*Sorry Daz, but in other News, I see where,
Washington sets course for Africa
The "Africa-United States" business summit opened on Wednesday, July 20, in Marrakech, Morocco.
It lasts until Friday and brings together, in addition to an American government delegation, political leaders and representatives of the African business community as well as decision-makers and investors from the American private sector.
On the menu: the economy and business with, in the background, the key issues of the fight against climate change and energy transition, but also food security, health, agriculture, infrastructure, new technologies or the digital divide.
Upon coming to power in January 2021, the American president made it a diplomatic priority to counter the growing influence in Africa of Russia and especially China.
However, the latter has greatly advanced its pawns in recent years on the African continent, via enormous investments in infrastructure and mining resources in particular.
Washington intends to play on the same ground and wants to mobilize “billions of dollars” of investments in favor of the African continent, in partnership with the private sector.
“The United States seeks to catalyze billions of dollars in trade and investment relationships to create jobs and build inclusive and sustainable economic growth across the African continent,” said Alice Albright, CEO of the development agency.
American Millennium Challenge Corporation (MCC). “We must leverage the full range of US government instruments, harness the power of the US private sector, and strengthen our partnerships with business leaders and investors across the African Diaspora,” she continued.
If under the presidency of Donald Trump, Africa was no longer at the top of the American agenda, the situation is changing and the figures for African demographic growth also have a lot to do with it.
By 2050, a quarter of the world's population will be African and Nigeria will overtake the United States as the third most populous country in the world.
Not to mention the fact that the African continent is already one of the fastest growing consumer markets in the world with 1.4 billion young people and a growing middle class.
Abundance of opportunities
These facts convinced the Corporate Council on Africa (CCA), a private organization, to organize this annual business meeting for the first time on the African continent and in North Africa.
“It is time for Africa to play its central and natural role on the international scene”, launched the head of Moroccan diplomacy Nasser Bourita by opening the debates.
The choice of Morocco is far from trivial for the United States, the Cherifian kingdom – the fifth largest economy in Africa – is a flagship destination for investments on the African continent.
“This is an opportune time for American investments in Africa, on a large scale,” added Akinwumi Adesina, President of the African Development Bank.
According to him, “tomorrow cannot wait. Africa's time is now. Africa's future is bright.
We are open for business and welcome you with open arms.”
Among the big projects that could change the game and attract investors, the head of the pan-African bank cited the oil refinery and fertilizer production complex of the Dangote group present in Nigeria estimated at 20 billion dollars, as well as those of the South African group MTN, which currently operates in 19 markets.
Adesina also pointed out that despite turbulence, such as the Covid-19 pandemic which has had strong impacts on economies, the number of private equity operations in Africa has increased from 230 in 2019 to 255 in 2020, proof that opportunities still abound in Africa.
“Our Administration's goal,” said Vice President Kamala Harris, “is to promote inclusive and sustainable economic growth and development across the continent, increase capital flows, and foster a spirit of dynamic of entrepreneurship and innovation that prevails throughout Africa”.
The United States far outpaced by China in Africa on the economic field
Concretely, bilateral trade between the United States and all African countries has shrunk to a trickle since 2009, when Beijing won the rank of the continent's leading trading partner from Washington, falling from a peak of 142 billion in 2008 to just $64 billion in 2021, according to figures cited by the American think tank Carnegie Endowment for International Peace.
As for American FDI in Africa in 2020, it amounted to 47.5 billion dollars, or 5.2% of global investments by the United States.
And beyond the Africa Growth and Opportunity Act, known as AGOA – created in 2000, to give a list of eligible countries duty-free access to US markets for thousands of products, it is a collection of initiatives that underpin economic exchanges between the United States and Africa.
Two years ago, the Trump administration launched the private sector-focused Prosper Africa, with the goal of increasing trade and investment on the continent.
Result: 800 trade and investment agreements have been signed in 45 African countries, for an estimated value of 50 billion dollars.
As for the Millennium Challenge Corporation, the government agency, it has invested some 9 billion USD (8.85 billion euros) in 25 African countries since 2004.
Recently, President Biden, with the support of the G7, has agreed to launch a new initiative, this time focusing on infrastructure projects in developing countries.
For Akinwumi Adesina, the urgency would also be for American companies to invest in the so-called African Development Bank's $ 1.5 billion Emergency Food Production Facility initiative, designed to mitigate the impact of the current global food crisis, which has worsened with Russia's invasion of Ukraine.
This facility, the first of its kind, aims to help countries acquire and distribute fertilizers and agricultural seeds, provide emergency support for the next planting seasons, increase their food production by 30% and produce the equivalent $12 billion worth of food.
Focus on the future
After the excesses and manifest contempt of Donald Trump, the Biden administration wants to make up for lost time, and is heading towards the future. It is counting, in particular, on the future African Continental Free Trade Area (Zlecaf).
Indeed, the Zlecaf could, according to Washington, be a game-changer for African economic integration and trade, but also stimulate investment, potentially from American companies interested in value-added products manufactured on the continent in key sectors. .
This highlighting of African opportunities is not new, but it is meant to kick off a new start in relations between Washington and African countries.
The White House took the opportunity of this meeting to announce that President Joe Biden would welcome African leaders from December 13 to 15 for a summit supposed to "underline the importance of relations between the United States and the Africa”.
This summit must "further promote a new economic engagement", "reinforce the commitment of the United States and Africa to democracy and human rights", make it possible to work on cooperation in the face of pandemics, on security food, on the climate crisis and on peace.
No event of this scale has taken place since the first Africa-US summit in 2014, organized under Obama.
www.mediacongo.net
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Food for thought on the Road to Mining Manono Bro
Cheers
Frank