Why US.-Africa relations is crucial to trade & investment growth

The United States is making significant strides in deepening its trade and investment commitments with African countries through the Prosper Africa initiative. Scott Cameron, the Acting Coordinator of Prosper Africa, recently revealed that the U.S. is looking to channel about $15.7 billion into two-way trade and investment commitments with African countries. This initiative aims to unlock a viable pipeline of deals across the continent and has already shown promising results. With five separate investor delegations planned for this year, the U.S. is committed to providing investors with advisory services and market insights to navigate the perceived and actual risks of investing in Africa. Scott Cameron emphasized that the core objectives of Prosper Africa are to advance trade and investment deals, unlock market opportunities, and strengthen business and investment climates. The initiative leverages a full suite of U.S. government services, tools, and resources to drive investment towards Africa. On-going delegation trips bring together key stakeholders such as banks, foundation managers, and institutional investors with trillions of assets under management. These trips facilitate introductions to local markets, pitch sessions, and connections with local companies and fund managers. By building these relationships, investors can gain confidence in the African market and reduce perceived risks. The U.S. government also plays a crucial role in de-risking projects and enhancing the chances of success for investors. As a result of these efforts, over $1.8 billion of institutional investor capital has already been unlocked for various projects, including a $274 million housing deal in West Africa. This success story underscores the potential for impactful investments across the continent. While countries like Nigeria, South Africa, Kenya, and Egypt have seen significant investments due to their high U.S. commercial presence and larger economies, Prosper Africa remains open to exploring opportunities in other African countries. For instance, pitch sessions in Egypt with sizable investors looking to make substantial investments involve discussions on scalable and trustworthy deals. Local fund managers also play a pivotal role in facilitating investments at a portfolio level, ultimately driving economic growth and job creation. The deepening ties between the U.S. and Africa hold immense significance for both parties. The recent commitment of $15.7 billion exemplifies the U.S.'s dedication to strengthening commercial relations with Africa. High-level visits from Vice President Harris and plans for President Biden's visit underscore the seriousness with which the U.S. is approaching this partnership. By increasing commercial ties, both the U.S. and Africa stand to benefit, creating a win-win situation that fosters economic growth and prosperity for all involved.