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US announces $1bn investment package to accelerate African innovation

african innovation
December 21, 2022

by nfdeklerk 0 comment

US announces $1bn investment package to accelerate African innovation

The US White House’s Prosper Africa initiative the US-Africa Business Forum’s Deal Room announced on December 14 a package of investments totalling $1-billion over the next five years, to boost African exports and infrastructure and mobilise private investment to accelerate African innovation.

Prosper Africa is a US government initiative to increase two-way trade and investment between African nations and the US.

The investment announcement, made in the Business Forum’s Deal Room on the second day of the US-Africa Leaders’ Summit – brought together African heads of State, and US and African investors, business leaders and government officials to advance trade and investment partnerships that create jobs and drive inclusive and sustainable growth on both sides of the Atlantic.

Prosper Africa COO Leslie Marbury says Africa offers some of the greatest growth opportunities for shared prosperity in African nations and the US.

“We are committed to investing in Africa’s transformative growth and untapped market opportunities.

“On behalf of the US government, Prosper Africa is excited to announce bold commitments that reflect the Africa of today – home to the world’s largest free trade area, growing economies, and an increasingly young, urban, and digitally connected population,” she says.

The package of commitments includes new partnerships that will connect thousands of US buyers and African suppliers to expand supply chain operations in Africa, increase access to trade preferences under the African Growth and Opportunity Act and advance the implementation of the African Continental Free Trade Area.

The investments also include an e-commerce and digital trade alliance with major US companies to fuel Africa’s technological revolution.

Recognising the significant growth potential of Africa’s technology sector, the Prosper Africa Tech for Trade Alliance will accelerate e-commerce and digital trade in Africa and address legal, regulatory and logistical bottlenecks.

Prosper Africa also announced new partnerships to mobilise an investment target of $1-billion in private capital to advance African infrastructure and innovation, including a $25-million partnership with TradeMark East Africa and the US Agency for International Development.

This investment will be used to establish Trade Catalyst Africa – an investment facility that is expected to leverage at least $90-million dollars of private financing for African infrastructure with the potential to expand continent-wide.

The additional $1-billion in private capital will also be used for new partnerships with the Institutional Investor Network and global advisory firm MiDA Advisors, to channel large-scale investments into African infrastructure and build enduring relationships between the trillion dollar US pension community and their African counterparts.

It will also go towards investments in five pioneering partnerships to grow the African asset management space and drive investment of over $200-million in African small businesses.

The combination of these five partnerships – with a focus on addressing global challenges like climate change, food security and women’s empowerment – will benefit hundreds of thousands of people and generate millions of dollars in revenue for businesses.

Since 2019, the US government has helped close 1 100 deals across 49 African countries for a total estimated value of $65-billion.