Enhancing U.S. – African Business Relationships
By Colonel (Retired) Wes Martin
May 15, 2024

Concluded on May 9th, the Dallas community brought together dignitaries and officials from two continents to host the “U.S. – Africa Business Summit.” This was the first time in seven years the Corporate Council on Africa has held the annual event within the United States.

Recognizing the importance of the conference, senior representatives of U.S. State and Commerce Departments came for four days to engage in dialog with ministers of numerous African nations, bankers, and investment firms. The agenda included presentations on strategic infrastructure investment, critical minerals, advancing the digital economy, continuing energy development, agriculture opportunities, unlocking financial resources, health enhancements, and care of the environment.

Congress first established the African Growth and Opportunity Act (AGOA) in 2000 to support economic development and government reform for sub-Saharan nations. As stated in Congressional Research Service’s May 2023 report: “Through AGOA, the U.S. Congress seeks to increase U.S. trade and investment with the region, promote sustainable economic growth through trade, and encourage the rule of law and market-oriented reforms” (IF10149, congress.gov). These annual summits serve to promote the intent of Congress when it passed the AGOA.

African nations do not have a free ride to benefit from preferential treatment through participation in AGOA. Instability, corruption, and violations of human rights will keep an African government from being accepted, and as a result of the annual review process, the U.S. has dropped participants for failing to maintain standards. This review process not only encourages governments to improve and maintain standards, but it also protects potential American investors by exercising a watchdog status. Iraq and Afghanistan have taught the U.S. government hard lessons in the fallacy of pumping money into, and encouraging investors to work with, instable and corrupt governments.

At present, thirty-two African countries meet AGOA qualification standards. In 2015 Congress approved a ten-year program extension, which will expire in September of 2025. Updating and extending AGOA for another ten years is in the best interest of both the United States and developing African countries dedicated to the rule of law and determined to move their nations forward into the 21st Century.

The African continent is also very proactive in financial development. In earning their freedom from European colonization, countries of the continent formed the Organization of African Unity, predecessor of the current African Union. Also formed was the African Development Bank (AfDB), which has maintained an outstanding record in providing loans and grants, validated by its AAA credit rating. That’s one step above the U.S. credit rating.

Critical infrastructures such as potable water, sanitation, transportation, power to include renewable energy, and multiple means of communications have been the major focus points for AfDB. Although these infrastructures are very important for enhanced life support, they also set the foundation for supporting advanced industrial and agricultural development.

Numerous nations of Africa are prime for increased foreign investment and trade. The first, but not final, place potential investors should examine is another annual U.S. government report: 2023 Investment Climate Statements - United States Department of State. These reports are not just advice for potential investors, but are also published to inform rated countries that their own actions are either encouraging or discouraging development.

No African government should want to lead its country back to the days of colonization. Following the revolutions for freedom in both North and South America, European nations turned their attention to land grabs in Africa. Most aggressive were the British, French, Belgians, and Italians. Years of revolutions and reforms finally freed the African nations from their European exploiters. The ongoing difficulty of some governments and regions within Africa is now being exploited by another nation.

The African portion of China’s Belt and Road Initiative is already underway. Commencing in the east coast country of Djibouti, a state-of-the-art railway and highway systems are already being constructed into the resource-rich heartland of Africa. Meanwhile, struggling African governments are being offered lucrative loans by the Xi government. Inability to pay these loans back intensifies China’s grip on each defaulting county. The major difference between what Europe did in the past centuries, is that instead of military, China is conducting financial colonization. The end result will be the same exploitation of Africa’s people and natural resources.

Unlike American, African Union, and African Development Bank standards, China doesn’t care about human rights, environment, and rule of law. The more unstable and corrupt the government, the better the opportunity for Chinese manipulation. Many of these loans are to improve infrastructures, which will benefit China when the exploitation process is complete.

This is a scenario the U.S. – Africa Business Summits strive to prevent. Through established policies and official institutions, the U.S. Government and African Union have established means where wise investments can flourish. Those investment opportunities amidst the free world can succeed without the threat of another age of African colonization.

Enhancing business between the United States and the African continent is not just a matter of long-term trade development offering improved quality of life on both sides of the Atlantic, it’s a matter of long-term global security.

©2024 Wes Martin