April
2009
SPOTLIGHT
President’s
Message
A political coup d’état, such
as occurred in recent months
in Guinea, Mauritania, Guinea-
Bissau and Madagascar, is
not simply an undemocratic
change of government. First,
it is worth remembering
that only four of Africa’s 53
countries are affected, so we
should not interpret this as
CCA Issues Policy
a trend back to authoritarian
rule in Africa. Nevertheless, industries; finance; healthcare; infrastructure;
these coups represent more
than just the theft of citizens’ Recommendations security; trade; and tourism. The
recommendations included the following: 1. To
rights to have a voice in their
own governance. They are, in for Obama strengthen public-private sector partnerships;
make technical assistance and capacity
reality, tantamount to economic
tsunamis, the costs of which Administration building a key component of all U.S. programs
in Africa; 2. Expand the African Growth and
are enormous. Hundreds of
very worthwhile development
projects affecting millions of
C CA has issued a series of bold
recommendations to the Obama
administration on future U.S. policy toward
Opportunity Act (AGOA) to include additional
product coverage, and provide infrastructure
support to AGOA beneficiaries to improve
lives are now at stake. To get Africa. The recommendations were presented capacity to produce a broader array of AGOA
a better appreciation for the by CCA Chairman Jeffrey Sturchio during –eligible products; 3. To increase capital flows
business costs of a coup, let CCA’s Annual Membership Meeting on into Africa, replicate trade finance programs
us look at the likely impact March 4. such as the U.S. Export-Import Bank’s Nigeria
of the Madagascar coup on The recommendations are the result Medium Term Insurance and Guarantee
international assistance alone. of a three month process that involved Facility for other African countries; 4. In the
As of April 2008, there were representatives of more than 100 CCA energy sector, promote U.S. expertise to
no fewer than 17 World Bank- member companies. The report spans leapfrog technology of green energy such
supported projects underway topics from security to tourism and finance as increasing support for rural electrification
in Madagascar. The committed to agribusiness. CCA President and CEO projects; 5. Promote increased voluntary
value was over $1 billion. Stephen Hayes described the effort as transparency for extractive industries.
The World Bank will surely unprecedented in CCA’s 16-year history. CCA members, through the policy
reevaluate these projects in Hayes stated, “The fact that our companies recommendations, have proactively weighed
face of an unpredictable new made this their priority over three months in on U.S.-Africa policy by identifying key
leadership. clearly indicates the importance of Africa to our issues and making recommendations
In 2008, the International economy.” on how to strengthen American private
Monetary Fund distributed Addressed in the report were cross- sector engagement with Africa. The report
$37 million to Madagascar. cutting issues that emphasize effective recommends actions for the U.S. government
It seems unlikely that the U.S. government policies and programs to support American private sector investment
distribution will be maintained that support economic interests across and for African governments to create friendly
for 2009. key business sectors in Africa, including: investment climates. To view the full report,
The net official development agribusiness; electrical power; extractive click HERE.
Continued on page 6. The monthly newsletter of The Corporate Council on Africa

CCA BOARD OF Africa Policy Takes Center
DIRECTORS Stage at Annual Meeting
C
Tom Barry CA’s policy recommendations for the could play a critical role in helping the U.S.
Zephyr Investment Fund
Jodi Bond
Obama administration (see headline economy recover from its current crisis. A
Motorola article) were the centerpiece for the 2009 panel of Africa experts – Callisto Madavo,
Mark Chiaviello Annual Membership Meeting, which took visiting professor to the African Studies
Standard Bank Group place in Washington, D.C., on March 4. More Program at Georgetown University; Bobby
Amb. Frances Cook than 130 CCA members and representatives Pittman, National Security Council Africa
The Ballard Group
of the U.S. government, African diplomatic advisor to President George W. Bush; and
Terry Dunmire
Mike Fry corps and the NGO community turned out Jennifer Cooke, Africa Program director
ExxonMobil for the meeting. CCA Chairman at the Center for Strategic and
Thomas Gibian Jeffrey Sturchio and President “Africa is a International Studies – responded
EMP Investment Fund Stephen Hayes provided remarks growing and to the policy recommendations
William Guyton about CCA’s activities during vibrant source of and answered questions from
World Cocoa Foundation
2008 and priorities for 2009. energy, export CCA members. The panelists
Stephen Hayes*
CCA President & CEO Sturchio explained that the praised the comprehensive nature
recommendations underscore opportunities of the report and encouraged CCA
Lionel Johnson*
CCA Treasurer CCA’s desire for a stronger and international to pursue the recommendations
Barbara Keating relationship between the United partnerships.” by meeting with the U.S.
Computer-Frontiers States and the nations of Africa. government and representatives
Russell King
Freeport-McMoRan Copper & Gold
He added, “Africa is a growing and vibrant of African governments. CCA also used the
Inc source of energy, export opportunities and Annual Membership Meeting to debut the
George Kirkland international partnerships.” Hayes noted 2008 Africa Trade and Investment Report,
Chevron that CCA organized more than 100 Africa- available to members online at africacncl.
Desi Lopez-Fafie relevant events in 2008 and participated in org The lunchtime gathering was preceded
Oracle
another 300 events on behalf of members. by a meeting of CCA’s Board of Directors
Leslie Mancuso
JHPIEGO According to Hayes, opportunities for and Board Executive Committee.
Amb. Tom McDonald American investment and trade with Africa
Baker & Hostetler LLP
John Miller
Raytheon
Jeff Morgan
Mars, Inc
Mima Nedelcovych
Africa Global
George Otchere
SAIC
Heather Pederson
Boeing
J.B. Penn
John Deere
Tim Richards
General Electric
Paul Ryberg
Africa Coalition for Trade
Thad Simons
Novus International, Inc
William Soule
Lockheed Martin
Will Stephens
Johnson & Johnson Corp
Jeffrey Sturchio
Merck (rt.), CCA Chairman
Maurice Tempelsman*
Lazare Kaplan International Inc
Haskell Ward
Global Alumina
Gretchen Watkins
Marathon Oil Company
Diane Willkens
Development Finance Int., Inc
*Ex Officio
The AFRICA
2 e JOURNAL
APRIL 2009

Developing Africa’s Power Sector
by Peter Abe
A ccording to the U.S. Department
of Energy, demand for electricity in
Africa is expected to grow by more than
power sector in Africa is the continued use
of government subsidies on inputs, such as
fuel, and on the electricity that is produced.
50 percent over the next 20 years. Africa These subsidies push prices down artificially James Jamerson, Lockheed Martin
uses a variety of fuels to produce electricity, and make it difficult for investors to recoup vice president for int’l business
with coal, natural gas and renewables their investments. development, meets Nigerian Foreign
representing the more than 70 percent of This growth offers an opportunity for Minister Ojo Maduekwe.
the total. Today natural gas represents 22 different fuel sources to play a larger role Senior Officials from
percent of total generation of electricity, in Africa’s power sector. Biofuels and
but by 2030 this number will expand to 50 renewable sources of energy are integral
Mozambique and
percent. This growth is going to come from to bringing Africa’s power sector into the Nigeria Visit CCA
harnessing the large amount of natural gas 21st century. By developing a robust biofuel Nigeria’s Foreign Minister
that is currently being vented or flared by sector, Africa can reduce its dependence on Ojo Maduekwe was the
gas producing nations across the continent. imported fuels, saving much needed foreign featured speaker at CCA’s
Capturing and utilizing this resource has in reserves for investment in other sectors, Merck Monthly Breakfast
the past been seen as unprofitable, but with while at the same time strengthening the Series on March 23. During
a growing African middle class, this attitude vital agribusiness sector upon which so the meeting with CCA
is showing signs of changing. many Africans rely. More than 90 percent members, Maduekwe
A perception that Africans are not able or of rural Africans live without access to a stressed the importance of
willing to pay market prices for electricity is national electric grid. Distributed generation the U.S.-Nigeria relationship
clearly false. This is evidenced by the fact using renewable sources of energy such and observed that the U.S.
that many African businesses and individuals as wind, hydro, and solar is sure to play a should avoid protectionist
own diesel generators that produce larger and larger role in the total generation policies in response to the
electricity at as much as three times the cost capacity of the continent. global financial crisis. He
of electricity purchased from a central power Peter Abe is program manager for outlined measures the
station. An obstacle to developing the Agribusiness and Energy at CCA. Nigerian government will take
to address the financial crisis,
and touched on a number
Security Expert Briefs CCA Members of issues in the West Africa
region.
by Vivienne Sequeira
Mozambique’s Minister of
A t its March meeting, CCA’s Security these weapons. He told CCA members that
Working Group welcomed David more recent discussions have addressed
Hamon of Analytic Services, Inc. (ANSER) the potential of other African countries to
Industry and Trade Antonio
Fernando met with CCA
members on March 25 at
for a briefing on his nonprofit company’s harvest harmful biological agents that could the Office of the U.S. Trade
report, “Africa Security be used in WMDs, and to hide and Representative (USTR) to
Challenges: Now and Over CCA’s Security transport other bioweapons and discuss trade relations with
the Horizon.” Hamon focused Working Group illegal pharmaceuticals. Given the U.S., and investment
on how to address security ensures that relative weaknesses in border opportunities, especially in
challenges and threats through members have a and other security controls in agribusiness, for American
various forms of engagement, Africa, these weapons represent companies. Fernando was
including the Africa Command voice in timely and a serious potential threat. Hamon accompanied by business
(AFRICOM). important policy invited CCA members to provide leaders who answered
Hamon is currently seconded dialogues. feedback to DTRA’s report, which questions from CCA members
to the Defense Department’s is available by clicking HERE. about doing business in
Defense Threat Reduction Agency (DTRA), The Security Working Group ensures that Mozambique. On March
which supports AFRICOM through research CCA members have a voice in timely and 31 and in partnership
efforts. He indicated that his team has important policy dialogues. The group meets with the U.S. Chamber of
focused on the command’s long term goals monthly over breakfast to allow members to Commerce and USTR, CCA
and future impact. exchange information and ideas on the topic hosted Nigeria’s Minister of
DTRA’s recent work examines the long- of security in Africa. Commerce Achike Udenwa.
term security challenges that AFRICOM Vivienne Sequeira is director of the The meeting focused
should consider. According to Hamon, past Infrastructure Program at CCA. on increasing trade and
discussions about small arms and weapons investment relations between
of mass destruction in Africa have focused the U.S. and Nigeria.
on South Africa’s ability to manufacture
The AFRICA
The AFRICA
3 e JOURNAL
e JOURNAL
APRIL 2009
APRIL 2009

Africa Responds to Global Financial Crisis
by Mfundo Hlatshwayo
T he global financial crisis that has crippled economic
growth in advanced economies is affecting Africa’s
economies with greater severity than previously projected.
spending by expanding old-age pensions.
The continent’s second largest economy, Egypt, has also
been affected by the global economic downturn. Egypt’s
While Africa’s economies have not been as sharply tourism sector, which represents nearly seven percent
impacted by the credit crisis as developed economies, of the country’s gross domestic product (GDP), fell 30
they are nonetheless vulnerable in part due to their percent in January 2009 compared to the same period in
greater reliance on foreign direct investment, commodity 2008. The Egyptian government plans to increase public
exports, tourism and remittances. Recognizing the depth spending to contain the fallout from the global financial
of this crisis, Africa has begun taking action by discussing crisis. Hotels will be exempt from paying contributions to
strategies for responding to the financial crisis. There have the country’s tourism promotion authority, and fees paid
been meetings by the African Union’s Commission for by charter flights will be significantly reduced. Moreover,
Economic Affairs in October 2008 and as well a meeting the government plans on boosting its energy subsidies,
by African finance ministers and central bank governors in slashing the price for natural gas from $3 per British
Tunis in November 2008. thermal unit to $1.70 btu for certain industries.
More specifically, individual African countries have Nigeria, the continent’s third largest economy, has
developed their own plans of action to respond to the perhaps been the quickest to recognize the need to shore
global financial crisis. The continent’s largest economy, up its economy from the global financial crisis. Constituting
South Africa, has been the most impacted in the region 80 percent of the government’s revenue, Nigeria’s energy
by the global financial fallout due to its relatively greater exports have seen a sharp decline. This decline is reflected
integration to the global economy. For example, more in the depreciation of the naira, which has fallen by 20
than 36,500 jobs have been lost in the automotive and percent since December 2008. To stabilize the naira,
mining sector since July 2008. South African President the Nigerian Central Bank is considering the creation of
Kgalema Motlanthe stated that the country would combat a joint public-private asset management company to buy
the effects of the global financial crisis through several up banks’ bad debts. The country moved also recently to
measures. These include maintaining its massive public re-establish currency controls.
investment spending of $70 billion on infrastructure and This article was recently featured in CCA’s Africa
other projects over the next three years; boosting public Business Report, which is produced twice monthly and is
sector job creation in areas such as health, social work, available to members online by clicking HERE.
education and law enforcement; mitigating unnecessary Mfundo Hlatshwayo is research analyst at CCA.
closure of production lines or plant; and reinforcing social
OPIC Presents First
Partnership Award to CCA
D r. Lawrence Spinelli, acting president of the
Overseas Private Investment Corporation (OPIC),
presented CCA with the inaugural OPIC Partnership
Award for its longstanding and mutual effort to facilitate
U.S. private sector investment in Africa.
The OPIC Partnership Award recognizes organizations From left to right: CCA President and CEO Stephen Hayes, Acting
for cooperating with OPIC to encourage American President of OPIC Dr. Lawrence Spinelli, and CCA Chairman Dr. Jeffrey
investment in emerging markets, by disseminating Sturchio.
information about OPIC products and services to their but a reinforcement of it,” Spinelli concluded. “OPIC looks
constituencies. forward with great anticipation to continuing its partnership
“OPIC is pleased to make The Corporate Council on to help increase U.S. private sector investment in Africa for
Africa the inaugural recipient of its Partnership Award,” many years to come.”
Spinelli said upon presenting the award to CCA President CCA President Stephen Hayes said, “The Corporate
Stephen Hayes at the CCA annual meeting. “Creating Council on Africa is honored to receive the first OPIC
opportunity and hope in Africa through private sector Partnership Award. Business linkages generated by the
partnerships is CCA’s main objective and it is an important partnership between CCA and OPIC have resulted in a
part of OPIC’s mission. That’s why our two organizations significant number of investment opportunities for CCA
have worked so closely together for many years and that’s members, which in turn have created economic growth
why OPIC wanted to express its gratitude for all that CCA throughout Africa. We look forward to continuing our close
has done to fulfill this goal.” partnership with OPIC, to the benefit of entrepreneurs
“What is most pleasing about bestowing this award across Africa.”
upon CCA is that it is not the culmination of a relationship,
The AFRICA
4 e JOURNAL
APRIL 2009
FEBRUARY 2009

Membership Profile
Lockheed Martin Connects with Africa
L ockheed Martin is a leading provider of global
technology solutions. Principally engaged in the
research, design, development, manufacture, integration
and sustainment of advanced technology systems,
products and services, the corporation employs 146,000
people worldwide.
Lockheed Martin consists of four main operating units: capability includes aviation management and support,
Aeronautics, Electronic Systems, Information Systems and communications platform integration, commercial IT
Global Services, and Space Systems. The corporation solutions, medical operations, simulation and training, and
has tremendous with operating experience within all 50 energy generation programs.
states of the United States and over 75 countries, including RSO programs in Africa focus on such activities as
16 African nations. Lockheed Martin tailors its solutions civilian police training, advising on judicial reform programs,
to the local environment, using the expertise of in country constructing barracks and base camps, training and
personnel to work effectively where ever we go. equipping military forces, and providing operations and
Its operating unit, Readiness & Stability Operations, is maintenance at military installations.
one of the corporation’s acknowledged experts in logistics, Lockheed Martin customers range from the United States
with extensive capabilities in disaster and emergency Department of Defense and all of the military services,
preparedness contingency response, mission operations the Department of State, international organizations, civil
support and readiness, peacekeeping assistance, supply government agencies both domestically and abroad, and
chain management, and technology services. Additional multiple allied governments.
Lockheed Martin’s presence in Africa
Lockheed Martin has had a business presence in Africa court administration, budgeting and provide support on
for more than five decades, employing 3,000 people in 16 a wide range of justice-related topics. We help train the
countries on the continent. Liberian National Police, aiding them in implementing the
There, we focus on three main categories of service: disarmament, demobilization and reintegration program,
emergency relief and conflict resolution, reconstruction and monitoring human rights violations, and providing critical
development, and capacity enhancement. Within these training and capacity building. Finally we provide
categories, our capabilities span a varied range – from equipment, training and logistics for the officers of the
humanitarian assistance to logistics support to construction Armed Forces of Liberia and have performed construction
to air traffic control. and refurbishment of the main military barracks in
Our customers are host country governments, the Monrovia.
U.S. Department of State and multinational bodies. Their Djibouti: Lockheed Martin is managing the full range of
missions hinge on promoting a stable and secure African base operations support services for Camp Lemonier in
environment, whether that’s achieved via strengthening Djibouti, the home of the Combined Joint Task Force Horn
crisis response capacity, increasing healthcare education of Africa. We provide the U.S. Navy with support ranging
and access opportunities for the people, or building critical from airfield operations, vehicle maintenance and fire
infrastructure. and emergency services to such basics as food, fuel, and
Two specific examples of our work are: laundry services. Over a thousand American and foreign
Liberia: Lockheed Martin manages several critical national employees ensure that the Task Force has the
programs in support of the State Department in Liberia. flexible logistics help it needs to carry out its missions in
We provide U.S.-led teams of legal advisors to assist one of the more challenging parts of the world.
the Liberian Justice Ministry manage prosecutions,
Key outcomes that companies such as Lockheed Martin should expect in Africa
As African countries continue down the path of increasing with the continent. There is certainly much work to be done
stability and development, our perspective is that only with and Lockheed Martin’s technology solutions could certainly
a sustained and committed presence can companies grow fit Africa’s security, energy and infrastructure needs.
Lockheed Martin to sponsor, and participate in, CCA’s upcoming 7th Biennial U.S.-Africa Business Summit
It’s our intention to strengthen our relationship offers the opportunity to connect with key players in the
and engagement with African nations – to build on region, to understand the needs, concerns and emerging
past successes and strengthen cooperative working issues of our customers, and to share the innovative
relationships among the public sector, private sector and solutions that are Lockheed Martin’s hallmark.
civil society. The upcoming U.S.-Africa Business Summit
The AFRICA
5 e JOURNAL
APRIL 2009

Transitions
CCA Staff Profile
A sfaw Alemayehu,
CCA’s membership
director, recently was R ashida
Petersen
unit; the Commercial Service Strategic
Planning Office and an assignment with the
named executive director of joins CCA as the Trade Development Unit working to support
the American Chamber of new membership public/private partnerships on the Market
Commerce in Addis Ababa, and marketing Development Cooperator Program, a grant
Ethiopia. He is succeeded at director. She program that supports through federal
CCA by Rashida Petersen. succeeds Asfaw assistance to non-profit export multipliers
Duke University’s Global Alemayehu, such as states, trade associations,
Health Initiative will soon who becomes chambers of commerce, world trade centers
benefit from the talents of executive director and other business development groups.
Caroline Hope Griffith, of the American She also served as acting senior commercial
who had served as CCA Chamber of officer with the African Development Bank
HIV/AIDS & Health Initiative Commerce in Addis Ababa, Ethiopia. Ms. in Tunis, Tunisia. Most recently, she served
senior program manager. Petersen will be working on retaining as senior business development advisor for
She joins the Duke program and recruiting CCA members as well CCA Member GoodWorks International.
as associate in research and as formulating marketing strategy and Prior to her service at the Department
will develop its private sector implementation for events, and branding of Commerce, Ms. Petersen worked in
task force. Marie Baptiste, management. She formerly worked television production and at a minority-
program manager for CCA’s for over five years at the Department of owned civil engineering firm.
HIV/AIDS & Health Initiative, Commerce, her assignments included Ms. Petersen holds an International
is the new administrative serving as the East Africa desk officer Business degree from the University of
officer for the Africare Angola within the Market Access and Compliance Maryland.
Country Office. On March
4, Earl Young of JR Boulle President’s Message Continued from front page.
& Company completed his assistance to Madagascar in 2007 was world awarded a compact by the Millennium
two-year term on the CCA $892 million, or 12 percent of the Malagasy Challenge Corporation (MCC). About half
Board of Directors. On April gross national product. One assumes that of the funds allotted for Madagascar under
1, CCA Intern Ken Simons is much of the ODA will be stopped until the the compact remain to be disbursed. MCC
promoted to program analyst country’s political future is much more stable announced after the coup that it was placing
for agribusiness and energy. and clear. the Madagascar program on hold. There will
Andrea Todd, formerly The Madagascar Action Plan, a five-year be no further disbursement as democracy is
of Ogilvy Public Relations development plan designed by a cross a requirement under the MCC compact. It is
Worldwide and the Council section of Madagascar public and private equally certain that no further compact will
on Foundations, joins CCA officials, is now cancelled. It will take at be signed with Madagascar.
on April 7 as communications least another year to devise new economic There are much more stark figures
manager. development plans, possibly longer. Thus, to show the true cost of the coup to
the coup squanders the time and energy Madagascar. None, however, is perhaps
About Us of Malagasy citizens who developed a plan
to improve the standards of living in their
more disheartening and self-defeating
than the cancellation of a widely praised
T he Corporate Council
on Africa (CCA),
established in 1993, is at the
country.
In 2007, new investment in Madagascar
totaled $777.1 million, or nearly 11 percent
national plan to ensure that every child
in Madagascar could go to school. A very
regrettable example, it seems, of out with
forefront of strengthening and of the gross domestic product. Investment the old, in with the new.
facilitating the commercial doubled in 2007 over the previous year. In Some projects might continue. The drama
relationship between the 2008, FDI inflows were estimated to have in Madagascar, after all, is still being played
United States and the grown to $1.35 billion. Following the coup, out. The African Union and the Southern
African continent. CCA works many businesses are understandably African Development Community, both
closely with governments, reassessing their investment plans. of which have suspended Madagascar,
multilateral groups and In 2007, total exports from Madagascar merit praise for their calls for a return to
business to improve the to the U.S. were valued at $324 million. constitutional order in the country. Now, it
African continent’s trade and Madagascar risks losing AGOA status, is time for the international community to
investment climate, and to under which most other exports to the U.S. follow African leaders and to exercise its
raise the profile of Africa in qualified. Fifty thousand jobs in the textile considerable influence so that legitimacy
the US business community. sector in Madagascar could be endangered. and stability return to Madagascar, and to
If elections are held within six months, the underscore emphatically that coups are bad
U.S. government could decide at the end for business – and for people – wherever
For more information about
The Africa e-Journal, please contact of this year to continue AGOA benefits in they occur.
Tim McCoy at 2010.Madagascar was the first nation in the
tmccoy@africacncl.org. The AFRICA
e JOURNAL
6 APRIL 2009