New US initiative for Africa— To boost capital markets

Story: Boahene Asamoah
THE President of the United States of America (USA), Mr George W. Bush Jnr., has announced a new initiative to support the development of capital markets in Africa.
The African Financial Sector Initiative is a policy to provide technical assistance and help mobilise billions of dollars from US private funds for investments in capital markets across Africa.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, President Bush stated that the initiative would help African countries to access private equity through mutual funds to help boost investments on the continent.
“The United States of America is committed to helping Africa,” he said, adding that initiatives such as AGOA and the Millennium Challenge Accounts (MCA) were aimed at promoting trade and investments in Africa.
President Bush said "the success of AGOA is proving that open trade and international investment are the surest and fastest ways for Africa to make progress" and expressed how proud he was last year to sign into law an extension of benefits of the AGOA legislation, which he called a "vital programme".
“This is a hopeful moment in the history of Africa; the governments of many African nations are being transformed. AGOA is getting results and political reforms in Africa have inspired confidence among American investors,” the US President said.
President Bush noted that last year U.S. exports to sub-Saharan Africa increased 25 by per cent and America's imports from AGOA eligible countries rose by 88 per cent.
"I am confident that your efforts will lead to greater interest and investment in AGOA nations," he told the gathering.
He said discussions at the AGOA forum were vital to further expand and diversify trade so that economic growth could be sustained.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa. The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries.
AGOA rewards reforming countries with preferences that have been proven to help reduce barriers to trade, increase exports, create jobs, and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.