12 July 2023
Sello Motseta
There are fundamental gaps between the global South and the North in terms of Africa’s stake in value chains and integration stressed President Mokgweetsi Masisi at official opening of US-Africa Business Summit at Royal Aria Convention Centre in Tlokweng.
This year’s Summit has brought together more than 1,000 U.S. and African private sector executives, international investors, senior government officials and multilateral stakeholders.
Officials contend the Summit is therefore, a step forward as various stakeholders forge together toward creating a strong, balanced, transparent, and inclusive trading system that benefits all nations with sub Saharan countries grappling with issues of slowing industrialisation, faltering job creation, limited economic diversification, skills gaps, narrow export commodities and low export capacities.
As a developing country, Botswana falls within this unfortunate category, despite being classified as an Upper-Middle Income Economy. Botswana constitutes less than 0.2% of Africa’s population, and contributes about 1 percent of Africa’s GDP.
“As the world’s largest producer of gem diamonds by value, it is imperative that we develop value chains for raw materials to allow for greater value addition, spur innovation and growth, adapt to climate change, build sustainability, deepen economic diversification, and create opportunities for exploitation of global supply chains,” said President Mokgweetsi Masisi at the US-Africa Business Summit.
He said, “It is also our earnest hope that in consonance with the letter and spirit of the US-Africa Leaders Summit, the Biden Administration will renew the African Growth and Opportunity Act (AGOA) initiative, which expires in 2025.”
The AGOA’s renewal will allegedly give a very strong signal and confidence to the markets and serve as a catalyst for Africa’s industrialisation and inclusion into the global value chains.
Officials also noted that the US Trade Representative and the Secretary General of the ACFTA Secretariat signed an MOU to facilitate the implementation of the AfCFTA, In terms of the agreement, the United States committed $369 million in new investments across Africa, through the US International Development Finance Corporation (DFC).
It also promised to invest over $800 million in the new Digital Transformation with Africa (DTA) initiated by President Biden in line with the AU’s Digital Transformation Strategy and $1.33 billion annually from 2022-2024 (a total of $4billion by 2025) in the health workforce in Africa to build the capacity for more resilient health systems.
Since the inaugural Summit in 1997, the U.S.-Africa Business Summit has grown to become the premier and most influential platform in doing business and investing in Africa.
“The topics here discussed are transformational. The importance is what each individual takes out of Summit,” said Ken Mugambi, Chief Executive Officer of Trinity, a diversified Energy and Technology company with offices in Sudan and Kenya.
He said, “The networks i pick here are instrumental to drive my business. The individual has a very important responsibility to follow through.”
Mugambi stressed that he feels strongly about fair energy transitions. “We cannot be armtwisted to move from carbon fuels without proper alternatives to appease Western world.
Trinity Energy Ltd (TEL) is a leading South Sudanese Company that was incorporated in 2012, specializing in petroleum products and related services.
