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A President’s Business Trip to Africa

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Cape Town on the Ground cx1The U.S. president and first lady on the ground in Cape Town

President Obama’s second trip to Africa signals the administration’s renewed commitment to the Sub-Sahara. At stops in Senegal, South Africa and Tanzania this week the president is expected to highlight, as he has before, his over-arching focus on food security and global heath. He’s also expected to present new programs aimed at strengthening commercial ties with African countries, particularly democracies like the nations on his itinerary.

The administration wants to make it possible for the US private sector to play a more vital role in Africa at a time when other countries — notably China, Malaysia, India and Brazil — are stepping up their investments across the continent. Joining the president along the way will be some 500 US business leaders, sending a message to both African and American audiences that the US is hereby rolling up its sleeves.  The critical question about the president’s trip is whether the US is serious and, if so, what substantive policies will follow the anticipated rhetoric.

In light of Mr. Obama’s Africa agenda, Todd Moss at the Center for Global Development proposes six high-impact, low-cost “deliverables” that would not only strengthen commercial ties, but also represent a more mature approach to the region. Moss’ suggestions are grounded in the notion that effective trade and investment programs can address Africa’s most pressing economic development needs — creating jobs and infrastructure, and improving health and education (as prioritized by Africans, according to Afrobarometer).

The president’s junket may indeed herald a “post-aid” chapter in US foreign relations relying less on government-to-government programs, and more on leveraging the power of partners, institutions and private sector involvement. It’s wise and timely to encourage investment in Africa, now home to some of the world’s fastest growing economies. US businesses, particularly those in technology and engineering fields, are poised to make a difference in sectors vital for sustained economic development on the continent.

But for the administration’s plan to succeed, more US business leaders, including those running small and medium-sized enterprises, must recognize that the upside of investing in emerging African countries can outweigh the risks. More work needs to be done to make the case convincingly. That means a clear-eyed, data-driven outlook based on market economics, rather than another rehash of the ‘Africa Rising’ narrative.

We who are interested in expanding ties with the Sub-Sahara ought to recognize the significance of the administration’s commitment to fueling trade and investment. We should also notice that this is a signal to inform policy-makers about what can be done between governments to ease the barriers to investing in Africa — steps that would make a difference to communities on both sides of the Atlantic.

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Those wanting more context on the president’s trip are encouraged to read a piece by CSIS’ Jennifer Cooke and Richard Downie, “President Obama’s Africa Trip: Making the Business Case”.

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Image courtesy of the White House.

Addenda:

‘Seeing Africa as Business Partner, Not Charity: Todd Moss and Scott Morris on Obama’s Trip to Africa’, an essay by Lawrence MacDonald for CGI.

“So, what will [Mr. Obama] accomplish beyond symbolism? Probably not much,” writes Mwangi S. Kimenyi, in his FP piece, ‘Guilt Trip’.

Edward Luce’s FT column: ‘Obama’s Trip to Africa is Too Little — And Very Late’.

In this PRI interview, Howard French of Columbia University shares well-informed observations about the administration’s renewed focus on Africa.

A well-informed perspective on this subject is found in a CGD piece, US Partnership with Africa, featuring USAID’s Rajiv Shah and CGD’s Nancy Birdsall.

The post A President’s Business Trip to Africa appeared first on Touch Points by Steve Finikiotis.


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