December 12, 2019
The Trump Administration’s Prosper Africa Initiative
Prosper Africa is a Trump Administration initiative
Structure
intended to foster U.S.-African trade and commercial ties.
Prosper Africa is not a new foreign aid program. Rather, its
The initiative seeks to double U.S.-Africa trade, spur U.S.
goal is to mobilize and harmonize the existing programs,
and African economic growth, and—as U.S. officials have
resources, and capabilities of 16 U.S. agencies and
stated—“demonstrate the superior value proposition of
departments in a cohesive, coordinated manner to achieve
transparent markets and private enterprise for driving
the initiative’s objectives. In addition to USAID, it includes
growth.”
all U.S. trade promotion agencies: the Export-Import Bank
(EXIM), the Trade and Development Agency (TDA), the
Past Administrations have similarly sought to expand U.S.-
Small Business Administration (SBA), and the Overseas
Africa trade and investment ties, but gains to date have
Private Investment Corporation (OPIC), which is currently
been modest. In 2018, Africa accounted for 1.6% of U.S.
transitioning into a new agency called the U.S. International
global trade and 0.8% of U.S. foreign direct investment—
Development Finance Corporation (DFC). Other
about half the level recorded in 2010, the peak year for such
participating agencies include the Office of the U.S. Trade
measures over the past decade. These trends suggest that
Representative (USTR), the Millennium Challenge
achieving significant trade and investment growth may not
Corporation (MCC), the U.S. African Development
be easy. As such, Congress may seek to determine whether
Foundation (USADF), and the Departments of Agriculture,
Prosper Africa is adequately funded, effectively configured,
Energy, Homeland Security, State, Transportation, and the
and a proper vehicle to attain such goals. (For recent U.S.-
Treasury. The roles of some of these agencies remain under
Africa trade trends, see Figure 1).
development, as do initiative impact metrics.
Background and Vision
Figure 1. U.S. Trade with Africa ($ in billions)
Then-National Security Advisor John Bolton announced
Prosper Africa during a late 2018 speech unveiling the
Administration’s Africa strategy. He said the initiative
would foster U.S. investment, expand Africa’s middle class,
and enhance business climates across the region. He also
said it would help to counter “predatory” financial and
political efforts by Russia and China “to gain a competitive
advantage over the United States” in Africa and “provide
strong alternatives to external state-directed initiatives” in
the region. Prosper Africa, he stated, would “encourage
African leaders to choose high-quality, transparent,
inclusive and sustainable foreign investment projects,”

including from the United States, and increase African
Source: U.S. Bureau of Economic Analysis (BEA).
access to finance for such projects.
Implementation
The State Department’s FY2020 foreign aid budget request,
According to USAID, each U.S. embassy in Africa has
which seeks $50 million for U.S. Agency for International
formed a Prosper Africa “deal team” drawn from existing
Development (USAID) implementation of Prosper Africa,
mission staff. These teams’ role is to link U.S. firms to
portrays the initiative as having transformative potential
trade and investment opportunities in Africa, enable African
both for African development and U.S. economic interests.
firms to access similar opportunities in the United States,
Prosper Africa, the request states, aims to level “the playing
and facilitate private sector access to U.S. trade assistance,
field” for U.S. firms in Africa, “increase U.S. exports,
financing, and insurance services. A Washington DC-based
create and support American jobs,” and unleash
team supports those in Africa, as well as efforts to expand
“unmatched [U.S.] competitive advantages to vastly
U.S. business interest in African markets. Officials also
accelerate” U.S-Africa trade and investment. The initiative,
plan to establish a single online point of access to agencies’
the request says, is to provide “early market intelligence” to
services and resources, as well as information about Prosper
U.S. firms in Africa and “create a pipeline of U.S.-Africa
Africa. USAID’s trade hubs in East, Southern, and West
commercial opportunities.” Prosper Africa also is intended
Africa also are to help implement the initiative—though the
to help “close deals,” “design blended-finance solutions to
East Africa hub is currently inactive, pending the award of
de-risk investment opportunities,” support regulatory and
a new contract. A fourth North Africa hub also is planned.
policy reforms in Africa, and remove other non-tariff
Administration officials formally launched Prosper Africa
barriers to investment (e.g., logistical hurdles). Through
in mid-2019 at the U.S. Corporate Council on Africa’s U.S-
such efforts, Prosper Africa aims to help transform U.S.-
Africa Business Summit in Mozambique. USAID hosts a
Africa relations from “an aid-based focus to [a] true trade
small initiative secretariat, led by a USAID Acting Prosper
partnership”—a goal shared by several Administrations.
https://crsreports.congress.gov

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The Trump Administration’s Prosper Africa Initiative
Africa Coordinator, and USAID and the Commerce
Building the capacity of African states to ensure
Department co-chair weekly Interagency Planning
transparency and the rule of law in economic contexts (e.g.,
Committee meetings. This work is guided by a non-public
to effectively enforce contract, property rights, and anti-
National Security Council-coordinated strategy. A separate
corruption laws, and ensure equal market access for foreign
inter-agency implementation plan containing goal and
and local investors) also is likely to be a long-term
assessment metrics also is being developed. USAID is
endeavor. The same may be true of efforts to reform
funding initial Prosper Africa implementation and
inefficient cross-border trade procedures and encourage
coordination activity with FY2018 resources.
African states to adopt and implement effective trade and
investment policies—all longstanding U.S. goals.
Prosper Africa in Perspective
Whether an initiative like Prosper Africa can double total
While Prosper Africa emphasizes the facilitation of private
U.S. trade with Africa—dominated in 2018 by U.S. exports
sector transactions and the coordination of trade promotion
of machinery, vehicles, aircraft, and fuels, and U.S. imports
and other U.S. assistance to enhance U.S.-Africa trade
of fuels, precious metal and stone, agricultural goods, and
relations, to some it may not be clear how much it may differ
iron and steel—may be debated. Some of the fastest-
from past efforts to achieve similar objectives. USAID’s Africa
growing economies globally are in Africa, and a marked
trade hubs, launched in the early 2000s, have each pursued a
increase in trade with a handful of them could drive marked
unique, evolving set of region-specific trade capacity-building
Prosper Africa progress. Multiple structural and economic
activities. They also have supported intra-regional trade and
governance weaknesses, however, have long made Africa
economic integration and worked to expand African exports
less economically competitive than other world regions.
globally and to the United States under the African Growth
and Opportunity Act (AGOA Title I, P.L. 106-200, as
Even in the better-performing countries, structural barriers
amended, a trade preference program).
substantially hinder trade. Infrastructure gaps (e.g., limited
and unreliable electrical, transport, and communication
Other past U.S. efforts include the Obama Administration’s
systems), for instance, often impose high production,
Trade Africa and Doing Business in Africa (DBIA) initiatives.
logistical, and transportation costs, dampening commerce.
The former was a trade hub-led effort to achieve some of the
Meanwhile, low rates of industrialization and value-added
same goals as Prosper Africa in selected countries. While
processing of raw commodities often constrain the
U.S.-Africa trade was a Trade Africa goal, the hubs offered
production of higher-value goods, cross-sectoral linkages
few direct services to Africa-bound U.S. investors, in part as
and economies of scale, and complex goods, services, and
USAID’s mandate focuses on foreign development, not U.S.
financial markets. Some African exporters also face U.S.
commercial activity. DBIA, a Commerce Department-led
import restrictions, such as tariffs and quotas that limit
effort to increase U.S. business exposure to African markets
African access to the U.S. market for certain import-
and U.S. trade promotion programs, is now defunct, apart
sensitive agricultural and other products.
from the DBIA President's Advisory Council. Made up of
private sector appointees, it provides advice on strengthening
Prosper Africa could potentially complement and leverage
U.S.-Africa commercial ties, including under Prosper Africa.
regional trade facilitation efforts. The African Continental
Free Trade Area (AfCFTA), for instance, which seeks to
Prospects and Challenges
reduce trade barriers among its 55 signatories, eventually
could lead to greater market integration across Africa. U.S.
At an institutional level, success for Prosper Africa may be
officials have expressed optimism about AfCFTA’s
measured, in part, by how effectively the multiple
potential, but how Prosper Africa may interact with
participating agencies—entities with highly varied
AfCFTA is not clear. Nor is the initiative’s potential role in
missions, performance goals, and organizational cultures—
fostering the Administration’s goal of signing a U.S. free
are able to coordinate their efforts. To do so, agencies are
trade agreement with an as-yet unidentified African
drawing on experience gained under other ongoing multi-
country. U.S. support for African countries’ ratification and
agency development initiatives, such as Power Africa, an
implementation of the World Trade Organization’s (WTO)
effort to expand access to electricity in the region. Under
Trade Facilitation Agreement (TFA) could also aid Prosper
Power Africa, USAID and U.S. trade agencies have worked
Africa. TFA implementing countries, which include 35 of
together particularly closely, and developed a project and a
Africa’s 44 WTO members, commit to customs and
transaction facilitation approach that closely informs
regulatory reforms.
Prosper Africa’s deal teams model.
Issues for Congress
Some Prosper Africa goals may be easier to achieve than
For Members of Congress who support the goals set out
others. Streamlining access to U.S. trade and investment
under Prosper Africa—including countering Chinese
programs and aiding specific transactions, for instance, may
economic sway in Africa—the initiative may be welcome.
pose challenges, but are in the direct span of control of U.S.
Some Members may seek to better understand how the
agencies. Promotion of U.S. government loans and financial
initiative will undertake its work, however, as they weigh
services is also an agency prerogative, although private
how, if at all, to fund and support implementation. In doing
sector demand ultimately drives utilization rates. Other
so, Congress may seek to assess the Prosper Africa strategy
goals—such as financial sector expansion and improving
and implementation plan, as well as the initiative’s metrics
business climates as a means of spurring private sector-led
for measuring and achieving success as they are developed.
growth—are broader outcomes less likely to change in
response to direct U.S. agency action.
Nicolas Cook, Specialist in African Affairs
https://crsreports.congress.gov

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The Trump Administration’s Prosper Africa Initiative

IF11384
Brock R. Williams, Specialist in International Trade and
Finance


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