THE FLAGSHIP REPORTS

The Flagship Reports with Dr. Chris Kuehl is both an “Officer of the Watch” briefing of economic conditions and an Executive Briefing on specific situations impacting those conditions. Written and presented by the officers of Armada Corporate Intelligence, Dr. Kuehl lightens up the mood of sometimes distressful geoeconomic news with a bit of humor. This monthly podcast includes information from the Flagship Reports issued 3 times and week, and AISI, the Armada Strategic Intelligence System, a tool for durable goods manufacturers that dives deep into the sector each month to provide more than 95% accurate near-term forecasts.

Africa is the poorest and fastestgrowing continent. It needs jobs to prevent social and political unrest. It needs trade and investment. Unfortunately, Africa represents just 3% of world trade. African leaders, in both government and business, recognize the importance of the U.S. market and the high standards of U.S. businesses, especially compared with the poor transparency and environmental records of many Chinese companies.

American businesses have not been too keen to get involved in Africa for many reasons, including a perception of high risk, poor infrastructure, and lack of government support. With more U.S. government tools now available, including the recently launched Development Finance Corporation, some businesses are looking to begin their involvement in Africa.

U.S. companies are not competitive against Chinese and other firms in certain industries, such as road and bridge construction. Chinese firms have lower cost structures and benefit from decades of African experience. But some U.S. companies are competitive, including in the health, financial technology, and renewable energy sectors.

The United States has a great asset in its large and vibrant African diaspora, many of whom maintain commercial connections with Africa. The United States also remains a source of inspiration for the large majority of Africans, who aspire to democratic governance. Washington should continue to support African democrats, civil society, and media that are pressing for open and inclusive governance, often in the face of repression. China, on the other hand, opposes these values.

At a U.S. - Africa summit in Washington in December 2022, the United States announced plans to commit $55 billion to Africa over the next three years, including $15 billion for trade and investment partnerships and deals, and $20 billion for health programs, of which $11.5 billion for HIV/AIDS. Just over a billion dollars will be allocated in support of African-led efforts in conservation, climate adaptation, and energy transitions.

Further statistics on exports and imports will only serve to illustrate the enormous difference between China’s performance and that of the U.S. Africa is a huge market, and it will continue to grow. One has only to go back to the nineties to see that China represented some 2% of global trade. Today it’s ten times that.

Author profile: Royce Lowe, Manufacturing Talk Radio, UK and EU International Correspondent, Contributing Writer, Manufacturing Outlook. n