Public health and education statistics are grim, and population growth remains high. Many economies are overly dependent on primary commodities,which have been battered by the recent collapse in commodity prices. There islittle manufacturing outside of South Africa. What manufacturing there is tends to be in low-technology sectors such as food processing, clothing and furniture. Rates of domestic savings and foreign investment are low, with the region accounting for less than 1 percent of U.S. foreign direct investment.
Markets remain largely closed.
U.S. exports to Africa represent barely 1 percent of total American exports, with half going to South Africa. More open markets, greater transparency, laws protecting worker and investor rights, and good accounting and statistical procedures are essential. Ultimately, one of the best ways to foster growth is to nourish private-sector activity. Unfortunately, in my 38 years as an investment banker, no one ever made the case to me that there were great investment opportunities in Africa. We must engage the private sector, and our best leverage is through trade and investment.