Africa Benefits From Free Trade

See Africa Is Awakening, Helped by Free Trade: Six of the 10 fastest-growing economies of the last decade were in sub-Saharan Africa By DANIEL W. YOHANNES AND MO IBRAHIM, from the 6-27 WSJ.

"This is where smart development assistance must play a role. Two excellent examples that work hand-in-glove can be found in the United States, with the African Growth and Opportunity Act (AGOA) and the Millennium Challenge Corporation.

Enacted in 2000, AGOA reduces the tariffs that African exporters face in U.S. markets while providing technical assistance to help them take advantage of the legislation. In 2010, the initiative brought in $44 billion in African export earnings, a more than 438% increase since its inception in 2001, according to the U.S. International Trade Commission. Overall, calculates former Assistant U.S. Trade Representative for Africa Rosa Whitaker, the effort has created more than 300,000 African jobs.

To qualify for financing, partner countries must meet international standards for good governance, invest in their citizens, and ensure economic freedom. This means making business-friendly policy reforms, such as fighting corruption and eliminating the red tape that suffocates entrepreneurship. These are many of the same standards that businesses look for when deciding where to invest capital."

Mr. Yohannes is CEO of the Millennium Challenge Corporation. Mr. Ibrahim is chairman of the Mo Ibrahim Foundation and a board member of the global antipoverty advocacy group, ONE.