Trade and investment are crucial components of the relationship between the United States and Africa. On one hand, it spurs economic activity creating thousands of jobs in African countries and reduces overreliance on development assistance. On the other, it supports market demand for products in the U.S., provides new markets for U.S. companies and maintains U.S. economic stability and resilience.
U.S. trade and investment with Africa has lagged behind its potential with relatively fewer U.S. companies active on the continent compared to other regions. Data released in July 2022 by the U.S. Bureau of Economic Analysis on U.S. Direct Investment Abroad in 2021, placed investment in Africa last, valued at $44.8 billion[1]. This is against U.S. investment in other regions such as Europe valued at $3.981 trillion and Asia valued at $957.5 billion in that same year[2]. U.S. goods and services traded with Africa on the other hand, totalled $83.6 billion in 2021[3].
This essay proposes that by innovating its trade policy with Africa through more robust commercial diplomacy that involves and includes U.S. private sector operating in the region, as well as comprehensive trade frameworks, and multi-stakeholder collaborative efforts to enhance access to market information, U.S. commercial engagement with Africa can see more concrete outcomes, creating more robust opportunities for U.S. companies and expanding U.S. private sector participation and leadership in Africa.
The full essay is available for download below and on the Aspen Congressional Program website HERE
[1] Bureau of Economic Analysis, “Direct Investment by Country and Industry, 2021”, News Release, U.S. Department of Commerce, July 21, 2022, https://www.bea.gov/sites/default/files/2022-07/dici0722.pdf
[2] Bureau of Economic Analysis, “Direct Investment by Country and Industry, 2021”, News Release, U.S. Department of Commerce, July 21, 2022, https://www.bea.gov/sites/default/files/2022-07/dici0722.pdf
[3] The White House, “U.S.- Africa Partnership in Promoting Two-Way Trade and Investment in Africa”, Fact Sheet, Last Modified December 14, 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/12/14/fact-sheet-u-s-africa-partnership-in-promoting-two-way-trade-and-investment-in-africa/
