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Afri
can countries will be chief beneficiaries of an annual $5
billion US government programme to reward emerging markets that
meet its criteria of good governance, the Financial Times
reports.
Walter Kansteiner, the US assistant secretary of state for Africa,
said this week that the US will reinforce Africa's financial
infrastructure through the Millennium Challenge Corporation, an
initiative launched last month by the Bush administration to boost
private sector investment in developing countries.
The corporation's remit will be to support capital market
development and integration, loan guarantees and credit ratings. It
will also assist portfolio investment from the US and help
medium-sized and large corporations operating in Africa to raise
debt.
"What we are fighting for is Africa and to reward the good
performers," said Kansteiner. "The private sector will get Africa
up and going. It won't be just official development assistance.
Governments must work together to set the table, but the private
sector will deliver the meal."
Some critics argue that the Corporation cuts across the New
Partnership for Africa's Development (Nepad). Nepad is a plan
forged by African leaders to promote good governance among
themselves, in return for higher investment and development
assistance. Its emphasis has been on African countries judging
their peers rather than conforming to standards set by the west.
However, US officials say the work of the Corporation will
complement Nepad and the $10 billion the US already hands out
annually in development aid.
"Rewarding the good performers makes sense. That's the Nepad
theology. We truly do believe Nepad is what is going to make Africa
work. But we are going to pull together the criteria we think are
important," Kansteiner said.
President George W. Bush is expected to champion private sector
investment in Africa during a four-country visit there in January.
He is also expected to promote the US steps taken to give African
countries improved access to its market through the African Growth
and Opportunities Act.
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