AfCFTA Secretariat, US sign MoU to boost trade and investment under AfCFTA
The AfCFTA Secretariat has signed a Memorandum of Understanding (MoU) with the US to boost investment and trade between both continents under the AfCFTA trade pact.
The signing of the MoU took place on December 14, 2022 between the Secretary General Wamkele Mene and the US Trade Representative, Ambassador Katherine Tai.
The MoU which is to be operative for a three-year period, is aimed at exploring opportunities through trade and investment policy to collaborate in the economic advancement of women, youth, and underserved groups on the continent.
It is also aimed at supporting the shared goals of the AfCFTA and the African Growth and Opportunity Act (AGOA) program, which include promoting both economic policies to reduce poverty and regional economic integration through encouraging trade among African countries.
Additionally, it is also to exchange experiences and promote cooperation on the development and implementation of sustainable digital trade for AU Member States, taking special consideration of the interests of workers, micro-, small-, and medium-sized enterprises and women-owned businesses.
US, Africa firms seal $15-billion of deals at Washington summit
Meanwhile, American and African firms reached more than $15-billion in new commitments and deals at a summit hosted by President Joe Biden as the US moves to increase its commercial ties with the continent through investments rather than aid.
The commitments cover sustainable energy, health systems, agribusiness, digital connectivity, infrastructure, and finance, the White House said in a statement.
The US is trying to deepen its ties with the continent as it competes for influence with rivals China, Africa’s largest trading partner and bilateral creditor, and Russia, which has successfully strengthened relations with the region in recent months as western nations tried to isolate it over its invasion of Ukraine.
The US government has helped close more than 800 two-way trade and investment deals across 47 African countries for a total estimated value of over $18-billion, and the American private sector has closed investment deals in the continent valued at $8.6-billion since 2021, the White House said.
Some of the initiatives emerging from the summit’s business forum include:
- At least $170-million by Prosper Africa – the US government initiative to increase trade with the continent – to boost exports to the US by $1-billion over the next five years, and mobilise another $1-billion in US investment in Africa.
- Cisco Systems, the biggest maker of machines that run computer networks and the internet, is partnering with Cybastion, a diaspora-owned small business, for $800-million in new contracts to protect African countries from cyber threats.
- The US-Africa Clean Tech Energy Network – a partnership between Prosper Africa and the US Agency for International Development’s Power Africa initiative – to facilitate up to $350-million investment in clean-tech energy companies within the next five years.
