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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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