Washington - US President, Joe Biden, presented Wednesday in Washington his country’s new strategy to re-launch economic, commercial and diplomatic cooperation with Africa.
Speaking at the Business Forum, which marked the high point of the second day of the U.S.-Africa Leaders Summit, the US statesman introduced the priority areas for new investments in the continent, having highlighted the importance of the strategic partnership with Africans.
Joe Biden spoke to his counterparts about the resources available and needed to support projects in Africa, particularly in the agriculture, health, energy and water, climate change, entrepreneurship, and telecommunications sectors.
According to Joe Biden, the US has collectively mobilized 600 billion US dollars to invest over the next five years, underlining that a 100 million US dollars investment is to be channeled for Sub-Saharan Africa to increase access to clean energy.
According to the American President, at least 370 million US dollars will be invested in new projects, of which 20 million will be used to finance the production and purchase of fertilizers.
The US leader added that another 10 million will be made available to support small and medium-sized businesses, and improve access to clean water.
Regarding innovation and entrepreneurship in Africa, President Biden said his country intends to invest at least USD 350 million to secure the digital transformation process.
President Biden also announced that Sisco Systems and Saubastian, a small diaspora company, have set aside 800 million US dollars for new contracts with African countries.
Mr Biden added that the multinational Visa has set aside a billion dollar to expand its operations in Africa, including more cell phone services for small and medium-sized businesses over the next five years.
GE Extended Bank, meanwhile, will provide 80 million US dollars to improve healthcare services and access to top-of-the-line clinical equipment.
In concrete terms, the American President stated that his country estimates to invest 15 billion dollars in new businesses to improve the living of Africans, long-term investments that, from his point of view, will bring benefits to local populations.
Benin and Niger sign regional agreement
The second day of the U.S.-Africa Leaders Summit was also marked by the signing of a regional agreement between Benin and Niger "sponsored" by U.S. companies.
This is the first regional program of the Millennium Challenge Corporation (MCC), focused on the transportation sector, with an overall investment of 504 million US dollars.
The Benin-Niger Regional Transport Compact is designed to reduce transportation costs along the corridor between the Port of Cotonou in Benin and Niger's capital, Niamey.
To this end, MCC will invest 202 million US dollars in Benin and USD 302 million in Niger, with each of these investments supported by contributions of USD 15 million from the governments of Benin and Niger.
The investment is estimated to benefit nearly 1.2 million people.
The initiative integrates two main projects: the Corridor Infrastructure Project and the Corridor Efficient Operations Project.
The Infrastructure Project aims to reduce vehicle operating costs and increase travel speeds by improving 210 kilometers of roads, leading to faster and more efficient transit of goods between markets and along the corridor.
This includes the rehabilitation and upgrading of approximately 83 kilometers of roads between the cities of Bohicon and Dassa in Benin, and the rehabilitation and upgrading of approximately 127 kilometers of roads between the cities of Niamey and Dosso in Niger.
The project also includes the implementation of policies and institutional reforms needed to help each of the governments better perform regular road maintenance
The Efficient Corridor Operations Project, meanwhile, aims to reduce transportation costs along the transport corridor from Niamey to Cotonou by implementing reforms designed to impact and improve the efficiency of operations in the truck freight sector.
This entails approach load management, regulatory review and capacity building, freight vehicle regulation and the organization and establishment of a corridor authority.
The agreement was signed in the presence of the presidents of Benin and Niger, Patrice Talon and Mohamed Bazoum, respectively, MCC Executive Director Alice Albright, as well as US Secretary of State Antony Blinken.
According to Mr Blinken, the pact marks a significant advancement in bilateral trade between the United States and West Africa. He then stressed that the American government is excited to launch new partnerships with Africa, further highlighting the agreement involving Niger and Benin , stressing that it is a strong foundation for business and livelihoods.
According to the US Secretary of State, the projects will have American partnerships and be transparent with high quality to benefit the people.
When completed, these projects will make it faster and safer to transport goods along the roads and across the borders, connecting Benin and Niger to larger markets of greater opportunity to mobilize this kind of investment.
The Benin-Niger border crossing is, according to available data, one of the busiest bustling places between coastal and landlocked countries in the region, averaging approximately 1,000 vehicles per day.
According to the head of the Millennium Challenge Corporation (MCC), Alice Albrigt connecting vibrant African regional markets is a key part of a broader, inclusive strategy to create sustainable economic growth.
She went on to state that countries can grow faster, create more jobs and attract additional private sector investment when they are part of dynamic regional markets. She stressed that nowhere is this more applicable than in West Africa.
Along with MCC bilateral and regional investments, Benin and Niger will also participate in the African Continental Free Trade Area (AfCFTA), founded in 2018.
This is the largest free trade area in the world, with a market of over 1.3 billion people, although considered smaller regional economic communities, which can impact each country's economic growth and influence the effectiveness of the AfCFTA.
In this regard, Benin's President Patrice Talon said at the Business Forum that this pact is a major innovation in international corporation and cooperation between the United States, Benin and Niger, stressing that it represents a major contribution in the strategy to attract new investors and customers.
It will help bring the two neighboring countries closer, he said, explaining that it will make the space more attractive for business investors.
Niger's President Mohamed Bazoum on his turn, said Benin is a strategic partner for Niger's development since the port of Cotonou is the closest port to Niamey, and hailed the U.S. partners for understanding this and ensuring that they have quality infrastructure between the two countries.
The US-Africa Leaders Summit ends Thursday.
