Trade and Investment in Sub-Saharan Africa

Photo of garment worker in East Africa
Africa is becoming the next sourcing destination for global apparel buyers.
Riccardo Gangale for USAID

TRADE AND INVESTMENT IN SUB-SAHARAN AFRICA 

The security and prosperity of the United States are linked with Africa’s like never before. Africa will be home to six of the ten fastest-growing economies in the world this year, and spending by African consumers and businesses is expected to reach $5.6 trillion by 2025.

USAID promotes the growth of enterprises that can serve as buyers and suppliers for U.S. businesses, creating jobs that give rise to real economic growth and political stability for both the United States and our African partners. As USAID supports African countries on their journey to prosperity and self-reliance, we also create new opportunities for U.S. businesses, investments, and transatlantic trade.

TRADE AND INVESTMENT HUBS 

USAID Hubs work on the ground to reduce the cost and risk of doing business in Africa, leveling the playing field and cutting through red tape to make investment and trade freer and fairer for everyone. USAID has spent about $94 million on Trade and Institutional Capacity Building in Africa since 2015, engaging with partners across sub-Saharan Africa to:

  1. Deepen regional economic integration
  2. Promote two-way trade with the U.S. under the African Growth and Opportunity Act (AGOA)
  3. Attract investment that drives commercial expansion within the region and to global markets

GOALS AND IMPACT

Link Investors with Profitable, Growing Enterprises

  • Africa’s rate of return on investment is higher than any other region. The Hubs have created investment opportunities in Africa worth $600 million—and growing.
  • The Hubs are spearheading a new model of private-sector led development. For every $1 of public money spent on trade programs in Africa, the Hubs leverage $9 in private investment. 

Connect U.S. Businesses With Buyers and Suppliers

  • Trade grows the U.S. economy by generating new markets for American goods and services. American companies exported nearly $22 billion in goods to Africa last year.
  • U.S. exports to sub-Saharan Africa supported 120,000 U.S. jobs in 2014.
  • AGOA is the cornerstone of U.S. trade policy with Africa. The Hubs have directly leveraged $1.3 billion in African exports under AGOA.

Empower the African People on Their Journey to Prosperity and Self-Reliance

  • Since 2010, the Hubs have created 46,000 African jobs.
  • Many of these jobs are held by women who tend to invest job-related income into their families and communities
  • Since 2004, the Hubs have assisted 2,300 private enterprises and non-governmental organizations working on food security.

 

 

Last updated: June 05, 2018

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