PRESIDENTS PARTNERSHIP FOR ECONOMIC GROWTH AND OPPORTUNITY AND
AFRICAN GROWTH AND
President Clinton called for expeditious passage of the African Growth
Act (Act) during the State of the Union Address. The Act complements the
Partnership for Economic Growth and Opportunity in Africa. The goals of
and Act are to help African countries reform their economies, spur
economic growth, move
away from dependence on foreign assistance, and establish new business
ties with U.S.
All 42 African countries eligible for the U.S. Generalized System of
(GSP) can participate in the Partnerships basic program (Level 1).
(Eritrea is in
the GSP application process; Nigeria, Gabon, Sudan, Mauritania and
Liberia are not yet GSP
eligible.) Enhanced programs (Level 2) provide additional economic
incentives to countries
that have outstanding economic reform records.
Level 1 programs include: a) renewal of the GSP law which provides
access to Least Developed Countries including 29 African countries; b)
two large investment funds ($150 million and $500 million) that are
guaranteed by the
Overseas Private Investment Corporation; c) greater attention to African
investment issues through appointment of an Assistant United States Trade
for Africa and a senior advisor for African programs at the Export Import
Bank; and d)
USAID programs to strengthen U.S. and African business organizations and
economic integration in Southern Africa.
Level 2 programs include: a) annual Cabinet-level Economic Cooperation
future extinction of concessional bilateral debt for the poorest Level 2
USAID programs for technical assistance, economic policy reform, and
liberalization; and d) duty-free, quota-free entry under the GSP program
of textile and
other sensitive products currently excluded from the program.
Under the Act and Partnership, Free Trade Agreements (FTA) may be
countries with open market economies.