Africa’s integration into global markets, population boom, and continent-wide entrepreneurship and innovation present an extraordinary opportunity for the United States to invest in Africa’s future. ‘Africa. The United States will support and facilitate the mobilization of private capital to fuel economic growth, job creation, and greater American participation in Africa’s future. Together, business and government leaders will strengthen enabling environments for trade and investment, including by fostering the development and implementation of effective policies and practices across all sectors, and identify and promote new opportunities for Africans and Americans. Through initiatives such as the Partnership for Global Infrastructure and Investment (PGII) and Prosper Africa, the United States will provide timely and coordinated support that meets the needs of businesses and investors, including micro, small and medium-sized enterprises and diaspora- and women-owned businesses, to advance infrastructure priorities and stimulate two-way trade and investment.
Since 2021, the U.S. government has helped secure more than 800 bilateral trade and investment agreements in 47 African countries with an estimated total value of more than $18 billion.and the US private sector has secured investment deals in Africa valued at $8.6 billion. U.S. goods and services traded with Africa totaled $83.6 billion in 2021. These investments and programs support the umbrella initiatives PGII, Prosper Africa, and Power Africa.
At today’s United States-Africa Business Forum, President Biden announced more than $15 billion in two-way trade and investment commitments, agreements and partnerships that advance key priorities including sustainable energy, health systems, agribusiness, digital connectivity, infrastructure and finance. Since January 2021, the Biden-Harris administration has invested and plans to invest over $1 billion in trade, investment and economic development in Africa.
U.S. government departments and agencies announced new initiatives and investments to promote two-way trade and investment:
- The United States Trade Representative (USTR), on behalf of the United States Government, signed a Memorandum of Understanding with the African Continental Free Trade Area (AfCFTA) Secretariat to help institutions accelerate sustainable economic growth across the continent. When fully implemented, the agreement establishing the AfCFTA will create a combined continent-wide market of 1.3 billion people and $3.4 trillion, which would be the fifth largest economy in the world.
- The Millennium Challenge Corporation (MCC) and the governments of Benin and Niger sign the first regional pacts totaling $504 million, with additional contributions of $15 million from Benin and Niger, to support regional economic integration, trade and cross-border collaboration. Since the start of this administration, MCC has also signed agreements with the governments of The Gambia, Lesotho and Malawi for an additional $675 million. These agreements include over $150 million to support climate change adaptation. The agency currently works in 14 African countries with over $3 billion in active compact and threshold programs and approximately $2.5 billion ongoing. Yesterday, MCC announced that The Gambia and Togo are eligible to develop their first compacts, Senegal is eligible to develop a concurrent regional compact, and Mauritania is eligible for a threshold program.
- President Biden launched the Digital transformation with Africa (DTA), a new initiative to expand digital access and literacy across the continent. In collaboration with the Congress, this new initiative aims to invest over $350 million and mobilize over $450 million in funding commitments for Africa, in line with the African Union’s digital transformation strategy.
- American International Development Finance Corporation (DFC) announced $369 million in new investments across Africa in food security, renewable energy infrastructure and health projects, including a $100 million transaction with Mirova SunFunder for the Mirova Gigaton Fund to support clean energy across the continent.
- The United States Export-Import Bank (EXIM) currently has over $7 billion in exposure across Africa, including new clearances such as $42 million in financing to the Republic of Angola for the purchase of GatesAir FM transmitters and $7.4 million of financing to Sapele Power Plc (Sapele) in Nigeria for the purchase of American-made energy storage systems from ESS Tech, Inc (ESS). During the Forum, EXIM signed several new Memoranda of Understanding (MoU), including: $500 million Memorandum of Understanding with the African Export-Import Bank (Afreximbank) to support diaspora engagement and strengthen EXIM’s commercial links with the continent by improving access and awareness of EXIM financial products; a $300 million memorandum of understanding with Africa 50 to facilitate up to $300 million in EXIM financing for the export of U.S. goods and services to buyers across Africa, specifically in support of infrastructure, transportation, digital technology and renewable energy projects; and a $500 million memorandum of understanding with the Africa Finance Corporation to facilitate U.S. exports of goods and services, promote U.S.-Africa trade, and support financing for trade-enhancing projects.
- Power Africa, which helped close 145 power generation investments worth over $24 billion, in collaboration with Prosper Africa, announced the launch of the Clean Tech Energy Network (CTEN). CTEN is a collaboration between the U.S. government, U.S. cleantech energy companies, and African energy players that is expected to leverage $350 million in deals. Additionally, Power Africa has operationalized a $150 million public-private partnership to electrify 10,000 health facilities in sub-Saharan Africa, bolstering sector resources to advance pandemic resilience and digital connectivity and decarbonize the footprint. of the health sector.
- United States Trade and Development Agency (USTDA) announced more than 15 new activities designed to help unlock nearly $1 billion in funding for Africa’s clean energy, digital and health infrastructure priorities and create more than $500 million dollars worth of export opportunities for American companies. These new commitments build on USTDA’s 30-year history of partnering with the public and private sectors and African financiers to shape infrastructure development across the continent. In 2022 alone, the USTDA program has unlocked over $500 million in funding for 10 priority infrastructure projects across the continent.
- Prosper Africa, together with Congress, has invested and plans to provide at least $170 million to increase two-way trade and investment between the United States and African countries. Through catalytic investments and partnerships, Prosper Africa plans to boost African exports to the United States by $1 billion and leverage an additional $1 billion in U.S. investment in Africa. For example, Prosper Africa is launching five new partnerships with African investors that will leverage $200 million in private investment and generate millions of dollars in corporate revenue, while advancing African solutions to global challenges such as climate change. , food insecurity and women’s empowerment. Prosper Africa is also creating a new Prosper Africa Coordinator position, which will streamline U.S. government and private sector efforts to advance the administration’s economic engagement with Africa.
- The Department of Commerce supported more than 330 U.S.-Africa trade deals and deals during the Biden-Harris administration, with a total value of more than $11.9 billion.
- The United States Agency for International Development (USAID) announced a series of newly mobilized private commitments and investments across sectors, including health, food security and climate, that promote gender equality, women’s economic empowerment and inclusion social. This includes $100 million to accelerate last-mile delivery of agricultural innovations and a commitment to unlock $300 million in private finance by increasing investment in infrastructure and manufacturing, as well as digital solutions to drive a zone of African Continental Free Trade Agreement (AfCFTA) effective. USAID also launched its Climate Action Infrastructure Facility which aims to mobilize $100 million in private investment to finance climate solutions.
- American Foundation for African Development (USADF) announced three off-grid energy challenges (health, agriculture and women in energy) through which the agency will provide grants to African businesses to promote market-based solutions that connect businesses to electricity and have a impact on marginalized communities. Since 2021, USADF has invested a total of $48.26 million in grants in African businesses and leveraged $3 million from the private sector. In conjunction with Congress, in 2023 USADF plans to implement new projects that will invest $56.84 million, of which $18 million is expected to be raised from the private sector and other donors.
- United States Department of Agriculture (USDA) supported approximately $264 million in agricultural exports to Africa from July 2021 to August 2022 through export credit guarantee program support, including maize, soybeans and wheat. The USDA will continue to encourage commercial export financing of US agricultural products through the Export Credit Guarantee Program by reducing financial risk to lenders and facilitating trade.
The full list of private sector commitments made at the US-Africa Business Forum can be viewed here.