Union Calendar No. 241
105TH CONGRESS
2D SESSION
H. R. 1432
[Report No. 105–423, Parts I and II]
A BILL
To authorize a new trade and investment policy for
sub-Saharan Africa.
MARCH 2, 1998
Reported from the Committee on International Relations
with an amendment
MARCH 2, 1998
Reported from the Committee on Ways and Means with
an amendment
MARCH 2, 1998
Referral to the Committee on Banking and Financial
Services extended for a period ending not later than
March 2, 1998
MARCH 2, 1998
The Committee on Banking and Financial Services dis-
charged; committed to the Committee of the Whole
House on the State of the Union and ordered to be
printed
IB
Union Calendar No. 241
105TH CONGRESS
2D SESSION
H. R. 1432
[Report No. 105–423, Parts I and II]
To authorize a new trade and investment policy for sub-Saharan Africa.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1997
Mr. CRANE (for himself, Mr. RANGEL, Mr. MCDERMOTT, Mr. HOUGHTON,
Mr. JEFFERSON, Mr. MANZULLO, Mr. EHLERS, Mr. KOLBE, Mr.
DREIER, Ms. CHRISTIAN-GREEN, Mr. TOWNS, Mr. MCNULTY, Mrs.
MEEK of Florida, Ms. CARSON, Mr. PAYNE, Ms. FURSE, Ms. MCKINNEY,
Ms. JACKSON-LEE of Texas, Mr. FALEOMAVAEGA, Ms. NORTON, Mr.
RUSH, Mr. HASTINGS of Florida, Mr. HALL of Ohio, Mr. DELLUMS, Mr.
FORD, Mr. FOGLIETTA, Mr. FATTAH, Mr. BISHOP, Mr. HILLIARD, Mrs.
CLAYTON, Mr. OWENS, Mr. SCOTT, Mr. HINCHEY, and Mr. BEREUTER)
introduced the following bill; which was referred to the Committee on
International Relations, and in addition to the Committee on Ways and
Means, and Banking and Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
MARCH 2, 1998
Additional sponsors: Mr. MATSUI, Mr. SHAYS, Mr. KLUG, Ms. LOFGREN, Mr.
FROST, Mr. ENGEL, Mr. FOX of Pennsylvania, Mrs. MALONEY of New
York, Mr. FLAKE, Mr. DIXON, Ms. DEGETTE, Mr. SABO, Mr. MCGOV-
ERN, Mr. NEAL of Massachusetts, Ms. KILPATRICK, Mr. WATT of North
Carolina, Mr. CLEMENT, Mr. CUMMINGS, Mr. WEXLER, and Mr. WYNN
MARCH 2, 1998
Reported from the Committee on International Relations with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
MARCH 2, 1998
Reported from the Committee on Ways and Means with an amendment
[Strike out all after the enacting clause and insert the part printed in boldface roman]
MARCH 2, 1998
Referral to the Committee on Banking and Financial Services extended for
a period ending not later than March 2, 1998
MARCH 2, 1998
The Committee on Banking and Financial Services discharged; committed to
the Committee of the Whole House on the State of the Union and or-
dered to be printed
[For text of introduced bill, see copy of bill as introduced on April 24, 1997]
A BILL
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 devel-
opment 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 sec-
tor 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 assistance
for those countries in sub-Saharan Africa attempting
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 ac-
tivities, 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 relat-
ing to—
(1) promoting free movement of goods and serv-
ices between the United States and sub-Saharan Afri-
ca and among countries in sub-Saharan Africa;
(2) promoting the expansion of the production
base and the transformation of commodities and non-
traditional products for exports through joint venture
projects between African and foreign investors;
(3) trade issues, such as protection of intellectual
property rights, improvements in standards, testing,
labeling and certification, and government procure-
ment;
(4) the protection of property rights, such as pro-
tection 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 treaties
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 sub-
sidies, and streamlining the business license process;
(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 process
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).
(2) The extent to which such country has made
substantial progress toward—
(A) reducing tariff levels;
(B) binding its tariffs in the World Trade
Organization and assuming meaningful binding
obligations in other sectors of trade; and
(C) eliminating nontariff barriers to trade.
(3) Whether such country, if not already a mem-
ber of the World Trade Organization, is actively pur-
suing membership in that Organization.
(4) Where applicable, the extent to which such
country is in material compliance with its obligations
to the International Monetary Fund and other inter-
national financial institutions.
(5) The extent to which such country has a rec-
ognizable commitment to reducing poverty, providing
basic health and education for poor citizens, the ex-
pansion of physical infrastructure in a manner de-
signed to maximize accessibility, increased access to
market and credit facilities for small farmers and
producers, and improved economic opportunities for
women as entrepreneurs and employees.
(6) 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 COUN-
TRIES.—The President shall monitor and review the
progress of sub-Saharan African countries in order to
determine their current or potential eligibility 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-Sa-
haran African country should not be eligible to participate
in programs, projects, or activities, or receive assistance or
other benefits under this Act if the government of that coun-
try is determined by the President to engage in a consistent
pattern of gross violations of internationally 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 ASSISTANCE
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 develop-
ment of a receptive environment for trade and investment,
and that to achieve this objective the United States Agency
for International Development should continue to support
programs which help to create this environment. Invest-
ments in human resources, development, and implementa-
tion of free market policies, including policies to liberalize
agricultural markets and improve food security, and the
support for the rule of law and democratic governance
should continue to be encouraged and enhanced on a bilat-
eral and regional basis.
(b) DECLARATIONS OF POLICY.—The Congress makes
the following declarations:
(1) The Development Fund for Africa established
under chapter 10 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2293 et seq.) has been an effec-
tive tool in providing development assistance 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 oppor-
tunities between the United States and sub-Saharan
Africa.
(3) Assistance provided through the Development
Fund for Africa will continue to support programs
and activities that promote the long term economic
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 modern
private businesses and the introduction of college
level business education, including the study of
international business, finance, and stock ex-
changes.
(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 eco-
nomic reform, privatization programs, and mar-
ket-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 Af-
rica.
(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 op-
portunities 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 Foreign
Assistance Act of 1961 (22 U.S.C. 2293(h)) is amend-
ed—
(A) by redesignating paragraph (3) as
paragraph (4); and
(B) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) DEMOCRATIZATION AND CONFLICT RESOLU-
TION
CAPABILITIES.—Assistance under this section
may also include program assistance—
‘‘(A) to promote democratization, good gov-
ernance, and strong civil societies in sub-Saha-
ran 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 ‘‘paragraphs
(1), (2), and (3)’’.
(d) WAIVER AUTHORITY.—Section 496 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2293) is amended by add-
ing at the end the following:
‘‘(p) WAIVER AUTHORITY.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the President may waive any provision of
law that earmarks, for a specified country, organiza-
tion, or purpose, funds made available to carry out
this chapter if the President determines, subject to the
notification procedures under section 634A, that the
waiver of such provision of law would provide im-
proved conditions for the people of Africa. The Presi-
dent shall notify the appropriate congressional com-
mittees, in accordance with the procedures applicable
to reprogramming notifications under section 634A of
this Act, at least 15 days before any determination
under this paragraph takes effect.
‘‘(2) EXCEPTIONS.—
‘‘(A) CHILD
SURVIVAL
ACTIVITIES.—The
authority contained in paragraph (1) may not
be used to waive a provision of law that ear-
marks funds made available to carry out this
chapter for the following purposes:
‘‘(i) Immunization programs.
‘‘(ii) Oral rehydration programs.
‘‘(iii) Health and nutrition programs,
and related education programs, which ad-
dress the needs of mothers and children.
‘‘(iv) Water and sanitation programs.
‘‘(v) Assistance for displaced and or-
phaned children.
‘‘(vi) Programs for the prevention,
treatment, and control of, and research on,
tuberculosis, HIV/AIDS, polio, malaria,
and other diseases.
‘‘(vii) Basic education programs for
children.
‘‘(viii) Contribution on a grant basis
to the United Nations Children’s Fund
(UNICEF) pursuant to section 301 of this
Act.
‘‘(B) REQUIREMENT TO SUPERSEDE WAIVER
AUTHORITY.—The provisions of this subsection
shall not be superseded except by a provision of
law enacted after the date of the enactment of the
African Growth and Opportunity Act which spe-
cifically repeals, modifies, or supersedes such
provisions.’’.
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 of-
ficials 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 establish
a United States–Sub-Saharan Africa Trade and Economic
Cooperation Forum (hereafter in this section referred 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 governments
of sub-Saharan African countries eligible under sec-
tion 4, the Secretary General of the Organization of
African Unity, and government officials from other
appropriate countries in Africa, to discuss expanding
trade and investment relations between the United
States and sub-Saharan Africa and the implementa-
tion of this Act.
(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 Af-
rica in conjunction with the annual meetings of the
Forum for the purpose of discussing the issues de-
scribed in paragraph (1).
(B) The President, in consultation with the Con-
gress, shall encourage United States representatives of
the private sector to host annual meetings with rep-
resentatives of the private sector from sub-Saharan
Africa in conjunction with the annual meetings of the
Forum for the purpose of discussing the issues de-
scribed in paragraph (1).
(3) The President shall, to the extent practicable,
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 discuss-
ing 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 nec-
essary to carry out this section.
SEC. 7. UNITED STATES–SUB-SAHARAN AFRICA FREE TRADE
AREA.
(a) DECLARATION OF POLICY.—The Congress declares
that a United States-Sub-Saharan Africa Free Trade Area
should be established, or free trade agreements should be en-
tered into, in order to serve as the catalyst for increasing
trade between the United States and sub-Saharan Africa
and increasing private sector development in sub-Saharan
Africa.
(b) PLAN REQUIREMENT.—
(1) IN GENERAL.—The President, taking into ac-
count the provisions of the treaty establishing the Af-
rican 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 entering
into one or more trade agreements with sub-Saharan
African countries eligible under section 4 in order to
establish a United States-Sub-Saharan Africa Free
Trade Area (hereafter in this section referred to as the
‘‘Free Trade Area’’).
(2) ELEMENTS OF PLAN.—The plan shall include
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 re-
gional and sub-regional organizations in sub-Sa-
haran Africa with respect to the Free Trade
Area.
(E) Subject matter anticipated to be covered
by the agreement for establishing the Free Trade
Area and United States laws, programs, and
policies, as well as the laws of participating eli-
gible 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 agreements
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 Presi-
dent shall prepare and transmit to the Congress a report
containing the plan developed pursuant to subsection (b).
SEC. 8. ELIMINATING TRADE BARRIERS AND ENCOURAGING
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 succeeding
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 ap-
parel, it will be very difficult for these exports from
sub-Saharan Africa, during 1998 and the succeeding
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 remain around 3
percent of total imports, they will not represent a
threat to United States workers, consumers, or manu-
facturers.
(b) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) it would be to the mutual benefit of the coun-
tries in sub-Saharan Africa and the United States to
ensure that the commitments of the World Trade Or-
ganization and associated agreements are faithfully
implemented in each of the member countries, 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 Afri-
ca with the objective of removing structural impedi-
ments to trade, consistent with obligations under the
World Trade Organization, can assist the countries of
the region in achieving greater and greater diver-
sification of textile and apparel export commodities
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 a cost-effective and efficient visa
system to guard against unlawful transshipment
of textile and apparel goods; and
(B) from Mauritius within 30 days after
that country adopts such a visa system.
The Customs Service shall provide the necessary as-
sistance to Kenya and Mauritius in the development
and implementation of those visa systems. The Cus-
toms Service shall monitor and the Commissioner of
Customs shall submit to the Congress, not later than
March 31 of each year, a report on the effectiveness
of those visa systems during the preceding calendar
year.
(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. The President should ensure that any
country in sub-Saharan Africa that intends to export
substantial textile and apparel goods to the United
States has in place a functioning and efficient visa
system to guard against unlawful transshipment of
textile and apparel goods.
(d) 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 CERTAIN
ARTICLES.—Section 503(a)(1) of the Trade Act of 1974 (19
U.S.C. 2463(a)) 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-SAHARAN
AFRICA.—The President may provide duty-free
treatment for any article set forth in paragraph
(1) of subsection (b) that is the growth, product,
or manufacture of an eligible country in sub-Sa-
haran Africa that is a beneficiary developing
country, if, after receiving the advice of the
International Trade Commission in accordance
with subsection (e), the President determines that
such article is not import-sensitive in the context
of imports from eligible countries in sub-Saha-
ran Africa. This subparagraph shall not affect
the designation of eligible articles under sub-
paragraph (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-SAHARAN
AFRICA.—For purposes of determining the per-
centage referred to in subparagraph (A) in the
case of an article of an eligible country in sub-
Saharan Africa that is a beneficiary developing
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 article
at the time it is entered that is attributed
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 DE-
VELOPING COUNTRIES AND ELIGIBLE COUNTRIES
IN
SUB-SAHARAN
AFRICA.—Subparagraph (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 ef-
fect after May 31, 2007, with respect to beneficiary develop-
ing countries that are eligible countries in sub-Saharan Af-
rica.
‘‘(b) OTHER COUNTRIES.—No duty-free treatment pro-
vided under this title shall remain in effect after May 31,
1997, 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 fol-
lowing:
‘‘(6) ELIGIBLE COUNTRY IN SUB-SAHARAN AFRI-
CA.—The terms ‘eligible country in sub-Saharan Afri-
ca’ and ‘eligible countries in sub-Saharan Africa’
means a country or countries that the President has
determined to be eligible under section 4 of the Afri-
can Growth and Opportunity Act.’’.
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 International Mone-
tary Fund, and the African Development Bank to use the
voice and votes of the Executive Directors to encourage vig-
orously their respective institutions to develop enhanced
mechanisms which further the following goals in eligible
countries in sub-Saharan Africa:
(1) Strengthening and expanding the private sec-
tor, 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 Indebted
Poor Countries’’ (HIPC) debt initiative.
(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that relief provided to countries in sub-Saharan Afri-
ca which qualify for the Heavily Indebted Poor Countries
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 macroeconomic
reform.
(c) EXECUTIVE BRANCH INITIATIVES.—The Congress
supports and encourages the implementation of the follow-
ing initiatives of the executive branch:
(1) AMERICAN-AFRICAN
BUSINESS
PARTNER-
SHIP.—The Agency for International Development de-
voting up to $1,000,000 annually to help catalyze re-
lationships between United States firms and firms in
sub-Saharan Africa through a variety of business as-
sociations 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 governments
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 ag-
ribusiness linkages.
(3) AGRICULTURAL MARKET LIBERALIZATION.—
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 liberal-
ization, agricultural export development, and agri-
business 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-Saharan
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 Con-
gress that the Overseas Private Investment Corporation
should, within 12 months after the date of the enactment
of this Act, exercise the authorities it has to initiate 2 or
more equity funds in support of projects in the countries
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 cap-
italized with a combination of private equity capital,
which is not guaranteed by the Corporation, and debt
for which the Corporation provides guaranties.
(3) TYPES OF FUNDS.—
(A) EQUITY FUND FOR SUB-SAHARAN AFRI-
CA.—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 investments in sup-
port of projects in countries in sub-Saharan Af-
rica.
(B) INFRASTRUCTURE FUND.—One or more
of the funds, with combined assets of up to
$500,000,000, should be used in support of infra-
structure projects in countries of sub-Saharan
Africa. The primary purpose of any such fund
would be to achieve long-term capital apprecia-
tion through investing in financing for infra-
structure projects in sub-Saharan Africa, includ-
ing for the expansion of businesses in sub-Saha-
ran Africa, restructurings, management buyouts
and buyins, businesses with local ownership, and
privatizations.
(4) EMPHASIS.—The Corporation shall ensure
that the funds are used to provide support in particu-
lar to women entrepreneurs and to innovative invest-
ments 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 adding
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, programs,
and financial instruments with respect to sub-Saharan Af-
rica. In addition, the advisory committee shall make rec-
ommendations to the Board on how the Corporation 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 en-
actment 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 Investment
Corporation shall submit to the Congress a report on
the steps that the Board has taken to implement sec-
tion 233(e) of the Foreign Assistance Act of 1961 and
any recommendations of the advisory board estab-
lished pursuant to such section.
(b) EXPORT-IMPORT BANK.—
(1) ADVISORY COMMITTEE FOR SUB-SAHARAN AF-
RICA.—Section 2(b) of the Export-Import Bank Act of
1945 (12 U.S.C. 635(b)) is amended by inserting
after paragraph (8) the following:
‘‘(9)(A) The Board of Directors of the Bank shall take
prompt measures, consistent with the credit standards oth-
erwise required by law, to promote the expansion of the
Bank’s financial commitments in sub-Saharan Africa
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 Directors on
the development and implementation of policies and pro-
grams designed to support the expansion described in sub-
paragraph (A).
‘‘(ii) The advisory committee shall make recommenda-
tions to the Board of Directors on how the Bank can facili-
tate 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 report
on the steps that the Board has taken to implement
section 2(b)(9)(B) of the Export-Import Bank Act of
1945 and any recommendations of the advisory com-
mittee established 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 Representative
within the Office of the United States Trade Representative
to focus on trade issues relating to sub-Saharan Africa.
(b) FUNDING AND STAFF.—The President shall ensure
that the Assistant United States Trade Representative ap-
pointed pursuant to paragraph (1) has adequate funding
and staff to carry out the duties described in paragraph
(1).
SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN
COMMERCIAL SERVICE IN SUB-SAHARAN AF-
RICA.
(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 ex-
panding 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 Afri-
ca’’, ‘‘sub-Saharan African country’’, ‘‘country in sub-Sa-
haran 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)
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 sus-
tainable economic growth and development
in sub-Saharan Africa. To that end, the United
States seeks to facilitate market-led economic
growth in, and thereby the social and eco-
nomic 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, es-
pecially women-owned businesses;
(2) encouraging increased trade and
investment between the United States
and sub-Saharan Africa;
(3) reducing tariff and nontariff bar-
riers and other trade obstacles;
(4) expanding United States assist-
ance to sub-Saharan Africa’s regional in-
tegration efforts;
(5) negotiating free trade areas;
(6) establishing a United States-Sub-
Saharan Africa Trade and Investment
Partnership;
(7) focusing on countries committed
to accountable government, economic re-
form, and the eradication of poverty;
(8) establishing a United States-Sub-
Saharan Africa Economic Cooperation
Forum; and
(9) continuing to support develop-
ment assistance for those countries in
sub-Saharan Africa attempting to build
civil societies.
SEC. 3. STATEMENT OF POLICY.
The Congress supports economic self-reli-
ance for sub-Saharan African countries, par-
ticularly those committed to—
(1) economic and political reform;
(2) market incentives and private sec-
tor growth;
(3) the eradication of poverty; and
(4) the importance of women to eco-
nomic growth and development.
SEC. 4. ELIGIBILITY REQUIREMENTS.
(a) IN GENERAL.—A sub-Saharan African
country shall be eligible to participate in pro-
grams, projects, or activities, or receive assist-
ance or other benefits under this Act if the
President determines that the country does
not engage in gross violations of internation-
ally recognized human rights and has estab-
lished, or is making continual progress to-
ward establishing, a market-based economy,
such as the establishment and enforcement of
appropriate policies relating to—
(1) promoting free movement of goods
and services between the United States
and sub-Saharan Africa and among coun-
tries in sub-Saharan Africa;
(2) promoting the expansion of the
production base and the transformation
of commodities and nontraditional prod-
ucts for exports through joint venture
projects between African and foreign in-
vestors;
(3) trade issues, such as protection of
intellectual 
property 
rights, 
improve-
ments in standards, testing, labeling and
certification, and government procure-
ment;
(4) the protection of property rights,
such as protection against expropriation
and a functioning and fair judicial sys-
tem;
(5) appropriate fiscal systems, such as
reducing 
high 
import 
and 
corporate
taxes, controlling government consump-
tion, participation in bilateral investment
treaties, and the harmonization of such
treaties to avoid double taxation;
(6) foreign investment issues, such as
the provision of national treatment for
foreign investors and other measures to
create an environment conducive to do-
mestic and foreign investment;
(7) supporting the growth of regional
markets within a free trade area frame-
work;
(8) governance issues, such as elimi-
nating government corruption, minimiz-
ing government intervention in the mar-
ket such as price controls and subsidies,
and streamlining the business license
process;
(9) supporting the growth of the pri-
vate sector, in particular by promoting
the emergence of a new generation of Af-
rican entrepreneurs;
(10) encouraging the private owner-
ship of government-controlled economic
enterprises 
through 
divestiture 
pro-
grams;
(11) removing restrictions on invest-
ment; and
(12) observing the rule of law, includ-
ing equal protection under the law and
the right to due process and a fair trial.
(b) ADDITIONAL FACTORS.—In determining
whether a sub-Saharan African country is eli-
gible under subsection (a), the President shall
take into account the following factors:
(1) An expression by such country of
its desire to be an eligible country under
subsection (a).
(2) The extent to which such country
has made substantial progress toward—
(A) reducing tariff levels;
(B) binding its tariffs in the World
Trade Organization and assuming
meaningful binding obligations in
other sectors of trade; and
(C) eliminating nontariff barriers
to trade.
(3) Whether such country, if not al-
ready a member of the World Trade Orga-
nization, is actively pursuing member-
ship in that Organization.
(4) Where applicable, the extent to
which such country is in material compli-
ance with its obligations to the Inter-
national Monetary Fund and other inter-
national financial institutions.
(5) The extent to which such country
has a recognizable commitment to reduc-
ing poverty, increasing the availability of
health care and educational opportuni-
ties, the expansion of physical infrastruc-
ture in a manner designed to maximize
accessibility, increased access to market
and credit facilities for small farmers and
producers, and improved economic op-
portunities for women as entrepreneurs
and employees, and promoting and ena-
bling the formation of capital to support
the 
establishment 
and 
operation 
of
micro-enterprises.
(6) Whether or not such country en-
gages in activities that undermine United
States national security or foreign policy
interests.
(c) CONTINUING COMPLIANCE.—
(1) MONITORING
AND
REVIEW
OF
CER-
TAIN
COUNTRIES.—The 
President 
shall
monitor and review the progress of sub-
Saharan African countries in order to de-
termine their current or potential eligi-
bility under subsection (a). Such deter-
minations shall be based on quantitative
factors to the fullest extent possible and
shall be included in the annual report re-
quired by section 15.
(2) INELIGIBILITY
OF
CERTAIN
COUN-
TRIES.—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 com-
pliance shall be ineligible to participate
in programs, projects, or activities, or re-
ceive assistance or other benefits, under
this Act.
(d) VIOLATIONS OF HUMAN RIGHTS AND IN-
ELIGIBLE COUNTRIES.—It is the sense of the
Congress that a sub-Saharan African country
should not be eligible to participate in pro-
grams, 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 pat-
tern of gross violations of internationally rec-
ognized human rights.
SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXI-
BILITY TO PROVIDE ASSISTANCE UNDER THE
DEVELOPMENT FUND FOR AFRICA.
(a) USE OF SUSTAINABLE DEVELOPMENT AS-
SISTANCE
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 de-
velopment of a receptive environment for
trade and investment, and that to achieve this
objective the United States Agency for Inter-
national Development should continue to sup-
port programs which help to create this envi-
ronment. Investments in human resources,
development, and implementation of free
market policies, including policies to liberal-
ize agricultural markets and improve food se-
curity, and the support for the rule of law and
democratic governance should continue to be
encouraged and enhanced on a bilateral and
regional basis.
(b) DECLARATIONS
OF POLICY.—The Con-
gress makes the following declarations:
(1) The Development Fund for Africa
established under chapter 10 of part I of
the Foreign Assistance Act of 1961 (22
U.S.C. 2293 et seq.) has been an effective
tool in providing development assistance
to sub-Saharan Africa since 1988.
(2) The Development Fund for Africa
will complement the other provisions of
this Act and lay a foundation for in-
creased trade and investment opportuni-
ties between the United States and sub-
Saharan Africa.
(3) Assistance provided through the
Development Fund for Africa will con-
tinue to support programs and activities
that promote the long term economic de-
velopment of sub-Saharan Africa, such as
programs and activities relating to the
following:
(A) Strengthening primary and
vocational education systems, espe-
cially the acquisition of middle-level
technical skills for operating modern
private businesses and the introduc-
tion of college level business edu-
cation, including the study of inter-
national business, finance, and stock
exchanges.
(B) Strengthening health care sys-
tems.
(C) Strengthening family plan-
ning service delivery systems.
(D) Supporting democratization,
good governance and civil society
and conflict resolution efforts.
(E) Increasing food security by
promoting the expansion of agricul-
tural and agriculture-based industrial
production and productivity and in-
creasing real incomes for poor indi-
viduals.
(F) Promoting an enabling envi-
ronment for private sector-led growth
through sustained economic reform,
privatization programs, and market-
led economic activities.
(G) 
Promoting 
decentralization
and local participation in the devel-
opment process, especially linking
the rural production sectors and the
industrial 
and 
market 
centers
throughout Africa.
(H) Increasing the technical and
managerial capacity of sub-Saharan
African individuals to manage the
economy of sub-Saharan Africa.
(I) Ensuring sustainable economic
growth through environmental pro-
tection.
(4) The African Development Founda-
tion has a unique congressional mandate
to empower the poor to participate fully
in development and to increase opportu-
nities for gainful employment, poverty al-
leviation, and more equitable income dis-
tribution in sub-Saharan Africa. The Afri-
can Development Foundation 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 enter-
prises, indigenous technologies, and mo-
bilizing local financing. The African De-
velopment Foundation should develop
and implement strategies for promoting
participation in the socioeconomic devel-
opment process of grassroots and infor-
mal sector groups such as nongovern-
mental organizations, cooperatives, arti-
sans, and traders into the programs and
initiatives established under this Act.
(c) ADDITIONAL AUTHORITIES.—
(1) IN GENERAL.—Section 496(h) of the
Foreign 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
RESOLUTION
CAPABILITIES.—Assistance
under this section may also include pro-
gram assistance—
‘‘(A) to promote democratization,
good governance, and strong civil so-
cieties in sub-Saharan Africa; and
‘‘(B) to strengthen conflict resolu-
tion 
capabilities 
of 
governmental,
intergovernmental, and nongovern-
mental 
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 ‘‘paragraphs
(1), (2), and (3)’’.
(d) WAIVER AUTHORITY.—Section 496 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2293)
is amended by adding at the end the follow-
ing:
‘‘(p) WAIVER AUTHORITY.—
‘‘(1) IN GENERAL.—Except as provided
in paragraph (2), the President may
waive any provision of law that ear-
marks, for a specified country, organiza-
tion, or purpose, funds made available to
carry out this chapter if the President de-
termines, subject to the notification pro-
cedures under section 634A, that the
waiver of such provision of law would
provide improved conditions for the peo-
ple of Africa. The President shall notify
the appropriate congressional commit-
tees, in accordance with the procedures
applicable to reprogramming notifica-
tions under section 634A of this Act, at
least 15 days before any determination
under this paragraph takes effect.
‘‘(2) EXCEPTIONS.—
‘‘(A) CHILD SURVIVAL ACTIVITIES.—
The authority contained in paragraph
(1) may not be used to waive a provi-
sion of law that earmarks funds made
available to carry out this chapter for
the following purposes:
‘‘(i) Immunization programs.
‘‘(ii) 
Oral 
rehydration 
pro-
grams.
‘‘(iii) 
Health 
and 
nutrition
programs, and related education
programs, 
which 
address 
the
needs of mothers and children.
‘‘(iv) 
Water 
and 
sanitation
programs.
‘‘(v) Assistance for displaced
and orphaned children.
‘‘(vi) Programs for the preven-
tion, treatment, and control of,
and research on, tuberculosis,
HIV/AIDS, 
polio, 
malaria, 
and
other diseases.
‘‘(vii) 
Basic 
education 
pro-
grams for children.
‘‘(viii) Contribution on a grant
basis to the United Nations Chil-
dren’s Fund (UNICEF) pursuant
to section 301 of this Act.
‘‘(B) REQUIREMENT
TO
SUPERSEDE
WAIVER AUTHORITY.—The provisions of
this subsection shall not be super-
seded except by a provision of law en-
acted after the date of the enactment
of the African Growth and Oppor-
tunity Act which specifically repeals,
modifies, or supersedes such provi-
sions.’’.
SEC. 6. UNITED STATES–SUB-SAHARAN AFRICA TRADE AND
ECONOMIC COOPERATION FORUM.
(a) DECLARATION
OF POLICY.—The Presi-
dent shall convene annual high-level meetings
between appropriate officials of the United
States Government and officials of the gov-
ernments of sub-Saharan African countries in
and sub-Saharan Africa and the imple-
mentation of this Act.
(2)(A) The President, in consultation
with 
the 
Congress, 
shall 
encourage
United States nongovernmental organiza-
tions to host annual meetings with non-
governmental organizations from sub-Sa-
haran Africa in conjunction with the an-
nual meetings of the Forum for the pur-
pose of discussing the issues described in
paragraph (1).
(B) The President, in consultation
with 
the 
Congress, 
shall 
encourage
United States representatives of the pri-
vate sector to host annual meetings with
representatives of the private sector from
sub-Saharan Africa in conjunction with
the annual meetings of the Forum for the
purpose of discussing the issues de-
scribed in paragraph (1).
(3) The President shall, to the extent
practicable, meet with the heads of gov-
ernments of sub-Saharan African coun-
tries eligible under section 4 not less
than once every two years for the pur-
pose 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 In-
formation Agency shall disseminate regularly,
through multiple media, economic informa-
tion 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 nongovern-
mental organization for the purpose of ex-
panding 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 Con-
gress declares that a United States–Sub-Saha-
ran Africa Free Trade Area should be estab-
lished, or free trade agreements should be en-
tered into, in order to serve as the catalyst for
increasing trade between the United States
and sub-Saharan Africa and increasing pri-
vate sector development in sub-Saharan Afri-
ca.
(b) PLAN REQUIREMENT.—
(1) IN
GENERAL.—The President, tak-
ing 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 agreements, shall
develop a plan for the purpose of enter-
ing into one or more trade agreements
with sub-Saharan African countries eligi-
ble under section 4 in order to establish
a United States–Sub-Saharan Africa Free
Trade Area (hereafter in this section re-
ferred to as the ‘‘Free Trade Area’’).
(2) ELEMENTS OF PLAN.—The plan shall
include the following:
(A) The specific objectives of the
United States with respect to the es-
tablishment of the Free Trade Area
and a suggested timetable for achiev-
ing 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 time-
table for establishing the Free Trade
Area.
(D) The implications for and the
role of regional and sub-regional or-
ganizations in sub-Saharan Africa
with respect to the Free Trade Area.
(E) Subject matter anticipated to
be covered by the agreement for es-
tablishing the Free Trade Area and
United States laws, programs, and
policies, as well as the laws of partici-
pating 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 fol-
lowing:
(i) Adequate consultation with
the Congress and the private sec-
tor during the negotiation of the
agreement or agreements for es-
tablishing the Free Trade Area.
(ii) 
Consultation 
with 
the
Congress regarding all matters
relating to implementation of the
agreement or agreements.
(iii) Approval by the Congress
of the agreement or agreements.
(iv) 
Adequate 
consultations
with the relevant African govern-
ments and African regional and
subregional 
intergovernmental
organizations during the negotia-
tions of the agreement or agree-
ments.
(c) REPORTING
REQUIREMENT.—Not later
than 12 months after the date of the enact-
ment of this Act, the President shall prepare
and transmit to the Congress a report con-
taining 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 manufacturing sector,
make it a limited threat to market dis-
ruption and no threat to United States
jobs.
(2) Annual textile and apparel exports
to the United States from sub-Saharan Af-
rica 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 manufacturing capacity. During
1998 and the succeeding 4 years, this lim-
ited capacity to manufacture textiles and
apparel is projected to grow at a modest
rate. Given this limited capacity to ex-
port textiles and apparel, it will be very
difficult for these exports from sub-Saha-
ran Africa, during 1998 and the succeed-
ing 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 remain around 3 per-
cent of total imports, they will not rep-
resent a threat to United States workers,
consumers, 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 Organi-
zation and associated agreements are
faithfully implemented in each of the
member countries, so as to lay the
groundwork for sustained growth in tex-
tile and apparel exports and trade under
agreed rules and disciplines;
(2) reform of trade policies in sub-Sa-
haran Africa with the objective of remov-
ing structural impediments to trade, con-
sistent 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 commodities and products
and export markets; and
(3) the President should support tex-
tile and apparel trade reform in sub-Sa-
haran Africa by, among other measures,
providing technical assistance, sharing 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 Cloth-
ing, the United States shall eliminate the
existing quotas on textile and apparel ex-
ports 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 doc-
uments; 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 systems.
(2) OTHER
SUB-SAHARAN
COUNTRIES.—
The President shall continue the existing
no quota policy for countries in sub-Saha-
ran Africa. The President shall submit to
the Congress, not later than March 31 of
each year, a report on the growth in tex-
tiles and apparel exports to the United
States from countries in sub-Saharan Af-
rica in order to protect United States
consumers, workers, and textile manufac-
turers from economic injury on account
of the no quota policy.
(d) CUSTOMS PROCEDURES
AND ENFORCE-
MENT.—
(1) ACTIONS
BY
COUNTRIES
AGAINST
TRANSSHIPMENT AND CIRCUMVENTION.—The
President should ensure that any country
in sub-Saharan Africa that intends to ex-
port 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 ac-
tion necessary to prevent circumven-
tion, as provided in Article 5 of the
Agreement on Textiles and Clothing.
(2) PENALTIES AGAINST EXPORTERS.—If
the President determines, based on suffi-
cient evidence, that an exporter has will-
fully falsified information regarding the
country of origin, manufacture, process-
ing, 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 suc-
cessors 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, regulations, and procedures of
the United States relating to the denial of
entry of articles or penalties against indi-
viduals or entities for engaging in illegal
transshipment, fraud, or other violations
of the customs laws shall apply to im-
ports from Sub-Saharan countries.
(4) MONITORING AND REPORTS TO CON-
GRESS.—The Customs Service shall mon-
itor and the Commissioner of Customs
shall submit to the Congress, not later
than March 31 of each year, a report on
the effectiveness of the visa systems de-
scribed in subsection (c)(1) and para-
graph (1) of this subsection and on meas-
ures taken by countries in Sub-Saharan
Africa which export textiles or apparel to
the United States to prevent circumven-
tion as described in Article 5 of the
Agreement on Textiles and Clothing.
(e) DEFINITION.—For purposes of this sec-
tion, 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
CERTAIN 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 subparagraph (D); and
(2) by inserting after subparagraph
(B) the following:
‘‘(C) ELIGIBLE COUNTRIES IN SUB-SA-
HARAN
AFRICA.—The President may
provide duty-free treatment for any
article set forth in paragraph (1) of
subsection (b) that is the growth,
product, or manufacture of an eligi-
ble country in sub-Saharan Africa
that is a beneficiary developing coun-
try, if, after receiving the advice of
the International Trade Commission
in accordance with subsection (e), the
President determines that such arti-
cle is not import-sensitive in the con-
text of imports from eligible countries
in sub-Saharan Africa. This subpara-
graph shall not affect the designation
of eligible articles under subpara-
graph (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-SA-
HARAN AFRICA.—For purposes of deter-
mining the percentage referred to in
subparagraph (A) in the case of an ar-
ticle of an eligible country in sub-Sa-
haran Africa that is a beneficiary de-
veloping country—
‘‘(i) if the cost or value of ma-
terials produced in the customs
territory of the United States is
included with respect to that arti-
cle, an amount not to exceed 15
percent of the appraised value of
the article at the time it is en-
tered that is attributed to such
United States cost or value may
be applied toward determining
the percentage referred to in sub-
paragraph (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 ap-
plied in determining such per-
centage.’’.
(c) WAIVER OF COMPETITIVE NEED LIMITA-
TION.—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
COUNTRIES
IN
SUB-SAHARAN
AFRICA.—
Subparagraph (A) shall not apply to
any least-developed beneficiary de-
veloping country or any eligible coun-
try 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 coun-
tries that are eligible countries in sub-Saha-
ran Africa.
‘‘(b) 
OTHER
COUNTRIES.—No 
duty-free
treatment provided under this title shall re-
main in effect after June 30, 1998, with re-
spect 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 add-
ing at the end the following:
‘‘(6) ELIGIBLE COUNTRY IN SUB-SAHARAN
AFRICA.—The terms ‘eligible country in
sub-Saharan Africa’ and ‘eligible coun-
tries in sub-Saharan Africa’ mean a coun-
try or countries that the President has
determined to be eligible under section 4
of the African 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 Inter-
national Bank for Reconstruction and Devel-
opment, the International Monetary Fund,
and the African Development Bank to use the
voice and votes of the Executive Directors to
encourage vigorously their respective institu-
tions to develop enhanced mechanisms which
further the following goals in eligible coun-
tries in sub-Saharan Africa:
(1) Strengthening and expanding the
private sector, especially among women-
owned businesses.
(2) Reducing tariffs, nontariff bar-
riers, and other trade obstacles, and in-
creasing economic integration.
(3) Supporting countries committed
to accountable government, economic re-
form, the eradication of poverty, and the
building of civil societies.
(4) Supporting deep debt reduction at
the earliest possible date with the great-
est amount of relief for eligible poorest
countries under the ‘‘Heavily Indebted
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 Countries debt initia-
tive 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 estab-
lish a strong record of macroeconomic reform.
(c) EXECUTIVE BRANCH INITIATIVES.—The
Congress supports and encourages the imple-
mentation of the following initiatives of the
executive branch:
(1) AMERICAN-AFRICAN
BUSINESS
PART-
NERSHIP.—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
REFORMS.—The Agency for International
Development providing up to $5,000,000
annually in short-term technical assist-
ance programs to help the governments
of sub-Saharan African countries to—
(A) liberalize trade and promote
exports;
(B) bring their legal regimes into
compliance with the standards of the
World Trade Organization in conjunc-
tion with membership in that Organi-
zation; and
(C) make financial and fiscal re-
forms, as well as the United States
Department of Agriculture providing
support to promote greater agri-
business linkages.
(3) AGRICULTURAL MARKET LIBERALIZA-
TION.—The Agency for International De-
velopment devoting up to $15,000,000 an-
nually as part of the multi-year Africa
Food Security Initiative to help address
such critical agricultural policy issues as
market liberalization, agricultural export
development, and agribusiness invest-
ment in processing and transporting agri-
cultural commodities.
(4) TRADE PROMOTION.—The Trade De-
velopment Agency increasing the number
of reverse trade missions to growth-ori-
ented countries in sub-Saharan Africa.
(5) TRADE
IN
SERVICES.—Efforts by
United States embassies in the countries
in sub-Saharan Africa to encourage their
host governments—
(A) to participate in the ongoing
negotiations on financial services in
the World Trade Organization;
(B) to revise their existing sched-
ules to the General Agreement on
Trade in Services of the World Trade
Organization in light of the successful
conclusion of negotiations on basic
telecommunications 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 competition in the services sec-
tor 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 In-
vestment 
Corporation 
should, 
within 
months after the date of the enactment of this
Act, exercise the authorities it has to initiate
2 or more equity funds in support of projects
in the countries 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 managers and mon-
itored on a continuing basis by the Cor-
poration.
(2) 
CAPITALIZATION.—Each 
fund
should be capitalized with a combination
of private equity capital, which is not
guaranteed by the Corporation, and debt
for which the Corporation provides guar-
anties.
(3) TYPES OF FUNDS.—
(A) EQUITY FUND FOR SUB-SAHARAN
AFRICA.—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 coun-
tries 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-Saharan
Africa. The primary purpose of any
such fund would be to achieve long-
term capital appreciation through in-
vesting in financing for infrastruc-
ture projects in sub-Saharan Africa,
including for the expansion of busi-
nesses 
in 
sub-Saharan 
Africa,
restructurings, management buyouts
and buyins, businesses with local
ownership, and privatizations.
(4) EMPHASIS.—The Corporation shall
ensure that the funds are used to provide
support in particular to women entre-
preneurs and to innovative investments
that expand opportunities for women and
maximize employment opportunities for
poor individuals.
SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION
AND EXPORT-IMPORT BANK INITIATIVES.
(a) OVERSEAS PRIVATE INVESTMENT COR-
PORATION.—
(1) ADVISORY COMMITTEE.—Section 233
of the Foreign Assistance Act of 1961 is
amended by adding at the end the follow-
ing:
‘‘(e) ADVISORY
COMMITTEE.—The Board
shall take prompt measures to increase the
loan, guarantee, and insurance programs, and
financial commitments, of the Corporation in
sub-Saharan Africa, including through the es-
tablishment and use of an advisory committee
to assist the Board in developing and imple-
menting policies, programs, and financial in-
struments with respect to sub-Saharan Africa.
In addition, the advisory committee shall
make recommendations to the Board on how
the Corporation 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 Investment Cor-
poration shall submit to the Congress a
report on the steps that the Board has
taken to implement section 233(e) of the
Foreign Assistance Act of 1961 (as added
by paragraph (1)) and any recommenda-
tions of the advisory board established
pursuant to such section.
(b) EXPORT-IMPORT BANK.—
(1) ADVISORY COMMITTEE FOR SUB-SAHA-
RAN AFRICA.—Section 2(b) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635(b))
is amended by inserting after paragraph
(12) the following:
‘‘(13)(A) The Board of Directors of the
Bank shall take prompt measures, consistent
with the credit standards otherwise required
by law, to promote the expansion of the
Bank’s financial commitments in sub-Saharan
Africa under the loan, guarantee, and insur-
ance programs of the Bank.
‘‘(B)(i) The Board of Directors shall estab-
lish and use an advisory committee to advise
the Board of Directors on the development
and implementation of policies and programs
designed to support the expansion described
in subparagraph (A).
‘‘(ii) The advisory committee shall make
recommendations to the Board of Directors
on how the Bank can facilitate greater sup-
port by United States commercial banks for
trade with sub-Saharan Africa.
‘‘(iii) The advisory committee shall termi-
nate 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 implement section 2(b)(13)(B) of
the Export-Import Bank Act of 1945 (as
added by paragraph (1)) and any rec-
ommendations of the advisory committee
established 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 Representative within the Office of the
United States Trade Representative to focus
on trade issues relating to sub-Saharan Afri-
ca.
(b) FUNDING
AND STAFF.—The President
shall ensure that the Assistant United States
Trade Representative appointed pursuant to
subsection (a) has adequate funding and staff
to carry out the duties described in sub-
section (a).
SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN
COMMERCIAL SERVICE IN SUB-SAHARAN AF-
RICA.
(a) SENSE
OF
THE CONGRESS.—It is the
sense of the Congress that the United States
and Foreign Commercial Service should ex-
pand its presence in sub-Saharan Africa by in-
creasing the number of posts and the number
of personnel it allocates to sub-Saharan Afri-
ca.
(b) REPORTING REQUIREMENT.—Not later
than 120 days after the date of the enactment
of this Act, the Secretary of Commerce, in con-
sultation with the Secretary of State, should
report to the Congress on the feasibility of ex-
panding the presence in sub-Saharan Africa
of the United States and Foreign Commercial
Service.
SEC. 15. REPORTING REQUIREMENT.
The President shall submit to the Con-
gress, 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 Africa’’, ‘‘sub-Saharan African coun-
try’’, ‘‘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 (Equa-
torial 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 (Mau-
ritania)
Republic 
of 
Mozambique 
(Mozam-
bique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Republic of Seychelles (Seychelles)
Republic of South Africa (South Afri-
ca)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanza-
nia)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)
SEC. 17. CLARIFICATION OF DEDUCTION FOR SEVERANCE
PAY.
(a) IN GENERAL.—Section 404(a) of the In-
ternal Revenue Code of 1986 (relating to de-
duction for contributions of an employer to