Rapid African growth forcing a re-think in U.S. – Africa trade relations

Africa’s top trading partners. COURTESY/U.S. Senator Chris Coons

The U.S. can’t afford to ignore investment and trade with Africa now that countries like China and India are increasingly investing in African countries.

The U.S.’s lack of attention to Africa’s commercial opportunity comes at a time when the region is poised for an economic takeoff.

Six of the world’s 10 fastest growing economies (according to data from the International Monetary Fund for 2001-2010) are in sub-Saharan Africa, and a middle class of nearly 350 million individuals, rivalling that of China and India, has emerged across the continent. Moreover, according to the McKinsey Global Institute, by 2020 Africa’s consumers—in areas such as financial services, tourism, telecommunications and retail— are projected to contribute more than five times as much revenue to the region’s economic growth as the natural resource sector.

(More: In Africa, U.S. Businesses Are Losing Out to China)

A key element of Africa’s economic growth has been an improvement in governance.

The increased frequency of elections has led to an expansion of democracy across the continent. In addition, the emergence of civil society, social media and, in many countries, a robust press has contributed to greater accountability of government officials at the national, state and local levels.

Read more: Brookings