US-Africa relations leaning towards trade - CNBC Africa

US-Africa relations leaning towards trade

Special Report

by Trust Matsilele 0

The relationship between US and Africa has been aid-based that is set to change. PHOTO: Wikimedia

According to reports, in 2012, the United States provided nearly 12 billion US dollars in official development assistance (ODA) to African nations.

However, this relationship is set to come to an end as the US will announce business deals in excess of 1 billion US dollars during the three day summit.

(READ MORE: GE to invest US$2 bln in Africa)

“We are expecting some announcement of the one billion US dollars in trade that will see Africa transitioning its relationship from aid to trade and also the 60 million US dollars in peacekeeping efforts,” said CNBC Africa reporter Nozipho Mbanjwa in Washington.

“There are series of meeting exploring investment opportunities and looking for ways to improving existing trade relations between these two regions.”

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Mbanjwa said that in most documents being used at the summit the term aid was almost absent.

According to the United States Agency for International Development (USAID), Africa is home to the most promising untapped markets in the world yet African products make upto just 2 percent of world trade.

The US-Africa leadership summit is set to discuss the African Growth and Opportunity Act (AGOA) an act that offers tangible incentives for African countries to continue their efforts to open their economies and build free markets.

(READ MORE: USA looking for AGOA legislation renewal)

The US has been a development partner of most African economies especially in social delivery sectors.

The official development assistance is allocated to education, health, infrastructure and economic development programs in recipient countries.

The United States currently allocates foreign aid to 47 African nations and USAID operates 27 missions on the continent.

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