How Africa can benefit from incoming U.S administration on trade

The United States of America launched the Development Finance Corporation (DFC) last year, aiming to provide and facilitate financing for private development projects in lower and middle-income countries. There are suggestions that it also intends to counter China's influence in these regions. With the incoming administration of President-elect Joe Biden, many are curious about how these initiatives will evolve. Grant Harris, CEO of Connect Frontier LLC, sheds light on the subject. President-elect Biden is stepping into the White House with a plethora of trade issues on his plate. He inherits tariffs on seventy-five percent of goods from China, a phase one agreement with purchase requirements, and disputes with allies globally. Biden's focus, as articulated, revolves around bolstering the American middle class, consulting with allies, and strategizing the way forward on tariffs and trade policies. The transition team is in full swing, preparing policies for governance post-January 20th. One notable highlight of the Trump administration's legacy is the US International Development Finance Corporation, a $60 billion investment agency aimed at countering China's investment influence. Harris believes the DFC will continue to shine under the Biden administration, particularly in supporting US companies trading abroad, with a notable focus on Africa. Over half of the DFC's portfolio is already invested in Africa, totaling around $8 billion. Harris anticipates the DFC will play an essential role in Biden's trade and investment strategy. While China has been Africa's major investment partner, the US has been gradually making inroads. Harris criticizes the Trump administration's approach, which mainly framed policies in the context of competition with China, neglecting African agency. He believes Biden will change this paradigm, prioritizing commercial ties based on mutual benefit. Harris emphasizes the need for US investors in Africa, highlighting steps both the US government and African nations should take to attract capital. Climate change is a key priority for the Biden administration, with a strong emphasis on cooperation with African countries, which are acutely vulnerable to its impacts. Harris predicts that Biden's climate policies will shape foreign investment on the continent. The administration's focus on climate-friendly sectors and economic incentives for sustainable growth could open doors for US companies in African markets. In conclusion, the Biden administration's approach to trade, investment, and climate change presents opportunities for strengthening US-Africa relations and boosting development initiatives in the region. With a renewed emphasis on mutual benefit, commercial ties, and sustainability, the future looks promising for US-Africa trade relations under the Biden leadership.