Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Pompeo blasts corruption, promotes U.S. business in Africa trip

Published 02/17/2020, 10:07 AM
Updated 02/17/2020, 10:11 AM
Pompeo blasts corruption, promotes U.S. business in Africa trip
CVX
-
BP
-
TTEF
-
ENI
-
XOM
-
NG
-

LUANDA (Reuters) - U.S. Secretary of State Mike Pompeo denounced corruption and touted American business on Monday during the second leg of an African tour in Angola, where the government is seeking to claw back billions of dollars looted from state coffers.

Pompeo is aiming to promote U.S. investment as an alternative to Chinese loans while assuaging concerns over a planned U.S military withdrawal and the expansion of visa restrictions targeting four African countries.

In Angola's capital Luanda, Pompeo met with President Joao Lourenco, who took office in 2017 promising wide-ranging economic reforms and a crackdown on the endemic graft that marked his predecessor Jose Eduardo dos Santos' four-decade rule.

"Here in Angola, damage from corruption is pretty clear," he told a group of businessmen following that meeting. "This reform agenda that the president put in place has to stick."

Portugal's public prosecutor has ordered the seizure of bank accounts belonging to Isabel dos Santos, the former president's billionaire daughter, who is a suspect in an Angolan fraud investigation.

Reputedly the richest woman in Africa, she has repeatedly denied any wrongdoing.

Angola, with sub-Saharan Africa's third-largest economy and its second-largest oil producer is ranked as one of the world's most corrupt nations, in 165th place on a list of 180 countries, according to anti-corruption group Transparency International.

U.S. oil majors Exxon Mobil (N:XOM) and Chevron (N:CVX) have significant stakes in Angolan oil fields.

Last year, Chevron signed onto a consortium to develop Angola's natural gas assets alongside Italy's Eni (MI:ENI), France's Total (PA:TOTF), BP (L:BP) and Angolan state oil company Sonangol.

"We've got a group of energy companies that have put more than $2 billion in a natural gas project. That will rebound to the benefit of the American businesses for sure, but to the Angolan people for sure as well," Pompeo said.

Despite U.S. investments, the bulk of Angola's oil production is destined for China, which holds the lion's share of Angolan foreign debt.

The Trump administration has accused China of predatory lending in Africa, where Beijing has loaned governments billions of dollars for infrastructure projects in exchange for access to natural resources. China rejects the criticism.

With a revamped International Development Finance Corporation and its new Prosper Africa trade and investment strategy, the administration is seeking to combat Chinese influence on the continent.

But the push comes as some governments are questioning U.S. President Donald Trump's commitment to Africa.

The White House last month tightened visa restrictions on nationals from Sudan, Tanzania, Eritrea and Nigeria.

West African governments are also worried about a proposed U.S. troop withdrawal from the region just as Islamist groups with links to Islamic State and al Qaeda are gaining ground.

During the first leg of his African trip in Senegal on Sunday, Pompeo sought to put some of those fears to rest.

"We have an obligation to get security right here, in the region. It's what will permit economic growth, and we're determined to do that," he told reporters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.