Facts & Figures: Who got What from US-Africa Leaders’ Summit in the USA

African leaders returned from the August 4-6, US-Africa Leaders’ Summit with a mixed bag of pledges that could, if honoured, forge deeper transatlantic ties as well as the exploration of comprehensive and collaborative solutions to unlock the type of economic growth and opportunity that for Africa and the U.S. need.

While the Summit had political and diplomatic connotations, the economic aspect dominated the talks. The Washington gathering ushered America a window to advance U.S. Administration’s focus on trade and investment in Africa and highlighted America’s commitment to Africa’s security, and its democratic development.

Billions of new investments

At the conclusion of the Summit, the United States announced it was making a major and long-term investment of US$33 billion in Africa as part of on-going efforts to increase the U.S.' economic footprint in
the continent. President Barack Obama stated that his administration and over 40 African leaders have made important progress in expanding trade, adding that the US$33 billion in new trade and investments “will help spur African development and support tens of thousands of American jobs.”

Obama explained that from that amount, $7 billion would go into promoting U.S. exports to and investments in Africa. U.S. companies announced new deals in clean energy, aviation, banking, and construction worth more than $14 billion, in addition to $12 billion in new commitments under the Obama’s Power Africa initiative from private sector partners, the World Bank, and the government of Sweden. Taken together, these new commitments amount to more than $33 billion; supporting economic growth across Africa and tens of thousands of U.S. jobs.

Economists are unanimous that the US$33 billion in new trade and investments in Africa is largely insufficient for a continent counting 55 countries. However, the reality is that not all countries will benefit from this investment. The distribution will be guided by the New U.S. Government Resources to Support U.S. Exports and Investment in Africa. Some of the resources include the Interagency Initiatives, U.S. Export-Import Bank, Millennium Challenge Corporation (MCC) and Overseas Private Investment Corporation.

Who got what?

The MCC, for example, will commit up to $2 billion in funding for new companies in Africa that facilitate private sector-led economic growth and poverty reduction, creating potential opportunities for U.S. companies. This commitment includes $498 million over the next five years to support the turnaround of Ghana’s electricity sector and the stimulation of private investment. This Compact represents an example of the catalytic impact of Power Africa interventions, which will help create the enabling environment to catalyse billions of dollars of private investment in Ghana.

During the Summit, President Uhuru Kenyatta managed to have Kenya included in the Power Africa initiative whose commitments reached $27 billion during the summit. Kenya, alongside Tanzania, will benefit from a wildlife protection initiative worth $65 million, together with South Africa, Gabon and Togo. They will also be sharing another $65 million for a counter-terrorism programme with Ghana, Mali, Tunisia, Niger and Nigeria.

The Republic of Uganda, Tanzania and Rwanda are included in a $110 million pledge for peacekeeping in Somalia, South Sudan and Central African Republic. Other peacekeeping

beneficiaries are Ghana, Senegal, and Ethiopia. Some $4 billion was equally allocated for maternal health and a pledge to extend the Africa Growth and Opportunity Act (AGOA) for 15 years for all 55 African countries.

Valentine Mulango -
US-Africa Summit: What Did Cameroon and the Rest of Africa Come Out with Facts and Figures
- Cameroon Journal.com