U.S. is planning to commit $55 billion to Africa. Here’s where the money will go

The U.S.-Africa Leaders Summit 2022 kicked off in Washington this week. The Summit was to strengthen ties with African partners based on principles of mutual respect and shared interests and values.

The Summit also served as an “opportunity to listen to and collaborate with African counterparts on key areas the United States and Africa define as critical for the future of the continent and our global community,” according to the State Department.

Addressing the summit, U.S. President Joe Biden said “When Africa succeeds, the United States succeeds. Quite frankly, the whole world succeeds as well.” On his part, the White House National Security Advisor Jake Sullivan said the U.S. aims to assist African nations to meet their developmental goals.

To this end, Sullivan disclosed that the U.S. plans to commit $55 billion to Africa over the next three years. The money will go to “a wide range of sectors to tackle the core challenges of our time,” he added. 

How does the U.S. government plan to allocate the $55 billion? The money will be committed to sectors, namely health, climate change, women, and new trade and investment.

Health

On health, the U.S. government plans to work with Congress to invest $1.33 billion annually from 2022 to 2024 in the health workforce in the Africa region, for a total of at least $4 billion by Fiscal Year 2025, the White House said. The U.S. administration also plans to commit $11.5 billion to address HIV/AIDS, $2 billion to cater to the impacts of Covid-19, $2 billion to fight malaria and another $2 billion to address maternal and reproductive health issues. All in all, the U.S. plans to commit about $20 billion to health programs.

Climate change

The Biden administration plans to invest at least $1.1 billion to support the continent’s efforts in conservation, climate adaptation and energy transitions, officials told Reuters.

“These funds include U.S. International Development Finance Corporation investments into Malawi’s Golomoti JCM Solar Corporation, and a Climate Action Infrastructure Facility,” the platform added.

Trade and investment 

The Biden administration also announced $15 billion in trade and investment partnerships and deals.

“They include over $1 billion in deals signed by U.S. Export-Import Bank, including a $500 million memo of understanding with the African Export-Import Bank to support diaspora engagement, a $500 million deal with the Africa Finance Corp, and a $300 million memo of understanding with Africa50 to match U.S. businesses with medium- to large-scale infrastructure projects,” according to Reuters. A new “Clean Tech Energy Network” that supports $350 million in deals was also announced.

Women’s partnerships

The summit also focused on advancing women’s economic participation in Africa. In this regard, the U.S. International Development Finance Corporation announced $358 million of new investments in women’s initiatives. Also, the State Department will unveil a program for green jobs for women with an initial $1 million investment.