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US closes 75 investment deals in Africa in only six months

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In only six months since the U.S.-Africa Leaders Summit in December 2022, the Biden-Harris Administration has closed 75 new deals between the United States and African countries for a total estimated value of USD5.7-billion in two-way trade and investment. Image credit: Wikimedia Commons

US closes 75 investment deals in Africa in only six months

In only six months since the U.S.-Africa Leaders Summit in December 2022, the American Administration has closed 75 new deals between the United States and African countries for a total estimated value of USD5.7-billion in two-way trade and investment.

In December 2022, President Joe Biden hosted leaders from across the African continent for the U.S.-Africa Leaders Summit in Washington, DC. At the Summit, business and government leaders committed to catalyse trade and investment deals and partnerships which will create jobs and foster shared prosperity for people across the African continent and the United States.

Last week at the U.S.-Africa Business Summit hosted by the Corporate Council on Africa and the Government of Botswana, the U.S. delegation announced that since 2021, the U.S. Government has helped close more than 900 deals across 47 African countries for a total estimated value of USD22-billion in two-way trade and investment.

As the Administration’s flagship infrastructure initiative, the Partnership for Global Infrastructure and Investment (PGII) is helping to advance and scale several of these public and private investments across the continent.

The U.S. delegation also marked significant progress in delivering on the USD15-billion in commitments made by business and government leaders at the U.S.-Africa Leaders Summit in December 2022, as well as the additional USD8-billion in private sector commitments and USD1-billion in U.S. Government commitments made in conjunction with Vice President Kamala Harris’s visit to Ghana, Tanzania, and Zambia in March 2023.  These mutually beneficial partnerships advance shared priority areas, including sustainable energy, health systems, food security/agribusiness, digital connectivity, infrastructure, and finance.

Key achievement since December 2022 (US closes 75 investment deals in Africa in only six months)

The key achievements since December 2022 include the following:

  • Since December, the Export-Import Bank of the United States (EXIM) has authorised approximately USD1.6-billion of transactions supporting exports to Africa.  During the Vice President’s recent trip to the region, EXIM and the Government of the United Republic of Tanzania announced a Memorandum of Understanding (MoU) to facilitate up to USD500-million in U.S. export financing to Tanzania.  In June, EXIM approved an initial USD900-million in financing for two solar projects to generate over 500 megawatts of renewable power and provide access to clean energy resources across Angola, estimated to support 1,600 jobs.
  • Since December, the U.S. Trade and Development Agency (USTDA) has funded eight feasibility studies since the Summit to advance the implementation of over USD1-billion in digital connectivity, clean energy, and healthcare infrastructure projects on the continent.  In addition, USTDA arranged reverse trade missions focused on airport infrastructure and last-minute connectivity, with the intent to connect African public and private sector representatives with the latest U.S. technologies, services, and financing solutions.
  • Since December, the U.S. International Development Finance Corporation (DFC) has committed nearly USD110-million in financing to projects across the continent.  This builds on DFC’s announcements from the Summit of USD369-million in new active commitments across Africa, more than USD2.4-billion in active commitments to support development projects across Africa since the beginning of the Biden-Harris Administration, and a total portfolio in Africa of more than USD11-billion as of December 2022.
  • The Digital Transformation with Africa (DTA) Initiative established the African Digital Policy Council to coordinate this signature USD800-million initiative’s investment in the continent’s digital future.  Vice President Harris in April issued a “call to action” to the private sector and philanthropic community to make direct investments and social impact commitments to advance digital inclusion in Africa.  This work will directly support DTA’s aim to make sure that people across Africa can participate in the global digital economy.
  • In April, Prosper Africa, in partnership with the U.S. Agency for International Development (USAID) launched the Africa Tech for Trade Alliance and seen the close of USD274-million in long-term financing for affordable housing across West Africa.  With USAID, the Prosper Africa initiative has launched Buyer-Supplier Partnerships across the continent; rolled out a Catalytic Investment Facility in partnership with nine African funds; and launched Continental Services that support business in maximising opportunities under the African Growth and Opportunity Act (AGOA) and African Continental Free Trade Area (AfCFTA).  Last week, the Administration announced British A. Robinson as the new Prosper Africa Coordinator.
  • The Millennium Challenge Corporation (MCC) and USAID, in partnership with Prosper Africa, closed a deal with Moroccan Government-owned financial institution La Société Nationale de Garantie et du Financement de l’Entreprise (commercially branded as Tamwilcom) to expand a green credit guarantee product in Morocco that will unlock commercial bank lending for small businesses to invest in climate-friendly projects in the country’s industrial zones, unlocking up to USD100- million in guarantees, mobilising up to USD160-million in commercial loans, and catalysing up to USD200-million in private investment.
  • Since the launch of the U.S.-Africa Clean-Tech Energy Network (CTEN) in December, 24 U.S. clean-tech companies have joined the network, strengthening the cleantech ecosystem to improve energy access through power generation, newly established electricity connections, and spurring U.S. clean energy exports.  Power Africa‘s Health Electrification and Telecommunications Alliance (HETA), a public-private partnership, is investing USD47-million to leverage more than USD150-million of private sector resources to install reliable, renewable power and provide mobile network and internet access for at least 10,000 health facilities across sub-Saharan Africa.  CTEN,coordinated by Power Africa and Prosper Africa, launched at the U.S.-Africa Leaders Summit, links clean technology energy companies in the U.S. and Africa with the goal of closing USD350-million of new clean energy deals over the next five years.
  • Since December, the U.S. Small Business Administration (SBA)approved over USD9-million in export loans to support U.S. small business exports to the continent.  These loans together supported nearly USD20-million in U.S. small business goods and services sales to North and Sub-Saharan African customers.

Since announcing their commitments at the U.S.-Africa Leaders Summit in December 2022, businesses and investors have closed on deals across the continent.  A full progress report on the trade and investment commitments made at the U.S. Africa Leaders Summit and as part of Vice President Kamala Harris’ visit to the continent can be accessed here: https://www.prosperafrica.gov/u-s-africa-leaders-summit-progress-report/

US closes 75 investment deals in Africa in only six months

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US closes 75 investment deals in Africa in only six months

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