US commits toward development projects in Africa
The United States of America has committed a US$55 billion package towards the developmental projects and programs on the African Continent.
The United States President Joe Biden announced billions of dollars in support and investment for Africa at the second African Leaders summit held in America with the continent’s Leaders.
The United States is all in on Africa’s future,” President Biden told the 49 African leaders attending the Washington DC meeting.
It is the first such gathering hosted by Washington for eight years.
The summit is seen as a US attempt to re-assert its influence in Africa to counter Chinese involvement.
It also comes after Donald Trump’s four-year tenure in office, during which he alienated numerous African leaders with policy decisions and insulting comments.
Mr Biden struck a very different tone to his predecessor, speaking optimistically of improved links with Africa and telling the gathering that “when Africa succeeds, the United States succeeds. Quite frankly, the whole world succeeds as well.”
He said that the crises facing the world today needed African leadership, ideas and innovations, and promised to build on the “vital” investments in Africa made by previous US administrations.
Discussions at the summit have focussed on building on already existing programmes, including:
Prosper Africa – a US government initiative “to increase two-way trade” between African nations and the US launched in 2018
the Clinton-era Africa Growth and Opportunity Act, Agoa, which provides African apparel manufacturers preferential access to the US market;
the Power Africa initiative launched by President Obama to connect millions of African to the grid among others.
But the success of such programmes has been slow to realise. Africa only accounts for just over 1% of US foreign trade, which is dominated by petroleum imports from Nigeria and Angola.
In his address on Wednesday, the US president spoke about a $500m-investment to reduce transport costs at a key West African port in Benin.
He also mentioned $350m that would be spent on boosting the digital economy and said that $15bn-worth of deals had been struck at the US-Africa Business Forum.
The US is also set to sign a memorandum with the African Continental Free Trade Area – one of the world’s biggest free-trade areas – which Mr Biden said would “unlock new opportunities for trade and investment” between the US and Africa.
On the sidelines of the summit on Wednesday, Mr Biden separately met the six leaders of African nations which are holding elections in 2023 to press for free votes.
On Thursday, the US president said he would back the African Union’s admission as a permanent member of the Group of 20 major economies.
Meanwhile, the second US African Leaders summit has accorded Malawi an opportunity to break the trade and investment barriers and fully participate in Africa’s cooperation with the World’s largest economy.
The State President Dr Lazarus McCarthy Chakwera who attended the summit said, “In the various deliberations I have had with delegates to the summit, US President Joe Biden inclusive, it is becoming clear that Africa is now permanently positioned as a key investment destination.
“In the short term, Malawi is poised to benefit from a three-year US$55 billion package committed by the US towards development projects and programs on the African continent.
:We will also remain abreast in exploring opportunities that arrive with the newly-signed memorandum of understanding between Washington and the Africa Continental Free Trade Area (AfCTA) and Africa’s prospects of permanent membership in the Group of 20 economies (G20).
“Malawi joined Africa in Washington DC to seek consensus on equitable development and mutual success with the US. I am glad we have established a refreshed stable foundation to unlock trade and investment opportunities for our economy.”
