Congresswoman, Sheila Cherfilus-McCormick, says in the global competition for economic ties with Africa, the United States is “probably” fourth. This is despite the US, particularly during President Joe Biden’s term, pledging to become Africa’s preferred trade and economic partner.
Africa not only boasts a proven 30% of the world’s critical minerals, but also has the youngest population, fastest democratising countries and more growth potential than most of the world.
Superpowers like China and Russia are seen as being at the forefront of wooing Africa across political, diplomatic, military and economic fronts, while the United States, the European Union and the United Kingdom, with their oscillations between left and right wing governments, are lagging behind.
US-Africa trade and economic relations are based on the African Growth and Opportunities Act (AGOA), a trade arrangement between the US and sub-Saharan African countries, including Botswana established in 2000 which provides relaxed access to the American market.
Despite impassioned lobbying by African countries for an early renewal of the deal, including talks during the high-level US Africa Leaders Summit called by Biden in December 2022, AGOA is set to expire this September.
Annually, AGOA involves billions of US dollars in trade and while Botswana’s own exports, which were mainly textile, have declined, resurgent numbers are being seen in diamond jewellery from KGK Diamonds and other non-diamond sectors.
The delayed renewal and the failure to secure early commitments on the same, have introduced “uncertainty,” the dreaded enemy of commerce that hampers investments, deal-making and adds a risk premium on trade.
“A delay by the US gets attention throughout the world, especially when we go through an election.
“No one is sure what’s going to happen and we seem like we don’t know what’s going to happen,” the congresswoman said.
Cherfilus-McCormick says the US’ stated ambition of being Africa’s selected partner in development, is not reflected in action.
“Anytime that time is lapsing and you are staggering, I feel like this shows that something is not a priority.
“When you say ‘we prioritise Africa,’ priority means you don’t wait to reauthorise; it means you reauthorise today.
“We have to reauthorise immediately and the conversations of when we will reauthorise or what it will look like, have to be something that ends,” she said.
Cherfilus-McCormick was speaking on Tuesday at the Brookings Institution Foresight Africa dialogue for 2025-2026 in Washington DC, an annual event that brings high profile delegates to brainstorm on the continent’s development trajectory.
Participating virtually, President Duma Boko gave the keynote address while his Minerals and Energy minister, Bogolo Kenewendo, presented on the evolution and future of Botswana’s minerals policy.
Dialogue at the event almost naturally turned towards AGOA, a kind of elephant in the room, particularly with the coming-into-power of Donald Trump, who is expected to fervently pursue inward-looking policies for the US.
“I believe in making the US great and this sounds wonderful but when you look at the competition in Africa, we are probably fourth, which is a reality we have to own as the US,” Cherfilus-McCormick told the meeting.
“Why are we fourth in terms of working with Africa?
“Because we have not been truly prioritising Africa and I’m looking forward to working with my colleagues so that we can be first in Africa.
“First in economic incentives, first in helping Africa with its critical minerals so that China is not taking everything out of Africa and processing it.”
AGOA is a creature of the US legislative houses and its reauthorisation banks on the relevant bill seeking renewal being moved through the structures of the US Congress. While the US President has the power to strike countries out of AGOA, he has little control over renewals, apart from rallying his party to put together the legislation required to reauthorise.
Biden, who gave his farewell speech on Wednesday, last year expressed support for AGOA renewal.
“As I’ve said before, America is all in on Africa.
“This week—and in the weeks to come—let’s prove it.
“And together, let’s ensure future generations of Americans and Africans can meet the challenges and seize the opportunities of the decades ahead,” Biden said last July at the AGOA Forum meeting in Washington DC.
Trump, who takes over officially on January 20, has generally been hands-off in his policy towards Africa. The incoming president drew the ire of African leaders during his previous tenure, when he allegedly referred to the continent as a “shithole”.
Other analysts, however, have noted that Trump was responsible in 2019 for the establishment of the U.S. International Development Finance Corporation, which invests billions of dollars in energy, healthcare, critical infrastructure, and technology in low-income countries, particularly in Africa. The agency, which had long been in the works under different administrations, had a debt and equity portfolio of $11 billion portfolio in Africa as at June last year.
Cherfilus-McCormick is hoping to secure bipartisan consensus towards a quick reauthorisation of AGOA, at a time when Congress and Cabinet are dominated by Republicans.
“Many of my Republican counterparts going into Cabinet come from Florida and I have worked with them for some time.
“People say to me ‘you know how to work with crazy’ and I say you learn how to work with everyone.
“Everybody has their soft spots and strong spots and I have learned that the more I can expose them to not just the continent, but the people, what makes them tick and how they feel, the more they can empathise with the continent.
“They can see that ‘it’s not just a delay or not important,’ but they have seen the faces and they understand the highs and lows and can zone in on that.”
Last year, reports emerged that a bill for renewal had begun circulating amongst US lawmakers, but thus far, it is not clear when that will translate to a reauthorisation.
