U.S. ASSISTANCE AND DEBT RELIEF IN SUB-SAHARAN AFRICA
The United States is third among bilateral donors to Sub-Saharan
Africa, behind France
and Japan. The United States is a leading bilateral donor to Ethiopia,
South Africa and Somalia, among others. Reductions in overall U.S.
foreign aid in recent
years disguise the Administration's success in fending off worse cuts and
percentage of aid to Africa.
The U.S. Agency for International Development (USAID) is the principle
long-term development assistance, with programs in health, education,
population, democracy, environment and expanded efforts in crisis prevention.
Appropriations for Africa in Fiscal Year (FY) 1998 are $700 million, up
from FY 1997. USAID's regional programs include the Initiative for
Southern Africa, which
provides $300 million over five years to strengthen democracy, natural
infrastructure and boost U.S. private sector links. The President's
Greater Horn of Africa
Initiative supports conflict prevention and food security objectives in
U.S. humanitarian relief for Africa includes PL-480 food grants and
disaster assistance. In FY 1996, the United States provided about $760
emergency aid to Africa through these accounts, almost double what it was
10 years ago.
Military aid, Economic Support Funds and African Development Foundation
these building blocks of U.S. bilateral aid. In FY 1998, the United
States is providing
$1 billion to the International Development Association of the World
consistently lends half of its funding to Africa on highly concessional
addition, countless U.S.-based, non-governmental organizations use funds
countries and private sources to assist Africa.
The United States provides debt relief through the Paris Club of
creditor nations to
support economic reform in African countries. About one-third of
long-term debt is owed to Paris Club and other bilateral creditors. The
United States has
committed to forgive $250 million in official non-concessional debt owed
by 10 African
countries under the Paris Club "Naples" terms. Outside the
Paris Club, the
United States has forgiven more than $1.2 billion in official bilateral
debt owed by 20 of
Africa's poorest countries, including Senegal and Uganda. Under the
Partnership for Economic Growth and Opportunity in Africa, the
Administration is seeking
appropriations to extinguish remaining bilateral concessional debt owed
countries that undertake aggressive efforts to reform their economies and
The United States is working closely with other bilateral and
multilateral creditors on
an initiative to provide extraordinary relief to heavily indebted poor
For these countries, most of which are in Africa, concessional relief by
the Paris Club
alone will not be enough to make debt burdens sustainable.
Uganda will be the first country to receive HIPC debt relief -- a
package worth $700
million in nominal terms -- in April 1998. Burkina Faso also has
qualified for HIPC relief
worth $200 million, to be finalized in April 2000. HIPC eligibility
pending for Mozambique and Cote d'Ivoire, among others.