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THE INCREASING AMERICAN JOBS THROUGH

GREATER EXPORTS TO AFRICA ACT

HEARING

BEFORE THE

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH, 

AND HUMAN RIGHTS

OF THE

COMMITTEE ON FOREIGN AFFAIRS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED TWELFTH CONGRESS

SECOND SESSION

APRIL 17, 2012

Serial No. 112–139

Printed for the use of the Committee on Foreign Affairs

(

Available via the World Wide Web: http://www.foreignaffairs.house.gov/ or

http://www.gpo.gov/fdsys/

(II)

COMMITTEE ON FOREIGN AFFAIRS 

ILEANA ROS-LEHTINEN, Florida, Chairman 

CHRISTOPHER H. SMITH, New Jersey 

DAN BURTON, Indiana 

ELTON GALLEGLY, California 

DANA ROHRABACHER, California 

DONALD A. MANZULLO, Illinois 

EDWARD R. ROYCE, California 

STEVE CHABOT, Ohio 

RON PAUL, Texas 

MIKE PENCE, Indiana 

JOE WILSON, South Carolina 

CONNIE MACK, Florida 

JEFF FORTENBERRY, Nebraska 

MICHAEL T. MCCAUL, Texas 

TED POE, Texas 

GUS M. BILIRAKIS, Florida 

JEAN SCHMIDT, Ohio 

BILL JOHNSON, Ohio 

DAVID RIVERA, Florida 

MIKE KELLY, Pennsylvania 

TIM GRIFFIN, Arkansas 

TOM MARINO, Pennsylvania 

JEFF DUNCAN, South Carolina 

ANN MARIE BUERKLE, New York 

RENEE ELLMERS, North Carolina 

ROBERT TURNER, New York 

HOWARD L. BERMAN, California 

GARY L. ACKERMAN, New York 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

BRAD SHERMAN, California 

ELIOT L. ENGEL, New York 

GREGORY W. MEEKS, New York 

RUSS CARNAHAN, Missouri 

ALBIO SIRES, New Jersey 

GERALD E. CONNOLLY, Virginia 

THEODORE E. DEUTCH, Florida 

DENNIS CARDOZA, California 

BEN CHANDLER, Kentucky 

BRIAN HIGGINS, New York 

ALLYSON SCHWARTZ, Pennsylvania 

CHRISTOPHER S. MURPHY, Connecticut 

FREDERICA WILSON, Florida 

KAREN BASS, California 

WILLIAM KEATING, Massachusetts 

DAVID CICILLINE, Rhode Island 

YLEEM D.S. POBLETE, Staff Director 

RICHARD J. KESSLER, Democratic Staff Director 

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH, AND HUMAN RIGHTS

CHRISTOPHER H. SMITH, New Jersey, Chairman 

JEFF FORTENBERRY, Nebraska 

TOM MARINO, Pennsylvania 

ANN MARIE BUERKLE, New York 

ROBERT TURNER, New York 

KAREN BASS, California 

RUSS CARNAHAN, Missouri 

(III)

C O N T E N T S 

Page

WITNESSES 

The Honorable Johnnie Carson, Assistant Secretary of State, Bureau of African Affairs, U.S. Department of State ............................................................... 7

The Honorable Florizelle Liser, Assistant United States Trade Representative 

for Africa, Office of the United States Trade Representative ........................... 22

Mr. Isaiah Washington, actor, president, Gondobay Manga Foundation (Sierra 

Leone) .................................................................................................................... 46

Mr. Scott Eisner, Executive Director, Africa Business Initiative, United States 

Chamber of Commerce ......................................................................................... 53

Mr. Reginald Maynor, director of international department, Luster Products 

Incorporated .......................................................................................................... 62

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING 

The Honorable Johnnie Carson: Prepared statement ........................................... 11

The Honorable Florizelle Liser: Prepared statement ........................................... 29

Mr. Isaiah Washington: Prepared statement ........................................................ 49

Mr. Scott Eisner: Prepared statement ................................................................... 56

Mr. Reginald Maynor: Prepared statement ........................................................... 64

APPENDIX 

Hearing notice .......................................................................................................... 86

Hearing minutes ...................................................................................................... 87

The Honorable Russ Carnahan, a Representative in Congress from the State 

of Missouri: Prepared statement ......................................................................... 88

(1)

THE INCREASING AMERICAN JOBS THROUGH 

GREATER EXPORTS TO AFRICA ACT 

TUESDAY, APRIL 17, 2012

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON AFRICA, GLOBAL HEALTH,

AND HUMAN RIGHTS, 

COMMITTEE ON FOREIGN AFFAIRS, 

Washington, DC. 

The subcommittee met, pursuant to notice, at 2 o’clock p.m., in 

room 2172 Rayburn House Office Building, Hon. Christopher H. 

Smith (chairman of the subcommittee) presiding. 

Mr. SMITH. The subcommittee will come to order, and good afternoon, everybody. Today’s hearing will examine U.S. policy toward 

American exports to Africa as part of U.S.-Africa trade. The original African Growth and Opportunity Act, or AGOA, was intended 

to be mutually beneficial for both African and American entrepreneurs, but the focus of the three administrations since its passage in 2000 has been on increasing African exports to the United 

States and a resultant job growth on the African continent. 

This policy, however, has neglected the job growth here in the 

United States that could be created through increasing U.S. exports to Africa. The purpose of the Increasing American Jobs 

Through Greater Exports to Africa Act of 2012, or H.R. 4221, which 

I’ve introduced along with Congressman Bobby Rush and my good 

friend and colleague, Ms. Bass, our ranking member, is to address 

the important components of U.S.-Africa trade by increasing U.S. 

exports to Africa by 200 percent over the next decade. 

The bill does not replace AGOA, it complements it by providing 

for a rebalancing that makes it beneficial to Americans as well as 

Africans. Senators Dick Durbin and John Boozman have introduced 

an identical version of the bill in the Senate—S. 2215. 

The bill intends to achieve its ambitious but achievable goal by 

taking several steps, including the creation of a U.S.-Africa trade 

coordinator to ensure that all U.S. agencies involved in trade work 

in concert with one another. 

This legislation also calls for not less than 25 percent of U.S. 

trade financing to be devoted to facilitating U.S.-Africa trade. Furthermore, it encourages the descendants of Africa in this country, 

who largely operate small and medium size businesses, to play a 

greater role in trade with countries in Africa. Small and medium 

enterprises in Africa and the U.S. have not benefited from AGOA 

to the extent that they could have or should have, and the bill addresses this deficit. 

2

U.S. companies can benefit from an expanding African market of 

businesses and consumers, and increased American production will 

create new, sustainable jobs. Some have expressed concern that 

such an expansion of U.S. exports to Africa could flood African 

markets and damage their economies. However, many of these U.S. 

exports, such as in the agricultural sector, will enable African producers to become more efficient and profitable, and create jobs for 

their workers as well. 

In trade, the best situation is one of observing the principle of 

comparative advantage: Countries sell what they make most efficiently and buy what another country makes most efficiently. In 

this way, both buyer and seller countries benefit from trade by 

meeting each other’s needs. According to the U.S. International 

Trade Administration, the United States is the world’s largest importer of sub-Saharan African goods, receiving 20.2 percent of the 

region’s total global exports. 

On the other hand, during the height of the global recession in 

2008 to 2009, our exports to sub-Saharan Africa plummeted by 45 

percent, from $78.3 billion to $42.8 billion. At the end of 2011, the 

United States sold nearly $20.3 billion worth of goods to sub-Saharan Africa while purchasing more than $74 billion worth of goods. 

Consequently, we had a trade deficit with the nations of sub-Saharan Africa last year of nearly $54 billion. 

The African Development Bank estimates that one out of three 

Africans is considered to be in the middle class. That is 314 million 

Africans who have escaped poverty and now can buy consumer 

goods, including those from the United States. In order to reduce 

our trade deficit with the nations of Africa, there is room to engage 

in trade that increases economic opportunity for Africans and 

Americans alike. We just haven’t taken advantage of the opportunities that exist. 

The United States has, over the last decade, taken many steps 

to enhance U.S.-Africa trade. African governments have taken 

steps to encourage transatlantic trade as well. Still, both sides can 

and must do better. Exports will help the economy grow, because 

they typically boost factory production which can fuel more hiring 

and lead to greater consumer spending. Fewer imports subtract 

less from growth, largely because consumers are spending less on 

overseas goods and services. H.R. 4221 will contribute to job 

growth in the United States by facilitating increased sales to the 

emerging markets of Africa. 

The rest of the world understands how valuable the nations of 

Africa have become as economic markets. Last month this subcommittee held hearings on the role of China in Africa that not 

only pointed out China’s design on selling their goods to African 

countries, but also illustrated the economic interest in Africa shown 

by nations as farflung as Brazil, Turkey and South Korea. We, in 

the United States, must join in the more equal two-way trade the 

rest of the world envisions for their commerce with Africa. 

I want to now turn to my good friend and colleague, Ms. Bass, 

and I do want to thank all of our witnesses for being here. We have 

two very, very distinguished panels, and I especially want to single 

out Isaiah Washington, and thank him for joining us today, for 

coming into Washington to be part of panel II, to talk about his exVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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pertise especially as it relates to Sierra Leone. We are very grateful 

to have you here, Mr. Washington. 

Ms. Bass? 

Ms. BASS. Once again thank you, Mr. Chairman, for convening 

this hearing. Let me welcome today’s guests who will be testifying, 

all of whom have distinguished records and substantial experience 

regarding U.S. trade in Africa. 

I want to extend my gratitude to Chairman Smith and Representative Rush for their leadership on H.R. 4221, the Increasing 

American Jobs Through Greater Exports to Africa Act. I am 

pleased to join my colleagues as a cosponsor of this legislation, the 

bill will assist in increasing U.S. exports to Africa by 200 percent 

within the next 10 years, and it is my hope that we will achieve 

if not exceed this target. I also look forward to working with our 

counterparts in the Senate, Senator Durbin and Senator Boozman, 

who have as was stated have introduced identical legislation. 

The objective of today’s hearing is to consider how the U.S. Government can increase trade and investment on the African continent. With signs of strong economic growth in sub-Saharan Africa, the window of opportunity for broader U.S. trade and business 

engagement has never been more timely. Foreign nations including 

China, Canada, France, the UK, have more comprehensive trade 

promoting programs directed at Africa than we do. These programs 

give companies increased advantage over American companies. The 

U.S. can and must do more to ensure that U.S. businesses have 

similar opportunities and have the tools needed to compete. 

While quite variable by nation, GDP growth in many sub-Saharan African countries has shown real strength and resilience over 

the last decade. Many African countries have GDP growth rates 

that exceed current U.S. rates. For example, Sierra Leone has 

shown an average GDP rate of 9.7, Ethiopia 8.5 and Rwanda 7.6. 

In October 2011, report on economic growth in sub-Saharan Africa, the IMF, the International Monetary Fund, showed a positive 

outlook for continued growth on the African continent. The report 

stated, and I quote,

‘‘This year looks set to be another encouraging one for most 

sub-Saharan African economies. Reflecting mainly strong domestic demand but also elevated commodity prices, the region’s 

economy is set to expand by 5.25 percent in 2011. For 2012, 

our baseline projection is for growth to be higher at 5.75 percent.’’

While the U.S. economy continues to pick up real strength, 

growth in much of the sub-Saharan continent continues to outpace 

growth here at home. What is clear is that the United States must 

review its policies and look for new opportunities to diversify and 

expand. One way to do this is by increasing our low level of trade 

with Africa both through public and private sector engagement. 

When passed into law, I firmly believe that the conditions will exist 

to promote win-win environments for both African nations and the 

United States. 

Over the years, this committee has discussed the trade and investment opportunities supported by the African Growth and Opportunity Act signed into law in 2000. AGOA serves as a primary 

4

vehicle for advancing U.S. trade and investment with Africa. The 

purpose of AGOA has been to promote economic and political development by opening access to investment and trade markets in the 

United States for African nations. AGOA has been at the center of 

American economic policy with respect to the continent. 

AGOA, however, is a nonreciprocal trade preference program. As 

such, while U.S. firms that export to the United States from Africa 

may benefit from the provision under AGOA, in most instances 

U.S. exports to Africa do not automatically enjoy the same benefits 

in reverse. 

Members of Congress will soon review a special rule for developing countries which provide additional preferences in duty-free 

quota access for apparel. As we consider extending the special rule, 

I look forward to ways and mechanisms that strengthen AGOA in 

the future. And one of the things that I want to propose to our 

chair is that we really begin to look specifically at what companies 

are involved in AGOA, how it has benefited the U.S., how it has 

benefited the continent. 

The Congressional Research Service indicates that in 2011, the U.S. imported nearly $93 billion in goods from Africa while exporting just under $32 billion. Nigeria, Algeria, and Angola were the 

leading exporters to the U.S., and oil products totaling nearly $76 

billion account for the overwhelming majority of U.S. imports 

through AGOA. 

In sum, our trade balance is highly uneven. Most of our trade is 

in the form of U.S. imports, and the vast bulk of benefits under 

AGOA accrue mostly to natural resource commodity producers. Today’s hearing in H.R. 4221 aims to address this imbalance and 

offer new mechanisms to reduce import-export differentials. 

I am pleased that Mr. Maynor, who as an African-American businessman based in Chicago, will share with this committee his company’s 30-plus year history of conducting business throughout the 

continent. Like other small and medium sized businesses, I hope 

that Mr. Maynor’s testimony offers insight as my colleagues and I 

work to develop effective policies that create greater trade and investment opportunities. 

Thank you, and I look forward to the remarks of today’s witnesses. 

Mr. SMITH. Ms. Bass, thank you very much. 

And Mr. Rush? 

Mr. RUSH. I want to thank the chairman of this subcommittee, 

Congressman Chris Smith, and also ranking member Karen Bass 

and all the other subcommittee members. I want to sincerely thank 

you for allowing me to participate in this hearing on the Increasing 

American Jobs Through Greater Exports to Africa Act of 2012. 

I must say that after four terms of trying to get a waiver to be 

on this subcommittee, to be on this committee and then denied for 

four terms, I have finally arrived in some sense. I am proud to join 

Chairman Smith as the coauthor of a bill to develop a comprehensive strategy to create American jobs by increasing exports of U.S. 

goods and services to Africa by at least 200 percent in real dollar 

value over the next 10 years. 

And before I continue I must take time to say how honored I am 

to be in the presence of the honorable Ms. Liser and the Honorable 

5

Ambassador Johnnie Carson, who is a Chicagoan and someone who 

grew up in my district on the south side of Chicago. And I also 

want to welcome Mr. Maynor, who is an executive with Luster 

Products Company, which is also located in the city of Chicago. 

And I must say that to my friend, Isaiah Washington, who has 

been such a yeoman in this effort in these times and for Africa and 

for African-Americans, it is such a delight to see you here still on 

the case of fighting for the progress of Africa, African-Americans 

and also Americans in general. And I am certainly glad to be in 

your presence. 

Chairman Smith, my hat is off to you. I commend you, I commend your staff, for your leadership on this issue especially on the 

bipartisan manner with which we worked together during this 

process of drafting this legislation. This is the way that the Congress should work, the way that America wants its Congress to 

work. 

Again I must welcome Ambassador Carson and Ms. Liser, and 

the way that we are discussing today this bill is the right bill for 

these challenging economic times. The U.S. has talked far too long 

about Africa as the next trade and investment frontier. Well, the 

next is now. The future of Africa is now and it is time now to act 

on our promise. We now have a tremendous opportunity to build 

mutually beneficial policies that create jobs and economic growth 

on both continents. 

For a long time, Africa has been portrayed only as a continent 

riddled with war, dictatorship, poverty, disease and debt and every 

kind of dysfunction. Yet this true, real story of this country by 

country reawakening and revival and the story of many great successes remain untold stories. Seven out of ten of the fastest growing economies are today in Africa. Africa has an expanding middle 

class hungry for American products and its services. It is also in 

need of investment in its rapidly expanding infrastructure. 

In all my travels to African countries I always hear from African 

leaders and African consumers about their preference for American 

companies and products because of the quality of our products, our 

reliable and innovative technology and our labor environmental 

standards. But we are not reacting. We are standing flat-footed as 

China and India and Brazil and others are being fleet-footed. 

In my conversation with African leaders, they say well, if the 

U.S. doesn’t come then we are forced to take the Chinese money 

to help develop our economy. But we don’t like it, because the Chinese when they come and bring their dollars they also bring their 

manpower, and we don’t want to exchange a European colonialism 

for Chinese colonialism. But we can’t wait on America. America 

must act and act now. The African people can’t resist flexible or 

cheap Chinese financing. 

As one African ambassador told me at one time, if you cannot 

have what you love then you end up loving what you have. And 

they have China and so they have to love China. It is now time 

for America to act. 

This legislation will help to change those misguided perceptions 

and foster a greater understanding among U.S. businesses and financial communities about the opportunities that exist in Africa. 

The U.S. investment opportunities in Africa outside of the energy 

6

and mineral sectors hold a great potential to increase jobs in Africa, boost income earning power and help diversify African economies, thus making Africa stronger as a market for U.S. goods and 

services. 

Poverty and hunger are still widespread problems, but Africa’s 

growing middle class is creating businesses and investment opportunities that are among the best in the world. With the right trade 

policy in place we can unlock the potential of a thriving private sector and lift millions out of poverty. 

The tools available to U.S. companies to competitively compete in 

Africa are scattered, difficult to access and not effectively coordinated. Competition for jobs is also real. We need to think more 

strategically and be more innovative as to how we can best support 

our investments in Africa. This bill has been introduced for that 

purpose. Among other things, the bill will create a special White 

House Africa Strategy Coordinator to ensure government agencies 

are maximizing resources to help U.S. companies expand into African market. 

The bill also includes language from H.R. 656, the African Investment and Diaspora Act of 2011 that I introduced last Congress, 

positioning the U.S.-African diaspora to spur African economic 

growth. When I introduced AIDA in the social media, our Facebook 

group gained close to 10,000 members in less than a week. More 

than a hundred African immigrant groups signed a petition in support of this initiative. I have not met one single African who did 

not express his or her desire to contribute to the development of 

his or her country of origin and to represent an American firm. 

This bill will help turn brain drain into brain gain, challenging 

a new paradigm for strengthening U.S.-Africa relations in the 21st 

century. It also marks the first step toward unleashing Africa’s 

vast potential through win-win trade and investment opportunities 

mirroring the spirit of the common history and destiny shared between the U.S. and Africa. This bill will help reduce non-trade barriers, encourage regional integration of African countries, increase 

U.S. exports and positively affect U.S. trade export and labor initiative. 

Furthermore, passage of this legislation will ensure that the U.S. 

policy is contributing meaningfully to the positive transformation of 

Africa, enabling it to progress toward forward integration into the 

21st century world economy not as a supplier of raw materials and 

resources, but as a full participant in the international supply and 

distribution chains. The future of Africa, the future of U.S. economies are intertwined and this future is now before us. We must act 

now to ensure that future. 

And I am looking forward to hearing the testimony from both 

panels. Thank you, and I yield back. 

Mr. SMITH. Mr. Rush, thank you very much, and thank you for 

your kind words. It has been great to work with you and your staff, 

and of course with my ranking member, our ranking member, Ms. 

Bass. 

I would like to now introduce without objection, the bios of our 

very distinguished witnesses. 

Ambassador Johnnie Carson has been a frequent witness before 

this subcommittee. He currently serves as the Assistant Secretary 

7

of State for African Affairs, a position he has held since May 2009. 

Ambassador Carson has had a long and distinguished career in 

public service including 37 years in the Foreign Service, including 

serving as the U.S. Ambassador to Kenya, Uganda and Zimbabwe. 

Ambassador Carson has also served as the Staff Director of this 

subcommittee, and as a Peace Corps volunteer in Tanzania. Ambassador Carson is a recipient of numerous awards for his service 

from the Department. 

We will then hear from Ms. Florizelle Liser, currently the Assistant U.S. Trade Representative for Africa in the Office of the U.S. 

Trade Representative. She leads U.S. trade efforts and investment 

in sub-Saharan Africa, and oversees implementation of the African 

Growth and Opportunity Act. Ms. Liser was also a founding member of TransAfrica, and has applied these efforts to her continuous 

work to help the U.S. realize Africa’s growing importance to us as 

a continent. Ms. Liser has extensive background in trade negotiations, in Africa, and has spent much of her career working on those 

issues. 

Ambassador Carson, please proceed. 

STATEMENT OF THE HONORABLE JOHNNIE CARSON, ASSISTANT SECRETARY OF STATE, BUREAU OF AFRICAN AFFAIRS, 

U.S. DEPARTMENT OF STATE 

Ambassador CARSON. Chairman Smith, Ranking Member Bass, 

Congressman Rush and other members of the committee, thank 

you very much for providing me with this opportunity to address 

this committee on an important and timely topic. 

Before I begin my testimony, I would like to say that this is the 

first time that I have addressed this committee since the tragic and 

unfortunate passing of Congressman Donald Payne. Congressman 

Payne was a leader on issues related to Africa. He was one of the 

pioneers of the African Growth and Opportunity Act, and was a 

strong friend of the continent and our relationship with Africa. If 

he were alive today he would be at this hearing pushing for the 

kinds of legislation toward Africa that we all believe in both in the 

executive branch and in the legislative branch. 

Let me begin my testimony. U.S. trade to and from Africa has 

grown significantly in the past 10 years. U.S. exports to sub-Saharan Africa tripled from just under $7 billion in 2001 to over $21 

billion in 2011. This threefold increase illustrates the impressive 

economic growth that many markets in Africa achieve by tackling 

tough economic reforms over the past decade. However, despite Africa’s recent and very impressive economic growth, sub-Saharan Africa still accounts for less than 2 percent of global trade. 

It is my firm belief that Africa represents the next global economic frontier, and I am not alone in that assessment. The World 

Bank projects growth rates of between 5 and 6 percent for Africa 

over the next 2 years. These projections are higher than growth 

rates expected for Latin America, Central Asia and Europe. Africa 

is poised to grow even further, presenting significant opportunities 

for U.S. companies to both trade and invest in the continent. 

Nonetheless, there are still many barriers that stand in the way 

of companies hoping to do business in Africa. In many places corruption is common. The cost of finance including investment fiVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00011 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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nance is still too high. Infrastructure is weak or nonexistent in 

some places. Regulatory systems are often insufficient, inconsistent, and inefficient. Because of these barriers many U.S. businesses see African markets as too risky. 

We are working closely with African governments across the continent to address these issues and to improve the local investment 

and business environment. The United States Government also 

plays a role in assisting American companies to get into African 

markets. We recognize that increasing two-way trade and enhancing investment helps to grow economies on both sides of the Atlantic, in Africa as well as in America. 

Our effort to increase our commercial engagement in Africa is a 

part of Secretary Clinton’s global focus on economic statecraft. This 

State Department’s economic statecraft agenda consists of harnessing the forces of global economies to advance our diplomatic 

agenda and putting the tools of our diplomacy to work to meet our 

economic goals. We are committed to using every opportunity available to advance not only our diplomatic and political priorities, but 

also our economic and commercial goals as well. 

The Bureau of African Affairs at the Department of State has instituted a number of programs that move beyond the traditional 

focus on development assistance and that place a special and higher interest on promoting a full range of commercial and trade activities. 

I recently organized and led a trade mission to Mozambique, 

Tanzania, Nigeria, and Ghana with 10 U.S. energy companies 

ready to do business. A lack of reasonably priced and reliable 

power remains one of the most significant constraints to economic 

growth throughout Africa. Governments across the continent are 

working to attract new trade and foreign investment that will sustain their rapid economic growth and build their middle class. 

The goal of this trade mission was to highlight opportunities for 

U.S. companies and to help address a glaring need for increased 

power in the infrastructure of Africa. By all accounts the mission 

was a success, and the Africa Bureau plans to lead similar trade 

missions in other sectors in the future. Our goal is to encourage 

other American companies to be a part of the growing economic dynamism of Africa. 

In February, Secretary Clinton hosted the first State Department-led Global Business Conference that included representatives 

from the American Chambers of Commerce and business organizations from around the world including Africa. And in March, we 

worked with the Foreign Commercial Service to host a commercial 

training program for economic officers posted in some 25 sub-Saharan African countries. 

I want to note the importance we place on working with the 

American Chambers of Commerce overseas. There are currently 

eight countries in sub-Saharan Africa with American Chambers of 

Commerce, and we hope that working with and through the U.S. 

Chamber of Commerce here in Washington to see that number 

grow. 

The African Growth and Opportunity Act (AGOA) currently is 

the centerpiece of our trade policy with sub-Saharan Africa. AGOA 

remains very relevant today for both Africa and the United States. 

9

Eligible African countries receive duty-free preferences for approximately 6,000 products to come into the United States market. However, AGOA gives the United States Government a platform to engage in an economic dialogue with our African partners. 

As a part of the most recent annual AGOA eligibility review we 

were able to engage in serious discussions with a variety of African 

nations about the need to improve their macroeconomic and trade 

policies. The annual AGOA forum also gives the United States Government an opportunity to communicate our trade and investment 

priorities to African trade ministers and businessmen. 

This year’s forum will take place in Washington, DC, on June 

14th and 15th, and will focus on how to improve Africa’s infrastructure to facilitate and increase trade. The forum will also include 

civil society and private sector sessions. In addition, we look forward to building on the success of the African Women’s Entrepreneur Program which was launched during the 2010 AGOA 

forum here in Washington. Approximately 40 leading African 

women entrepreneurs will participate in meetings here and in 

Washington, DC, Ohio, and New York. 

The State Department, in collaboration with several U.S. Government agencies, will host the U.S.-Africa Business Conference in 

Cincinnati, Ohio, from June 21 to June 22, following the annual African Growth and Opportunity forum here in Washington. The 

United States-Africa Business Conference builds on the policy discussions that take place during the AGOA forums by providing an 

opportunity to showcase U.S. business expertise to potential African clients and to highlight trade and investment opportunities in 

Africa to U.S. exporters and investors. 

The United States-Africa Business Conference will include structured networking opportunities for African business leaders and 

government officials with American business leaders as well as 

state and local government officials and business leaders. Informational sessions on U.S. Government services from various government agencies and site visits to private companies and organizations will also feature prominently in this program. Echoing the 

theme of the AGOA forum, the event will focus broadly on infrastructure development including energy, transportation, water and 

sanitation. 

We expect the conference to attract a number of AGOA forum 

participants including African trade and energy ministers as well 

as relevant African business leaders and entrepreneurs. We also 

expect a large number of American private sector businessmen and 

women to participate. 

I remained very excited about the Cincinnati event following this 

year’s AGOA forum. In 2010, we held a similar event in Kansas 

City, Missouri that was well worth the effort. By taking African 

government officials and private sector representatives outside the 

Beltway, we can facilitate a fruitful discussion that goes beyond 

simply discussing trade policy but leads to the establishment of 

business linkages and even the completion of business deals. 

I would like to end my comments on what I think is a very serious and pressing matter, the potential impact of a delayed renewal 

of the third country fabric provision of AGOA. Third country fabric 

has been one of the most successful components of the AGOA legisVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00013 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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lation and can be credited with creating tens of thousands of jobs 

in countries such as Lesotho, Kenya, Swaziland, and Mauritius. I 

have heard from representatives of a number of African countries 

that apparel orders are drying up due to the uncertainty surrounding the extension of this third country fiber provision. 

In Lesotho, which is the largest African apparel exporter to the 

United States, our Embassy reports that there are no U.S. orders 

for apparel after July and transactions are usually made 6 months 

in advance. Our Embassy in Nairobi, Kenya, recently reported 

similar news and estimated that some 40,000 factory workers could 

very likely lose their jobs if the third country fabric provision is not 

extended. 

The apparel industries in these countries rely on the third country fabric provision. Without it there is a very real possibility that 

the investors in the apparel factories will pack up and move production to some other part of the world as we saw in Madagascar 

following its loss of AGOA eligibility in 2009. This would cause 

enormous economic strife in countries that are strong partners of 

the United States and countries that are starting to show real economic and sustained economic growth. 

Chairman Smith, members of the committee, I want to again 

thank you for this opportunity to appear before you today. I will 

be happy to answer any questions you have. My full testimony has 

been submitted for the record. 

[The prepared statement of Ambassador Carson follows:]

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Mr. SMITH. Without objection, so ordered. We thank you for your 

testimony. We will take a short break. We have three votes on the 

floor and about 21⁄2 minutes to get to the floor to make the first 

one. So we will stand in recess. 

[Recess.] 

Mr. SMITH. The subcommittee will resume its sitting. And I 

would like to invite Ms. Liser, if you could present your testimony. 

And again I want to apologize for that break. We did have three 

votes and they went longer than they should have. Thank you. 

STATEMENT OF THE HONORABLE FLORIZELLE LISER, ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR AFRICA, 

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE 

Ms. LISER. Thank you, I should know that. 

Chairman Smith, Ranking Member Bass, I don’t see Congressman Rush back yet, but we just wanted to thank you for the opportunity to speak with you today about the Obama administration’s 

trade policy to increase U.S. exports to Africa. We welcome your interest in this timely topic and we agree with the stated premise of 

the proposed legislation that growth in U.S. exports to Africa would 

have a positive effect on the U.S. economy in terms of U.S. exports 

and supporting jobs as well as advancing economic growth on the 

African continent. 

Let me just say that my full testimony was submitted, and I am 

going to summarize as briefly as I can that testimony and add a 

few additional points that I would like to share. 

First of all, we all recognize that Africa is indeed a frontier market with the kinds of growth rates that we see, the reforms that 

have taken place in many of the sub-Saharan African countries, the 

doing-business reforms that they have made, the leadership that 

we are now seeing on the continent and advances in democracy, 

fewer conflicts, we recognize that Africa’s time has come and that 

many countries recognize the importance of that as a market for 

their exports, and we certainly want to make sure that U.S. businesses also see the opportunities that are there. 

I heard someone say the other day at a meeting that if you are 

a U.S. company looking to grow, then you absolutely must have an 

Africa strategy. Without an Africa strategy, your chances of growing and taking advantage of that market with growing middle income persons, the youth bulge, discretionary income that is growing there, you would not be a wise company on this end if you did 

not take advantage of the U.S. market. 

Let me just say that we are pleased that both through legislation, like the legislation that has been introduced and the African 

Growth and Opportunity Act (AGOA) that there are in addition to 

legislation, a number of tools that we are using right now that we 

hope are advancing the U.S.-Africa trade and investment relationship. I think you all know that we have Trade and Investment 

Framework Agreements, TIFAs, with a number of individual countries and regional organizations in sub-Saharan Africa. 

Our TIFAs are important tools for strengthening economic relations with key countries and regional organizations. They provide 

a formal mechanism to address bilateral trade issues and to help 

23

enhance trade and investment relations between the United States 

and key sub-Saharan African trade and investment partners. 

In addition, we have several Bilateral Investment Treaties with 

six sub-Saharan African countries, and we are currently in the 

process of negotiating a seventh BIT with Mauritius. We are also 

hoping to have discussions with Ghana on a Bilateral Investment 

Treaty. Investment is critical for Africa’s development, and U.S. 

BITs help to protect U.S. investment and promote economic 

growth. 

In addition, we are using a number of tools in the interagency 

process such as the Trade Policy Staff Committee which manages 

the everyday responsibilities of coordinating U.S. trade and investment related policies, and ensuring that U.S. business interests are 

reflected in all of our trade negotiations and initiatives including 

those in Africa. We also have the Trade Promotion Coordinating 

Committee and the Export Promotion Cabinet, which has developed a national export strategy, and these together are implementing the National Export Initiative as part of the administration’s efforts to double exports. 

Finally, I would be remiss if I did not mention the Trade Advisory Committee on Africa, which was established by Congress in 

AGOA legislation and consists of presidentially appointed individuals from the U.S. private sector, nongovernmental organizations, 

and academia, who provide advice to the U.S. Trade Representative 

and the administration specifically on key U.S.-Africa trade and investment issues. 

Finally, we are in the process of implementing the African 

Growth and Opportunity Act, and as part of that process among 

other things, as Ambassador Carson said, we annually review the 

48 countries in sub-Saharan Africa for compliance with AGOA eligibility criteria which includes their making progress on eliminating barriers to U.S. trade and investment. 

The administration is committed to building a strong partnership 

with Africa that reflects the continent’s vital and growing role in 

international global trade and that is mutually beneficial. At the 

heart of our engagement with sub-Saharan Africa is of course 

AGOA. And for three administrations AGOA has defined our trade 

relationship with the continent and been responsible for expanding 

and diversifying African exports to the United States. 

I would like to reassure the members of this subcommittee 

though that our efforts to help spur growth and development in 

sub-Saharan Africa through programs like AGOA do not impede 

our drive for promoting U.S. exports to the continent. Not only has 

AGOA been good for Africa, but it has also been good for U.S. businesses. By providing incentives and support for African economic 

reforms, AGOA has helped to foster an improved business environment in many African countries that has attracted investment and 

enabled U.S. exports to the region to more than triple since 2001. 

Sub-Saharan Africa presents a wide range of business opportunities for U.S. businesses as many of the fastest growing economies 

in the world with rapidly growing middle class consumers are on 

the continent. The continent has enjoyed significant economic 

growth in the last few years, and returns on investment in Africa 

rarely dip below 10 percent, representing one of the highest rates 

24

of return in the world. AGOA has also helped increase the demand 

for U.S. products in the region by helping to promote economic and 

political reforms and to create business-friendly environments. 

As African businesses seek to take advantage of trade opportunities under AGOA, they are seeking U.S. inputs, expertise and joint 

venture partnerships. U.S. merchandise exports to sub-Saharan Africa continue to rise, growing by over 23 percent in 2011 from the 

previous year with notable gains in agricultural goods, machinery 

and transportation equipment. These exports support thousands of 

U.S. jobs and help African countries to modernize their economies. 

For instance, last year alone the United States made over $1.5 billion in aircraft sales to African countries like Ethiopia, Angola, 

South Africa and Rwanda. 

Africa’s growing middle class is increasingly demanding high 

quality U.S. products, ranging from motor vehicles where U.S. exports to sub-Saharan Africa increased last year by over 40 percent 

to $3.5 billion, to poultry products where U.S. exports increased by 

nearly 50 percent last year to nearly $400 million. 

Let me share with you a chart that provides information on U.S. 

exports to Africa, which I think you will find useful. 

[The information referred to follows:]

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Ms. LISER. I would be remiss if I did not also add my voice to 

Ambassador Carson’s and many others in the administration and 

amongst the African diplomatic corps and many in the U.S. business community regarding the extension of third country fabric 

provisions under AGOA. As an urgent, immediate-term priority, we 

hope to work closely with Congress to renew AGOA’s third country 

fabric provisions which expire in September 2012. 

AGOA’s performance, effectiveness and success are closely tied to 

the third country fabric provisions. These provisions are crucial to 

the continued survival of Africa’s textile and apparel industry. Failure to extend these provisions is already affecting the competitiveness of Africa’s apparel industry because global sourcing decisions 

for apparel are typically made up to 9 months in advance, imminently threatening significant job losses and factory closures 

throughout Africa in the coming months. 

AGOA’s third country fabric provisions are also important for the 

United States, because they provide American retailers with an incentive to diversify their supply chains away from other foreign 

textile sources and provide low cost sourcing options for our apparel retailers and U.S. consumers. 

We look forward to working with you to promote U.S. exports to 

Africa and ensure that our trade policy continues to support jobs 

and export opportunities for America. I wanted to end by sharing, 

and I think you have it, a picture, which I think says far better 

than words what is happening with U.S. exports to Africa and 

which we would like to see a lot more of. 

[The information referred to follows:]

28

Ms. LISER. It is a picture of three GE produced rail cars that 

were in the process of being exported to Liberia for a steel and 

mining initiative. And those GE locomotives and the 70 wagons are 

moving 4 million tons of iron ore that is going to be mined and 

shipped from Liberia each year to its partners around the world. 

In addition to the GE locomotives, there were also other companies 

like Caterpillar who supplied various components and are rehabilitating the 200 ore wagons. And we believe that a number of U.S. 

companies and businesses and workers were definitely benefited by 

that transaction. 


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Let me end by saying that we would like to see a lot more of 

those kinds of initiatives take place, and we look forward to working with you to ensure that that happens. Thank you. 

[The prepared statement of Ms. Liser follows:]


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Mr. SMITH. Thank you, Ms. Liser, so very much for your testimony. Let me just ask Ambassador Carson, with the AGOA forum, 

which you talked about in your testimony, about to take place on 

June 14th and 15th, what is going to be the State Department’s 

main theme in engaging African governments at that ministerial? 

Ambassador CARSON. Thank you very much. We are going to 

focus on energy and infrastructure and continue to encourage economic reforms that will attract greater American business and 

American interest to the African continent. 

Mr. SMITH. Let me ask you, Ms. Liser, how have the Trade and 

Investment Framework Agreements that you just mentioned in 

your testimony helped open up markets for American goods, and 

what have been the deficiencies that need to be rectified? 

Ms. LISER. Well, we think that one of the processes that has happened under our TIFAs is the opportunity to bring together on both 

sides as well as, the government workers as well as the private sectors to talk about the opportunities for enhancing trade and investment between ourselves and the TIFA partner. And one of the 

things we have been able to do in our TIFA discussions is to raise 

some of the concerns that our businesses have. Sometimes it is the 

perfect opportunity to say, okay, you have this barrier, you have 

this import ban, you have these rules on getting licenses, et cetera 

that are standing in the way. And we have found that through the 

dialogue we have been able to get these governments to address 

some of those barriers that are preventing U.S. businesses from 

being able to operate effectively in those countries. 

In terms of where there is a need for improvement under the 

TIFAs, we tell the countries, our country partners, all the time that 

the TIFA can only be as good as the work that they put in on their 

end and we put in on our end. And so one of the things that we 

try to get them to do is to not wait until they sit down with us 

after 18 months to, over the course of 2 days to start addressing 

some of the issues that have been raised. 

To the extent that we have a number of our TIFA partners who 

do well at addressing the issues in between the meetings like Mauritius, like Ghana, like Rwanda, we find that we have been able to 

enhance our trade investment relationship with them very well 

under the TIFAs. 

Mr. SMITH. Let me just—a little background. Some of you may 

know this, but if you don’t know I authored the Trafficking Victims 

Protection Act of 2000, which created a coordinated strategy for 

combating modern day slavery. In like manner also in 2000, I 

wrote what became the Combating Autism Act. And again the key 

there was that the NIH has a very, very well focused strategy on 

combating autism. I remember I was the sponsor of the legislation 

that just got signed in the fall to reauthorize the Combating Autism Act for the next 3 years. 

My point is, the key to our legislation that the three of us have 

sponsored is creating a strategy—and I know you have strategies, 

I know there are many, you are doing an outstanding job on trying 

to increase trade with Africa. But we have laid out eight different 

areas where there would be a more, a coordinated blueprint for action trying to get everybody on the same page, avoid duplication 

but also ensuring that we also put an emphasis on exporting, 

35

which I think we have put some emphasis on, but the hope is that 

we will put even more on. 

And I am wondering what your thoughts are in looking at the 

legislation. I am not asking yet for an endorsement. We certainly 

would love for the administration to endorse the bill. It is a bipartisan bill as you know. Just so that we could get it to, before this 

session ends, this legislation, on the President’s desk so it could be 

very robustly implemented. 

The strategy, have you looked at the eight provisions? Do you 

find we have identified some things that have not been heretofore 

well coordinated? And what perhaps do you think ought to be 

added to the bill to improve it? 

Ambassador CARSON. Mr. Chairman, I won’t speak specifically to 

the specific provisions of the bill because as I have said, we have 

not taken, the administration has not taken a position on it. But 

let me say that the administration, certainly Secretary of State 

Clinton, is focused very much on doing as much as we possibly can 

to strengthen trade around the world, but also in Africa. 

She has a policy of promoting economic statecraft and economic 

diplomacy using all of our Embassies in Africa and all of our ambassadors in Africa not only as our top diplomats but as our top 

trade promotion and commercial representatives. We want our Embassies in Africa to be known as hubs that can assist U.S. businessmen and women and investors to do business in Africa and to 

use our facilities to encourage trade and trade opportunities with 

local governments. 

I have mentioned in my testimony that in February of this year 

I organized and led a trade mission to four African countries. That 

trade mission brought together some 10 American energy companies to look at real opportunities in Africa in four very successful 

African states that had great energy needs and great energy potential. We think that we need and will do in the future, more of these 

kinds of focused trade missions, whereby we can help American 

countries be introduced to particular markets to gain access to senior government leaders and to network with local business officials. 

We also believe that it is critical to increase the level of awareness and information about the existence of opportunities in Africa. 

We have to break down the fear and apprehension that exists 

among some American companies about what exists in Africa. All 

too frequently the continent is looked at as a single entity and not 

as some 49, certainly in sub-Saharan Africa, some 49 different 

states. 

There are enormous, enormous opportunities in economies that 

are growing rapidly that have enormous and outstanding potential, 

who have the kinds of markets which American companies should 

be interested in, but they don’t know yet about them. The other 

thing that we have got to do is——

Ms. BASS. Can I interrupt you for just a second? 

Ambassador CARSON. Yes, ma’am. 

Ms. BASS. You were referring to four countries that you had very 

successful energy exchange with. Which countries were you referring to? 

Ambassador CARSON. Yes, ma’am. Those countries were Mozambique, Tanzania, Nigeria, and Ghana. Three of those countries are 

36

very high performing economies that are growing rapidly. All of 

them have tremendous energy needs, but all of them have enormous capacity to not only supply energy to their own countries but 

to the region as a whole. 

Mozambique has hydroelectric potential capable of not only satisfying the Mozambique market but also Tanzania and much of 

South Africa. It also has enormous gas deposits both Tanzania and 

Mozambique do as well. These are countries that are going to grow 

rapidly and they have a lot of potential. 

I think Congressman Rush in his remarks noted that all too 

often one looks at Africa and only thinks of the difficult places, the 

Sudans, the Somalias, the eastern Congo. We need to not focus on 

the difficulties that exist in some places, mix them up with the success, the promise, the potential and the enormously good prospects 

that exist across the continent in the Tanzanias, the Mozambiques, 

the South Africas, the Botswanas, the Ghanas, the Namibias, the 

Senegals, the Cote d’Ivoires where there is enormous potential, and 

where people are frequently frightened away because of something 

that is happening several thousand miles away. We have to break 

down these suspicions and concerns that are there. We have to 

educate the American business community about the enormous potential. 

We do look at strategies, and as I say AGOA is a part of that. 

More trade missions represents a part of that. Secretary of State’s 

economic statecraft and diplomacy are a part of that. Working with 

our colleagues at Ex-Im Bank, with OPIC, with the U.S. Trade 

Representative’s office are also a part of that to ensure that we can 

leverage what we do. 

And final comment, when we were out on the road in Africa on 

this energy trade mission, we had two of our colleagues from the 

Export-Import Bank were along with us. They can finance major 

projects. We also had a representative from the U.S. Trade Development Agency with us, and they finance major feasibility studies. 

We would have been joined by a colleague from OPIC, but they had 

a serious illness in the family and could not come at the last 

minute. So it is, in fact, not just us in the Department but a whole 

of government approach to the way we are trying to do this. 

It is important that we focus on the business and commercial 

side of this. This is the way that Africa is going to achieve sustained long term development and growth. 

Mr. SMITH. I have a number of questions, but out of deference 

to our second panel and my colleagues and you for the delay, I will 

just ask two final questions and then submit other questions for 

the record. 

I will ask you if you could, Mr. Ambassador, if you could provide 

us, the administration, views on the legislation. It would be very, 

very helpful. I mean we are looking for a partnership here and any 

constructive criticism, language you think ought to be incorporated, 

because delay could quickly become denial and this session will end 

and then the whole process has to start all over again. And we all 

know how long it takes to start it up again. 

Let me just ask you, with regards to Ex-Im Bank. I have read 

their strategic plan very carefully. I would note parenthetically 

that Nigeria and South Africa account for over 50 percent of the 

37

U.S. exports to sub-Saharan Africa. A part of the reason for the bill 

is to try to expand and to have a more robust effort strategy-wise 

to make sure that west Africa and so many other countries and regions are included. 

And there are nine focus countries at Ex-Im Bank, why there is 

not a greater focus on other countries, perhaps they should give us 

an answer to that. But in the legislation we do call for deployment 

or redeployment of more Ex-Im Bank personnel, a greater focus on 

Africa. They shift it from other areas. And so if you could speak 

to that issue. 

And secondly, the general wisdom is that the GDP of Africa will double in the next 10 years from $1.6 trillion. Have there been any 

qualitative analyses as to how foreign sourcing particularly to the 

PRC has hurt our ability to export especially finished products to 

China? I mean all of these trade policies go hand in hand, and obviously when most favored nation status that particularly relates 

to PNTR, without any linkage whatsoever to human rights and 

labor rights, China has gotten a huge benefit from that without 

commensurate benefits to the people of China and the working people especially. Not so with Africa. I mean there I think we can 

count on more people getting jobs at greater salaries and benefits 

than a dictatorship could ever provide. 

So this idea of analysis, has anybody looked at China, how our 

ill-advised policies toward Beijing and their ability to make finished products and then flood not just the U.S. but now sub-Saharan Africa with products, how that pushes us out of the picture of 

being able to export? Those two questions. 

Ambassador CARSON. Mr. Chairman, I am not aware of such a 

study, but I will go back and ask whether our colleagues who cover 

China and Asia, about whether such a study exists. 

Mr. SMITH. I would appreciate that. Because many of our factories have disappeared, but the focus of the bill, part of the focus, 

is meeting in smaller businesses which have not disappeared. And 

as we wrote into the language, trying to get more of the diaspora 

involved with, an even greater motive to reconnect with Africa 

seems to incentivize more trade which means everybody wins. So 

if you could look into that. The larger businesses have foreign 

source. They are now in China, but the others have not. 

And on the other question with the Ex-Im Bank? 

Ambassador CARSON. I am not going to try and answer for the 

Ex-Im Bank officials, and I think that one is more directed at them 

and their particular strategy. I will say that they have been very 

good colleagues with us. They joined us on our energy trade mission back in February, and I know that they are looking and have 

been increasing the amount of funding that they have put into Africa. We think that it is very important that when American companies find opportunities to make sales that they have the support 

of organizations like Ex-Im Bank to help facilitate the financing. 

But I think your specific question, Mr. Chairman, should be addressed to Ex-Im Bank. I would not do it justice. I am not familiar 

enough with the internal strategies and workings of that organization. 

Mr. SMITH. But you wouldn’t disagree with their finding that half 

of all of our exports go to Nigeria and to South Africa, leaving large 

38

numbers of other countries where there could be, and that is not 

what they help facilitate. They claim in their strategy that that is 

where most of our exports go. Is that true? 

Ambassador CARSON. Well, let me just say I think that they 

probably are using a fair amount of their money, their financing to 

support major capital purchases and investments such as aircraft, 

GE locomotives, GE medical supplies, large sales of machinery and 

equipment, and probably a lot of it going to support not only those 

kinds of capital purchases and expenditures, but those that may be 

related to mining and oil as well. That is again off the top of my 

head, but I would argue that is probably why it is concentrated 

there. 

Mr. SMITH. Ms. Liser? 

Ms. LISER. Let me just also add though that while South Africa 

and Nigeria are our top two U.S. export markets in sub-Saharan 

Africa, the other three of the top five are Angola, Ghana and Ethiopia, and we are sending a range of products to them. Machinery, 

vehicles and parts, some process oil products, aircraft, poultry, cereals. 

So I think that when you look at the chart I shared with you all, 

in terms of the numbers we have various countries where we are 

shipping over $1 billion in exports to them, and then a number of 

other countries where there has been significant growth between 

2010 and 2011. So our view is that the trade between the United 

States and these countries is diversifying. We are getting more of 

a range of products coming from them to us and more of a range 

of products going from the U.S. to a wider range of countries there 

as well. 

Mr. SMITH. And before yielding to Ranking Member Bass, Ambassador Carson, if you could get back to us on that if there is any 

qualitative analysis and whether or not perhaps that could be undertaken. We need to know, our chief competitor is the PRC, and 

when you have got gulag labor and a whole host of people receiving, large numbers of workers getting 10–50 cents per hour with 

no OSHA regulations at all, obviously it is hard for us to compete 

with that, but we need to know what we have been losing. Because 

again, we want to export good, fine products that have been made 

by workers who have been well paid with good benefits just like we 

want Africa to have the same. 

Ms. Bass? 

Ms. BASS. Thank you. I wanted to ask you a few questions and 

ask you, some of it you have already made reference to, but for me 

especially being relatively new would appreciate you being very 

specific of, for example, the Ambassador talked about eight countries that have U.S. Chambers. I would like to know which countries they are. And I mean if you don’t have the information with 

you, if you could get back to me. And then what are some of the 

companies that are involved in these Chambers in the various 

countries? 

Ambassador CARSON. Let me say that I think that someone from 

the U.S. Chamber, Mr. Eisner, is going to testify on the second 

panel and he can give you the list of companies. But I would 

say——

39

Ms. BASS. You referenced those in your comments, that is why 

I was directing those to you. 

Ambassador CARSON. No question, absolutely. But I think he can 

give you the most definitive response. But I think you will find in 

those countries, obviously the largest one is in South Africa, and 

there are some 600 American companies represented with offices, 

direct investment or representatives in that country and they cover 

the entire range. But I will let Mr. Eisner speak to that. 

Ms. BASS. And then following up on what the chairman was raising in terms of countries where we do business, I know one issue 

that you were trying to get at which what is the strategy, what are 

we doing to expand it beyond the handful of countries? 

Ms. LISER. You are speaking of the handful of countries we are 

exporting to? 

Ms. BASS. Right, exactly. 

Ms. LISER. But what I was trying to say earlier is that we actually have a wide range of countries that we are exporting various 

U.S. products to, and that continues to expand. 

But I do think that one of the things that you have mentioned 

in the bill that is very important in this process is educating and 

encouraging a greater understanding among U.S. businesses, and 

from our point of view small businesses. Because I think many of 

you know that the majority of our exporters from the United States 

are actually small businesses, and so we think that it is important 

to try to get out and communicate to them opportunities in Africa. 

And some of the small businesses don’t actually do much exporting in general, so educating them about why they should look at 

Africa as a growth opportunity for them and for their small companies is something that we do but we could probably do much more 

of. And I think that we have a number of the U.S. agencies at the 

U.S. Export Assistance Centers that are spread all around the 

country that have the Department of Commerce person there, ExIm Bank, OPIC, SBA. And I think that we are working with them 

to try to make sure that our small businesses, diaspora-owned, minority-owned, women-owned businesses have a better understanding of where these opportunities are. Without them doing that 

all the policies that we put into place and strategy that we have 

in the U.S. Government will not necessarily result in the kind of 

exports that we want to see. 

Ms. BASS. It would also be helpful if the USTR would give us an 

analysis or assessment of the bill from your vantage point as well. 

The bill calls for USTR and the Ex-Im Bank officials to explore opportunities to negotiate new trade agreements in Africa, and I 

wanted to know your opinion of what kinds of trade agreements 

are most needed to foster that investment. 

Ms. LISER. Well, I think first of all, we have these Trade and Investment Framework Agreements which are in place. They cover 

now a wide range of countries because some of those agreements 

are with regional organizations, and I noticed in the bill that you 

talk about promoting regional integration as well. And we are trying to do that through these TIFAs with the East African community or the common market for Eastern and Southern Africa or the 

SACU countries. 

40

So we think that that will help to basically work with a wider 

range of countries to enhance our U.S. trade and investment relationship. 

Ms. BASS. And to what extent are U.S. businesses taking advantage, from your opinion, of the Ex-Im Bank and OPIC for commercial activity in Africa, either one? 

Ms. LISER. Again I would say what Ambassador Carson said that 

it is best to get that from them. But my understanding, I was just 

at the Export-Import Bank annual conference the other day, on 

Thursday and Friday, and then have also worked closely with 

OPIC. 

OPIC will tell you that their what they call exposure in Africa 

is actually very large. They have a number of loans and products 

that they are undertaking in sub-Saharan Africa, and I believe the 

same is true for Export-Import Bank. But I would just say that 

from what I can tell, there is a lot of activity on their part and a 

lot of businesses that they are facilitating to be in Africa from our 

end. So we can make sure that they have the questions and get 

back to the committee with a more detailed answer. 

Ms. BASS. That would be great. Thank you very much. 

Mr. SMITH. Mr. Rush? 

Mr. RUSH. Thank you, Mr. Chairman. Ms. Liser, I want to follow 

up some on the line of questioning that Chairman Smith asked. 

You are in charge of trade negotiations and policy at the USTR, 

and in that capacity I believe that you are part of the Trade Policy 

Staff Committee, is that true? 

Ms. LISER. Yes. 

Mr. RUSH. What is that committee? 

Ms. LISER. The Trade Policy Staff Committee is the interagency 

process and committee that we have for discussing a wide range of 

trade policy issues all over the world actually. Within the Trade 

Policy Staff Committee we have a subcommittee on sub-Saharan 

Africa where we look at the U.S.-sub-Saharan Africa trade issues 

more specifically, and we also have a subcommittee on implementation of the African Growth and Opportunity Act. And that committee is the one that comes together annually to look at the 49 

countries in sub-Saharan Africa and the criteria that Congress set 

up for AGOA eligibility and determine what to do. 

So I would say that that is the committee, that the Trade Policy 

Staff Committee is the process that we use to really coordinate 

with a wide range of U.S. Government agencies from the Department of Agriculture to U.S. Trade and Development Agency, OPIC, 

Ex-Im, State Department, Commerce Department and many others 

on our trade policies. I would say that is also the committee that 

when we were negotiating a free trade agreement with the five 

countries of the Southern Africa Customs Union, with SACU, up 

until about 2006 that is the committee that we would meet with 

to discuss our negotiating positions, what we wanted to offer to 

them and what we were looking for to get back from them as a part 

of those negotiations. 

Mr. RUSH. And what is the status of your, you said in 2006 you 

were engaged in a vigorous, robust process to develop free trade 

agreement with certain African countries. And in the last 6 years 

has anything, what is the status of that? 

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Ms. LISER. The U.S.-SACU Free Trade Agreement negotiations, 

we essentially came to point where we realized that their goals for 

the negotiations and ours, in terms of what Congress expects us to 

do in a free trade negotiation, we have what we consider to be gold 

standards for our free trade agreements, and the SACU countries 

were not in a position at that time to pursue that. 

Since then we have pursued with them a Trade and Investment 

Framework Agreement with the five SACU countries, and so we 

are trying to address some of the trade and investment challenges 

and issues that we have with those five countries through that 

TIFA. 

I would just mention one other thing that is a new trade and investment initiative that we are pursing with the five East African 

Community countries. And within that we hope to negotiate a regional investment treaty instead of a bilateral one, one country at 

a time. And this would be innovative. We have never done that before. So we would do a regional investment treaty and then we 

would also seek to negotiate with them, agreements on some key 

areas such as trade facilitation or standards. And by doing so we 

think that that would improve the business environment on their 

end. It would help U.S. businesses to be able to take advantage of 

the markets in East Africa, which as you know includes Kenya, 

Uganda, Tanzania, Burundi and Uganda, and we also believe that 

it would support regional integration. 

So I mention that to make the point that we are trying to find 

new kinds of tools and trying to see if we can use those to advance 

the relationship. We know that many things have changed since 

AGOA came into a place in 2001, and we cannot depend in 2012 

solely on AGOA in order to advance our trade investment relationship with them. 

Finally, there are the bilateral investment treaties. And I do 

think that those are also important both for protecting the rights 

of U.S. investors in countries and also helping to improve the overall business environment in those countries as well. 

Mr. RUSH. Well, in your opinion, how far are we away, this is an 

estimate on your part and I know this, this is looking into the future. From where we stand now, how far are we away from either 

a bilateral free trade agreement with an African country other than 

Morocco, a sub-Saharan African country, how far are we away either from an original free trade agreement or a bilateral free trade 

agreement? 

Ms. LISER. I think that we are actually getting to a point where 

we want to sit down, as we are looking at extending AGOA, it is 

a perfect time and opportunity to sit down with the countries in 

sub-Saharan Africa and particularly some of the key ones, and to 

say to them that as we consider on the U.S. side extending AGOA, 

we also want to explore other possibilities including potential free 

trade agreements with some of the countries. 

And I think that it is more of a challenge to negotiate with a 

group of countries. It is far more difficult because then you are 

dealing with laws and regulations across a group. But we do think 

that as opposed to what the Europeans are doing, we don’t want 

to break apart the regional groupings that they have. We think we 

should honor and respect what they are trying to do. 

42

So again we hope that this new initiative that we have launched 

with the East African Community could be a building block for a 

free trade agreement with them. That by the time we have negotiated what we call chapters, a chapter on investment, that is what 

the regional investment treaty would be, a chapter on standards. 

A chapter on trade facilitation. A chapter on customs rules. That 

those are the very chapters that go into an FTA. 

So through this process we do see that this may be an avenue 

to that and then beyond that I think that we will be discussing 

over the next year or 2 with some of the other African countries 

what are the possibilities for bilateral free trade agreements. 

Mr. RUSH. I would like to ask both of you a yes or no question. 

It is a simple yes or no question. Do you think the U.S. has enough 

commercial officers in the various hubs in Africa, especially in 

those countries that are considered as economically advanced? Yes 

or no? 

Ambassador CARSON. Congressman Rush, Secretary Clinton has 

been very, very definitive in stating that every American ambassador is a commercial officer on behalf of the United States Government. Every Embassy is a commercial Embassy as much as it 

is a political Embassy. So if you operate under the notion that our 

ambassadors are doing commercial work, that our Embassies are 

representing American business and commercial interest, we are 

represented universally. 

Mr. RUSH. Is that a yes answer? Is that a yes? 

Ms. Liser? 

Ambassador CARSON. Congressman Rush, I thought I had slipped 

around that. But let me say, the assignment of commercial officers 

overseas is a responsibility of the Department of Commerce. So I 

think that that again, like the Ex-Im Bank question, is one that 

should be directed at the Department of Commerce. 

But again my response is, Secretary Clinton’s strategy and policy 

is very clear that we believe in economic statecraft and diplomacy. 

Every American ambassador overseas is supposed to be working on 

behalf of American business interest as much as our foreign policy 

and political and security interest. And each one of our Embassies 

should, in fact, be a projection of our values at home including our 

business and commercial values. 

Mr. RUSH. Ms. Liser, yes or no? 

Ms. LISER. My one word answer is ditto, everything that the Ambassador has said, thank you. 

Ms. BASS. So if that is the answer then could you explain what 

in addition those offices would do? Because it sounds like they are 

not really needed because the Embassy does all that, so what in 

addition would they do? 

Ambassador CARSON. The things that they bring to the table are 

a closer relationship with the American business community. They 

bring to bear a network of offices around the United States that 

are in direct contact with both large and small and medium sized 

enterprises, some that are frequently not aware of the potential 

and opportunities that exist in Africa. 

As I understand it, the Department of Commerce operates a 

number of regional offices around the United States where they are 

engaged in helping small, medium sized and large businesses to 

43

find markets and to find opportunities. They can help in that way 

probably in a more direct sense than we can. 

We have a number of specialists in the field who do economic 

and financial work. They bring to bear specialties in trade promotion, identification of trade opportunities, the ability to find companies that fit into a marketplace to fill a tender that may add a 

degree of fidelity and expertise that we may not always know. 

We all know Boeing. We all know GE. We all know the very 

large players. But as my colleague said earlier, if we are looking 

for smaller companies in the United States that are unfamiliar 

with the marketplace, there may be commercial offices in the 

United States who can be linked up to fill that niche that may be 

useful in Ethiopia or Nigeria or South Africa. They have a role to 

play, but again I go back to the statement that I said, as an ambassador overseas today in Africa, the job is not simply dealing with 

political issues or refugees or security issues, it is dealing with 

commercial issues as well. We are trying to promote that seriously 

and intensely. 

Mr. RUSH. In the interest of time I really would like to insist 

upon a yes or no answer to the following question. Do you believe 

efforts should remain to accelerate African regional integration, yes 

or no? 

Ambassador CARSON. Absolutely, yes. 

Mr. RUSH. Ms. Liser? 

Ms. LISER. Yes. 

Mr. RUSH. Do you believe cultural understanding and appreciation is a powerful tool to advancing our commercial and foreign policy? 

Ms. LISER. I will take the first yes on this one. 

Ambassador CARSON. The answer is yes, better understanding 

never hurt anyone. 

Mr. RUSH. All right. In 10 years of AGOA, African countries still 

need technical assistance to further benefit from the preferential 

treatment especially in the non-oil sector. Now that we know that 

the African diaspora is one of the best educated demographic 

groups around the world and is willing to trade, do you believe that 

they could fill that gap, members of the diaspora? 

Ms. LISER. I know you wanted a one-word answer, but I want to 

say that not only is the answer yes, but that we are actually seeing 

that right now. I have visited factories and facilities in different African countries where had it not been for African diaspora who had 

moved from the U.S. back to their home countries, those factories 

and businesses would not have been established. So yes, and we 

would like to see much more of that happening. 

Mr. RUSH. Ambassador Carson? 

Ambassador CARSON. The answer is yes, diaspora can make a 

very significant contribution to the continued and sustained development of the countries from which they or their parents may have 

come from. 

Mr. RUSH. And do you believe that—I know you can’t take a position on supporting or non-support of this bill, but do you believe 

that this bill would help to address some of the obstacles to further 

developing trade with the African countries? 

44

Ambassador CARSON. To give that a single word answer would 

not do justice to the bill and it would break the neutrality that we 

have with respect to it at this point. 

Ms. LISER. I would also say that we have been looking at the 

goals of the bill, and I think while we certainly cannot say that the 

administration supports the bill, I think that we share with you a 

number of the goals that are reflected in it. 

Mr. RUSH. And finally, how do you suggest that we engage the 

diaspora to help them participate in the furtherance of the growth 

of the African economies? 

Ms. LISER. Well, I think that there are a number of ways that 

that can happen and is happening. And I know that I have personally participated in a number of conferences and seminars all 

around the country that have been organized by various diaspora 

groups. And where they had delegations and trade missions that 

had come from their particular country, and asked us to come and 

be a part of a 1-day conference or seminar where that particular 

diaspora along with their businesses that had traveled from the 

capital wanted to sit down and learn more about U.S.-Africa trade, 

AGOA, et cetera. 

So these organizations actually are in my view very important. 

They are active. I won’t say that for every single country that they 

have an active organization, but again, for the ones that are relatively active I think they are doing a good job. 

And I would end by saying that I also remember a few years ago 

we had meant with a group of Cape Verdeans, American Cape 

Verdeans, and talked about this, and then they decided that they 

wanted to take a mission of Cape Verdeans from the U.S. to Cape 

Verde to try to see what kinds of business opportunities they could 

explore with their Cape Verdean brothers and sisters. And when 

they came back from that I was pleased to hear about several of 

them that had been launched and further follow-up that they were 

going to be doing. 

So they were taking their skills, their knowledge of the U.S. market, their resources and then the connections that they had with 

family and others there in Cape Verde to do that. And they are not 

the only ones who have done it but I just wanted to use that as 

an example. 

Ambassador CARSON. Congressman Rush, I think one of the most 

effective ways to find out about the African diaspora is to make 

contact with the Embassies and the ambassadors of the African 

countries that are in Washington, most of whom try to keep a fairly 

good and elaborate list of their citizens or their dual-national citizens who are in the United States. 

Contacting those Embassies, finding out the names and leaders 

of the various diaspora groups, where they are located in the 

United States, is one way to reach out to that diaspora community. 

I think that many of the Embassies and many of the African ambassadors meet on a fairly regular basis with diaspora communities 

around the United States, and using them as points of reference or 

intermediaries is always helpful. 

There are also a number of groups in Washington and some outside of Washington that also try to maintain contacts with the African diaspora without sort of showing favoritism toward the one or 

45

another of them. There are these groups that are around and they 

too have good relationships with various communities across the 

United States. 

Mr. SMITH. Thank you, Mr. Rush. Let me just in concluding ask 

if it would be unreasonable to ask that within a month or so, say 

mid-May, if you could get back to us with what recommendations 

you think would improve the bill, and hopefully an overall statement of either support or opposition. Because like I said, delay 

could easily be denial as the clock ticks out for the end of this session. So if you could get back to us I would appreciate it. 

And getting back to the Foreign Commercial Service officers, 

AGOA envisioned 14. The number is less than that and seems to 

be going in the opposite direction. Our legislation would say not 

less than 14. Believing that while the ambassador may work with 

the Boeings and the larger corporations, he or she would be less 

likely to be as effective just given all the time constraints they 

have with all their huge portfolio to deal with many of the midsize 

or small businesses, which is where that commercial officer could 

come in. So thank you. 

If you could get back, would that be reasonable? 

Ambassador CARSON. Mr. Chairman, absolutely very reasonable. 

Absolutely no question we will get back to you. 

Mr. SMITH. Thank you both for your service and for your testimony. 

Ambassador CARSON. Thank you. 

Mr. SMITH. I would like to now ask our second panel if they could 

make their way to the witness table. Beginning first with Isaiah 

Washington, who is an acclaimed actor best known for, or known 

for his role in the ABC drama, Grey’s Anatomy, among many other 

films and stage roles. 

After discovering ancestry that led him back to Sierra Leone, he 

traveled there and established his foundation, the Gondobay 

Manga Foundation, which has since opened its first school. He was 

a guest of the first White House Summit on Malaria in 2010. 

Named as advisor to President Koroma of the Republic of Sierra 

Leone in 2008, during the U.N. General Assembly, Mr. Washington 

was given the honor of being the first African-American to be bestowed full citizenship of Sierra Leone since it was granted to 

W.E.B. DuBois, back in the 1950s. 

We will then hear from Mr. Scott Eisner, who is currently the 

Executive Director of the Africa Business Initiative at the U.S. 

Chamber of Commerce. Before joining the Chamber, Mr. Eisner 

worked in international politics working for the International Republican Institute in Malawi, Africa. He has held numerous positions within the Chamber prior to his current post, and has focused 

much of his effort toward strengthening U.S.-Africa trade relations 

and promoting the interests of the American business community 

throughout the continent. 

We will then hear from Reginald Maynor, who is Director of the 

International Division of Luster Products, Incorporated. He has 35 

years of professional sales experience as well as extensive travels 

throughout Africa. Throughout his 23 years at Luster, Mr. Maynor 

has increased international sales substantially, managed a satellite 

manufacturing facility in South Africa and led Luster Products to 

46

receive Exporter of the Year in 2002, Minority Exporter of the Year 

for the U.S. Government, and several other recognitions. Mr. 

Maynor oversees all international trade and has always had a focus 

on empowerment and professional growth paying special attention 

to Africa. 

Mr. Washington, if you would proceed. 

STATEMENT OF MR. ISAIAH WASHINGTON, ACTOR, PRESIDENT, GONDOBAY MANGA FOUNDATION (SIERRA LEONE) 

Mr. WASHINGTON. Good afternoon. I would like to thank Chairman Chris Smith and Ranking Member Karen Bass for inviting me 

to testify before this subcommittee, as well as Congressman Bobby 

Rush. I think the Increasing American Jobs Through Greater Exports To Africa Act of 2012 is an important means of making U.S.-

Africa trade more beneficial to Americans, which will make the African Growth and Opportunity Act (AGOA) and other trade measures aimed at increasing U.S.-Africa trade more attractive to those 

who are not directly involved in African issues. I am particularly 

interested in the impact that this bill can have on encouraging the 

African diaspora in America, both the traditional diaspora members such as myself and those who more recently came to this 

country. 

Since I discovered my own connection to the Mende and Temne 

people of Sierra Leone, I have felt compelled to contribute to the 

reconstruction of Sierra Leone, which is recovering from a destructive civil war, and now soon on April 27th, will be celebrating its 

51st year of independence with 10 years of peace. 

The Gondobay Manga Foundation that I have established works 

cooperatively with Sierra Leoneans to achieve interventions that 

meet and have met the genuine needs and not just engage in activities to satisfy my need to help. We have collaborated to build 

schools and provide clean water, and more broadly we are working 

with top universities of the United States and abroad to establish 

internships that will spur academic and community involvement. 

Topics and specialties being pursued include African-American 

studies, the history of the tranatlantic slave trade, the plight of 

child soldiers, agricultural development and mechanized farming, 

hospital administration, women’s health issues, tropical disease research and urban planning. My efforts are part of a growing trend 

of members of the African diaspora who are reconnecting with their 

homelands or the homelands of their ancestors. 

I have looked at this example as well as my heroes, the late Reverend Leon H. Sullivan, who spent a great deal of his life connecting African-Americans and others to countries in Africa. Organizations he founded such as Opportunities Industrialization Centers International and the International Foundation for Education 

and Self Help have helped members of the diaspora and others who 

volunteered their skills to teach young people in Africa or take part 

in training programs for African entrepreneurs and farmers. I personally use Reverend Sullivan as a model for achieving sustainability and my citizenship. One village, one region, and one country. 

In November 2007, my foundation opened its first school, Chief 

Foday Golia Memorial School in Njala Kendema village for 150 stuVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00050 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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dents in grades K through 5 that I am now proud to say that has 

grown to 400 students. The new school named in honor of the 

former leader of the village replaced two grass huts that was not 

suited for their occupants. Since then, others in the diaspora have 

built wells and undertaken other projects to the benefit of the African people, and some have used remittances to their home countries to meet the needs of their families. Increasingly both the traditional diaspora and the recent diaspora here in America have 

looked toward investing in Africa. 

A report released a few years ago by Merrill Lynch, a leading 

international investment company, indicated that while Africa offers investors tremendous opportunities, there is too little available 

information on African markets and by extension, the companies 

listed on those markets. Liquidafrica.com is one of the few sources 

of information on African exchanges and their listed companies, but 

it is not as widely known as other sources of investment information. 

Magazines such as Fortune, Business Week and even Black Enterprise do not cover African exchanges or companies on a consistent basis, with the result that American investors remain largely unaware of available opportunities. Return on investment in Africa has averaged nearly 30 percent over the last decade. On African stock exchanges the most profitable sectors are banks, real estate, and hotels and tourism. 

Recently the International Monetary Fund rated the Nigerian 

Stock Exchange as the best in the world in terms of returns. The 

Nigerian Exchange beat fellow exchanges in developing countries 

such as South Africa, Turkey, India, Brazil, and the United Arab 

Emirates. In fact, the Nigerian Exchange beat out the New York 

Stock Exchange and the London Stock Exchange purely on a rate 

of return, in the IMF report. Of course the Johannesburg Stock Exchange is still the African market capitalization leader at $561 billion. 

The advances on African exchanges occurred within a broad 

range of companies including banking such as the Mauritius Commercial Bank, telecoms in Zimbabwe’s ECONET, industrials in the 

Nigerian cement, breweries such as the East African breweries of 

Kenya, and there are many others waiting for the partnerships and 

investment to reach the next level that this bill could provide, creating jobs and wealth for countless Africans. 

The African-American market in the United States is an excellent match for African investment destinations. Being increasingly 

sought after by investment companies due to rising purchasing 

power, America’s largest racial minority had a combined purchasing power of $318 billion in 1990. Eighteen years later that 

purchasing power had grown to $913 billion and is predicted to 

reach $1.2 trillion by 2013. According to a 2005 study by Juice 

Market Research, African-American investors were ‘‘considerably 

more likely than the general population of investors to have a variety of investment products such as stocks, bonds, mutual funds and 

annuities.’’

Prior to the global economic meltdown, this tendency attracted 

companies such as Charles Schwab, Smith Barney, American Express, and Merrill Lynch, which has formed partnerships with AfriVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00051 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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can-American professional associations and other groups to encourage investment by this group of investors through their firms. 

Higher income African-American investors reached a peak in 

terms of percentage of investing in the early years of this new century. An estimated 74 percent of African-Americans who earned 

more than $50,000 owned stocks in 2002, closing the gap between 

them and similarly situated white investors whose percentage 

reached 84 percent that year. Many of these gains have been eroded by the global recession, and still African-American investors 

continue to invest in real estate rather than stocks even in a difficult economy. The consensus is that this is largely due to a lack 

of knowledge about the investment opportunities, which would certainly include African investments. 

This is why I am establishing my new company, the Hira International Investment Group. The mission of HIIG is to help transform, first Sierra Leone, and then the rest of West Africa in stages, 

by strategically leveraging financial and human capital to profitably and ethically develop land, natural resources and human resources. HIIG will identify and apply the necessary resources to 

achieve its mission by utilizing its own expertise and connections 

while providing experts on a project basis. HIIG also will create alliances with qualified companies and organizations to accomplish 

specific tasks. 

Since I started my foundation and began to become more involved in Sierra Leone, I have had numerous inquiries, and I mean 

numerous, about business opportunities in Sierra Leone from investors from around the world. I have been overwhelmed, graciously so. Your bill could encourage American investors to recognize and take advantage of the opportunities in Sierra Leone and 

throughout the rest of ECOWAS, West Africa. I chose Sierra Leone 

as a starting point because that is where my ancestors are from 

and that is where my mother is from, and women should always 

come first. 

West Africa is a region of Africa from which most members of the 

African diaspora here in America have originated. There is so much 

work to do in this region of West Africa that I am willing to leave 

other regions for those who have the desire and to invest and partner with other African businesses. This bill could be the catalyst 

to open the floodgates of American investment and business to 

business relationships with African partners that will fulfill the 

promise of AGOA and create more development than any aid program could ever hope to achieve. 

Thank you for introducing this bill, and I urge you to do all you 

can to pass it. 

[The prepared statement of Mr. Washington follows:]

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Mr. SMITH. Mr. Washington, thank you very much for that statement, and Ms. Bass and I were just talking, you never hear this 

talked about on CNBC as it ought to be. And so thank you for your 

testimony and for your leadership. 

I would like to ask Mr. Eisner now if he would present his testimony to the committee. 

STATEMENT OF MR. SCOTT EISNER, EXECUTIVE DIRECTOR, 

AFRICA BUSINESS INITIATIVE, UNITED STATES CHAMBER 

OF COMMERCE 

Mr. EISNER. Thank you very much, Mr. Chairman, Ranking 

Member Bass, Mr. Rush, the staff of the committee. I think you 

guys do a terrific job and we are here to support you in any way 

we can. I want to thank you for the opportunity to testify today on 

a region of importance to U.S. trade, investment and economic 

growth. 

Against the backdrop of sagging economic activity in so many 

emerging markets, sub-Saharan Africa is an investment destination that can no longer be overlooked regardless of the sector in 

question. Six out of the ten fastest growing economies in the world 

over the past decade are found in sub-Saharan Africa. 

Looking forward, demographic trends suggest that by 2050, one 

in four workers in the world will be African and the continent will 

have over 1 billion people living on it. Compare this to China’s one 

in eight workers and the buzz over China’s untapped market, and 

we can begin to see the magnitude of the opportunity at stake in 

Africa. It is time for the U.S. to be creative and aggressive and to 

position our country in a way that will make us commercially competitive with the biggest international presence on the continent, 

namely China. It is time to move away from a strictly aid-focused 

model to one of private sector-led development. And why would we 

do this? Because we have learned over time that market-based solutions are the only real path to economic stability and long-term 

prosperity. 

So our challenge now is to operationalize the opportunities that 

Africa affords, to develop specific strategies and to mechanisms to 

promote U.S. business engagement throughout Africa or risk being 

left behind. That is the goal of the Chamber’s Africa Business Initiative. To encourage the U.S. Government to pursue policies that 

foster foreign direct investment, facilitate U.S. trade with African 

countries, expose our companies to the vast economic opportunities 

across the continent, use our foreign assistance in ways which will 

help Africans develop as manufacturers, workers and consumers, 

and to expand the role of our AmChams across the continent. And 

we can talk more about this in the question and answer session. 

I will note that Sierra Leone was the latest of our AmChams to 

come on board as full accreditation. 

The fact of the matter is, when it comes to seeing new opportunities for trade and investment in Africa we are really not alone. 

Over the last 10 years, investment in Africa from China, India, and 

Brazil have increased eightfold. Over the same period, U.S. trade 

with Africa has increased by just a multiple of three. The U.S. Export-Import Bank support to projects in sub-Saharan Africa has 

risen from an average of $455 million annually between 2006 and 

54

2009, to $1.4 billion in Fiscal Year 2011. And yet even at this rate 

of growth, the U.S. still plays a distant second to China’s Ex-Im 

Bank, which commits over $6 billion annually. 

So what policy initiatives can help us level this playing field, the 

playing field on this last emerging market as we see it? Let us 

start with this act and the passage of the Increasing American Jobs 

Through Greater Exports To Africa Act, which the Chamber believes would be a clear signal that the U.S. Government takes seriously its role in stimulating greater foreign direct investment from 

the U.S. to Africa. Let us also take steps to ensure that American 

firms seeking to break into African markets have commercial support in our Embassies. For years the Foreign Commercial Services 

officers in missions across the continent have provided valuable on 

the ground assistance to American companies in Africa. But now 

just as many in the American business community are beginning 

to focus on Africa in earnest, the Foreign Commercial Services footprint is shrinking. And if that decline isn’t reversed the U.S. economy will pay a price in lost deals and decreased competitiveness. 

In the same spirit, the U.S. Chamber continues to support more 

Africa-targeted funding from U.S. Government agencies that are already successful supporting U.S. investment in emerging markets. 

That begins with a full and speedy reauthorization of the Ex-Im 

Bank and in coming months the Overseas Private Investment Corporation. These two agencies along with the U.S. Trade Development Agency have critical roles to play as Africa moves into the 

global market. Traditional foreign aid can also be creatively deployed for public health. This is one area that materially and positively impacts Africans as employees, consumers and business partners. 

The Chamber also supports the effort to establish formalized 

trade and investment treaties with U.S. and African regional economic communities. The gains from these agreements are indisputable. For example, following the trade investment framework 

agreement between the United States and the EAC in 2008, U.S. 

exports to this bloc shot up by roughly 33 percent. 

Finally there is AGOA. It is not only good for the economies of 

sub-Saharan Africa but it also offers tangible benefits for U.S. companies here at home. The action here is urgent. AGOA’s expiration 

in 2013 threatens to undermine the significant gains that African 

economies have made under this program. As early as this September, AGOA’s third country fabric provision is slated to expire, 

directly threatening not only tens of thousands of jobs across the 

continent but also, and this is key, the good standing of the United 

States as a reliable partner for Africa’s development. We need to 

extend and expand AGOA, not let it expire. 

I presented the opportunities but I would be remiss if I did not 

discuss some of the risks. We have a very small window of opportunity here of 3–5 years to economically engage in Africa or risk 

being left behind. The demand for high quality U.S. goods and 

services by those living in Africa is dramatically increasing, but in 

the not too distant future our competition in these will improve the 

quality of their products to match that of ours, and our European 

competitors will have trading preferences that we don’t enjoy due 

to their aggressive economic partnership agreements. So if we don’t 

55

act now we might as well hang an out-to-lunch sign on the U.S. 

as it relates to doing business in Africa. 

As I close, I want to draw your attention to an interesting 

thought that a South African friend recently shared with me. He 

said, as the U.S. economic focus is pivoting toward the BRIC markets, and mainly Asia and Brazil, they, the BRICS are pivoting toward Africa. The question is, what is it that they know that you 

don’t? 

Mr. Chairman, on behalf of the U.S. Chamber, I would like to 

thank this committee for affording me the opportunity to testify. As 

I said at the outset, Africa must increasingly become a key trading 

partner and investment destination for American companies, and 

the Chamber stands ready to assist in any way we can. Thank you. 

[The prepared statement of Mr. Eisner follows:]

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Mr. SMITH. Thank you so very much for your testimony and your 

insights. 

I would like to now ask, Mr. Maynor, if you would present your 

testimony. 

STATEMENT OF MR. REGINALD MAYNOR, DIRECTOR OF 

INTERNATIONAL DEPARTMENT, LUSTER PRODUCTS INCORPORATED 

Mr. MAYNOR. Mr. Chairman, Ranking Member Bass and members of the committee, I want to thank you for the opportunity to 

address this committee on the subject of U.S. jobs and trade with 

the African continent. Today I provide a summary of my full remarks which I plan to submit for the record. 

The late Fred Luster, Sr., founded Luster Products in 1957. As 

the company matured, the focus on international trade and the opportunity within the diaspora became a priority. We are glad to see 

that clean water is a focus for African growth, because we as a 

company have drilled 20 wells, ourselves, in West Africa. We employ over 350 people worldwide with a corporate office in Chicago, 

But we believe in conducting business in such a manner as to be 

a positive role model to the community, to maintain the highest 

moral and ethical standards of business. 

We have a rich history of doing business in Africa for the past 30 years. We currently sell approximately, U.S. dollars, $2 million 

in West Africa, $1.5 million in Southern Africa and $1.5 million in 

East Africa. Though these may be modest numbers against some 

of our colleagues and multinational companies, it has been a very 

viable business proposition for us as a company. We have a virtual 

office in South Africa and we manufacture a few items from our 

range within South Africa. 

But what we have found is that by having an office and a manufacturing plant in South Africa that we grew our exports as a result of local presence. So having set up in another country did not 

affect our exports. Our exports actually grew. The region with the 

most long-term potential is sub-Saharan Africa and all of the countries within that territory. Each of these regions have their own 

unique way of conducting business, but in that uniqueness is great 

opportunity. 

I see the transformation of a hair stylist when you teach them 

a new technique and some fundamental business practices. I see 

the glow in the consumer’s eyes when you do a makeover style that 

is both different but practical for their lifestyle. Unbeknownst to a 

lot of people, the hair care business is one of the largest entrepreneurial enterprises for people of color and women specifically. 

I see the respect that we get as a byproduct of also having given 

it first. And we pride ourselves in being ambassadors of sorts for 

the U.S., to demonstrate that we have a level of commitment to 

quality and excellence that cannot be rivaled anywhere else in the 

world. 

Our biggest challenge is being able to sustain business in Africa. 

As a small minority-owned business we do not have the ability to 

extend credit to African companies that want to be long-term customers. Low interest loans would be a benefit both here and 

abroad. Some of our more mature markets are either flat or chalVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00066 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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lenged due to external forces from multinational companies, cheaper goods, some of which could be counterfeit or deceivingly similar 

with inferior ingredients. So trademark enforcement is a key. 

Our unwillingness to conduct in any back room agreements just 

to solidify business has at times been a barrier to growth. But we 

find that once you establish the rules of engagement most people 

will comply. And to this I say that business can be done in an ethical manner in Africa. 

Our experience with Ex-Im Bank has been up and down with regards to validating accounts. We feel that this process could be refined. There is a need for government to government cooperation 

with regards to trade restrictions, duties and trademark protections. We actually had a case in South Africa. Infrastructure incentives for U.S. companies would also help to make us more competitive. 

We all know the potential for Africa has never been greater. Our 

task is to help improve the economical well being of its people, to 

raise their standard of living and offer them the commitment to 

training, opportunity and the biggest commodity of all, hope. This 

bill would definitely help U.S. companies to grow because you will 

have created a solid bridge to the future that is dependent on quality goods. And it must be a win-win scenario where empowerment 

is just as important as commercial gain. 

Our plans at Luster Products is to grow our African trade by at 

least 100 percent in the next 5 years. We also plan on restructuring 

our South African operation in order to better take advantage of 

the realities of that region. And we are always seeking new opportunities on the continent with a pioneering spirit as we as Americans always do. 

And in conclusion I would once again like to say thank you for 

the opportunity to address this committee, and I would especially 

like to thank my Congressman, Bobby Rush. I look forward to answering any questions you may have. 

[The prepared statement of Mr. Maynor follows:]

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65


73814e-2.eps
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73814e-3.eps
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Mr. SMITH. Thank you very much, Mr. Maynor. Thanks to all 

three of you, your testimonies are outstanding. They provided us 

with a blueprint for action. I think having the Chamber strongly 

supporting this legislation is huge, because I think as all of you 

have pointed out, the opportunities for Americans and for American investors have been largely ignored and under-recognized. I 

mean I didn’t know that return on investment in Africa, as Mr. 

Washington, you pointed out, has averaged nearly 30 percent over 

the last decade. When most Americans are losing their 401(k)s, had 

they been invested elsewhere, in Africa, they would have been 

doing quite well. 

So again I want to thank you on behalf of the committee for your 

humanitarian work as well as in Sierra Leone. This subcommittee 

and I personally for years worked on the court there. David Crane 

was our chief prosecutor. And the pain and suffering endured by 

the people of Sierra Leone is incalculable. And to be on the ground 

helping out with education and other initiatives is, it needs to be 

praised for the great work that it is. 

The idea of Ex-Im Bank going out of business as you pointed out, 

is disconcerting in the extreme, especially as it relates to Africa. 

And you might want to expand upon that if you would. I think the 

point you made of the U.S. playing second fiddle to China export 

credit agencies, which are committing approximately $6 billion 

compared to our $1.4 billion, it seems that we are missing the boat 

by a large amount, which is why we are promoting this bill. 

We think we need to reenergize, refocus, recalculate, and really 

get all the agencies—and Ambassador Carson is a very, very effective Secretary and as he was Ambassador, but we don’t have the 

coordination among Commerce and among all the other disparate 

agencies that we need to really have a well honed strategy for Africa. 

So thank you for that support and for your comments, all of you, 

but if any of you would like to, and you especially, Mr. Eisner, on 

the issue of what happens to Africa and to U.S. businesses there 

if Ex-Im goes out of business. 

Mr. EISNER. Sure, I would be happy to answer that. The fact that 

we are playing such a catch-up role, and it is not just to China, it 

is to the lending institutions around the world as was said by a 

predecessor, the previous panel. It is the Indias of the world, the 

Turkeys, the Canadians right across our border up to the North are 

playing a hockey game around us, and we are just kind of standing 

still looking at the future kind of questioning where it is going. 

And that is why we feel at the Chamber, we really need to look 

at not just the—in the Foreign Commercial Services arena I understand that there is some 50 economies that they have identified as 

why they have pared down some of their operations in Africa. And 

while that is great that we are looking at the 50 current economies, 

we are not looking at the next 50. And I think that is some of the 

struggles that we applaud this bill for is looking beyond where we 

are today to seeing where our customers are going to be in the future and where our exports are going to be driven, and that is 

clearly to Africa. 

So the fact that the Senate and the House are taking so long to 

reauthorize the Ex-Im Bank is disconcerting to the business comVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00071 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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munity. The fact that there is even a debate about the validity of 

the Ex-Im Bank I think is a little interesting to say the least. I will 

hold the words back a little bit. But the Bank runs out of, I think, 

funds at their $100 million cap at the end of this month or early 

next month, and without swift action by the Congress we are going 

to be left with a lot of people around the world scratching their 

heads wondering why is the U.S. turning around and turning its 

back on global expansion. 

And that is the question I leave here today wondering is how do 

we do that as a country that has been looking so expansively across 

the years, and to figure out how we are just looking so insularly 

when all of our markets are broad. And our friends from Luster 

here, I think, have pointed it out that they know where the market 

is and it is called Africa. 

Mr. SMITH. Let me just ask you, comment if you would like, any 

of you, but I have actually chaired 40 hearings over the years on 

China’s human rights violations, and many of those hearings have 

focused on the one-child-per-couple policy that has resulted in some 

100 million missing girls. Forty to fifty million men won’t be able 

to find wives by 2020. The women have been exterminated through 

sex-selection abortions. The other side of that issue that has not 

been focused on enough is that they are going to have such an 

aging population with such a small number, relatively speaking, of 

working men because the women are gone proportionally, that 

China will find itself economically coming apart at the seams. 

Not so with Africa, where you pointed out, Mr. Eisner, 25 percent 

of the global workforce will be in Africa, sub-Saharan Africa, by 

2050. And that shows, again if we want to make a bet, a prudent 

bet where is the future, it is in Africa. It is not in China. It is committing suicide, frankly, with its one-child-per-couple policy. I 

would note parenthetically that I am very concerned about people 

at the U.N. Population Fund and in Beijing trying to impose on Africa what they have imposed upon themselves. That is, child limitation policies. 

And they are being aggressively, virtually every African health 

minister 3 years ago was invited to Beijing for a week of wining 

and dining, and the argument was made that if you want economic 

growth that approximates what is going on in China, follow the 

Chinese model. Limit children, because they are an anathema to 

economic growth. Nothing could be further from the truth. It 

doesn’t bear out empirically, but some have bought into that snake 

oil. I hope that would be resisted by our African friends because 

the argument has surface appeal, but it doesn’t hold up under scrutiny. 

But again, where is the workforce, where is the action going to 

be? Seems to me it couldn’t be clearer. It will be in sub-Saharan 

Africa. 

Mr. RUSH. Mr. Chairman, please excuse me, but if I just could 

interrupt just for a quick second. I had a meeting scheduled previously with the noted musician and performer, Styx, so he is there 

and I wanted to come out. I think that with Isaiah here and Styx 

in the same room at the same time, I mean this is a rare moment. 

So Mr. Chairman, thank you. I just wanted to let him—in the 

same room with Isaiah Washington at the same time. 

69

Mr. SMITH. We ought to get a picture together. 

Mr. RUSH. Thank you, Mr. Chairman. 

Mr. WASHINGTON. Thank you. 

Mr. SMITH. Okay, just—Mr. Washington? 

Mr. WASHINGTON. Thank you, Mr. Chairman, I do appreciate 

your sentiment. And I do agree by actually 2040, Africa is going 

to be one of the youngest markets out there looking for opportunities to be consumers to new consumers. I know for a fact in Sierra 

Leone, which is no bigger than the state of South Carolina, the 

former child soldiers there are now very entrepreneurial. But if 

they are not, their issues and their needs for their children and 

their families are not addressed immediately, then they already 

know how to do their former job during the civil war. 

All of these countries, every time anything goes on in Liberia or 

Guinea, I hold my breath. As long as Guinea is doing well or Liberia is doing well then I feel really good about Sierra Leone. They 

are all intertwined as far as I am concerned. 

Although my frustration is the same question, is what is the 

problem? Is it psychological? Is it philosophical? Is it guilt? Is it 

just denial, or what is the problem? Why hasn’t the great United 

States with access to trillions of dollars—I had this conversation 

with Congressman Conyers 3 years ago. Numerous attendants to 

Congressional Black Caucus’, and I have collected over 250 business cards. And I haven’t had one call asking me to bring them 

in—unbelievable. I have access to 6,500 hectares of arable land 

right there in Sierra Leone that is rife to grow anything from cotton to sorghum to sugar to anything you want, but there is zero 

interest. 

And it is really interesting. I have some people that come up to 

me, and I think with many of us there is this trauma, this thing 

that no one wants to talk about, slavery. Many business persons 

based on—I have had African-American business persons based on 

their skin being lighter than mine, that was their only reason they 

didn’t want to invest in Africa—because they were afraid that they 

would be accused of being European or White. 

So I think there is a big conversation that needs to be had beyond economics or beyond numbers and charts. And we have to 

really get down to the nitty-gritty, excuse me, on what it is that 

we are doing, what it is that we are saying when we use the word 

liberty, prosperity, and we the people and democracy. Why is it 

that it appears when I travel abroad all over Africa I have to answer for 315, 318 million Americans now that they now I am a citizen of Sierra Leone, and then when I am here I have to answer 

for 1 billion people on the continent of Africa. 

So I am hoping that H.R. 4221 is passed by this Kenyan-American who happens to be the most powerful man in the world, 

named President Barack Hussein Obama, so I can get a break. I 

thought that by becoming a dual citizen one would have the freedoms of being able to be revered. But actually I realize it is more 

problematic because I am asked more questions. And I am here to 

help support this bill, hopefully get it passed so we can really have 

some serious conversation about how we can actually galvanize, oh, 

close to $1.3 trillion or more that can help a very, very sagging 

economy here. So the $1 trillion question is: ‘‘What are the AmerVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00073 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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ican people, or should I say the American legislature and Executive 

orders waiting on?’’

Mr. MAYNOR. Yes, and I would just like to add that my experience in Africa dealing with women specifically, because I am in the 

hair care business, there are a lot of salon owners. They run their 

families. They send their children to school. They feed the community. And what we find is that when you impart knowledge and 

education and give them different skill sets they become buoyant. 

They become excited. And they treasure U.S. goods. 

This is not hype. This is not hyperbole. They want U.S. goods, 

they desire U.S. goods. But the hardest part is being able to either 

afford them or get them. And the experience that we are having 

with counterfeit goods coming out of China, I mean I have literally 

lost 80 percent of my business in Nigeria from counterfeits, because 

price points. But then if there is a product that looks like mine, 

doesn’t smell like mine but could be mine, now I am the owner. I 

am the bad guy. I am the responsible person that has now brought 

this negative and bad product to the community. 

And so we are diligent in fighting this propaganda. We are diligent in trying to secure goods. But as you can appreciate, it is not 

always easy to prove the fact. Now we know it is going on but how 

do you prove it? How do you have recourse? And those are the 

things that we are trying to deal with in Africa. But we know the 

potential. 

And to your concern, Mr. Chairman, about women and the possibility of the Chinese mindset, I don’t necessarily see that happening in Africa but it could, relative to pressure. It could, relative 

to economic strength from China saying hey, if you don’t do this 

we won’t do that. And the economics tend to shift the dynamic, 

shift the mindset, shift your ethics. And we as Americans are always strong on ethics, morals, standards, quality. If we continue to 

be a second class citizen with regards to courting Africa, I think it 

would be a travesty to be quite honest. 

Mr. SMITH. Mr. Maynor, has the U.S. Trade Representative been 

of any help to you as China has stolen your products and sold 

them——

Mr. MAYNOR. No, they have not. I honestly haven’t had any experience with the trade representatives here to be quite honest, and 

that could be as much my fault as any. But in talking with Congresswoman Bass, we spoke about the fact of centralized information. There are a lot of things that I heard here today that I did 

not know existed relative to assistance for international trade. Now 

again I could be at fault. I am the director of the department. I 

should know those things. 

But where is the consensus view? Where is the database? Where 

is the mindset or the process by which to disseminate that information to myself and people like us? I am the diaspora. I am proud 

of being that and I know that the reaction that I have. And I work 

with a lot of Africans who have come here who are U.S. citizens, 

and they are a wealth of knowledge and input with regards to 

going back to Africa because they can sometimes help us circumvent the learning curve and the hindrances of dealing with the 

wrong individuals. And so the diaspora is very important. 

71

Mr. SMITH. Our bill would establish a special Africa Export 

Strategy Coordinator, and if you look at who would be included in 

the coordinating mechanism established by the bill, it will ensure 

that everyone is on the same page rather than all these stovepipes, 

which is not unlike what we used to have with our intelligence 

community before 9/11. The left hand never knew what the right 

hand was doing. So this is what this seeks to rectify in part. 

Any other comments before we——

Mr. WASHINGTON. I would like to piggyback on what Mr. Maynor 

is saying. It is my experience over the last 6 years on the ground 

is that many of the individuals will continue to accept donorship 

if it is continued to come. But the majority of them, and what I decided before I went into Sierra Leone is to study the history of the 

people, their reactions to various uprisings, upheavals, and decided 

to ask, myself is not to go in as a missionary mindset, is to go in 

and ask five questions. 

When I first hit the ground and put a delegation together with 

the support of NAACP, with Bruce Gordon, gave me Crystalline 

Kirk. I brought an architect to do an assessment of what we see, 

the human rights assessments. I brought a doctor to give me assessment in there, and asked five questions. And the first thing I 

would ask is, what are the top five things that you would change 

about this country or your living standards, if you could? The first 

thing was always corruption. The second thing was job creation. 

The third thing was the eradication of malaria, and the fourth 

thing was cleanliness, and the fifth thing was basically being able 

to just have their education. 

It is really, really interesting the education was last, but I found 

out that if you have poverty then you are going to have corruption, 

and it is not the other way around. And I think that is the stigma 

that has been running rampant, where even myself with all of the 

support. 

And I have to honor the Bockari Stevens’ and Michael Owens 

and the ambassadors there that I have been working with, but they 

have been rendered pretty much ineffective because they are considered politicians. Whereas I show up, I show up as, they don’t 

know me as Dr. Burke, in the bush. They know me as an AfricanAmerican who kept his word. They know me as an African-American who asked five questions and delivered in a timely manner. 

In fact, when I was building the school in the village I found out 

that my architect, he lost some workers. After about 3 months of 

building all my workers left even though they were being paid on 

time, they left. And they came back about 2 months later. It took 

about 8 months to build the school. It was really supposed to be 

a year but we pushed by 8 months to deliver before the President 

was being elected so he could use that as what is good is happening 

in Sierra Leone. 

And when they returned they were in shock that the school was 

still being built and that there was a cash flow still happening. 

And when we asked why they left, they said that in their habitual 

clock nothing goes past 3 months. No job has ever gone past 3 

months in about 50 years. And when you go to Sierra Leone you 

will look at all these concrete buildings and all this rebar. I look 

72

at them like unbelievable tombstones of either pretense ego or just 

infidelity, however. 

And there is a lot of ghost schools. People didn’t put together 

NGOs, they just build schools and there are no students and no 

teachers. So I look at those things every time I go back to Sierra 

Leone and then I am left with those children looking at me going, 

okay, you have come back yet again, but very little is changing. 

I don’t know. I don’t know what more I can do or what more we 

can do. But I do know that if we continue to ignore Africa as the 

second largest continent in the world and now the rising of Boko 

Haram, we ignore Africa at our peril in this next coming 10, 15 

years. 

Mr. SMITH. Ranking Member Bass? 

Ms. BASS. Thank you, and I just have three short questions because I know we are going to come on the clock again and have 

another vote. But as I listen to you, Mr. Washington, it is amazing, 

because there is so much, I think, attention has been given to a lot 

of your work on the philanthropic side, the foundation and all, but 

yet you talk of the Hira International Investment Group. And as 

the two of us were commenting, we haven’t heard that on CNBC. 

And I just wonder about that in terms of the publicity that you 

have gotten. What has been the response? Have you tried to talk 

about that? CNN, I haven’t seen that there. 

Mr. WASHINGTON. I think I have learned my lessons. I don’t 

know, should I just say no comment? I have my theories on that. 

I think the proof is in the pudding. I have been working at this for 

6 years in a very positive manner. I have made history April 26, 

2010, along with W.E.B. DuBois. I can say that it has been put on 

media blackout but I think that would be a horrible joke. 

Ms. BASS. You said you made history? 

Mr. WASHINGTON. April 26, 2010, becoming the first AfricanAmerican——

Ms. BASS. Oh, right. 

Mr. WASHINGTON [continuing]. Human being to receive a dual 

citizenship solely based on DNA. Now my ego doesn’t lay in the 

ground on whether or not I am getting, I do have to admit CNN 

did give me a ticker. I think my wife caught it and she was happy 

to hit the record button, and when I did get back in-country I saw 

the little ticker on CNN. Isaiah Washington receives his citizenship 

in Sierra Leone. 

I think that is the fundamental problem. Although I love Fareed 

Zakaria and I love watching GPS, I just can’t support it anymore 

because every time I pick up the television, and I love my favorite 

shows from Charlie Rose. If I read, all I am hearing about is the 

Middle East. And for the life of me I can’t understand how Egypt 

fell into the Middle East. 

So when that is going on I just go inside. And I decided that the 

best thing for me to do is just keep working, keep pushing and 

keep moving forward, and eventually I will meet individuals like 

Greg Simpkins and Congressman Chris Smith and Congresswoman 

Karen Bass, and obviously the long-time support of Barbara Lee, 

Mel Watt and Congressman Rush. I don’t have time to think about 

whether or not I am getting more screen time as Angelina Jolie or 

73

Brad Pitt or Matt Damon or George Clooney. I know the answer 

to that. 

But I think that in time we can change the face of that and know 

that this is not a missionary project. This is not a back to Africa 

movement. This is an economic opportunity that all of America is 

really, really embarrassingly missing out on. 

Ms. BASS. Well, I told Mr. Rush and Mr. Smith that I am just 

really excited about being a part of the legislation and want to do 

everything I can, and especially following in their leadership and 

guidance. And so the conversation that we were having before is 

what do we do next. What is the strategy to move this forward? 

And to me it seems that part of it really is promoting, and maybe 

it is talking about GPS and holding them a little bit accountable 

in talking about looking at the economy and the economic benefits 

of investment in Africa. 

And so to me I think about the Hira International Investment 

Group, and with that I think it is part of putting the information 

out there so people are aware of the potential in the investment, 

and I think it down the line will help us get the bill passed. So I 

will look forward to continuing to work with you on that. 

Mr. WASHINGTON. In the old way of saying that we—I think I 

said it to one of my colleagues out here from the Moroccan Embassy, which I will be traveling to hopefully very, very soon hopefully to sit with BCP Bank and King Mohammed VI. I have been 

invited once. I chose not to go for some other reasons, the little 

Western Sahara issue there. 

But I think it is high time to really start negotiating this idea. 

I have been hearing a lot, this thing called sub-Saharan Africa. I 

really don’t understand what that is. Now that I am a citizen of 

Africa, I don’t know where that came from. I don’t look at any 

country that is in the south that may be harboring those that may 

have more metal than the others. I look at North Africa. I look at 

South Africa. I look at Central Africa. I look at it as Africa or Ethiopia, the land of Kemet. And I think once we really start restoring 

the historic aspect of what that great continent has contributed to 

all of humanity that would be one heck of a start. 

Ms. BASS. I agree, and I think with our own population the first 

thing we have to do is get people to understand that Africa is not 

a country, and all the benefits are there. 

Mr. Maynor, when we were talking before about how we expand 

the work, the knowledge that you have from being involved in Africa for 30 years, and how we maybe even bring together businesses 

that are interested in investing in Africa and have presentations 

from you, from Mr. Washington, talking about your personal experiences, I think, would be very beneficial. 

You mentioned a little bit about Ex-Im, but I wanted to know 

how if you have utilized Ex-Im, has the U.S. Government been supportive in other ways whether it is the trade off as was mentioned 

or——

Mr. MAYNOR. Yes, our CFO primarily deals with the Ex-Im Bank 

negotiations, and he has sent several inquiries for some of our distributors. My understanding from him is that some of them didn’t 

pass the vetting process. They may have had some late payments 

or they may have been in essence too small to even bother with. 

74

So I don’t know all of the rudimentary details relative to our ExIm Bank challenges, I just know that we have not been able to 

really consummate any assistance with regards to selling goods to 

Africa or helping with receivables. 

And so I think it is our charge to reengage Ex-Im Bank to understand what is going on and hopefully Ex-Im Bank will still exist. 

I mean again this is something that I am hearing for the first time 

and it sounds like a travesty. Even though I may not have the best 

experience, but that is only current. That is not future. You see, 

I always believe in things can change, I believe in so long as we 

put our best forward we make it known that what our requirements, our needs are and how they could assist us, I think dialogue 

helps to bring about a better understanding and cohesion with regards to getting loans and assistance. 

And again, for us it is about receivables. How do we manage 

those? How do we extend credit being the size that we are and in 

taking those challenges? So again, I would defer to my CFO for all 

of the exact details. I just know that I have not been able to sell 

more as a byproduct. 

Ms. BASS. Well, I also wonder if there is ways that we can be 

helpful to you——

Mr. MAYNOR. Oh, absolutely. 

Ms. BASS [continuing]. In terms of facilitating those relationships. Because as we are moving in this direction with the legislation to the extent that we can start practicing it now, I think will 

only help us in terms of——

Mr. MAYNOR. It will absolutely help us. And again our conversation earlier about pulling together groups of people who have a like 

mind, have a like interest, have like needs relative to Africa and 

African business. We don’t have to be the same enterprise. We can 

be different kinds of companies. But experience is experience, and 

you begin to share that. 

I have had very good experiences with again some people who 

are from the African continent. They live here. They are part of the 

diaspora. They were immeasurably helpful to us about who we 

should talk to, why we should talk to them, where we should go, 

what we shouldn’t do when we get on the ground. Those things can 

also be incorporated in some U.S. documents, some U.S. assistance. 

And I have had very good interface with various ambassadors 

and commercial attaches in different markets, so I don’t want to 

paint a picture that we have had no assistance. I think that your 

ambassadors and your commercial attaches do a brilliant job under 

the challenges that they currently have. And again all of them 

need to be empowered. They need to be giving more assistance, and 

I look forward to this bill being enacted and helping some of these 

things to happen in a very positive, in a very short-term manner. 

Ms. BASS. Well, and I will agree with our chairman here that we 

definitely need to speed it up, otherwise just by the length of time 

it won’t happen. 

And finally, Mr. Eisner, one question was turned to you from the 

other panel, which I asked specifically what countries have the 

Chambers? Obviously, South Africa, but what countries other than 

South Africa? 

75

Mr. EISNER. Sure. So we have two tiers of AmChams at this 

point, American Chambers of Commerce abroad that the U.S. 

Chamber works with to establish throughout the world. I think at 

this point we have 119 in 115 countries. As it relates to Africa, we 

have South Africa, Tanzania, Ghana, Nigeria, Cameroon, Zambia, 

Sierra Leone, which was the most recent one that we accredited, 

and Kenya, with prospects out there of Mozambique, Ethiopia, the 

Gambia, Senegal, Madagascar, Cote d’Ivoire, Mauritius, Uganda 

and Zimbabwe. I think I have that just about right. 

AmChams are organizations that are driven by American businesses doing business on the ground there. So in some countries 

you do have a presence of, I think Nigeria has a Nigerian-American 

Chamber of Commerce, but it is really a Nigerian businessmen’s 

group that is trying to do business with the U.S., which is all good 

and well but it is not exactly the directives of what AmChams are 

which are to make beach heads for American firms and give them 

some of what the Embassies do, which is the commercial understanding of the markets. And that is what AmChams primarily 

provide to American companies. 

Ms. BASS. Well, I also wanted to ask you what role the Chamber 

is playing in terms of Ex-Im and the fact that we are, the clock is 

ticking. The Chamber is one of the most powerful organizations 

here on the Hill, and especially in terms of the majority. And we 

are working in a very bipartisan fashion here, but the majority responds very strongly to—and I have certainly been lobbied about 

Ex-Im but it has been my individual companies and I wasn’t in. I 

am very excited that the Chamber is supporting this bill, because 

in the same way that I believe your presence and support can help 

make sure that this bill happens, because of the power of your organization, what are your lobbying efforts in regard to Ex-Im? 

Mr. EISNER. So we have been extremely busy. I don’t have all the 

nitty-gritty details as my coworkers on the other side of the aisle 

that focus on domestic issues have been more focusing on that, but 

I know we have probably had somewhere in the neighborhood of 30 

to 50 meetings with members of all parts of the U.S. Government 

whether it be administrative or in the House or in the Senate. 

So we are steadfastly in support. We wanted this to get done last 

year. We wanted it to get done last month, and now we are still 

at the standpoint of why isn’t it done. And I think we still have 

got some educating to do of some of your friends and colleagues to 

make them understand the value. 

Ms. BASS. This is exactly what I was referring to. 

Mr. EISNER. Yes. Yes, I know. It is the work of you all too to convince your colleagues that this isn’t something that is hurting 

American workers. It is actually helping American workers to drive 

those exports abroad, because unless you only want 7 percent of 

consumers out there which are in the Americas——

Ms. BASS. Well, I mean I think that there is a lot of misconceptions about international work, period. 

Mr. EISNER. Yes. 

Ms. BASS. And viewing it as in a time of an economic problems 

that we are having and a large deficit, we need to cut wherever, 

and the education around how this benefits our economy, I think, 

76

is really important, and your organization can certainly take the 

lead in that. 

Mr. EISNER. Well, I appreciate that. We have been very active 

out there and we hope to have some sort of concluding legislation 

here in the couple weeks. If we don’t, then I think we are all up 

the river without a paddle. 

Ms. BASS. Have there been meetings with the majority leadership? 

Mr. EISNER. I believe there have, but I don’t have the exact details on that. I can provide them to you afterwards. 

Ms. BASS. All right, thank you. 

Mr. SMITH. Mr. Rush? 

Mr. RUSH. Thank you, Mr. Chairman. This has really been a 

very insightful hearing and I am just pleased to hear some of the 

commentary from both of this outstanding panel. 

I must say, Mr. Washington, to you, you inspired me in some 

ways to have my DNA traced. And I am from the Ashanti in 

Ghana, and also from the Bukit, from the Cameroonian and Equatorial Guinea on my father’s side. My mother’s side is from the 

Ashanti in Ghana. 

So I intend to hopefully travel the same path that you led and 

even to the point of dual citizenship if at all possible. I think that 

again and I am headed down that particular road. 

My interest in the trade aspect of Africa has a self-interest perspective. The district that I represent has an unemployment rate 

for young people that holds around 60–65 percent. And as a result 

then you have all kinds of issues that are a result of unemployment, dropouts and that type thing, and mostly in a large portion 

of my district. 

And so I view the expansion of the American marketplace to Africa as being not only an opportunity to help grow a middle class 

in Africa, but also to help expand and then strengthen a declining 

middle class here in the U.S. And so I think that it is the key, it 

is the answer to both of those two problems on both continents. 

And I was in Sao Paolo, Brazil, a week ago at a conference there 

on energy. And Brazil is one country that is, they don’t rely on foreign oil at all. There is no foreign import of oil, petroleum of any 

note. It is free from foreign oil. And the reason why is that they 

use ethanol that is derived from sugar cane. And in your comments 

you were talking about how arable the land is in so many African 

countries, all right, where you can grow. So the point is that was 

driven home to me was that energy and agriculture, there is a 

nexus between energy and agriculture where, and if we are going 

to meet the demands of the next 25 years in terms of these emerging countries and the expansion of the middle class and the things 

that the middle class want, need and will purchase, then we have 

got to also deal with the energy components of that and the energy 

demands of that. 

So you can elaborate and you can put it in perspective. 

Mr. WASHINGTON. You are exactly right. I am trying to contain 

myself here. I have been overwhelmed a couple of times here in 

some thinking, think-tanking here. I have about a clear vision on 

just elephant grass alone which is growing pretty much 90 percent 

all over West Africa. That’s the new oil, as well as water being the 

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new oil. I have a vision for that. That’s a cost of $3 million to get 

that started immediately where a biomass, biofuel opportunities 

right there in Sierra Leone to start development as soon as possible. Holland has bid on it. There is interest from Denmark. 

But again, I repeat that my President has put out a mandate 

that he is trying to hold out to keep from being neo-colonized by 

the Europeans and/or, I am not so sure the Chinese are going to 

colonize Africa, but they certainly, I don’t think they really care 

enough about colonizing anything. I think we can take a lesson 

from Chinese as opposed to really beating them down about the 

human rights issues, but take a lesson that they are focused. They 

are very focused on what they want and what they need. 

Now can we fault them for going and getting what they need and 

not talking about it? No. They go and get what they need for their 

people. And I go back to our strategy, our marketing tool, our 

branding tool. Are we doing the same or are we just sitting back 

posturing and boasting about all kinds of things and acts and bills 

that are falling at the wayside and being left behind. As you say 

we are standing flat-footed. What I have said repeatedly on Capitol 

Hill in the last 6 years, I have over 6,000 acres of land to grow 

whatever you need. 

I know I have just returned from Sao Paolo, Rio de Janeiro, also 

Recife and the state of Ceara in Fortaleza. And I know my phone 

is blowing up for me to get back to Brazil so I can walk them into 

Sierra Leone. Now am I going to keep them at bay forever? I have 

gotten calls from Russia, India, and China. This Dr. Burke thing 

speaks in all languages, 65 different languages around the world. 

So it is almost like an American Express card for me because the 

power of this television. 

But I am American. There is American at the end of African, if 

I choose to call myself African-American. And it is very difficult. I 

too feel like I am under pressure, in the position as my President 

in Sierra Leone is, how long can I hold out on cash that is being 

put on the table by these other entities that are saying, whatever 

you need, whether they are going to build that road right or not, 

whether or not going to take care of the children that are being 

born out of wedlock. There are a lot of Asian and Sierra Leonean 

African children are running around that need parents and they 

don’t have them. 

So we have other social issues that are developing on the ground 

as long as we continue to ignore, or for some reason we are thinking that this is the European’s backyard like we have the sense 

that Latin America is our backyard. I don’t really understand how 

that sentiment is still being felt, but I can see it by action or lack 

of. So agriculture, agriculture, agriculture is the name of the game. 

I think right away we can employ millions of people here in America alone with their expertise and innovation as soon as this bill, 

hopefully 180 days after this bill is signed. I can’t wait. I am waiting with bated breath and I hope for the best. But again we are 

just talking about great ideas that I have gone over for years in 

being in Sierra Leone that I know we could implement tomorrow. 

Mr. RUSH. I yield back, Mr. Chairman. 

Mr. SMITH. Okay, we are joined by Congresswoman Jackson Lee 

from Texas. 

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Ms. JACKSON LEE. Mr. Chairman, thank you for your courtesies, 

and to Ranking Member Bass and to the author of this vital, the 

authors of this very vital legislation. I want to just take a moment 

to applaud you. 

I went in the inaugural trip on AGOA legislation, African 

Growth and Opportunity, which talks about legislation, bringing 

goods out. I traveled to seven nations. One of our persons obviously 

quoted the former Ranking Member Donald Payne and Charlie 

Rangel. And we had all hopes, I think Mr. McDermott on the Ways 

and Means was part of this, and we see the positiveness of it. 

But as I listen to both of you dealing with this legislation, one 

of the things that you are highlighting is the dumping that comes 

where African exports are even having difficulty under AGOA. H.R. 

4221 talks about an overdue partnership and respect and recognition. That Africa is an adult, is worthy of the respect from the 

United States as an equal partner in trade, in defense, in issues 

of health care and respect of culture. So I certainly wholeheartedly 

support H.R. 4221. 

And I heard Ranking Member Bass ask the question about leadership, and I really think she was asking it, and I don’t want to 

interpret her words, but for a good bill such as this with a simple 

premise, why this cannot move through committee and move to the 

floor of the House. Because everybody is talking about jobs, and 

when you talk about exports you are talking about jobs. 

So let me try to get to questions and thank all the witness. Let 

me acknowledge my very, very dear friend, Mr. Washington, a constituent, a Houstonian. I don’t know if he knows how many love 

him in our city and community, very proud of him, and these are 

not unnecessary words. For us he is our Oscar-winning, talented 

provocateur of the arts, of acting. 

Mr. WASHINGTON. Not Oscar yet. 

Ms. JACKSON LEE. Excuse me, my claim. You can’t in any way 

disagree with a Member of Congress. He is our Oscar-winning, I 

have promoted you, I understand. Take the hint. For us it is an 

Oscar because of his talent and because of his generosity. And so 

we have inducted him ourselves because of the broad view that he 

has on the world. 

I want to thank Mr. Eisner for your presence, and Mr. Maynor, 

and everybody knows Luster Products. And we certainly want to 

make those products available. 

But let me just pose to you, Mr. Eisner, and I am going to go 

across, and again I will try to be swift. I was with the President 

in South and Central America for the Organization of American 

States, and beside what ever other news came out of Colombia, 

South America on other unnecessary activities, the interest was to 

focus on the partnership and economic link to South and Central 

America. And though this is a sidebar comment, there are two 

states that have Afro-Colombians. 

And what I saw in South and Central America, been there a 

number of times and have been to a number of regions that have 

African-Brazilians, African et cetera, but there was still that strong 

link between the Afro-Colombians and Africa. Not that they just 

came back or they have some, but just the lineage connection. And 

I think in this country we have to do a better job. There is no inVerDate 0ct 09 2002 10:10 Jun 05, 2012 Jkt 000000 PO 00000 Frm 00082 Fmt 6633 Sfmt 6633 F:\WORK\AGH\041712\73814 HFA PsN: SHIRL
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sult—Chinese-Americans are strongly supporting China, will defend to the end. Korean-Americans, there is a trade bill with 

Korea. Certainly my friends of the Hispanic and Latino community 

recognize the importance of South and Central America. And Canadians or Canadian-Americans or whoever recognize the importance 

of North America, Canada. 

What we have to do is recognize that importance. And I just 

want to ask this pointed question to Mr. Eisner, because I didn’t 

hear, Mr. Chairman, did you secure an endorsement of 4221? I just 

did not hear. And the reason why, I was with Mr. Donohue right 

across the table in this meeting. We were glad that he here—excuse me, I am sorry. We were glad that he was in Colombia, and 

I was in Colombia right across from him. 

This is a bipartisan bill, so this is not a criticism but it is a note 

to you. The Chamber has not done good work on Africa. And so my 

question is, are you suggesting that you will look closely at H.R. 

4221 and really work on what I started out by saying that Africa 

is an adult and should be treated as such and we should be increasingly looking to send mature delegations over joined with 

Members of Congress. Again it is not a criticism, so let me just 

stop. Is this a bill that you have looked at, sir, and can work with 

the Chamber? 

Mr. EISNER. Yes, we said at the outset we are supportive of this 

legislation. 

Ms. JACKSON LEE. Okay, thank you. 

Mr. EISNER. At any point of having a bipartisan support especially across the way with the Senate that focuses attention on Africa, I would think we would be remiss if we didn’t support it. 

There are elements, I think, as we analyze it further and further 

we will probably want to work with you on and massage a little 

bit like any piece of legislation, figure out where the right and the 

wrong are, but to put some centralized focus in this government on 

Africa is long overdue. 

I take a little umbrage to say that the Chamber hasn’t done good 

work in Africa, because I think we have done a lot of work trying 

to help our members understand the prospects that exist in Africa 

across the continent. It is not just one place, it is many countries. 

And we have spent a lot of time in the last couple years, I will 

admit that prior to kind of myself and my colleague, Danielle 

Walker’s arrival on the scene from Africa at the Chamber, we overlooked it. But that is a time that has gone behind us we are looking 

to the future, and we think that there is an opportunity here for 

our membership to really engage Africa in a much more substantial 

fashion. 

Ms. JACKSON LEE. Well, I am delighted that Ms. Walker is here. 

We obviously know her reputation. But I see a lot of friends in the 

room here. But let me just make the point, I would hope that you 

would reach out and talk. You have got the chairman of the committee that is a powerful support of Africa, a number of members 

here. That you would reach out to members who are stakeholders 

in that area. 

And I would offer to say without insulting the chairman and the 

subcommittee and the ranking member, members of the various 

caucuses, I would just say the Congressional Black Caucus, and I 

80

am not sure if that kind of give and take has occurred. This bill 

will be a great groundwork for that. Mr. Rush has traveled all over 

America talking about Africa, and I have been there over a number 

of years having started going to Africa in my early college years 

and have not stopped on that. So I would encourage that. So thank 

you for that and I hope you will expand your reach to members on 

that issue. 

Can I just say to Mr. Maynor, you have made a very valid point. 

One thing I want to make sure, you may have discussed it. I think 

I heard you talking about the Export-Import Bank should be helping you? We are strong supporters. Maybe you are going to say 

that it is, and we want to congratulate you if it is. 

Mr. MAYNOR. Well, my comments earlier were that we have had 

some challenges. Primarily my CFO does the day to day or the intricate interface with Ex-Im Bank. And what I was saying is that 

as a leader or as the director of the department I have not seen 

any sales as a byproduct of having Ex-Im Bank support. But there 

are challenges and in challenges with our customers. From what 

my CFO has said that they have done the scrutiny, but some of the 

accounts that we wanted to do business with did not hold up to 

that scrutiny. 

But my point to that is what are the rules of engagement? What 

are the fine lines? What can be done in a risk-reward kind of 

mindset? Because if we don’t take a chance there will be no results. 

Ms. JACKSON LEE. Absolutely. There are 800 million-plus and 

growing. There may be 1 billion soon, and there are 53 nationstates. And let me just make the point that we need to do a better 

job of making sure that our institutions like World Bank that does 

another business, but Ex-Im understands that they work for you, 

and with the Chamber’s good work in terms of exploring where the 

good opportunities are. When I have talked to business persons 

they have said, we want to know how to get our money out of Africa——

Mr. MAYNOR. Exactly. 

Ms. JACKSON LEE [continuing]. Once we do business. One of my 

great pastors, Pastor Lockett of the CME church, went into agricultural business in Ghana and I think they were doing quite well in 

terms of they bought a lot of land, et cetera, whether he has passed 

and whether it is continuing. We need to build institutions, institutional relationships. 

And I think something that Brother Washington said, I am going 

to ask him, to show that we have staying power is vital. So can I 

just end by saying that I think our message should be that this vehicle of H.R. 4221 should be establishing that partnership of exports, but we need to be, and we have enough tools from the U.S. 

Department of Commerce from trade missions that they used to 

take, to match up, and the Chamber, the right business partner for 

you to survive. 

Let me move to Mr. Washington as I conclude. I have already 

said how proud we are. But you made a point about staying power, 

and that was an enormously emotional point. I have been to Sierra 

Leone but we know that there are other challenges. Even with a 

growing middle class there are challenges on the continent. 

81

And I don’t want to sound patronizing, but some of it is their 

charm. Some of the cultural connectedness, historical culture is 

part of the continent’s charm. I don’t know if they will lose all of 

that. I don’t think they need to lose it to have a prosperous, thriving export-import and producing products. I don’t think they need 

to do it. But what you were saying is, and I think that is the point 

that we, that this bill, but overall need to convey. And if you would 

share that with me. They need to know that Americans are there 

to stay for a good purpose. 

And I have no criticism that I want to publicly say, but we know 

that China is there in a large way. I happen to be a chauvinist on 

America. I think we have a better product, better construction, better rules, better laws that we can be a more constructive partner 

with Africa, but they always ask the question of staying power. I 

come from Texas so you know there is oil and gas. I don’t want to 

throw oil and gas under the bus. I want to see minority companies 

from the United States, KMAC, for example, down in Houston, 

Texas, having the opportunity to be like my multinational friends 

that have been there for 50 years. I need a two-way street that our 

heads of government in Africa will be open but we need to prove 

staying power. 

Mr. Washington, if you would just comment on that part. 

Mr. WASHINGTON. Again, this is probably the best time I have 

ever had on the Capitol Hill in my entire African-American life. I 

would love to meet this gentleman named case law in our good 

home state of Texas. I have been getting all kinds of roadblocks. 

I know he wants to get into Sierra Leone. I will be happy to bring 

him. 

The one thing that I have been able to utilize, I became an actor 

because I wanted to eradicate stereotypes for African-American 

men. I had no interest of becoming the next Denzel Washington 

whatsoever. I became an actor so I could sit here one day and look 

before you guys and there it is. I am excited about your excitement. 

I am excited about the idea, but I also know that without a belittling of the highest office in the land, without trying to downsize 

the leader of the free world, it cannot go unnoticed that you have 

millions and millions of people of color, particularly those of the African diaspora, the African descent that what it would mean if this 

President, who happens to be African-American, would sign a bill 

like H.R. 4221. I know for a fact there will be jubilee in every corridor and every dirt road and every shanty all over that continent 

and beyond and even in Brazil where I just left. I can’t wait to get 

to Salvador Bahia. 

So what my purpose in life is, is to—I have had a very privileged 

life. Growing up in Houston and never, ever being in a position 

where my skin color or my, anything to put it in a position, believe 

it or not, growing up in Missouri City, Texas, being the first graduating class of Willowridge High School. It was always diverse before we even had the word diversity. So I didn’t hit ignorance until 

I joined the military. I didn’t get ignorance until I started meeting 

other people from smaller towns and smaller states. So I have always thought big as most Texans do. 

But Sierra Leone is not as big as the state of Texas, and the reason why I stay true to it is because I know we can change this 

82

country around. It is only 71,000 kilometers from east to west. You 

can travel it in 6 hours. And the history that I have discovered in 

my lineage is that there is not one African-American walking on 

North American soil that did not get processed through Bunce Island, which is off the coast of Sierra Leone. It is not coming from 

Goree Island or Elmina Castle, most of the slave labor that left 

those slave castles went to the Caribbean and went to South America. So all I am simply trying to say is that we have some of the 

richest Africans in the world right here in North America, right 

here in the United States, and I just want to try to wake them up. 

And hopefully if we can get our President to help wake them up 

by signing this bill as soon as possible, I think we can get a lot of 

other congressional careers extended by providing a lot of jobs as 

soon as possible. 

Ms. JACKSON LEE. I don’t want to overstep the chairman. He and 

Mr. Rush may be rushing toward the floor, but I am just going to 

put on the record that this would be a non-painful bill to put on 

the floor. I don’t know how I could capture it as a trade bill, but 

I would say it is a jobs-creating bill, Mr. Chairman. 

And so I would hope that we could, I guess we have not marked 

it up, I don’t want to misspeak again, but that this bill could be 

marked up by Foreign Affairs. I don’t know if overriding jurisdiction is also in Ways and Means. So we have the complexity of the 

congressional process of committee work, and also on the Senate 

side. I don’t want to speak for the Commander in Chief, but I can 

feel very comfortable that that office would be excited and would 

be very willing to support any bill that we passed out on this very 

topic. 

But if you would just close by just going to the importance of 

America staying, like if we make a commitment we have to show 

that we are willing to stay in Africa and that we are willing to 

commit to Africa. 

Mr. WASHINGTON. That is the strategy that I have been using. 

And I say this to Congress and said earlier is that long ago we 

were at the forefront of not just doing humanitarism but going into 

countries and having that staying power. And not just going in 

bringing tanks and wars and guns to secure whatever it is we 

thought we needed. I think we can have more than enough not only 

for ourselves but the world at large by engaging Africa and becoming a staying power. 

Now that doesn’t mean building a military base in various countries in Africa. I have already had that conversation with people interested in Africa. I don’t know if that is the right strategy. But 

to have individual business persons providing jobs on both continents where everyone can create their own dreams. 

On the world that I have been benefiting from in Hollywood is 

that everyone watches YouTube, and they are going to be watching 

me right now and they are going to be waiting, and I just hope that 

the wait coming from the American people and our Government in 

the United States of America, which—even Liberia shares the same 

constitution as we do, guys. Sierra Leone had the first Freetown, 

before Liberia. So there would be no HBCUs if it were not for that 

man, Joseph Cinque, who tried to turn the Amistad around, who 

happens to be my ancestor. 

83

So I am going to continue fighting under the radar if need be, 

but hopefully after this we can get out of the dark and stop calling 

the continent the Dark Continent, and shed the right proper light 

on it and get some things done that will benefit those who built 

this nation that happened to have been put in the position where 

we were sold to this nation. 

Ms. JACKSON LEE. Mr. Chairman, thank you for your kindness. 

Thank you, Mr. Washington, and for all the witnesses. And I just 

commit to work with this subcommittee and the leadership of 

Chairman Smith, on the author of this bill, coauthor of this bill, 

Mr. Rush, the ranking member Ms. Bass. 

I think this is an excellent idea. I think this is the absolute perfect connection or next step to AGOA. And I think that in spite of 

an election year, I don’t see why this bill couldn’t be passed and 

signed by the President of the United States in this election year. 

How noncontroversial, how job-creating is this or not? 

I yield back to the gentleman. Count me as one of the advocates 

for this legislation. 

Mr. SMITH. And we thank the gentlelady for her very kind comments. 

Mr. RUSH. Mr. Chairman, I would be remiss, I ask for just one 

additional——

Mr. SMITH. Mr. Rush. 

Mr. RUSH. I just ask for one additional moment. I would be remiss if I didn’t ask Mr. Washington this question. Because he kept 

referring to Hollywood, and I know he is an actor and renowned 

actor, and he has had a lot of—from the city that produces greater 

people in general, from Houston Texas. I wanted to just ask him 

this question. 

I have been in contact recently with a fellow by the name of Mr. 

Jeta Amata. And he brought to my attention that the fastest growing industry in the entertainment industry is in Africa. And that 

the Nigerian film industry makes more films than the American 

and is surpassed only by, they call it Nollywood, is only surpassed 

by Bollywood. 

And Nollywood has grown at about 18 percent a year and was 

worth almost $300 million in 2010. And according to research by 

the management and consulting company of McKinsey & Company, 

it produced about 2,000 new films in 2010, and that number is 

growing at 15 percent a year. So not only does Africa have a lot 

of potential in terms of agriculture and energy, but also in terms 

of the entertainment industry. 

And can you want to say anything about that meeting? 

Mr. WASHINGTON. You are very clever, sir, but thank you very 

much, Congressman Bobby Rush. Yes, as soon as I get on that last 

train smoking I am going to New York to make a little bit more 

of history working with Black Ivory Films Limited and Tony Abulu, 

who has been an extraordinary producer for Nigeria for the last 30 

years. I will go down in history as probably the first African-American lead joining forces with Vivica Fox and Haitian extraordinaire, 

Jimmy Jean-Louis. 

Start filming April 23rd, completely supported by Ex-Im Bank 

and all the various governors of Ogun State, Abeokuta and others. 

I am hearing from my text that we are doing a press conference 

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on the 20th of April to talk about just this, is how 5,000 films a 

year come out of Nollywood and they are not getting any attention. 

So I think President Goodluck Jonathan is very excited that I have 

allowed my brand to help co-brand their beautiful sky mountains 

to show what is good that is going on in Nigeria as opposed to the 

countless loop of what is going on in Jos. 

Like the gentleman said before, the Ambassador, there is other 

beautiful things happening thousands and thousands of miles 

away. It is just like Congressman Bass know or Congressman Lee 

knows that what is going in Studewood is not what is going on in 

Dallas, or what is going on is not what is going on in Tyler. What 

is going on in Compton is not what is going on in Beverly Hills. 

They are totally separate. 

But if you are only seeing that one thing, Kony 2012 or the red 

one, the negative, the conflict, then obviously television is one of 

the most powerful mediums in the world. And that is why I am 

using my brand to have 25 countries watching a film from the 

press conference to the red carpet. So everyone in all of Africa can 

see the beauty of what is going on in Nigeria and how we are making this historical film, Dr. Bello. 

Mr. RUSH. Yield back, Mr. Chairman. 

Mr. SMITH. Anybody else? 

Ms. BASS. Let me just say in closing, this has been a very inspiring hearing, it really has, and I am very excited about this. But the 

hearing is step one, and afterwards it is about a strategy. It is 

about making this happening. And we were certainly talking 

amongst ourselves about what those next steps could and should 

be. And so I just hope that the three of you won’t object to us calling on you again, because we would definitely like to include you 

as partners as we move this along until the bill signing. 

Mr. WASHINGTON. Thank you. 

Mr. SMITH. I too want to thank our very distinguished witnesses 

for your patience. This is kind of late and you have been very, very 

generous with your time, but more importantly with your talent, 

and by giving us insights and additional arguments to make as we 

move this legislation forward and gain a greater understanding of 

the promise that is Africa. 

The Nigerian films issue is one that gets scant focus. I didn’t 

know, Mr. Washington, you will actually be starring in one. Maybe 

you could tell us what the plot is. I will ask you privately. 

But thank you so much. It really is very, very helpful and you 

have been extraordinary. With that the hearing is adjourned. 

[Whereupon, at 5:42 p.m., the subcommittee was adjourned.] 

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