Founder of the Clinton Foundation and 42nd President of the US Bill Clinton (left), CEO of the Shanduka Group Phuti Mahanyele (second left), CEO of General Electric Jeff Immelt (third left), President and CEO, Wal-Mart Stores, Inc Doug McMillon (second right) and President, Chairman & CEO, The Dow Chemical Company Andrew N Liveris (right) listen as President and CEO of Dangote Group Aliko Dangote (third right) responds to a question during a session of the US-Africa Business Forum in Washington, DC, yesterday.
US and African companies and the World Bank yesterday pledged more than $17bn in investments in construction, energy and information technology projects in Africa to showcase US economic interest in the fast-growing region.
Business leaders told the US-Africa Business Forum they wanted to seize opportunities in Africa, home to six of the world’s 10 fastest-growing economies, although some said they may be late to the party.
“We gave it to the Europeans first and to the Chinese later, but today it’s wide open for us,” said General Electric Co Chief Executive Jeff Immelt, who on Monday announced $2bn to boost infrastructure, worker skills and access to energy.
The forum, part of a three-day summit in Washington, has allowed dozens of African heads of state to hobnob with US and African executives and spotlighted projects to improve infrastructure, finance, supply chains and energy security as US companies look for new markets and sources of profit.
Dangote Group President Aliko Dangote signed an agreement to jointly invest $5bn in energy projects in sub-Saharan Africa with Blackstone Group funds, saying nothing works if there is no power.
The group counts cement making, flour milling and sugar refining among its activities. Dangote also called for the US 0Export-Import Bank to remain open, praising its support for African companies buying US goods.
The World Bank, which committed $5bn to support electricity generation, estimates one in three Africans, or 600mn people, lack access to electricity despite rapid economic growth expected to top 5% in 2015 and 2016.
More than 90 US companies are slated to participate including Chevron Corp, Citigroup Inc, Ford Motor Co, Lockheed Martin Corp, Marriott International Inc and Morgan Stanley.
Africa is expected to have a larger work force than China or India by 2040 and boasts the world’s fastest-growing middle class, supporting demand for consumable goods.
The Coca-Cola Company said it would invest $5bn with African bottling partners in new manufacturing lines over six years and IBM CEO Ginni Rometty said the IT giant would plow more than $2bn into the region over seven years.
Wal-Mart Stores Inc CEO Doug McMillon said the retailer had faith that regional governments would work to ensure a secure business environment and the rule of law.
The firm’s $2.6bn investment in the region in 2011, when it bought a majority stake in local Massmart Holdings Ltd , was “just the beginning,” he said.
Wal-Mart believes “the whole region, not just South Africa, but sub-Saharan Africa, including Nigeria and Kenya and so many countries around the continent, are going to do the right things to create the right rules, create transparency, some of those infrastructure investments so that the whole thing works.”
US President Barack Obama will take part in a discussion with corporate chief executives and government leaders at the event, also attended by US Commerce Secretary Penny Pritzker as well as former President Bill Clinton and former New York Mayor Michael Bloomberg.
“These deals and investments demonstrate that the time is ripe to work together as partners, in a spirit of mutual understanding and respect - to raise living standards in all of our nations and to address the challenges that impede our ability to develop closer economic bonds,” Pritzker said.
African telecoms billionaire Mo Ibrahim encouraged US businesses to invest in Africa and make money, but also said they should “pay their taxes.”