Between August 4 and 6, 2014, more than 40 African leaders attended a summit in Washington DC presided over by President Barack Obama. The summit, tagged US-Africa Summit, is significant in many respects. First, it is expected to strengthen American ties to a continent that is expected to outpace China and India in population by 2040 and is widely viewed as the world’s last major economic frontier. Second, it is expected to push back against other countries doing business in Africa, especially China, which is investing heavily in infrastructure projects and using the continent as a source of vital oil and metals. And lastly, it is to offer an opportunity to counter critics who say Obama has devoted insufficient attention to the continent of his forebear.
We think these expectations were met after three days of robust engagements between the United States and Africa. At least, new hopes have been rekindled for what all sides expect will be a significant increase in trade and commerce between the America and Africa. Currently, the total amount of USAfrica trade stands currently at $60 billion; paltry in comparison with the hundreds of billions of dollars in trade China and the European Union have with Africa.
Following the summit, the Obama administration announced more than $33 billion in investment pledges. The biggest announcement was that private US companies are to invest $14 billion in ‘US Power Africa’, an initiative by the Obama administration to increase electricity output and access in the continent. There are now agreements worth 2,800MW sewn up with another 5,000MW potentially on the way. Buoyed by the billions of dollars, the initiative has vowed to expand electricity production in the continent by another 30,000MW, thereby putting 60 million African households on the grid. That is a significant amount of money to address a very big problem.
About seven out of every 10 Africans do not have access to regular and reliable electricity and the continent cannot industrialise and create jobs by candlelight or wood. In addition, the US pledged money to support governments on the continent to improve their peacekeeping capabilities. This is useful and will support attempts by African governments to act as the first line of defence in regional conflicts, even as Washington says it is keen to engage the continent’s entrepreneurs for jobs creation and growth.
At the end of deliberations, many African leaders said they welcomed a renewed American focus on investing in their continent and were encouraging administration officials and potential investors to move beyond extracting ores and minerals like gold and coal, oil and natural gas. They cited the need for infrastructure build-up, job training and technical assistance, access to markets, sustainable development and industrialisation. Definitely, Africa has been going through a renaissance and as it continues to flourish, the needs and economic growth in industrialised countries will mean greater competition for her resources.
There is no denying the fact that of recent several countries in the continent have been witnessing rapid economic growth. And they include Ethiopia, Kenya, Mozambique, Nigeria and Zambia, while the continent is expected to attract about $200 billion in foreign investment this year. In addition, the US is keen on meaningfully engaging the continent’s entrepreneurs, who are the people who create jobs and drive growth in Africa.
After decades of watching ageing African dinosaurs, their shopaholic wives and sleepy ministers, the continent’s entrepreneurs like Aliko Dangote, Mo Ibrahim and Donald Kaberuka are finally showing that Africa is open for business. Even at this, there are still formidable challenges before the continent can arrive at its destination. They include implementing transparency in processes, rule of law, democratic governance, accountability and zero tolerance to corruption. Working through these issues will determine the depth and scope of the summit’s future success.
Forging stronger personal connections among these leaders advances America’s and Africa’s interests. It also fosters further future engagement, and deepens the partnership between the American and African peoples. As President Obama put it, “I do not see the countries and peoples of Africa as a world apart; I see Africa as a fundamental part of our interconnected world – partners with America on behalf of the future we want for all of our children. That partnership must be grounded in mutual responsibility and mutual respect.”
Of course, many are wont to ask what impact the summit will have on relations on both sides, if any. This vital assessment cannot be done now. A proper in-depth evaluation must wait years, even decades, after initiatives and programmes have been planned and implemented.
