reduced production and exports in these

sectors.

While the mid-1990s were a period of reduced trade

barriers, the late 1990s and early 2000s have seen

higher tariffs and more trade controls. In March 2001,

tariffs were raised on imported processed goods that

were also domestically produced. In 2001, U.S.

exports to Zimbabwe consisted primarily of machinery

and mechanical appliances; and U.S. imports from

Zimbabwe consisted primarily of iron and steel,

tobacco, and apparel and clothing. Zimbabwe is not

designated an AGOA-beneficiary country.

Investment and Privatization Profile

Until recently, Zimbabwe’s well-educated workforce and

independent judiciary contributed to its reputation as a

stable investment destination. The recent social turmoil

has reversed much of that reputation. Foreign direct

investment peaked at $36 million in 1998, and fell to

$5.4 million in 2001. Foreign investment is handled by

the Zimbabwe Investment Center, and a policy priority

is majority participation by Zimbabweans. Foreign

businesses have reportedly complained of corruption,

delays, and a lack of transparency for investment

dealings. Zimbabwe allows foreign investment in its

stock market, however, foreign ownership is restricted

to less than 40 percent. Zimbabwe has run export

processing zones since 1996, but the current social

unrest has resulted in the closure of approximately half

of the 105 ventures.

Privatization is handled by the Privatization Agency of

Zimbabwe. As of mid-2002, only five parastatals have

been privatized. The funds raised from privatization

have been below expectations, because of heavy debt

and the current economic turmoil. One of the

government’s privatization priorities has been

“indigenization,” meaning selling the parastatals to

indigenous Zimbabweans, whether in country or

abroad.

U.S. Trade Balance

Millions of U.S. Dollars

U.S. exports

U.S. imports

Trade balance

Net Foreign Direct Investment

Millions of U.S. Dollars

0

100

200

300

400

500

1996 1997 1998 1999 2000

Key Investment and Privatization Sectors

S Minerals and mining
APPENDIX A

Request Letters From the U.S. Trade

Representative
268
269
270
271
272
APPENDIX B

Trade Data
274
275

Table B-1

U.S. exports, imports, and trade balance, with sub-Saharan Africa, 1997-2001

(1,000 dollars)

Country 1997 1998 1999 2000 2001

Angola:

Exports . . . . . . . . . . . . . . . . 279,110 351,603 251,381 224,914 274,794

Imports . . . . . . . . . . . . . . . 2,924,528 2,225,141 2,348,606 3,343,375 2,775,670

Trade Balance . . . . . . . . . . -2,645,418 -1,873,538 -2,097,225 -3,118,461 -2,500,875

Benin:

Exports . . . . . . . . . . . . . . . . 51,171 43,286 30,956 26,281 31,732

Imports . . . . . . . . . . . . . . . 8,080 3,604 17,830 2,237 1,286

Trade Balance . . . . . . . . . 43,091 39,683 13,126 24,044 30,445

Botswana:

Exports . . . . . . . . . . . . . . . . 42,937 35,499 33,399 31,165 43,017

Imports . . . . . . . . . . . . . . . 24,540 19,691 16,940 40,510 21,118

Trade Balance . . . . . . . . . 18,397 15,808 16,460 -9,344 21,900

Burkina Faso:

Exports . . . . . . . . . . . . . . . . 17,945 16,073 10,887 15,670 4,432

Imports . . . . . . . . . . . . . . . 994 603 2,771 2,446 5,001

Trade Balance . . . . . . . . . 16,951 15,469 8,116 13,223 -569

Burundi:

Exports . . . . . . . . . . . . . . . . 543 4,475 2,266 1,668 5,296

Imports . . . . . . . . . . . . . . . 13,812 8,274 7,004 7,995 2,789

Trade Balance . . . . . . . . . -13,269 -3,799 -4,737 -6,327 2,507

Cameroon:

Exports . . . . . . . . . . . . . . . . 121,555 74,833 36,724 58,963 184,054

Imports . . . . . . . . . . . . . . . 57,185 53,339 76,573 145,820 101,627

Trade Balance . . . . . . . . . 64,370 21,494 -39,849 -86,857 82,427

Cape Verde:

Exports . . . . . . . . . . . . . . . . 9,625 9,230 7,234 7,137 7,467

Imports . . . . . . . . . . . . . . . 496 171 76 4,214 1,496

Trade Balance . . . . . . . . . . 9,129 9,059 7,158 2,923 5,971

Cen African Rep:

Exports . . . . . . . . . . . . . . . . 3,624 4,421 3,727 1,753 3,671

Imports . . . . . . . . . . . . . . . 1,350 2,798 2,896 2,904 2,364

Trade Balance . . . . . . . . . . 2,274 1,623 831 -1,151 1,307

Chad:

Exports . . . . . . . . . . . . . . . . 3,098 3,421 2,684 10,780 136,467

Imports . . . . . . . . . . . . . . . 2,862 7,311 6,911 4,780 5,653

Trade Balance . . . . . . . . . 236 -3,890 -4,227 5,999 130,814

Comoros:

Exports . . . . . . . . . . . . . . . . 74 613 243 699 1,372

Imports . . . . . . . . . . . . . . . 2,565 822 2,051 3,513 10,568

Trade Balance . . . . . . . . . -2,491 -209 -1,808 -2,814 -9,196

Congo -DROC:

Exports . . . . . . . . . . . . . . . . 37,585 34,008 21,034 9,982 18,508

Imports . . . . . . . . . . . . . . . 263,363 170,874 231,913 212,239 147,713

Trade Balance . . . . . . . . . -225,778 -136,866 -210,879 -202,257 -129,205

Congo -ROC:

Exports . . . . . . . . . . . . . . . . 75,256 91,317 46,824 81,200 89,344

Imports . . . . . . . . . . . . . . . 460,762 314,725 410,518 507,943 457,901

Trade Balance . . . . . . . . . . -385,506 -223,408 -363,695 -426,743 -368,557
276

Table B-1—Continued

U.S. exports, imports, and trade balance, with sub-Saharan Africa, 1997-2001

(1,000 dollars)

Country 1997 1998 1999 2000 2001

Cote d’Ivoire:

Exports . . . . . . . . . . . . . . . . 149,743 150,170 98,882 92,046 93,441

Imports . . . . . . . . . . . . . . . 285,590 423,341 343,487 367,002 319,823

Trade Balance . . . . . . . . . -135,847 -273,170 -244,605 -274,957 -226,382

Djibouti:

Exports . . . . . . . . . . . . . . . . 7,272 20,041 26,555 16,609 18,573

Imports . . . . . . . . . . . . . . . . 0 530 110 419 951

Trade Balance . . . . . . . . . . 7,271 19,511 26,445 16,190 17,623

Eq Guinea:

Exports . . . . . . . . . . . . . . . . 47,063 85,171 221,050 94,673 79,558

Imports . . . . . . . . . . . . . . . 30,485 65,667 40,601 154,717 395,609

Trade Balance . . . . . . . . . 16,578 19,505 180,449 -60,044 -316,051

Eritrea:

Exports . . . . . . . . . . . . . . . . 15,766 24,502 3,698 16,236 21,429

Imports . . . . . . . . . . . . . . . 1,294 736 480 203 89

Trade Balance . . . . . . . . . 14,472 23,766 3,218 16,033 21,340

Ethiopia:

Exports . . . . . . . . . . . . . . . . 120,292 87,900 164,297 165,016 60,659

Imports . . . . . . . . . . . . . . . 69,651 52,278 30,211 28,660 29,041

Trade Balance . . . . . . . . . 50,641 35,622 134,086 136,356 31,618

Gabon:

Exports . . . . . . . . . . . . . . . . 81,023 61,688 44,967 63,270 74,089

Imports . . . . . . . . . . . . . . . 2,022,275 1,130,273 1,512,945 2,037,921 1,731,671

Trade Balance . . . . . . . . . -1,941,251 -1,068,586 -1,467,978 -1,974,651 -1,657,582

Gambia:

Exports . . . . . . . . . . . . . . . . 9,517 9,104 9,496 8,867 8,164

Imports . . . . . . . . . . . . . . . 3,516 2,617 186 342 232

Trade Balance . . . . . . . . . 6,002 6,487 9,310 8,525 7,931

Ghana: 312,801 221,212 231,045 178,712 179,473

Exports . . . . . . . . . . . . . . . . 154,069 143,858 209,330 206,431 185,391

Imports . . . . . . . . . . . . . . . 158,732 77,354 21,715 -27,719 -5,918

Trade Balance . . . . . . . . .

Guinea: 82,081 64,692 53,435 66,810 77,619

Exports . . . . . . . . . . . . . . . . 127,671 115,574 115,411 88,363 87,832

Imports . . . . . . . . . . . . . . . -45,591 -50,882 -61,975 -21,553 -10,213

Trade Balance . . . . . . . . .

Guinea-Bissau: 2,488 743 816 284 870

Exports . . . . . . . . . . . . . . . . 71 2,209 72 42 19

Imports . . . . . . . . . . . . . . . 2,417 -1,466 744 242 851

Trade Balance . . . . . . . . .

Kenya: 222,834 197,744 187,089 235,413 573,819

Exports . . . . . . . . . . . . . . . . 114,347 99,523 106,144 109,394 128,582

Imports . . . . . . . . . . . . . . . 108,487 98,221 80,946 126,019 445,237

Trade Balance . . . . . . . . .

Lesotho: 2,370 1,437 733 837 817

Exports . . . . . . . . . . . . . . . . 86,605 100,244 110,814 140,150 217,165

Imports . . . . . . . . . . . . . . . -84,235 -98,807 -110,081 -139,313 -216,348

Trade Balance . . . . . . . . .
277

Table B-1—Continued

U.S. exports, imports, and trade balance, with sub-Saharan Africa, 1997-2001

(1,000 dollars)

Country 1997 1998 1999 2000 2001

Liberia

Exports . . . . . . . . . . . . . . . . 42,686 49,840 44,585 42,397 36,807

Imports . . . . . . . . . . . . . . . 4,852 25,845 30,523 45,408 42,558

Trade Balance . . . . . . . . . 37,835 23,995 14,062 -3,011 -5,751

Madagascar

Exports . . . . . . . . . . . . . . . . 11,219 14,491 106,056 15,397 20,947

Imports . . . . . . . . . . . . . . . 62,489 71,395 80,214 157,737 271,791

Trade Balance . . . . . . . . . -51,270 -56,904 25,843 -142,340 -250,844

Malawi

Exports . . . . . . . . . . . . . . . . 17,520 13,071 7,356 13,627 14,334

Imports . . . . . . . . . . . . . . . 89,403 38,757 58,604 68,126 71,800

Trade Balance . . . . . . . . . -71,884 -25,685 -51,249 -54,499 -57,466

Mali

Exports . . . . . . . . . . . . . . . . 25,956 24,846 28,586 29,740 31,818

Imports . . . . . . . . . . . . . . . . 3,806 3,348 8,867 8,438 6,205

Trade Balance . . . . . . . . . 22,151 21,498 19,719 21,302 25,613

Mauritania:

Exports . . . . . . . . . . . . . . . . 20,841 19,206 23,597 15,866 25,126

Imports . . . . . . . . . . . . . . . 241 393 754 354 294

Trade Balance . . . . . . . . . 20,600 18,813 22,843 15,511 24,832

Mauritius:

Exports . . . . . . . . . . . . . . . . 26,165 19,101 32,103 15,448 22,022

Imports . . . . . . . . . . . . . . . 235,384 266,960 258,343 286,008 275,127

Trade Balance . . . . . . . . . -209,219 -247,859 -226,240 -270,560 -253,105

Mozambique:

Exports . . . . . . . . . . . . . . . . 45,662 45,687 33,847 57,913 28,327

Imports . . . . . . . . . . . . . . . 29,631 25,750 10,287 24,377 7,060

Trade Balance . . . . . . . . . 16,030 19,937 23,561 33,536 21,267

Namibia:

Exports . . . . . . . . . . . . . . . . 25,058 49,857 194,822 78,448 249,334

Imports . . . . . . . . . . . . . . . 62,338 51,676 29,984 42,191 37,845

Trade Balance . . . . . . . . . -37,280 -1,819 164,838 36,256 211,490

Niger:

Exports . . . . . . . . . . . . . . . . 24,889 17,895 18,394 35,671 62,886

Imports . . . . . . . . . . . . . . . 7,513 1,731 4,837 6,972 1,427

Trade Balance . . . . . . . . . 17,376 16,164 13,558 28,699 61,460

Nigeria:

Exports . . . . . . . . . . . . . . . . 810,947 814,126 624,161 712,600 947,614

Imports . . . . . . . . . . . . . . . 6,000,201 4,603,620 4,172,322 9,680,128 8,916,476

Trade Balance . . . . . . . . . -5,189,254 -3,789,494 -3,548,160 -8,967,528 -7,968,862

Rwanda:

Exports . . . . . . . . . . . . . . . . 34,971 21,754 47,490 18,922 17,386

Imports . . . . . . . . . . . . . . . 3,895 4,031 3,686 5,061 7,221

Trade Balance . . . . . . . . . 31,076 17,723 43,804 13,860 10,165

São Tomé & Prin:

Exports . . . . . . . . . . . . . . . . 12,942 9,380 510 962 10,614

Imports . . . . . . . . . . . . . . . 221 682 2,693 513 322

Trade Balance . . . . . . . . . 12,721 8,698 -2,183 449 10,291
278

Table B-1—Continued

U.S. exports, imports, and trade balance, with sub-Saharan Africa, 1997-2001

(1,000 dollars)

Country 1997 1998 1999 2000 2001

Senegal:

Exports . . . . . . . . . . . . . . . . 51,343 58,917 62,808 80,183 78,334

Imports . . . . . . . . . . . . . . . 6,627 5,181 17,473 4,231 102,345

Trade Balance . . . . . . . . . 44,717 53,735 45,335 75,952 -24,010

Seychelles:

Exports . . . . . . . . . . . . . . . . 6,010 9,397 7,547 6,971 175,959

Imports . . . . . . . . . . . . . . . 2,339 2,184 5,197 8,097 23,701

Trade Balance . . . . . . . . . 3,672 7,212 2,350 -1,126 152,259

Sierra Leone:

Exports . . . . . . . . . . . . . . . . 15,706 23,441 12,985 17,791 27,791

Imports . . . . . . . . . . . . . . . 18,367 12,274 10,335 3,806 4,640

Trade Balance . . . . . . . . . -2,662 11,167 2,650 13,985 23,150

Somalia:

Exports . . . . . . . . . . . . . . . . 2,756 2,574 2,813 4,862 6,591

Imports . . . . . . . . . . . . . . . 311 704 192 443 343

Trade Balance . . . . . . . . . 2,445 1,870 2,621 4,419 6,248

South Africa:

Exports . . . . . . . . . . . . . . . . 2,926,396 3,494,594 2,393,998 2,829,546 2,822,354

Imports . . . . . . . . . . . . . . . 2,495,463 3,053,323 3,192,768 4,203,657 4,429,539

Trade Balance . . . . . . . . . 430,934 441,272 -798,770 -1,374,111 -1,607,186

Sudan:

Exports . . . . . . . . . . . . . . . . 37,155 6,790 8,821 16,882 17,119

Imports . . . . . . . . . . . . . . . 12,109 3,090 57 1,808 3,385

Trade Balance . . . . . . . . . 25,046 3,700 8,764 15,074 13,734

Swaziland:

Exports . . . . . . . . . . . . . . . . 4,182 8,186 3,748 7,741 7,438

Imports . . . . . . . . . . . . . . . 43,975 24,973 37,849 52,577 65,036

Trade Balance . . . . . . . . . . -39,793 -16,787 -34,102 -44,836 -57,598

Tanzania:

Exports . . . . . . . . . . . . . . . . 63,468 66,619 60,682 44,548 63,741

Imports . . . . . . . . . . . . . . . . 26,935 31,568 34,495 35,288 27,229

Trade Balance . . . . . . . . . . 36,533 35,050 26,187 9,261 36,511

Togo:

Exports . . . . . . . . . . . . . . . . 25,142 25,310 25,620 10,480 16,154

Imports . . . . . . . . . . . . . . . 5,488 1,950 3,170 5,975 12,583

Trade Balance . . . . . . . . . 19,654 23,360 22,450 4,505 3,571

Uganda:

Exports . . . . . . . . . . . . . . . . 35,122 27,685 24,518 26,766 32,150

Imports . . . . . . . . . . . . . . . 37,713 15,154 20,256 29,064 17,835

Trade Balance . . . . . . . . . -2,591 12,531 4,263 -2,298 14,315

Zambia:

Exports . . . . . . . . . . . . . . . . 28,645 21,435 19,700 18,770 15,487

Imports . . . . . . . . . . . . . . . 55,904 47,170 37,857 17,727 15,584

Trade Balance . . . . . . . . . -27,259 -25,735 -18,157 1,043 -97

Zimbabwe:

Exports . . . . . . . . . . . . . . . . 78,876 83,865 57,525 52,773 31,166

Imports . . . . . . . . . . . . . . . 134,447 123,198 135,073 113,043 90,560

Trade Balance . . . . . . . . . -55,572 -39,333 -77,547 -60,270 -59,394

Source: Compiled from official statistics of the U.S. Department of Commerce.
279

Table B-2

Angola: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 27,917 28,255 23,083 54,767 27,960 -48.9 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 9,959 14,385 10,398 5,823 15,110 159.5 .................

Imports 129,742 54,901 18,103 10,431 250 -97.6 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 20,633 23,197 17,997 27,177 14,605 -46.3 .................

Imports 11 8 18 109 480 339.0 .................

AGOA/GSP Imports 11 8 - - 364 - ......

Energy-related products:

Exports 2,044 1,265 1,318 1,126 1,453 29.0 .................

Imports 2,788,572 2,165,827 2,319,748 3,321,320 2,768,666 -16.6 .................

AGOA/GSP Imports 668,113 1,571,319 2,008,608 2,843,469 2,510,654 -11.7 ......

Footwear:

Exports 479 465 279 336 174 -48.4 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 2,747 1,268 4,706 1,873 924 -50.7 .................

Imports - - 15 - - - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 59,505 57,151 41,666 33,019 36,130 9.4 .................

Imports - - - 6 77 1139.2 .................

AGOA/GSP Imports - - - 3 3 10.9 ......

Minerals and metals:

Exports 17,957 50,040 16,705 11,265 20,004 77.6 .................

Imports 462 228 9,286 6,929 - -100.0 .................

AGOA/GSP Imports - - - 205 - -100.0 ......

Miscellaneous manufactures:

Exports 2,491 4,934 883 690 983 42.5 .................

Imports 1,601 35 206 58 329 468.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 6,781 6,653 4,634 6,079 5,406 -11.1 .................

Imports 4,138 4,142 1,162 4,489 5,865 30.6 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 9,077 6,660 2,758 4,182 4,402 5.3 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 119,520 157,331 126,952 78,576 147,643 87.9 .................

Imports 2 2 68 32 3 -91.7 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 279,110 351,603 251,381 224,914 274,794 22.2 .................

Imports 2,924,528 2,225,141 2,348,606 3,343,375 2,775,670 -17.0 .................

AGOA/GSP Imports 668,124 1,571,326 2,008,608 2,843,677 2,511,022 -11.7 ......
280

Table B-2—Continued

Benin: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 5,631 6,473 2,322 3,949 4,488 13.7 .................

Imports 627 2,498 15,269 597 707 18.4 .................

AGOA/GSP Imports - 1,944 9,572 - - - ......

Chemicals and related products:

Exports 1,068 1,333 4,635 3,626 3,041 -16.1 .................

Imports 340 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 630 2,066 1,288 2,231 6,696 200.1 .................

Imports 58 22 - 5 - -100.0 .................

AGOA/GSP Imports - 19 - - - - ......

Energy-related products:

Exports 9 125 9 - 48 - .................

Imports 6,251 - 2,106 1,410 - -100.0 .................

AGOA/GSP Imports 3,354 - 2,106 1,410 - -100.0 ......

Footwear:

Exports 180 73 60 93 86 -7.2 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 73 395 95 378 96 -74.6 .................

Imports 75 340 140 142 266 88.1 .................

AGOA/GSP Imports 75 306 111 - 178 - ......

Machinery:

Exports 12,868 3,860 2,747 1,555 1,216 -21.8 .................

Imports 3 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 2,182 45 112 140 4,835 3365.7 .................

Imports 26 - 176 4 - -100.0 .................

AGOA/GSP Imports 6 - - 4 - -100.0 ......

Miscellaneous manufactures:

Exports 1,092 36 683 178 173 -2.9 .................

Imports 638 123 29 24 23 -3.1 .................

AGOA/GSP Imports 2 - - - - - ......

Special provisions:

Exports 1,839 1,801 1,360 1,143 482 -57.9 .................

Imports 4 380 18 51 258 406.1 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 18,467 16,733 14,172 11,122 7,392 -33.5 .................

Imports 58 240 92 5 32 606.3 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 7,132 10,346 3,474 1,866 3,177 70.3 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 51,171 43,286 30,956 26,281 31,732 20.7 .................

Imports 8,080 3,604 17,830 2,237 1,286 -42.5 .................

AGOA/GSP Imports 3,437 2,269 11,788 1,414 178 -87.4 ......
281

Table B-2—Continued

Botswana: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

-1,000 dollars

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 3,092 674 1,345 1,301 1,026 -21.2 .................

Imports 91 25 12 29 122 313.4 .................

AGOA/GSP Imports 33 2 10 28 19 -31.0 ......

Chemicals and related products:

Exports 302 82 292 431 701 62.7 .................

Imports - - - - 2 - .................

AGOA/GSP Imports - - - - 2 - ......

Electronic products:

Exports 2,050 4,759 3,412 6,895 6,944 0.7 .................

Imports - 10 17 8 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 9 5 - 10 - -100.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - 5 - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 371 196 155 824 1,157 40.4 .................

Imports 22 30 14 10 11 2.2 .................

AGOA/GSP Imports 22 30 11 5 - -100.0 ......

Machinery:

Exports 329 523 962 262 472 80.3 .................

Imports 102 - 3 272 76 -72.0 .................

AGOA/GSP Imports - - - - 8 - ......

Minerals and metals:

Exports 1,911 1,323 346 614 459 -25.3 .................

Imports 11,133 3,262 1, ................. 337 1,201 15,580 1197.5

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 92 232 23 309 141 -54.4 .................

Imports 5,871 5,630 5,295 2,980 1,742 -41.6 .................

AGOA/GSP Imports 5,827 5,628 4,804 2,889 1,191 -58.8 ......

Special provisions:

Exports 21,129 17,561 13,163 14,940 18,297 22.5 .................

Imports 235 578 498 28,068 649 -97.7 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 196 2,972 156 378 53 -85.9 .................

Imports 7,080 10,151 9,763 7,941 2,936 -63.0 .................

AGOA/GSP Imports - - - 0 - -100.0 ......

Transportation equipment:

Exports 13,457 7,173 13,545 5,200 13,766 164.7 .................

Imports 7 - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 42,937 35,499 33,399 31,165 43,017 38.0 .................

Imports 24,540 19,691 16,940 40,510 21,118 -47.9 .................

AGOA/GSP Imports 5,882 5,660 4,824 2,922 1,221 -58.2 ......
282

Table B-2—Continued

Burkina Faso: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 6,253 9,125 6,006 5,025 1,427 -71.6 .................

Imports - - 2,455 1,839 79 -95.7 .................

AGOA/GSP Imports - - - 1,839 8 -99.6 ......

Chemicals and related products:

Exports 296 365 81 114 51 -55.7 .................

Imports - - 1 32 4 -85.5 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 2,974 707 634 656 849 29.4 .................

Imports 37 2 - 4 3 -20.5 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - - 46 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - 66 - -100.0 .................

Imports - - - 1 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 144 - 133 192 130 -32.0 .................

Imports 23 57 17 112 41 -63.3 .................

AGOA/GSP Imports 22 40 17 96 33 -65.2 ......

Machinery:

Exports 2,701 2,784 518 659 171 -74.1 .................

Imports 10 264 - 2 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 14 31 12 37 447 1119.6 .................

Imports 15 39 5 58 13 -78.2 .................

AGOA/GSP Imports 15 24 5 3 - -100.0 ......

Miscellaneous manufactures:

Exports 84 59 31 41 143 252.3 .................

Imports 343 172 246 273 120 -56.0 .................

AGOA/GSP Imports 15 25 47 24 50 103.8 ......

Special provisions:

Exports 2,170 700 482 662 343 -48.2 .................

Imports 326 50 13 86 4,731 5423.4 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,726 2,166 2,871 1,821 706 -61.2 .................

Imports 240 19 34 39 9 -76.5 .................

AGOA/GSP Imports 12 6 7 8 3 -64.9 ......

Transportation equipment:

Exports 585 136 120 6,397 121 -98.1 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 17,945 16,073 10,887 15,670 4,432 -71.7 .................

Imports 994 603 2,771 2,446 5,001 104.4 .................

AGOA/GSP Imports 64 95 76 1,970 94 -95.2 ......
283

Table B-2—Continued

Burundi: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports - 3,181 400 86 2,650 2997.9 .................

Imports 13,772 6,320 5,913 7,791 2,454 -68.5 .................

AGOA/GSP Imports - - 7 - - - ......

Chemicals and related products:

Exports 8 42 86 89 60 -32.9 .................

Imports - 91 35 29 - -100.0 .................

AGOA/GSP Imports - 91 - - - - ......

Electronic products:

Exports 315 185 293 315 377 19.5 .................

Imports 7 2 5 48 57 19.7 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - - 17 - .................

Imports - 616 833 - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports - 4 - 15 72 375.8 .................

Imports - 7 2 - 2 - .................

AGOA/GSP Imports - 1 - - - - ......

Machinery:

Exports - 18 293 40 175 338.6 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports - - 9 4 20 370.1 .................

Imports - 1,135 186 12 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports - - 13 7 20 184.7 .................

Imports - - - - 46 - .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 107 923 909 30 929 2981.5 .................

Imports 33 37 30 106 228 114.7 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports - 48 241 17 61 250.6 .................

Imports - 66 - 8 0 -95.7 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 113 74 23 1,064 915 -14.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 543 4,475 2,266 1,668 5,296 217.6 .................

Imports 13,812 8,274 7,004 7,995 2,789 -65.1 .................

AGOA/GSP Imports - 92 7 - - - ......
284

Table B-2—Continued

Cameroon: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 12,285 9,979 8,033 5,596 1,600 -71.4 .................

Imports 8,389 5,628 7,319 8,354 3,881 -53.5 .................

AGOA/GSP Imports 971 1,262 424 2,646 164 -93.8 ......

Chemicals and related products:

Exports 5,857 5,262 1,830 8,288 6,772 -18.3 .................

Imports 11,603 5,335 7,026 3,028 2,199 -27.4 .................

AGOA/GSP Imports 2 - - 25 48 88.1 ......

Electronic products:

Exports 6,409 2,425 2,862 5,559 6,843 23.1 .................

Imports 1,012 936 1,159 968 268 -72.3 .................

AGOA/GSP Imports 2 - 15 - - - ......

Energy-related products:

Exports 4,282 3,851 8,308 6,011 5,635 -6.2 .................

Imports 26,174 28,844 48,906 118,415 83,031 -29.9 .................

AGOA/GSP Imports - - - - 36,731 - ......

Footwear:

Exports 1,150 857 104 888 635 -28.6 .................

Imports 962 418 1,401 141 14 -90.1 .................

AGOA/GSP Imports - - - - - - -

Forest products:

Exports 2,710 2,054 970 2,281 1,369 -40.0 .................

Imports 3,991 3,978 5,169 10,020 8,015 -20.0 .................

AGOA/GSP Imports 99 55 64 71 160 125.4 ......

Machinery:

Exports 15,959 15,034 4,328 5,847 8,880 51.9 .................

Imports 238 60 19 202 117 -42.1 .................

AGOA/GSP Imports - - 8 - - - ......

Minerals and metals:

Exports 4,759 1,907 563 1,100 3,835 248.5 .................

Imports 416 211 724 71 201 184.8 .................

AGOA/GSP Imports 38 19 - 9 23 171.1 ......

Miscellaneous manufactures:

Exports 448 458 267 276 2,878 944.2 .................

Imports 1,929 1,299 1,473 1,048 800 -23.6 .................

AGOA/GSP Imports 84 59 64 52 48 -7.8 ......

Special provisions:

Exports 2,167 1,228 1,226 1,197 1,046 -12.6 .................

Imports 247 1,526 211 815 1,240 52.1 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,385 1,577 813 434 645 48.6 .................

Imports 2,223 5,096 3,097 2,740 1,842 -32.8 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 63,144 30,200 7,420 21,487 143,917 569.8 .................

Imports 8 69 15 18 18.4 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 121,555 74,833 36,724 58,963 184,054 212.2 .................

Imports 57,185 53,339 76,573 145,820 101,627 -30.3 .................

AGOA/GSP Imports 1,196 1,394 574 2,804 37,174 1226.0 ......
285

Table B-2—Continued

Cape Verde: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 6,137 6,279 3,578 1,794 995 -44.5 .................

Imports 449 - 49 92 249 169.7 .................

AGOA/GSP Imports 421 - 49 - 152 - ......

Chemicals and related products:

Exports 35 30 164 7 94 1282.1 .................

Imports - 11 - 6 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 1,066 463 557 520 262 -49.6 .................

Imports - 7 18 - 31 - .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - 2 - - - - .................

Imports - - - 2,760 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 3 9 3 46 4 -91.5 .................

Imports - 134 - - - - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 268 79 901 24 4 -82.1 .................

Imports 23 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 3 5 - 79 4 -95.5 .................

Imports 7 - - - 11 - .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 4 10 70 19 15 -19.1 .................

Imports - 5 - 414 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 1,856 1,307 1,214 792 528 -33.4 .................

Imports 12 - - 64 3 -94.9 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports - 10 28 - 5 - .................

Imports 5 8 9 877 1,201 37.0 .................

AGOA/GSP Imports - - 0 - - - ......

Transportation equipment:

Exports 252 1,035 720 3,856 5,556 44.1 .................

Imports - 6 - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 9,625 9,230 7,234 7,137 7,467 4.6 .................

Imports 496 171 76 4,214 1,496 -64.5 .................

AGOA/GSP Imports 421 - 49 - 152 - ......
286

Table B-2—Continued

Central African Republic: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 652 85 260 - 16 - .................

Imports 1,168 2,451 2,589 1,928 458 -76.3 .................

AGOA/GSP Imports - 53 14 - - - ......

Chemicals and related products:

Exports 55 85 15 100 98 -2.4 .................

Imports - - 25 8 126 1413.6 .................

AGOA/GSP Imports - - 21 8 - -100.0 ......

Electronic products:

Exports 298 887 898 374 1,519 306.4 .................

Imports - 3 - 18 38 116.6 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - - 20 -- .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports - 107 75 269 493 83.4 .................

Imports 46 44 - - 34 - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 1,480 1,020 1,065 258 296 14.9 .................

Imports 72 6 2 4 26 555.5 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 32 154 363 354 31 -91.3 .................

Imports 3 134 24 640 1,414 120.9 .................

AGOA/GSP Imports - - - 5 - -100.0 ......

Miscellaneous manufactures:

Exports - 8 - - 13 - .................

Imports 27 20 67 65 - -100.0 .................

AGOA/GSP Imports - - 49 - - - ......

Special provisions:

Exports 445 338 534 267 423 58.4 .................

Imports 32 140 177 202 64 -68.3 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 498 594 170 59 48 -18.9 .................

Imports 1 - 1 39 188 388.9 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 164 1,144 347 72 716 889.2 .................

Imports - - 10 - 15 - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 3,624 4,421 3,727 1,753 3,671 109.4 .................

Imports 1,350 2,798 2,896 2,904 2,364 -18.6 .................

AGOA/GSP Imports - 53 83 13 - -100.0 ......
287

Table B-2—Continued

Chad: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 2,001 - 1,188 2,614 2,521 -3.5 .................

Imports 2,854 7,189 6,638 4,633 4,683 1.1 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 154 53 31 5,352 6,352 18.7 .................

Imports - - - - 172 - .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 370 868 714 1,187 4,403 271.0 .................

Imports - 54 15 23 4 -80.6 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - 223 - - 1,049 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - 30 73 141.3 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 57 31 106 64 135 111.8 .................

Imports - - - - 719 - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 61 264 220 733 37,069 4956.1 .................

Imports - - - - 46 - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 3 - 5 76 12,857 16761.2 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 10 - 129 65 21,064 32253.3 .................

Imports 1 6 26 63 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 143 265 135 337 3,575 959.8 .................

Imports 8 62 27 24 29 18.0 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 66 360 89 132 726 448.0 .................

Imports - - - 37 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 234 1,356 69 189 46,641 24606.2 .................

Imports - - 204 - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 3,098 3,421 2,684 10,780 136,467 1166.0 .................

Imports 2,862 7,311 6,911 4,780 5,653 18.3 .................

AGOA/GSP Imports - - - - - - ......
288

Table B-2—Continued

Comoros: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports - 231 41 - 17 - .................

Imports 2,449 708 1,653 3,232 10,367 220.7 .................

AGOA/GSP Imports - 10 - - - - ......

Chemicals and related products:

Exports 13 21 16 180 189 5.1 .................

Imports 103 51 71 274 168 -38.6 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 60 77 3 3 967 32143.4 .................

Imports 5 - - - - .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - - - - .................

Imports - - 316 - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports - - - - - - .................

Imports - - - - 6 - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports - - 4 117 24 -79.0 .................

Imports - - 6 - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports - - - - 3 - .................

Imports 2 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 1 9 12 12 29 153.0 .................

Imports 10 2 4 6 27 318.7 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports - 206 63 4 - -100.0 .................

Imports - 56 - - - - .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports - 70 105 384 142 -63.1 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 74 613 243 699 1,372 96.2 .................

Imports 2,564 822 2,051 3,513 10,568 200.8 .................

AGOA/GSP Imports - 10 - - - - ......
289

Table B-2—Continued

Congo -DROC: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 13,726 9,827 3,249 1,713 6,430 275.4 .................

Imports 1,525 1,538 1,432 1,830 995 -45.6 .................

AGOA/GSP Imports 301 1,075 501 334 517 54.6 ......

Chemicals and related products:

Exports 1,551 632 714 753 1,141 51.5 .................

Imports 9,264 541 1,196 504 148 -70.7 .................

AGOA/GSP Imports 469 528 - - - - ......

Electronic products:

Exports 5,227 1,963 1,081 2,138 1,501 -29.8 .................

Imports - 30 76 476 162 -66.0 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 137 6 34 - 10 - .................

Imports 121,349 71,095 106,548 168,656 108,302 -35.8 .................

AGOA/GSP Imports 14,658 56,897 97,883 164,361 108,302 -34.1 ......

Footwear:

Exports 109 61 28 78 - -100.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 81 70 37 350 1,327 278.9 .................

Imports 477 239 48 300 943 214.7 .................

AGOA/GSP Imports 139 69 6 17 26 51.9 ......

Machinery:

Exports 2,643 2,025 2,713 446 860 92.6 .................

Imports 2 - 6 24 69 184.9 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 563 2,190 634 406 545 34.2 .................

Imports 123,018 97,060 122,291 39,616 34,807 -12.1 .................

AGOA/GSP Imports 109 249 15,408 9,074 9,674 6.6 ......

Miscellaneous manufactures:

Exports 53 104 50 60 3,531 5831.2 .................

Imports 6,524 181 175 494 2,159 337.3 .................

AGOA/GSP Imports 183 - 4 - 7 - ......

Special provisions:

Exports 1,689 1,229 826 435 818 87.7 .................

Imports 1,073 142 131 325 125 -61.5 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 6,978 2,498 1,399 2,420 1,759 -27.3 .................

Imports 23 13 10 6 4 -31.6 .................

AGOA/GSP Imports 0 - - 0 - -100.0 ......

Transportation equipment:

Exports 4,829 13,402 10,269 1,183 587 -50.4 .................

Imports 107 36 - 9 - -100 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 37,585 34,008 21,034 9,982 18,508 85.4 .................

Imports 263,363 170,874 231,913 212,239 147,714 -30.4 .................

AGOA/GSP Imports 15,860 58,818 113,803 173,787 118,527 -31.8 ......
290

Table B-2—Continued

Congo -ROC: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 5,215 7,801 9,488 16,369 14,325 -12.5 .................

Imports 6,723 1,403 4,423 3,053 1,196 -60.8 .................

AGOA/GSP Imports 6,490 - 3,083 2,456 - -100.0 ......

Chemicals and related products:

Exports 4,405 1,972 1,345 6,365 1,380 -78.3 .................

Imports 10,102 8,380 16,846 29,720 666 -97.8 .................

AGOA/GSP Imports - 31 - - - - ......

Electronic products:

Exports 6,021 3,830 3,446 7,497 5,778 -22.9 .................

Imports 34 34 3 419 138 -67.2 .................

AGOA/GSP Imports 1 - 3 - - - ......

Energy-related products:

Exports 3,115 761 59 348 91 -73.9 .................

Imports 424,628 288,967 367,338 445,822 438,808 -1.6 .................

AGOA/GSP Imports - - - - 128,746 - ......

Footwear:

Exports 505 578 129 349 22 -93.7 .................

Imports - - - 2 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 81 70 95 6,078 417 -93.1 .................

Imports 3,238 4,351 2,063 1,227 682 -44.5 .................

AGOA/GSP Imports - 24 21 27 2 -91.0 ......

Machinery:

Exports 12,379 15,608 7,538 8,401 8,439 0.5 .................

Imports 14 1 4 76 22 -71.6 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 10,710 5,574 836 4,182 5,601 33.9 .................

Imports 14,944 6,830 16,057 24,840 14,525 -41.5 .................

AGOA/GSP Imports 3 37 3,160 1,847 1,410 -23.6 ......

Miscellaneous manufactures:

Exports 107 31 104 342 227 -33.7 .................

Imports 686 4,072 2,124 1,994 1,115 -44.1 .................

AGOA/GSP Imports 14 156 51 50 74 47.3 ......

Special provisions:

Exports 2,644 2,814 3,612 2,655 2,573 -3.1 .................

Imports 381 684 1,642 780 747 -4.2 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 6,494 8,294 5,778 4,949 4,191 -15.3 .................

Imports 1 2 14 2 4 53.3 .................

AGOA/GSP Imports - 0 1 - 2 - ......

Transportation equipment:

Exports 23,578 43,984 14,393 23,666 46,300 95.6 .................

Imports 12 - 4 9 - -100.0 .................

AGOA/GSP Imports 12 - - - - - ......

All sectors:

Exports 75,256 91,317 46,824 81,200 89,344 10.0 .................

Imports 460,762 314,725 410,518 507,943 457,901 -9.9 .................

AGOA/GSP Imports 6,520 248 6,319 4,380 130,235 2873.2 ......
291

Table B-2—Continued

Côte d’Ivoire: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 20,580 8,743 20,508 15,450 12,120 -21.6 .................

Imports 226,738 381,407 293,603 259,264 226,899 -12.5 .................

AGOA/GSP Imports 8,790 10,173 8,385 21,591 12,595 -41.7 ......

Chemicals and related products:

Exports 39,014 36,604 19,522 14,160 21,987 55.3 .................

Imports 13,164 8,509 4,779 4,446 2,940 -33.9 .................

AGOA/GSP Imports 54 2 - 4 5 9.6 ......

Electronic products:

Exports 7,638 6,214 7,484 10,137 11,263 11.1 .................

Imports 1,321 4,491 655 2,036 2,968 45.7 .................

AGOA/GSP Imports 3 3 71 10 39 310.4 ......

Energy-related products:

Exports 890 370 298 213 6,377 2890.3 .................

Imports 32,572 17,316 34,166 84,220 72,040 -14.5 .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 154 305 425 175 830 373.2 .................

Imports 22 44 - 1 81 13431.2 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 7,172 8,394 9,249 8,278 3,905 -52.8 .................

Imports 5,693 6,697 5,999 12,673 9,669 -23.7 .................

AGOA/GSP Imports 363 876 243 448 456 2.0 ......

Machinery:

Exports 26,361 32,809 14,356 13,248 11,021 -16.8 .................

Imports 108 267 387 273 12 -95.5 .................

AGOA/GSP Imports 3 - 10 - - - ......

Minerals and metals:

Exports 5,230 10,221 1,928 2,047 2,468 20.5 .................

Imports 2,063 676 332 733 854 16.5 .................

AGOA/GSP Imports 61 70 2 - 10 - ......

Miscellaneous manufactures:

Exports 510 777 596 541 907 67.5 .................

Imports 1,907 1,336 1,559 2,044 2,283 11.7 .................

AGOA/GSP Imports 73 59 92 91 99 9.2 ......

Special provisions:

Exports 4,073 6,857 2,808 2,326 1,745 -25.0 .................

Imports 1,069 1,822 932 693 1,526 120.1 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 9,111 7,162 6,275 3,023 5,481 81.3 .................

Imports 856 773 1,054 593 527 -11.1 .................

AGOA/GSP Imports 64 55 481 173 115 -33.9 ......

Transportation equipment:

Exports 29,010 31,716 15,434 22,446 15,337 -31.7 .................

Imports 75 2 21 26 24 -5.0 .................

AGOA/GSP Imports - - - - 2 - ......

All sectors:

Exports 149,743 150,170 98,882 92,046 93,441 1.5 .................

Imports 285,590 423,340 343,487 367,002 319,823 -12.9 .................

AGOA/GSP Imports 9,412 11,238 9,284 22,317 13,321 -40.3 ......
292

Table B-2—Continued

Djibouti: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 2,246 7,177 13,816 2,908 1,980 -31.9 .................

Imports - 465 103 26 79 208.5 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 453 892 4,980 5,276 7,867 49.1 .................

Imports 0 - 0 86 74 -13.3 .................

AGOA/GSP Imports - - - 86 - -100.0 ......

Electronic products:

Exports 785 3,482 771 2,458 307 -87.5 .................

Imports - - - - 3 - .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - 20 26 30.3 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - 12 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports - 17 145 26 48 83.7 .................

Imports - - - - 4 - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 594 1,614 2,131 951 856 -10.0 .................

Imports - 18 6 - 7 - .................

AGOA/GSP Imports - - 6 - - - ......

Minerals and metals:

Exports 12 114 257 182 560 207.8 .................

Imports - - - 5 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports - 116 936 4 18 317.1 .................

Imports - 5 - - - - .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 161 828 713 632 1,002 58.5 .................

Imports - 42 1 303 783 158.6 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,655 3,078 1,115 2,942 1,568 -46.7 .................

Imports - 1 - - - - .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 366 2,722 1,691 1,210 4,329 257.9 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 7,272 20,041 26,555 16,609 18,573 11.8 .................

Imports 0 530 110 419 951 126.8 .................

AGOA/GSP Imports - - 6 86 - -100.0 ......
293

Table B-2—Continued

Equatorial Guinea: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 79 486 589 307 1,147 273.9 .................

Imports - 344 - 11 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 405 462 1,469 8,182 1,253 -84.7 .................

Imports - 4,229 5,465 - 37,251 - .................

AGOA/GSP Imports - - - - 24,954 - ......

Electronic products:

Exports 265 356 682 3,017 954 -68.4 .................

Imports 96 45 - 18 6 -66.6 .................

AGOA/GSP Imports - 45 - 4 6 48.9 ......

Energy-related products:

Exports 224 220 103 329 1,328 303.4 .................

Imports 28,573 58,687 33,822 152,534 355,083 132.8 .................

AGOA/GSP Imports 12,968 25,574 7,845 136,280 90,985 -33.2 ......

Footwear:

Exports 9 3 4 38 16 -57.7 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 42 1,446 1,136 93 42 -54.3 .................

Imports 631 1,017 724 690 16 -97.6 .................

AGOA/GSP Imports - 443 - - - - ......

Machinery:

Exports 4,856 3,647 6,279 10,000 7,408 -25.9 .................

Imports - 28 - - - - .................

AGOA/GSP Imports - 28 - - - - ......

Minerals and metals:

Exports 421 5,241 38,416 10,991 10,991 -0.0 .................

Imports 87 23 13 35 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 304 1,738 456 333 405 21.9 .................

Imports - - - 51 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 1,074 1,145 4,666 2,028 1,277 -37.0 .................

Imports 1,098 1,017 576 1,378 3,253 136.1 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 64 126 149 145 63 -56.4 .................

Imports - 276 - - - - .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 39,321 70,302 167,101 59,210 54,674 -7.7 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 47,063 85,172 221,050 94,673 79,558 -16.0 .................

Imports 30,485 65,667 40,601 154,717 395,609 155.7 .................

AGOA/GSP Imports 12,968 26,090 7,845 136,284 115,945 -14.9 ......
294

Table B-2—Continued

Eritrea: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 4,134 15,110 - 12,091 14,451 19.5 .................

Imports 478 546 347 43 38 -11.7 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 1,543 496 48 78 870 1011.2 .................

Imports 2 2 63 38 4 -88.2 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 2,939 3,883 1,151 754 2,029 169.1 .................

Imports 19 74 8 4 5 40.0 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 72 141 - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - 9 - - - .................

Imports - - - 1 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 315 34 55 17 100 500.9 .................

Imports 767 - - 36 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 825 916 382 289 649 124.8 .................

Imports 8 44 - - 20 - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 2,475 472 488 52 580 1016.1 .................

Imports 20 37 38 - 16 - .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 257 70 9 65 18 -71.5 .................

Imports - 12 21 2 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 557 1,079 440 2,552 2,070 -18.9 .................

Imports - 21 2 0 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 1,292 87 53 140 32 -77.3 .................

Imports - 1 0 80 0 -99.5 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 1,359 2,215 1,062 200 630 215.6 .................

Imports - - - - 4 - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 15,766 24,502 3,698 16,236 21,429 32.0 .................

Imports 1,294 736 480 203 89 -56.4 .................

AGOA/GSP Imports - - - - - - ......
295

Table B-2—Continued

Ethiopia: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 17,761 29,533 29,522 113,990 26,274 -77.0 .................

Imports 65,177 44,614 27,241 25,668 25,336 -1.3 .................

AGOA/GSP Imports 156 744 488 888 655 -26.2 ......

Chemicals and related products:

Exports 20,914 5,519 9,728 9,772 17,276 76.8 .................

Imports 873 975 299 453 180 -60.2 .................

AGOA/GSP Imports 552 314 4 2 - -100.0 ......

Electronic products:

Exports 9,914 8,371 6,161 6,615 3,148 -52.4 .................

Imports - 16 - 88 69 -21.5 .................

AGOA/GSP Imports - - - - 3 - ......

Energy-related products:

Exports 128 27 3 126 201 60.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 4 - 15 29 5 -84.5 .................

Imports - - - 0 1 259.9 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 704 498 701 371 318 -14.4 .................

Imports 2 24 17 36 9 -75.6 .................

AGOA/GSP Imports 2 14 7 26 - -100.0 ......

Machinery:

Exports 15,186 7,518 7,825 1,797 2,826 57.3 .................

Imports - - - - 3 - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 670 283 309 387 163 -57.9 .................

Imports 1,518 5,169 1,573 2,024 1,911 -5.6 .................

AGOA/GSP Imports - 6 - 3 - -100.0 ......

Miscellaneous manufactures:

Exports 286 865 373 151 201 33.3 .................

Imports 1,012 87 53 158 186 18.0 .................

AGOA/GSP Imports 22 39 18 7 - -100.0 ......

Special provisions:

Exports 5,971 4,354 3,572 14,721 3,706 -74.8 .................

Imports 932 1,364 517 203 611 201.4 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 1,240 901 629 946 223 -76.4 .................

Imports 137 29 10 30 735 2334.7 .................

AGOA/GSP Imports - 1 - 1 163 12651.6 ......

Transportation equipment:

Exports 47,514 30,031 105,549 16,110 6,318 -60.8 .................

Imports - - 500 - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 120,292 87,900 164,297 165,016 60,659 -63.2 .................

Imports 69,651 52,278 30,211 28,660 29,041 1.3 .................

AGOA/GSP Imports 732 1,118 516 927 822 -11.4 ......
296

Table B-2—Continued

Gabon: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 1,882 4,192 5,443 4,967 4,416 -11.1 .................

Imports 387 426 601 347 638 83.9 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 2,099 2,625 1,920 1,965 2,236 13.8 .................

Imports 63,513 64,504 104,129 116,917 18,172 -84.5 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 4,976 3,177 7,372 2,670 2,875 7.7 .................

Imports 295 35 72 53 3 -95.3 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 2,248 600 242 1,282 1,526 19.0 .................

Imports 1,931,921 1,029,428 1,320,410 1,884,421 1,680,342 -10.8 .................

AGOA/GSP Imports - - - - 938,695 - ......

Footwear:

Exports 11 129 88 345 582 68.8 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 1,251 3,723 39 609 576 -5.3 .................

Imports 265 2,543 4,676 6,217 5,517 -11.3 .................

AGOA/GSP Imports - - - - 65 - ......

Machinery:

Exports 14,703 9,847 4,438 6,720 8,061 19.9 .................

Imports - 108 13 50 2 -95.1 .................

AGOA/GSP Imports - - - 10 - -100.0 ......

Minerals and metals:

Exports 10,363 2,305 5,041 2,529 3,709 46.7 .................

Imports 22,224 17,379 26,213 27,200 21,593 -20.6 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 274 44 246 1,049 389 -62.9 .................

Imports 331 859 2,162 912 2,998 228.7 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 3,641 1,439 1,091 1,523 1,658 8.9 .................

Imports 3,306 14,993 1,541 1,790 2,365 32.1 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 659 2,700 1,145 942 1,495 58.7 .................

Imports 33 - - 2 13 708.7 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 38,917 30,906 17,902 38,669 46,568 20.4 .................

Imports - - 53,127 13 30 121.9 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 81,023 61,688 44,967 63,270 74,089 17.1 .................

Imports 2,022,275 1,130,273 1,512,945 2,037,921 1,731,671 -15.0 .................

AGOA/GSP Imports - - - 10 938,760 9387498.6 ......
297

Table B-2—Continued

The Gambia: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 3,882 4,187 4,095 3,709 3,002 -19.1 .................

Imports 32 247 38 196 134 -31.7 .................

AGOA/GSP Imports - 16 - 7 - -100.0 ......

Chemicals and related products:

Exports 372 353 344 270 469 74.0 .................

Imports 3 133 1 - - - .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 1,214 1,514 1,951 836 1,555 86.0 .................

Imports 7 5 - - 22 - .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 20 - 3 10 51 388.5 .................

Imports 624 440 - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 11 8 41 39 55 40.9 .................

Imports 8 2 - 0 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 40 - 21 70 121 72.7 .................

Imports 8 7 3 12 3 -77.1 .................

AGOA/GSP Imports 3 7 3 5 - -100.0 ......

Machinery:

Exports 686 417 528 59 189 221.9 .................

Imports 22 42 - 4 6 43.7 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 196 174 135 674 187 -72.3 .................

Imports 2,290 1,564 33 6 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 16 153 49 289 55 -81.1 .................

Imports 60 27 64 30 - -100.0 .................

AGOA/GSP Imports 56 27 8 12 - -100.0 ......

Special provisions:

Exports 490 160 728 1,063 236 -77.8 .................

Imports 415 111 20 3 3 -8.3 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 1,128 1,829 1,295 1,597 1,677 5.0 .................

Imports 34 38 27 90 65 -28.3 .................

AGOA/GSP Imports 0 - 0 0 1 204.1 ......

Transportation equipment:

Exports 1,462 309 306 250 566 126.9 .................

Imports 13 - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 9,517 9,104 9,496 8,867 8,164 -7.9 .................

Imports 3,516 2,617 186 342 232 -32.0 .................

AGOA/GSP Imports 60 50 12 24 1 -96.6 ......
298

Table B-2—Continued

Ghana: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 53,356 47,211 53,586 39,815 41,896 5.2 .................

Imports 16,000 27,949 42,361 70,890 58,093 -18.1 .................

AGOA/GSP Imports 1,144 1,940 2,902 2,951 2,264 -23.3 ......

Chemicals and related products:

Exports 45,999 36,753 31,209 16,378 29,426 79.7 .................

Imports 1,995 144 826 8,458 524 -93.8 .................

AGOA/GSP Imports 23 4 - 5 1 -84.0 ......

Electronic products:

Exports 15,135 11,957 12,034 15,661 16,713 6.7 .................

Imports 52 29 123 34 45 30.6 .................

AGOA/GSP Imports - 9 - - 2 - ......

Energy-related products:

Exports 10,736 2,943 15,389 10,825 5,863 -45.8 .................

Imports - 10,623 20,020 46,063 56,145 21.9 .................

AGOA/GSP Imports - - - - 33,086 - ......

Footwear:

Exports 885 783 2,273 538 857 59.4 .................

Imports 0 - - 2 0 -81.6 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 7,059 3,831 1,857 5,560 2,848 -48.8 .................

Imports 16,260 21,491 22,966 28,700 31,263 8.9 .................

AGOA/GSP Imports 1,743 2,802 2,626 7,448 6,863 -7.8 ......

Machinery:

Exports 49,431 25,776 19,365 24,370 14,910 -38.8 .................

Imports 83 9 139 58 38 -34.5 .................

AGOA/GSP Imports 6 - - - - - ......

Minerals and metals:

Exports 13,476 11,800 6,795 6,868 4,758 -30.7 .................

Imports 116,440 74,421 115,472 46,021 32,482 -29.4 .................

AGOA/GSP Imports 218 2,051 3,308 2,605 222 -91.5 ......

Miscellaneous manufactures:

Exports 7,354 3,671 2,243 3,821 3,195 -16.4 .................

Imports 1,413 873 1,384 1,268 1,026 -19.0 .................

AGOA/GSP Imports 312 655 798 523 437 -16.5 ......

Special provisions:

Exports 13,523 13,132 14,390 9,067 11,212 23.7 .................

Imports 563 502 2,399 4,266 5,112 19.8 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 13,237 12,184 9,059 6,404 6,863 7.2 .................

Imports 1,260 7,811 3,619 508 413 -18.8 .................

AGOA/GSP Imports 3 4 3 8 5 -30.5 ......

Transportation equipment:

Exports 82,611 51,170 62,847 39,405 40,931 3.9 .................

Imports 2 7 21 162 251 55.0 .................

AGOA/GSP Imports - - - - 3 - ......

All sectors:

Exports 312,801 221,212 231,045 178,712 179,473 0.4 .................

Imports 154,069 143,858 209,330 206,431 185,391 -10.2 .................

AGOA/GSP Imports 3,450 7,464 9,637 13,539 42,883 216.8 ......
299

Table B-2—Continued

Guinea: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 15,202 9,088 17,458 14,534 7,706 -47.0 .................

Imports 6,335 3,887 1,143 378 3,565 844.0 .................

AGOA/GSP Imports 1 - 30 - - - ......

Chemicals and related products:

Exports 5,799 9,134 4,637 9,225 21,058 128.3 .................

Imports 254 12 57 155 24 -84.2 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 5,330 4,778 1,830 2,063 2,439 18.3 .................

Imports 63 191 22 405 74 -81.8 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 4,481 1,976 2,184 5,806 2,249 -61.3 .................

Imports - - 5,155 7 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 254 110 123 309 162 -47.5 .................

Imports - - 3 0 1 198.8 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 1,281 990 1,202 947 792 -16.4 .................

Imports 288 46 201 94 401 325.6 .................

AGOA/GSP Imports 49 36 23 70 113 60.5 ......

Machinery:

Exports 9,166 10,335 3,083 6,039 9,519 57.6 .................

Imports - 21 67 36 28 -22.7 .................

AGOA/GSP Imports - - - - 23 - ......

Minerals and metals:

Exports 2,401 1,037 1,226 2,288 3,851 68.3 .................

Imports 119,510 109,878 107,206 85,097 82,144 -3.5 .................

AGOA/GSP Imports - 13 - 3 3 -12.4 ......

Miscellaneous manufactures:

Exports 800 442 574 564 1,028 82.4 .................

Imports 173 206 618 280 531 89.8 .................

AGOA/GSP Imports 32 39 32 26 53 100.5 ......

Special provisions:

Exports 9,083 10,639 10,914 7,694 12,363 60.7 .................

Imports 1,015 1,288 923 1,623 937 -42.3 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 5,281 4,258 3,454 2,250 2,306 2.5 .................

Imports 28 35 16 171 39 -77.1 .................

AGOA/GSP Imports 1 - - - - - ......

Transportation equipment:

Exports 23,001 12,174 6,752 15,091 14,146 -6.3 .................

Imports 6 10 - 117 88 -25.2 .................

AGOA/GSP Imports 3 10 - - - - ......

All sectors:

Exports 82,081 64,692 53,435 66,810 77,619 16.2 .................

Imports 127,671 115,574 115,411 88,363 87,832 -0.6 .................

AGOA/GSP Imports 87 97 84 100 191 91.4 ......
300

Table B-2—Continued

Guinea-Bissau: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 1,141 - 694 48 50 5.2 .................

Imports 56 41 - - 3 - .................

AGOA/GSP Imports 6 4 - - - - ......

Chemicals and related products:

Exports 125 167 - - 22 - .................

Imports - 361 - - - - .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 701 176 64 98 359 265.9 .................

Imports - - - 7 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - - - - .................

Imports - 1,675 - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 29 7 - 6 - -100.0 .................

Imports - - - - 16 - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 392 41 43 - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 15 - - - 18 - .................

Imports - 131 72 20 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports - 4 - - - - .................

Imports 15 - - 11 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 44 29 15 5 412 7867.5 .................

Imports - 0 1 4 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 39 15 - - 9 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 3 304 - 126 - -100.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 2,488 743 816 284 870 206.5 .................

Imports 71 2,209 72 42 19 -54.4 .................

AGOA/GSP Imports 6 4 - - - - ......
301

Table B-2—Continued

Kenya: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 31,871 59,969 28,167 27,141 18,762 -30.9 .................

Imports 56,746 50,332 36,247 34,994 41,055 17.3 .................

AGOA/GSP Imports 899 392 650 833 3,016 261.9 ......

Chemicals and related products:

Exports 31,667 16,688 32,392 28,197 41,364 46.7 .................

Imports 3,793 671 1,203 1,238 3,099 150.4 .................

AGOA/GSP Imports 13 86 352 16 1,148 6863.4 ......

Electronic products:

Exports 13,924 17,959 18,441 20,013 17,898 -10.6 .................

Imports 4,454 1,564 13,421 9,925 5,912 -40.4 .................

AGOA/GSP Imports 139 47 37 29 29 -1.8 ......

Energy-related products:

Exports 1,480 609 411 412 234 -43.2 .................

Imports 53 296 15 236 101 -57.3 .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 178 209 201 194 210 8.3 .................

Imports 76 1 11 35 7 -80.9 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 3,139 4,189 5,601 4,252 3,933 -7.5 .................

Imports 3,003 3,305 2,741 2,476 2,511 1.4 .................

AGOA/GSP Imports 8,272 3,192 2,584 1,997 2,317 16.0 ......

Machinery:

Exports 20,298 13,719 14,864 13,440 16,805 25.0 .................

Imports 518 302 250 1,104 259 -76.5 .................

AGOA/GSP Imports 84 - - 9 14 51.2 ......

Minerals and metals:

Exports 1,936 1,973 4,429 5,439 9,979 83.5 .................

Imports 3,542 2,884 2,725 2,437 1,430 -41.3 .................

AGOA/GSP Imports 2,042 1,720 584 228 162 -28.9 ......

Miscellaneous manufactures:

Exports 1,668 1,265 917 1,197 2,622 119.1 .................

Imports 4,256 3,160 3,032 2,943 3,874 31.6 .................

AGOA/GSP Imports 1,249 1,265 704 785 630 -19.8 ......

Special provisions:

Exports 5,466 6,214 6,647 6,456 10,788 67.1 .................

Imports 6,051 3,122 5,992 9,598 5,298 -44.8 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 5,197 8,462 7,854 6,160 9,047 46.9 .................

Imports 31,794 33,782 39,633 44,089 64,623 46.6 .................

AGOA/GSP Imports 65 21 - 1 51,556 - ......

Transportation equipment:

Exports 106,010 66,488 67,165 122,513 442,177 260.9 .................

Imports 59 103 875 319 413 29.7 .................

AGOA/GSP Imports 4 6 1,717 19 - -100.0 ......

All sectors:

Exports 222,834 197,744 187,089 235,413 573,819 143.7 .................

Imports 114,347 99,523 106,144 109,394 128,582 17.5 .................

AGOA/GSP Imports 12,767 6,728 6,627 3,919 58,873 1402.3 ......
302

Table B-2—Continued

Lesotho: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 1,119 1,233 59 492 30 -93.9 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports - 30 11 12 - -100.0 .................

Imports 1 5 - - 144 - .................

AGOA/GSP Imports - - - - 39 - ......

Electronic products:

Exports 22 33 525 128 354 175.2 .................

Imports 7 - - - 4 - .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports - 17 82 - 7 - .................

Imports - - - - 27 - .................

AGOA/GSP Imports - - - - 23 - ......

Machinery:

Exports 6 17 - 112 16 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports - - - - 6 - .................

Imports 2 3 6 - 31 - .................

AGOA/GSP Imports - - - - 8 - ......

Miscellaneous manufactures:

Exports 7.9 79 - 3 20 679.1 .................

Imports - - - - 55 - .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 636 67 18 16 34 118.3 .................

Imports 40 49 59 90 127 40.9 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 88 - - - - - .................

Imports 86,556 100,187 110,748 140,060 216,776 54.8 .................

AGOA/GSP Imports - - 1 - 129,523 - ......

Transportation equipment:

Exports 421 40 39 74 350 369.8 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 2,370 1,437 733 837 817 -2.4 .................

Imports 86,605 100,244 110 ................. ,814 140,150 217,165 55.0

AGOA/GSP Imports - - 1 - 129,592 - ......
303

Table B-2—Continued

Liberia: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 18,561 13,207 16,013 12,320 8,683 -29.5 .................

Imports 49 715 294 64 18 -71.6 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 1,365 1,578 3,499 1,700 1,978 16.3 .................

Imports 1,496 24,794 28,606 43,374 41,158 -5.1 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 3,363 3,922 2,833 3,225 2,134 -33.8 .................

Imports 13 9 36 231 130 -43.6 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 217 351 331 235 204 -13.4 .................

Imports - - 3 - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 311 147 165 150 143 -4.6 .................

Imports - 0 - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 450 402 347 548 333 -39.2 .................

Imports 2 6 816 78 142 82.0 .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 1,006 2,878 3,317 2,439 1,717 -29.6 .................

Imports 113 - 255 100 52 -48.2 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 571 4,095 4,837 9,810 10,278 4.8 .................

Imports 2,548 242 139 586 92 -84.3 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 273 464 474 296 697 135.0 .................

Imports 54 6 59 17 317 1730.6 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 7,260 11,602 6,105 6,262 5,243 -16.3 .................

Imports 556 11,602 308 298 643 116.3 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 4,953 4,173 4,417 3,514 2,970 -15.5 .................

Imports 6 22 2 7 3 -53.0 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 4,357 7,021 2,248 1,898 2,428 27.9 .................

Imports 16 6 3 655 2 -99.7 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 42,686 49,840 44,585 42,397 36,807 -13.2 .................

Imports 4,852 25,845 30,523 45,408 42,558 -6.3 .................

AGOA/GSP Imports - - - - - - ......
304

Table B-2—Continued

Madagascar: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 4,707 5,595 1,587 4,962 4,785 -3.6 .................

Imports 39,864 41,369 28,090 39,599 83,969 112.0 .................

AGOA/GSP Imports 6,276 74 3,229 2,598 2,484 -4.4 ......

Chemicals and related products:

Exports 1,115 1,682 2,100 1,104 2,630 138.3 .................

Imports 649 409 413 501 1,470 193.6 .................

AGOA/GSP Imports - 2 - 4 - -100.0 ......

Electronic products:

Exports 1,496 1,706 1,706 1,572 2,500 59.0 .................

Imports 756 676 454 416 360 -13.6 .................

AGOA/GSP Imports 748 662 302 370 307 -17.0 ......

Energy-related products:

Exports 110 107 30 12 50 316.6 .................

Imports - - - - 2 - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - 15 - - - .................

Imports - - - 3 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 89 298 123 87 239 174.9 .................

Imports 1,678 1,901 2,004 2,177 2,054 -5.6 .................

AGOA/GSP Imports 1,140 1,106 863 1,006 1,140 13.3 ......

Machinery:

Exports 660 476 1,087 566 2,635 365.9 .................

Imports 48 - - 7 - -100.0 .................

AGOA/GSP Imports 15 - - - - - ......

Minerals and metals:

Exports 52 55 310 379 812 114.4 .................

Imports 2,784 3,367 1,929 3,111 1,926 -38.1 .................

AGOA/GSP Imports 208 141 120 164 231 40.4 ......

Miscellaneous manufactures:

Exports 50 456 3 51 116 127.2 .................

Imports 528 736 648 880 2,305 161.9 .................

AGOA/GSP Imports 325 72 221 339 385 13.5 ......

Special provisions:

Exports 684 336 375 338 519 53.4 .................

Imports 154 298 610 1,133 949 -16.2 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 120 657 670 432 744 72.2 .................

Imports 16,029 22,639 46,068 109,907 178,750 62.6 .................

AGOA/GSP Imports 596 478 338 239 92,558 38675.9 ......

Transportation equipment:

Exports 2,136 3,122 98,050 5,894 5,917 0.4 .................

Imports - - - 3 5 69.3 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 11,219 14,491 106,056 15,397 20,947 36.0 .................

Imports 62,489 71,395 80,214 157,737 271,791 72.3 .................

AGOA/GSP Imports 9,308 2,535 5,073 4,720 97,105 1957.2 ......
305

Table B-2—Continued

Malawi: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports - - 133 2,013 578 -71.3 .................

Imports 89,011 38,380 57,274 60,616 59,317 -2.1 .................

AGOA/GSP Imports 29,228 16,342 24,660 23,216 30,561 31.6 ......

Chemicals and related products:

Exports 1,114 944 931 195 948 386.4 .................

Imports - - - 3 - -100.0 .................

AGOA/GSP Imports - - - 3 - -100.0 ......

Electronic products:

Exports 4,394 1,565 2,077 1,195 3,077 157.4 .................

Imports - - 5 119 2 -98.2 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - 49 24- - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - 13 18 33.9 .................

Imports - - - - 0 - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 346 223 366 560 956 70.6 .................

Imports 27 59 7 4 12 255.1 .................

AGOA/GSP Imports 27 42 - - 2 - ......

Machinery:

Exports 2,390 933 402 1,574 2,271 44.3 .................

Imports - - 9 - - - .................

AGOA/GSP Imports - - 9 - - - ......

Minerals and metals:

Exports 35 7 5 31 48 54.0 .................

Imports 19 21 48 - 19 - .................

AGOA/GSP Imports 16 21 42 - - - ......

Miscellaneous manufactures:

Exports - 14 12 25 53 116.5 .................

Imports 32 - - 2 22 1287.8 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 6,235 3,327 2,708 5,862 5,238 -10.6 .................

Imports 38 47 58 57 42 -26.8 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,921 674 419 812 862 6.2 .................

Imports 276 246 1,204 7,326 12,385 69.1 .................

AGOA/GSP Imports - - - - 4,799 - ......

Transportation equipment:

Exports 85 5,335 279 1,346 286 -78.7 .................

Imports - 3 - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 17,520 13,071 7,356 13,627 14,334 5.2 .................

Imports 89,403 38,757 58,604 68,126 71,800 5.4 .................

AGOA/GSP Imports 29,270 16,405 24,711 23,218 35,362 52.3 ......
306

Table B-2—Continued

Mali: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 5,957 4,244 1,760 5,160 1,774 -65.6 .................

Imports 549 1,013 2,734 410 618 50.7 .................

AGOA/GSP Imports 386 501 - 0 15 4462.9 ......

Chemicals and related products:

Exports 2,641 2,174 6,031 6,679 5,461 -18.2 .................

Imports 140 53 46 79 1 -99.2 .................

AGOA/GSP Imports 129 46 - 58 - -100.0 ......

Electronic products:

Exports 2,536 1,099 7,351 4,443 7,710 73.6 .................

Imports 231 952 190 1,815 484 -73.3 .................

AGOA/GSP Imports 9 5 - - - - ......

Energy-related products:

Exports - 187 37 - 20 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 112 3 82 20 72 258.4 .................

Imports - - - 17 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 1,290 269 28 1,173 73 -93.8 .................

Imports 149 348 389 123 241 95.4 .................

AGOA/GSP Imports 141 332 262 123 153 24.3 ......

Machinery:

Exports 7,564 5,984 7,089 1,310 1,878 43.4 .................

Imports 55 99 92 32 51 61.9 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 442 54 291 993 573 -42.3 .................

Imports 618 8 38 148 398 168.4 .................

AGOA/GSP Imports 198 2 21 - 81 - ......

Miscellaneous manufactures:

Exports 354 36 44 126 18 -85.8 .................

Imports 1,107 317 4,342 4,241 1,946 -54.1 .................

AGOA/GSP Imports 50 14 19 200 40 -79.9 ......

Special provisions:

Exports 517 4,598 577 580 2,723 369.8 .................

Imports 671 357 817 1,265 2,353 86.1 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 1,381 2,857 1,133 1,166 285 -75.5 .................

Imports 278 200 218 261 108 -58.6 .................

AGOA/GSP Imports 7 7 4 5 4 -22.0 ......

Transportation equipment:

Exports 3,161 3,341 4,163 8,091 11,230 38.8 .................

Imports 7 3 - 46 5 -89.8 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 25,956 24,846 28,586 29,740 31,818 7.0 .................

Imports 3,806 3,348 8,867 8,438 6,205 -26.5 .................

AGOA/GSP Imports 919 906 306 387 293 -24.2 ......
307

Table B-2—Continued

Mauritius: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 447 918 443 920 274 -70.2 .................

Imports 30,524 19,854 8,351 23,382 13,941 -40.4 .................

AGOA/GSP Imports 15,825 4,874 3,274 4,836 10,162 110.1 ......

Chemicals and related products:

Exports 1,606 930 1,129 1,570 1,816 15.6 .................

Imports 70 109 374 762 1,882 146.8 .................

AGOA/GSP Imports 8 4 - 13 9 -30.2 ......

Electronic products:

Exports 13,074 4,537 20,312 3,940 6,837 73.5 .................

Imports 7,193 5,172 3,685 3,571 4,155 16.4 .................

AGOA/GSP Imports 3,953 3,536 3,211 2,928 2,945 0.6 ......

Energy-related products:

Exports 14 26 3 99 126 26.9 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - 6 - - 6 - .................

Imports 37 - 8 75 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 1,278 510 716 781 610 -21.9 .................

Imports 184 16 - 63 117 85.0 .................

AGOA/GSP Imports - - - 5 6 11.1 ......

Machinery:

Exports 2,911 3,414 2,799 4,327 4,415 2.0 .................

Imports 801 215 - 166 620 272.5 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 252 420 469 444 299 -32.6 .................

Imports 6,791 3,049 6,622 6,946 7,001 0.8 .................

AGOA/GSP Imports 85 58 48 50 18 -63.5 ......

Miscellaneous manufactures:

Exports 972 779 1,507 441 705 59.8 .................

Imports 2,550 3,451 4,107 3,544 4,796 35.3 .................

AGOA/GSP Imports 1,761 2,003 2,740 1,825 1,908 4.6 ......

Special provisions:

Exports 1,181 1,040 1,483 935 920 -1.6 .................

Imports 1,585 1,238 2,973 876 4,159 374.7 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 376 381 405 453 2,865 533.0 .................

Imports 184,587 233,618 232,109 244,863 238,345 -2.7 .................

AGOA/GSP Imports - 79 17 - 38,925 - ......

Transportation equipment:

Exports 4,054 6,139 2,837 1,536 3,149 105.0 .................

Imports 1,063 238 115 1,757 110 -93.7 .................

AGOA/GSP Imports - 5 - - 2 - ......

All sectors:

Exports 26,165 19,101 32,103 15,448 22,022 42.6 .................

Imports 235,384 266,960 258,343 286,008 275,127 -3.8 .................

AGOA/GSP Imports 21,633 10,560 9,291 9,658 53,975 458.9 ......
308

Table B-2—Continued

Mauritania: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 12,068 14,115 13,076 1,886 2,216 17.5 .................

Imports 155 - 49 26 -47.1 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 70 206 130 155 261 69.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 1,569 862 913 1,821 2,920 60.4 .................

Imports - 12 537 15 131 786.7 .................

AGOA/GSP Imports - - - 3 - -100.0 ......

Energy-related products:

Exports 16 - 72 84 3 -96.7 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - 30 3 - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 24 - - 5 9 79.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 144 253 1,780 2,625 2,738 4.3 .................

Imports 6 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 1,659 2,132 1,249 2,244 2,154 -4.0 .................

Imports - - 171 - - - .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 3 31 - 19 40 115.3 .................

Imports - - - 4 40 900 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 543 180 552 252 602 138.9 .................

Imports 207 85 36 243 95 -60.7 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 158 13 34 215 240 11.6 .................

Imports 28 140 11 40 1 -97.5 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 4,588 1,384 5,787 6,560 13,942 112.5 .................

Imports - - - 3 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 20,841 19,206 23,597 15,866 25,126 58.4 .................

Imports 241 393 754 354 294 -17.1 .................

AGOA/GSP Imports - - - 3 - -100.0 ......
309

Table B-2—Continued

Mozambique: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 26,336 28,728 18,274 30,311 14,979 -50.6 .................

Imports 28,301 23,348 8,403 23,901 6,594 -72.4 .................

AGOA/GSP Imports 16,090 9,103 78 10,688 5,253 -50.8 ......

Chemicals and related products:

Exports 1,676 1,747 1,952 1,338 720 -46.2 .................

Imports - 4 - - 0 - .................

AGOA/GSP Imports - - - - 0 - ......

Electronic products:

Exports 1,339 2,287 2,444 2,292 1,520 -33.7 .................

Imports 8 1 57 71 8 -88.5 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - 49 6,076 2,805 -53.8 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 79 230 51 175 93 -47.2 .................

Imports - 28 - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 41 20 22 151 80 -47.1 .................

Imports 19 66 46 7 61 793.0 .................

AGOA/GSP Imports - 36 - 3 8 223.2 ......

Machinery:

Exports 3,288 2,266 3,390 4,704 1,462 -68.9 .................

Imports 255 267 19 - - - .................

AGOA/GSP Imports - 3 - - - - ......

Minerals and metals:

Exports 138 460 2,821 1,074 166 -84.5 .................

Imports 429 1,675 1,065 159 19 -88.3 .................

AGOA/GSP Imports 48 50 17 11 16 53.7 ......

Miscellaneous manufactures:

Exports 153 57 83 28 504 1704.8 .................

Imports 133 23 60 46 34 -25.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 1,049 844 1,079 5,798 2,393 -58.7 .................

Imports 266 223 592 194 165 -15.0 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 6,395 2,821 2,758 4,495 2,193 -51.2 .................

Imports 156 116 44 0 179 52291.5 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 5,167 6,229 924 1,473 1,412 -4.1 .................

Imports 65 - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 45,662 45,687 33,847 57,913 28,327 -51.1 .................

Imports 29,631 25,750 10,287 24,377 7,060 -71.0 .................

AGOA/GSP Imports 16,138 9,192 95 10,701 5,278 -50.7 ......
310

Table B-2—Continued

Namibia: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 920 74 67 2,414 4,928 104.2 .................

Imports 31,821 32,167 18,406 18,883 12,495 -33.8 .................

AGOA/GSP Imports 2,145 764 341 1 26 2678.3 ......

Chemicals and related products:

Exports 350 413 946 1,481 4,169 181.4 .................

Imports 5 204 197 404 48 -88.2 .................

AGOA/GSP Imports - - 0 0 - -100.0 ......

Electronic products:

Exports 2,017 7,852 5,944 3,014 10,262 240.5 .................

Imports 14 415 200 6 10 63.0 .................

AGOA/GSP Imports 1 - - - - - ......

Energy-related products:

Exports 60 - 32 120 138 15.0 .................

Imports 26,211 9,749 - 13,432 11,302 -15.9 .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - 3 - .................

Imports 1 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 12 47 48 420 187 -55.5 .................

Imports 57 99 173 186 76 -58.9 .................

AGOA/GSP Imports 52 61 76 134 67 -50.1 ......

Machinery:

Exports 4,707 2,391 1,540 1,062 2,418 127.6 .................

Imports 9 4 94 220 34 -84.4 .................

AGOA/GSP Imports - 4 - - - - ......

Minerals and metals:

Exports 52 100 141 259 676 160.6 .................

Imports 1,514 7,290 9,638 6,968 12,138 74.2 .................

AGOA/GSP Imports 644 5,684 - - - - ......

Miscellaneous manufactures:

Exports 246 97 180 725 597 -17.7 .................

Imports 40 144 57 105 52 -50.5 .................

AGOA/GSP Imports - - 2 18 - -100.0 ......

Special provisions:

Exports 3,496 10,021 3,417 10,882 49,591 355.7 .................

Imports 2,638 1,579 1,173 1,795 1,571 -12.5 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 71 211 201 77 84 9.7 .................

Imports 28 24 40 192 118 -38.3 .................

AGOA/GSP Imports 1 - 8 - - - ......

Transportation equipment:

Exports 13,126 28,650 182,305 57,993 176,282 204.0 .................

Imports - - 7 2 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 25,058 49,857 194,822 78,448 249,334 217.8 .................

Imports 62,338 51,676 29,984 42,191 37,845 -10.3 .................

AGOA/GSP Imports 2,843 6,513 427 154 93 -39.6 ......
311

Table B-2—Continued

Niger: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 2,048 1,967 432 2,357 4,759 101.9 .................

Imports 269 102 152 146 6 -95.7 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 1,230 1,993 1,896 2,806 20,006 612.9 .................

Imports 453 335 121 56 204 261.9 .................

AGOA/GSP Imports 3 22 - 16 42 153.6 ......

Electronic products:

Exports 1,853 1,468 2,938 14,037 11,365 -19.0 .................

Imports 27 136 318 139 240 72.3 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 20 78 - - 5 - .................

Imports 5,897 39 2,455 4,770 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 199 - 3 5 - -100.0 .................

Imports - - 1 - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 116 25 228 1,252 2,732 118.2 .................

Imports 5 12 14 51 273 432.5 .................

AGOA/GSP Imports - 8 11 - - - ......

Machinery:

Exports 173 461 1,755 5,527 7,626 38.0 .................

Imports 147 267 599 810 55 -93.2 .................

AGOA/GSP Imports - - 254 - - - ......

Minerals and metals:

Exports 566 170 195 490 947 93.3 .................

Imports 24 102 4 578 126 -78.1 .................

AGOA/GSP Imports - 78 4 - - - ......

Miscellaneous manufactures:

Exports 62 81 773 584 168 -71.2 .................

Imports 78 75 199 24 13 -46.3 .................

AGOA/GSP Imports 10 6 11 - - - ......

Special provisions:

Exports 985 1,328 938 2,459 2,352 -4.4 .................

Imports 456 571 813 344 342 -0.7 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 15,426 9,484 8,172 4,287 4,708 9.8 .................

Imports 99 91 128 42 54 28.8 .................

AGOA/GSP Imports 0 - - - - - ......

Transportation equipment:

Exports 2,212 840 1,065 1,865 8,217 340.5 .................

Imports 57 - 33 12 112 845.6 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 24,889 17,895 18,394 35,671 62,886 76.3 .................

Imports 7,513 1,731 4,837 6,972 1,427 -79.5 .................

AGOA/GSP Imports 13 114 280 16 42 153.6 ......
312

Table B-2—Continued

Nigeria: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 114,406 149,995 172,699 178,734 245,911 37.6 .................

Imports 13,751 10,471 8,277 5,227 10,529 101.4 .................

AGOA/GSP Imports - - - 58 153 164.7 ......

Chemicals and related products:

Exports 83,319 73,129 43,156 55,631 61,726 11.0 .................

Imports 400,956 367,061 429,134 943,895 258,960 -72.6 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 37,793 55,349 52,308 42,054 86,939 106.7 .................

Imports 121 16 97 92 318 245.1 .................

AGOA/GSP Imports - - - - 46 - ......

Energy-related products:

Exports 46,798 35,735 26,321 16,568 24,335 46.9 .................

Imports 5,573,407 4,212,685 3,720,249 8,706,166 8,627,161 -0.9 .................

AGOA/GSP Imports - - - - 5,688,030 - ......

Footwear:

Exports 555 560 738 728 1,391 91.0 .................

Imports - - 57 106 186 75.5 .................

AGOA/GSP Imports - - - - 71 - ......

Forest products:

Exports 8,567 8,588 8,493 14,667 20,944 42.8 .................

Imports 708 1,108 1,138 875 477 -45.5 .................

AGOA/GSP Imports - - - 10 19 97.2 ......

Machinery:

Exports 84,696 156,499 72,932 122,815 151,541 23.4 .................

Imports - 425 2,693 55 296 442.7 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 37,133 53,575 19,572 25,355 37,884 49.4 .................

Imports 1,368 1,399 972 16,187 12,107 -25.2 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 1,921 8,207 9, ................. 969 3,590 7,583 111.2

Imports 2,686 3,867 4,710 2,969 1,463 -50.7 .................

AGOA/GSP Imports - - - 3 85 2670.2 ......

Special provisions:

Exports 8,036 10,571 10,061 14,432 11,234 -22.2 .................

Imports 5,116 2,778 4,194 3,961 4,454 12.5 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 10,276 12,704 12,817 8,384 13,647 62.8 .................

Imports 2,088 3,801 801 572 453 -20.8 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 377,448 249,213 195,396 229,643 284,480 23.9 .................

Imports - 9 - 23 72 216.8 .................

AGOA/GSP Imports - - - - 56 - ......

All sectors:

Exports 810,947 814,126 624,461 712,600 947,614 33.0 .................

Imports 6,000,201 4,603,620 4,172,322 9,680,128 8,916,476 -7.9 .................

AGOA/GSP Imports - - - 71 5,688,461 8062234.8 ......
313

Table B-2—Continued

Rwanda: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 26,595 9,850 17,796 10,186 8,404 -17.5 .................

Imports 2,540 1,915 2,007 2,301 3,668 59.4 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 353 315 82 128 324 153.5 .................

Imports - 0 - - 294 - .................

AGOA/GSP Imports - - - - 265 - ......

Electronic products:

Exports 1,727 1,028 19,550 2,537 6,990 175.5 .................

Imports 76 14 39 150 66 -56.2 .................

AGOA/GSP Imports 8 - - - - - ......

Energy-related products:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - 4,249 - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 1,541 9,333 8,111 3,917 117 -97.0 .................

Imports 3 - - - 20 - .................

AGOA/GSP Imports 3 - - - 20 - ......

Machinery:

Exports 330 27 135 280 91 -67.4 .................

Imports 8 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 11 28 116 82 196 140.1 .................

Imports 1,254 1,910 1,422 2,552 3,134 22.8 .................

AGOA/GSP Imports 100 302 154 324 33 -90.0 ......

Miscellaneous manufactures:

Exports 92 - 14 17 75 345.0 .................

Imports - 8 - - 20 - .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 2,916 638 1,538 554 973 75.7 .................

Imports 13 183 201 36 20 -44.9 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 1,122 351 116 201 166 -17.5 .................

Imports - - 17 23 - - .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 284 178 32 1,020 50 -95.1 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 34,971 21,754 47,490 18,922 17,386 -8.1 .................

Imports 3,895 4,031 3,686 5,061 7,221 42.7 .................

AGOA/GSP Imports 111 302 154 324 318 -1.9 ......
314

Table B-2—Continued

São Tomé & Prin: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 69 - 12 28 318 1025.7 .................

Imports - 2 - 21 - -100.0 .................

AGOA/GSP Imports - 2 - - - - ......

Chemicals and related products:

Exports 25 14 73 65 63 -2.7 .................

Imports - - 59 10 0 -96.9 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 230 67 33 106 135 26.9 .................

Imports 36 7 142 116 32 -72.0 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 8 20 - 16 38 130.2 .................

Imports - - 1,616 - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 116 - - - - - .................

Imports - 0 - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports - - 319 63 - -100.0 .................

Imports - 50 - - - - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports - 22 4 137 43 -68.3 .................

Imports 9 56 758 245 247 0.8 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 1,294 49 - 91 37 -58.9 .................

Imports 4 0 33 46 9 -81.0 .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports - 84 - 123 5 -96.4 .................

Imports 2 - 7 5 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 59 31 17 34 29 -13.1 .................

Imports 53 567 49 59 15 -74.3 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 58 230 - 108 25 -77.3 .................

Imports 115 - 23 3 19 563.5 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 11,083 8,863 52 190 9,921 5111.5 .................

Imports 2 - 6 9 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 12,942 9,380 510 962 10,614 1003.4 .................

Imports 221 682 2,693 513 322 -37.2 .................

AGOA/GSP Imports - 2 - - - - ......
315

Table B-2—Continued

Senegal: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 12,320 21,998 14,388 16,895 8,166 -51.7 .................

Imports 855 904 994 1,015 6,346 525.5 .................

AGOA/GSP Imports 793 812 - - 2 - ......

Chemicals and related products:

Exports 11,575 11,055 6,617 15,773 17,377 10.2 .................

Imports 2,159 779 2,040 767 474 -38.2 .................

AGOA/GSP Imports 534 740 699 691 407 -41.1 ......

Electronic products:

Exports 2,587 5,994 16,173 9,289 8,463 -8.9 .................

Imports 846 535 1,453 204 2,576 1164.7 .................

AGOA/GSP Imports 27 4 - - - - ......

Energy-related products:

Exports 123 70 171 185 535 189.8 .................

Imports - - 7,263 - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 14 31 62 97 124 27.2 .................

Imports - 8 8 2 14 508.8 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 2,134 903 175 498 878 76.3 .................

Imports 72 96 171 227 154 -32.2 .................

AGOA/GSP Imports 33 17 16 38 58 53.9 ......

Machinery:

Exports 3,719 3,888 8,377 6,792 7,737 13.9 .................

Imports 219 50 17 14 - -100.0 .................

AGOA/GSP Imports 7 - - - - - ......

Minerals and metals:

Exports 495 519 140 1,976 4,853 145.6 .................

Imports 122 210 156 - 11 - .................

AGOA/GSP Imports 2 - - - - - ......

Miscellaneous manufactures:

Exports 195 336 711 363 1,431 294.5 .................

Imports 807 964 1,337 1,138 1,376 21.0 .................

AGOA/GSP Imports 392 753 24 41 97 134.7 ......

Special provisions:

Exports 2,058 2,223 2,311 2,653 5,765 117.3 .................

Imports 722 971 3,863 539 91,297 16837.0 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,850 2,667 3,570 4,102 4,142 1.0 .................

Imports 817 620 171 299 91 -69.7 .................

AGOA/GSP Imports - 45 1 11 3 -75.0 ......

Transportation equipment:

Exports 13,274 9,233 10,112 21,560 18,863 -12.5 .................

Imports 8 44 - 26 6 -78.7 .................

AGOA/GSP Imports - 41 - - - - ......

All sectors:

Exports 51,343 58,917 62,808 80,183 78,334 -2.3 .................

Imports 6,627 5,181 17,473 4,231 102,345 2319.0 .................

AGOA/GSP Imports 1,789 2,412 740 781 567 -27.4 ......
316

Table B-2—Continued

Seychelles: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 718 90 346 363 246 -32.2 .................

Imports 445 241 96 1,035 15,639 1410.3 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 329 1,099 953 656 858 30.8 .................

Imports 42 136 - 1 3 486.2 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 1,222 2,372 2,077 3,490 10,893 212.1 .................

Imports 815 265 3,277 5,172 4,880 -5.7 .................

AGOA/GSP Imports - - 2,497 4,662 4,230 -9.3 ......

Energy-related products:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - 3 - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 24 71 29 326 261 -20.1 .................

Imports 351 6 166 10 24 149.7 .................

AGOA/GSP Imports - - 93 - - - ......

Machinery:

Exports 1,897 3,058 1,057 535 6,609 1135.6 .................

Imports 7 4 46 - 36 - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 135 643 1,523 391 295 -24.6 .................

Imports 3 2 38 291 355 22.1 .................

AGOA/GSP Imports - - 10 - - - ......

Miscellaneous manufactures:

Exports 179 176 854 32 357 1023.1 .................

Imports 25 22 81 34 11 -67.1 .................

AGOA/GSP Imports 21 - 0 - - - ......

Special provisions:

Exports 196 297 283 278 376 35.0 .................

Imports 493 1,350 454 1,366 2,728 99.7 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 105 779 145 711 1,035 45.5 .................

Imports 4 159 1,041 156 25 -84.0 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 1,205 810 280 188 155,029 82356.7 .................

Imports 153 - - 32 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 6,010 9,397 7,547 6,971 175,959 2424.1 .................

Imports 2,339 2,184 5,197 8,097 23,701 192.7 .................

AGOA/GSP Imports 21 - 2,600 4,662 4,230 -9.3 ......
317

Table B-2—Continued

Sierra Leone: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 9,425 15,726 4,720 5,527 13,893 151.4 .................

Imports 207 257 153 291 209 -28.2 .................

AGOA/GSP Imports 0 16 - 10 18 74.2 ......

Chemicals and related products:

Exports 1,022 721 491 787 1,015 29.0 .................

Imports 363 567 82 262 454 73.1 .................

AGOA/GSP Imports - 517 3 60 1 -98.9 ......

Electronic products:

Exports 713 844 1,573 2,422 2,767 14.2 .................

Imports 257 131 151 45 180 300.4 .................

AGOA/GSP Imports - - 4 - 95 - ......

Energy-related products:

Exports - 20 117 41 390 861.5 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 63 12 - 49 111 127.4 .................

Imports 2 3 1,776 134 854 538.6 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 68 334 99 153 317 107.6 .................

Imports 170 - 17 25 3 -88.2 .................

AGOA/GSP Imports 17 - - 25 3 -88.2 ......

Machinery:

Exports 381 455 301 860 1,030 19.7 .................

Imports 34 75 81 80 99 23.8 .................

AGOA/GSP Imports 14 - - 29 44 51.0 ......

Minerals and metals:

Exports 45 127 149 536 1,039 93.8 .................

Imports 16,979 10,454 7,529 2,044 537 -73.7 .................

AGOA/GSP Imports 218 68 - 119 226 89.8 ......

Miscellaneous manufactures:

Exports 27 101 88 389 542 39.1 .................

Imports 132 276 213 512 680 32.9 .................

AGOA/GSP Imports 31 209 - - - - ......

Special provisions:

Exports 936 1,370 3,141 3,282 3,958 20.6 .................

Imports 20 154 33 23 10 -55.6 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,725 2,834 1,971 1,256 1,567 24.7 .................

Imports 163 353 193 335 1,374 310.0 .................

AGOA/GSP Imports - 20 25 - - - ......

Transportation equipment:

Exports 300 898 336 2,489 1,165 -53.2 .................

Imports 30 5 107 55 240 332.7 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 15,706 23,441 12,985 17,791 27,791 56.2 .................

Imports 18,367 12,274 10,335 3,806 4,640 21.9 .................

AGOA/GSP Imports 643 831 31 245 387 58.3 ......
318

Table B-2—Continued

Somalia: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 599 1,723 1,936 1,776 3,193 79.8 .................

Imports 73 388 67 14 82 475.8 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 36 16 68 100 25 -75.3 .................

Imports 17 - 35 56 151 169.7 .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 406 250 132 2,137 778 -63.6 .................

Imports 18 36 36 6 3 -49.8 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - - - - - - .................

Imports - - - - 12 - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports - - - - 6 - .................

Imports 59 - - 5 5 -0.4 .................

AGOA/GSP Imports 28 - - - - - ......

Machinery:

Exports 758 66 276 126 51 -59.6 .................

Imports 46 100 - 7 4 -33.8 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 13 - 138 - 5 - .................

Imports 5 12 - 324 6 -98.1 .................

AGOA/GSP Imports - - - 324 - -100.0 ......

Miscellaneous manufactures:

Exports - - - - 10 - .................

Imports 69 16 26 20 2 -88.8 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 32 48 31 201 1,518 653.2 .................

Imports - 118 - 2 0 -84.9 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 905 177 228 4 454 12790.2 .................

Imports - 35 28 9 69 637.8 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 7 295 5 517 550 6.4 .................

Imports 25 - - - 8 - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 2,756 2,574 2,813 4,862 6,591 35.6 .................

Imports 311 704 192 443 343 -22.5 .................

AGOA/GSP Imports 28 - - 324 - -100.0 ......
319

Table B-2—Continued

South Africa: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 229,439 211,298 186,131 132,718 100,678 -24.1 .................

Imports 149,808 158,146 161,980 199,584 173,169 -13.2 .................

AGOA/GSP Imports 28,754 44,153 29,006 41,229 78,750 91.0 ......

Chemicals and related products:

Exports 436,998 427,924 401,563 481,668 460,718 -4.3 .................

Imports 183,136 217,019 225,449 283,500 283,066 -0.2 .................

AGOA/GSP Imports 113,340 129,428 97,971 118,967 126,011 5.9 ......

Electronic products:

Exports 529,415 608,668 493,610 455,847 394,658 -13.4 .................

Imports 12,941 18,091 29,780 30,995 28,223 -8.9 .................

AGOA/GSP Imports 7,931 8,800 17,021 13,499 5,476 -59.4 ......

Energy-related products:

Exports 144,950 152,811 94,429 107,317 94,076 -12.3 .................

Imports 43,860 67,444 9,678 62,926 66,489 5.7 .................

AGOA/GSP Imports - 1,203 291 - 2,136 - ......

Footwear:

Exports 8,704 8,394 10,069 7,674 2,101 -72.6 .................

Imports 241 215 91 59 217 268.3 .................

AGOA/GSP Imports - - - - 171 - ......

Forest products:

Exports 157,767 138,969 102,848 98,146 96,753 -1.4 .................

Imports 52,782 50,147 52,158 66,461 48,456 -27.1 .................

AGOA/GSP Imports 3,985 4,825 8,889 8,789 9,141 4.0 ......

Machinery:

Exports 433,480 373,001 257,676 251,668 285,221 13.3 .................

Imports 65,243 75,783 121,580 174,385 258,351 48.1 .................

AGOA/GSP Imports 53,825 65,489 15,168 31,500 22,899 -27.3 ......

Minerals and metals:

Exports 122,695 97,352 109,057 118,611 97,323 -17.9 .................

Imports 1,705,875 2,147,467 2,109,370 2,841,397 2,783,624 -2.0 .................

AGOA/GSP Imports 187,394 220,533 199,174 268,102 316,565 18.1 ......

Miscellaneous manufactures:

Exports 52,082 65,621 44,692 53,895 46,389 -13.9 .................

Imports 17,720 23,259 36,929 48,939 56,841 16.1 .................

AGOA/GSP Imports 12,733 17,210 7,862 22,037 27,997 27.0 ......

Special provisions:

Exports 144,885 152,284 124,521 124,335 117,209 -5.7 .................

Imports 82,047 81,467 173,250 137,904 120,163 -12.9 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 46,119 35,502 32,680 37,633 28,712 -23.7 .................

Imports 103,976 110,463 126,978 175,579 212,457 21.0 .................

AGOA/GSP Imports 1,853 1,741 1,737 2,242 33,621 1399.9 ......

Transportation equipment:

Exports 619,861 1,222,769 536,721 960,035 1,098,515 14.4 .................

Imports 77,832 103,823 145,526 181,929 398,484 119.0 .................

AGOA/GSP Imports 39,998 58,332 72,265 76,812 300,476 291.2 ......

All sectors:

Exports 2,926,396 3,494,594 2,393,998 2,829,546 2,822,354 -0.3 .................

Imports 2,495,463 3,053,323 3,192,768 4,203,657 4,429,539 5.4 .................

AGOA/GSP Imports 449,813 551,715 449,384 583,176 923,243 58.3 ......
320

Table B-2—Continued

Sudan: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 11,045 6,462 8,399 16,869 16,557 -1.8 .................

Imports 10,830 3,082 - 1,688 3,337 97.7 .................

AGOA/GSP Imports - - - - - - ......

Chemicals and related products:

Exports 837 11 - - 122 - .................

Imports 57 - - - - - .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 5,366 65 51 - 41 - .................

Imports 19 - 26 4 8 83.9 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports 335 - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - - - - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 320 65 56 - - - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Machinery:

Exports 8,325 - 58 4 116 2607.4 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 2,520 44 27 - 6 - .................

Imports 2 8 - - - - .................

AGOA/GSP Imports - - - - - - ......

Miscellaneous manufactures:

Exports 1,038 3 - - - - .................

Imports - - 21 116 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Special provisions:

Exports 369 120 211 9 255 2731.7 .................

Imports 1,161 - 10 - 39 - .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 922 21 - - - - .................

Imports 40 - - 0 2 354.3 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 6,077 - 19 - 20 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 37,155 6,790 8,821 16,882 17,119 1.4 .................

Imports 12,109 3,090 57 1,808 3,385 87.2 .................

AGOA/GSP Imports - - - - - - ......
321

Table B-2—Continued

Swaziland: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 795 1,517 749 73 398 447.9 .................

Imports 22,495 3,116 8,297 12,539 6,891 -45.0 .................

AGOA/GSP Imports 21,812 2,711 7,744 11,935 6,487 -45.6 ......

Chemicals and related products:

Exports 1,181 3,309 881 807 2,110 161.5 .................

Imports 617 776 1,452 1,866 839 -55.0 .................

AGOA/GSP Imports 571 669 2 22 85 285.2 ......

Electronic products:

Exports 736 2,474 640 2,312 2,716 17.5 .................

Imports 181 570 157 152 258 69.6 .................

AGOA/GSP Imports - - 28 - - - ......

Energy-related products:

Exports - - - - 4 - .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 66 - - 5 - -100.0 .................

Imports 7 - - - - - ................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 31 209 155 321 80 -75.1 .................

Imports 1,827 2,094 2,122 3,015 2,382 -21.0 .................

AGOA/GSP Imports 106 39 70 - 3 - ......

Machinery:

Exports 746 166 366 2,542 138 -94.6 .................

Imports 141 642 539 61 2,256 3627.2 .................

AGOA/GSP Imports - 48 - - - - ......

Minerals and metals:

Exports 12 9 50 43 384 800.3 .................

Imports 188 160 147 207 126 -39.1 .................

AGOA/GSP Imports 177 148 120 - - - ......

Miscellaneous manufactures:

Exports - 8 51 44 216 392.8 .................

Imports 2,862 554 1,429 2,482 3,897 57.0 .................

AGOA/GSP Imports 2,624 553 - - - - ......

Special provisions:

Exports 212 199 192 194 209 7.6 .................

Imports 289 452 264 355 294 -17.3 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 17 39 204 160 159 -0.8 .................

Imports 15,126 16,303 23,318 31,898 48,091 50.8 .................

AGOA/GSP Imports - - - - 8,195 - ......

Transportation equipment:

Exports 386 256 459 1,240 1,023 -17.4 .................

Imports 242 305 124 3 3 2.5 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 4,182 8,186 3,748 7,741 7,438 -3.9 .................

Imports 43,975 24,973 37,849 52,577 65,036 23.7 .................

AGOA/GSP Imports 25,290 4,169 7,964 11,957 14,770 23.5 ......
322

Table B-2—Continued

Tanzania: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 13,229 7,728 16,548 3,704 9,797 164.5 .................

Imports 9,302 10,730 17,165 13,739 12,301 -10.5 .................

AGOA/GSP Imports 1,027 185 1,026 1,134 636 -43.9 ......

Chemicals and related products:

Exports 3,271 1,772 2,539 2,269 5,506 142.7 .................

Imports 672 496 341 554 236 -57.4 .................

AGOA/GSP Imports 32 - - - 21 - ......

Electronic products:

Exports 11,287 12,579 11,529 5,270 7,050 33.8 .................

Imports 27 23 4 51 265 423.7 .................

AGOA/GSP Imports 6 - - - 2 - ......

Energy-related products:

Exports 115 43 92 79 170 114.5 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 582 1,319 1,377 1,106 1,757 58.9 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 804 2,466 1,095 875 895 2.3 .................

Imports 586 500 190 561 499 -11.0 .................

AGOA/GSP Imports 102 142 75 200 224 11.7 ......

Machinery:

Exports 7,164 8,476 3,877 4,169 3,927 -5.8 .................

Imports - - - 30 200 566.7 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 1,634 1,449 1,253 1,047 5,280 404.1 .................

Imports 4,182 6,801 9,771 14,586 11,528 -21.0 .................

AGOA/GSP Imports 2,458 4,565 2,007 13 10 -26.7 ......

Miscellaneous manufactures:

Exports 919 838 296 1,830 449 -75.5 .................

Imports 4,388 3,842 3,384 2,927 273 -90.7 .................

AGOA/GSP Imports 18 35 - 25 5 -80.3 ......

Special provisions:

Exports 4,800 2,333 4,502 2,989 2,497 -16.5 .................

Imports 701 940 981 2,596 1,432 -44.8 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 11,333 9,187 8,262 10,881 9,780 -10.1 .................

Imports 7,077 8,236 2,658 242 487 101.1 .................

AGOA/GSP Imports 1 8 6 19 1 -96.1 ......

Transportation equipment:

Exports 8,330 18,430 9,312 10,329 16,631 61.0 .................

Imports - - - 3 8 220.0 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 63,468 66,619 60,682 44,548 63,741 43.1 .................

Imports 26,935 31,568 34,495 35,288 27,229 -22.8 .................

AGOA/GSP Imports 3,644 4,936 3,114 1,392 899 -35.4 ......
323

Table B-2—Continued

Togo: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 12,396 314 3,020 380 1,212 219.2 .................

Imports 813 1,141 2, ................. 081 1,259 1,246 -1.0

AGOA/GSP Imports 39 155 1,442 233 145 -37.9 ......

Chemicals and related products:

Exports 759 1,780 1,040 507 1,435 182.8 .................

Imports - - - - 4,568 - .................

AGOA/GSP Imports - - - - - - ......

Electronic products:

Exports 1,105 5,812 12,563 1,252 3,203 155.9 .................

Imports 21 - 120 14 2 -83.3 .................

AGOA/GSP Imports - - - - - - ......

Energy-related products:

Exports - 49 21 33 33 -0.0 .................

Imports 4,034 - - 3,118 3,819 22.5 .................

AGOA/GSP Imports - - - 3,118 3,819 22.5 ......

Footwear:

Exports 2,229 606 275 596 429 -28.1 .................

Imports 2 - 1 - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 154 177 36 269 68 -74.9 .................

Imports 6 7 3 14 11 -25.2 .................

AGOA/GSP Imports 4 7 3 - 11 - ......

Machinery:

Exports 806 2,370 2,687 1,341 4,854 262.0 .................

Imports - - - 10 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 28 21 131 619 74 -88.1 .................

Imports 3 3 2 5 3 -51.4 .................

AGOA/GSP Imports 3 3 - 2 3 15.8 ......

Miscellaneous manufactures:

Exports 152 254 228 96 126 32.2 .................

Imports 140 309 378 247 534 116.4 .................

AGOA/GSP Imports 3 118 - - - - ......

Special provisions:

Exports 563 671 746 924 589 -36.3 .................

Imports 341 298 543 1,286 2,396 86.3 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 4,070 3,144 3,031 2,098 3,165 50.9 .................

Imports 128 190 42 23 4 -82.9 .................

AGOA/GSP Imports - - 0 3 - -100.0 ......

Transportation equipment:

Exports 2,882 10,114 1,842 2,367 966 -59.2 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 25,142 25,310 25,620 10,480 16,154 54.1 .................

Imports 5,488 1,950 3,170 5,975 12,583 110.6 .................

AGOA/GSP Imports 49 285 1,445 3,355 3,977 18.5 ......
324

Table B-2—Continued

Uganda: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 16,664 11,404 6,901 6,214 8,984 44.6 .................

Imports 37,184 12,687 19,225 21,124 15,723 -25.6 .................

AGOA/GSP Imports 481 51 26 - - - ......

Chemicals and related products:

Exports 2,475 1,183 2,281 1,942 3,328 71.4 .................

Imports 26 251 47 133 24 -81.6 .................

AGOA/GSP Imports 26 21 - - - - ......

Electronic products:

Exports 4,364 5,283 6,330 6,953 9,597 38.0 .................

Imports 9 10 8 292 9 -96.8 .................

AGOA/GSP Imports - 2 3 - - - ......

Energy-related products:

Exports - 27 20 43 5 -88.4 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports - 12 - 4 11 180.5 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 156 115 671 316 637 101.6 .................

Imports 15 25 10 14 27 96.7 .................

AGOA/GSP Imports 11 25 10 14 27 96.7 ......

Machinery:

Exports 4,933 2,722 1,639 2,421 2,457 1.5 .................

Imports - 66 - - 4 - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 635 450 50 3,733 266 -92.9 .................

Imports - 572 742 1,415 1,776 25.5 .................

AGOA/GSP Imports - - - 59 114 94.4 ......

Miscellaneous manufactures:

Exports 346 368 70 260 237 -9.0 .................

Imports 14 32 45 23 51 119.1 .................

AGOA/GSP Imports 11 6 6 2 - -100.0 ......

Special provisions:

Exports 2,277 1,976 1,172 1,386 2,788 101.1 .................

Imports 454 1,501 180 6,046 206 -96.6 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,178 2,159 2,466 2,419 2,386 -1.3 .................

Imports - 11 - 16 13 -13.6 .................

AGOA/GSP Imports - - - 4 - -100.0 ......

Transportation equipment:

Exports 1,094 1,986 2,919 1,075 1,453 35.2 .................

Imports 10 - - 2 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 35,122 27,685 24,518 26,766 32,150 20.1 .................

Imports 37,713 15,154 20,256 29,064 17,835 -38.6 .................

AGOA/GSP Imports 529 105 45 78 141 80.1 ......
325

Table B-2—Continued

Zambia: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 260 1,227 500 485 765 57.8 .................

Imports 378 1,301 2,004 1,385 1,213 -12.4 .................

AGOA/GSP Imports 118 276 134 229 95 -58.5 ......

Chemicals and related products:

Exports 2,981 1,021 961 2,913 2,208 -24.2 .................

Imports 471 5 - - - - .................

AGOA/GSP Imports - 5 - - - - ......

Electronic products:

Exports 6,365 4,154 3,397 4,310 3,124 -27.5 .................

Imports - 12 - 3 1 -69.7 .................

AGOA/GSP Imports - 6 - - - - ......

Energy-related products:

Exports 876 117 11 67 - -100.0 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 194 50 106 53 139 160.1 .................

Imports - - - 2 - -100.0 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 819 2,623 3,266 400 231 -42.1 .................

Imports 56 129 1,231 852 1,261 48.1 .................

AGOA/GSP Imports 24 104 2 132 677 411.5 ......

Machinery:

Exports 4,371 2,386 2,159 1,682 2,031 20.7 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Minerals and metals:

Exports 823 112 132 427 156 -63.5 .................

Imports 54,682 45,340 33,955 14,031 12,384 -11.7 .................

AGOA/GSP Imports 108 3 185 98 2 -97.6 ......

Miscellaneous manufactures:

Exports 491 212 233 57 196 243.6 .................

Imports 86 43 93 97 18 -81.8 .................

AGOA/GSP Imports - 13 - 7 - -100.0 ......

Special provisions:

Exports 3,231 1,794 3,016 3,146 1,758 -44.1 .................

Imports 113 337 566 1,099 481 -56.2 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 2,740 2,123 933 929 935 0.7 .................

Imports 117 2 8 258 227 -12.1 .................

AGOA/GSP Imports - - - - - - ......

Transportation equipment:

Exports 5,494 5,617 4,985 4,301 3,944 -8.3 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 28,645 21,435 19,700 18,770 15,487 -17.5 .................

Imports 55,904 47,170 37,857 17,727 15,584 -12.1 .................

AGOA/GSP Imports 251 408 321 466 775 66.3 ......
326

Table B-2—Continued

Zimbabwe: U.S. exports, imports, and AGOA/GSP imports, by major commodity sectors, 1997-2001

Percent Change

Sector 1997 1998 1999 2000 2001 2000-01

1,000 dollars

Agricultural products:

Exports 752 4,172 8,893 3,813 317 -91.7 .................

Imports 36,013 19,702 37,179 21,376 27,369 28.0 .................

AGOA/GSP Imports 9,464 7,393 10,535 14,076 10,247 -27.2 ......

Chemicals and related products:

Exports 12,689 8,919 4,889 4,751 6,082 28.0 .................

Imports 157 8 609 1,476 18 -98.8 .................

AGOA/GSP Imports 75 5 11 70 7 -90.2 ......

Electronic products:

Exports 17,066 9,724 9,861 10,877 4,151 -61.8 .................

Imports 23 364 7 13 73 447.9 .................

AGOA/GSP Imports - 23 5 - - - ......

Energy-related products:

Exports 306 68 47 9 28 232.7 .................

Imports - - - - - - .................

AGOA/GSP Imports - - - - - - ......

Footwear:

Exports 8 - 13 - - - .................

Imports 34 86 66 104 122 17.3 .................

AGOA/GSP Imports - - - - - - ......

Forest products:

Exports 1,801 992 1,294 1,465 2,346 60.1 .................

Imports 8,102 4,896 4,192 3,213 2,942 -8.5 .................

AGOA/GSP Imports 5,515 3,245 2,442 2,362 2,872 21.6 ......

Machinery:

Exports 18,345 23,644 10,858 6,822 6,585 -3.5 .................

Imports 7 39 - 46 50 10.2 .................

AGOA/GSP Imports 4 4 0 34 50 47.1 ......

Minerals and metals:

Exports 1,728 1,081 551 538 395 -26.6 .................

Imports 51,888 49,137 49,549 51,971 27,460 -47.2 .................

AGOA/GSP Imports 39,204 38,182 41,088 35,034 18,750 -46.5 ......

Miscellaneous manufactures:

Exports 773 1,083 208 300 655 118.1 .................

Imports 26,964 34,193 22,826 13,938 16,576 18.9 .................

AGOA/GSP Imports 25,496 32,651 21,185 9,665 12,100 25.2 ......

Special provisions:

Exports 3,622 2,304 1,702 1,897 1,014 -46.6 .................

Imports 1,209 2,172 1,913 1,034 583 -43.6 .................

AGOA/GSP Imports - - - - - - ......

Textiles and apparel:

Exports 3,158 1,719 2,121 1,695 651 -61.6 .................

Imports 9,844 12,589 18,727 19,871 15,332 -22.8 .................

AGOA/GSP Imports 13 26 2 10 11 11.3 ......

Transportation equipment:

Exports 18,627 30,158 17,088 20,607 8,941 -56.6 .................

Imports 206 9 5 - 36 - .................

AGOA/GSP Imports - - - - - - ......

All sectors:

Exports 78,876 83,865 57,525 52,773 31,166 -40.9 .................

Imports 134,447 123,198 135,073 113,043 90,560 -19.9 .................

AGOA/GSP Imports 79,770 81,529 75,268 61,251 44,037 -28.1 ......
327

Table B-3

Angola: Leading changes in sectoral trade, by sectors, 1997 and 2001

Change, 2001 from 1997

Sector 1997 2001 Absolute Percent

U.S. imports:

Electronic products . . . . . . . . . . . . . . . . . . . . $11,140 $479,645 $468,505 4206

Transportation equipment . . . . . . . . . . . . . . . 1,500 2,664 1,164 78

Special provisions . . . . . . . . . . . . . . . . . . . . . 4,137,684 5,864,773 1,727,089 42

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 0 76,880 76,880 0

Textiles and apparel . . . . . . . . . . . . . . . . . . . 0 0 00

Agricultural products . . . . . . . . . . . . . . . . . . 0 0 00

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 00

Forest products . . . . . . . . . . . . . . . . . . . . . . . 0 0 00

Energy-related products . . . . . . . . . . . . . . . . 2,788,572,210 2,768,666,191 -19,906,019 -1

Miscellaneous manufactures . . . . . . . . . . . . . 1,600,744 329,434 -1,271,310 -79

Chemicals and related products . . . . . . . . . . 129,742,288 249,928 -129,492,360 -100

Minerals and metals . . . . . . . . . . . . . . . . . . . 462,354 0 -462,354 -100

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,924,527,920 $2,775,669,515 -$148,858,405 -5

U.S. exports:

Chemicals and related products . . . . . . . . . . $9,959,270 $15,109,739 $5,150,469 52

Transportation equipment . . . . . . . . . . . . . . . 119,519,889 147,643,149 28,123,260 24

Minerals and metals . . . . . . . . . . . . . . . . . . . 17,956,969 20,003,775 2,046,806 11

Agricultural products . . . . . . . . . . . . . . . . . . 27,916,809 27,960,364 43,555 0

Special provisions . . . . . . . . . . . . . . . . . . . . . 6,780,887 5,405,673 -1,375,214 -20

Energy-related products . . . . . . . . . . . . . . . . 2,044,220 1,453,292 -590,928 -29

Electronic products . . . . . . . . . . . . . . . . . . . . 20,632,716 14,605,296 -6,027,420 -29

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 59,504,518 36,130,157 -23,374,361 -39

Textiles and apparel . . . . . . . . . . . . . . . . . . . 9,077,109 4,402,361 -4,674,748 -52

Miscellaneous manufactures . . . . . . . . . . . . . 2,490,691 982,567 -1,508,124 -61

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 479,116 173,615 -305,501 -64

Forest products . . . . . . . . . . . . . . . . . . . . . . . 2,747,465 924,283 -1,823,182 -66

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $279,109,659 $274,794,271 -$4,315,388 -2

Total Trade:

Transportation equipment . . . . . . . . . . . . . . . $119,521,389 $147,645,813 $28,124,424 24

Minerals and metals . . . . . . . . . . . . . . . . . . . 18,419,323 20,003,775 1,584,452 9

Special provisions . . . . . . . . . . . . . . . . . . . . . 10,918,571 11,270,446 351,875 3

Agricultural products . . . . . . . . . . . . . . . . . . 27,916,809 27,960,364 43,555 0

Energy-related products . . . . . . . . . . . . . . . . 2,790,616,430 2,770,119,483 -20,496,947 -1

Electronic products . . . . . . . . . . . . . . . . . . . . 20,643,856 15,084,941 -5,558,915 -27

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 59,504,518 36,207,037 -23,297,481 -39

Textiles and apparel . . . . . . . . . . . . . . . . . . . 9,077,109 4,402,361 -4,674,748 -52

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 479,116 173,615 -305,501 -64

Forest products . . . . . . . . . . . . . . . . . . . . . . . 2,747,465 924,283 -1,823,182 -66

Miscellaneous manufactures . . . . . . . . . . . . . 4,091,435 1,312,001 -2,779,434 -68

Chemicals and related products . . . . . . . . . . 139,701,558 15,359,667 -124,341,891 -89

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,203,637,579 $3,050,463,786 -$153,173,793 -5
328

Table B-3—Continued

Congo -ROC: Leading changes in sectoral trade, by sectors, 1997 and 2001

Change, 2001 from 1997

Sector 1997 2001 Absolute Percent

U.S. imports:

Electronic products . . . . . . . . . . . . . . . . . . . . $33,516 $137,506 $103,990 310

Textiles and apparel . . . . . . . . . . . . . . . . . . . 1,210 3,548 2,338 193

Special provisions . . . . . . . . . . . . . . . . . . . . . 380,789 746,981 366,192 96

Miscellaneous manufactures . . . . . . . . . . . . . 686,129 1,115,035 428,906 63

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 13,780 21,644 7,864 57

Energy-related products . . . . . . . . . . . . . . . . 424,628,349 438,807,655 14,179,306 3

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 00

Minerals and metals . . . . . . . . . . . . . . . . . . . 14,943,991 14,525,027 -418,964 -3

Forest products . . . . . . . . . . . . . . . . . . . . . . . 3,237,643 681,553 -2,556,090 -79

Agricultural products . . . . . . . . . . . . . . . . . . 6,723,124 1,196,206 -5,526,918 -82

Chemicals and related products . . . . . . . . . . 10,101,582 665,726 -9,435,856 -93

Transportation equipment . . . . . . . . . . . . . . . 12,000 0 -12,000 -100

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $460,762,113 $457,900,881 -$2,861,232 -1

U.S. exports:

Forest products . . . . . . . . . . . . . . . . . . . . . . . $81,359 $416,715 $335,356 412

Agricultural products . . . . . . . . . . . . . . . . . . 5,215,424 14,325,350 9,109,926 175

Miscellaneous manufactures . . . . . . . . . . . . . 106,873 226,856 119,983 112

Transportation equipment . . . . . . . . . . . . . . . 23,577,980 46,299,915 22,721,935 96

Special provisions . . . . . . . . . . . . . . . . . . . . . 2,644,274 2,573,017 -71,257 -3

Electronic products . . . . . . . . . . . . . . . . . . . . 6,020,905 5,777,921 -242,984 -4

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 12,379,424 8,439,409 -3,940,015 -32

Textiles and apparel . . . . . . . . . . . . . . . . . . . 6,494,202 4,191,030 -2,303,172 -35

Minerals and metals . . . . . . . . . . . . . . . . . . . 10,710,453 5,600,914 -5,109,539 -48

Chemicals and related products . . . . . . . . . . 4,405,220 1,379,876 -3,025,344 -69

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 504,757 21,808 -482,949 -96

Energy-related products . . . . . . . . . . . . . . . . 3,114,953 91,024 -3,023,929 -97

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,255,823 $89,343,835 $14,088,012 19

Total Trade:

Transportation equipment . . . . . . . . . . . . . . . $23,589,980 $46,299,915 $22,709,935 96

Miscellaneous manufactures . . . . . . . . . . . . . 793,002 1,341,891 548,889 69

Agricultural products . . . . . . . . . . . . . . . . . . 11,938,548 15,521,556 3,583,008 30

Special provisions . . . . . . . . . . . . . . . . . . . . . 3,025,063 3,319,998 294,935 10

Energy-related products . . . . . . . . . . . . . . . . 427,743,302 438,898,679 11,155,377 3

Electronic products . . . . . . . . . . . . . . . . . . . . 6,054,421 5,915,427 -138,994 -2

Minerals and metals . . . . . . . . . . . . . . . . . . . 25,654,444 20,125,941 -5,528,503 -22

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 12,393,204 8,461,053 -3,932,151 -32

Textiles and apparel . . . . . . . . . . . . . . . . . . . 6,495,412 4,194,578 -2,300,834 -35

Forest products . . . . . . . . . . . . . . . . . . . . . . . 3,319,002 1,098,268 -2,220,734 -67

Chemicals and related products . . . . . . . . . . 14,506,802 2,045,602 -12,461,200 -86

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 504,757 21,808 -482,949 -96

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $536,017,936 $547,244,716 $11,226,780 2
329

Table B-3—Continued

Côte d’Ivoire: Leading changes in sectoral trade, by sectors, 1997 and 2001

Change, 2001 from 1997

Sector 1997 2001 Absolute Percent

U.S. imports:

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,343 $81,187 $58,844 263

Electronic products . . . . . . . . . . . . . . . . . . . . 1,321,434 2,967,834 1,646,400 125

Energy-related products . . . . . . . . . . . . . . . . 32,572,425 72,039,665 39,467,240 121

Forest products . . . . . . . . . . . . . . . . . . . . . . . 5,692,896 9,668,667 3,975,771 70

Special provisions . . . . . . . . . . . . . . . . . . . . . 1,068,914 1,525,906 456,992 43

Miscellaneous manufactures . . . . . . . . . . . . . 1,906,630 2,282,796 376,166 20

Agricultural products . . . . . . . . . . . . . . . . . . 226,738,451 226,899,416 160,965 0

Textiles and apparel . . . . . . . . . . . . . . . . . . . 856,162 527,098 -329,064 -38

Minerals and metals . . . . . . . . . . . . . . . . . . . 2,063,012 854,276 -1,208,736 -59

Transportation equipment . . . . . . . . . . . . . . . 75,255 24,407 -50,848 -68

Chemicals and related products . . . . . . . . . . 13,164,093 2,939,777 -10,224,316 -78

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 108,440 12,250 -96,190 -89

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $285,590,055 $319,823,279 $34,233,224 12

U.S. exports:

Energy-related products . . . . . . . . . . . . . . . . $889,698 $6,377,356 $5,487,658 617

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,009 829,639 675,630 439

Miscellaneous manufactures . . . . . . . . . . . . . 510,428 906,657 396,229 78

Electronic products . . . . . . . . . . . . . . . . . . . . 7,637,904 11,262,983 3,625,079 47

Textiles and apparel . . . . . . . . . . . . . . . . . . . 9,111,124 5,481,002 -3,630,122 -40

Agricultural products . . . . . . . . . . . . . . . . . . 20,579,999 12,119,693 -8,460,306 -41

Chemicals and related products . . . . . . . . . . 39,013,799 21,987,071 -17,026,728 -44

Forest products . . . . . . . . . . . . . . . . . . . . . . . 7,172,361 3,905,443 -3,266,918 -46

Transportation equipment . . . . . . . . . . . . . . . 29,009,754 15,336,970 -13,672,783 -47

Minerals and metals . . . . . . . . . . . . . . . . . . . 5,230,487 2,467,913 -2,762,574 -53

Special provisions . . . . . . . . . . . . . . . . . . . . . 4,072,814 1,744,927 -2,327,887 -57

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 26,360,723 11,021,416 -15,339,308 -58

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $149,743,100 $93,441,070 -$56,302,030 -38

Total Trade:

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . $176,352 $910,826 $734,474 416

Energy-related products . . . . . . . . . . . . . . . . 33,462,123 78,417,021 44,954,898 134

Electronic products . . . . . . . . . . . . . . . . . . . . 8,959,338 14,230,817 5,271,479 59

Miscellaneous manufactures . . . . . . . . . . . . . 2,417,058 3,189,453 772,395 32

Forest products . . . . . . . . . . . . . . . . . . . . . . . 12,865,257 13,574,110 708,853 6

Agricultural products . . . . . . . . . . . . . . . . . . 247,318,450 239,019,109 -8,299,341 -3

Special provisions . . . . . . . . . . . . . . . . . . . . . 5,141,728 3,270,833 -1,870,895 -36

Textiles and apparel . . . . . . . . . . . . . . . . . . . 9,967,286 6,008,100 -3,959,186 -40

Transportation equipment . . . . . . . . . . . . . . . 29,085,009 15,361,377 -13,723,631 -47

Chemicals and related products . . . . . . . . . . 52,177,892 24,926,848 -27,251,044 -52

Minerals and metals . . . . . . . . . . . . . . . . . . . 7,293,499 3,322,189 -3,971,310 -54

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 26,469,163 11,033,666 -15,435,498 -58

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $435,333,155 $413,264,349 -$22,068,806 -5
330

Table B-3—Continued

Eq Guinea: Leading changes in sectoral trade, by sectors, 1997 and 2001

Change, 2001 from 1997

Sector 1997 2001 Absolute Percent

U.S. imports:

Energy-related products . . . . . . . . . . . . . . . . $28,573,295 $355,083,254 $326,509,959 1143

Special provisions . . . . . . . . . . . . . . . . . . . . . 1,097,743 3,252,928 2,155,185 196

Chemicals and related products . . . . . . . . . . 0 37,250,554 37,250,554 0

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 00

Miscellaneous manufactures . . . . . . . . . . . . . 0 0 00

Agricultural products . . . . . . . . . . . . . . . . . . 0 0 00

Textiles and apparel . . . . . . . . . . . . . . . . . . . 0 0 00

Transportation equipment . . . . . . . . . . . . . . . 0 0 00

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 00

Electronic products . . . . . . . . . . . . . . . . . . . . 96,046 5,954 -90,092 -94

Forest products . . . . . . . . . . . . . . . . . . . . . . . 631,127 16,414 -614,713 -97

Minerals and metals . . . . . . . . . . . . . . . . . . . 86,761 0 -86,761 -100

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,484,972 $395,609,104 $365,124,132 1198

U.S. exports:

Minerals and metals . . . . . . . . . . . . . . . . . . . $421,056 $10,990,656 $10,569,600 2510

Agricultural products . . . . . . . . . . . . . . . . . . 78,633 1,146,616 1,067,983 1358

Energy-related products . . . . . . . . . . . . . . . . 224,232 1,328,164 1,103,932 492

Electronic products . . . . . . . . . . . . . . . . . . . . 265,128 953,620 688,492 260

Chemicals and related products . . . . . . . . . . 405,017 1,252,667 847,650 209

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,041 16,157 7,116 79

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 4,855,825 7,408,313 2,552,488 53

Transportation equipment . . . . . . . . . . . . . . . 39,320,916 54,673,720 15,352,804 39

Miscellaneous manufactures . . . . . . . . . . . . . 303,715 405,366 101,651 33

Special provisions . . . . . . . . . . . . . . . . . . . . . 1,073,886 1,276,964 203,078 19

Forest products . . . . . . . . . . . . . . . . . . . . . . . 41,626 42,420 794 2

Textiles and apparel . . . . . . . . . . . . . . . . . . . 63,942 63,324 -618 -1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $47,063,017 $79,557,987 $32,494,970 69

Total Trade:

Chemicals and related products . . . . . . . . . . $405,017 $38,503,221 $38,098,204 9407

Minerals and metals . . . . . . . . . . . . . . . . . . . 507,817 10,990,656 10,482,839 2064

Agricultural products . . . . . . . . . . . . . . . . . . 78,633 1,146,616 1,067,983 1358

Energy-related products . . . . . . . . . . . . . . . . 28,797,527 356,411,418 327,613,891 1138

Electronic products . . . . . . . . . . . . . . . . . . . . 361,174 959,574 598,400 166

Special provisions . . . . . . . . . . . . . . . . . . . . . 2,171,629 4,529,892 2,358,263 109

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,041 16,157 7,116 79

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 4,855,825 7,408,313 2,552,488 53

Transportation equipment . . . . . . . . . . . . . . . 39,320,916 54,673,720 15,352,804 39

Miscellaneous manufactures . . . . . . . . . . . . . 303,715 405,366 101,651 33

Textiles and apparel . . . . . . . . . . . . . . . . . . . 63,942 63,324 -618 -1

Forest products . . . . . . . . . . . . . . . . . . . . . . . 672,753 58,834 -613,919 -91

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $77,547,989 $475,167,091 $397,619,102 513
331

Table B-3—Continued

Gabon: Leading changes in sectoral trade, by sectors, 1997 from 2001

Change, 2001 from 1997

Sector 1997 2001 Absolute Percent

U.S. imports:

Forest products . . . . . . . . . . . . . . . . . . . . . . . $265,070 $5,516,563 $5,251,493 1981

Miscellaneous manufactures . . . . . . . . . . . . . 330,927 2,998,136 2,667,209 806

Agricultural products . . . . . . . . . . . . . . . . . . 387,154 637,793 250,639 65

Transportation equipment . . . . . . . . . . . . . . . 0 29,500 29,500 0

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 0 2,440 2,440 0

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 00

Minerals and metals . . . . . . . . . . . . . . . . . . . 22,223,554 21,592,561 -630,993 -3

Energy-related products . . . . . . . . . . . . . . . . 1,931,920,582 1,680,342,099 -251,578,483 -13

Special provisions . . . . . . . . . . . . . . . . . . . . . 3,306,009 2,364,572 -941,437 -28

Textiles and apparel . . . . . . . . . . . . . . . . . . . 33,438 13,053 -20,385 -61

Chemicals and related products . . . . . . . . . . 63,512,870 18,171,900 -45,340,970 -71

Electronic products . . . . . . . . . . . . . . . . . . . . 295,223 2,500 -292,723 -99

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,022,274,827 $1,731,671,117 -$290,603,710 -14

U.S. exports:

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,813 $582,156 $571,343 5284

Agricultural products . . . . . . . . . . . . . . . . . . 1,882,114 4,415,667 2,533,553 135

Textiles and apparel . . . . . . . . . . . . . . . . . . . 659,445 1,494,687 835,242 127

Miscellaneous manufactures . . . . . . . . . . . . . 274,405 388,892 114,487 42

Transportation equipment . . . . . . . . . . . . . . . 38,917,316 46,567,648 7,650,332 20

Chemicals and related products . . . . . . . . . . 2,098,573 2,235,734 137,161 7

Energy-related products . . . . . . . . . . . . . . . . 2,247,782 1,526,408 -721,374 -32

Electronic products . . . . . . . . . . . . . . . . . . . . 4,975,725 2,874,801 -2,100,924 -42

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 14,702,967 8,060,627 -6,642,340 -45

Forest products . . . . . . . . . . . . . . . . . . . . . . . 1,250,555 576,162 -674,393 -54

Special provisions . . . . . . . . . . . . . . . . . . . . . 3,640,678 1,657,787 -1,982,891 -54

Minerals and metals . . . . . . . . . . . . . . . . . . . 10,362,996 3,708,634 -6,654,362 -64

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $81,023,369 $74,089,203 -$6,934,166 -9

Total Trade:

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,813 $582,156 $571,343 5284

Miscellaneous manufactures . . . . . . . . . . . . . 605,332 3,387,028 2,781,696 460

Forest products . . . . . . . . . . . . . . . . . . . . . . . 1,515,625 6,092,725 4,577,100 302

Agricultural products . . . . . . . . . . . . . . . . . . 2,269,268 5,053,460 2,784,192 123

Textiles and apparel . . . . . . . . . . . . . . . . . . . 692,883 1,507,740 814,857 118

Transportation equipment . . . . . . . . . . . . . . . 38,917,316 46,597,148 7,679,832 20

Energy-related products . . . . . . . . . . . . . . . . 1,934,168,364 1,681,868,507 -252,299,857 -13

Minerals and metals . . . . . . . . . . . . . . . . . . . 32,586,550 25,301,195 -7,285,355 -22

Special provisions . . . . . . . . . . . . . . . . . . . . . 6,946,687 4,022,359 -2,924,328 -42

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 14,702,967 8,063,067 -6,639,900 -45

Electronic products . . . . . . . . . . . . . . . . . . . . 5,270,948 2,877,301 -2,393,647 -45

Chemicals and related products . . . . . . . . . . 65,611,443 20,407,634 -45,203,809 -69

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,103,298,196 $1,805,760,320 -$297,537,876 -14
332

Table B-3—Continued

Ghana: Leading changes in sectoral trade, by sectors, 1997 and 2001

Change, 2001 from 1997

Sector 1997 2001 Absolute Percent

U.S. imports:

Transportation equipment . . . . . . . . . . . . . . . $2,000 $251,079 $249,079 12454

Special provisions . . . . . . . . . . . . . . . . . . . . . 562,839 5,111,940 4,549,101 808

Agricultural products . . . . . . . . . . . . . . . . . . 16,000,401 58,092,536 42,092,135 263

Forest products . . . . . . . . . . . . . . . . . . . . . . . 16,259,697 31,262,597 15,002,900 92

Energy-related products . . . . . . . . . . . . . . . . 0 56,145,182 56,145,182 0

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 350 -50 -13

Electronic products . . . . . . . . . . . . . . . . . . . . 51,802 44,568 -7,234 -14

Miscellaneous manufactures . . . . . . . . . . . . . 1,413,170 1,026,199 -386,971 -27

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 83,486 38,273 -45,213 -54

Textiles and apparel . . . . . . . . . . . . . . . . . . . 1,259,882 412,513 -847,369 -67

Minerals and metals . . . . . . . . . . . . . . . . . . . 116,440,071 32,482,059 -83,958,012 -72

Chemicals and related products . . . . . . . . . . 1,995,349 523,992 -1,471,357 -74

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $154,069,097 $185,391,288 $31,322,191 20

U.S. exports:

Electronic products . . . . . . . . . . . . . . . . . . . . $15,134,733 $16,712,923 $1,578,191 10

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 884,952 857,050 -27,902 -3

Special provisions . . . . . . . . . . . . . . . . . . . . . 13,522,784 11,212,490 -2,310,294 -17

Agricultural products . . . . . . . . . . . . . . . . . . 53,355,971 41,895,827 -11,460,144 -21

Chemicals and related products . . . . . . . . . . 45,998,787 29,426,484 -16,572,303 -36

Energy-related products . . . . . . . . . . . . . . . . 10,735,970 5,862,857 -4,873,113 -45

Textiles and apparel . . . . . . . . . . . . . . . . . . . 13,237,281 6,862,963 -6,374,318 -48

Transportation equipment . . . . . . . . . . . . . . . 82,610,953 40,931,011 -41,679,942 -50

Miscellaneous manufactures . . . . . . . . . . . . . 7,353,627 3,195,186 -4,158,441 -57

Forest products . . . . . . . . . . . . . . . . . . . . . . . 7,059,055 2,848,223 -4,210,832 -60

Minerals and metals . . . . . . . . . . . . . . . . . . . 13,475,802 4,758,180 -8,717,622 -65

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 49,430,786 14,909,658 -34,521,127 -70

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $312,800,701 $179,472,853 -$133,327,848 -43

Total Trade:

Energy-related products . . . . . . . . . . . . . . . . $10,735,970 $62,008,039 $51,272,069 478

Forest products . . . . . . . . . . . . . . . . . . . . . . . 23,318,752 34,110,820 10,792,068 46

Agricultural products . . . . . . . . . . . . . . . . . . 69,356,372 99,988,363 30,631,991 44

Special provisions . . . . . . . . . . . . . . . . . . . . . 14,085,623 16,324,430 2,238,807 16

Electronic products . . . . . . . . . . . . . . . . . . . . 15,186,535 16,757,491 1,570,957 10

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 885,352 857,400 -27,952 -3

Chemicals and related products . . . . . . . . . . 47,994,136 29,950,476 -18,043,660 -38

Textiles and apparel . . . . . . . . . . . . . . . . . . . 14,497,163 7,275,476 -7,221,687 -50

Transportation equipment . . . . . . . . . . . . . . . 82,612,953 41,182,090 -41,430,863 -50

Miscellaneous manufactures . . . . . . . . . . . . . 8,766,797 4,221,385 -4,545,412 -52

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 49,514,272 14,947,931 -34,566,340 -70

Minerals and metals . . . . . . . . . . . . . . . . . . . 129,915,873 37,240,239 -92,675,634 -71

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $466,869,798 $364,864,141 -$102,005,657 -22
333

Table B-3—Continued

South Africa: Leading changes in sectoral trade, by sectors, 1997 and 2001

Change, 2001 from 1997

Sector 1997 2001 Absolute Percent

U.S. imports:

Transportation equipment . . . . . . . . . . . . . . . $77,832,151 $398,483,889 $320,651,738 412

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 65,243,368 258,350,549 193,107,181 296

Miscellaneous manufactures . . . . . . . . . . . . . 17,720,286 56,841,445 39,121,159 221

Electronic products . . . . . . . . . . . . . . . . . . . . 12,941,209 28,222,751 15,281,542 118

Textiles and apparel . . . . . . . . . . . . . . . . . . . 103,976,276 212,457,456 108,481,180 104

Minerals and metals . . . . . . . . . . . . . . . . . . . 1,705,875,173 2,783,623,633 1,077,748,460 63

Chemicals and related products . . . . . . . . . . 183,135,610 283,066,037 99,930,427 55

Energy-related products . . . . . . . . . . . . . . . . 43,859,830 66,488,693 22,628,863 52

Special provisions . . . . . . . . . . . . . . . . . . . . . 82,047,148 120,163,031 38,115,883 46

Agricultural products . . . . . . . . . . . . . . . . . . 149,808,191 173,168,763 23,360,572 16

Forest products . . . . . . . . . . . . . . . . . . . . . . . 52,782,249 48,456,371 -4,325,878 -8

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,354 216,568 -24,786 -10

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,495,462,845 $4,429,539,186 $1,934,076,341 78

U.S. exports:

Transportation equipment . . . . . . . . . . . . . . . $619,861,493 $1,098,514,994 $478,653,501 77

Chemicals and related products . . . . . . . . . . 436,997,808 460,718,170 23,720,362 5

Miscellaneous manufactures . . . . . . . . . . . . . 52,081,749 46,388,597 -5,693,152 -11

Special provisions . . . . . . . . . . . . . . . . . . . . . 144,885,434 117,209,291 -27,676,143 -19

Minerals and metals . . . . . . . . . . . . . . . . . . . 122,695,307 97,322,642 -25,372,665 -21

Electronic products . . . . . . . . . . . . . . . . . . . . 529,414,641 394,658,181 -134,756,460 -25

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 433,479,976 285,221,104 -148,258,872 -34

Energy-related products . . . . . . . . . . . . . . . . 144,949,793 94,076,249 -50,873,544 -35

Textiles and apparel . . . . . . . . . . . . . . . . . . . 46,119,428 28,712,228 -17,407,200 -38

Forest products . . . . . . . . . . . . . . . . . . . . . . . 157,767,456 96,753,229 -61,014,227 -39

Agricultural products . . . . . . . . . . . . . . . . . . 229,439,341 100,677,674 -128,761,667 -56

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,704,050 2,101,182 -6,602,868 -76

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,926,396,476 $2,822,353,542 -$104,042,934 -4

Total Trade:

Transportation equipment . . . . . . . . . . . . . . . $697,693,644 $1,496,998,883 $799,305,239 115

Textiles and apparel . . . . . . . . . . . . . . . . . . . 150,095,704 241,169,684 91,073,980 61

Minerals and metals . . . . . . . . . . . . . . . . . . . 1,828,570,480 2,880,946,275 1,052,375,795 58

Miscellaneous manufactures . . . . . . . . . . . . . 69,802,035 103,230,042 33,428,007 48

Chemicals and related products . . . . . . . . . . 620,133,418 743,784,207 123,650,789 20

Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . 498,723,344 543,571,653 44,848,309 9

Special provisions . . . . . . . . . . . . . . . . . . . . . 226,932,582 237,372,322 10,439,740 5

Energy-related products . . . . . . . . . . . . . . . . 188,809,623 160,564,942 -28,244,681 -15

Electronic products . . . . . . . . . . . . . . . . . . . . 542,355,850 422,880,932 -119,474,918 -22

Agricultural products . . . . . . . . . . . . . . . . . . 379,247,532 273,846,437 -105,401,095 -28

Forest products . . . . . . . . . . . . . . . . . . . . . . . 210,549,705 145,209,600 -65,340,105 -31

Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,945,404 2,317,750 -6,627,654 -74

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,421,859,321 $7,251,892,728 $1,830,033,407 34

Note.—Calculations based on unrounded data.

Source: Compiled from official statiscs of the U.S. Department of Census.
334

Table B-4

U.S. imports under AGOA, 2001, Jan.-June 2001, and Jan.-June 2002

SECTOR/Country

AGOA

(includes

GSP)

2001

GSP

2001

AGOA

(includes GSP)

Jan.-June

2001

GSP

Jan.-June

2001

AGOA

(includes GSP)

Jan.-June

2002

GSP

Jan.-June

2002

Agricultural products

South Africa . . . . . . . . . $78,750,025 $29,638,422 $24,672,014 $13,076,698 $44,287,641 $11,975,185

Malawi . . . . . . . . . . . . 30,561,202 23,302,051 16,741,127 16,741,127 16,282,211 1,425,404

Cote d’Ivoire . . . . . . . . 12,594,669 12,594,669 6,132,744 6,132,744 8,761,178 8,761,178

Mauritius . . . . . . . . . . . 10,161,871 10,161,871 1,271,116 1,271,116 1,204,879 1,204,879

Swaziland . . . . . . . . . . 6,487,424 6,369,003 6,748 0 125,741 0

Mozambique . . . . . . . . 5,253,319 5,253,319 0 0 0 0

Kenya . . . . . . . . . . . . . 3,016,351 599,371 171,228 147,611 1,254,224 609,601

Madagascar ........ 2,483,874 24,838,874 2,397,692 2,397,692 2,346,161 2,346,161

Ghana . . . . . . . . . . . . . 2,270,530 2,264,374 925,752 925,752 1,539,442 1,539,442

Ethiopia . . . . . . . . . . . . 655,279 603,165 270,195 270,195 719,733 698,012

Tanzania . . . . . . . . . . . 636,329 620,610 94,286 83,968 432,852 150,376

Cameroon . . . . . . . . . . 163,596 163,596 158,063 158,063 0 0

Nigeria . . . . . . . . . . . . 153,147 153,147 86,219 86,219 67,281 67,281

Cape Verde . . . . . . . . . 151,760 151,760 74,760 74,760 0 0

Zambia . . . . . . . . . . . . 95,268 85,508 53,668 43,908 23,920 0

Namibia . . . . . . . . . . . 26,060 26,060 2,300 2,300 0 0

Botswana . . . . . . . . . . . 19,268 19,268 0 0 13,285 13,285

Sierra Leone . . . . . . . . 18,138 18,138 14,839 14,839 42,950 42,950

Mali . . . . . . . . . . . . . . . 14,875 14,875 14,875 14,875 15,700 15,700

Senegal . . . . . . . . . . . . 2,400 2,400 2,400 2,400 0 0

Congo (ROC) . . . . . . . . 0 0 0 0 2,785,829 2,785,829

Guinea . . . . . . . . . . . . 0 0 0 0 7,450 7,450

Uganda . . . . . . . . . . . . 0 0 0 0 9,253 0

Sector Total ......... $153,515,385 $116,880,481 $53,090,026 $41,444,267 $79,919,730 $31,642,733

Chemicals and related

products

South Africa . . . . . . . . . $126,010,777 $123,569,482 $61,908,922 $61,341,124 $64,538,293 $61,746,004

Kenya . . . . . . . . . . . . . 1,148,061 42,370 165,476 18,236 659,378 28,709

Senegal . . . . . . . . . . . . 406,720 406,720 242,400 242,400 205,000 205,000

Rwanda . . . . . . . . . . . . 265,240 0 0 0 0 0

Swaziland . . . . . . . . . . 85,123 85,123 16,734 16,734 47,648 47,648

Cameroon . . . . . . . . . . 47,959 47,959 47,959 47,959 0 0

Niger . . . . . . . . . . . . . . 41,597 41,597 41,597 41,597 0 0

Lesotho . . . . . . . . . . . . 38,987 38,987 0 0 168,869 168,869

Tanzania . . . . . . . . . . . 20,965 20,965 20,088 20,088 0 0

Mauritius . . . . . . . . . . . 9,061 9,061 9,061 9,061 6,948 6,948

Cote d’Ivoire . . . . . . . . 4,657 4,657 4,657 4,657 0 0

Botswana . . . . . . . . . . . 1,857 1,857 1,857 1,857 0 0

Ghana . . . . . . . . . . . . . 876 876 0 0 1,240 1,240

Sierra Leone . . . . . . . . 645 645 0 0 0 0

Mozambique . . . . . . . . 470 470 470 470 0 0

Nigeria . . . . . . . . . . . . 360 360 0 0 0 0

Madagascar ........ 0 0 0 0 3,267 3,267

Mali . . . . . . . . . . . . . . . 0 0 0 0 6,048 6,048

Ethiopia . . . . . . . . . . . . 0 0 0 0 3,800 3,800

Sector Total ......... $128,083,355 $124,271,129 $62,459,221 $61,744,183 $65,640,491 $62,217,533
335

Table B-4—Continued

U.S. imports under AGOA, 2001, Jan.-June 2001, and Jan.-June 2002

SECTOR/Country

AGOA

(includes

GSP)

2001

GSP

2001

AGOA

(includes GSP)

Jan.-June

2001

GSP

Jan.-June

2001

AGOA

(includes GSP)

Jan.-June

2002

GSP

Jan.-June

2002

Electronic products

South Africa . . . . . . . . . $5,476,029 $5,476,029 $2,115,419 $2,115,419 $3,619,294 $3,617,992

Seychelles . . . . . . . . . . 4,229,500 4,229,500 2,233,000 2,233,000 0 0

Mauritius . . . . . . . . . . . 2,944,540 2,944,540 1,758,186 1,758,186 906,019 906,019

Madagascar ........ 307,129 307,129 233,094 233,094 42,075 42,075

Sierra Leone . . . . . . . . 94,630 94,630 94,630 94,630 0 0

Nigeria . . . . . . . . . . . . 46,098 46,098 0 0 0 0

Cote d’Ivoire . . . . . . . . 39,054 39,054 2,890 2,890 0 0

Kenya . . . . . . . . . . . . . 28,667 28,667 28,667 28,667 0 0

Ethiopia . . . . . . . . . . . . 3,408 3,408 0 0 0 0

Tanzania . . . . . . . . . . . 2,300 2,300 2,300 2,300 0 0

Ghana . . . . . . . . . . . . . 2,300 2,300 0 0 0 0

Mauritania . . . . . . . . . 0 0 0 0 15,138 15,138

Sector Total ......... $13,173,655 $13,173,655 $6,468,186 $6,468,186 $4,582,526 $4,581,224

Energy-related products

Nigeria . . . . . . . . . . . . . $5,688,029,650 $0 $2,334,835,625 $0 $2,340,523,043 $0

Gabon . . . . . . . . . . . . . 938,694,584 0 448,483,013 0 608,234,779 0

Congo (ROC) . . . . . . . . 128,746,327 0 13,319,860 0 42,613,598 0

Cameroon . . . . . . . . . . 36,731,102 0 16,247,645 0 22,656,553 0

Ghana . . . . . . . . . . . . . 33,085,849 0 18,944,834 0 17,012,778 0

South Africa . . . . . . . . 2,136,484 2,378 738,293 2,378 0 0

Cote d’Ivoire . . . . . . . . 0 0 0 0 6,833,198 0

Sector Total ......... $6,827,423,996 $2,378 $2,832,569,270 $2,378 $3,037,873,949 $0

Footwear

South Africa . . . . . . . . . $171,002 $0 $105,964 $0 $126,331 $0

Nigeria . . . . . . . . . . . . 71,010 0 71,010 0 522 0

Kenya . . . . . . . . . . . . . 0 0 0 0 6,024 0

Tanzania . . . . . . . . . . . 0 0 0 0 1,990 0

Senegal . . . . . . . . . . . . 0 0 0 0 450 0

Ethiopia . . . . . . . . . . . . 0 0 0 0 320 0

Sector Total ......... $242,012 $0 $176,974 $0 $135,637 $0

Forest products

South Africa . . . . . . . . . $9,140,804 $9,140,804 $5,011,174 $5,011,174 $6,138,458 $6,126,936

Ghana . . . . . . . . . . . . . 6,863,038 6,863,038 4,565,670 4,565,670 3,649,207 3,649,207

Kenya . . . . . . . . . . . . . 2,317,479 2,312,372 1,128,201 1,128,201 1,001,969 1,001,969

Madagascar ........ 1,140,210 1,079,503 627,299 627,299 545,581 373,827

Zambia . . . . . . . . . . . . 677,446 677,446 668,030 668,030 18,039 18,039

Cote d’Ivoire . . . . . . . . 456,388 456,388 271,585 271,585 59,284 59,284

Tanzania . . . . . . . . . . . 223,830 223,830 79,109 79,109 126,326 126,326

Benin . . . . . . . . . . . . . . 178,319 178,319 0 0 0 0

Cameroon . . . . . . . . . . 159,748 159,748 37,866 37,866 91,669 91,669

Mali . . . . . . . . . . . . . . . 153,462 153,462 105,595 105,595 15,363 15,363

Guinea . . . . . . . . . . . . 112,902 112,902 59,740 59,740 9,240 9,240

Namibia . . . . . . . . . . . 67,047 67,047 0 0 120,954 120,954

Gabon . . . . . . . . . . . . . 65,276 65,276 18,188 18,188 121,276 121,276

Senegal . . . . . . . . . . . . 58,327 58,327 27,406 27,406 10,760 10,760

Uganda . . . . . . . . . . . . 27,148 27,148 3,143 3,143 2,567 2,567

Lesotho . . . . . . . . . . . . 22,790 22,790 0 0 0 0

Rwanda . . . . . . . . . . . . 20,230 20,230 0 0 10,100 10,100
336

Table B-4—Continued

U.S. imports under AGOA, 2001, Jan.-June 2001, and Jan.-June 2002

SECTOR/Country

AGOA

(includes

GSP)

2001

GSP

2001

AGOA

(includes GSP)

Jan.-June

2001

GSP

Jan.-June

2001

AGOA

(includes GSP)

Jan.-June

2002

GSP

Jan.-June

2002

Forest

products—Continued

Nigeria . . . . . . . . . . . . 19,000 19,000 0 0 6,686 5,686

Mozambique . . . . . . . . 8,081 8,081 4,655 4,655 4,153 4,153

Mauritius . . . . . . . . . . . 5,870 5,870 3,671 3,671 0 0

Sierra Leone . . . . . . . . 3,000 3,000 3,000 3,000 0 0

Swaziland . . . . . . . . . . 2,622 2,202 0 0 0 0

Congo (ROC) . . . . . . . . 2,453 2,453 2,453 2,453 0 0

Malawi . . . . . . . . . . . . 2,300 2,300 2,300 2,300 0 0

Ethiopia . . . . . . . . . . . . 0 0 0 0 3,485 3,485

Sector Total . . . . . . . . . $21,727,770 $21,661,536 $12,619,085 $12,619,085 $11,935,117 $11,750,841

Machinery

South Africa . . . . . . . . . $22,899,246 $22,886,652 $18,316,752 $18,316,752 $8,822,108 $8,816,518

Sierra Leone . . . . . . . . 44,373 44,373 44,373 44,373 0 0

Guinea . . . . . . . . . . . . 22,500 22,500 0 0 0 0

Kenya . . . . . . . . . . . . . 13,800 13,800 0 0 45,052 45,052

Botswana . . . . . . . . . . . 8,403 8,403 8,403 8,403 0 0

Sector Total . . . . . . . . . $22,988,322 $22,975,728 $18,369,528 $18,369,528 $8,867,160 $8,861,570

Minerals and metals

South Africa . . . . . . . . . $316,565,059 $225,357,876 $153,606,513 $119,615,566 $138,080,538 $95,083,302

Congo (ROC) . . . . . . . . 1,410,440 1,410,440 19,840 19,840 5,240 5,240

Madagascar ........ 230,695 230,695 183,089 183,089 91,568 91,568

Sierra Leone . . . . . . . . 226,487 226,487 34,337 34,337 0 0

Ghana . . . . . . . . . . . . . 221,662 221,662 60,545 60,545 211,310 211,310

Kenya . . . . . . . . . . . . . 162,313 162,313 83,075 83,075 204,544 204,544

Uganda . . . . . . . . . . . . 114,129 114,129 69,129 69,129 0 0

Mali . . . . . . . . . . . . . . . 80,629 80,629 20,686 20,686 0 0

Rwanda . . . . . . . . . . . . 32,522 32,522 32,522 32,522 0 0

Cameroon . . . . . . . . . . 23,453 23,453 21,283 21,283 2,405 2,405

Mauritius . . . . . . . . . . . 18,309 18,309 18,309 18,309 0 0

Mozambique . . . . . . . . 16,343 16,343 16,343 16,343 0 0

Tanzania . . . . . . . . . . . 9,893 9,893 9,893 9,893 0 0

Cote d’Ivoire . . . . . . . . 9,780 9,780 7,680 7,680 0 0

Lesotho . . . . . . . . . . . . 7,500 7,500 0 0 0 0

Guinea . . . . . . . . . . . . 2,627 2,627 0 0 0 0

Zambia . . . . . . . . . . . . 2,356 2,356 2,356 2,356 0 0

Sector Total . . . . . . . . . $319,134,197 $227,927,014 $154,185,600 $120,194,653 $138,595,605 $95,598,369

Miscellaneous

manufactures

South Africa . . . . . . . . . $27,996,997 $27,710,417 $14,540,815 $14,483,748 $16,136,239 $15,757,576

Mauritius . . . . . . . . . . . 1,908,009 1,908,009 1,134,326 1,134,326 334,396 334,396

Botswana . . . . . . . . . . . 1,191,480 1,191,480 547,616 547,616 426,656 426,656

Kenya . . . . . . . . . . . . . 629,994 617,588 329,690 327,110 350,480 347,002

Ghana . . . . . . . . . . . . . 436,959 436,530 279,955 279,955 450,397 449,697

Madagascar ........ 384,963 384,963 273,586 273,586 118,617 118,617

Cote d’Ivoire . . . . . . . . 99,113 99,113 45,721 45,721 22,830 22,830

Senegal . . . . . . . . . . . . 96,912 96,912 37,344 37,344 5,398 5,398

Nigeria . . . . . . . . . . . . 85,017 83,932 30,000 30,000 4,722 2,350

Congo (ROC) . . . . . . . . 73,848 73,848 40,861 40,861 25,549 25,549

Guinea . . . . . . . . . . . . 52,530 52,530 26,075 26,075 10,900 10,900

Cameroon . . . . . . . . . . 48,156 48,156 27,716 27,716 47,993 47,993
337

Table B-4—Continued

U.S. imports under AGOA, 2001, Jan.-June 2001, and Jan.-June 2002

SECTOR/Country

AGOA

(includes

GSP)

2001

GSP

2001

AGOA

(includes GSP)

Jan.-June

2001

GSP

Jan.-June

2001

AGOA

(includes GSP)

Jan.-June

2002

GSP

Jan.-June

2002

Miscellaneous

manufactures-Continued

Mali . . . . . . . . . . . . . . . 40,220 40,220 400 400 52,745 51,754

Tanzania . . . . . . . . . . . 4,989 4,989 0 0 7,838 6,348

Uganda . . . . . . . . . . . . 0 0 0 0 3,022 3,022

Niger . . . . . . . . . . . . . . 0 0 0 0 6,210 6,210

Sector Total ......... $33,049,187 $32,748,687 $17,314,105 $17,254,458 $18,003,992 $17,616,298

Textiles and apparel

Lesotho . . . . . . . . . . . . . $129,522,817 $0 $4,904,503 $0 $142,039,483 $0

Madagascar ........ 92,557,738 473,149 10,034,106 272,429 57,922,919 224,101

Kenya . . . . . . . . . . . . . 51,556,136 6,130 15,980,397 5,104 45,353,282 5,650

Mauritius . . . . . . . . . . . 38,925,087 25,624 8,590,634 8,170 52,783,661 0

South Africa . . . . . . . . 33,620,638 2,928,596 8,451,018 1,586,011 30,126,016 1,377,211

Swaziland . . . . . . . . . . 8,195,167 0 0 0 28,812,897 0

Malawi . . . . . . . . . . . . 4,798,764 568 568 568 5,475,125 0

Ethiopia . . . . . . . . . . . . 163,221 0 0 0 621,412 0

Cote d’Ivoire . . . . . . . . 114,690 114,690 57,345 57,345 52,509 52,509

Ghana . . . . . . . . . . . . . 5,220 5,220 4,743 4,743 39,445 5,076

Mali . . . . . . . . . . . . . . . 3,900 3,900 900 900 479 479

Senegal . . . . . . . . . . . . 2,731 2,731 2,450 2,450 0 0

Congo (ROC) . . . . . . . . 1,885 1,885 1,885 1,885 0 0

Tanzania . . . . . . . . . . . 742 742 0 0 2,824 2,824

Nigeria . . . . . . . . . . . . 441 441 0 0 0 0

Namibia . . . . . . . . . . . 0 0 0 0 15,203 12,402

Botswana . . . . . . . . . . . 0 0 0 0 1,441,077 0

Mozambique . . . . . . . . 0 0 0 0 12,665 0

Sector Total ......... $359,469,177 $3,563,676 $48,028,549 $1,939,605 $364,698,997 $1,680,252

Transportation

equipment

South Africa . . . . . . . . $300,475,786 $59,275,898 $106,223,070 $24,644,087 $245,080,171 $28,580,961

Nigeria . . . . . . . . . . . . 56,210 56,210 56,210 56,210 0 0

Ghana . . . . . . . . . . . . . 2,500 2,500 2,500 2,500 0 0

Mauritius . . . . . . . . . . . 2,415 2,415 0 0 0 0

Cote d’Ivoire . . . . . . . . 2,375 2,375 2,375 2,375 0 0

Sector Total ......... $300,539,286 $59,339,398 $106,284,155 $24,705,172 $245,080,171 $28,580,961

Grand Total ......... $8,179,346,342 $622,543,682 $3,311,564,699 $304,741,515 $3,975,333,375 $262,529,781

Note.–Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.