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The positive signs of investing in Africa
By admin June 4, 2014

President Obama spoke at a business forum aimed at increasing investment in Africa in Dar es Salaam, Tanzania, in July 2013. (From the Mission of the United States)

President Obama spoke at a business forum aimed at increasing investment in Africa in Dar es Salaam, Tanzania, in July 2013. (From the Mission of the United States)

Investment by the US in Africa has fallen while China and other emerging countries have built close trading relationships with Africa over the last decade. According to the IMF, sub-Saharan African will be the second-fastest growing region in the world with a growth rate of 5.4%, which makes investment on the continent promising.

 

Though the continent faces serious challenges such as poverty, disease and high infant mortality, Africa’s GDP has kept roaring since late 1990s, and is expected to grow even more thanks to its abundant resources as well as political and economic reforms recently. Smelling the opportunities, China has paid lots of attention on the continent, and China-Africa trade has surged from just $10bn in 2000 to more than $200bn in 2013, compared to US-Africa trade with $110bn last year.

 

But the US won’t lag behind, and has been preparing for the increased opportunities in Africa. In July 2013, President Obama launched Trade Africa to enhance trade and economic ties between Africa and the U.S. Last month, U.S. Secretary of Commerce Penny Pritzker announced the expansion of trade offices to four African countries – Angola, Ethiopia, Mozambique and Tanzania. Besides, the US House of Representatives has passed a bill to support investment in the region, especially in the area of energy infrastructure. The White House has dispatched three senior trade and economic officials to the region this month, seeking to strengthen the presence of US companies in African markets. And the US government will hold the first US-Africa business forum in August at the White House with the presence of dozens of chief executives from African and American companies as well as leaders of roughly 50 African countries.

 

With emerging nations such as China, India and Brazil’s heavy investment in Africa, and with developed countries such Japan, France and Germany’s activities to secure the contracts with Africa, the U.S. is about to join the game. The expansions of trade offices, as well as White House’s positive attitude towards trade in Africa create a beneficial environment for investment. For American companies, plenty of opportunities are coming.

 

For more information:

http://www.ft.com/cms/s/0/69924938-e65c-11e3-bbf5-00144feabdc0.html#axzz332Y9ON7S

http://allafrica.com/stories/201405010730.html

http://www.out-law.com/en/articles/2014/may/us-plans-to-back-energy-infrastructure-investment-in-africa-move-ahead/

https://geneva.usmission.gov/2014/05/22/u-s-africa-business-forum-will-be-part-of-obama-leaders-summit/

 


Thanks for sharing !


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