During the U.S. – Africa Business Summit, USAID Administrator Samantha Power gave an overview of the U.S.’ relationship with Africa over the last 60 years since the USAID was born and defined new directions moving forward.

Samantha Power recalled the assistance the U.S. is providing for its partner countries in key sectors such as education, healthcare, agriculture, and energy and the significant impact of its support on the lives of many people worldwide. Moving forward, the relationship between the U.S. and Africa mostly based on aid must evolve into a cooperation, with more sustainable impact, fuelled by trade.

The Biden-Harris Administration launched during the Summit the Prosper Africa Build Together Campaign to “elevate our commitment to two-way trade and investment between African nations and the United States,” Samantha Power said.

While acknowledging the role of public investment in developing countries, she claimed that the private sector is the key driver to Africa’s long-term economic growth and prosperity.

“Through Prosper Africa, USAID will directly connect American investors with African businesses ripe for investment by funding delegations and making crucial connections to local actors, leveraging our long-standing relationships on the continent. This work will help American businesses access Africa’s fast-growing markets and create thousands of jobs for both African and American workers.” – Samantha Power explained.

The United States will use U.S. pension funds to increase high-yield return-generating investment in Africa.  Samantha Power quoted Angela Miller-May, chief investment officer of the Chicago Teachers’ Pension Fund: “Before my first delegation... my understanding of Africa was based on what I had seen on TV or read in the news, and I perceived Africa as a place of risk. But all of those perceptions quickly went out the door: I saw that Africa was filled with opportunities. The discussions [I had]...shortened the distance between the U.S. and Africa for me.”

After her trips in Africa, Angela made a $20-million investment in African companies involved in healthcare, education, technology, and other vital sectors of the economy. It is in this selfsame spirit that Prosper Africa, through its Build Together Campaign, will continue to “shorten the distance” between U.S. investors and African businesses.

A new trade and investment strategy – beneficial to both sides – will be implemented in accordance with American values rooted in mutual respect, national sovereignty, democratic governance, and individual dignity. “Less aid, more trade!”

Source: Africa Media Hub

The U.S. Department of State’s Johannesburg Media Hub hosted Special Assistant to the President and Senior Director for Africa at the National Security Council Dana L. Banks for a digital press briefing on how the U.S. government is working to increase U.S.-Africa trade and investment through Prosper Africa. In the meantime, the virtual U.S.- Africa Business Summit was also held in late July.

Africa must address some pressing issues.

Dana Banks reiterated how committed the Biden-Harris administration is to rebuilding partnerships with countries all over the world. The United States renews its readiness to partner with African nations as well as with African civil society and African youth. However, in order for the vision for Africa to be achieved, many issues have to be addressed: violent extremism, climate change, undue foreign influence, conflicts and humanitarian crisis. Resolving such pressing problems is a key condition to a fast-growing Africa, and the United States will support the continent in the process.

Prosper Africa Build Together Campaign

During last week’s U.S. – Africa Business Summit, the U.S. administration kicked off the Prosper Africa Build Together Campaign with a requested additional funding of 80 million dollars. The aim of the campaign is to “substantially increase two-way trade and investment between the United States and Africa by connecting U.S. and African businesses and investors with tangible deal opportunities.”

Prosper Africa will identify new opportunities for U.S. and Africa businesses to increase trade and investment as drivers of economic growth and job creations. Focus will be given to identified key sectors and the green economy.

In practical terms, the U.S. Development Finance Corporation (DFC) has engaged a total of two million dollars and another half million in financing Africa-based projects this year. The Millennium Challenge Corporation has agreed to support the energy sector in the West Africa region. Other agencies among the 17, including the USAID, the Department of Commerce, the U.S. Trade and Development Agency (USTDA) have facilitated other agreements towards key economic sectors such as healthcare, agriculture, and power. If the funding of 80 million dollars is approved by the Congress, it is expected to support, for example, infrastructure building and matchmaking for businesses and American investors. The Build Together Campaign will also help small businesses run by the African diaspora across the United States.

A continuation to AGOA?

When asked about the upcoming expiration of the African Growth Opportunity Act (AGOA) in 2025, Dana Banks explained that the sunsetting of AGOA is not necessarily a bad thing. AGOA has been more beneficial to some countries than to others. The United States will look at a mutually beneficial trade relationship both with individual countries and the African continent as a bloc. That is why the U.S. administration is seeking to engage more in the African Continental Free Trade Area (AfCFTA). Even though discussions with the U.S. Trade Representative’s office are being held, no conclusion can be drawn regarding another round of AGOA coming up.

Nevertheless, Prosper Africa, through USAID and other agencies, will continue to provide the necessary advising services for local businesses in terms of U.S. market access. Africa and its products are “à la mode” and there is a great potential for smaller businesses – including woman-led businesses – to explore the U.S. market if they are provided the appropriate information and support.

As a reminder, Prosper Africa is an initiative launched by former president Donald Trump back in 2018. The Biden-Harris administration is seeking to “re-imagine” and revive the initiative then considered “the centerpiece of U.S. economic and commercial engagement with Africa”.

Source: U.S. Department of State / Agoa.info