战略与国际研究中心-Prosper-Africa-s-Partial-Answer-to-Promoting-US-Trade-and-Investment_14页_714kb

Summary of the President's Advisory Council on Doing Business in Africa Report

Core Content

The President's Advisory Council on Doing Business in Africa (PAC-DBIA), composed of leading U.S. business executives, conducted a comprehensive analysis of the challenges U.S. companies face in approaching, competing, and operating in African markets. The report outlines nine key obstacles, grouped into three categories: Approaching, Competing, and Operating. It highlights the need for U.S. government intervention to support American businesses and enhance U.S. exports to Africa.

Main Viewpoints

The Council identifies that despite the vast potential of the African market, U.S. companies are deterred by several systemic issues. These include:

• Perceived vs. Actual Risk: U.S. companies often overestimate the risks associated with doing business in Africa, including legal, regulatory, and political risks, while the actual risks may be manageable with proper due diligence.
• Underdeveloped Capital Markets: African capital markets lack transparency, depth, and liquidity, making it difficult for U.S. companies to raise capital and for African firms to engage with U.S. businesses.
• Market Size & Demand: While Africa's population is growing rapidly, the lack of consistent economic growth and the complexity of regional economic communities (RECs) make it challenging for U.S. companies to assess and enter markets effectively.
• Whole-of-Government Approaches: Foreign governments, particularly from Asia and Europe, are using coordinated strategies to favor their national champions and state-owned enterprises, creating an uneven playing field.
• Local Content Requirements: These policies, often justified as promoting local industries, impose unnecessary burdens on U.S. companies and increase costs.
• Public Procurement Processes: Procurement is frequently biased toward lowest cost or non-transparent terms, which undermines quality and transparency.
• Lack of Skilled Local Workforce: Despite a young and growing population, Africa lags in developing a skilled workforce aligned with future economic demands.
• Currency Volatility & Access to U.S. Dollars: The fluctuation of African currencies and limited availability of U.S. dollars pose significant financial risks.
• Trade Facilitation & Transportation Infrastructure: Poor infrastructure hampers the efficiency and sustainability of U.S. business operations in Sub-Saharan Africa.

Key Information

Approaching African Markets

• Risk (Perceived vs. Actual):

  • Legal and regulatory risks are often overestimated.
  • Political risk is less severe than perceived, with many African countries having democratic electoral processes.
  • Headline risks such as anti-money laundering violations and OFAC sanctions are significant but manageable with proper compliance.
  • Foreign exchange risk is a major concern, with 90% of CEOs expressing concern about currency movements.

• Underdeveloped Capital Markets:

  • High interest rates and limited financial transparency hinder investment.
  • Many African countries lack mature bond markets and benchmark yield curves.
  • Financial infrastructure is outdated and fragmented, limiting the adoption of new technologies.

• Market Size & Demand:

  • Africa has over 1 billion potential consumers, projected to grow to 2.3 billion by 2050.
  • Market diversity and lack of a continental free trade agreement complicate entry strategies.
  • U.S. companies are increasingly competing with Chinese and Indian firms that are also investing in Africa.

Competing in African Markets

• Whole-of-Government Approaches:

  • Foreign governments are using coordinated strategies to support their companies.
  • This includes trade missions, advocacy, and shaping regulations to favor their national champions.

• Local Content Requirements:

  • These policies require local employment, joint ventures, and procurement from local suppliers.
  • They increase costs and reduce competitiveness for U.S. firms.
  • According to the WTO, such measures are nearly twice as trade-restrictive as tariffs.

• Public Procurement Process & Specifications:

  • Procurement is often biased toward lowest cost or non-transparent terms, leading to sub-optimal outcomes.
  • U.S. companies advocate for Best Value procurement, which emphasizes quality, expertise, and long-term benefits.

Operating in African Markets

• Lack of Skilled Local Workforce:

  • Despite a young population, only 55% of human capital potential is being utilized.
  • Educational systems are not aligned with future economic needs, especially in healthcare, ICT, and STEM.
  • U.S. companies are often outpaced by foreign competitors in workforce development.

• Currency Volatility & Access to U.S. Dollars:

  • African currencies are volatile, and access to U.S. dollars is limited.
  • This reduces the competitiveness of U.S. exports and increases financial risk.

• Trade Facilitation & Transportation Infrastructure:

  • Poor infrastructure hampers trade and operational efficiency.
  • Investments in infrastructure are critical for long-term business sustainability.

Conclusion

The PAC-DBIA report underscores the importance of addressing these systemic challenges to enable U.S. companies to fully capitalize on Africa's growing market. It recommends that the U.S. government focus on these issues to improve the business environment and increase U.S. exports to the region. The Council plans to conduct a fact-finding trip to Africa in 2018 to develop targeted recommendations and further analyze opportunities.