US-Africa summit garners over $17 billion in investment pledges

The announcement will occur at the US-Africa Business Forum, part of a three-day Africa summit in Washington meant to showcase US interest in improving trade and investment in the region. AFP | PAUL J. RICHARDS 

By KRISTA HUGHES and LESLEY WROUGHTON, Reuters

In Summary

• General Electric announced $2 billion (KShs175 billion) to boost infrastructure, worker skills and access to energy.
• The Coca-Cola Co said it would invest $5 billion (about KShs440 billion) with African bottling partners over six years.
• Dangote signed an agreement to jointly invest $5 billion in energy projects in Africa with Blackstone Group funds.

African leaders have hailed investment pledges of more than $17 billion (about KShs1.5 trillion) as a fresh step in the right direction.

At a Washington summit on Tuesday, they called for.................................


 a deeper economic relationship with the United States.

US and African companies and the World Bank pledged new investment in construction, energy and information technology projects at the US-Africa Business Forum, including several joint ventures.

"The United States is determined to be a partner in Africa's success," President Barack Obama said in a speech at the forum. "A good partner, an equal partner and a partner for the long term."

The US president also urged African officials to create conditions to support foreign investment and growth.

"Capital is one thing, development programmes and projects are one thing, but rule of law, regulatory reforms, good governance — those things matter even more," he said.

African leaders said they were optimistic of becoming full partners in a relationship worth an estimated $85 billion a year in trade flows, as US business leaders eyed opportunities in the region, home to six of the world's 10 fastest-growing economies — even if they might be late to the party.

READ: Billions of dollars for Africa at Washington summit

"We gave it to the Europeans first and to the Chinese later, but today it's wide open for us," said the chief executive of General Electric Co, Jeff Immelt, who on Monday announced $2 billion (KShs175 billion) to boost infrastructure, worker skills and access to energy.

Tanzanian President Jakaya Kikwete said Africa wanted to move away from a relationship of "aid donor and aid recipient" to one of investment and trade.

He told the forum that with Obama and senior officials encouraging the business community "to take Africa seriously, I think we will make it."

More than 90 US companies participated in the forum, part of a three-day summit that has brought almost 50 African leaders to the US capital, including Chevron Corp, Citigroup Inc, Ford Motor Co, Lockheed Martin Corp, Marriott International Inc and Morgan Stanley. Many already have a foothold in the region, which is expected to have a larger work force than China or India by 2040 and boasts the world's fastest-growing middle class, supporting demand for consumable goods.

The Coca-Cola Co said it would invest $5 billion (about KShs440 billion) with African bottling partners in new manufacturing lines and equipment, as well as safe water access programs, over six years, and the chief executive of IBM, Ginni Rometty, said the IT giant would plough more than $2 billion into the region over seven years. Still, Aliko Dangote, the president of Nigeria's Dangote Group, whose operations include cement making, flour milling and sugar refining, said nothing works without adequate power.

READ: General Electric to invest $2 billion in Africa

Dangote signed an agreement to jointly invest $5 billion in energy projects in sub-Saharan Africa with Blackstone Group funds, also calling for the US Export-Import Bank to remain open to support African companies buying US goods.