Economic policies, trade agreements: Aspirations of African entrepreneurs under Trump admin

As Donald Trump embarks on his second term in office, African entrepreneurs are keenly observing the economic policies and foreign trade agreements that could shape their business landscape.

Since the 2016 election, industry leaders have voiced their hopes and concerns regarding US trade relations with Africa, particularly in light of the Trump administration's protectionist stance and its implications for growth on the continent.

Importance of AGOA, bilateral agreements

One of the most significant frameworks for US-Africa trade is the African Growth and Opportunity Act (AGOA), which has provided eligible African countries with duty-free access to the US market for thousands of products.

Entrepreneurs across Africa are advocating the reinforcement of AGOA, emphasising its role in boosting exports and creating jobs.

As noted by Amina Mohammed, a Nigerian entrepreneur, "AGOA has been a lifeline for many businesses in Africa.

We need the Trump administration to not only extend it but also to expand its scope to include more products and services."

In addition to AGOA, there is a strong desire for the establishment of new bilateral trade agreements that can facilitate smoother trade relations.

Many entrepreneurs believe that such agreements could help reduce tariffs and non-tariff barriers, making it easier for African goods to enter the US market.

"We want to see a commitment to negotiate trade deals that are mutually beneficial," said Samuel Karanja, a Kenyan business leader.

"This is crucial for fostering innovation and attracting foreign direct investment."

Impact investments, jobs

The potential for increased foreign direct investment (FDI) is another critical area of interest for African entrepreneurs.

They argue that favourable trade policies could attract US companies looking to invest in Africa, thereby creating jobs and stimulating local economies. 

"If the Trump administration can create a conducive environment for investment, it will not only benefit American companies but also empower African businesses," stated Fatoumata Diallo, a Malian entrepreneur.

Moreover, the focus on infrastructure development, particularly in sectors like energy and technology, is seen as vital for enhancing the investment climate. Entrepreneurs are calling for US support in building infrastructure that can facilitate trade and innovation.

"We need partnerships that go beyond trade; we need investments in our infrastructure to support our growth," emphasised Diallo.

Tourism, innovation: Key

Tourism is another sector where African entrepreneurs see significant potential for growth through revised US policies. With the right incentives, they believe that increased travel from the US could boost local economies and create jobs.

"Promoting tourism between the US and Africa can lead to cultural exchange and economic benefits for both sides," noted Karanja.

Innovation is also at the forefront of discussions among African entrepreneurs.

They are eager to see policies that support technology transfer and collaboration between US and African tech companies.

"We are in a digital age, and technology partnerships can drive innovation in Africa," said Mohammed.

"We need the Trump administration to recognise the potential of African startups and support initiatives that foster this growth."

Conclusion: Call for action

As the Trump administration shapes its economic policies, African entrepreneurs are calling for a renewed focus on trade agreements and foreign investment strategies that prioritise mutual growth.

By reinforcing AGOA, establishing new bilateral agreements, and supporting infrastructure and innovation, the US can play a pivotal role in fostering economic development across Africa.

The voices of African entrepreneurs reflect a collective aspiration for a partnership that transcends traditional trade dynamics, emphasising collaboration, investment and shared prosperity.

As the global economic landscape continues to evolve, the Trump administration must heed these calls and work towards policies that not only benefit the US but also empower African nations to thrive.

The writer is an entrepreneur/founder of Vineyard Creative, a company dedicated to driving transformative change in the marketplace.