
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, September 22, 1993                   TAG: 9309220081
SECTION: VIRGINIA                    PAGE: C2   EDITION: NEW RIVER VALLEY 
SOURCE: Landmark News Service
DATELINE: RICHMOND                                LENGTH: Medium

U.S.-AFRICA BUSINESS TIES GROW

As political stability takes hold and more African countries abandon socialism for free-market economies, American companies have stepped up their investments in Africa.

"We are seeing a definite improvement in the business climate across Africa," Edward Moorman, manager of sales development for General Motors Corp.'s Africa operations, said to a gathering of African delegates Tuesday.

"We are looking for partners we can do business with, especially for dealerships" in African countries, he said.

Moorman was part of a panel that included representatives of two major U.S. manufacturers and two banking concerns.

The panel discussion on business opportunities in Africa was part of the four-day Southern Governors' Association meeting and African Heads of State Summit being held in Richmond. Delegations from 25 sub-Saharan countries, including five heads of African governments, are attending the summit, which ends today.

Some of the panelists, however, cautioned that American companies cannot expect quick profits from investments they make in Africa. "This is a long process. There is no quick buck in Africa," said Jim Law, vice president, Africa, for Mobil South Inc. ". . . The real return will come over time.

The giant oil company, he said, has weathered upheavals in several countries, including Mozambique and Ethiopia, with the expectation of eventually making a profit.

During 18 years of civil war in Mozambique, "We basically hunkered down,"' said Law, who oversees Mobil's production and marketing operations in several African countries. "We mothballed our facilities, and we operated with a skeleton staff."

Since resuming operations in Mozambique two years ago, Mobil has begun working on a joint venture with the country's state-owned oil company that will ship petroleum products to other countries, he said.

But some American companies, including many American banks, remain wary about doing business in Africa, because they think they cannot compete effectively with banks already doing business there, said panelist Bill Kaschak, a representative of the U.S. Agency for International Development's Africa Bureau.

"There has to be some measure of security for their investment risks," he said in response to a question about why more American banks were not doing business in Africa.

by CNB