- Continuing from the discussion of evolving US-Africa trade relations, a key aspect of this dynamic is the strategic objective of countering Chinese influence on the continent.
- By 2024, Africa is poised to undergo a significant shift in geopolitical and economic dynamics, emerging as a crucial arena for global powers such as China and the US.
- The evolving focus on Africa is driven by its transforming economic landscape, marked by rapid growth, a youthful population, and abundant resources, attracting attention from major players seeking strategic advantages.
By 2024, Africa will have witnessed the beginning of a new age in the geopolitical and economic dynamics of the world. In recent years, the continent has shifted its focus from humanitarian issues and developmental assistance to becoming an important strategic arena for the world’s leading powers, particularly China and the US. Several elements are coming together to highlight Africa’s growing importance internationally, driving this change.
It is, therefore, incumbent on the US to see Africa in 2024 as a major player in global politics, trade, and partnerships. The real question is whether this perspective is shaped by a nuanced understanding of the continent’s potential and challenges or whether the US is just trying to thwart China’s influence. As Washington recalibrates its strategy for Africa, it does so with an eye on the long-term implications of its engagement, both in countering Chinese influence and in harnessing Africa’s potential as a partner in global economic and security arenas.
First, Africa’s economic landscape is rapidly transforming. With some of the fastest-growing economies in the world, the continent is no longer just a reservoir of raw materials but a burgeoning market with immense potential for trade and investment. This economic expansion is fueled by a youthful population, increasing urbanization, and an emerging middle class, driving demand for a wide range of goods and services. The United States, recognizing the potential of this growth, views Africa as a vital partner for economic collaboration and market expansion.
Second, Africa’s vast reserves of mineral wealth and energy resources are a magnet for global attention. The continent’s rich deposits of oil, gas, and minerals, including rare earth elements essential for modern technologies, make it a strategic player in the global supply chain. Both the US and China are keenly aware of the importance of these resources, not only for their economic value but also for their role in the broader geopolitical game of resource security.
The intensifying engagement of the US and China in Africa is reminiscent of a new ‘Scramble for Africa,’ echoing the historical competition for colonial dominance. However, this modern iteration is marked by a competition for economic influence and strategic partnerships.
China’s approach, characterized by substantial infrastructure investments and a no-strings-attached policy, contrasts with the US’s focus on promoting trade, governance, and security cooperation. This strategy divergence highlights the different paradigms through which these powers view their African engagements.
Africa’s strategic location and role in international security cannot be overstated. For the US, Africa’s significance extends beyond economics to encompass critical aspects of global security, counter-terrorism, and the fight against transnational threats. The continent’s position as a nexus for these issues places it at the heart of US foreign policy considerations.
US-Africa Trade Relations
As we gaze toward US-Africa trade relations in 2024, a comprehensive picture emerges, marked by pivotal legislation and forward-thinking initiatives. Central to this landscape is the African Growth and Opportunity Act (AGOA), established in 2000, which has been instrumental in forging a stronger economic bond between the United States and Africa.
AGOA’s provision of tariff-free access to the US market for eligible African countries has bolstered Africa’s export potential and diversified these exports beyond traditional commodities. The act’s impact is evident in the tripling of non-oil imports from Africa since its implementation. However, with AGOA set to expire in 2025, there is a growing recognition of the need for its renewal and modernization to keep pace with evolving economic and technological trends.
In tandem with AGOA’s evolving role, the Biden administration’s approach to US-Africa trade relations marks a significant shift from previous strategies. Moving beyond the conventional focus on free trade agreements, exemplified by the cessation of discussions for a Free Trade Agreement with Kenya, the current administration is embedding broader considerations into its trade policies. These include climate change, environmental sustainability, and security objectives, reflecting a holistic approach that intertwines economic aspirations with global responsibilities and challenges.
Complementing this shift is the Prosper Africa initiative, a strategic move by the US government to deepen trade and investment ties with African markets. This initiative is a testament to the US’s commitment to a mutually beneficial economic relationship with Africa.
Prosper Africa amalgamates services from various US government sectors, offering a comprehensive support system for businesses and investors navigating opportunities in the US and African markets. The initiative has been pivotal in facilitating numerous trade and investment deals, further intertwining the economic destinies of the US and African nations.
The synergy of AGOA’s future, the Biden administration’s reoriented trade policy, and the Prosper Africa initiative paints a dynamic and promising picture of US-Africa trade relations in 2024. This landscape is characterized by an adaptive and inclusive approach, acknowledging Africa’s growing economic significance and aligning with broader global challenges and opportunities.
Read Also: US-Africa trade relations: re-imagining AGOA to boost economic growth
Countering the Chinese Influence
Continuing from the discussion of evolving US-Africa trade relations, a key aspect of this dynamic is the strategic objective of countering Chinese influence on the continent. In 2023, the United States achieved a record year in its trade engagements with Africa, marking a significant milestone. The US government closed an impressive array of deals with African nations, collectively valued at billions of dollars.
The United States has significantly enhanced its trade and diplomatic engagement with Africa in the past year. Under the auspices of the Prosper Africa initiative, the US secured trade deals with African nations amounting to $14.2 billion, marking a substantial 67 per cent increase compared to the previous year. This economic venture led to the closure of 547 new deals.
This surge in economic activity is not merely a pursuit of trade for its own sake but a concerted effort to offer an alternative to China’s deepening footprint in Africa, particularly through infrastructure and investment initiatives. The US administration’s active pursuit of deeper engagement with Africa signifies a recognition of the continent’s growing strategic importance in global geopolitics and economics.
The bipartisan support for the renewal of AGOA in the US Congress further reinforces America’s commitment to sustaining robust trade ties with Africa. This widespread political backing underscores the recognition across the political spectrum of AGOA’s significance, not only as a catalyst for private sector-led economic growth in sub-Saharan Africa but also as a strategic tool in balancing China’s expanding influence in the region. The act’s emphasis on economic growth through trade rather than aid positions it as a crucial component of the US’s broader strategy to engage constructively with African nations.
In light of AGOA’s impending expiration, there is a growing discourse on reimagining its role and impact. The conversation centres on updating AGOA to align with the current global economic landscape, including the digital transformation reshaping economies worldwide. This reevaluation is vital for enhancing US-Africa trade relations and offering a competitive alternative to Chinese engagement in the region.
The modernization of AGOA is anticipated not just to extend its lifespan but to expand its scope to effectively address new economic realities and opportunities, thereby strengthening the US’s position as a key economic partner to Africa in the 21st century.
As we delve deeper into the United States’ approach towards Africa in 2024, we must understand the multifaceted factors that have shaped this relationship. One key aspect is the interplay between global and domestic priorities that have influenced the US’s engagement with Africa, notably in President Joe Biden’s administration.
Various High-level visits by US government officials, including Vice President Kamala Harris, further solidified this relationship. These visits, undertaken by seven cabinet and top US officials, spanned 26 African countries, signifying a concerted effort to deepen bilateral relations with the continent, yet no visit ever by President Biden.
Why has President Biden yet to visit Africa
President Biden’s unfulfilled promise to visit Africa has sparked renewed concerns about the continent’s positioning in US foreign policy. While the administration assures that “America is all in on Africa” and actively works to revitalize US-Africa ties, particularly in countering the growing influence of China and Russia, the lack of a presidential visit has raised questions about the level of priority assigned to Africa. This situation has led to apprehensions about potential neglect or underestimation of Africa’s strategic importance in the broader spectrum of US foreign interests.
For the US, the majority of interests don’t lie in Africa. The ongoing conflict in Ukraine and the war against Russia have demanded substantial attention from President Biden and his administration. Additionally, other global conflicts, such as the Israel-Hamas battle, have further drawn the focus away from Africa.
These international issues and domestic concerns, especially in the lead-up to the crucial 2024 election, have seemingly overshadowed plans for an African visit. Such global and domestic challenges illustrate the complexities of balancing international engagement with pressing issues closer to home.
Any speculation regarding President Biden’s potential visit to Africa includes mentions of significant strategic and economic partners like Nigeria, South Africa, and Namibia as possible destinations. The ongoing discussions and planning for such a visit, although not realized in 2023, indicate a sustained interest in strengthening ties with Africa.
This forward-looking perspective may underscore the US’s recognition of Africa’s importance and the desire to deepen engagement with the continent. In reality, if no US presidential visit were to occur, one would start questioning whether this administration had any interest in Africa or was just lip service as it sought to stop China’s influence on the continent.
