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Benefitting From Growth In American Economy

As the number one economy in the world, the United States of America continues to serve as a barometer in terms of impact it has on the other economies. Thus, once there are any changes in its economy, other countries are bound to feel the impact. The 2008 economic crisis in the US immediately led to a downsize in many other economies and countries in Africa, in particular that depend so much on crude oil exports suffered the consequences with cuts in most of their development endeavours. 

Ten years after the Obama administration worked hard to get the situation under control, the arrival in the White House of business guru, Donald Trump has shown continues determination by the American Administration to ensure better economic performance. 

The jobless rate reportedly hit 4.1% in October, 2017, its lowest point since December 2000. The stock markets have also shot up, something the President loves to talk about on social media. Other indicators include: the consumer confidence indexes that are increasing with acceleration in consumer spending and businesses are also confident. The small business confidence indexes reportedly jumped immediately after the election of Trump. All these are coming at a time the global economy is witnessing some positive trends, Africa ought not to be left behind anymore if the leadership were to put in place measures to attract more investors both from within and abroad. 

In the year 2000, the American Congress passed the Africa Growth and Opportunity Act (AGOA). It targeted Sub-Sahara Africa to foster market-based economic growth and develop trade relationships by enabling free-access to the American market for certain goods from countries that qualified. Such goods were to enter the U.S. at no cost to the American taxpayer. Analysts have argued that the measure alone was inadequate as changing circumstances and the impressive Chinese investments required that the US should increase its engagement in Sub-Sahara Africa. 

But, the slogan by the Trump administration focusing on America First and regular outings by the American President that are to say the least derogatory towards the African Continent, may create the feeling that he is looking forward to an era whereby Americans function in total negation of others, especially the African. However, the fact that he continues to talk about even the defaults of the continent is indicative of the fact that even the most of racist minds still has to be concerned about what is happening in Africa. As such, given the mechanisms that characterise the relationships among nations, the current situation of economic progress in the United States must not leave the Africans indifferent. The tradition of foreign investors searching for raw material from Africa may not end any time soon. In addition, the impact of direct foreign investment that has been very dominant in Africa requires that African countries ensure a friendly business climate to attract foreign investors that can boost inclusive growth and improve on the living conditions of their populations. Yet, it must be said that the about 250 million American population is sufficient market compared to the disjointed African environment that is bedevilled by political instability and poor governance. 

 

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