What should East Africa and Africa in general expect under a Biden led US administration? Well not to be called shitholes, that is for sure.
Africa can expect a more respectful business minded approach, and granted the move to this positive relation started pre-US 2020 elections.
Back in October 16 2020, US National Security Advisor Robert O’Brien said “America’s goal in [Africa] is to support locally led problem-solving for enterprise-driven growth, inclusive societies, and transparent, accountable governance.”
The high ranking US official made the statement during the opening session of the Investing in Africa’s Future conference hosted by the Atlantic Council’s Africa Center and the US International Development Finance Corporation (DFC).
It only boards well for the US to rebuild burnt bridges with Africa, after all, the continent does represent a market size that simply cannot be ignored.
According to the United Nations, Africa’s share of the global population currently stands at 17 percent, and that is projected to grow to about 25 percent by 2050 and 40 percent by 2100.
That is to say, in just 100 years, Africa will represent almost half of the entire world. That said, any reasonable plan would have to factor a market that big into its business sustainability master plan.
In fact, it is sub-Saharan African countries that are projected to become among the 10 most populous nations in 2100, Democratic Republic of Congo (362 million), Ethiopia (294 million) and Tanzania (286 million).
The numbers speak for themselves and even the Trump administration could not ignore them. The Investing in Africa’s Future conference, ‘marked a major push by the Trump administration to mobilize the US business community to invest in Africa and to shift the primary means of US engagement in the region from providing aid to promoting trade and investment.’
The Trump administration’s approach to Africa, seeks equal partnership with African countries built on the principles of mutual respect, accountability, transparency, trade, and investment, all underpinned by the rule of law – US National Security Advisor Robert O’Brien.
Since the Trump administration had eventually come to terms with the inevitable role that Africa plays in the future of the US, it can only be expected that the Biden administration will only further this understanding.
In this regard, there is the question of China. Any US administration will have to prioritized Beijing’s growing influence in Africa. To do this, the US needs to focus on trade rather than aid, on the one hand, but China I well ahead.
In his speech the of US International Development Finance Corporation (DFC) Mr. Adam Boehler admitted that trade, rather than aid has more impact.
“…private enterprise is the surest pathway to sustainable development. US economic growth and outward foreign direct investment, which totals $6.5 trillion, has done even more good for the globe than our humanitarian assistance,” he contended.
Further still, he pointed out just how much the US is taking this matter seriously, “…the African continent represents over half of the Development Finance Corporation’s investments, a portfolio worth $8 billion for the continent,” he said.
The US would have Africa be wary of China dependence because ‘China’s use of massive long-term loan deals and strict conditionality entraps recipient countries in agreements that ultimately benefit Beijing, rather than Africa,’ claimed
“Whereas Beijing promotes a journey to China dependence, the US promotes a journey to self-reliance,” he stressed.
To upset the Beijing hold will mean countering the assurance that China long term goals give Africa.
China’s long term loans stretch over twenty-five to thirty years and bare an interest rate that is not over 2 percent, African governments would not be able to get through private markets.
https://theexchange.africa/industry-and-trade/kenyas-main-airport-given-a-green-light-on-direct-flights-to-the-us/
Key ‘trade centered’ US initiatives
Prosper Africa, this is a pivotal initiative that covers more than sixty trade and investment support services including financing, advocacy, feasibility studies, and advisory services, to assist US and African businesses and investors to identify and close deals.
Improved Export–Import Bank, thanks to a congress led overhaul, in the last two years alone, the bank has authorized more than forty deals in sub-Saharan Africa.
The Millennium Challenge Corporation through which (and thanks to the Export-Import Bank) the United States has invested in several electricity, water and infrastructure projects in Sub-Saharan Africa and to some extent, managed to counter the Chinese impact in these areas.
Development Finance Corporation (DFC) which replaces the former US Overseas Private Investment Corporation is described as ‘a new, empowered investment agency.’ The DFC is expected to utilize its ‘unique private-sector financing tools from debt and equity finance, to political risk insurance and technical assistance, to drive private-sector investment and provide development finance solutions to the most critical challenges facing the developing world, Africa been on top of that list.
The DFC is already enjoying considerable backing from Congress including funding in excess of $60 billion, almost double compared to its predecessor. Where is all this money going? Re-insurance, debt, and equity and backing various infrastructure development projects.
Notably, the DFC has formed what it calls a “deal team” tasked with identifying new opportunities for US investors and the nearly $25 billion that the DFC is aiming to invest in the next five years around the world.
