- US tariffs take center stage at U.S.-Africa Business Summit.
- AfDB president and others call on US to rethink tariffs.
- US tariffs, travel restrictions hurt US-Africa relations.
US tariffs are again center stage of African news with African leaders calling for ‘an urgent review of U.S. tariffs on African exports. The call was made at the U.S.-Africa business summit in the capital of Angola, Luanda earlier this week.
Addressing more than 2,000 government and business leaders, and other delegates at the summit, Angolan President João Lourenço said, “It is time to replace the logic of aid with the logic of investment and trade.”
He called on U.S. companies to diversify and go beyond the traditional oil and mineral extraction and to instead, invest in sectors such as automotive manufacturing, shipbuilding, tourism, cement production, and steel production.
On his part, the African Union Commission Chairperson Mahmoud Ali Youssouf, said, “We’re not seeking aid, but building co-created solutions,” and called on action against US tariffs.
“This should not just be a summit, but a call to action,” he said and with that, called for the removal of punitive tariffs and visa restrictions, noting that Africa’s 1.3 billion people and abundant resources remain among the world’s most significant untapped economic opportunities.
“Together, let’s walk the pathways to prosperity with unity, purpose, and Agenda 2063 as our guide,” he told the summit.
In his remarks, African Development Bank Group President Dr. Akinwumi Adesina said, “We should review the high tariffs on African countries. What is needed is more trade between Africa and the U.S., not less.”
He was seconded by the African Continental Free Trade Area (AfCFTA) Secretary General Wamkele Mene who said it is time to realise Africa’s integration agenda as the basis to making the most of the AfCFTA, especially in the face of US tariffs.
He admitted that the undertaking of the AfCFTA is an ambitious one and emphasized that its success is essential to scale investment, reduce fragmentation, and accelerate industrial development across the continent. That been said, he said US tariffs will only undermine progress made thusfar.
In turn, U.S. officials acknowledged Africa’s growing economic importance and the need to reset perceptions. In his comments, Senior State Department Bureau Official Troy Fitrell said; “There are business leaders in the U.S. who need to understand the opportunities that lie in doing business with Africa. Our mission going forward will be to find them and bring them in.”
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US tariffs take center stage at U.S.-Africa Business Summit
According to a press release from the AfDB; “The U.S.-Africa Business Summit promotes economic cooperation and investment between the United States and Africa with a focus on fostering sustainable and inclusive economic growth.”
The report cites the Lobito corridor as a concrete example of strategic investment already underway; “That is why the African Development Bank is a key strategic partner with the U.S., Angola, and Zambia on the development of the Lobito corridor,” AfDB president Adesina said.
“This critical corridor will link the vast areas of Zambia and the Democratic Republic of the Congo to the port of Angola, improving mineral supplies, unlocking agricultural potential, and creating jobs,” he elaborated.
He also announced that, the African Development Fund, the soft loan arm of the Bank Group, will be providing USD500 million in support of the development of the Lobito Corridor.
“Additionally, the African Development Bank will provide USD1 billion over five years for complementary investments around the corridor, including agricultural value chains, roads, and energy infrastructure,” he announced.
The Bank President also pointed out that; “As we build transport corridors, let us also build strategic partnership corridors. Strategic partnerships that prioritize capital investments in infrastructure, agriculture, minerals industrialization, and development of digital infrastructure, as well as capital markets.”
He seized te moment to challenge U.S. investors to; “Act on the data, not perceptions. Think Africa. Think opportunities. Think competition. From the U.S. International Development Finance Corporation to the Export-Import Bank of the United States, as well as institutional investors and capital allocations, invest in Africa. Let’s make America and Africa great again,” he said.
On his part, Corporate Council on Africa President Florie Liser challenged the summit delegates to embrace what he described as ‘a true partnership beyond deals, let’s strive for lasting transformation,” he urged.
Similar sentiments were also shared at the Africa50, a pioneering infrastructure investment platform set up by the AfDB to accelerate project development and delivery across Africa.
Speaking at this event, AfDB president Adesina emphasized the urgent need to scale local financing solutions especially in local currencies to mitigate forex volatility, reduce risk mismatches, and enhance the bankability and stability of infrastructure projects for global investors.
Titled “Unlocking Capital for Africa’s Infrastructure through Innovative Finance,” the event featured a high-level panel discussion on asset recycling, where delegates explored how innovative models, such as asset recycling, can unlock capital and accelerate infrastructure development across Africa.
“In implementing this initiative in Africa, we are pursuing three objectives. First, monetizing assets ensuring that, instead of owning only a bridge, you receive cash that you can reinvest in your assets. Second, improving the efficiency of the asset by bringing in first-class operators to help us manage those assets. Third, and most importantly, we aim to bring pension funds and other investors interested in cash flow-generating assets to finance these projects,” he explained.
Adesina said over the past decade, the African Development Bank Group has invested over USD 55 billion in infrastructure, including regional projects, making the Bank the largest financier of infrastructure in Africa.
According to the press releae, the African Development Bank established Africa50 as a private equity infrastructure platform, comprising a project development company and a project finance company, to support the development of infrastructure with market-rate returns.
According to the Bank President, in the past eight years since its establishment, Africa50 has invested in a portfolio of infrastructure projects worth over USD8 billion.
“But more is needed, especially from private sector investors,” stated Adesina. “Africa should be well positioned to attract some of the $2.9 trillion global green bonds. However, the continent represents less than 1% of global green bond issuance. Because most of Africa’s infrastructure is yet to be built, this represents a huge opportunity for green bond issuances to build green infrastructure, reduce carbon emissions, and build climate resilience,” he urged.
According to the press release, the renewed momentum for U.S.-Africa business partnerships received strong political backing, with the participation of seven Heads of State, several Prime Ministers, and leaders of key regional organizations, but above all, it is the US tariffs and trael restrictions that took center stage.
