AFRICA

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
Development Assistance	$445,143,000	$460,133,000	---
Development Fund for Africa	---	---	$512,560,000
Child Survival and Disease	$255,042,000	$251,182,000	$232,443,000
Economic Support Funds	$26,000,000	$98,231,000	$73,000,000
P.L. 480 Title II	$428,623,000	$209,553,000	$134,376,000
P.L. 480 Title III	$19,800,000	$14,900,000	---

United States National Interests.

Two policy goals define United States foreign policy in Africa: accelerating Africa's full integration into the global economy and combatting transnational security threats.

Closer economic and intellectual integration of Americans and Africans enhances U.S. long-term security. Thus, it is significant that growth in U.S. trade with sub-Saharan Africa has outpaced growth in U.S. trade worldwide, averaging 17% annually since 1994. The United States is Africa's second largest industrial supplier. Nearly 13% of the U.S. crude oil imports come from sub-Saharan Africa today, and the level is projected to reach 20% within a decade, providing an important source of petroleum outside of the Middle East.

Americans and Africans are working together to combat transnational security threats -- terrorism, weapons proliferation, narcotics flows, international crime, environmental degradation and disease. Programs that strengthen fragile democracies increase African ability to cope with natural disasters, improve social development and promote regional political security and stability. These programs help reduce the instability upon which international terrorism, drug trafficking and weapons trade thrive.

The United States cannot afford to ignore Africa -- neither as a significant and growing investment opportunity nor as a source of threats. It is in the U.S. national interest to see Africa succeed.

Africa's Needs Are Great
Socio-Economic Indicators	Africa	Latin America	Asia
GDP per capita (1997)	$560	$4,230	$730
Adult Illiteracy (1995)			E.Asia	S.Asia
Male	34	12	9	38
Female	53	15	24	64
Children, 6-11, out of school (millions)	51	11	13	23
Average Pop. Growth Rate (1980-96)	2.8	1.9	1.5	2.1
Infant Mortality Rate (1,000 Live Births)	96	36	57
Life Expectancy (years)	48	69	65
Total Fertility Rate	6.0	3.0	2.8
HIV/AIDS sero-prevalence (millions)	22.5	1.73	7.27

Development Challenges.

Poverty. The fundamental development challenge facing Africa is its extreme poverty. As the table above shows, poverty -- a measure of sheer human need-- is greatest in Africa. Evidence clearly demonstrates that the long-term ill-effects of poverty, exclusionary politics, inequitable access to resources, and poor governance create the conditions that, if not addressed, eventually lead to open conflict, humanitarian disasters and, in extreme cases, failed states. USAID recognizes that broad-based, equitable development diminishes the potential for conflict, promotes political stability and builds more prosperous nations.

Economic Growth. Agriculture is the priority sector for investment to stimulate the rapid economic growth Africa requires to alleviate food insecurity and malnutrition. The Africa Food Security Initiative (AFSI), which is funded at $45 million for FY 2000, strengthens and expands successful bilateral mission programs in agriculture and food security by supporting national and regional agricultural technology development as well as policy research networks. AFSI successes include Mali, which increased its economic growth rate in 1997 from 4% to 5.7% partly through increases in agricultural production for which USAID has been instrumental; Mozambique, which increased incomes of households through a 51% increase in sales of agricultural produce thanks to integrated actions improving agricultural policies, roads, agricultural productivity and market information; and Ethiopia, which developed a food security strategy and agriculture program in FY 1998.

Long-lasting economic growth also must include private sector participation and mutually beneficial trade and investment relationships. The Africa Trade and Investment Policy (ATRIP) Program, which is funded at $30 million for FY 2000, provides technical assistance to help reform-oriented African countries to improve the enabling environment for trade and private investment. It also links United States and African firms through business and trade associations or networks; and helps finance implementation of aggressive, market-friendly reforms.

Debt in Africa is debilitating. Sub-Saharan African debt tripled between 1980 and 1998, while external debt as a share of Gross Domestic Product (GDP) more than doubled, reaching a peak of 71% of GDP in 1994. Recent economic reforms have resulted in an upward trend in average GDP growth rates for Africa as a whole, and rescheduling and outright debt forgiveness by many countries including the United States reduced the external debt ratio to roughly 53% of GDP in 1998.

Africa is beginning to benefit from the Heavily Indebted Poor Country (HIPC) debt reduction initiative launched in 1996. Thirty-two of the forty countries that can be classified as heavily indebted poor countries are in Africa. Five of the seven countries that have reached debt relief agreements with the bilateral and multilateral donors under the HIPC initiative through December 1998 are in Africa (Burkina Faso, Cote d'Ivoire, Mali, Mozambique, and Uganda). Benin and Senegal reached serviceable debt levels without HIPC relief.

The Clinton Administration's Partnership for Growth and Opportunity in Africa supports eliminating bilateral debt for the poorest countries, and urges the World Bank and the IMF to provide maximum relief under HIPC. USAID technical assistance to promote fiscal, financial and trade reforms under ATRIP allows African governments to stay the course of policy reform and remain eligible to benefit from the HIPC initiative.

HIV/AIDS. HIV/AIDS is devastating Africa. Approximately 6 million Africans die of AIDS every year. By 1997, approximately 7.4% of all individuals 15 to 49 years of age were infected with HIV. In South Africa 1,300 new cases are diagnosed each week. In Zimbabwe one in 10 persons is estimated to be infected. In Botswana children born early in the next decade will have a life expectancy of 40 years; without AIDS, it would be nearer to 70. By the end of 1998, there were an estimated 21.5 million men and women living with HIV, plus another one million children. The impact is enormous.

Since the international epidemic was recognized, USAID has led the world, financially and intellectually, in HIV/AIDS prevention. Significant progress has been made through programs to increase knowledge about HIV, change risky sexual behavior through education, motivation and innovation; increase the availability and use of condoms; and increase access to quality reproductive health services.

Education. Africa has the highest rates of adult illiteracy, the least developed human resources, and the "thinnest" leadership of any continent. Fifty-one million children, ages 6-11, are projected to be out of school in the year 2000.

USAID is committed to fostering investment in education, at all levels, and especially, girls' education. The Education for Development and Democracy Initiative (EDDI), announced by President Clinton last March, will devote $120 million over three years, ending in FY 2000, to improve African education and African access to the technology and information needed to compete in the 21^st century.

Conflict Prevention and Mitigation. Crisis prevention on this fragile continent is critical -- even the best performers can be overwhelmed by the demands of a drought or instability in a neighboring country; thus, relief and development are at different ends of a long continuum. U.S. assistance does not neglect the connections between poverty, isolation, and nondemocratic political structures to crisis vulnerability. The United States continues to play an active role -- diplomatically and operationally -- to help prevent and resolve African conflicts. USAID remains committed to helping Africans over the long-term to build their own capacity for peacekeeping and conflict resolution.

USAID is committed to development of African civil society and institutions of good governance. The Great Lakes Justice Initiative (GLJI) seeks to break the cycle of violence in the region by building credible, impartial civilian and military justice systems while bolstering ethnic reconciliation. Activities include rule of law strengthening and humanitarian interventions such as demining and demobilizing child soldiers. The Greater Horn of Africa Initiative (GHAI), as one of its mandates, works to reduce the threat of conflict. Over 125 individuals from private voluntary organizations, non-governmental organizations, community-based organizations, collaborating governments and USAID Missions received specialized training in Linking Relief and Development and Building Local Capacities for Peace. The famine crisis in South Sudan in 1998 was the worst since 1989. USAID led an interagency process developed under the auspices of GHAI to prepare a Humanitarian Action Plan to meet the increasing humanitarian needs.

USAID, working with other United States agencies, is taking the lead to expand and enhance conflict early warning information systems and to address root causes of conflict. In the West African nation of Guinea, USAID has conducted an analysis of conflict vulnerabilities and developed, in conjunction with the United States Country Team, a monitoring system to systematically detect heightening tensions that could break into open conflict. The resources of the U. S. mission are then arrayed to address these "flashpoints" and forestall open conflict. USAID/Mali has launched a special program to address the causes of the Tuareg rebellion in the north and USAID/Uganda has a similar program for Uganda's northern region. Other USAID missions will test new analytical methods and measures to prevent or mitigate conflict and facilitate transition.

Program and Management Challenges.

Program Challenges. Hope and opportunity exemplified the President's visit to Africa and mark Africa's growing economic and political performance. The challenge before USAID is to respond to the opportunities and the vulnerabilities of this fragile continent within the context of its development mission, United States foreign policy objectives, and limited human and financial resources. USAID is developing new ways of doing business outside of the context of stable, sustainable development countries and the Agency has developed a close working relationship with other U.S. government agencies.

Development Fund for Africa (DFA). Created in the 1980s, the DFA provided an assured and stable source of funding for Africa and flexibility that increased program impact. The Administration recognizes that the DFA is critical to the sustained commitment to African development demanded by Africa's national security status.

The Administration now seeks a renewed appropriation for the DFA to meet the commitment to African development outlined by the President last spring and to better equip U.S. foreign assistance to respond to the new demands of countries in crises and transition.

Management Challenges: Staff levels for the Africa Bureau have declined to the point where overseas missions, the lifeblood of USAID's intellectual and technical expertise and influence, are in danger. Staffing limitations undermine the ability to respond to emergencies and opportunities. USAID's dedicated staff work under difficult and dangerous circumstances to further United States foreign policy objectives around the globe. Increased resources are critical to the effective delivery of development assistance activities.

Other Donors:

Ranking: In 1983-84, United States Official Development Assistance (ODA) to Africa was the highest of any bilateral donor; by 1993-95, the United States level had dropped to second behind France; and by 1995-96 to fourth after France, Germany, and Japan. Despite this fall, the United States continues to play a leadership role in many fora in Africa -- from development assistance to crisis mitigation.

Major multilateral donors in Africa include the World Bank Group, lending almost exclusively through its concessionary International Development Association window, the European Union, the United Nations, and the African Development Bank. There is a high level of cooperation and coordination among bilateral and multilateral donors of program resources.

Other U.S. Agencies: Strong interagency coordination and partnerships are hallmarks of USAID's programming in Africa. For example, for the U.S.-South Africa Binational Commission (BNC) USAID is coordinating its efforts with the Department of Commerce, the Export-Import Bank, the Overseas Private Investment Corporation and the Trade Development Agency, while providing technical support to the BNC. USAID is also funding Treasury Department advisors to the South African Government to assist with tax and budget decentralization issues. USAID works in partnership with the Peace Corps in many countries, e.g., in Namibia and Uganda in the implementation of basic education programs and in Tanzania with local communities introducing soil conservation techniques.

FY 2000 Program.

USAID programs in Africa benefit from increasing African ownership, partnership and leadership. As ownership and commitment increase, programs align more closely with the needs of African partners, and performance improves. A formal review of results from FY 1999 African activities shows that program performance continues to improve across sectors, strategic objectives, and virtually all countries.

Economic Growth and Agricultural Development. National incomes are growing in Africa, with many countries sustaining annual gains greater than 5%. USAID's efforts to open trade and investment have played a role as, for example, Ghana saw a 32% increase in non-traditional exports (NTEs), Uganda recorded a 21% increase in NTEs, and Malawi’s nascent cut flower industry exported $14 million in 1997. With USAID support, Mali saw a 235% increase in savings mobilized by microcredit institutions, and private investment in Madagascar grew from 4.9% to 6.4% in 1996/97. Zambia privatized 96 companies since 1995, and South Africa moved towards less state economic domination with a 30% equity sale in its telecommunications parastatal. Growth in agriculture, and so food security, has been impressive -- of 15 low-income countries, 13 (87%) showed agriculture growth more rapid than population growth.

Democracy and Governance. USAID has contributed to the growth of democracy in Africa with significant improvements in: (1) local democratic management and revenue collection (Mali, Ghana, South Africa); (2) parliament's responsiveness to civil society (Namibia, Benin, Mozambique and Kenya); (3) awareness, practice and protection of human rights (Kenya, Nigeria, Rwanda); (4) women's empowerment (Nigeria, Malawi, Tanzania); and (5) anti-corruption efforts (Benin, Madagascar).

Human Capacity. Net enrollment rates in countries where USAID has on-going investments are increasing at rates which ensure full primary enrollment by the year 2015. Significantly, USAID support has promoted free universal primary education in Malawi, Mali, Ghana, and Uganda.

Population and Health. Data suggest that the targeted decrease of at least 0.2 births per woman is expected by 1999. Kenya saw dramatic decreases -- total fertility fell from 8.1 in the mid 1980s to 4.7 in 1997 with a rise in modern contraceptive prevalence rate (CPR) from 7.7% in 1984 to 31% in 1997; in Ghana, the CPR doubled from 10.1% in 1993 to 22% in 1997. Child mortality rates are beginning to fall in Africa, but by less than in other continents. Major contributors to under five mortality (measles, malaria, malnutrition, high birth rates, acute respiratory infections, and diarrheal diseases) are addressed by USAID programs. Nutrition programs have been introduced in Benin, Eritrea, Madagascar, Mali, Senegal, Zambia and Ghana. Vitamin A intake increased and salt iodization was introduced in the Greater Horn region.

Environment. Currently 34 African countries have prepared National Environment Action Plans, with five additional plans in advanced preparation. Primary forest coverage increased by 500,000 hectares in Madagascar. The area under protected or improved management increased by 700,000 hectares in the Congo River Basin, a region critical to mitigating global climatic change and an area of intense preservation efforts by USAID. Finally, South Africa is addressing its greenhouse gas emissions by reassessing its reliance on coal for power generation.

Humanitarian Assistance. USAID contributed to this goal-area by reducing the impact of crises, meeting urgent needs, re-establishing stability, and establishing foundations for sustainable development. Ethiopia saw food security in vulnerable areas accurately measured and mechanisms put in place to respond when the status fell below acceptable standards. In Somalia food and non-food items were distributed through local NGOs in response to drought and floods. Across the continent, Early Warning Systems provided advance notice of weather disruptions. In Sudan the emergency food program, the largest in Africa, targeted relief to over 2.6 million people. In Liberia USAID, with the European Union, implemented a major seeds and tools program to accelerate food crop production. Food production increased to approximately 60% of pre-war levels, compared to 30% in 1996. A USAID primary health services decentralization pilot program in Rwanda provided a model for moving beyond relief to development services in a community with a large number of repatriated refugees.

The FY 2000 Request by Account. Request levels for African programs remain consistent with bureau, Agency, and 150 Account objectives for development assistance. Moreover, the levels reflect increased attention and interest in the use of democracy and governance resources in transition countries as well as bureau and Agency commitment to the agricultural sector in Africa.

USAID requests $745 million in development assistance, $73 million in Economic Support Funds, and $134 million in P.L. 480 Title II resources for FY 2000 programming in Africa. Of development assistance, USAID requests $513 million from the Development Fund for Africa to support activities in economic growth, agriculture, environment, democracy and governance, and population; and $232 million from the Child Survival and Diseases Fund to support activities in child survival, polio, HIV/AIDS, infectious diseases, basic education, and other health expenditures.

FOIA Requests : Privacy Policy : Email This Page Plug-ins : FAQs : Help Desk : Contact Us : Site Map : En Español