Summary:
- The US government’s Prosper Africa initiative has launched the Africa Trade Desk, aiming to connect African agricultural producers with US food retailers. This initiative addresses challenges in trade and aims to boost exports, particularly with the impending expiration of the AGOA trade initiative. It also aligns with broader US efforts to counter Chinese influence in Africa.
Prosper Africa, a national security initiative of the US government, has unveiled the Africa Trade Desk, a platform aimed at bridging African agricultural producers and suppliers with major US food retailers.
Initially, the focus of the Africa Trade Desk, as outlined by Prosper Africa, will be on specialty food items such as citrus fruits, seafood, herbs, and vegetables. Beyond facilitating overseas marketing and securing supply orders, it will also offer financing options for bulk orders. This initiative forms part of a broader strategy to enhance trade between the US and African nations, particularly in light of the impending expiration of the AGOA trade initiative.
In a statement, Prosper Africa revealed that the Africa Trade Desk, operating as a public-private partnership between Prosper Africa and Afritex Ventures, aims to facilitate at least $300 million in export sales between Africa and the United States within the next 18 months.
The platform is designed to establish a streamlined supply chain between African suppliers and US buyers, encompassing logistics, insurance, and traceability among other aspects.
Isobel Coleman, Deputy Administrator of USAID, emphasized the eagerness of African producers to access the US market, highlighting a lack of established connections with US buyers. Conversely, major US retailers such as Shopify, Sam’s Club, Walmart, and Whole Foods are keen to diversify their product offerings with goods from Africa but face similar challenges in establishing connections. The Africa Trade Desk seeks to address these issues.
As discussions on the amendment and renewal of the African Growth and Opportunity Act (AGOA) continue, the Africa Trade Desk emerges as a timely initiative, given AGOA’s expiration in 2025. AGOA currently provides tariff-free preferential access for up to 6,900 products from 35 African countries to the American market, with negotiations underway for a potential ten-year extension.
Moreover, the Africa Trade Desk aligns with broader US efforts to counter Chinese influence by increasing investments in Africa. In 2022, the US committed $55 billion to the continent over three years, with significant progress reported by December 2023, including the signing of 547 trade and investment deals worth $14 billion, according to Judd Devermont, the US National Security Council senior director for African Affairs.
