The US further donated over $1.9 billion in emergency funds for food and humanitarian supplies to complement its debt suspension for 32 African countries under the World Bank’s Debt Service Suspension Initiative (DSSI).
Strategic rivalry and economic opportunity
In a context of growing strategic rivalry between Washington and Beijing, China was notably absent from Blinken’s speeches, at least explicitly - but China was omnipresent in the priorities and concerns expressed by the Secretary of State.
In fact, China overtook the US as Africa’s largest trading partner in 2009. The balance will be further affected by Washington’s threat to suspend the African Growth and Opportunity Act (AGOA) for Ethiopia, Mali and Guinea on January 1, 2022, because of the war waged against Tigray by Ethiopia and the military coups that have taken place in the latter two. In a statement to Congress, the White House said the three countries "are not in compliance with the eligibility requirements of section 104" of the act. AGOA remains a critical part of the US-Africa trade relationship as the law, enacted in 2000, eliminates tariffs on thousands of products that are vital to many African economies.
However, the Biden administration does intend to remind American companies of the continent’s importance for them. Indeed, rapid urbanization and infrastructure development paired with strong demographic growth open up major investment opportunities. This is what Judd Devermont, former director of the Africa program at CSIS and now special advisor for the Africa strategy at the White House’s National Security Council (NSC) previously said in our blog. Biden’s announcement of a US-Africa summit set to be held in the summer of 2022 - news that was applauded by the US Chamber of Commerce - is a reflection of this outlook.
Co-authored with Marin Saillofest, Assistant Policy Officer.
Copyright: Andrew Harnik / POOL / AFP
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