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Inthe past decade, U.S companies invested a total of 48.5 billiondollars in Africa(SyndiGate Media Inc. 1).The I.M.F predicts that Africa’s sub-Saharan economy will grow at5.6% and this is higher compared to the economic growth of the restof the world that will grow at 3.6%(Paulo and Liu 318).Estimates by Africa Development Bank, the emerging middle class inAfrica may already be 300 million people or more.

However,American companies that want to invest in Africa face severalproblems, chief among them being political instability and sometimesgovernment regulations that hinder free market operations. Many ofthe countries have unstable governments, with many governments havingto deal with civil unrest every now and them. For example, in theeast Africa region, Burundi is still in chaos after the presidentdecided to remain in power despite the constitution forbidding it(States News Service 1).Boko Haram, in Northern Nigeria is still wreaking havoc in the stateof Borno(Sakendu 139).South Africa witnessed one of the worst xenophobic attacks since itsindependence. Such events disrupt business. Also, African markets arenot all free, some industries are still heavily regulated by thegovernments and some definitely not open for direct foreigninvestments. Market protection is a practice that is still commonamong many African economies.

Chinahas invested a lot of money and time in Africa. China surpassed U.Sas the largest trading partner with Africa half a decade ago.Africa-China trade in 2012 had reached 198.5 billion dollars comparedto Africa-U. S trade that had reached 99.8 billion dollars over thesame period(TendersInfo News 1).Apart from trade, China has in the past several years increased itscultural and diplomatic presence. Hence, yes indeed, the U.S isplaying catch-up in Africa with other countries especially China(Mayeni 50).


Mayeni,Jones. &quotU.S-Africa Trade: time for a rethink.&quot IBAGlobal InsightDec 2015: 48-53. Print.

Paulo,Drummond and Estelle Liu. &quotAfrica`s Rising Exposure to China:How Large Are Spillovers Through Trade?&quot InternationalAdvances in Economic Research21.3 (2015): 317-334. Print.

Sakendu,Jones Joseph. &quotThe Impact Of The U.S. and Africa PetroleumPartnership: Evidence Of Economic Growth In Gabon And Nigeria.&quotJournalof International Business and Law12 (2013): 139. Print.

StatesNews Service. U.STrade Mission to Sub-Saharan Africa Concludes in Kenya. 26June 2015. Print.

SyndiGateMedia Inc. TheNext Chapter in the U.S-Africa Trade Relationship.New York, 25 November 2015. Print.

TendersInfoNews. UnitedStates: Greenberg Traurig Joins Largest-Ever U.S Led Trade Mission inAfrica. NewYork, 19 September 2015. Print.