11:00 A.M. EST
MODERATOR: Is everyone ready? Okay, let's go ahead and get started, then. Thanks, everyone, for coming today. It's my pleasure to have with us at the Foreign Press Center the Deputy Assistant Secretary for the Treasury Ahmed Saeed. He's about to leave with Treasury Secretary Henry Paulson on their trip to Africa. They're going to be visiting South Africa, Ghana, as well as Tanzania, and so we wanted to have a chance to preview a little bit about that trip and talk about some of the work that we're doing, not just in those countries, but more broadly across the continent.
So we're going to have a short opening statement and then we'll be able to take your questions.
MR. SAEED: Thank you very much. It's a pleasure to be here and to talk to you about the Secretary's upcoming trip to Africa. I'm just going to talk a little bit about the reason why the Secretary is traveling to Africa at this time. I'm then just going to take a few minutes to walk through his schedule, where he's going, and some of the events that he'll be participating in and then I'm happy to take any questions.
As many of you know, when people talk about Africa, particularly those in the West, they often view Africa as a monolithic continent and often, they define it as a place dominated by famine, conflict and disease, and often view it as a place that's different from any other place in the world. In contrast to that, Secretary Paulson is going to Africa to shine a light on an Africa that, while diverse and a place of great richness, is, in many ways, like every other emerging market on the planet, a place where sound governance and good economic policies have, over the last half-decade and longer, had profound positive economic consequences.
There are numerous challenges in today's Africa, as we all know. We know those challenges well. But it's also a place where there has been real success in poverty alleviation, particularly in those countries that have done the right thing when it comes to economic policy. The continent is seeing the highest growth rates and the lowest inflation levels in 30 years. This is growth and economic policy management that seems to be quite widespread. Twenty-three of 48 countries are seeing record-high growth levels. It's also growth that seems to be trickling down. The last four years, we've seen average per capita income growth of 3.8 percent and it is growth that seems to be getting faster. The IMF is projecting 4 percent per capita income growth for this year.
In order to draw attention to this success and in order to draw attention to what undergirds this success, the Secretary is going to visit three countries which appear to now have a sustained track record of doing the right things. The three countries he's going to be visiting are Tanzania, South Africa, and Ghana, in that order. All three now have robust track records of economic growth going back at least five years. All three have been implementing positive economic reforms and all three exemplify the good financial and economic news stories that are now emerging from Africa.
The Secretary is also going to, on his trip, talk about some issues related to economic and financial performance, some of the things that lead to it and some of the things that must continue. He's going to talk about the critical role played by infrastructure. He's going to talk about the importance of having a sound and robust financial sector. He's going to talk about the importance of spreading the benefits of growth and he's going to talk about the importance of sustainable development.
With that, let me now turn to his schedule. He's going to leave Washington next week. He's going to leave on Tuesday afternoon, arriving in Arusha, Tanzania late on Wednesday. His schedule will begin early on Thursday morning. His first visit is going to be to Manyara, a farm outside of Arusha. Manyara is a sustainable community focused on land conservation with the goal of being commercially viable. It's supported by USAID and administered by the Africa Wildlife Foundation.
After visiting Manyara in the morning, he's going to return to Arusha in the afternoon, where he's going to sit down with the Finance Minister of Tanzania, Finance Minister Meghji. They're going to have a conversation about several issues related to Tanzania's economic situation and progress. One of the things they're going to talk about is the MCC Compact. Tanzania will, early next year, be signing a $698 million MCC Compact with the United States with a focus on infrastructure. A little bit later after that, he'll be meeting with the EAC finance ministers, finance ministers for Rwanda, Uganda, Burundi, Tanzania and Kenya to talk about regional capital markets integration and the important role that that may play in fostering further economic development in that region.
He'll then move on to visit a mosquito net factory that's benefited from the President's Malaria Initiative in East Africa and that is playing an important role in generating jobs in the region. He'll head from Tanzania, then, on Wednesday to Cape Town. In Cape Town, he's going to meet with local bankers. He's going to visit the Khayelitsha Cookie Company, which is a company which is located in a township and creating job opportunities for some of the women in the township. He's also going to be participating in the G-20 meetings. That's not something that I'll be talking about today since my primary focus is talking about his Africa trip and not about the G-20. But that is something he'll be doing on this trip.
After participating in the G-20 on Saturday and on Sunday, he's going to travel to Ghana on Sunday, arriving in Ghana late Sunday. Ghana is another country which, from our perspective, illustrates much of what many countries in Africa are doing in terms of fostering economic growth and taking the right steps. As you may know, Ghana recently issued a 10-year sovereign bond issuance, the first in Sub-Saharan African history. In Ghana, he'll be doing several things again on this theme. In the morning of Monday, he'll visit the Ghana Stock Exchange. He'll tour the stock exchange and then have a roundtable with some local bankers, both from Ghana as well as from the region.
He will meet with President Kufuor later that day. He'll talk about some of Ghana's recent economic progress. And then later that afternoon, he'll go to Akosombo Dam. And at Akosombo Dam, he'll talk about the critical role of infrastructure in fostering economic development in Africa. Akosombo Dam is the source of over 50 percent of Ghana's energy. And at Akosombo, he'll talk about the relationship between donors, between the private sector, between the international financial institutions and between the countries that receive assistance in creating the right climate for infrastructure development in Africa. After that, he'll return home.
The overarching theme of the trip, as I indicated, is to shine a light on those changes which are taking place in Africa, have been taking place for some time, in terms of implementing fundamentally sound economic policies, and those changes which are now bearing fruit in terms of seeing real results, and talking about how we can partner with those who have a real commitment to reform. So that's the theme of the trip. That's the reason why he's traveling. We'll be looking for opportunities to partner with those who have a real commitment to reform, and those are the countries that we've picked to travel to.
And so with that, I'm happy to take some questions.
MODERATOR: If I could just have you state your name and media organization before asking the question.
Yes.
QUESTION: My name is Boze Syri. I'm calling -- I'm coming from Chinese Branch at Voice of America. Not long time ago, Uganda's President visited the White House and complained to President Bush that the United States is kind of ignoring Africa. And now the United States is still the biggest investor in that continent. But as some observers saying that the U.S. is losing out in face of the rising of Chinese investment and the influence in Africa.
So, Mr. Saeed, my question is two. Number one, how do you regard and evaluate the Chinese activity and presence in Africa? And two, do you think Mr. Paulson's trip is kind of competition with China trying to recover some (inaudible) ground? Thank you.
MR. SAEED: Whenever we speak with African leaders about China or we hear from them about China's engagement with Africa, they often view it as an opportunity for them to broaden their source of funding for investment opportunities. And we view China's engagement in Africa very much in that vein.
As for our own engagement with Africa, I think there can be no doubt that certainly through the course of this administration, there has been a tremendous uptick in terms of U.S. engagement with Africa. Just since 2004, U.S. assistance to Africa has gone up 60 percent. The U.S. is currently above trajectory to meet its Gleneagles commitments of 7 billion in assistance in 2010.
So I think that one thing is very clear: This Administration and this President have been extremely committed to foreign assistance in Africa. That, I think, is understood well by African leaders and by Africans. And I think the issue of China is somewhat separate, and I think African leaders view China as an additional source of funding and something that they benefit from.
MODERATOR: Next question, please.
QUESTION: My name is Constance Ikokwu, This Day news in Nigeria. I just wanted to ask, you spoke about partnering with Africa in different ways. I would like to know what is the partnership with Nigeria, how you see Nigeria on the continent, and how you view the country in terms of stability and economic programs so far?
Secondly, there's currently a bill called the Jubilee Act bill for standard debt cancellation and -- debt cancellation and responsible lending. That bill will call on the Treasury, the U.S. Treasury, to collaborate with multilateral institutions to cancel debts of more countries in Africa and to work on the issue of vulture funds. I would like to know if you know about this bill and what you are doing currently to help African countries in those areas, especially vulture funds and debt cancellation. Thank you.
MR. SAEED: Let me -- two separate issues. Nigerian vulture funds. Let me just comment on them separately. First on Nigeria, there can be no question that Nigeria in its role, economic role, both Nigeria itself and Nigeria's role on the continent economically, are critical issues and that Nigeria plays a very, very important role. And we are very engaged with the Nigerian government. We had meetings with Nigerian financial officials most recently during the bank fund meetings and have a very active engagement with the Nigerian government.
On the issue of vulture funds, this is quite a complicated issue. On the one hand, vulture funds seek to enforce legal claims. And legal claims -- it is important that laws be honored. It is important that rule of law be honored and this principle is important for developing countries. It's important for them so that they can maintain investment flows.
On the other hand, we have gone through a very large debt relief exercise, totaling some $70 billion through HIPC and MDRI. And no one wants to see these funds simply forgiven so that they can then flow back to a class of private creditors. For our part, in the U.S. Government, we have been encouraging all creditors, all classes of creditors -- public, private, other -- to provide debt forgiveness similar to the debt forgiveness that we've provided.
I would offer one other note on this issue, which is that litigants, at least in our observation, do not appear to have been successful in achieving large claims through the litigation process, at least not up to this point. And I think that's an additional data point on this issue. But having said all that, this issue of vulture funds is a complicated and vexing one and it's one that we are very engaged on and trying to work through.
MODERATOR: A follow-up?
QUESTION: Yeah. I mean, but you know, I want to know would you agree that, on one hand, the U.S. is working with African countries to make progress economically to be able to show more resources to spend on important areas of education, healthcare, water? On the other hand, this very issue sort of moves them into spending those resources in other areas that they shouldn't be spending money on. What's your view on that?
MR. SAEED: Well, as I said, I think there is -- I mean, I think you've restated in some ways. As I said, there is, on the one hand, the issue that the rule of law is an important principle. And the principle that we provided debt relief for a reason so that governments would be enabled -- so that funds would be available for social uses, such as education, such as healthcare, such as other important purposes, is an important principle. And vulture funds and their attempt to seize funding for other purposes does create attention. And I think you're right, to a certain extent; that's why I term this as a vexing issue. I think this is a complicated and difficult issue.
MODERATOR: Other questions, please. Yeah, let's go here to the back and then we'll go over here.
QUESTION: Chuck Corey, USINFO. Could you tell me a little bit about Secretary Paulson's visit to the business summit, the Corporate Council on Africa Business Summit in Cape Town, a little bit about how important you see that event, and any growing U.S.-Africa business and trade ties? Thank you.
MR. SAEED: Yeah. Actually, thank you. I think -- thanks for reminding me about that, because I think I may have failed to mention that.
While he's in Cape Town on that Friday evening, the Secretary is going to deliver the keynote address, closing address at the CCA's annual summit in Cape Town. This is going to be -- those remarks will be available in advance and this will be an opportunity for him to speak about what his trip is about. He'll be talking about some of the themes that I talked about here. But he will be delivering his own remarks in his own words. He'll talk about why he's gone to Africa. He'll talk about some of the ways that we'll be working together with Africans.
But as you know, this is the major annual business and government meeting in Africa, so it's a good forum and a good venue and opportunity for him to both see some of the people that he wants to see, but also to talk to them about some of the things that we've been working on and that he'd like to work with them on.
MODERATOR: Next question.
QUESTION: My name is E. Ablorh Odjidja from Profile Africa Group. I have two questions. One has to do with the Chinese business and the other has to do with the MCC Compact with Ghana. Now, the Chinese seem to be getting all the ink for their efforts in Africa even though, as you have stated, America has a higher stake of investment in Africa than the Chinese. And I would like to know why it is so. The other thing is the MCC Compact. How is Ghana doing?
MR. SAEED: On the MCC Compact, I think Ghana is doing well. There has not been -- there's been a lot of work behind the scenes on the Compact. So there hasn't been as much to show yet, but there will be more to show next year. And beginning in January of '08, we will start to see some of the fruits of the labor that's been going on behind the scenes on the MCC Ghana Compact. There's some work going on in a school administration project. The N1 Highway plan is being worked on. I believe there are some 17 procurement projects that are in train. So there's a number of things going on behind the scenes on the Ghana Compact that I think in the next year we'll start to see. So that's on your second question.
On the first question, you said the U.S. is doing more, but you're not seeing the ink. You're the reporters; you tell me. (Laughter.)
QUESTION: This is a view of a low reporter. But, you know, there are many reporters from your country who are coming back with a lot of stories about the Chinese. And practically, you know, you hardly hear anything about the Americans, you know, even though, as I said --
MR. SAEED: Well, I guess I would say please write about this trip. (Laughter.)
MODERATOR: Okay. Do we have any other questions? Sure.
QUESTION: Yes. My name is Mobhare Matinyi, Business Times from Tanzania. Recently, Tanzania has been commended for good economic policies and, in fact, very nice developments compared to the past years. However, there have been some disappointments. There have been some issues within the Ministry of Finance and Bank of Tanzania, I think you are aware of. And a lot of things have been written by local media in Tanzania, and even ambassadors who are stationed in Tanzania at one time had to decide to say something about it. We know Tanzania is now expected to receive some funds, you state from the MCC, and the Secretary will be meeting with Tanzania Finance Minister. I just want to know what is the U.S. position as far as regarding all these things that have been happening in Tanzania.
And the second question is I just want to know are there efforts being done by U.S. Government towards this thing -- investing in Africa? As you have stated and as you know, there is a stereotype towards Africa. A lot of businesses in the world don't trust Africa.
MR. SAEED: Well, I think -- look, the message of the Secretary's trip is that there are good things happening in Africa and they've been happening for a while, and he wants to bring attention to them. The message of the trip is not that this is easy and that one can take their hands off the steering wheel. So Tanzania as an example, this is true in every country in Africa. All of this is hard. It requires continued engagement. It requires sustained commitment. And whether it's in Tanzania or in Ghana or in Mozambique or in Uganda, one cannot allow one's attention to drift. These are difficult environments. And the progress that has been achieved has not been easy. So it is important that the commitment be sustained.
On the issue of investment, we do believe that while some attention has been received, it is not commensurate with the amount of achievement that has been achieved. And that's one of the reasons why the Secretary is traveling. He would like to help tell the story. He believes as the U.S. Treasury Secretary he can help tell the world the story, and that's one of his goals.
MODERATOR: I think we have time for maybe another question or two, if anyone has any remaining questions. One last shot. Okay. Very good. Well, thanks again for your time.
MR. SAEED: Thank you.
