What the U.S elections means for Africa’s trade & investment

The global economy is on edge as the United States gears up for the upcoming elections, with Vice President Kamala Harris facing off against former President Donald Trump. The outcome of this high-stakes election will have ripple effects across the world, particularly in Africa's trade and investment sphere. CNBC Africa recently hosted Eden Harris, a former Presidential Aide from the U.S. House Financial Services Committee, for an insightful discussion on the potential implications of the election on the African continent. Harris shed light on the contrasting approaches of the two candidates, highlighting the importance of Africa in the global economic landscape. As the race tightens in the U.S., with polls showing Vice President Harris leading by five to six points and critical states like Wisconsin hanging in the balance, attention is turning to the potential impact on Africa. The looming question is how the next administration will approach trade and tariffs, and what it means for African nations. The specter of protectionist policies under a Trump presidency, with promised tariffs on Chinese imports, raises concerns about retaliatory measures and increased prices for African businesses engaging with China. On the other hand, a Harris administration signals a shift towards partnership and collaboration, although specific economic policies are yet to be unveiled. One of the key themes in the conversation was the U.S.'s efforts to counter China's growing influence in Africa, positioning itself as a strategic partner rather than a provider of aid. Harris emphasized the importance of mutual benefit and a seat at the table for African nations, highlighting China's proactive approach in building infrastructure and fostering local partnerships. With the upcoming administration poised to redefine the U.S.-Africa relationship, the focus on technology as a key sector for investment presents opportunities for both parties to engage more strategically. The discussion also touched on the Africa Growth Opportunity Act (AGOA), a cornerstone of U.S.-Africa trade relations that African leaders are urging for a review. The fate of AGOA under either administration remains uncertain, but the broader conversation around dispelling negative stereotypes about Africa and its economic potential is crucial. A recent study by Africa Practice underscored the detrimental impact of misconceptions and biased portrayals of Africa, costing the continent billions in potential investment. In conclusion, as the U.S. elections draw near, the implications for Africa's trade and investment landscape take center stage. The choice between a Trump or Harris presidency carries distinct implications for African nations, with the potential for either protectionist policies or a more collaborative approach. The focus on building strategic partnerships, leveraging technology, and addressing negative stereotypes will be key in shaping the future of U.S.-Africa economic relations. As Africa navigates the shifting global economic landscape, all eyes are on Washington to see which path the next administration will chart in its engagement with the continent.