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U.S. Unveils Trade-Led Approach to Africa, Cuts Back on Aid

U.S. Unveils Trade-Led Approach to Africa, Cuts Back on Aid
Wednesday, 21 May 2025 14:56

• U.S. unveils a new trade-focused approach for Sub-Saharan Africa, moving away from aid
• The strategy aims to link U.S. business interests with Africa’s development goals
• A new regional office in Abidjan will support outreach to Francophone African countries

Troy Fitrell, a senior official from the U.S. Department of State’s Bureau of African Affairs, introduced a new commercial diplomacy strategy for Sub-Saharan Africa. This was during a briefing with journalists in Abidjan, Côte d’Ivoire, on May 20.

The approach marks a shift away from decades of aid-driven policies toward deeper trade and investment partnerships. Fitrell said this change is based on long-term observations that show commercial partnerships are more effective than traditional aid when it comes to driving lasting economic growth. The United States wants to focus more on business and less on charity.

This strategy comes at a time when Africa is becoming increasingly important on the global stage. With a fast-growing, young population and rapid urbanization, the continent presents a major opportunity for global investors. The African Continental Free Trade Area (AfCFTA), which aims to create a single market of 1.3 billion people, is a key example of that potential. The United States recognizes this and is looking to better align its interests with Africa’s development goals.

The new approach centers on supporting African-led priorities like industrialization, value-added processing of raw materials, and job creation. It also reflects a need to change how both sides view their partnership—after years shaped by humanitarian aid and security cooperation.

During his visit to Abidjan, Fitrell took part in several activities to promote this shift. He formally announced the new strategy during the Africa CEO Forum and met with representatives from U.S. Chambers of Commerce in 12 neighboring countries to explore business opportunities. He also held bilateral talks with African government officials, including presidents, vice presidents, trade ministers, and foreign ministers.

To deepen ties with Francophone African nations, the U.S. has opened a new office in Abidjan. This office is designed to strengthen communication and increase trade in French-speaking countries, taking into account their unique legal and language frameworks. The move also highlights Côte d’Ivoire’s role as a regional economic hub and the need to tailor U.S. engagement to local realities.

Several U.S.-Africa cooperation tools are already in place. These include development financing through the U.S. Export-Import Bank and the U.S. International Development Finance Corporation (DFC), as well as Prosper Africa, a one-stop platform that connects African and American businesses. However, some aid programs have seen budget cuts or shutdowns, including USAID projects, the Millennium Challenge Corporation, and funding for the African Development Fund (ADF).

Meanwhile, the future of the African Growth and Opportunity Act (AGOA), a flagship U.S. trade law set to expire in September 2025, remains uncertain.

Africa also has expectations of its own. Leaders want clear local benefits from partnerships, especially in terms of jobs and technology transfers, areas where China, Africa’s largest trading partner, still falls short. But no matter which partner they choose, African governments will need to negotiate smarter and more balanced deals to stay competitive on the global stage.

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