US companies plan $14b in Africa investments

Tuesday August 5 2014

President Uhuru Kenyatta and former US President Bill Clinton in Washington, DC on August 4, 2014. US President Barack Obama, Mr Clinton, other US officials and chief executives of top US companies hope to woo a gathering of some 45 African heads of state and government and African business chiefs in a day-long forum. PHOTO | PSCU
President Uhuru Kenyatta and former US President Bill Clinton in Washington, DC on August 4, 2014. US President Barack Obama, Mr Clinton, other US officials and chief executives of top US companies hope to woo a gathering of some 45 African heads of state and government and African business chiefs in a day-long forum. PHOTO | PSCU
President Uhuru Kenyatta meets Rwanda President Paul Kagame at the US-Africa leaders summit in Washington DC on August 4, 2014. PHOTO | PSCU
President Uhuru Kenyatta meets Rwanda President Paul Kagame at the US-Africa leaders summit in Washington DC on August 4, 2014. PHOTO | PSCU
President Uhuru Kenyatta speaks to former US President Bill Clinton during the Pan African leaders' dinner in Washington, DC on August 4, 2014. PHOTO | PSCU
President Uhuru Kenyatta speaks to former US President Bill Clinton during the Pan African leaders' dinner in Washington, DC on August 4, 2014. PHOTO | PSCU
President Uhuru Kenyatta meets former Malawi President Joyce Banda during a dinner in Washington, DC on August 4, 2014. PHOTO | PSCU
President Uhuru Kenyatta meets former Malawi President Joyce Banda during a dinner in Washington, DC on August 4, 2014. PHOTO | PSCU
US civil rights leader Jesse Jackson(L) greets South African President Jacob Zuma August 4, 2014 at the National Press Club on the sidelines of the US-Africa Summit in Washington, DC.   AFP PHOTO / Karen BLEIER
US civil rights leader Jesse Jackson (left) greets South African President Jacob Zuma August 4, 2014 at the National Press Club on the sidelines of the US-Africa Summit in Washington, DC. AFP PHOTO / Karen BLEIER
Tanzanian President Jakaya Mrisho Kikwete (right) with US Secretary of State John Kerry during the Civil Society Forum at the US-Africa Leader Summit in Washington, DC, August 4, 2014.
Tanzanian President Jakaya Mrisho Kikwete (right) with US Secretary of State John Kerry during the Civil Society Forum at the US-Africa Leader Summit in Washington, DC, August 4, 2014. Washington aims to wake up US business to the opportunities in Africa with the landmark US-Africa Leaders Summit this week, as China and Europe steal a march on the world's fastest-growing continent. As many as four dozen African leaders, and hundreds of businessmen with them, will for their part be looking to see if US investors and traders can move beyond old stereotypes of a continent mired in conflict and corruption and recognize its huge potential. AFP PHOTO / Jim WATSON
John Podesta listens as Macky Sall, president of Senegal, during the Resilience and Food Security in Changing Climate Forum at the National Academy of Sciences as part of the first US-Africa Leaders Summit on August 4, 2014 in Washington, DC. PHOTO | PETE MAROVICH | GETTY IMAGES | AFP
John Podesta listens as Macky Sall, president of Senegal, during the Resilience and Food Security in Changing Climate Forum at the National Academy of Sciences as part of the first US-Africa Leaders Summit on August 4, 2014 in Washington, DC. PHOTO | PETE MAROVICH | GETTY IMAGES | AFP
US Interior Secretary Sally Jewell speaks during a Dialogue on Combating Wildlife Trafficking on the sidelines of the US-Africa Leaders Summit in Washington, DC, on August 4, 2014. AFP PHOTO/Jewel Samad
US Interior Secretary Sally Jewell speaks during a Dialogue on Combating Wildlife Trafficking on the sidelines of the US-Africa Leaders Summit in Washington, DC, on August 4, 2014. AFP PHOTO/Jewel Samad
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WASHINGTON, Tuesday

US companies are planning $14 billion worth of investments in Africa, a White House official has said as Washington seeks to strengthen commercial ties during the historic US-Africa leaders summit.

With the United States seeking to counter the Chinese and European trade dominance in Africa, the official said the investments will span a range of industries, including construction, clean energy, banking and information technology.

The announcement came on the second day of the summit, during which President Barack Obama and US business chieftains hope to deepen ties with their African counterparts. (READ: Uhuru arrives in Washington for US-Africa summit)

While the United States remains the largest source of investment on the continent, it has been largely in the oil and gas sector.

WOO 45 AFRICAN LEADERS

China and Europe have built stronger positions in infrastructure, manufacturing and trade, with China's trade with Africa more than double that of the United States. (See the graphic below.)

Mr Obama, former president Bill Clinton, other US officials and chief executives of top US companies hope to woo a gathering of some 45 African heads of state and government and African business chiefs in a day-long forum in Washington.

"This forum will intensify efforts to strengthen trade and financial ties between the United States and Africa and seek to create partnerships that will promote trade, accelerate job growth, and encourage investment," the official said.

Africans criticise US businesses as bound too deeply to old stereotypes and too risk-averse to plunge into business with them, even though the continent is growing faster than any other region on the globe.

BIG PART OF THE PIE

US officials especially want to win a large chunk of the business of electrifying Africa, building power-generation plants and distribution facilities that will further enhance economic growth.

Washington also wants to ensure that US businesses get a big part of the pie of 350 million middle-class African consumers. No details were provided on the composition or timing of the $14 billion.

General Electric, which already has a formidable presence in Africa, said Monday it was planning $2 billion in new investments to build and assemble equipment for oil and other industries, as well as training in health and other sectors.