Lifting Trade Frontier in U.S.-Africa Relations
PRESIDENT Barack Obama deserves commendation for instituting a new engagement with Africa. Bringing trade relations to the fore, even if the traditional concerns for security and good governance remain on his agenda, is especially laudable. For some, the recently concluded U.S.-Africa Leaders Summit, represents a fitting recovery from what had appeared as general apathy towards Africa. When finally he decided to broadly engage with African leaders, President Obama looked beyond the traditional model that has been criticized as paternalistic. In the past, the focus was on dolling out U.S. aid to Africa, in a relationship in which the hand of the giver was always on top. Even more commendable is that, as the U.S. contemplates deepening commercial relationship with Africa, it looked beyond the traditional sector of trading oil and few other extractive commodities.
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Nevertheless, Africa commands this new attention. In the last ten years, Africa has significantly shed the image of war and deprivation. Economic growth has been steady, averaging estimated 5 per cent annually, according to the International Monetary Fund and the World Bank. Constitutional democracy has taken root in most African countries. Evidence of improved governance is seen across Africa, and economic reform initiatives - like the ones enunciated in the Transformation Agenda of President Goodluck Jonathan of Nigeria - have improved market performance, unlocked private sector resources and, consequently, helped to expand the middle class.
Africa remains resource-rich. But the new attraction for the continent, especially from China, recognises so much that Africa has to offer and what it needs for further progress. Africa has become more aspirational than it had ever been or even taken to be, aware it has the capacity to give even as it takes from development partners. As a result, a win-win approach is being realized in engaging the African continent.
China has gained the head start advantage over the United States and Europe in commercial relations with Africa this new term. Indeed, as the West loses the momentum for trade with Africa, even so has China pushed its appetite for African economic engagement. It is an open secret; China's trade with Africa has been on the increase. It rose from $166 billion in 2011 to $210 billion in 2013. In the same period, U.S. trade with Africa dwindled from $125 billion to $85 billion. Africa has opened the door to China's knock on the door of African opportunities. While this is happening, for debatable reasons, the U.S. beats a retreat. The policy justification for U.S. exit cannot be because of the traditional concerns of insecurity and bad governance. These issues have improved significantly over the past decade. Perhaps, the changing structure of U.S. trade interest, because of increased energy security at home, provides an explanation. Nevertheless, the $33 billion investment commitment by the Obama administration and U.S. investors in power and other industries during the recent meetings in Washington DC is a commendable reawakening.
There is no doubt that Africa's trade with the West, particularly the United States, has important and unique values. Well-recognized is sharing of best practices. Even if African leaders had been reticent towards policy prescriptions, the evidence now is that the continent shares the values of representative government, open and transparent policy and economic freedom for the private sector to drive growth and prosperity. Moreover, the riches of Africa's diversity accommodate multiple, external players, on the basis that Africans themselves are also investing in the continent and are establishing functional commercial partnerships. Yes, we have abundant natural resources. But even more importantly, we have the population to support production of consumer products. Africa's demography -- about one billion people which comprises a higher youth population -- tells that long-term viability of investments cannot be in doubt. In Nigeria, the services sector is now the biggest contributor to our Gross Domestic Product. The opportunities seem boundless
Nevertheless, Africa commands this new attention. In the last ten years, Africa has significantly shed the image of war and deprivation. Economic growth has been steady, averaging estimated 5 per cent annually, according to the International Monetary Fund and the World Bank. Constitutional democracy has taken root in most African countries. Evidence of improved governance is seen across Africa, and economic reform initiatives - like the ones enunciated in the Transformation Agenda of President Goodluck Jonathan of Nigeria - have improved market performance, unlocked private sector resources and, consequently, helped to expand the middle class.
Africa remains resource-rich. But the new attraction for the continent, especially from China, recognises so much that Africa has to offer and what it needs for further progress. Africa has become more aspirational than it had ever been or even taken to be, aware it has the capacity to give even as it takes from development partners. As a result, a win-win approach is being realized in engaging the African continent.
China has gained the head start advantage over the United States and Europe in commercial relations with Africa this new term. Indeed, as the West loses the momentum for trade with Africa, even so has China pushed its appetite for African economic engagement. It is an open secret; China's trade with Africa has been on the increase. It rose from $166 billion in 2011 to $210 billion in 2013. In the same period, U.S. trade with Africa dwindled from $125 billion to $85 billion. Africa has opened the door to China's knock on the door of African opportunities. While this is happening, for debatable reasons, the U.S. beats a retreat. The policy justification for U.S. exit cannot be because of the traditional concerns of insecurity and bad governance. These issues have improved significantly over the past decade. Perhaps, the changing structure of U.S. trade interest, because of increased energy security at home, provides an explanation. Nevertheless, the $33 billion investment commitment by the Obama administration and U.S. investors in power and other industries during the recent meetings in Washington DC is a commendable reawakening.
There is no doubt that Africa's trade with the West, particularly the United States, has important and unique values. Well-recognized is sharing of best practices. Even if African leaders had been reticent towards policy prescriptions, the evidence now is that the continent shares the values of representative government, open and transparent policy and economic freedom for the private sector to drive growth and prosperity. Moreover, the riches of Africa's diversity accommodate multiple, external players, on the basis that Africans themselves are also investing in the continent and are establishing functional commercial partnerships. Yes, we have abundant natural resources. But even more importantly, we have the population to support production of consumer products. Africa's demography -- about one billion people which comprises a higher youth population -- tells that long-term viability of investments cannot be in doubt. In Nigeria, the services sector is now the biggest contributor to our Gross Domestic Product. The opportunities seem boundless
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