U.S. ASSISTANCE AND DEBT RELIEF IN SUB-SAHARAN AFRICA

The United States is third among bilateral donors to Sub-Saharan Africa, behind France and Japan. The United States is a leading bilateral donor to Ethiopia, Angola, Liberia, South Africa and Somalia, among others. Reductions in overall U.S. foreign aid in recent years disguise the Administration's success in fending off worse cuts and increasing the percentage of aid to Africa.

The U.S. Agency for International Development (USAID) is the principle conduit for long-term development assistance, with programs in health, education, economic growth, population, democracy, environment and expanded efforts in crisis prevention. Appropriations for Africa in Fiscal Year (FY) 1998 are $700 million, up 5 percent from FY 1997. USAID's regional programs include the Initiative for Southern Africa, which provides $300 million over five years to strengthen democracy, natural resources and infrastructure and boost U.S. private sector links. The President's Greater Horn of Africa Initiative supports conflict prevention and food security objectives in East Africa.

U.S. humanitarian relief for Africa includes PL-480 food grants and refugee and disaster assistance. In FY 1996, the United States provided about $760 million in emergency aid to Africa through these accounts, almost double what it was 10 years ago. Military aid, Economic Support Funds and African Development Foundation projects augment these building blocks of U.S. bilateral aid. In FY 1998, the United States is providing $1 billion to the International Development Association of the World Bank, which consistently lends half of its funding to Africa on highly concessional terms. In addition, countless U.S.-based, non-governmental organizations use funds from donor countries and private sources to assist Africa.

The United States provides debt relief through the Paris Club of creditor nations to support economic reform in African countries. About one-third of Sub-Saharan Africa's long-term debt is owed to Paris Club and other bilateral creditors. The United States has committed to forgive $250 million in official non-concessional debt owed by 10 African countries under the Paris Club "Naples" terms. Outside the Paris Club, the United States has forgiven more than $1.2 billion in official bilateral debt owed by 20 of Africa's poorest countries, including Senegal and Uganda. Under the President's Partnership for Economic Growth and Opportunity in Africa, the Administration is seeking appropriations to extinguish remaining bilateral concessional debt owed by African countries that undertake aggressive efforts to reform their economies and open their markets.

The United States is working closely with other bilateral and multilateral creditors on an initiative to provide extraordinary relief to heavily indebted poor countries (HIPC). For these countries, most of which are in Africa, concessional relief by the Paris Club alone will not be enough to make debt burdens sustainable.

Uganda will be the first country to receive HIPC debt relief -- a package worth $700 million in nominal terms -- in April 1998. Burkina Faso also has qualified for HIPC relief worth $200 million, to be finalized in April 2000. HIPC eligibility decisions are pending for Mozambique and Cote d'Ivoire, among others.