Economic Meltdown Forces Africans in the U.S. To Look Homeward

Exclusive Report by The African Times News Service

As the American economy and those of the rest of the Western nations have literally tanked, an increasing number of the African Diaspora in the United States have opted for returning to their home countries. However, their return is conditioned on maintaining their U.S. homes, according to exclusive findings by The African Times news journal. While the economies and the business sector in the West struggled, the findings reveal that most of the African nations are recording impressive Gross Domestic Product (GDP) rates and offer veritable alternatives to African expatriates with an appetite for investments and greater personal growth.

The African Times' findings show that a percentage of the returnees divest or mop up equity from their homes and businesses to finance their new economic base in Africa. Primarily they are engaging in start-ups ranging from agro-allied businesses, food processing, hotels, restaurants, transportation, information and communication technology (ICT), oil and gas and renewable energy, as well as professional services such as real estate. To take advantage of the new business opportunities in Africa, many professionals among them chose to re-train in other fields to take advantage of their new economic home base.

About 85% of this demographic segment retains their homes in America and those with school age children ensure their families' continued stay in the U.S. Consequently and according to figures obtained by The African Times, this has resulted in increased air travels and remittances of funds to Africa.

Countries whose nationals have pre-dominantly been part of this trend include Ethiopia, Nigeria, Ghana, Sierra Leone, Kenya, Uganda, Liberia, Senegal, and Cameroon. Most of this new group of Africa-born entrepreneurs and investors are naturalized U.S. citizens and Green Card (alien permit) holders, with a median age of 50 years and above. Majority of them have lived continuously in America upwards of 20 years and most are graduates of various U.S. higher-education institutions.

In recognition of this new migration pattern of straddling both continents, a Washington DC-based think-tank organization, African Diaspora in partnership with Western Union and USAID launched a highly specialized workshop in seven U.S. cities as an initiative designed to create entrepreneurial solutions to economic and social challenges faced by this group. Entitled the African Diaspora Marketplace, the workshops were kicked off in Atlanta, continued to Houston, Los Angeles, Chicago, New York, Philadelphia, and ended December 13 in Washington DC.

The workshops, according to the organizers are aimed at encouraging sustainable economic growth and employment by supporting U.S-based Diaspora entrepreneurs with ideas for start-up and established businesses in sub-Saharan Africa.

Last year’s African Diaspora Marketplace awarded more than a dozen matching grants of $100,000 each to winning business entries in seven African countries. "Our support for innovative Diaspora entrepreneurs is an investment in the long-term economic health of Africa, and part of our enduring community commitment." said Hikmet Ersek, President and CEO of Western Union. "Through this collaboration, Western Union and USAID are helping tap the economic potential of the 1.4 million Africans living in the U.S., bringing more direct investment to the continent. The African Diaspora Marketplace will strengthen and help satisfy demand for locally-produced products and services by leveraging Diaspora capital and resources."

Grantees from last year's workshop have been credited with some innovative business enterprises which include the first-ever mobile anti-counterfeiting service for pharmaceutical drugs in Nigeria, the first GPS tracking system to prevent product loss in Ethiopia, and a high-speed ferry system powered by locally-produced sunflower oil in East Africa connecting local economies in Uganda, Kenya and Tanzania.

In 2010, former Los Angeles-based attorney, Chike Amobi decided to relocate to the provincial capital of Awka in Anambra state of Nigeria where he had to shed his wig and gown to run a boutique hotel that is reputed to be a hub for other returning Nigeria expatriates and now serves as a model, while in Lagos another Nigerian Mr. Tunji Balogun, a Carson, California resident now runs a successful ICT business in the suburbs of Ikeja.

"My son is at school in UCLA which means that I must maintain two homes, one in Nigeria and the other in America. All my supplies both domestic and for business I get them in the U.S. From there, I go to China, Korea and Turkey for business. I guess that is the only way to survive in today's world." he told The African Times.

Chief Charles Eke, of Newark, New Jersey talked of the challenges he has had to face in setting up a branch of his communications business in Owerri, Imo State of Nigeria. "The volatility of the market back home makes it imperative that you have to be bullish in every transaction. I'm currently setting up a warehouse and so far I have had to contend with official and unofficial corruption, pilfering, poor work habit of the locals. However, I am undaunted because the U.S. has little to offer me at this time. I literally live in both worlds. Most of my contracts are from government and foreign NGOs."

However, one of the superlative success stories of this trend is the imposing entertainment complex in the heart of the Ghanaian capital Accra in the Osu district called Citizen Kofi set up last year by Dr. Kofi Amoah who maintains a home in the Ladera Heights area of Los Angeles and another in Accra. Dr. Amoah who holds a doctorate degree in Economics from the University of California, Berkeley said he foresaw the economic meltdown in the West, especially America some years ago and decided to divest and invest in the African economy. "A lot of my American friends thought I was crazy for doing that. Today, I am happy to say that I have been proven right. America will always be relevant in the world hence I have maintained my presence here. However, for my money, Africa is the place to play and will remain so for the foreseeable future." he said.

The U.S. Advocacy Center Commercial Liaison Office at the African Development Bank

U.S. companies interested in business opportunities available through the African Development Bank should contact the Commercial Liaison Office1, which is part of the U.S. Department of Commerce's Foreign Commercial Service. Located in one of the Bank buildings, the U.S. Commercial Liaison Office is dedicated to assisting and supporting U.S. companies by offering the following services in connection with the African Development Bank.

Business Counseling

• Counseling you on how to approach the Bank and borrowing governments;

• Conversing with project task managers at the Bank to get you updates on specific projects; and

• Advocating on your company's behalf to ensure that your project bid is receiving fair consideration in relation to other project bids.

• Identification of Business Opportunities

• Identify Bank-funded projects that present opportunities for your products and/or services;

• Inform you of relevant Invitations to Bid (Specific Procurement Notices) as they become available;

• Identify upcoming projects that present a good opportunity for your company; and

• Keep you informed of Bank-procured contracts, such as policy studies (e.g., gender, environment) and goods/services directly procured by the Bank.

• Helps you identify key contacts at the Bank and in the borrowing government should you have questions regarding a specific project.

Individual Company Promotion

On your next visit to the Bank, the AfDB Commercial Liaison can arrange for you to meet with key individuals, including the AfDB U.S. Executive Director, project task managers, industry experts, procurement officers, private sector department Investment Officers, and others as appropriate.

If you cannot visit Tunis, the office can arrange a videoconference for you to meet with key Bank officials. There is a cost recovery fee for this service due to associated charges with the videoconference connection.

Contact:

U.S. Commercial Service AfDB Liaison Office
Office of the U.S. Executive Director
ATR BAD
Angle des 3 rues du Ghana, Hedi Nouira
Et Pierre de Coubertin, B.P. 323
1002 Tunis Belvedere, Tunisia

Tanya Cole, Senior Commercial Officer
Tel: +216-71-831-117 Fax: +216-71-830-244
Email: Tanya.Cole@trade.gov

Lilia Ben Messaoud, Commercial Assistant
Tel: +216-71-831-117 Fax: +216-71-830-244
Email: Lilia.Benmessaoud@trade.gov

Reinstatement of AGOA Benefits for Cote d'Ivoire, Niger, and Guinea

On October 25, 2011 the U.S. President Obama announced the reinstatement of African Growth and Opportunity Act (AGOA) benefits for Cote d'Ivoire, Guinea and Niger. This was the culmination of a review by the Administration to examine whether Cote d’Ivoire, Guinea, and Niger had made “continual progress” during the year in meeting AGOA’s eligibility criteria. Those criteria include establishment of a market-based economy, rule of law, economic policies to reduce poverty, protection of internationally recognized worker rights, and efforts to combat corruption. Restoring AGOA eligibility provides opportunities to increase mutually beneficial trade and investment between Cote d'Ivoire, Guinea, Niger and the United States.

Cote d'Ivoire lost AGOA benefits in 2005 and both Niger and Guinea ceased to be AGOA eligible at the beginning of 2010. All three countries lost AGOA eligibility due to undemocratic changes of government. In the period between 2010 and 2011 Cote d'Ivoire, Guinea and Niger successfully completed free and fair presidential elections. This political progress was a key factor in reinstating AGOA benefits.

AGOA was signed into law by President Clinton in May 2000, with the objectives of expanding U.S. trade and investment with sub-Saharan Africa, stimulating economic growth, promoting a high-level dialogue on trade and investment-related issues, encouraging economic integration, and facilitating sub-Saharan Africa's integration into the global economy. With the addition of Cote d'Ivoire, Guinea and Niger there are currently 40 Sub-Saharan African countries eligible to receive AGOA benefits.

Entrepreneurship Delegation Travels to Morocco, Algeria, and Tunisia

From October 27 to November 2, the State Department’s Special Representative for Commercial and Business Affairs Lorraine Hariton is leading a delegation of American entrepreneurs, early-stage investors, non-governmental organization representatives, and academics to Morocco, Algeria, and Tunisia. Members of the delegation include several members of the Maghreb Diaspora in the United States. The delegation is sponsored by the Partners for a New Beginning U.S. – North Africa Partnership for Economic Opportunity (PNB-NAPEO) and is organized by the State Department’s Global Entrepreneurship Program.

The delegation seeks to foster and deepen relationships between U.S. investors and entrepreneurs and their local counterparts in emerging markets. The event will showcase local talent in the Maghreb region through pitching sessions to potential investors; mentoring meetings between fledgling entrepreneurs and established entrepreneurs; angel investor roundtables; and networking opportunities.

The highlight of the event will be the selection of three starts-ups, one from each participating Maghreb country, to receive a three-month business incubation at the Tech Town Business Incubator in Detroit, Michigan alongside a three-month tuition scholarship at Wayne State University in Detroit to study business and entrepreneurship.

For more information, please visit http://www.state.gov/e/eeb/cba/entrepreneurship/index.htm

6 Of the 10 Fastest Growing Economies In The World Are In Africa!

Which continent has six of the ten fastest growing economies in the world? Asia? No, it’s Africa. Which country is predicted to have the highest GDP growth in the world over the next 40 years? India or China? No, Nigeria.

African countries, according to the Economist Magazine and the IMF, are experiencing significant growth rates that could transform them into the next China.

In a recent visit to Africa, David Cameron the UK’s Prime Minister made this statement “Tell me this: which part of the world has seen its number of democracies increase nearly eight-fold in just two decades? Eastern Europe? No, it’s Africa. Which continent has six of the ten fastest growing economies in the world? Asia? No, it’s Africa. Which country is predicted by some to have the highest average GDP growth in the world over the next 40 years? You might think Brazil, Russia, India or China. No. Think Africa. Think Nigeria. The point I want to make today, is this: This can be Africa’s moment. Africa is transforming in a way no-one thought possible 20 years ago, and suddenly a whole new future seems within reach.”

The Top 10 African Countries to Invest in 2011

International investors choose South Africa, Nigeria and Kenya as the best African countries on the continent for investment in 2011. A survey conducted by Africa Business Panel among 800 business professionals involved with Africa shows that these 3 countries were earmarked as the continent’s favorites when it comes to international investment. Ghana, Angola, Tanzania, Rwanda, Botswana, Uganda and Mozambique are the runners up and complete the top ten countries for investment out of 53 economies on the African continent.