U.S. Vows Aid for Fast-Growing Ethiopia's Private Sector -- Update
February 19 2020 - 8:42PM
Dow Jones News
By Courtney McBride
ADDIS ABABA, Ethiopia -- Secretary of State Mike Pompeo
concluded a three-country tour of Africa, where the Trump
administration has pledged continued U.S. aid and called for
greater private-sector involvement in the economy.
In Addis Ababa on Tuesday and Wednesday, Mr. Pompeo hailed
Ethiopia's democratization advances and economic overhaul under
Prime Minister Abiy Ahmed, who won last year's Nobel Peace
Prize.
Mr. Pompeo, on his first visit to Sub-Saharan Africa as
secretary of state, earlier stopped in Senegal and Angola. The
Trump administration is contending with a multifaceted diplomatic,
economic and security challenge on the continent, where it is
reconsidering the future of approximately 6,000 troops and vying
for influence with China.
U.S. officials praised Ethiopia, Africa's second-most-populous
country, as a security partner and emerging market for U.S. goods
and services. A senior State Department official pointed to the
government's release of thousands of political prisoners,
noninterference in popular protests and economic overhauls that had
transformed "a public-sector-led infrastructure model that had
delivered double-digit growth for years, but had pretty much come
to the end of its useful life."
U.S. development assistance is focused on economic growth,
individual freedoms and expanding the private sector, another
senior State Department official said, evolving from a focus on
"basic service delivery" in the 1950s and 1960s.
"The private sector is the way that countries become developed,"
the official said, adding U.S. aid is meant as a catalyst for that.
"We're really looking at how we can include the private
sector."
President Trump repeatedly has attempted to reduce U.S. foreign
assistance. His administration's proposed fiscal 2021 budget for
the State Department would slash funding for aid and global health
programs, among others.
The second State Department official said the U.S. government
has maintained an annual average of approximately $1 billion in
development and humanitarian assistance to Ethiopia, and is adding
about $130 million in new money focused on seven priority areas
that include elections, rule of law and economic growth.
Mr. Pompeo said Wednesday that U.S. aid can help alleviate
poverty in areas of the world like Africa, but is unlikely to solve
it. "Government spending often can't attack the very basis of the
problem," he said in remarks at the United Nations Economic
Commission for Africa.
In an apparent reference to China, Mr. Pompeo warned that not
all countries would employ Washington's partnership-based approach
to doing business on the continent.
"Countries should be wary of authoritarian regimes and their
empty promises," Mr. Pompeo said. "They breed corruption,
dependency -- they don't hire the local people, they don't train,
they don't lead them."
Asked about Mr. Pompeo's comments, a Chinese embassy spokesman
in Washington pointed to remarks last month in Zimbabwe by State
Councilor Wang Yi, who said China is Africa's largest trading
partner and that in 20 years of cooperation, it has built more than
6,000 miles of roads and rail lines; nearly 20 ports and 80 large
power plants across the continent, along with schools and medical
facilities. China has trained more than 200,000 Africans in job
skills, Mr. Wang said.
U.S. officials have said China frequently attaches conditions to
its aid, including unaffordable repayment terms that end up giving
the country a stake in public works projects or preferential rights
to port usage.
Mr. Pompeo on Tuesday announced an additional $8 million in U.S.
government funding to aid Ethiopia in locust control. A severe
infestation of the crop-destroying insects has hit the region, and
experts say forecast rains could exacerbate it. The U.S. earlier
committed $800,000 to locust response, the senior department
official said.
In addition to Mr. Abiy, Mr. Pompeo met with President
Sahle-Work Zewde and Foreign Minister Gedu Andargachew.
The secretary also met with Moussa Faki Mahamat, who heads the
African Union Commission at AU headquarters in Addis Ababa. They
discussed regional security, according to the State Department.
Security also was a theme of Mr. Pompeo's weekend visit to
Senegal, where top officials urged the U.S. to maintain a security
presence and help counter surging extremist organizations. Later,
in Angola, he hailed the anticorruption efforts of President João
Lourenço.
Write to Courtney McBride at courtney.mcbride@wsj.com
(END) Dow Jones Newswires
February 19, 2020 20:27 ET (01:27 GMT)
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