In an unexpected turn of events, the United States has adopted a new stance towards Africa, asserting that its interests are now intricately linked with those of the continent. President Joseph Biden has affirmed the deep connection between the fate of the US and Africa, leading to an increase in US investments in the region.
At the US-Africa Leaders Summit in December 2022, the US pledged to invest a substantial $55 billion in Africa over the next three years. However, the US has surpassed expectations by striking deals worth $14.2 billion with African nations in the past year alone, marking a 67% increase from the previous year. This surge in investment has resulted in the closure of 547 new deals, indicating a significant strengthening of economic ties between the US and Africa.
Furthermore, the US has demonstrated its commitment to Africa through high-level visits, with seven cabinet and top US government officials, including Vice President Kamala Harris, visiting 26 African countries to bolster relations. The US is sending a clear message that it is dedicated to fostering partnerships with the continent on multiple fronts.
It has been emphasised that the US’s engagement with Africa is not solely motivated by economic interests, but also by the desire to counter the influence of China and Russia on the continent. The US believes that these global powers are leveraging Africa for their own commercial and geopolitical gain, and the US is determined to play a crucial role in shaping Africa’s future.
According to Moses Ikiara, a former Kenya Investment Authority managing director, Africa is poised to be a key player in the global economy due to its abundant natural resources, burgeoning population, and improving governance. This presents an attractive opportunity for the US to expand its presence in Africa and reap the benefits of its potential growth and development.
An example of the US’s commitment to Africa is President Biden’s decision to designate Africa as the primary beneficiary of the $600 billion Partnership for Global Infrastructure and Investment initiative. As part of this initiative, a railway project in the Democratic Republic of the Congo and Angola will receive a substantial $250 million financing package, underscoring the US’s dedication to supporting infrastructure development in Africa.
The increased investment by the US in various sectors such as infrastructure, digital transformation, health, and food security is creating opportunities for American companies to venture into Africa and capitalize on the emerging opportunities. Importantly, this initiative comes at an opportune time, as China’s influence in Africa is waning, with the International Monetary Fund reporting that Beijing’s lending to the continent has dropped to its lowest level in nearly two decades.
In conclusion, the US’s intensified focus on enhancing economic ties with Africa signifies a significant shift in its approach to the continent. This increased engagement presents numerous opportunities for both the US and African nations and is a clear indication that Africa’s importance on the global stage is rapidly increasing.
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