US Pledges $55b to Africa

Dec 24 , 2022

Trade, investment, peace and security challenges in Africa are considered the core challenges over the next three years through the eyes of the United States. Following the US-Africa summit, the Undersecretary for Economic Growth, Energy & Environment Jose W. Fernandez reviewed the outcomes by outlining his government's intentions towards Africa. At a press briefing hosted by the US State Department, he stated that the US planned to invest 55 billion dollars in the continent over the next three years. The 1.3 billion population size of the continent offered market potential, especially with the further implementation of the trade agreement. Its leaders recently signed a memorandum of understanding with the Secretariat of AfCFTA, Wamkele Mene. The global ambition towards clean energy has also put the vast lithium resources of the continent in the eyes of the electric supply chain. The Democratic Republic of Congo and Zambia signed a memorandum of understanding in March 2022 to establish lithium processing plants with the US government's assistance. The Undersecretary also emphasised the underutilisation of the African Growth and Opportunity Act (AGOA) by African countries, stating that it was a mass market that provided the trade gateway of 6,500 products with duty-free access to the US markets. According to Jose, this was one of the discussion points President Joe Biden raised with the African leaders. Ethiopia, Mali and Guinea had their preferential trade access terminated in January 2022 due to violating the  AGOA statute. The tight forex crunch has Ethiopia crossing its fingers in the hopes of reinstatement to AGOA following the cessation of hostilities between the federal government and armed forces in Tigray.