109th CONGRESS
1st Session
H. R. 4319
To provide assistance for small and medium enterprises in sub-Saharan
African countries, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
November 15, 2005
Mr. LANTOS (for himself and Mr. SMITH of New Jersey) introduced the following
bill; which was referred to the Committee on International Relations, and
in addition to the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To provide assistance for small and medium enterprises in sub-Saharan
African countries, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Assistance for Small and
Medium Enterprises in Sub-Saharan African Countries Act of 2005'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 3. Sense of Congress; declaration of policy.
Sec. 4. Activities of the Overseas Private Investment Corporation to strengthen
financial institutions in sub-Saharan African countries.
Sec. 5. Assistance for small and medium enterprises in sub-Saharan African
countries.
Sec. 6. Actions to improve trade between sub-Saharan African countries
and the United States.
SEC. 2. FINDINGS.
Congress finds the following:
(1) According to the Organization for Economic Co-operation and Development
(OECD), the economies of sub-Saharan African countries have registered
their highest overall growth in eight years--more than five percent in
2004--due to rising global commodity prices, the expansion of production
in oil-producing sub-Saharan African countries, and prudent macro-economic
policies.
(2) While economic liberalization has reduced the involvement of governments
of sub-Saharan African countries in the economic sector, it has not resulted
in improved credit delivery to finance domestic businesses, particularly
small and medium enterprises in sub-Saharan African countries, in the
private sector.
(3) Despite the privatization of over 2,273 businesses in sub-Saharan
African countries and $9.1 billion raised, private sector investment still
lags behind Asia, in large part due to inadequate infrastructure, including
electricity, water, roads, and commerce facilities, and a risk-averse
retail banking sector.
(4) Sub-Saharan Africa countries hold billions of uninvested capital in
central banks and financial holding institutions. In the eight-nation
West African Economic and Monetary Union the amount of excess capital
in the central bank recently peaked at almost $2 billion.
(5) Excess reserves of uninvested capital in sub-Saharan African countries
have often been illicitly diverted or invested in economically inefficient
enterprises and other purposes, often for the benefit of politically-connected
persons or entities.
(6) Nigerian President Olusegun Obasanjo recently estimated that corrupt
leaders of sub-Saharan African countries have stolen at least $140 billion
from their citizens in the four decades since independence. This theft
contributes to the fact that the people of sub-Saharan African countries
owe unsustainably large public and foreign debts, face high rates of extreme
poverty, and have enjoyed little basic economic development.
(7) Increasingly, governments of sub-Saharan African countries are making
concerted efforts to investigate such activities, prosecute corrupt officials,
and recover public funds through the creation of agencies such as the
Economic and Financial Crimes Commission in Nigeria, the Serious Fraud
Office in Ghana, the Federal Ethics and Anticorruption Commission in Ethiopia,
and the Anticorruption Commission in Zambia.
(8) These efforts will require technical assistance and law enforcement
cooperation from the international community, including the United States.
(9) A major challenge for sub-Saharan African countries is to productively
invest their own capital to expand domestic business ownership and create
employment, particularly for youth, in order to promote broad and sustainable
economic growth.
(10) While the microenterprise movement has shown itself to be an important
generator of self-employment, research and experience throughout sub-Saharan
Africa also have proven that small and medium enterprises are the greatest
catalyst for job creation, skills transfer, and wealth creation in sub-Saharan
Africa.
(11) Although small and medium enterprises in sub-Saharan African countries
make up the largest portion of the formal economy in sub-Saharan African
countries, the average annual contribution of investments of such small
and medium enterprises to growth in the gross domestic product of sub-Saharan
African countries by proportion declined from an average of 14 percent
in the 1970s, to 13 percent in the 1980s, and to 12 percent in the first
half of the 1990s, while during the same period, the proportion of gross
domestic product investment by small and medium enterprises in other developing
regions increased.
(12) Investments in small and medium enterprises in sub-Saharan African
countries also have declined, in part because an estimated 37 percent
of personal wealth in sub-Saharan African countries is held in assets
and cash located outside of sub-Saharan African countries, even though
the global region with the highest return on capital investment is sub-Saharan
Africa.
(13) Many retail banks avoid lending to small and medium enterprises in
sub-Saharan African countries or engage in predatory lending practices,
considering such small and medium enterprises as presenting a high credit
default risk and as costly to administer, and instead concentrate on providing
credit to larger local or international firms or on holding high-yield
government bonds.
(14) This approach harms the prospects for sustainable private sector
development by ignoring the necessity of a bottom-up capital formation--a
key factor in creating jobs which is necessary to reduce poverty and income
inequalities.
(15) Governments of sub-Saharan African countries must develop the fiscal
policies, economic institutions, legal frameworks, labor market protections,
commercial infrastructures, and lending practices to create and manage
competitive business environments for investors in small and medium enterprises
in sub-Saharan African countries. Further, small and medium enterprises
in sub-Saharan African countries must acquire the business skills, expertise,
and capital financing necessary to manage successful businesses.
SEC. 3. SENSE OF CONGRESS; DECLARATION OF POLICY.
(a) Sense of Congress- It is the sense of Congress that in an increasingly
competitive global environment driven by transformations in technology,
communications, transportation, finance, production, labor markets, and
markets for goods and services, sub-Saharan African countries should develop
the private sector, particularly small and medium enterprises, and human
capital, goods and services, banking and finance systems, and create markets
to be full participants in the global economy.
(b) Declaration of Policy- It shall be the policy of the Government of the
United States to make available for private sector development in sub-Saharan
African countries professional, technical, and other resources for capacity-building
for finance ministries, central and retail banks, and small and medium enterprises
to promote entrepreneurship, expand the formal sector, and increase trade
under the African Growth and Opportunity Act (19 U.S.C. 3701 et seq.) of
exports from Africa to the United States.
SEC. 4. ACTIVITIES OF THE OVERSEAS PRIVATE INVESTMENT CORPORATION TO STRENGTHEN
FINANCIAL INSTITUTIONS IN SUB-SAHARAN AFRICAN COUNTRIES.
Section 240 of the Foreign Assistance Act of 1961 (22 U.S.C. 2200) is amended
by adding at the end the following:
`(c) Support for Financial Institutions in Sub-Saharan African Countries-
`(1) SUPPORT- The Corporation is commended for its activities in support
of the development of small and medium enterprises, and is encouraged
to exercise its authorities to promote United States investments in financial
institutions that are duly incorporated in sub-Saharan African countries,
to the extent that the purpose of such investments is to expand investment
and lending opportunities to small and medium enterprises in sub-Saharan
African countries that are engaged in domestic commerce in areas that
are responsible for significant job creation.
`(2) CONSIDERATION- In making a determination to provide insurance and
financing to financial institutions referred to in paragraph (1), the
Corporation should take into consideration the extent to which a project
establishes and implements a nondiscrimination in lending policy to prohibit
discrimination based on ethnicity, sex, color, race, religion, physical
disability, marital status, or age, and a policy against predatory lending
practices.
`(3) TECHNICAL ASSISTANCE- In supporting a project referred to in paragraph
(1), the Corporation may provide technical assistance to--
`(A) improve the quality of management of financial institutions referred
to in paragraph (1) to ensure the safety and stability of such institutions;
`(B) create in such financial institutions effective credit risk management
systems to improve the quality of the assets of such institutions and
the ability of such institutions to research and assess the overall
credit risk of critical industries in the domestic economy;
`(C) support effective credit risk management by developing internal
credit rating systems and credit assessment tools that improve the ability
of such financial institutions to evaluate individual credit worthiness
and measure the overall amount of risk posed by the total number of
borrowers; and
`(D) establish comprehensive collateral management programs to control
borrower assets against default and exposure as part of the risk management
process.
`(4) DEFINITIONS- In this subsection:
`(A) SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN AFRICAN COUNTRIES-
The term `small and medium enterprises in sub-Saharan African countries'
has the meaning given the term in section 496A(e)(2) of this Act.
`(B) SUB-SAHARAN AFRICAN COUNTRIES- The term `sub-Saharan African countries'
means the countries specified in section 107 of the African Growth and
Opportunity Act (19 U.S.C. 3706).'.
SEC. 5. ASSISTANCE FOR SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN AFRICAN
COUNTRIES.
(a) In General- Chapter 10 of part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2293 et seq.) is amended by inserting after section 496 the following
new section:
`SEC. 496A. ASSISTANCE FOR SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN
AFRICAN COUNTRIES.
`(a) Authorization- The President, acting through the Administrator of the
United States Agency for International Development, is authorized to provide
assistance, on such terms and conditions as the President may determine,
for small and medium enterprises in sub-Saharan African countries.
`(b) Activities Supported- Assistance provided under subsection (a) shall,
to the maximum extent practicable, be used to carry out the following activities:
`(1) EFFECTIVENESS OF FINANCIAL SECTORS- Activities to improve the effectiveness
of the financial sectors of sub-Saharan African countries to promote increased
business and employment opportunities for small and medium enterprises
in sub-Saharan African countries. Such activities may include providing
technical assistance relating to--
`(A) tax policy and administration;
`(B) government debt issuance and management;
`(C) policies and regulation of financial institutions;
`(D) prevention, detection, and prosecution of financial crimes;
`(F) innovative services and specialized institutions to serve the small
and medium enterprise market; and
`(G) compliance with international financial standards.
`(2) LENDING PROGRAMS OF FINANCIAL INSTITUTIONS- Activities to promote
the establishment of lending programs of financial institutions for small
and medium enterprises in sub-Saharan African countries by--
`(A) improving the quality of management of such financial institutions
to ensure their safety and stability;
`(B) establishing effective credit risk management systems to improve
the quality of the assets of such financial institutions and the ability
of such financial institutions to research and assess overall credit
risk;
`(C) supporting effective credit risk management systems described in
subparagraph (B) by developing internal credit rating systems and credit
assessment tools that improve the ability of such financial institutions
to evaluate individual credit worthiness and measure the overall amount
of risk posed by the total number of borrowers; and
`(D) establishing comprehensive collateral management programs to control
borrower assets against default and exposure as part of the risk management
process.
`(3) TECHNOLOGY AND INFORMATION RESOURCES- Activities to improve the technology
and information resources of financial institutions and small and medium
enterprises in sub-Saharan African countries. Such activities may include--
`(A) developing computer programs and networking capabilities to provide
connectivity between domestic and international banking sectors;
`(B) increasing access by finance ministries and central banks to information
management systems and high-speed Internet connectivity; and
`(C) promoting the development of Internet service providers.
`(4) BUSINESS DEVELOPMENT IN RURAL AND PERI-URBAN AREAS- Activities to
promote the development of small and medium enterprises in sub-Saharan
African countries that are located in rural and peri-urban areas. Such
activities may include--
`(A) carrying out short- and long-term training in entrepreneurship,
such as the `Business Opportunity Centers' program of the United States
Agency for International Development in the Republic of Zimbabwe;
`(B) providing training in entrepreneurship, including basic business
management, accounting, bookkeeping, marketing, risk management, and
computer skills;
`(C) providing assistance to meet international, particularly United
States, quality control standards;
`(D) providing business services on a fee-for-service basis, such as
telephone, fax, email, e-learning, and money transfer services, based
on the cost recovery model of the `Business Opportunity Centers' program
in Zimbabwe;
`(E) carrying out capacity-building activities for microenterprise business
associations and microfinance networks; and
`(F) providing training in internationally recognized labor rights and
core labor standards.
`(5) SMALL BUSINESS DEVELOPMENT IN POST-CONFLICT STATES- Activities to
promote small business development in post-conflict sub-Saharan African
countries. Such activities may include--
`(A) providing rural agriculture entrepreneurship training to aid displaced
persons, particularly youth, with the purpose of helping such persons
return to rural areas and re-engage in agricultural activities;
`(B) adopting more productive and profitable production systems such
as conservation farming technologies, biotechnologies, biosafety technologies,
and increasing the marketability of the surplus production of such systems;
`(C) providing assistance to add commercial value to agricultural goods
and to sell such goods to local and regional markets; and
`(D) encouraging agricultural entrepreneurship and the formation of
cooperatives and marketing associations and providing such associations
with organizational and technical assistance.
`(6) YOUTH ENTREPRENEURSHIP PROGRAMS- Activities to establish youth entrepreneurship
training programs in schools or through community partnerships with business
and youth organizations in sub-Saharan African countries to promote economic
skills, ethics, integrity, and healthy life skills among youth in such
countries. Such activities may include providing assistance through United
States and international youth organizations located in sub-Saharan African
countries and ministries of education, local schools, businesses, and
youth groups to--
`(A) teach basic concepts of business economics and free enterprise
and the relevance of education for such youth to improving the quality
of their lives;
`(B) teach basic concepts of good governance, the rule of law, human
rights, and citizenship as they relate to national development;
`(C) assist youth to make decisions about their educational and professional
future and develop communication skills that are vital to succeed in
the domestic, regional, and international business world;
`(D) develop a specialized curriculum for youth in rural and peri-urban
areas and utilize, whenever possible, business and community volunteers
to deliver such curriculum; and
`(E) organize student-led enterprises.
`(7) INTELLECTUAL PROPERTY RIGHTS PROTECTION- Activities to introduce
and strengthen laws, regulations, and enforcement mechanisms to protect
national and international intellectual property rights and to protect
the people and industries of sub-Saharan African countries against imported
counterfeit consumer and other goods.
`(8) ANTI-CORRUPTION INITIATIVES- Activities that combat corruption, improve
transparency and accountability, and promote other forms of good governance
and management in sub-Saharan African countries. Such activities may include--
`(A) providing technical assistance to governments of sub-Saharan African
countries that are implementing the United Nations Convention against
Corruption, including assistance to combat anti-competitive, unethical,
and corrupt activities, including protection against actions that may
distort or inhibit transparency in market mechanisms and impair the
development of small and medium enterprises.
`(B) providing assistance to develop a legal framework for commercial
transactions that fosters business practices that promote transparent,
ethical, and competitive behavior in the economic sector, such as commercial
codes that incorporate international standards and protection of national
and international intellectual property rights and core labor standards;
and
`(C) providing training and technical assistance relating to drafting
of anti-corruption, privatization, and competitive statutory and administrative
codes, and providing technical assistance to ministries and agencies
implementing anti-corruption laws and regulations.
`(c) Consideration- In making a determination to provide assistance to financial
institutions referred to in subsection (b), the President should take into
consideration the extent to which a project establishes and implements a
nondiscrimination in lending policy to prohibit discrimination based on
ethnicity, sex, color, race, religion, physical disability, marital status,
or age, and a policy against predatory lending practices.
`(d) Acceptance and Use of Gifts, Devises, Bequests, and Grants- In accordance
with section 635(d) of this Act, the President may accept and use in furtherance
of the purposes of this section, money, funds, property, and services of
any kind made available by gift, devise, bequest, grant, or otherwise for
such purposes.
`(1) IN GENERAL- Not later than January 31 of each year, the President
shall transmit to the appropriate congressional committees a report that
contains a detailed description of the implementation of this section
for the prior fiscal year.
`(2) CONTENTS- The report required by paragraph (1) shall contain a description
of the number of grants, contracts, cooperative agreements, or other form
of assistance provided under this section with a detailed description
of--
`(A) the amount of each grant, contract, cooperative agreement, or other
form of assistance; and
`(B) the name of each recipient and each country with respect to which
projects or activities under the grant, contract, cooperative agreement,
or other form of assistance were carried out.
`(3) AVAILABILITY TO THE PUBLIC- The report required by this subsection
shall be made available to the public on the Internet website of the United
States Agency for International Development.
`(f) Definitions- In this section:
`(1) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate congressional
committees' means--
`(A) the Committee on International Relations of the House of Representatives;
and
`(B) the Committee on Foreign Relations of the Senate.
`(2) SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN AFRICAN COUNTRIES-
`(A) IN GENERAL- The term `small and medium enterprises in sub-Saharan
African countries' means corporations and other legal entities that
meet the requirements of this subparagraph. A legal entity meets the
requirements of this subparagraph if it--
`(i) is organized under the laws of a sub-Saharan African country
and has its principal place of business within such country;
`(ii) is owned or controlled by natural persons who are citizens of
the sub-Saharan African country referred to in clause (i); and
`(iii) has fewer than 50 employees.
`(B) OWNED OR CONTROLLED- In subparagraph (A), the term `owned or controlled'
means--
`(i) in the case of a corporation, the holding of at least 50 percent
(by vote or value) of the capital structure of the corporation; and
`(ii) in the case of any other kind of legal entity, the holding of
interests representing at least 50 percent of the capital structure
of the entity.
`(3) SUB-SAHARAN AFRICAN COUNTRIES- The term `sub-Saharan African countries'
means the countries specified in section 107 of the African Growth and
Opportunity Act (19 U.S.C. 3706).
`(g) Authorization of Appropriations- There are authorized to be appropriated
to the President to carry out this section $30,000,000 for each of the fiscal
years 2007 and 2008.'.
(b) Conforming Amendment- Section 497 of the Foreign Assistance Act of 1961
(22 U.S.C. 2294) is amended in the second sentence by adding at the end
before the period the following: `or section 496A'.
SEC. 6. ACTIONS TO IMPROVE TRADE BETWEEN SUB-SAHARAN AFRICAN COUNTRIES
AND THE UNITED STATES.
(a) Actions of the United States Trade Representative-
(1) PLAN- The United States Trade Representative, in consultation with
the Administrator of the United States Agency for International Development
and the Secretary of Agriculture, shall develop a comprehensive plan for
the expansion and diversification of agricultural trade between sub-Saharan
African countries and the United States under the African Growth and Opportunity
Act (19 U.S.C. 3701 et seq.).
(2) ELEMENTS- The plan required by paragraph (1) shall--
(A) identify the major agricultural products that are exported between
sub-Saharan African countries and the United States;
(B) analyze critical constraints to agricultural trade between sub-Saharan
African countries and the United States and efforts to remove such constraints;
(C) increase capacity building for research and development for local,
regional, and international markets, agricultural export products, quality
improvement, and international food standards;
(D) strengthen infrastructure and communication networks to reduce marketing
and transaction costs, in collaboration with the United States Agency
for International Development;
(E) increase access to market information (such as information relating
to prices, product quality and demand, input quality and costs, and
customs rules and regulations) for smallholder farmers, farmer groups
and cooperatives, and relevant government ministries of sub-Saharan
African countries;
(F) establish and strengthen public-private partnerships in sub-Saharan
African countries to enhance agricultural trade between such countries
and the United States;
(G) establish consultation mechanisms between the five United States
Agricultural Technical Advisory Committees and counterpart groups in
sub-Saharan African countries and regional economic organizations; and
(H) support ongoing discussions with agricultural government ministries
of sub-Saharan African countries and private sector agricultural organizations
in sub-Saharan African countries on issues of mutual concern in the
context of World Trade Organization (WTO) agricultural negotiations.
(3) REPORT- Not later than one year after the date of the enactment of
this Act, the United States Trade Representative shall submit to Congress
a report that contains--
(A) a detailed description of the plan required by this subsection;
and
(B) recommendations for legislation, administrative actions, or other
actions that the Trade Representative considers appropriate to implement
the plan.
(b) Actions of the Department of State-
(1) ACTIVITIES TO STRENGTHEN FUNDAMENTAL LABOR RIGHTS-
(A) SENSE OF CONGRESS- It is the sense of Congress that sustained economic
growth and development in sub-Saharan Africa will depend on building
strong, effective enforcement of international labor standards and democratic
trade unions that can responsibly represent workers' interests at the
workplace and with their governments in sub-Saharan African countries.
(B) ACTIVITIES- The Secretary of State shall undertake activities to
strengthen internationally recognized labor rights and standards in
sub-Saharan African countries by--
(i) ensuring that governments and businesses in sub-Saharan African
countries are aware of their obligations (through membership in the
International Labor Organization (ILO) as well as under United States
trade preference programs such as the generalized system of preferences
and the African Growth and Opportunity Act) to respect, promote, and
realize the international labor standards established by the ILO;
(ii) monitoring the enforcement of labor laws in sub-Saharan African
countries, including labor laws relating to workers' rights to free
association, prohibitions on child labor, forced labor, and discrimination,
safety in the work environment, workplace standards laws regulating
minimum wage and hours of work, and collective bargaining, through
ensuring, among other things, that reporting on labor rights at United
States missions is a priority; and
(iii) providing technical assistance to enhance enforcement of labor
laws in sub-Saharan African countries and for institutional capacity
building of trade unions to increase their capabilities to represent
workers at workplaces and with their governments.
(2) ACTIVITIES TO PROMOTE DIALOGUE AMONG BUSINESS, GOVERNMENT, LABOR,
AND NONGOVERNMENTAL ORGANIZATIONS- The Secretary of State shall undertake
activities to promote social dialogue among business, government, labor,
and nongovernmental organizations, including all types of negotiations,
consultations, or exchanges of information between, or among, representatives
of business, government, labor, and nongovernmental organizations, on
issues of common interest relating to economic and social policy.
(c) Actions of the Food and Drug Administration- The Secretary Health and
Human Services, acting through the Food and Drug Administration--
(1) shall provide training to agricultural producers in sub-Saharan African
countries to ensure that exports of such producers meet United States
food safety standards;
(2) should provide technical assistance and capacity building to agricultural
producers in sub-Saharan African countries to ensure such producers meet
phytosanitary standards in planting, cultivating, harvesting, and processing
agricultural products for export, with particular attention to institutions
serving smallholder producers, small-scale rural businesses, and cooperatives;
and
(3) should provide assistance to strengthen agricultural research and
extension capacity to disseminate relevant information on pests and diseases
to smallholder farmers in sub-Saharan African countries, as well as successful,
cost efficient and environmentally sound solutions.
(d) Actions of the Foreign Agriculture Service- The Secretary of Agriculture,
acting through the Foreign Agriculture Service, should improve market access
for United States agricultural products in sub-Saharan African countries
by--
(1) in conjunction with the Secretary of Commerce, strengthening the capacity
of agricultural producer organizations in sub-Saharan African countries
to identify agricultural equipment and supply needs;
(2) working with United States financial institutions to increase the
number of such financial institutions that cooperate with the Supplier
Credit Guarantee Program;
(3) working with financial institutions in sub-Saharan African countries
to remove obstacles that inhibit fuller implementation of the Export Credit
Guarantee and Intermediate Export Credit Guarantee programs; and
(4) facilitating access for ports of entry and warehouse facilities in
sub-Saharan African countries to the Facilities Guarantee Program.
(e) Actions of the United States Agency for International Development-
(1) TECHNICAL ASSISTANCE RELATING TO AGOA ELIGIBILITY- The President,
acting through the Administrator of the United States Agency for International
Development, shall provide technical assistance to eligible sub-Saharan
African countries under the African Growth and Opportunity Act (19 U.S.C.
3701 et seq.) to assist such countries to continue to meet the eligibility
requirements under such Act, including eligibility requirements relating
to political and economic reforms.
(2) TECHNICAL ASSISTANCE RELATING TO AGOA BENEFITS- The President, acting
through the Administrator of the United States Agency for International
Development, shall provide technical assistance to eligible sub-Saharan
African countries under the African Growth and Opportunity Act to enable
small and medium enterprises in sub-Saharan African countries, including
agricultural producers, processors and traders, to maximize benefits under
such Act (and the amendments made by that Act), including--
(A) specific training for business owners on expanding access to the
benefits of the African Growth and Opportunity Act (and the amendments
made by that Act) and other trade preference programs;
(B) capacity building for entrepreneurs on production strategies, quality
standards, formation of cooperatives, market research, and market development;
(C) capacity building to promote diversification of products and value-added
processing; and
(D) capacity building and technical assistance for businesses and institutions
to help them comply with United States counter-terrorism laws.
(3) TRANSPORTATION AND COMMUNICATIONS-
(A) FINDINGS- Congress finds the following:
(i) A major impediment to trade between sub-Saharan African countries
and the United States is inadequate direct and regular transport,
for products and people, between such countries and the United States.
(ii) This transport deficit has reduced the competitiveness of products
of sub-Saharan African countries, hindered the people of sub-Saharan
African countries from expanding exports of perishable items, such
as cut flowers or fresh fruits and vegetables, limited the ability
of sub-Saharan African countries to increase tourism, and limited
the overall volume of trade between sub-Saharan African countries
and the United States.
(B) SENSE OF CONGRESS- It is the sense of Congress that there should
be an expansion of port-to-port relationships between sub-Saharan African
countries and the United States. Such relationships should facilitate--
(i) increased coordination between land, sea, and airports to reduce
time in transit and thus freight charges;
(ii) interaction between technical staff from land, sea, and airports
in sub-Saharan African countries and the United States to increase
efficiency and safety procedures and protocols;
(iii) coordination between chambers of commerce, freight forwarders,
customs brokers, and others involved in consolidating and moving freight;
and
(iv) joint negotiations with shipping companies and airlines on direct
shipping and flights between land, sea, and airports in sub-Saharan
African countries and the United States to increase frequency and
capacity.
(C) ASSISTANCE- The President, acting through the Administrator of the
United States Agency for International Development and the Global Development
Alliance of the Agency, shall facilitate trade between sub-Saharan African
countries and the United States by encouraging public-private partnerships
involving businesses in sub-Saharan African countries and the United
States, national and local governments, bilateral donors, and international
financial institutions, to create needed transportation and communication
infrastructure for products and people between rural areas and markets
(such as `farm-to-market' roads), and between sub-Saharan African countries.
(f) Actions of the Small Business Administration- The Administrator of the
Small Business Administration should conduct trade training programs for
small businesses in the United States, such as the Export Trade Assistance
Program, which convey basic information on selling goods to foreign markets,
including markets in sub-Saharan African countries.
(g) Authorization of Appropriations-
(1) GENERAL ACTIVITIES- There are authorized to be appropriated to carry
out this section (other than subsection (b)) $5,000,000 for each of the
fiscal years 2007 and 2008.
(2) ACTIVITIES OF THE DEPARTMENT OF STATE- There are authorized to be
appropriated to carry out subsection (b) $3,000,000 for each of the fiscal
years 2007 and 2008.
(3) AVAILABILITY- Amounts appropriated pursuant to the authorization of
appropriations under paragraphs (1) and (2) are authorized to remain available
until expended.
SEC. 7. DEFINITIONS.
(1) SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN AFRICAN COUNTRIES- The
term `small and medium enterprises in sub-Saharan African countries' has
the meaning given the term in section 496A(e)(2) of the Foreign Assistance
Act of 1961 (as added by section 5(a) of this Act).
(2) SUB-SAHARAN AFRICAN COUNTRIES- The term `sub-Saharan African countries'
means the countries specified in section 107 of the African Growth and
Opportunity Act (19 U.S.C. 3706).
END
