US Says Ready To Aid Crisis-Hit Africa, But Seeking Progress
By Maya Jackson Randall, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- A top U.S. Treasury official Wednesday said the U.S.
is prepared to provide "substantial resources" to Africa but added that Africa
also needs to take some steps on its own to address significant infrastructure
and agriculture challenges.
"The U.S. stands ready to commit substantial resources and technical
assistance," said Deputy Treasury Secretary Neal Wolin in prepared remarks to
the Corporate Council on Africa's U.S.-Africa Business Summit. "But we look to
Africa to lead the way."
Some of Africa's largest economies - such as South Africa, Nigeria and Angola
- have been hit hard by the global financial crisis. Fuel and food prices were
already soaring before the financial crisis. Since the turmoil in the global
economy, growth rates in African nations have fallen along with demand for
African exports and the levels of foreign direct investment. Wolin said capital
inflows into Africa this year are expected to be just half of their 2007 levels.
Still, Africa "appears to be turning the corner," said Wolin. By loosening
monetary and fiscal policy to combat the crisis, African governments have taken
steps that should facilitate recovery and lead to a rebound in African growth,
he said. He added that the International Monetary Fund projects a 4.1% Gross
Domestic Product growth rate for sub-Saharan Africa in 2010.
At the same time, more progress is needed, Wolin said. Africa, he said, has
the lowest access to electricity of any region in the world, and the issue has
proven to be an obstacle for investors as well as a humanitarian concern.
Recently, a team of Treasury staffers visited a medical facility in Kenya and
found that a lack of electricity prevented the facility from helping patients at
night, he noted.
Wolin said the U.S. stands ready to help African nations boost power
generation and overcome agricultural challenges. He pointed out that the Obama
administration has already pledged to double U.S. foreign assistance globally
over the next several years.
However, the U.S. is looking to African officials to commit to actions that
would stimulate private-sector investment.
"We take the idea of partnership seriously," said Wolin.
-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255, maya.jackson-
randall@dowjones.com
(END) Dow Jones Newswires
09-30-091004ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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