Future of Africa-US investment & trade: Trump vs. Harris administration

The recent assassination attempt on Donald Trump and the nomination of Kamala Harris by President Joe Biden have shaken up the potential outcomes of the upcoming U.S. presidential elections. This shift in the political landscape has far-reaching implications for U.S. trade, aid, and investment relations with Sub-Saharan Africa. CNBC Africa East Africa-Bureau Chief, Ridhima Shukla, delves into the complexities and nuances of these implications in a recent interview. Shukla highlighted the polarizing factors at play in the current U.S. political scenario. On one hand, there's the pro-life, America-first agenda championed by Trump, while on the other, there's a focus on the green agenda and global economic cooperation under a potential Harris administration. This stark division has intensified following the assassination attempt, leaving the future uncertain. Examining the historical context, Shukla compared the approaches of the Trump and Biden administrations towards Africa. During Trump's term, the 'Prosper Africa Initiative' aimed at enhancing trade relations between the U.S. and Africa through private sector involvement. In contrast, Biden's 'build back better world' initiative prioritizes infrastructure development in lower to middle-income nations with enhanced transparency. Shukla emphasized the different strategies employed by Trump and Biden in engaging with African nations. While Trump favored a bilateral approach focusing on individual countries, Biden leans towards a multilateral framework. This distinction could impact the manner in which U.S. policies and investments are structured in the region. In the realm of trade, Shukla highlighted the significance of the Africa Growth Opportunity Act (AGOA) as a key channel for trade flows between Africa and the U.S. The legacy of AGOA, established during the Clinton-Bush era, has continued under both Biden and Trump administrations. Despite differing approaches, the fundamental structure of trade relations through AGOA has largely remained unchanged. Furthermore, Shukla discussed the diplomatic nuances in U.S.-Africa relations, pointing out contrasting styles between Trump's vocal responses and Biden's more cautious diplomacy. Trump's reactive nature was evident in instances like the Rwanda second-hand clothing ban, where he swiftly acted to adjust trade tariffs. On the other hand, Biden has approached diplomatic relations with a touch of restraint, while also leveraging America's moral authority to enforce democratic standards in trade agreements. The evolving landscape of global engagement presents African nations with a multitude of investment options, including partnerships with China, Russia, India, and Gulf countries. The competition for economic collaboration with Africa has shifted the leverage towards the continent, giving African nations the power to negotiate terms that align with their interests. As the U.S. political scene continues to evolve, with implications for Africa-U.S. relations, it remains crucial for African nations to navigate the changing dynamics strategically. The outcome of the U.S. elections will undoubtedly shape the future trajectory of trade, aid, and investment landscapes in Sub-Saharan Africa.