The second U.S.-Africa summit was held in Washington recently. The leaders of 49 countries and the chair of the African Union (AU) participated from Africa.
Support for G20 membership: The U.S. announced its support for the AU to join the G20 as a permanent member.
Permanent representation for Africa at UNSC:
The U.S. said it “fully supports” reforming the UN Security Council (UNSC) to include permanent representation for Africa.
Supporting African resilience and recovery from the COVID-19 pandemic: The US plans to lend up to US$21 billion through the International Monetary Fund (IMF) to low and middle-income countries, many of whom are located in Africa.
For example, The US Trade Representative signed a MoU with the African Continental Free Trade Area (AfCFTA) Secretariat to support institutions to accelerate sustainable economic growth across Africa.
Once implemented, the AfCFTA is touted to be the largest free trade area in the world, in terms of number of participating countries, and is set to create a combined continent-wide market of 1.3 billion people and 3.4 trillion GDP.
The First Regional Multi-Sectoral Millennium Challenge Corporation (MCC) Compacts:
The MCC totalling US$504 million was signed with the Governments of Benin and Niger to support regional economic integration, trade, and cross-border collaboration.
Digital Transformation with Africa initiative:
Under this initiative, the US intends to invest over US$350 million and facilitate over US$450 million in financing for the continent, in line with the African Union’s Digital Transformation Strategy.
21st Century Partnership for African Security (21PAS):
Under this partnership, the US plans to provide US$100 million to incentivize and bolster African efforts to implement and sustain security sector capacity and forms.
Largest trading partner: China, on the other hand, has emerged as the largest trading partner and the fourth largest investor in the African continent, ahead of the U.S., through its steady diplomacy and extensive economic engagement.
Investment: The U.S. investment stock in Sub-Saharan Africa was $30.31 billion last year, compared with China’s total investment in Africa of $43.4 billion in 2020.
Forum on China-Africa Cooperation (FOCAC):
The FOCAC is composed of ministers and leaders of Africa and China who meet once in three years, alternately in Beijing and an African capital.
The Chinese president participates in deliberations in person or digitally.
The last meeting, held in Dakar in 2021, expressed support for the Chinese agenda: One-China Principle, the Global Development Initiative, the Belt and Road Initiative (BRI), and the vision of “a community with a shared future.”
Consistent attention to Africa: For years, the Chinese foreign minister begins his annual series of foreign visits by travelling to Africa.
However, US-Africa summits tend to be rather infrequent. The last summit took place back in 2014. Moreover, no U.S. president has visited Africa since 2015.
Implications for India:
- India’s equity in Africa is older and richer than that of China and the U.S., but that should not be a source of complacency.
- India has striven hard, in the past two decades, to strengthen its political and economic partnership with Africa at the continental, regional and bilateral levels.
- The government has created a special momentum in arranging high-level exchanges and forging cooperation initiatives during the 2015-19 period.
- The fourth India-Africa Forum Summit should be held in early 2024, lest the third summit held in 2015 becomes a distant memory.
- The G20 presidency is India’s opportunity to ensure that the AU becomes a permanent member of this grouping and to reflect firmly Africa’s Agenda 2063 for development.
India and the U.S. should work closer together in Africa. The time is now for India and the US to demonstrate their sustained commitment to Africa and Africans.