The United States President Donald Trump is paving the paths to rival China’s enhanced economy and political influence in Africa. His administration is to approve an initiative to overhaul investment strategy and the main beneficiary would be Kenya.
THE BIG PICTURE: The US Senate has passed a bill that will create a 60 billion agency to invest in developing countries such as African one, in a way to countering China’s global influence.
China government has pledged to invest more 60 billion in the African continent, but this triggered some backlash from Washington which views China as Global Economic power, which is ‘plundering and usurping’ African’s assets.
According to a State Department official, the plan designed for the Sub-Saharan region is strategic and to offer a better alternative to the African countries against Chinese state investment.
Key figures in the U.S. Congress have composed a layout and it is termed as the Build Act (Better Utilization of Investments Leading to Development Act). It is very different from China’s approach and will increase the funds to $60 billion for promoting US companies, brands, and products in the continent.
The official added, “Our theory on engagement [in Africa] is that it should be led by the private sector.”
Assistant Secretary in the State Department’s Africa Bureau, Matthew Harrington, said China’s strategy in Africa is predatory lending with it’s the Build Act, but Washington to take an equity stake of its own in the continent for development projects.
Kenya to be the major beneficiary of the BUILD Act of The US government.
It is believed Kenya will benefit the most, the officials have not yet specified the strategy on how the new International Development Finance Corporation will work in the direction, but it is said the US private businesses will invest more aggressively in the country Kenya.
Africa specialist Witney Schneidman recently wrote about the Build Act that, “It makes US companies more competitive and reduces the risk in a growing market that is not well understood by American business.”
Amid criticism, it is reported that Trump to soon sign it into law.
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