The USA’s Africa Policy
Whatever happens in the US Presidential race, which is not yet finalized at the time of writing this Newsletter, it is clear that the AGOA (The African Growth and Opportunity Act of 2000) may not continue beyond 2025 and that the USA’s strategy is shifting to build stronger partnerships in Africa; including promoting investment and economic growth through the newly established Development Finance Corporation (DFC). Since its launch at the beginning of 2020, DFC has invested more than $8 billion in 300 projects in Africa, along with the U.S. Agency for International Development, which is working on $10 billion worth of deals. DFC replaces the Overseas Private Investment Corporation. The DFC has a funding base of $60 billion to invest in re-insurance, debt, and equity, and a mandate to support both American-led projects and African-lead projects.
Other initiatives include the Prosper Africa programme, which which spans 17 U.S. government agencies and has facilitated more than $22 billion worth of deals in more than 30 African countries, with agreements focusing on African SMEs businesses. Prosper Africa assists US and African businesses and investors identify investment support services such as financing, advocacy, feasibility studies, and advisory services. Congress also overhauled the US Export–Import Bank, which in 18 months has authorized more than 40 deals in sub-Saharan Africa.
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