105TH CONGRESS
2D SESSION
H. R. 1432
AN ACT
To authorize a new trade and investment policy for
sub-Saharan Africa.
105TH CONGRESS
2D SESSION
H. R. 1432
AN ACT
To authorize a new trade and investment policy for sub-
Saharan Africa.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘African Growth and
Opportunity Act’’.
SEC. 2. FINDINGS.
The Congress finds that it is in the mutual economic
interest of the United States and sub-Saharan Africa to
promote stable and sustainable economic growth and de-
velopment in sub-Saharan Africa. To that end, the United
States seeks to facilitate market-led economic growth in,
and thereby the social and economic development of, the
countries of sub-Saharan Africa. In particular, the United
States seeks to assist sub-Saharan African countries, and
the private sector in those countries, to achieve economic
self-reliance by—
(1) strengthening and expanding the private
sector in sub-Saharan Africa, especially women-
owned businesses;
(2) encouraging increased trade and investment
between the United States and sub-Saharan Africa;
(3) reducing tariff and nontariff barriers and
other trade obstacles;
(4) expanding United States assistance to sub-
Saharan Africa’s regional integration efforts;
(5) negotiating free trade areas;
(6) establishing a United States-Sub-Saharan
Africa Trade and Investment Partnership;
(7) focusing on countries committed to account-
able government, economic reform, and the eradi-
cation of poverty;
(8) establishing a United States-Sub-Saharan
Africa Economic Cooperation Forum; and
(9) continuing to support development assist-
ance for those countries in sub-Saharan Africa at-
tempting to build civil societies.
SEC. 3. STATEMENT OF POLICY.
The Congress supports economic self-reliance for sub-
Saharan African countries, particularly those committed
to—
(1) economic and political reform;
(2) market incentives and private sector growth;
(3) the eradication of poverty; and
(4) the importance of women to economic
growth and development.
SEC. 4. ELIGIBILITY REQUIREMENTS.
(a) IN GENERAL.—A sub-Saharan African country
shall be eligible to participate in programs, projects, or
activities, or receive assistance or other benefits under this
Act if the President determines that the country does not
engage in gross violations of internationally recognized
human rights and has established, or is making continual
progress toward establishing, a market-based economy,
such as the establishment and enforcement of appropriate
policies relating to—
(1) promoting free movement of goods and serv-
ices between the United States and sub-Saharan Af-
rica and among countries in sub-Saharan Africa;
(2) promoting the expansion of the production
base and the transformation of commodities and
nontraditional products for exports through joint
venture projects between African and foreign inves-
tors;
(3) trade issues, such as protection of intellec-
tual property rights, improvements in standards,
testing, labeling and certification, and government
procurement;
(4) the protection of property rights, such as
protection against expropriation and a functioning
and fair judicial system;
(5) appropriate fiscal systems, such as reducing
high import and corporate taxes, controlling govern-
ment consumption, participation in bilateral invest-
ment treaties, and the harmonization of such trea-
ties to avoid double taxation;
(6) foreign investment issues, such as the provi-
sion of national treatment for foreign investors and
other measures to create an environment conducive
to domestic and foreign investment;
(7) supporting the growth of regional markets
within a free trade area framework;
(8) governance issues, such as eliminating gov-
ernment corruption, minimizing government inter-
vention in the market such as price controls and
subsidies, and streamlining the business license proc-
ess;
(9) supporting the growth of the private sector,
in particular by promoting the emergence of a new
generation of African entrepreneurs;
(10) encouraging the private ownership of gov-
ernment-controlled economic enterprises through di-
vestiture programs;
(11) removing restrictions on investment; and
(12) observing the rule of law, including equal
protection under the law and the right to due proc-
ess and a fair trial.
(b) ADDITIONAL FACTORS.—In determining whether
a sub-Saharan African country is eligible under subsection
(a), the President shall take into account the following fac-
tors:
(1) An expression by such country of its desire
to be an eligible country under subsection (a).
(6) Whether or not such country is cooperating
with the United States in efforts to eliminate slavery
in Africa.
(7) Whether or not such country engages in ac-
tivities that undermine United States national secu-
rity or foreign policy interests.
(c) CONTINUING COMPLIANCE.—
(1) MONITORING
AND
REVIEW
OF
CERTAIN
COUNTRIES.—The President shall monitor and re-
view the progress of sub-Saharan African countries
in order to determine their current or potential eligi-
bility under subsection (a). Such determinations
shall be based on quantitative factors to the fullest
extent possible and shall be included in the annual
report required by section 15.
(2) INELIGIBILITY OF CERTAIN COUNTRIES.—A
sub-Saharan African country described in paragraph
(1) that has not made continual progress in meeting
the requirements with which it is not in compliance
shall be ineligible to participate in programs,
projects, or activities, or receive assistance or other
benefits, under this Act.
(d) VIOLATIONS OF HUMAN RIGHTS AND INELIGIBLE
COUNTRIES.—It is the sense of the Congress that a sub-
Saharan African country should not be eligible to partici-
pate in programs, projects, or activities, or receive assist-
ance or other benefits under this Act if the government
of that country is determined by the President to engage
in a consistent pattern of gross violations of internation-
ally recognized human rights.
SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXI-
BILITY TO PROVIDE ASSISTANCE UNDER THE
DEVELOPMENT FUND FOR AFRICA.
(a) USE OF SUSTAINABLE DEVELOPMENT ASSIST-
ANCE TO SUPPORT FURTHER ECONOMIC GROWTH.—It is
the sense of the Congress that sustained economic growth
in sub-Saharan Africa depends in large measure upon the
development of a receptive environment for trade and in-
vestment, and that to achieve this objective the United
States Agency for International Development should con-
tinue to support programs which help to create this envi-
ronment. Investments in human resources, development,
and implementation of free market policies, including poli-
cies to liberalize agricultural markets and improve food se-
curity, and the support for the rule of law and democratic
governance should continue to be encouraged and en-
hanced on a bilateral and regional basis.
(b) DECLARATIONS
OF
POLICY.—The Congress
makes the following declarations:
(1) The Development Fund for Africa estab-
lished under chapter 10 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2293 et seq.) has
been an effective tool in providing development as-
sistance to sub-Saharan Africa since 1988.
(2) The Development Fund for Africa will com-
plement the other provisions of this Act and lay a
foundation for increased trade and investment op-
portunities between the United States and sub-Saha-
ran Africa.
(3) Assistance provided through the Develop-
ment Fund for Africa will continue to support pro-
grams and activities that promote the long term eco-
nomic development of sub-Saharan Africa, such as
programs and activities relating to the following:
(A) Strengthening primary and vocational
education systems, especially the acquisition of
middle-level technical skills for operating mod-
ern private businesses and the introduction of
college level business education, including the
study of international business, finance, and
stock exchanges.
(B) Strengthening health care systems.
(C) Strengthening family planning service
delivery systems.
(D) Supporting democratization, good gov-
ernance and civil society and conflict resolution
efforts.
(E) Increasing food security by promoting
the expansion of agricultural and agriculture-
based industrial production and productivity
and increasing real incomes for poor individ-
uals.
(F) Promoting an enabling environment
for private sector-led growth through sustained
economic reform, privatization programs, and
market-led economic activities.
(G) Promoting decentralization and local
participation in the development process, espe-
cially linking the rural production sectors and
the industrial and market centers throughout
Africa.
(H) Increasing the technical and manage-
rial capacity of sub-Saharan African individuals
to manage the economy of sub-Saharan Africa.
(I) Ensuring sustainable economic growth
through environmental protection.
(4) The African Development Foundation has a
unique congressional mandate to empower the poor
to participate fully in development and to increase
opportunities for gainful employment, poverty allevi-
ation, and more equitable income distribution in sub-
Saharan Africa. The African Development Founda-
tion has worked successfully to enhance the role of
women as agents of change, strengthen the informal
sector with an emphasis on supporting micro and
small sized enterprises, indigenous technologies, and
mobilizing local financing. The African Development
Foundation should develop and implement strategies
for promoting participation in the socioeconomic de-
velopment process of grassroots and informal sector
groups such as nongovernmental organizations, co-
operatives, artisans, and traders into the programs
and initiatives established under this Act.
(c) ADDITIONAL AUTHORITIES.—
(1) IN GENERAL.—Section 496(h) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2293(h)) is
amended—
(A) by redesignating paragraph (3) as
paragraph (4); and
(B) by inserting after paragraph (2) the
following:
‘‘(3) DEMOCRATIZATION AND CONFLICT RESO-
LUTION CAPABILITIES.—Assistance under this sec-
tion may also include program assistance—
‘‘(A) to promote democratization, good
governance, and strong civil societies in sub-Sa-
haran Africa; and
‘‘(B) to strengthen conflict resolution capa-
bilities of governmental, intergovernmental, and
nongovernmental 
entities 
in 
sub-Saharan
Africa.’’.
(2) 
CONFORMING
AMENDMENT.—Section
496(h)(4) of such Act, as amended by paragraph
(1), is further amended by striking ‘‘paragraphs (1)
and (2)’’ in the first sentence and inserting ‘‘para-
graphs (1), (2), and (3)’’.
SEC. 6. UNITED STATES–SUB-SAHARAN AFRICA TRADE AND
ECONOMIC COOPERATION FORUM.
(a) DECLARATION OF POLICY.—The President shall
convene annual high-level meetings between appropriate
officials of the United States Government and officials of
the governments of sub-Saharan African countries in
order to foster close economic ties between the United
States and sub-Saharan Africa.
(b) ESTABLISHMENT.—Not later than 12 months
after the date of the enactment of this Act, the President,
after consulting with the governments concerned, shall es-
tablish a United States–Sub-Saharan Africa Trade and
Economic Cooperation Forum (hereafter in this section re-
ferred to as the ‘‘Forum’’).
(c) REQUIREMENTS.—In creating the Forum, the
President shall meet the following requirements:
(1) The President shall direct the Secretary of
Commerce, the Secretary of the Treasury, the Sec-
retary of State, and the United States Trade Rep-
resentative to host the first annual meeting with the
counterparts of such Secretaries from the govern-
ments of sub-Saharan African countries eligible
under section 4, the Secretary General of the Orga-
nization of African Unity, and government officials
from other appropriate countries in Africa, to dis-
cuss expanding trade and investment relations be-
tween the United States and sub-Saharan Africa
and the implementation of this Act including encour-
aging joint ventures between small and large busi-
nesses.
(2)(A) The President, in consultation with the
Congress, shall encourage United States nongovern-
mental organizations to host annual meetings with
nongovernmental organizations from sub-Saharan
Africa in conjunction with the annual meetings of
the Forum for the purpose of discussing the issues
described in paragraph (1).
(B) The President, in consultation with the
Congress, shall encourage United States representa-
tives of the private sector to host annual meetings
with representatives of the private sector from sub-
Saharan Africa in conjunction with the annual meet-
ings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(3) The President shall, to the extent prac-
ticable, meet with the heads of governments of sub-
Saharan African countries eligible under section 4
not less than once every two years for the purpose
of discussing the issues described in paragraph (1).
The first such meeting should take place not later
than twelve months after the date of the enactment
of this Act.
(d) DISSEMINATION OF INFORMATION BY USIA.—In
order to assist in carrying out the purposes of the Forum,
the United States Information Agency shall disseminate
regularly, through multiple media, economic information
in support of the free market economic reforms described
in this Act.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out this section.
(f) LIMITATION ON USE OF FUNDS.—None of the
funds authorized under this section may be used to create
or support any nongovernmental organization for the pur-
pose of expanding or facilitating trade between the United
States and sub-Saharan Africa.
SEC. 
7. 
UNITED 
STATES–SUB-SAHARAN 
AFRICA 
FREE
TRADE AREA.
(a) DECLARATION OF POLICY.—The Congress de-
clares that a United States–Sub-Saharan Africa Free
Trade Area should be established, or free trade agree-
ments should be entered into, in order to serve as the cata-
lyst for increasing trade between the United States and
sub-Saharan Africa and increasing private sector develop-
ment in sub-Saharan Africa.
(b) PLAN REQUIREMENT.—
(1) IN GENERAL.—The President, taking into
account the provisions of the treaty establishing the
African Economic Community and the willingness of
the governments of sub-Saharan African countries to
engage in negotiations to enter into free trade agree-
ments, shall develop a plan for the purpose of enter-
ing into one or more trade agreements with sub-Sa-
haran African countries eligible under section 4 in
order to establish a United States–Sub-Saharan Af-
rica Free Trade Area (hereafter in this section re-
ferred to as the ‘‘Free Trade Area’’).
(2) ELEMENTS OF PLAN.—The plan shall in-
clude the following:
(A) The specific objectives of the United
States with respect to the establishment of the
Free Trade Area and a suggested timetable for
achieving those objectives.
(B) The benefits to both the United States
and sub-Saharan Africa with respect to the
Free Trade Area.
(C) A mutually agreed-upon timetable for
establishing the Free Trade Area.
(D) The implications for and the role of
regional and sub-regional organizations in sub-
Saharan Africa with respect to the Free Trade
Area.
(E) Subject matter anticipated to be cov-
ered by the agreement for establishing the Free
Trade Area and United States laws, programs,
and policies, as well as the laws of participating
eligible African countries and existing bilateral
and multilateral and economic cooperation and
trade agreements, that may be affected by the
agreement or agreements.
(F) Procedures to ensure the following:
(i) Adequate consultation with the
Congress and the private sector during the
negotiation of the agreement or agree-
ments for establishing the Free Trade
Area.
(ii) Consultation with the Congress re-
garding all matters relating to implementa-
tion of the agreement or agreements.
(iii) Approval by the Congress of the
agreement or agreements.
(iv) Adequate consultations with the
relevant African governments and African
regional and subregional intergovernmental
organizations during the negotiations of
the agreement or agreements.
(c) REPORTING REQUIREMENT.—Not later than 12
months after the date of the enactment of this Act, the
President shall prepare and transmit to the Congress a
report containing the plan developed pursuant to sub-
section (b).
SEC. 8. ELIMINATING TRADE BARRIERS AND ENCOURAG-
ING EXPORTS.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The lack of competitiveness of sub-Saharan
Africa in the global market, especially in the manu-
facturing sector, make it a limited threat to market
disruption and no threat to United States jobs.
(2) Annual textile and apparel exports to the
United States from sub-Saharan Africa represent
less than 1 percent of all textile and apparel exports
to the United States, which totaled $45,932,000,000
in 1996.
(3) Sub-Saharan Africa has limited textile man-
ufacturing capacity. During 1998 and the succeed-
ing 4 years, this limited capacity to manufacture
textiles and apparel is projected to grow at a modest
rate. Given this limited capacity to export textiles
and apparel, it will be very difficult for these exports
from sub-Saharan Africa, during 1998 and the suc-
ceeding 9 years, to exceed 3 percent annually of
total imports of textile and apparel to the United
States. If these exports from sub-Saharan Africa re-
main around 3 percent of total imports, they will not
represent a threat to United States workers, con-
sumers, or manufacturers.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that—
(1) it would be to the mutual benefit of the
countries in sub-Saharan Africa and the United
States to ensure that the commitments of the World
Trade Organization and associated agreements are
faithfully implemented in each of the member coun-
tries, so as to lay the groundwork for sustained
growth in textile and apparel exports and trade
under agreed rules and disciplines;
(2) reform of trade policies in sub-Saharan Af-
rica with the objective of removing structural im-
pediments to trade, consistent with obligations under
the World Trade Organization, can assist the coun-
tries of the region in achieving greater and greater
diversification of textile and apparel export commod-
ities and products and export markets; and
(3) the President should support textile and ap-
parel trade reform in sub-Saharan Africa by, among
other measures, providing technical assistance, shar-
ing of information to expand basic knowledge of how
to trade with the United States, and encouraging
business-to-business contacts with the region.
(c) TREATMENT OF QUOTAS.—
(1) KENYA AND MAURITIUS.—Pursuant to the
Agreement on Textiles and Clothing, the United
States shall eliminate the existing quotas on textile
and apparel exports to the United States—
(A) from Kenya within 30 days after that
country adopts an efficient visa system to guard
against unlawful transshipment of textile and
apparel goods and the use of counterfeit docu-
ments; and
(B) from Mauritius within 30 days after
that country adopts such a visa system.
The Customs Service shall provide the necessary
technical assistance to Kenya and Mauritius in the
development and implementation of those visa sys-
tems.
(2) OTHER
SUB-SAHARAN
COUNTRIES.—The
President shall continue the existing no quota policy
for countries in sub-Saharan Africa. The President
shall submit to the Congress, not later than March
31 of each year, a report on the growth in textiles
and apparel exports to the United States from coun-
tries in sub-Saharan Africa in order to protect
United States consumers, workers, and textile manu-
facturers from economic injury on account of the no
quota policy.
(d) CUSTOMS PROCEDURES AND ENFORCEMENT.—
(1) ACTIONS BY COUNTRIES AGAINST TRANS-
SHIPMENT
AND
CIRCUMVENTION.—The President
should ensure that any country in sub-Saharan Afri-
ca that intends to export textile and apparel goods
to the United States—
(A) has in place a functioning and effective
visa system and domestic laws and enforcement
procedures to guard against unlawful trans-
shipment of textile and apparel goods and the
use of counterfeit documents; and
(B) will cooperate fully with the United
States to address and take action necessary to
prevent circumvention, as provided in Article 5
of the Agreement on Textiles and Clothing.
(2) PENALTIES AGAINST EXPORTERS.—If the
President determines, based on sufficient evidence,
that an exporter has willfully falsified information
regarding the country of origin, manufacture, proc-
essing, or assembly of a textile or apparel article for
which 
duty-free 
treatment 
under 
section
503(a)(1)(C) of the Trade Act of 1974 is claimed,
then the President shall deny to such exporter, and
any successors of such exporter, for a period of 2
years, duty-free treatment under such section for
textile and apparel articles.
(3) APPLICABILITY OF UNITED STATES LAWS
AND PROCEDURES.—All provisions of the laws, regu-
lations, and procedures of the United States relating
to the denial of entry of articles or penalties against
individuals or entities for engaging in illegal trans-
shipment, fraud, or other violations of the customs
laws shall apply to imports from Sub-Saharan coun-
tries.
(4) MONITORING
AND
REPORTS
TO
CON-
GRESS.—The Customs Service shall monitor and the
Commissioner of Customs shall submit to the Con-
gress, not later than March 31 of each year, a report
on the effectiveness of the visa systems described in
subsection (c)(1) and paragraph (1) of this sub-
section and on measures taken by countries in Sub-
Saharan Africa which export textiles or apparel to
the United States to prevent circumvention as de-
scribed in Article 5 of the Agreement on Textiles
and Clothing.
(e) DEFINITION.—For purposes of this section, the
term ‘‘Agreement on Textiles and Clothing’’ means the
Agreement on Textiles and Clothing referred to in section
101(d)(4) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(4)).
SEC. 9. GENERALIZED SYSTEM OF PREFERENCES.
(a) PREFERENTIAL TARIFF TREATMENT FOR CER-
TAIN ARTICLES.—Section 503(a)(1) of the Trade Act of
1974 (19 U.S.C. 2463(a)(1)) is amended—
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and
(2) by inserting after subparagraph (B) the fol-
lowing:
‘‘(C) ELIGIBLE COUNTRIES IN SUB-SAHA-
RAN AFRICA.—The President may provide duty-
free treatment for any article set forth in para-
graph (1) of subsection (b) that is the growth,
product, or manufacture of an eligible country
in sub-Saharan Africa that is a beneficiary de-
veloping country, if, after receiving the advice
of the International Trade Commission in ac-
cordance with subsection (e), the President de-
termines that such article is not import-sen-
sitive in the context of imports from eligible
countries in sub-Saharan Africa. This subpara-
graph shall not affect the designation of eligible
articles under subparagraph (B).’’.
(b) RULES OF ORIGIN.—Section 503(a)(2) of the
Trade Act of 1974 (19 U.S.C. 2463(a)(2)) is amended by
adding at the end the following:
‘‘(C) ELIGIBLE COUNTRIES IN SUB-SAHA-
RAN AFRICA.—For purposes of determining the
percentage referred to in subparagraph (A) in
the case of an article of an eligible country in
sub-Saharan Africa that is a beneficiary devel-
oping country—
‘‘(i) if the cost or value of materials
produced in the customs territory of the
United States is included with respect to
that article, an amount not to exceed 15
percent of the appraised value of the arti-
cle at the time it is entered that is attrib-
uted to such United States cost or value
may be applied toward determining the
percentage referred to in subparagraph
(A); and
‘‘(ii) the cost or value of the materials
included with respect to that article that
are produced in any beneficiary developing
country that is an eligible country in sub-
Saharan Africa shall be applied in deter-
mining such percentage.’’.
(c) WAIVER OF COMPETITIVE NEED LIMITATION.—
Section 503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C.
2463(c)(2)(D)) is amended to read as follows:
‘‘(D) 
LEAST-DEVELOPED
BENEFICIARY
DEVELOPING COUNTRIES AND ELIGIBLE COUN-
TRIES
IN
SUB-SAHARAN
AFRICA.—Subpara-
graph (A) shall not apply to any least-developed
beneficiary developing country or any eligible
country in sub-Saharan Africa.’’.
(d) EXTENSION OF PROGRAM.—Section 505 of the
Trade Act of 1974 (19 U.S.C. 2465) is amended to read
as follows:
‘‘SEC. 505. DATE OF TERMINATION.
‘‘(a) COUNTRIES
IN SUB-SAHARAN AFRICA.—No
duty-free treatment provided under this title shall remain
in effect after June 30, 2008, with respect to beneficiary
developing countries that are eligible countries in sub-Sa-
haran Africa.
‘‘(b) OTHER COUNTRIES.—No duty-free treatment
provided under this title shall remain in effect after June
30, 1998, with respect to beneficiary developing countries
other than those provided for in subsection (a).’’.
(e) DEFINITION.—Section 507 of the Trade Act of
1974 (19 U.S.C. 2467) is amended by adding at the end
the following:
‘‘(6) ELIGIBLE COUNTRY IN SUB-SAHARAN AF-
RICA.—The terms ‘eligible country in sub-Saharan
Africa’ and ‘eligible countries in sub-Saharan Africa’
mean a country or countries that the President has
determined to be eligible under section 4 of the Afri-
can Growth and Opportunity Act.’’.
(f) EFFECTIVE DATE.—The amendments made by
this section take effect on July 1, 1998.
SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND
DEBT REDUCTION.
(a) BETTER MECHANISMS TO FURTHER GOALS FOR
SUB-SAHARAN AFRICA.—It is the sense of the Congress
that the Secretary of the Treasury should instruct the
United States Executive Directors of the International
Bank for Reconstruction and Development, the Inter-
national Monetary Fund, and the African Development
Bank to use the voice and votes of the Executive Directors
to encourage vigorously their respective institutions to de-
velop enhanced mechanisms which further the following
goals in eligible countries in sub-Saharan Africa:
(1) Strengthening and expanding the private
sector, especially among women-owned businesses.
(2) Reducing tariffs, nontariff barriers, and
other trade obstacles, and increasing economic inte-
gration.
(3) Supporting countries committed to account-
able government, economic reform, the eradication of
poverty, and the building of civil societies.
(4) Supporting deep debt reduction at the earli-
est possible date with the greatest amount of relief
for eligible poorest countries under the ‘‘Heavily In-
debted Poor Countries’’ (HIPC) debt initiative.
(b) SENSE OF CONGRESS.—It is the sense of the
Congress that relief provided to countries in sub-Saharan
Africa which qualify for the Heavily Indebted Poor Coun-
tries debt initiative should primarily be made through
grants rather than through extended-term debt, and that
interim relief or interim financing should be provided for
eligible countries that establish a strong record of macro-
economic reform.
(c) EXECUTIVE BRANCH INITIATIVES.—The Con-
gress supports and encourages the implementation of the
following initiatives of the executive branch:
(1) AMERICAN-AFRICAN
BUSINESS
PARTNER-
SHIP.—The Agency for International Development
devoting up to $1,000,000 annually to help catalyze
relationships between United States firms and firms
in sub-Saharan Africa through a variety of business
associations and networks.
(2) TECHNICAL ASSISTANCE TO PROMOTE RE-
FORMS.—The Agency for International Development
providing up to $5,000,000 annually in short-term
technical assistance programs to help the govern-
ments of sub-Saharan African countries to—
(A) liberalize trade and promote exports;
(B) bring their legal regimes into compli-
ance with the standards of the World Trade Or-
ganization in conjunction with membership in
that Organization; and
(C) make financial and fiscal reforms, as
well as the United States Department of Agri-
culture providing support to promote greater
agribusiness linkages.
(3) 
AGRICULTURAL
MARKET
LIBERALIZA-
TION.—The Agency for International Development
devoting up to $15,000,000 annually as part of the
multi-year Africa Food Security Initiative to help
address such critical agricultural policy issues as
market liberalization, agricultural export develop-
ment, and agribusiness investment in processing and
transporting agricultural commodities.
(4) TRADE PROMOTION.—The Trade Develop-
ment Agency increasing the number of reverse trade
missions to growth-oriented countries in sub-Saha-
ran Africa.
(5) TRADE IN SERVICES.—Efforts by United
States embassies in the countries in sub-Saharan Af-
rica to encourage their host governments—
(A) to participate in the ongoing negotia-
tions on financial services in the World Trade
Organization;
(B) to revise their existing schedules to the
General Agreement on Trade in Services of the
World Trade Organization in light of the suc-
cessful conclusion of negotiations on basic tele-
communications services; and
(C) to make further commitments in their
schedules to the General Agreement on Trade
in Services in order to encourage the removal of
tariff and nontariff barriers and to foster com-
petition in the services sector in those countries.
SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUC-
TURE FUNDS.
(a) INITIATION OF FUNDS.—It is the sense of the
Congress that the Overseas Private Investment Corpora-
tion should, within 12 months after the date of the enact-
ment of this Act, exercise the authorities it has to initiate
2 or more equity funds in support of projects in the coun-
tries in sub-Saharan Africa.
(b) STRUCTURE AND TYPES OF FUNDS.—
(1) STRUCTURE.—Each fund initiated under
subsection (a) should be structured as a partnership
managed by professional private sector fund man-
agers and monitored on a continuing basis by the
Corporation.
(2) CAPITALIZATION.—Each fund should be
capitalized with a combination of private equity cap-
ital, which is not guaranteed by the Corporation,
and debt for which the Corporation provides guaran-
ties.
(3) TYPES OF FUNDS.—
(A) EQUITY FUND FOR SUB-SAHARAN AF-
RICA.—One of the funds should be an equity
fund, with assets of up to $150,000,000, the
primary purpose of which is to achieve long-
term capital appreciation through equity invest-
ments in support of projects in countries in
sub-Saharan Africa.
(B) INFRASTRUCTURE
FUND.—One or
more of the funds, with combined assets of up
to $500,000,000, should be used in support of
infrastructure projects in countries of sub-Saha-
ran Africa. The primary purpose of any such
fund would be to achieve long-term capital ap-
preciation through investing in financing for in-
frastructure projects in sub-Saharan Africa, in-
cluding for the expansion of businesses in sub-
Saharan Africa, restructurings, management
buyouts and buyins, businesses with local own-
ership, and privatizations.
(4) EMPHASIS.—The Corporation shall ensure
that the funds are used to provide support in par-
ticular to women entrepreneurs and to innovative in-
vestments that expand opportunities for women and
maximize employment opportunities for poor individ-
uals.
SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION
AND EXPORT-IMPORT BANK INITIATIVES.
(a) OVERSEAS
PRIVATE
INVESTMENT
CORPORA-
TION.—
(1) ADVISORY COMMITTEE.—Section 233 of the
Foreign Assistance Act of 1961 is amended by add-
ing at the end the following:
‘‘(e) ADVISORY COMMITTEE.—The Board shall take
prompt measures to increase the loan, guarantee, and in-
surance programs, and financial commitments, of the Cor-
poration in sub-Saharan Africa, including through the es-
tablishment and use of an advisory committee to assist
the Board in developing and implementing policies, pro-
grams, and financial instruments with respect to sub-Sa-
haran Africa. In addition, the advisory committee shall
make recommendations to the Board on how the Corpora-
tion can facilitate greater support by the United States
for trade and investment with and in sub-Saharan Africa.
The advisory committee shall terminate 4 years after the
date of the enactment of this subsection.’’.
(2) REPORTS
TO
THE
CONGRESS.—Within 6
months after the date of the enactment of this Act,
and annually for each of the 4 years thereafter, the
Board of Directors of the Overseas Private Invest-
ment Corporation shall submit to the Congress a re-
port on the steps that the Board has taken to imple-
ment section 233(e) of the Foreign Assistance Act
of 1961 (as added by paragraph (1)) and any rec-
ommendations of the advisory board established pur-
suant to such section.
(b) EXPORT-IMPORT BANK.—
(1) ADVISORY COMMITTEE FOR SUB-SAHARAN
AFRICA.—Section 2(b) of the Export-Import Bank
Act of 1945 (12 U.S.C. 635(b)) is amended by in-
serting after paragraph (12) the following:
‘‘(13)(A) The Board of Directors of the Bank shall
take prompt measures, consistent with the credit stand-
ards otherwise required by law, to promote the expansion
of the Bank’s financial commitments in sub-Saharan Afri-
ca under the loan, guarantee, and insurance programs of
the Bank.
‘‘(B)(i) The Board of Directors shall establish and
use an advisory committee to advise the Board of Direc-
tors on the development and implementation of policies
and programs designed to support the expansion described
in subparagraph (A).
‘‘(ii) The advisory committee shall make rec-
ommendations to the Board of Directors on how the Bank
can facilitate greater support by United States commercial
banks for trade with sub-Saharan Africa.
‘‘(iii) The advisory committee shall terminate 4 years
after the date of the enactment of this subparagraph.’’.
(2) REPORTS
TO
THE
CONGRESS.—Within 6
months after the date of the enactment of this Act,
and annually for each of the 4 years thereafter, the
Board of Directors of the Export-Import Bank of
the United States shall submit to the Congress a re-
port on the steps that the Board has taken to imple-
ment section 2(b)(13)(B) of the Export-Import
Bank Act of 1945 (as added by paragraph (1)) and
any recommendations of the advisory committee es-
tablished pursuant to such section.
SEC. 13. ESTABLISHMENT OF ASSISTANT UNITED STATES
TRADE REPRESENTATIVE FOR SUB-SAHARAN
AFRICA.
(a) ESTABLISHMENT.—The President shall establish
a position of Assistant United States Trade Representa-
tive within the Office of the United States Trade Rep-
resentative to focus on trade issues relating to sub-Saha-
ran Africa.
(b) FUNDING AND STAFF.—The President shall en-
sure that the Assistant United States Trade Representa-
tive appointed pursuant to subsection (a) has adequate
funding and staff to carry out the duties described in sub-
section (a), subject to the availability of appropriations.
SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN
COMMERCIAL 
SERVICE 
IN 
SUB-SAHARAN
AFRICA.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the United States and Foreign Commercial
Service should expand its presence in sub-Saharan Africa
by increasing the number of posts and the number of per-
sonnel it allocates to sub-Saharan Africa.
(b) REPORTING REQUIREMENT.—Not later than 120
days after the date of the enactment of this Act, the Sec-
retary of Commerce, in consultation with the Secretary of
State, should report to the Congress on the feasibility of
expanding the presence in sub-Saharan Africa of the
United States and Foreign Commercial Service.
SEC. 15. REPORTING REQUIREMENT.
The President shall submit to the Congress, not later
than 1 year after the date of the enactment of this Act,
and not later than the end of each of the next 4 1-year
periods thereafter, a report on the implementation of this
Act.
SEC. 16. SUB-SAHARAN AFRICA DEFINED.
For purposes of this Act, the terms ‘‘sub-Saharan Af-
rica’’, ‘‘sub-Saharan African country’’, ‘‘country in sub-
Saharan Africa’’, and ‘‘countries in sub-Saharan Africa’’
refer to the following:
Republic of Angola (Angola)
Republic of Botswana (Botswana)
Republic of Burundi (Burundi)
Republic of Cape Verde (Cape Verde)
Republic of Chad (Chad)
Democratic Republic of Congo
Republic of the Congo (Congo)
Republic of Djibouti (Djibouti)
State of Eritrea (Eritrea)
Gabonese Republic (Gabon)
Republic of Ghana (Ghana)
Republic of Guinea-Bissau (Guinea-Bissau)
Kingdom of Lesotho (Lesotho)
Republic of Madagascar (Madagascar)
Republic of Mali (Mali)
Republic of Mauritius (Mauritius)
Republic of Namibia (Namibia)
Federal Republic of Nigeria (Nigeria)
Democratic Republic of Sao Tome´ and Principe
(Sao Tome´ and Principe)
Republic of Sierra Leone (Sierra Leone)
Somalia
Kingdom of Swaziland (Swaziland)
Republic of Togo (Togo)
Republic of Zimbabwe (Zimbabwe)
Republic of Benin (Benin)
Burkina Faso (Burkina)
Republic of Cameroon (Cameroon)
Central African Republic
Federal Islamic Republic of the Comoros
(Comoros)
Republic of Coˆte d’Ivoire (Coˆte d’Ivoire)
Republic of Equatorial Guinea (Equatorial
Guinea)
Ethiopia
Republic of the Gambia (Gambia)
Republic of Guinea (Guinea)
Republic of Kenya (Kenya)
Republic of Liberia (Liberia)
Republic of Malawi (Malawi)
Islamic Republic of Mauritania (Mauritania)
Republic of Mozambique (Mozambique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Republic of Seychelles (Seychelles)
Republic of South Africa (South Africa)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanzania)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)
SEC. 17. CLARIFICATION OF DEDUCTION FOR SEVERANCE
PAY.
(a) IN GENERAL.—Section 404(a) of the Internal
Revenue Code of 1986 (relating to deduction for contribu-
tions of an employer to an employee’s trust or annuity
plan and compensation under a deferred-payment plan) is
amended by adding at the end the following new para-
graph:
‘‘(11) DETERMINATIONS RELATING TO SEVER-
ANCE PAY.—For purposes of determining under this
section—