American Africa

The upcoming Presidential Election in the USA is triggering concerns about the future of the relationship between the USA and Africa, even though both main contenders have, in practice, supported investments on the Continent.

In 2018, the Trump administration passed the BUILD Act, transforming OPIC into DFC and increasing its investment limit by US$31 billion. Sub-Saharan Africa represents the largest share of DFC investments. This was broadly seen as a response to Chinese presence and significant investments in the region.

In 2022, the Biden administration introduced the DTA initiative at the U.S.-Africa Leaders Summit, to expand digital access and literacy and strengthen digital enabling environments across Africa. This was followed by a multi-country (Ghana, Tanzania, and Zambia) by vice-President Harris in 2023, where she pronounced that “African ideas and innovations will shape the future of the world…. And so we must invest in the African ingenuity and creativity”.

It remains to be seen which way this support will go from 2025 onwards.

Investments (private and public, including by DFIs) in infrastructure, energy, digital economy, and the development of a stronger SME ecosystem (the best way to create jobs for the young African population), are critical for the development of all 54 countries of the Continent. Billions of USD are needed and billions of USD are available, and we need to find a way to accelerate the deployment of that capital.