News

Breakdown of How US Has Utilised $14.2 Billion Investment in Africa in 2023

The United States said Wednesday that it had signed record trade deals with Africa this year, worth a total of $14.2 billion, against the backdrop of a battle for influence with China on the continent.

Nearly 550 new trade and investment agreements were signed, representing a 67% increase over 2022 in terms of number and value, said British Robinson, coordinator of the US-led Prosper Africa trade initiative.

“We’ve had a record year for U.S.-Africa relations,” said Judd Devermont, White House official in charge of sub-Saharan Africa, during an online press conference organized a year after a summit with African leaders at which U.S. President Joe Biden pledged to “pull out all the stops” on the continent.

In December, Washington pledged to invest $55 billion over three years in Africa. This strategy is aimed in particular at countering the growing presence of China, which has made inroads in infrastructure construction, investments and loans.

The United States has already achieved over 40% of these commitments, Mr. Devermont pointed out. “By the end of the second year, we expect to exceed at least 70% of our targets,” he added.

In 2023, the United States demonstrated its commitment to fostering economic development and partnerships in Africa through various initiatives and investments. The International Development Finance Corporation (DFC), the U.S.-Trade and Development Agency (USTDA), the U.S. Department of Commerce, Prosper Africa, the President’s Advisory Council on Doing Business in Africa (PAC-DBIA), and the Millennium Challenge Corporation (MCC) supported infrastructure, trade, and economic growth across the continent.

The DFC’s $2 billion investment in Africa has significantly impacted development, including infrastructure, job creation, small business growth, agricultural productivity, improved health outcomes, and access to critical minerals.

USTDA has funded fifteen project preparation grants, leveraging over $3.4 billion in infrastructure finance across Africa, to stimulate private sector investment and address critical infrastructure needs.

The U.S. Department of Commerce facilitated $3.6 billion in U.S. exports to Africa in 2023, focusing on sectors like digitization, clean tech, creative industries, and infrastructure, fostering long-term commercial partnerships.

Prosper Africa secured $274 million in long-term financing for West Africa’s housing sector, fostering U.S. investment and addressing the region’s critical need for affordable housing.

This year President Biden announced MCC investment eligibility for The Gambia, Togo, Senegal, and Mauritania to unlock economic growth constraints in these countries.

The MCC signed a $500 million compact program with Mozambique and a $60 million threshold program with Kenya, highlighting its focus on sustainable development and infrastructure enhancement in Africa.

2022 Trade Deals – Kenya

In 2022, U.S. goods exports to Kenya increased by 8.1%, while imports reached $875 million, a 27.7% increase from 2021, and a 123.7% increase from 2012.

In a similar year, U.S. FDI in Kenya (stock) decreased by 9.5% compared to 2021.

Tanzania

In 2022, U.S. goods exports to Tanzania decreased by 7.9% from 2021, while imports increased by 67.5% from 2012, and the trade surplus decreased by 47.9%.

U.S. foreign direct investment (FDI) in Tanzania (stock) was $1.4 billion in 2022, a 3.5 percent increase from 2021.

Rwanda

U.S. goods exports to Rwanda increased by 30.6%, while imports increased by 82.9% in 2022. However, the U.S. goods trade surplus decreased by 58.5% to $8 million.

South Africa

In 2022, U.S. trade with South Africa reached $25.5 billion, with $9.3 billion in exports and $16.2 billion in imports, and a $6.9 billion trade deficit.

Monitor Your Business Transaction

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

25 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button