The Whitaker Group CEO on rethinking U.S-Africa relations through trade and development

The first-ever Assistant United States Trade Representative for Africa, Rosa Whitaker, is ringing the alarm bells on the U.S. approach towards Africa, calling for a significant shift from aid to trade. In a recent interview with CNBC Africa, Whitaker highlighted the shortcomings of the current U.S. policy, emphasizing the need for a more proactive and mutually beneficial engagement with the continent. According to Whitaker, the U.S. has been faltering in its trade and investment policies towards Africa by heavily relying on an aid-led model that has failed to deliver sustainable economic development. She pointed out that while humanitarian assistance is necessary and commendable, development aid aimed at transforming economies has not yielded the desired results. Whitaker criticized the excessive focus on aid, which has led to a lack of incentivization for U.S. private sector investments in Africa. She raised concerns about the ineffectiveness of the aid industrial complex, citing the billions of dollars spent by Washington through USAID that may not be reaching the intended recipients in Africa. The CEO of the Whitaker Group proposed a four-pronged approach to revamp U.S.-Africa relations, with a strong emphasis on trade and investment. Whitaker suggested leveraging the U.S. bond market to provide financing for infrastructure development in Africa, partnering with institutions like Afro-Exam bank, and incentivizing U.S. companies to invest in transformative sectors on the continent. Highlighting the need to compete with China's growing economic influence in Africa, Whitaker called for a total disruption of the existing aid model and a strategic realignment of U.S. policies to drive economic growth and job creation in the region. Whitaker's insights come at a crucial juncture when the Biden administration is working to establish a new trade and investment policy towards Africa. By advocating for a trade-centric approach and emphasizing the potential for U.S. businesses to contribute to Africa's development, Whitaker is championing a paradigm shift in U.S.-Africa relations. As the continent with the most arable land and a growing population, Africa presents significant opportunities for investment in sectors like agriculture and digital innovation. Whitaker highlighted agriculture as a promising area for U.S. companies to explore, given Africa's agricultural potential and the rising demand for food production. Overall, Whitaker's calls for rethinking U.S-Africa relations through trade and development signal a new chapter in the engagement between the two regions. By prioritizing trade over aid, and encouraging private sector investments in key sectors, Whitaker envisions a more dynamic and mutually beneficial partnership that could drive sustainable growth and prosperity for both the U.S. and Africa.