By 
By Thokozani Mazibuko
Despite Africa being home to 54 countries and abundant natural resources, trade relations between the United States and the continent have remained strikingly underwhelming.
Recent reports indicate that U.S. trade with African nations accounts for a mere 1.9% of its total external trade, a figure that raises critical concerns about economic engagement, investment opportunities, and mutual growth.
According to data from the Office of the United States Trade Representative (USTR), U.S. goods and services trade with sub-Saharan Africa totalled approximately $30 billion in 2021.
This figure pales in comparison to U.S. trade with its largest partners. For instance, trade with China accounted for over 15% of total U.S. trade in 2021, while trade with Canada and Mexico made up about 29% combined.
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A report by the Brookings Institution highlights that while African economies are projected to grow significantly in the coming years, U.S. engagement has not kept pace with this potential.
The report notes that improved trade ties could lead to both significant economic benefits for the U.S. and enhanced opportunities for African nations.
Several factors contribute to the limited trade between the U.S. and African countries. According to the African Development Bank (AfDB), logistical challenges, high tariffs, and inadequate infrastructure remain significant barriers to trade.
Additionally, persistent political instability in certain regions makes investment less attractive.
“While Africa is rich in resources and has a growing consumer market, American businesses often perceive more risk than opportunity,” explains Rachel Adams, a trade
analyst at the Center for Strategic and International Studies (CSIS). “This perception needs to change if we’re to see any significant growth in trade relations.”
Despite the current landscape, various studies point to untapped potential within African markets. The Africa Continental Free Trade Area (AfCFTA), which came into effect in 2021, aims to create a single market for goods and services across the continent, promoting intra-African trade. The U.S. could seize this opportunity to strengthen its role as a trading partner by facilitating exports and investing in strategic sectors.
A report from McKinsey & Company shows that Africa’s consumer market is projected to reach $6.7 trillion by 2030, which could attract U.S. businesses if trade barriers are lowered and bilateral relationships are fostered. Industries such as technology, agriculture, and renewable energy are especially ripe for collaboration. The report emphasize several policy approaches to enhance U.S.-Africa trade relations.
“Negotiating and establishing new trade agreements focused on reducing tariffs and easing regulations could boost bilateral trade. Investment in Infrastructure:
The U.S. government could partner with African nations to improve infrastructure, which is critical for the smooth flow of goods,” reads the report.
Further, the report suggests that encouraging U.S. companies to invest in African start-ups and enterprises can help stimulate economic growth and create mutually beneficial partnerships.
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“Programs that promote educational and professional exchanges between the U.S. and African nations can build relationships and understanding, fostering future trade opportunities,” points out the report.
According to the report, as it stands, the current level of U.S.-Africa trade is incongruent with the continent’s vast potential. In a rapidly changing global economy, bolstering trade relations could yield significant mutual benefits for both the U.S. and African countries.
The report advises Policymakers to recognize the importance of strategic engagement with African nations to foster economic growth, innovation, and shared prosperity.
“If the U.S. is serious about tapping into the opportunities that Africa presents, immediate action is necessary,” warns the report.
