•Value of 2-way trade, investment deals in Africa hit $5.7b in 9 months
By Emma Emeozor
The United States-Africa Leaders Summit hosted by President Joe Biden has started yielding results within nine months as the estimated total values of business deals result in $5.7 billion in two-way trade and investment.
United States Under Secretary of Commerce for International Trade, Marisa Lago disclosed this in a virtual meeting with African journalists, orginised by the U.S. State’s Department Africa Regional Media Hub. The former Assistant Secretary of Treasury for International Markets and Development was joined by the Chargé d’Affaires in charge of the U.S. Mission to Nigeria, David Greene.
At the briefing, the Green said that on the economic front, President Bola Tinubu administration is taking and undertaking some of the structural changes that will create the foundation for new influx of U.S. capital investment in Nigeria.
Lago and Green interacted with the media at the end of the Department of Commerce-led Global Diversity Export Initiative (GDEI) Trade Mission to Nigeria, South Africa and Ghana, to enable the duo explain ongoing efforts to deepen U.S.-Africa trade and investment relationship as well as identify new commercial opportunities, as part of the U.S. commitment to the continent.
In Nigeria, Lago participated in an incredibly lively hack-a-thon that was hosted by Microsoft’s Garage, where participants focused on how to grow and promote the development of the electric vehicle, the EV industry. Microsoft’s Garage is a center for company employees, customers, partners, and the public to collaborate in STEM fields.
She also facilitated in a discussion with a group of leading Nigerian women in technology. 21st Century Technologies, a digital infrastructure and services company hosted the discussion. “We discussed best practices for increasing access for women entrepreneurs to venture capital and other resources, to overcome the historic challenge of gross underinvestment in women-owned and women-led businesses.
“During our discussion, I was heartened to see the strong relationships already being formed among our trade mission participants and Nigerian entrepreneurs, fostering deeper commercial collaboration and uplifting women in our communities.
In his remark, Green described the strong relationships already being formed among the U.S. trade mission participants and Nigerian entrepreneurs as a very exciting development “in the U.S.-Nigeria bilateral relationship, especially on the economic front, with the Tinubu administration taking and undertaking some of the structural changes that we think will create the foundation for new influxes of U.S. capital investment and increase two-way trade with Nigeria, and we’re already seeing a renewed interest by U.S. businesses and investors as well as other international investors.”
While assuring that “the United States remains committed to an enduring partnership with Nigeria, one centered on our aspirations for shared prosperity and mutual economic growth,” Green said: “We can talk more if you’d like about the opportunities here in Nigeria, but I’ll just sum up to say that Nigeria’s home to Africa’s largest democracy, population, and economy, and we really believe that Nigeria’s economic growth will bring stability and prosperity not only for the Nigerian people but also across West Africa, where Nigeria is such an economic heavyweight, through cross-border expansion and economic integration, including under the African Continental Free Trade Area.”
Green noted that Nigeria being home to the continent’s largest democracy, population, and economy, its “economic growth will bring stability and prosperity not only for the Nigerian people but also across West Africa, where Nigeria is such an economic heavyweight, through cross-border expansion and economic integration, including under the African Continental Free Trade Area.”
Earlier in her opening remark, Lago announced that the United States-Africa Leaders Summit held in December 2023 was already yielding tangible results. Her words: “And I’m pleased to report that if we look just in terms of trade and investment, since December’s leaders summit and the U.S.-Africa Business Forum that the Commerce Department organized, the Biden-Harris administration has helped close 75 new deals between the United States and African countries.
“We estimate that the total values of these deals result in $5.7 billion in two-way trade and investment. The virtual press conference was held to enable Lago and Greene discuss ongoing efforts to deepen the U.S.-Africa trade and investment relationship and identify new commercial opportunities as part of the U.S. commitment to the African continent.”
She told the forum that for nine days, she has led the U.S. Department of Commerce’s GDEI, to South Africa, to Ghana, and to Nigeria, where “we have been engaging with U.S. companies and African private sector leaders as well as my government counterparts.”
She noted that the current trip was her fourth time on the continent this year, describing the efforts of the Mission as “a highly productive and professionally enriching visit to Africa.”
She also drew attention to numerous senior-level government visits to the continent since the United States-Africa Leaders Summit. They include visits by Vice President Kamala Harris, First Lady Jill Biden, Secretary of State Antony Blinken, Treasury Secretary Janet Yellen, U.S. Ambassador to the United Nations Linda Thomas-Greenfield, and in the last month (July) alone the CEO of the U.S. Development Finance Corporation, Scott Nathan, and the head of the U.S. Trade and Development Agency, Director Enoh Ebong, and Acting Deputy Secretary of State Victoria Nuland.
According to Lago, the trade mission has brought over 20 U.S. companies and organizations, mostly owned by members of the African diaspora in the United States. “These companies are active in a wide range of sectors, starting with the information and communications technology sector, cyber security, electric vehicles, energy, trade facilitation, and consumer goods, “she said.
While stressing that the “trade mission serves as an example of how intentionally we’re working to deepen and sustain connections between U.S. and African companies, “she said, “I’ve also advanced policy objectives aimed at aligning our U.S. approaches with those of the governments of South Africa, Ghana, and Nigeria.”
What is the goal? Lago asked rhetorically. She was quick to answer the question, saying it was to mitigate potential barriers that can hamper trade and investment. “For example, in South Africa, I engaged with my government counterparts and private sector colleagues to explore potential solutions and opportunities in the infrastructure, healthcare, and ICT sectors with a special focus on supporting women in technology fields.
“In honor of South Africa’s National Women’s Day, I met with South African tech entrepreneurs at WomHub, which is a pan-African incubator for female founders in STEM: science, technology, engineering, and mathematics, where we discussed opportunities for early and mid-stage startups to find opportunities for advancement and to be able to scale up in the U.S. market.”
Continuing, she said, “I also met with several established women business leaders to learn from their experiences, to hear about their challenges, and also the opportunities that they saw in the South African market. In Accra, we participated in the inaugural U.S.-Ghana Business Expo, which was hosted by the American Chamber of Commerce in Ghana.
Expectedly, the opportunities and challenges of digital economy dominated the conversations between the trade mission and the private sector of all the countries visited. The Under Secretary said that these conversations are going to remain critical to advancing progress under the U.S.’s Digital Transformation with Africa, or DTA.
“This is an initiative that President Biden announced at last September’s U.S.-Africa Business Forum. DTA aims to expand digital access and literacy, and also to strengthen the digital-enabling environments across Africa, all in line with the African Union’s Digital Transformation Strategy and the U.S. Strategy Towards Sub-Saharan Africa,” she said.
Will the U.S. Commerce Department sustain the tempo being set now? Lago was confident when she said: “As we move forward, the U.S. Commerce Department is going to continue bringing U.S. companies to the continent, engaging in these critical dialogues which will foster an enabling environment for increased trade and investment and also working towards our shared goal of mutual economic prosperity for citizens of both of our nations.”
But why did the trade mission choose to visit Nigeria, South Africa and Ghana? Lago said it was three countries were large economies on the continent. “We wanted to make sure that we selected countries whose economies had a strong presence in sectors that had strong prospects for U.S. companies, where there was the ability to match up the U.S. companies on this trade mission with companies in those countries,” she explained.
She also explained how Nigeria and other target countries of Africa would benefit from the U.S. Global Diversity Export Initiative. “By tapping into our diaspora communities, by tapping into our women-led businesses, we think that we will have the opportunity to engage with countries across the African continent, and by doing so, take advantage of these diaspora ties, these ties of culture and again, by doing so, expose U.S. companies, including some very small companies but with very cutting-edge solutions, to the opportunities that are present here in Africa,” she said.
On the possibility of lifting sanctions imposed on Russia so as to address the adverse effect of the war in Ukraine on the shipment of grain to Africa, Green said, “there is no threat to grain supplies posed by U.S. sanctions. It’s Russia’s actions that are driving up prices and making food supplies and food security that much harder to come by.”
According to him, “it is Russia’s withdrawal from the Black Sea Grain Initiative that makes very, a week before their summit with Africa, makes very, very clear Russia’s choice to imperil global food security and price stability, to punish Ukraine, and at direct detriment to the interests of the people of so many countries around the world but especially here in Africa.”
Lagos used the media briefing to enlighten the African public on the U.S. Department of Commerce commercial relationships. She said that in addition to focusing on enhancing the competitiveness of U.S. exporters, the Department of Commerce also work on attracting foreign direct investment into the U.S.
According to her, every year the Department of Commerce holds a SelectUSA Investment Summit near Washington, D.C. This is a major undertaking.
Last year it attracted 4,900 participants from over 80 different countries around the globe.
She said that, “these investors range from the largest sovereign wealth funds to multinationals from other countries but, importantly, also tech investors in startup countries around the globe who saw the potential to expand into the vibrant and large U.S. market.
“And if I might note that one of the largest delegations came from right here in Nigeria; I had the pleasure of meeting with this delegation, and it was comprised of some of the country’s most innovative companies.”