Advancing economic partnerships between the US & East Africa

Strengthening bilateral trade and investment between the United States and East Africa has taken center stage as America intensifies its efforts to increase trade volumes with the region. In a recent interview with Maxwell Okello, the CEO of the American Chamber of Commerce (AmChem), key insights were shared on the areas in which the USA is looking to expand investments into the continent and the current status of the strategic trade and investment partnership. The trade relationship between Kenya and the US has witnessed significant growth in recent years, with the value of goods traded surpassing the 1.5 billion US dollar mark in 2022. This positive trajectory reflects the growing interest from American private sector companies to invest in the region, fueled by initiatives such as roadshows led by Ambassador Meg Whitman and high-level visits to US companies by Kenyan officials. The momentum created in the bilateral trade relationship is expected to continue deepening in the coming years. One of the key sectors driving economic opportunities between the US and East Africa is the digital transformation space. Notably, Kenya's Silicon Savannah has attracted investments from tech giants like Amazon Web Services, Microsoft, and Google, who have established development centers in the region. The agro-processing sector, especially in ag tech, is also seeing increased investment, with startups revolutionizing agricultural value chains in the country. Additionally, the textile and apparel industry, a leading export category from Kenya to the US, is experiencing growth with investments in accessories production and sourcing of textiles. These sectors are projected to play a significant role in advancing economic partnerships between the US and East Africa. With the upcoming AmCham Summit scheduled for the 24th and 25th of April, the focus will be on driving policy dialogue, advocating for business climate reforms, and catalyzing commercial engagement to enhance trade relations between Kenya, the US, and other East African countries. The summit aims to build on the success of previous editions, where over 700 million US dollars in deals were announced. Key thematic areas such as trade and investment, health and life sciences, climate action, sustainable finance, and opportunity and inclusion will be discussed, with a keen focus on commercial engagement and policy advocacy to deepen trade and investment. The Strategic Trade and Investment Partnership (STIP) negotiations between Kenya and the US will not be the primary focus of the summit, given the sensitivities involved in such agreements. However, thematic areas covered by the STIP, including digital transformation, will be highlighted to further align the strategic economic partnership between the two nations. The Africa Growth Opportunity Act (AGOA) continues to be a vital component in bilateral trade, with over 70 percent of Kenya's exports to the US leveraging the trade agreement. Efforts to reauthorize AGOA and emphasize sustainable manufacturing will be critical in demonstrating the impact of the trade program on job creation and economic growth. As African countries advocate for more beneficiation in trade agreements like AGOA, maintaining competitiveness in the US market remains a key priority. The reauthorization of AGOA will be essential for African countries to sustain duty-free access and compete effectively in the US market. Enhancing value chains, promoting beneficiation processes, and raising product standards will be crucial for African countries to leverage the opportunities provided under AGOA and drive economic growth on the continent.