Opinion: Why Should the U.S. Care About Its Economic Relations with Africa Now?
By Val Okaru-Bissant, Esq. and Frank Samolis, Esq.
The Habari Journal
Those who subscribe to the isolationist viewpoint suggest that U.S. charity should begin (and stay) at home, caring for American citizens. In contrast, those that subscribe to philanthropic ideas claim that America’s historical relationship with slavery and Africa imposes a standing moral duty to care about African people. The U.S. may have a dark past, but it remains wondrous land of opportunity with a long and successful track record of attracting and welcoming immigrants. Regardless of these varied viewpoints, realistically, there are no Santa Clauses or actual altruist nations. But there are several non-altruistic reasons why the U.S. should care about its economic relations with Africa. Such causes include geopolitical and shifting global economic landscapes, strategic national security and economic interests, mutual gain, domino & boomerang effect, and global interconnectedness.
The geopolitical stakes are high, and therefore, the U.S. cannot afford to disregard its economic relations with Africa. The Trump administration’s broken economic relationship with Africa has heightened the risk of the U.S. losing credibility in an interconnected multi-polar world with shifting economic landscapes. Therefore, the time is ripe for the Biden administration and U.S. Democrat House and Senate- controlled majority (with Vice President Kamala Harris as a Senate tiebreaker) to amend such broken relationships. The U.S. should regain U.S. credibility and strengthen its threatened global influence, where emerging markets like China and India are gaining such power in the Africa region.
Shifts in the Global Landscape
Such shifts in global landscapes have created tremendous business opportunities for US-Africa trade and economic relations. Therefore, caring about US-Africa relations is not a charitable deed but a necessary element in strengthening U.S. geopolitical, strategic national security, and economic interests. Given that Trump’s efforts around Prosper Africa and the DFC may have been a knee-jerk reaction to China and the push for bilateral relations, the Biden Administration should adopt a more proactive. Biden should and shall most likely preserve some of Trump’s existing bilateral engagements, such as pushing for a free trade agreement with Kenya and other nations. The FTA with Kenya made progress under Trump but now faces a challenge with the expiration of the Trade Promotion Authority (TPA) under U.S. law at the end of June. Given the notification requirements to Congress under the FTA, it is unlikely that the agreement will be finalized under existing legal authority.
Africa as the Next Frontier
Africa is the next frontier for global trade and economic development, with a rapidly expanding consumer and labor force, including the youth population growing at a fast rate. Undoubtedly, U.S. – Africa economic relations are premised on mutual interests and mutual gain. Goods and services have been used as a form of payment for U.S. consultancy and infrastructure transfer. 54 of the 55 African Union member nations signed the African Continental Free Trade Area (AfCFTA). Accordingly, 36 ratified the treaty that reinforces Africa’s growing economic and strategic importance in the shifting global economic landscape. AfCFTA presents an opportunity for the U.S. and opens up the possibility of a multilateral, regional relationship with Africa instead of pursuing bilateral agreements. It aims to create a single African consumer and labor market for 1.2 billion Africans to trade in African value-added manufactured goods (about US$ 3 trillion worth of GDP) and services. In 2015, African youth (aged 15 and 24 years), including females, comprised 19% (about US$ 226 million) of 1.1 billion population. By 2030, youth will be 42% of Africa’s people.
However, Africa’s youth also comprise 60% of the continent’s unemployed population and most African nations have the highest economic disparities in the world with a Gini-coefficient ranging from 0.43 in Nigeria to 0.62 in South Africa; two countries with the highest gross domestic product in the continent. Economic disparity, under-employment and unemployment are drivers of mass and risky migration, sex trafficking and trans-boundary terrorism. These have a ripple effect on the U.S.
Similarly, untargeted and inequitable financial aid systems also result in unemployment and underdevelopment of human capital. Again, these have negative boomerang effects on U.S. migration and security. Such aid systems strengthen job creation in donor nations but worsen African unemployment partly because African nations use aid monies to pay corporations in donor nations for consultancy services and infrastructure goods transfer. There is an increase in flow of such goods and services to the U.S. and other donor nations who give aid to African nations. The average educated and skilled African then faces unemployment even in their own country. This is not to imply opposition to aid. It should signal the Biden Administration to energize support for targeted and accountable aid systems that ensure equitable and fair distribution of goods and services to donor and recipient nations and diaspora-owned businesses.
Preaching to the Choir
Consequently, the Biden administration should emphasize U.S. – Africa economic relations that promote trade, investments, human capital development and productivity of Africa owned small and medium enterprises. He should also promote a targeted, accountable and transparent financial aid system that supports humanitarian and health programs, including COVID 19 and the President’s Emergency Response to AIDS Relief. In this respect, he should avoid adopting non-transparent and unaccountable financial aid systems that worsen corruption and undermine ability to monitor illicit flow of resources.
There are also opportunities for the US to engage more actively with Africa in the World Trade Organization (WTO), which now, for the first time, has an African Director General, Dr. Ngozi Okanjo-Iweala. The WTO is in need of new leadership, and the U.S. should spearhead efforts to begin a new round of multilateral trade negotiations, and also engage with African members to score a comprehensive agreement.
The COVID 19 pandemic has made the world realize the interconnectedness of our multipolar global landscape. When the U.S. or China sneeze, the rest of the world and African nations, catch a cold. Similarly, when Africa sneezes, the world catches a cold, too. Therefore, U.S. financial and technical responses should include removing restrictions on food and medical supply exports to African nations as well as promoting capacity building, joint ventures and fair trade with African-owned small and medium enterprises in the health and food supply chain sector.
Optimistically, the authors are preaching to the Biden Administration Choir. Based on his past record, campaign promises and post-election signals to the continent, Biden and his team care about economic relations with Africa. Since he was a senator, Biden has demonstrated commitment to strengthening U.S. foreign relations and moral based interventions with African nations.
On July 23, 1986, in a Congressional hearing, then Senator Biden forcefully urged Secretary of State George Shultz and the Reagan administration to repudiate and take measures against apartheid in South Africa. His initial post-election actions also signal that he is capitalizing on this presidential opportunity to refute all Trump’s anti-African economic policies. President Biden should implement the Biden – Harris Agenda for Africa Diaspora, promising to roll back Trump’s unfavorable immigration policies, restore failing diplomatic relations with African nations and increase African diaspora job representation in U.S. Foreign Service and government. Within a few weeks, he’d spoken with South Africa President Cyril Ramaphosa, then-Chair of the Africa Union and expressed his wish to deepen America’s strategic relationship with the African Union. Biden and Ramaphosa also spoke of the U.S. – South Africa relationship, and relations with other African governments, institutions and citizens. They discussed a mutual interest in combating corruption and addressing COVID19 and the threat to climate change.
Executive Orders
Similarly, within a few weeks of assuming the Oval Office, he signed several Executive Orders that positively impact the African diasporas and immigrants, including one that adopts multilateralism and another that introduces immigration and visas to end the ban on Muslims. Biden also effectively overturned Trump’s order to find and deport unauthorized citizens, blocking the deportation of Liberians living in the U.S. and strengthening the deferred action for childhood arrivals (DACA) program to protect dreamers. He also signed the racial and LGBT equality order, which ends the Trump Administration’s 1716 Commission that some historians claim has contorted the role of slavery in U.S. history.
Biden’s non-racist and pro-Africa policies are also reflected in picking Linda Thomas-Greenfield and Adewale Adeyemo to join his cabinet. Ambassador Thomas-Greenfield should and will utilize her successful track record to strengthen relationships with African nations. After all, she worked in a diplomatic capacity in Africa; in Liberia, Kenya, Nigeria, and The Gambia. Her November 23, 2020 acceptance tweet raises some likelihood that she will recreate the Obama Administration’s foreign policy pillars.
Some of these include diplomacy, defense, and development, emphasizing building global alliances and leading through civilian diplomatic power. Further, we expect the Biden administration to implement such diplomatic and development pillars focusing on trade, investment, and economic development to promote economic and political stability in Africa nations. Moreover, a Democratic Congress is likely to be more interested in engaging with Africa on several geopolitical fronts, allowing the Biden Administration to forge a productive working relationship with Africa, including renewing the African Growth & Opportunity Act.
A Good Start
Undoubtedly, President Biden is off to a good start, and his record signals his support for strengthened U.S. economic relations with Africa. However, his administration and US Democrat-controlled House and Senate will stand the test of time in proving that they recognize the importance of caring about U.S.-Africa relations. But all indications point to the fact that the authors are preaching to the Biden choir and that he recognizes the vitality of such links based on mutual gain and geopolitical, strategic, national, and economic interests. He also admits that diversity, democracy, ease of doing business, fair/free trade, and contracts with African diasporas and Africa are some of the things that make the U.S. great.
About Val Okaru-Bisant, Esq
Val Okaru-Bisant is a professor at the Catholic University of America, Washington DC; professor (former adjunct) George Washington University, the Elliott School of International Affairs, Washington DC, and CEO, Founder & General Counsel, Afrocosmo Development Impact, LLC.
About Frank Samolis, Esq
Frank Samolis is a Partner and Co-Chair, Global Trade at Squire Patton Boggs, LLP, Washington DC
Disclaimer:
The views expressed herein are the authors’ personal views and should not be attributed to their respective firms or associations.