Contrary to general perceptions, the United States (US) remains deeply committed to Africa and is, in fact, redoubling efforts to grow trade and improve investment relations. Not only that, says Trade Law Centre (tralac) associate and economist Eckart Naumann, but the country is seeking to do this on a more even playing field, ideally through some form of reciprocal arrangements. Whilst the shape and size of these arrangements remain largely undefined, they are a slight variation on what Africa has been accustomed to in its US dealings considering that the African Growth and Opportunity Act (Agoa) is non-reciprocal and its benefits are limited to 39 qualifying sub-Saharan African countries. With only six years to go, it is anyone’s guess whether Agoa will be renewed, amended or discontinued come September 2025. But what is certain is that it won’t be business as usual in light of the US’s newly formed Prosper Africa programme. There is no doubt that Agoa will continue to play an important role for the next few years, says Naumann, as the US increases its own investment in Africa and also seeks trade deals on a bilateral or regional basis with African countries. “It remains uncertain what will happen post September 2025. It’s not a foregone conclusion that it will terminate without at least some form of replacement programme that will be of benefit to sub-Saharan African countries, but it may exclude the more developed countries such as South Africa,” says Naumann. “However, all indications are that the US wants to increase its engagement with Africa, deepening trade and investment ties in a more reciprocal way.” With details still sketchy, the Prosper Africa programme does give some insight into what is to come. At the Agoa forum held in August in Abidjan, Côte d’Ivoire, more details were shared about the programme, which is intended to unlock opportunities to do business in Africa. According to US officials, this will be for the benefit of companies, investors, and workers both in Africa and the United States, while the goal is to increase substantially two-way trade and investment between the US and Africa. According to tralac, Prosper Africa represents a refocused, realignment and trade-facilitating coordination effort of the work of at least 15 US government agencies. “The focus is on more efficient, transparent and on-the-ground work in reducing US-Africa trade and investment barriers,” said Naumann. This is a very different approach to that of Agoa which is not a reciprocal agreement but rather a legislated US programme. “The US sets the rules and can change these or even terminate benefits at its leisure, which in turn introduces a level of longterm uncertainty. Beneficiary countries are also subject to an annual renewal process, which means that a country can lose its Agoa eligibility status – or be removed on a sector basis depending on factors such as not meeting certain eligibility requirements, imposing barriers to US trade and investment etc,” explains Naumann. Prosper Africa, says Naumann, as explained at the Agoa forum, is about facilitating and catalysing US commercial engagement with Africa, helping US companies navigate (and reduce) African trade and investment barriers. “As such, it is focused not on aid but on expanding trade and investment,” he says.
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The focus is on reducing US-Africa trade and investment barriers. – Eckart Naumann
