‘We Can Earn Extra $59 Billion’ — Blinken Reveals Six Ways U.S. Is Boosting Trade With Africa

Antony Blinken, the United States Secretary of State, said Wednesday that Africa and the U.S. can earn additional $34 billion and $25 billion in revenues respectively if both increased trade between them “by just 1 percent”.

Blinken stated this at the ongoing U.S.-Africa Leaders’ Summit taking place in Washington, D.C.

The summit which kicked off Tuesday provides African leaders and their U.S. counterparts the opportunity to discuss various topics, including trade and investment, health and climate change, as well as peace, security, and governance, among others.

At least 300 African and American CEOs, entrepreneurs, and investors are attending the summit to explore investment opportunities in critical sectors, including infrastructure, energy, agribusiness, and the digital sector.

Delivering his remarks at a Business Forum Lunch held at the Walter E. Washington Convention Center, Washington, D.C., Blinken noted that trade between African nations and America in 2021 totaled more than $80 billion and provided hundreds of thousands of jobs for workers in both countries.

While recognizing challenges facing the continent to include changing costs of commodities, supply chain issues caused by COVID, and integration of rapidly evolving technologies, Blinken however said there are opportunities that if tapped by the U.S and Africa can result in “one of the 21st century’s most successful economic partnerships”.

He said Africa can build “one of the most talented workforces” and create “one of the most dedicated consumer bases” if its younger workforce can be provided with the right atmosphere to showcase their skills.

The U.S Secretary stressed that with improved business relationships and resultant increase in “our share of imports and exports by just 1 percent, we would generate an additional $34 billion in revenue for Africa, $25 billion in revenue for the United States – and create more than 250,000 good-paying jobs as a result.”

Blinked revealed the following six areas already being taken into consideration by the U.S to boost trade and investment ties with the African continent:

“First, the State Department and our colleagues, the Commerce Department, other agencies – we’re going to be organizing more commercial diplomacy trips, where leaders from across the U.S. Government and our private sector can work together to better identify African partners and source business opportunities together.

“Second, we will step up our economic diplomacy efforts. We’re working with the Business Council for International Understanding to enhance the abilities of our embassies to identify suitable local partners and to assess investment conditions on the ground.

“For us, having this diplomatic presence around the world and in virtually every part of Africa is also a critical and unique asset for finding ways to strengthen the trade and investment relationships between our countries, to actually help identify opportunities for American business and, as a result, opportunities for Africa.

“Third, we’ll expand our work in all parts of the investment pipeline – from fostering investment opportunities, to promoting viable deals, to helping to close those deals.

“One example: We’ll be investing more in rising African innovators. As Vice President Harris announced yesterday, we’re relaunching the African Women Entrepreneurship Program, which will distribute grants to help African women entrepreneurs grow their businesses. We know from experience that this can be a very powerful source of growth, a very powerful source of opportunity.

“We’re also funding a new Investment Advisor to the Secretariat of the African Continental Free Trade Area, whose primary responsibility is to connect American companies with business opportunities in African nations.

“Fourth, we’ll continue our work with African partners to bolster the building blocks of a strong business environment. We hear, we know from our own companies, what they’re most looking for, what they most need to move forward with investment: clear and consistent tax regimes, protecting intellectual property rights, efficient customs processes. We know that predictability, transparency – these are the things that make it easier to attract capital. That’s good for African companies; it’s good for African workers.

“Fifth, as investors look for ways to manage risk while moving into new markets and new industries, we will help them draw on the best practices of U.S. investors and firms that have already done so successfully – including many of you who are here in this room today.

“Finally, we will help channel more U.S. private sector investment to the vast growth industries across African nations, including in clean energy, in health care, in the digital sectors. We’re doing that through programs like Power Africa, which has already connected more than 165 million people in Sub-Saharan Africa with cleaner, more reliable electricity.

“We’re doing it through new initiatives as well, including the Partnership for Global Infrastructure and Investment, where we’re teaming up with our partners in the G7 as well as with African host governments to drive investment in areas that will lead the 21st century economy: from the digital economy, to health and energy security, to transportation infrastructure.”

The U.S Secretary further used the opportunity to announce the launch of the “Technical Assistance for Bankable Infrastructure program” which is aimed at boosting private sector investment in Africa’s growth sectors.

“This program will make it easier for the U.S. private sector to provide technical assistance to partner African governments so that African officials can better identify commercially viable infrastructure projects. It will create a process for both parties to pursue these projects together,” he said.