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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5480 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 5480

  To promote economic diversification, entrepreneurship, and private 
 sector development in Africa, and to promote partnerships among small 
  and medium enterprises in the United States and the African private 
           sector in qualified sub-Saharan African countries.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 2006

  Mr. McDermott (for himself, Mr. Lantos, Mr. Rangel, Mr. Payne, Mr. 
English of Pennsylvania, Ms. McCollum of Minnesota, Mr. Jefferson, Mr. 
Berman, Mr. Doggett, Ms. Millender-McDonald, Mr. Meeks of New York, Mr. 
 McNulty, Mr. McGovern, Ms. Bordallo, Ms. Watson, Ms. Corrine Brown of 
 Florida, Ms. Eddie Bernice Johnson of Texas, Mr. Gonzalez, Mr. Miller 
    of North Carolina, and Ms. Jackson-Lee of Texas) introduced the 
 following bill; which was referred to the Committee on International 
 Relations, and in addition to the Committees on Ways and Means, Small 
   Business, and Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To promote economic diversification, entrepreneurship, and private 
 sector development in Africa, and to promote partnerships among small 
  and medium enterprises in the United States and the African private 
           sector in qualified sub-Saharan African countries.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``African Entrepreneurship Act of 
2006''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) According to the Organization for Economic Co-operation 
        and Development (OECD), the economies of sub-Saharan African 
        countries have registered their highest overall growth in eight 
        years--more than five percent in 2004--due to rising global 
        commodity prices, the expansion of production in oil-producing 
        sub-Saharan African countries, and prudent macro-economic 
        policies.
            (2) While economic liberalization has reduced the 
        involvement of governments of sub-Saharan African countries in 
        the economic sector, it has not resulted in improved credit 
        delivery to finance domestic businesses, particularly small and 
        medium enterprises in sub-Saharan African countries, in the 
        private sector.
            (3) Increasingly, governments of sub-Saharan African 
        countries are making concerted efforts to investigate 
        corruption, prosecute corrupt officials, and recover public 
        funds through the creation of agencies such as the Economic and 
        Financial Crimes Commission in Nigeria, the Serious Fraud 
        Office in Ghana, the Federal Ethics and Anticorruption 
        Commission in Ethiopia, and the Anticorruption Commission in 
        Zambia.
            (4) A major challenge for sub-Saharan African countries is 
        to productively invest their own capital to expand domestic 
        business ownership and create employment, particularly for 
        youth, in order to promote broad and sustainable economic 
        growth and democracy.
            (5) While the microenterprise movement has shown itself to 
        be an important generator of self-employment, research and 
        experience throughout sub-Saharan Africa also have proven that 
        small and medium enterprises are the greatest catalyst for job 
        creation, skills transfer, and wealth creation in sub-Saharan 
        Africa.
            (6) Although small and medium enterprises in sub-Saharan 
        African countries make up the largest portion of the formal 
        economy in sub-Saharan African countries, the average annual 
        contribution of investments of such small and medium 
        enterprises to growth in the gross domestic product of sub-
        Saharan African countries by proportion declined from an 
        average of 14 percent in the 1970s, to 13 percent in the 1980s, 
        and to 12 percent in the first half of the 1990s, while during 
        the same period, the proportion of gross domestic product 
        investment by small and medium enterprises in other developing 
        regions increased.
            (7) Many retail banks avoid lending to small and medium 
        enterprises in sub-Saharan African countries or engage in 
        predatory lending practices, considering such small and medium 
        enterprises as presenting a high credit default risk and as 
        costly to administer, and instead concentrate on providing 
        credit to larger local or international firms or on holding 
        high-yield government bonds.
            (8) This approach harms the prospects for sustainable 
        private sector development by ignoring the necessity of a 
        bottom-up capital formation--a key factor in creating jobs 
        which is necessary to reduce poverty and income inequalities.
            (9) Governments of sub-Saharan African countries must 
        develop the fiscal policies, economic institutions, legal 
        frameworks, labor market protections, commercial 
        infrastructures, and lending practices to create and manage 
        competitive business environments for investors in small and 
        medium enterprises in sub-Saharan African countries. Further, 
        small and medium enterprises in sub-Saharan African countries 
        must acquire the business skills, expertise, and capital 
        financing necessary to manage successful businesses.
            (10) The innovative trade capacity building efforts 
        underway with African nations through the United States Agency 
        for International Development's Regional Trade Hubs enable 
        African economies to become better integrated into regional and 
        global markets to take advantage of trade opportunities 
        afforded by the African Growth and Opportunity Act (19 U.S.C. 
        3701 et seq.). These efforts can be further augmented by 
        providing technical assistance to small and medium enterprises, 
        to help diversify and grow the economies of sub-Saharan Africa.
            (11) The experience of United States private volunteer 
        organizations shows that deliberately targeting the capacity of 
        small and medium enterprises, including farmers' cooperatives 
        and rural businesses, to access and participate in local, 
        national, and regional markets effectively builds the capacity 
        of small and medium enterprises to participate in export 
        markets.
            (12) A World Bank study estimates that countries chiefly 
        exporting a single commodity, such as oil, may be 22 times more 
        likely have a civil war break out than a country with a diverse 
        mix of exports.
            (13) By the year 2015, it is estimated that 25 percent of 
        United States oil imports will originate in sub-Saharan Africa, 
        making the political and economic stability of the region of 
        paramount importance to United States national security. Recent 
        incidents of violence and the recurrent disruption of oil 
        production, including, for example, in the Niger Delta of 
        Nigeria, highlight the need to work closely with local 
        communities to create jobs and spread the benefits of the 
        global economy to local residents. Many oil corporations have 
        established local content programs to provide contracting 
        opportunities to indigenous business leaders, but many of these 
        business people lack the skills necessary to benefit from the 
        highly profitable business projects available to them.

SEC. 3. SENSE OF CONGRESS; DECLARATION OF POLICY.

    (a) Sense of Congress.--It is the sense of Congress that in an 
increasingly competitive global environment driven by transformations 
in technology, communications, transportation, finance, production, 
labor markets, sub-Saharan African countries should develop a strong 
and diverse private sector, particularly small and medium enterprises, 
to be full participants in the global economy.
    (b) Declaration of Policy.--It shall be the policy of the 
Government of the United States to make available for private sector 
development in sub-Saharan African countries professional, technical, 
and other resources for capacity-building for retail banks and small 
and medium enterprises, including farmers' cooperatives and businesses, 
to promote entrepreneurship and economic and export diversification, to 
expand the formal sector, and to increase trade under the African 
Growth and Opportunity Act (19 U.S.C. 3701 et seq.) of exports from 
Africa to the United States and trade among sub-Saharan African 
countries.

SEC. 4. AFRICAN ECONOMIC DIVERSIFICATION FINANCING RATE.

    (a) In General.--Subsection (c) of section 4611 of the Internal 
Revenue Code of 1986 is amended--
            (1) in paragraph (1), by striking ``and'' in subparagraph 
        (A), by striking the period and inserting ``, and'' in 
        subparagraph (B), and by adding at the end the following new 
        subparagraph:
                    ``(C) the African Economic Diversification Fund 
                financing rate.'', and
            (2) in paragraph (2), by striking ``and'' in subparagraph 
        (A), by striking the period and inserting ``, and'' in 
        subparagraph (B), and by adding at the end the following new 
        subparagraph:
                    ``(C) the African Economic Diversification Fund 
                financing rate is, with respect to a petroleum product, 
                the column 1 general rate of duty under the Harmonized 
                Tariff Schedule of the United States that applies to 
                such petroleum product.''.
    (b) Application of African Economic Diversification Fund Financing 
Rate.--Section 4611 of such Code (relating to environmental tax on 
petroleum) is amended by adding at the end the following new 
subsection:
    ``(g) Application of African Economic Diversification Fund 
Financing Rate.--
            ``(1) In general.--The African Economic Diversification 
        Fund financing rate shall apply only to petroleum products 
        entered into the United States directly from a beneficiary sub-
        Saharan African country described in section 506A(c) of the 
        Trade Act of 1974.
            ``(2) Termination.--The African Economic Diversification 
        Fund financing rate shall not apply after December 31, 2011.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 5. AFRICAN ECONOMIC DIVERSIFICATION FUND.

    (a) Creation of Trust Fund.--Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by inserting at the end the 
following new section:

``SEC. 9511. AFRICAN ECONOMIC DIVERSIFICATION FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `African Economic 
Diversification Fund', consisting of such amounts as may be 
appropriated or credited to the African Economic Diversification Fund.
    ``(b) Transfer of Certain Taxes.--There are hereby appropriated to 
the African Economic Diversification Fund amounts equivalent to the 
taxes received in the Treasury under section 4611 (relating to 
environmental tax on petroleum) to the extent attributable to the 
African Economic Diversification Fund financing rate under section 
4611(c).
    ``(c) Expenditures.--Amounts in the African Economic 
Diversification Fund shall be available, as provided by appropriation 
Acts, only for purposes of making the following expenditures--
            ``(1) Department of agriculture.--Expenditures related to 
        personnel and technical assistance provided by the Secretary of 
        Agriculture, through the Foreign Agriculture Service, for the 
        purpose of--
                    ``(A) developing and facilitating value-added 
                agricultural processing activities, as determined by 
                the Secretary of Agriculture, in qualified sub-Saharan 
                African countries,
                    ``(B) developing a comprehensive plan for the 
                expansion and diversification of agricultural trade 
                between qualified sub-Saharan African countries and the 
                United States under the African Growth and Opportunity 
                Act and among sub-Saharan African countries,
                    ``(C) arranging trade and investment missions to 
                qualified sub-Saharan African countries to generate 
                joint venture investment and joint venture marketing 
                agreements between farmers in the United States and 
                qualified sub-Saharan African countries, and
                    ``(D) improving market access for United States 
                agricultural products and equipment in qualified sub-
                Saharan African countries by--
                            ``(i) strengthening the capacity of 
                        agricultural producer organizations in 
                        qualified sub-Saharan African countries to 
                        identify agricultural equipment and supply 
                        needs,
                            ``(ii) working with United States financial 
                        institutions to increase the number of such 
                        financial institutions that cooperate with the 
                        Supplier Credit Guarantee Program,
                            ``(iii) working with financial institutions 
                        in qualified sub-Saharan African countries to 
                        remove obstacles that inhibit fuller 
                        implementation of the Export Credit Guarantee 
                        and Intermediate Export Credit Guarantee 
                        programs, and
                            ``(iv) facilitating access for ports of 
                        entry and warehouse facilities in qualified 
                        sub-Saharan African countries to the Facilities 
                        Guarantee Program.
            ``(2) Small business administration.--Expenditures related 
        to carrying out the 21st Century African Entrepreneurs Program, 
        established pursuant to section 22(g) of the Small Business 
        Act, in qualified sub-Saharan African countries.
            ``(3) Department of commerce.--Expenditures related to 
        personnel and technical assistance provided by the Secretary of 
        Commerce for the purpose of--
                    ``(A) promoting business partnerships between 
                entrepreneurs in the United States and in qualified 
                sub-Saharan African countries,
                    ``(B) hosting conferences and initiating 2-way 
                trade missions to discover and encourage opportunities 
                for private sector cooperation between the United 
                States and qualified sub-Saharan African countries,
                    ``(C) helping United States firms fully understand 
                the risks and benefits of doing business in qualified 
                sub-Saharan African countries and developing tools and 
                mechanisms to reduce such risks and enhance such 
                benefits,
                    ``(D) facilitating the transfer of United States 
                commercial and manufacturing technology to qualified 
                sub-Saharan African countries for the purposes of 
                expanding commercial opportunities,
                    ``(E) promoting the establishment of lending 
                programs of financial institutions for qualified small 
                and medium African enterprises by establishing 
                effective credit risk management systems to improve the 
                quality of the assets of such financial institutions 
                and the ability of such financial institutions to 
                research and assess overall credit risk, and
                    ``(F) promoting the development of qualified small 
                and medium African enterprises that are located in 
                rural and peri-urban areas by carrying out capacity-
                building activities for microenterprise business 
                associations and microfinance networks.
            ``(4) U.s.-africa private sector advisory council and 
        african development bank.--Expenditures related to carrying out 
        sections 7 and 8 of the African Entrepreneurship Act of 2006.
            ``(5) United states trade representative.--Expenditures 
        related to activities by the United States Trade Representative 
        to convene trade capacity building programs in qualified sub-
        Saharan African countries to provide technical assistance aimed 
        to increase international trade under the African Growth and 
        Opportunity Act.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified sub-saharan african country.--The term 
        `qualified sub-Saharan African country' means a beneficiary 
        sub-Saharan African country described in section 506A(c) of the 
        Trade Act of 1974.
            ``(2) Qualified small and medium african enterprise.--The 
        term `qualified small and medium African enterprise' means a 
        business in a qualified sub-Saharan African country that meets 
        the standards developed for such country by the Administrator 
        of the Small Business Administration, in cooperation with the 
        Administrator of the United States Agency for International 
        Development, pursuant to section 22(g)(4) of the Small Business 
        Act.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by inserting at the end the 
following new item:

``Sec. 9511. African Economic Diversification Fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 6. 21ST CENTURY AFRICAN ENTREPRENEURS PROGRAM.

    Section 22 of the Small Business Act (15 U.S.C. 649) is amended by 
adding at the end the following new subsection:
    ``(g) African Entrepreneurs Program.--
            ``(1) Establishment.--The Administrator shall establish in 
        the Office of International Trade a program to be known as the 
        `21st Century African Entrepreneurs Program' to provide 
        assistance to qualified small and medium African enterprises.
            ``(2) African entrepreneurs program centers.--
                    ``(A) Establishment of centers.--As part of the 
                program established under paragraph (1), the 
                Administrator shall establish not less than three 
                African Entrepreneurs Program Centers during each of 
                fiscal years 2007 through 2012. The Administrator shall 
                establish the Centers in central and accessible places 
                in qualified sub-Saharan African countries.
                    ``(B) Functions.--The function of each African 
                Entrepreneurs Program Center established under 
                subparagraph (A) is to provide information and guidance 
                to qualified small and medium African enterprises, 
                including--
                            ``(i) providing quality training, 
                        counseling, and access to financial resources 
                        to enable qualified small and medium African 
                        enterprises to present well-developed business 
                        plans to banks in qualified sub-Saharan African 
                        countries for the purpose of accessing capital;
                            ``(ii) providing counseling, training, and 
                        technical assistance in all aspects of small 
                        business management, including marketing and 
                        production, to qualified small and medium 
                        African enterprises;
                            ``(iii) providing management assistance to 
                        current and prospective owners of qualified 
                        small and medium African enterprises;
                            ``(iv) partnering with banks in qualified 
                        sub-Saharan African countries, the United 
                        States Agency for International Development 
                        (specifically the Development Credit Account), 
                        the Department of the Treasury, and 
                        international financial institutions, such as 
                        the World Bank and the African Development 
                        Bank, to provide loan guarantees to financial 
                        institutions in qualified sub-Saharan African 
                        countries that make loans to qualified small 
                        and medium African enterprises;
                            ``(v) developing programs to help qualified 
                        small and medium African enterprises to 
                        understand export opportunities that may exist, 
                        an in particular, to understand trade 
                        preferences available to businesses located in 
                        qualified sub-Saharan African countries; and
                            ``(vi) reaching out particularly to current 
                        and prospective women entrepreneurs to provide 
                        assistance relating to launching or growing a 
                        small business, and implementing the model of 
                        the women's business centers under section 29, 
                        with regard to services and assistance 
                        provided.
                    ``(C) Personnel.--
                            ``(i) Director; staff.--Each African 
                        Entrepreneurs Program Center established under 
                        subparagraph (A) shall have a director and 
                        staff.
                            ``(ii) Volunteers; part-time staff.--The 
                        director of an African Entrepreneurs Program 
                        Center may hire volunteers or part-time staff, 
                        as the director finds appropriate.
                            ``(iii) Consultants.--The director of an 
                        African Entrepreneurs Program Center may hire a 
                        consultant or engineer or pay for the use of a 
                        testing laboratory, if the consultant, 
                        engineer, or laboratory is necessary to provide 
                        assistance to a qualified small and medium 
                        African enterprises that is in need of 
                        specialized expertise and that requests 
                        assistance from the Center.
                    ``(D) Advisory committee.--For each country in 
                which the Administrator establishes an African 
                Entrepreneurs Program Center, the Administrator shall 
                establish an advisory committee made up of members from 
                the private sector for the purpose of obtaining input 
                and advice from the members on how the Center may best 
                serve the needs of qualified small and medium African 
                enterprises in that country.
                    ``(E) Self-sufficiency.--
                            ``(i) Initial funding.--The Administrator 
                        should seek to obtain 30 percent of the funds 
                        required for each African Entrepreneurs Program 
                        Center through partnerships and in-kind 
                        support, including building space, instructor 
                        time, furniture donation, and co-funding from 
                        the public or private sector, in the country in 
                        which the Center is located.
                            ``(ii) Long-term funding.--Not later than 
                        the date that is five years after the date on 
                        which the Center is established, the 
                        Administrator should seek to obtain 100 percent 
                        of the funds required for each African 
                        Entrepreneurs Program Center through 
                        mechanisms, such as public and private 
                        partnerships and small or modest fees-for-
                        service.
            ``(3) African small business roundtables.--The 
        Administrator shall convene two roundtables each year in each 
        country in which an African Entrepreneurs Program Center is 
        established under paragraph (2) to promote cooperation between 
        banks and entrepreneurs in the United States and in qualified 
        sub-Saharan African countries and to identify problems in the 
        delivery of financial services to small businesses. Each 
        roundtable should include representatives from banks in the 
        United States with experience working with and benefitting from 
        existing United States financial programs that support small 
        businesses and farmers' cooperatives.
            ``(4) SME congress of sub-saharan africa.--The 
        Administrator shall seek to establish the SME Congress of Sub-
        Saharan Africa. The SME Congress of Sub-Saharan Africa shall be 
        modeled after the SME Congress of the Americas, a hemisphere 
        network of micro, small and medium enterprise service providers 
        created to enhance the ability of small business to effectively 
        participate in and benefit from international trade by seeking 
        to reduce the time and costs associated with starting and 
        growing a small or medium enterprise. The Administrator shall 
        seek to coordinate SME Congress of Sub-Saharan Africa meetings 
        with the annual meetings described in section 105(c)(2)(B) of 
        the African Growth and Opportunity Act (19 U.S.C. 3704).
            ``(5) Qualified small and medium african enterprise.--
                    ``(A) In general.--The Administrator, in 
                cooperation with the Administrator of the United States 
                Agency for International Development, shall develop 
                standards, specific to the qualified sub-Saharan 
                African country in which the business is located, for 
                determining whether such business is a qualified small 
                and medium African enterprise.
                    ``(B) Qualified sub-saharan african country.--For 
                purposes of this subsection, the term `qualified sub-
                Saharan African country' means a beneficiary sub-
                Saharan African country described in section 506A(c) of 
                the Trade Act of 1974 (19 U.S.C. 2466a).''.

SEC. 7. U.S.-AFRICA PRIVATE SECTOR ADVISORY COUNCIL.

    (a) Establishment.--The Administrator of the Small Business 
Administration shall establish an advisory council to be known as the 
``U.S.-Africa Private Sector Advisory Council'' (hereinafter referred 
to as the Council).
    (b) Duties.--The Council shall--
            (1) advise the Congress and Federal agencies on--
                    (A) the use of expenditures made from amounts 
                available in the African Economic Diversification Fund, 
                established under section 9511 of the Internal Revenue 
                Code of 1986; and
                    (B) the implementation of policies and programs 
                described in subsection (c) of such section;
            (2) assist the private sector in the United States and 
        qualified sub-Saharan African countries in carrying out the 
        opportunities identified by--
                    (A) conferences and 2-way trade missions organized 
                by the Secretary of Commerce to discover and encourage 
                opportunities for private sector cooperation between 
                the United States and qualified sub-Saharan African 
                countries, and
                    (B) trade and investment missions to qualified sub-
                Saharan African countries arranged by the Secretary of 
                Agriculture to generate joint venture investment and 
                joint venture marketing agreements between farmers in 
                the United States and in qualified sub-Saharan African 
                countries;
            (3) assist in the coordination of annual meetings hosted by 
        United States representatives of the private sector with 
        representatives of the private sector from sub-Saharan Africa, 
        as described in section 105(c)(2)(B) of the African Growth and 
        Opportunity Act (19 U.S.C. 3704); and
            (4) advise the President on providing assistance to 
        qualified small and medium African enterprises in accordance 
        with section 496A of the Foreign Assistance Act of 1961 (as 
        amended by section 10).
    (c) Appointment.--
            (1) Members.--The Council shall be composed of 20 members, 
        as follows:
                    (A) 1 member, appointed jointly by the chair and 
                ranking minority member of the Committee on Ways and 
                Means of the House of Representatives and the chair and 
                ranking minority member of the Committee on Finance of 
                the Senate, from the private-sector business community 
                in qualified sub-Saharan African countries,
                    (B) 1 member, appointed jointly by the chair and 
                ranking minority member of the Committee on Ways and 
                Means of the House of Representatives and the chair and 
                ranking minority member of the Committee on Finance of 
                the Senate, from the private-sector business community 
                in the United States,
                    (C) 1 member, appointed by the President, from the 
                private-sector business community in qualified sub-
                Saharan African countries,
                    (D) 1 member, appointed by the President, from the 
                private-sector business community in the United States,
                    (E) 8 members, appointed jointly by the Council 
                members identified in subparagraphs (A) through (D), 
                from the private-sector business community in qualified 
                sub-Saharan African countries, and
                    (F) 8 members, appointed jointly by the Council 
                members identified in subparagraphs (A) through (D), 
                from the private-sector business community in the 
                United States.
            (2) Consultation required.--The Council members identified 
        in subparagraphs (A) through (D) of paragraph (1) shall consult 
        among themselves prior to the appointment of additional members 
        of the Council in order to achieve, to the maximum extent 
        possible, fair and equitable representation of various points 
        of view with respect to the matters to be studied by the 
        Council under subsection (b).
            (3) Terms of appointment.--The members of the Council shall 
        be appointed not more than 90 days after the date of the 
        enactment of this Act. The members of the Council shall serve 
        for the life of the Council.
            (4) Co-chairs.--The member of the Council identified in 
        subparagraphs (A) through (D) of paragraph (1) shall serve as 
        Co-chairs of the Council.
    (d) Meetings.--
            (1) Initial meeting.--Not later than 180 days after the 
        date of the enactment of this Act, the Council shall conduct 
        its first meeting.
            (2) Open meetings.--Each meeting of the Council shall be 
        open to the public.
    (e) Vacancies.--A vacancy on the Council--
            (1) shall be filled in the same manner as the original 
        appointment not later than 30 days after the Council is given 
        notice of the vacancy, and
            (2) shall not affect the power of the remaining members to 
        execute the duties of the Council.
    (f) Travel Expenses.--Members of the Council shall receive travel 
expenses, including per diem in lieu of subsistence, in accordance with 
sections 5702 and 5703 of title 5, United States Code.
    (g) Director; Staff.--
            (1) Director.--The Co-chairs shall appoint a Director.
            (2) Staff.--The Director, with the approval of the Council, 
        may appoint and fix the pay of additional personnel.
    (h) Management.--The Council shall be managed by the Council 
members, the director, and staff in a manner consistent with the 
purposes of this section.
    (i) Other Authority.--The Council may lease space and acquire 
personal property to the extent that funds are available.
    (j) Self-Sufficiency.--Not later than the date that is 5 years 
after the date on which the Council is established, the Council should 
seek to obtain 100 percent of the funds required to carry out this 
section through partnerships, cash contributions, membership fees, and 
in-kind support.
    (k) Reports.--Not later than 1 year after the date of the first 
meeting of the Council, and annually thereafter, the Council shall make 
public and transmit to the Congress and the Small Business 
Administration a report--
            (1) detailing the actions the Council has taken during the 
        previous year in fulfillment of the duties described in 
        subsection (b),
            (2) making recommendations related to policies that would 
        further encourage the development of the private sector in 
        qualified sub-Saharan African countries, particularly with 
        regard to qualified small and medium African enterprises, and
            (3) including a budget proposal for the next fiscal year.

SEC. 8. COORDINATION WITH AFRICAN DEVELOPMENT BANK.

    (a) African Entrepreneurs Program.--The Administrator of the Small 
Business Administration should provide the Secretary of the Treasury 
with information pertaining to how African Development Bank programs 
can be used to improve the 21st Century African Entrepreneurs Program, 
established pursuant to section 22(g) of the Small Business Act (15 
U.S.C. 649(g)). The Secretary of the Treasury should instruct the 
United States Executive Director at the African Development Bank to 
urge the African Development Bank to use programs of the African 
Development Bank in this manner.
    (b) Value-Added Agriculture Loan Facility.--The Secretary of 
Agriculture should provide the Secretary of the Treasury with 
information pertaining to how the establishment of a value-added 
agricultural loan facility can be used to support the development of 
qualified small and medium African enterprises devoted to the 
processing of agricultural commodities. The Secretary of the Treasury 
should instruct the United States Executive Director at the African 
Development Bank to urge the African Development Bank to use loan 
programs of the African Development Bank to foster the establishment of 
such a facility.
    (c) Feasibility Studies.--
            (1) The Secretary of Agriculture, through the Foreign 
        Agricultural Service, should provide technical assistance to 
        farmers in qualified sub-Saharan African countries in the 
        development of pre-feasibility studies to identify potentially 
        profitable projects for submission to the African Development 
        Bank.
            (2) The United States Trade Development Agency should 
        provide assistance in the preparation of final feasibility 
        studies for projects to be submitted to African Development 
        Bank under the United States Department of Agriculture-African 
        Development Bank loan facility program.
    (d) Technical Assistance for Agricultural Facilities.--The 
Secretary of Agriculture, through the Foreign Agricultural Service, 
should provide technical assistance to farmers in qualified sub-Saharan 
African countries who are funded by the African Development Bank loan 
facility.

SEC. 9. ACTIVITIES TO STRENGTHEN FUNDAMENTAL LABOR RIGHTS.

    (a) In General.--The Secretary of State should undertake activities 
to strengthen internationally recognized labor rights and standards in 
qualified sub-Saharan African countries by--
            (1) ensuring that governments and businesses in qualified 
        sub-Saharan African countries are aware of their obligations 
        (through membership in the International Labor Organization 
        (ILO) as well as under United States trade preference programs 
        such as the generalized system of preferences and the African 
        Growth and Opportunity Act) to respect, promote, and realize 
        the international labor standards established by the ILO,
            (2) monitoring the enforcement of labor laws in qualified 
        sub-Saharan African countries, including labor laws relating to 
        workers' rights to free association, prohibitions on child 
        labor, forced labor, and discrimination, safety in the work 
        environment, workplace standards laws regulating minimum wage 
        and hours of work, and collective bargaining, through ensuring, 
        among other things, that reporting on labor rights at United 
        States missions is a priority, and
            (3) providing technical assistance to enhance enforcement 
        of labor laws in qualified sub-Saharan African countries and 
        for institutional capacity building of trade unions to increase 
        their capabilities to represent workers at workplaces and with 
        their governments.
    (b) Definitions.--For purposes of section 7, 8, and 9 of this Act:
            (1) Qualified sub-saharan african country.--The term 
        ``qualified sub-Saharan African country'' means a beneficiary 
        sub-Saharan African country described in section 506A(c) of the 
        Trade Act of 1974 (19 U.S.C. 2466a).
            (2) Qualified small and medium african enterprise.--The 
        term ``qualified small and medium African enterprise'' means a 
        business in a qualified sub-Saharan African country that meet 
        the standards developed for such country by the Administrator 
        of the Small Business Administration, in cooperation with the 
        Administrator of the United States Agency for International 
        Development, pursuant to section 22(g)(4) of the Small Business 
        Act (15 U.S.C. 649).

SEC. 10. ASSISTANCE FOR QUALIFIED SMALL AND MEDIUM AFRICAN ENTERPRISES.

    (a) In General.--Chapter 10 of part I of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2293 et seq.) is amended by inserting after section 
496 the following new section:

``SEC. 496A. ASSISTANCE FOR QUALIFIED SMALL AND MEDIUM AFRICAN 
              ENTERPRISES.

    ``(a) Authorization.--The President, acting through the 
Administrator of the United States Agency for International 
Development, is authorized to provide assistance, on such terms and 
conditions as the President may determine, for qualified small and 
medium African enterprises.
    ``(b) Activities Supported.--Assistance provided under subsection 
(a) shall, to the maximum extent practicable, be used to carry out the 
following activities:
            ``(1) Youth entrepreneurship programs.--Activities to 
        establish youth entrepreneurship training programs in schools 
        or through community partnerships with business and youth 
        organizations in qualified sub-Saharan African countries to 
        promote economic skills, ethics, integrity, and healthy life 
        skills among youth in such countries. Such activities may 
        include providing assistance through United States and 
        international youth organizations located in qualified sub-
        Saharan African countries and ministries of education, local 
        schools, businesses, and youth groups to--
                    ``(A) teach basic concepts of business economics 
                and free enterprise and the relevance of education for 
                such youth to improving the quality of their lives;
                    ``(B) teach basic concepts of good governance, the 
                rule of law, human rights, and citizenship as they 
                relate to national development;
                    ``(C) assist youth to make decisions about their 
                educational and professional future and develop 
                communication skills that are vital to succeed in the 
                domestic, regional, and international business world;
                    ``(D) develop a specialized curriculum for youth in 
                rural and peri-urban areas and utilize, whenever 
                possible, business and community volunteers to deliver 
                such curriculum; and
                    ``(E) organize student-led enterprises.
            ``(2) Anti-corruption initiatives.--Activities that combat 
        corruption, improve transparency and accountability, and 
        promote other forms of good governance and management in 
        qualified sub-Saharan African countries. Such activities may 
        include--
                    ``(A) providing technical assistance to governments 
                of qualified sub-Saharan African countries that are 
                implementing the United Nations Convention against 
                Corruption, including assistance to combat anti-
                competitive, unethical, and corrupt activities, 
                including protection against actions that may distort 
                or inhibit transparency in market mechanisms and impair 
                the development of qualified small and medium African 
                enterprises;
                    ``(B) providing assistance to develop a legal 
                framework for commercial transactions that fosters 
                business practices that promote transparent, ethical, 
                and competitive behavior in the economic sector, such 
                as commercial codes that incorporate international 
                standards and protection of national and international 
                intellectual property rights and core labor standards; 
                and
                    ``(C) providing training and technical assistance 
                relating to drafting of anti-corruption, privatization, 
                and competitive statutory and administrative codes, and 
                providing technical assistance to ministries and 
                agencies implementing anti-corruption laws and 
                regulations.
    ``(c) Definitions.--In this section:
            ``(1) Qualified sub-saharan african country.--The term 
        `qualified sub-Saharan African country' means a beneficiary 
        sub-Saharan African country described in section 506A(c) of the 
        Trade Act of 1974 (19 U.S.C. 2466a).
            ``(2) Qualified small and medium african enterprise.--The 
        term `qualified small and medium African enterprise' means a 
        business in a qualified sub-Saharan African country that meet 
        the standards developed for such country by the Administrator 
        of the Small Business Administration, in cooperation with the 
        Administrator of the United States Agency for International 
        Development, pursuant to section 22(g)(4) of the Small Business 
        Act (15 U.S.C. 649).''.
    (b) Conforming Amendment.--Section 497 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2294) is amended in the second sentence by 
adding at the end before the period the following: ``or section 496A''.
    (c) Authorization of Appropriations.--For purposes of carrying out 
this section, there are authorized to be appropriated $5,000,000 for 
each of fiscal years 2007 and 2008.

SEC. 11. REPORT.

    Not later than 6 months after the date of the enactment of this 
Act, the President shall transmit to Congress a report including 
legislative recommendations for the creation of American jobs, 
particularly in economically disadvantaged areas, by utilizing 
opportunities that arise from an increase in United States imports.
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