In a significant move that underscores the United States’ deepening economic relations with Africa, the U.S. Mission has reinforced its commitment as a steadfast economic and commercial partner to the continent. At the recent BusinessDay Africa Trade and Investment Summit in Lagos, U.S. Mission Commercial Counselor, Julie LeBlanc, revealed that the United States supported and finalized 547 new deals in the past year, totaling an estimated $14.2 billion in two-way trade and investment with African countries. This marks a substantial 60% increase in both the number and value of deals compared to 2022, signifying a growing economic synergy between the U.S. and Africa.
According to a report by The Guardian, LeBlanc’s keynote address, delivered to delegates spanning the public, private, and development sectors, highlighted the recent visit of Secretary of State Antony Blinken to West Africa. Blinken’s tour, which included stops in Nigeria, Cape Verde, Cote d’Ivoire, and Angola, was a testament to the U.S.’s dedication to fostering security partnerships, health initiatives, and economic development across the region. Emphasizing Africa’s critical role in the future global landscape, LeBlanc echoed Blinken’s sentiment that “The future is African,” acknowledging the continent’s burgeoning demographic and economic potential.
The U.S. Mission to Nigeria, in particular, has been at the forefront of bolstering U.S.-Africa trade and investment relations. Initiatives such as the U.S.-African Continental Free Trade Area Memorandum of Understanding and a $160 million contribution to support the African Continental Free Trade Area are notable examples of this commitment. These efforts aim to expand trade in goods and services, promote digital trade, and support the Women and Youth Protocol of the African Continental Free Trade Area, fostering a more inclusive and resilient economic partnership.
President Biden’s co-hosting of the 2023 African Growth and Opportunity Act (AGOA) Forum with South Africa in Johannesburg further underscored the U.S.’s support for strengthening economic ties with Africa. The administration’s push for the timely reauthorization and modernization of AGOA reflects a desire to adapt the initiative to the changing dynamics of Africa and the global economy. This commitment is part of a broader strategy that includes several programs designed to enhance trade and investment with African countries, highlighting the U.S.’s holistic approach to its partnership with the continent.
Focusing on Nigeria, LeBlanc pointed out the country’s pivotal role in regional and global markets as one of Africa’s largest economies. With two-way trade exceeding $10.6 billion in 2022 and U.S. foreign direct investment totaling $5.6 billion, Nigeria stands as a key trading partner for the U.S. The partnership between the two nations is increasingly driven by technology, with significant U.S. investments in Nigeria’s tech ecosystem and collaborative efforts addressing global challenges across various sectors.
The launch of the Digital Transformation with Africa (DTA) initiative at the U.S.-Africa Business Forum exemplifies the collaborative spirit of the U.S.-Africa partnership. Aiming to expand digital access, enhance commercial relations, and strengthen digital environments in Africa, the DTA initiative aligns with the African Union’s Digital Transformation Strategy. With an initial U.S. government investment of $350 million and plans for further financing, the initiative promises to harness the collective resources of U.S. government departments and agencies, African governments, the private sector, and civil society to foster a more connected and digitally empowered Africa.
As the U.S. and Africa continue to build on their economic and commercial partnership, the mutual benefits of this relationship are clear. What benefits Nigeria, and by extension Africa, benefits the world, reinforcing the importance of continued collaboration and investment to advance shared values and mutual prosperity.
