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Yahoo
8 hours ago
- Business
- Yahoo
The contradictions of Trump's 'commercial diplomacy' in Africa
When I told the head of an Africa-focused startup that I was going to be in Luanda, Angola for the US-Africa Business Summit earlier this week, their quip was revealing: 'So the US still does business with Africa?' That tongue-in-cheek skepticism was absent from the nearly 3,000 people in attendance as a flurry of deals across the continent were announced. President Donald Trump's administration has been keen to champion commercial diplomacy and 'trade not aid' so his top Africa lieutenants Massad Boulos and outgoing Africa bureau chief, Troy Fitrell flitted around for deal photo ops and to champion the US private sector. Witney Schneidman, a board member of the Washington-based organizer, Corporate Council on Africa, said the high attendance suggested 'the new approach is well-timed.' But concerns remain. The chaotic shuttering of USAID by Trump and Elon Musk and the still unfolding humanitarian fallout in several African countries has unsettled many. There's also the likely end of the AGOA preferential trade policy, then there's the overwhelming focus on African citizens facing US visa restrictions. On the opening day, the new African Union Commission chair Mahamoud Ali Youssouf, slammed the Trump administration's visa and trade approach. Jackie Chimhamnzi, regional director for southern Africa at the Tony Blair Institute said: ' It remains to be seen if the US is incentivized to respond to this unified moment of candor by African leaders' A decades-long American investor in Africa, who spoke with me on condition of anonymity so he could be frank, said he largely believes the commercial approach is working so far, but he still sees Trump's attitude toward Africa as 'atrocious' and called the visa constraints 'absurd.' He added: 'Somebody, maybe Boulos, needs to tell him that this directly hurts US business.' When Beijing announced earlier this month in the central Chinese city of Changsha that it would remove all tariffs on exports from 53 of Africa's 54 countries, it handily won a global news cycle. Much of mainstream US media — and even longtime US-Africa watchers — were handwringing over China's growing influence in Africa, even as the US put up more trade barriers that essentially ended the 25-year old AGOA preferential trade pact. But a closer look at China's plan shows it wasn't actually as dramatic a policy change as the headlines suggested. China already allowed 33 low-income African counties to export tariff free. This announcement just meant all countries except eSwatini (because it recognizes Taiwan). It's not even a guarantee to happen, writes China Global South Project's Christian Geraurd Neema: 'The reality is more nuanced,' he says. 'China says it is 'ready' to act,' not that it has agreed to act, he argued. It's all subject to negotiations and a new economic partnership, he explained.
Russia Today
10 hours ago
- Business
- Russia Today
The US has just declared economic war on Africa. It will backfire
In April, US President Donald Trump implemented new tariff policies, imposing a maximum of 50% on goods entering America from African countries. They previously enjoyed free access benefits from the Africa Growth and Opportunity Act (AGOA), which, according to the Center for Global Development, used to provide sub-Saharan African countries with duty-free access to over 7,000 products. In 2023, the Office of the US Trade Representative reported that the US imported goods worth $9.7 billion under the AGOA, with South Africa ($14.0 billion), Nigeria ($5.7 billion), Ghana ($1.7 billion), Angola ($1.2 billion), and Cote d'Ivoire ($948 million) being Africa's biggest exporters. But with a 10% universal tariff now imposed on all African nations, experts believe the AGOA may have come to an end. However, the same experts also say Africa's market of 1.4 billion people can serve as the best response to external economic shocks caused by Trump's trade tariffs. Dr. Francis Owusu, a trade economist at the University of Ghana, notes that with the new tariffs, 'Trump not only made AGOA lame, but also prepared it for eventual death.' 'There is no way AGOA will be beneficial to African countries with the new tariffs in place. It makes no sense at all,' Dr. Owusu said. 'Trump's tariff policy rendered AGOA meaningless.' Dr. Owusu says that, instead of lamenting over Trump's tariff actions, African leaders must breathe life into the African Continental Free Trade Area (AfCFTA). 'What Africa needs is regional trade and economic resilience. With a population and market of over one billion people, African leaders must shift focus and use regional instruments like AfCFTA to build and insulate the continent's economy,' he told RT. According to the expert, by imposing new trade tariffs on African exports, 'Trump did Africa a big favor.' Launched in 2021, the AfCFTA boasts an estimated combined GDP of $3.4 trillion and a market of 1.4 billion people, making it the world's largest free trade area by number of participating countries. But despite the existence of the AfCFTA, intra-African trade remains below par. As of April 2025, it accounted for only 18% of total continental trade. According to Afreximbank's Africa Trade Report 2024, intra-African trade in 2023 was $192.2 billion, a 3.2% increase from the previous year. In the same year, the share of formal intra-African trade increased from 13.6% in 2022 to 14.9%. Projections by the UN Economic Commission show that a full implementation of the AfCFTA could push intra-African trade to 35% by 2045. Faith Atieno, a trade policy analyst with Kenya's Institute of Economic Affairs, argues that a lack of political will and trust among member states has hampered the full implementation of the AfCFTA. 'Africa must address existing structural barriers and disjointed customs regulations if it wants to realize its full trade potential,' Atieno told RT. She added that to unlock its dormant trade power, the continent should also invest in the enhancement of its industrial capacity and logistics infrastructure. 'For AfCFTA to succeed, Africa must start trading as a continent and invest in regional value chains. Member states must stop prioritizing trade deals with Europe and the US,' she said. According to Atieno, there is no reason why a country like Kenya cannot export its textiles and horticultural products to countries like Nigeria, Egypt, and Ghana. 'Why should African nations continue having trade barriers among themselves when they can all benefit from this ripe and huge market?' In the wake of Trump's actions, African countries are taking insulating measures. In Nigeria, the Export Promotion Council has already announced a new policy to ease bureaucratic barriers and enhance intra-African trade for its textiles, cocoa, and pharmaceutical products. Regarded as Africa's largest economy, Nigeria is among the member states that have lagged in the implementation of the AfCFTA. On the other hand, Ghana, through the Ghana Export Promotion Authority, is prioritizing intra-African trade in the implementation of the National Export Development Strategy, which aims to create a $25 billion export economy by 2029. Yodit Hailemariam, a development economist based in Addis Ababa, says Africa's trade and economic future rests in regional integration. 'As a continent, we have a promising future. Regional integration must now move from theory to reality. Regional blocs must start aligning their industrial and trade policies for intra-African trade to be effective and beneficial,' she told RT. 'For AfCFTA to succeed, we will need strong and powerful regional and continental value chains.' Afreximbank already has a $2 billion Intra-African Trade Resilience Fund to help exporters build continental logistics hubs to boost intra-continental trade. And with the African Union set to host an emergency trade summit in August 2025 in Nairobi to discuss unified responses to global trade shocks, Dr. Owusu says Trump's tariffs on African countries are a 'statement of economic freedom and independence for the continent.' A 2022 research report published by the World Bank Group forecasted that full implementation of the AfCFTA could lift at least 50 million Africans out of extreme poverty by 2035. Wamkele Mene, who heads the AfCFTA secretariat, says that to fully benefit from the protocol, member states need to focus on innovation and economic development, which requires the integration of government, industry, and academia to foster innovation and economic development. 'We urgently must address existing challenges to continental trade, enhance trade capabilities and develop sector-specific technologies,' Mene said. 'What we need are policies that promote intra-African trade and cooperation, tax incentives as a catalyst for propelling Africa towards greater economic integration.' Mene says that through the AfCFTA, Africa has a chance to accelerate the realization of the African Union Agenda 2030 goals and try to establish a sustainable economic foundation for future generations.
Al-Ahram Weekly
13 hours ago
- Business
- Al-Ahram Weekly
Jason Miller outlines Trump's Africa trade vision at Afreximbank meetings - Economy
Speaking before policymakers, financiers, and industry leaders, Miller said Africa's rise hinged on strategic choices. In a conversation with Viswanathan Shankar, CEO of Gateway Partners, he analyzed America's evolving trade posture and its implications for the continent. Miller began by stating that Africa will surpass Europe as the world's third-largest economic bloc by 2050. He added that Nigeria would rank among the top ten global economies. By 2100, sub-Saharan Africa will host four of the world's most populous nations, Miller predicted, positioning the continent as an economic superpower. "This is Africa's century," he declared, "but if these opportunities aren't seized strategically, Africa risks being taken advantage of again." Miller contrasted US engagement with that of other global players. He criticised decades of exploitative practices where outsiders "took, took, took, leaving broken promises." By contrast, America, he argued, aims for strategic partnerships anchored in private capital with no debt traps, military occupations, or hollow rhetoric. The distinction lies in market-driven investments, which demand mutual accountability, unlike what Miller termed "debt diplomacy." Miller outlined non-negotiables for nations seeking a partnership with the US. First, Africa must demand tangible value over empty deals, avoiding unsustainable debt disguised as aid. Partnerships should prioritise foreign direct investment in future-proof infrastructure: roads, ports, data centres, and clean energy. He highlighted Africa's critical minerals and youthful workforce as key factors in dominating the AI supply chain, the impact of which he likened to that of the Industrial Revolution. Second, accelerating business climate reforms is essential. Enforcing contracts, stabilising currencies, and rooting out corruption are not just suggestions but "the price of admission" for attracting trillion-dollar US pension funds and private capital. While praising Nigeria's "gutsy" currency reforms, Miller urged broader, faster action continent-wide. Third, Africa must choose allies wisely. Miller drew sharp contrasts between China's record of "unregulated fishing, environmental disasters, and crippling debt" and the US's contributions such as PEPFAR's HIV/AIDS support, security cooperation against groups like Boko Haram, and conflict mediation in hotspots like the DRC-Rwanda border. True friendship, he stressed, respects sovereignty and borders without exploitation. Furthermore, Miller decoded recent US moves. He explained that the African Growth and Opportunity Act (AGOA), set to expire in September 2025, faces an uncertain future. "Why renew one-way preferences," he noted, "if African nations impose tariffs on US goods or favour Chinese partners?" His solution: proactive renegotiation focused on reciprocity. Miller defended Trump's signature tariffs as multipurpose tools for protecting strategic industries such as auto manufacturing ("a US national security issue") while forcing fairer trade terms. Meanwhile, he emphasized that the US Development Finance Corporation (DFC) emerges as Africa's catalyst, deploying profit-driven investments in projects such as the Lobito Corridor and the Mozambique LNG project. "This is revenue-generating capital, not debt," Miller emphasised, urging reforms to unlock giants like BlackRock and CalPERS. Miller offered advice to African leaders on how to deal with the US. He stressed the importance of preparation before meetings. He also underlined identifying President Trump's priorities before meetings by following his Truth Social Platform. In addition, Miller advised African leaders to engage with specific asks and solutions, and shun "photo-ops." He urged them to emulate Gulf states such as Saudi Arabia and the UAE, whose investment commitments and peace-building efforts earned early presidential visits. Moreover, he encouraged them to push CEOs and investors, not just bureaucrats, to amplify Africa's economic narrative globally. In conclusion, Miller called for Africa's potential to be translated into provable partnerships through renegotiating AGOA terms for mutual benefit, fast-tracking business reforms to attract private capital, and demanding infrastructure-for-minerals deals to build AI capacity. He also urged African leaders to proactively engage the DFC on bankable projects and, above all, to champion stability, the bedrock of investment. In closing, Shankar revealed that Miller has been appointed Senior Adviser to Gateway Partners to "bring American capital to Africa's future industries." Follow us on: Facebook Instagram Whatsapp Short link:
Zawya
3 days ago
- Business
- Zawya
US envoy plays down Africa tariff, visa concerns, reaffirms Lobito rail commitment
LUANDA - The top U.S. diplomat for Africa on Tuesday dismissed allegations of unfair U.S. trade practices and said that funding delays would not derail a key railway project connecting Angola, Zambia and the Democratic Republic of Congo. African Union officials on Monday questioned how Africa could deepen trade ties with the United States under what they called "abusive" tariff proposals and tightening visa conditions largely targeting travellers from Africa. "There is no visitation ban," Ambassador Troy Fitrell said during a press conference at the U.S.-Africa Business Summit in Luanda. He said that U.S. consulates continue issuing visas regularly, although some now come with shorter validity periods due to concerns over overstays. Several African business and political leaders have raised concerns about a sharp drop in visa approvals, particularly for travellers from West Africa, since late 2023. Washington's tariff plans have also added to cooling diplomatic ties with African countries, as some economies — including Lesotho and Madagascar — warned that even a baseline 10% levy could threaten critical exports such as apparel and minerals. But Fitrell said that the proposed U.S. import tariffs were not yet implemented, and negotiations were ongoing to create a more reciprocal trading environment, including through the renewal of the African Growth and Opportunity Act (AGOA). The initiative grants qualifying African nations duty-free access to the U.S. market and is due to expire in September. Fitrell also reaffirmed his country's commitment to the Lobito Corridor railway project, which links Angola's coast to copper-rich Zambia and the Democratic Republic of Congo. "It's not at risk," he said of the initiative, describing it as a "win-win" for U.S. investors and African economies, and underscoring its significance for regional integration. The Trump administration has axed swaths of U.S. foreign aid for Africa, as part of a plan to curb spending it considers wasteful. Angolan President João Lourenço, addressing more than 2,000 government and business leaders at the summit, said U.S. companies should shift from aid to investment-driven partnerships. "It is time to replace the logic of aid with the logic of investment and trade," Lourenço said, urging diversification into sectors such as automotive manufacturing, shipbuilding, tourism, cement, and steel production.
Straits Times
3 days ago
- Business
- Straits Times
US envoy plays down Africa tariff, visa concerns, reaffirms Lobito rail commitment
LUANDA - The top U.S. diplomat for Africa on Tuesday dismissed allegations of unfair U.S. trade practices and said that funding delays would not derail a key railway project connecting Angola, Zambia and the Democratic Republic of Congo. African Union officials on Monday questioned how Africa could deepen trade ties with the United States under what they called "abusive" tariff proposals and tightening visa conditions largely targeting travellers from Africa. "There is no visitation ban," Ambassador Troy Fitrell said during a press conference at the U.S.-Africa Business Summit in Luanda. He said that U.S. consulates continue issuing visas regularly, although some now come with shorter validity periods due to concerns over overstays. Several African business and political leaders have raised concerns about a sharp drop in visa approvals, particularly for travellers from West Africa, since late 2023. Washington's tariff plans have also added to cooling diplomatic ties with African countries, as some economies — including Lesotho and Madagascar — warned that even a baseline 10% levy could threaten critical exports such as apparel and minerals. But Fitrell said that the proposed U.S. import tariffs were not yet implemented, and negotiations were ongoing to create a more reciprocal trading environment, including through the renewal of the African Growth and Opportunity Act (AGOA). The initiative grants qualifying African nations duty-free access to the U.S. market and is due to expire in September. Fitrell also reaffirmed his country's commitment to the Lobito Corridor railway project, which links Angola's coast to copper-rich Zambia and the Democratic Republic of Congo. "It's not at risk," he said of the initiative, describing it as a "win-win" for U.S. investors and African economies, and underscoring its significance for regional integration. The Trump administration has axed swaths of U.S. foreign aid for Africa, as part of a plan to curb spending it considers wasteful. Angolan President João Lourenço, addressing more than 2,000 government and business leaders at the summit, said U.S. companies should shift from aid to investment-driven partnerships. "It is time to replace the logic of aid with the logic of investment and trade," Lourenço said, urging diversification into sectors such as automotive manufacturing, shipbuilding, tourism, cement, and steel production. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
