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Pricepally: Nigerian Startup Fights High Food Costs

Nigerian Startup Fights High Food Costs
Pricepally is a food co-op that connects Nigeria’s urban consumers directly with farmers and wholesalers, thus bolstering Nigeria’s urban centers against the impending global food crisis. Luther Lawoyin originally developed Pricepally in 2019 to make food more affordable and accessible for Nigerians. The digital startup uses modern technology to connect urban consumers directly with wholesalers and farmers, bypassing the country’s inefficient food supply infrastructure, which contributes to high food costs. Additionally, the Nigerian startup fights high food costs by enabling customers to pool their resources with other Pricepally users to invest in bulk purchases, providing further savings.

An Instant Hit

Lawoyin came up with the idea for Pricepally after monitoring his new family’s collective grocery expenses. After doing some research, he realized that Nigeria’s outdated supply chain infrastructure resulted in “a lack of integration” between consumers and producers. Intermediaries meant to connect rural producers with urban consumers lacked a sound data structure, meaning that farmers had no way of knowing current market demands. The Nigerian startup fights high food costs caused by an inefficient and inequitable market structure by providing a community-based platform that benefits both consumers and producers.

Following its launch in November 2019, Nigerians quickly recognized Pricepally as a valuable consumer platform amid high inflation. The digital startup’s popularity skyrocketed when the COVID-19 pandemic hit in early 2020, providing consumers with a safe method of obtaining essential resources. The Lagos-based startup met the needs of quarantined populations, quickly obtaining a government license to travel despite pandemic restrictions.

Pricepally began as a modest operation with only seven employees operating solely within the city of Lagos. Within months of its debut, Principally received funding from multiple investors, allowing it to rapidly expand operations to include the Nigerian capital of Abuja, serving more than 5,000 consumers per month.

Benefits Farmers and Consumers Alike

While Pricepally’s creator initially developed the platform with urban customers in mind, its operation has become an incredibly beneficial mechanism by which smallholder farmers can expand their market access. Chronic underinvestment and an outdated supply chain infrastructure have caused Nigeria’s smallholder farmers to become embroiled in poverty. A lack of basic facilities such as transportation routes, energy and water irrigation systems deter investors and leads to inefficiency and significant agricultural losses. In fact, Nigeria’s agricultural industry loses anywhere from 55% to 72% of Nigeria’s fresh produce before it even enters the domestic market.

Pricepally works to overcome these structural pitfalls by acting as a fair and reliable middleman, using its mobile and web-based services to connect farmers with consumers. This reduces the various intermediaries that once clogged the value chain, providing an equitable and transparent procurement process that empowers small-scale farmers to attain fair prices. In the spirit of transparency, Pricepally has begun featuring farmer’s profiles on its website, ensuring people can trust that they are buying high-quality produce. The Nigerian startup fights high food costs by streamlining the supply chain process in a manner that optimizes both transparency and equitability.

Future Goals

Pricepally recently started working with Prosper Africa, a U.S. government operation aimed at expanding bilateral trade and investment between African nations and the United States. This partnership works to secure U.S. investment and further expand Pricepally’s operational capacity.

In early 2022, Pricepally expanded its operations to the Nigerian coastal city of Port Harcourt, meaning the startup now serves consumers in Nigeria’s three largest urban centers. The most recent operational expansion increases Pricepally’s customer base while also connecting more markets and expanding overall supplies.

As investments continue to pour in, Pricepally is focused on improving its warehouse and processing facilities and investing in tech support so that the digital platform can serve more consumers each month. In the long-term, Lawoyin hopes to continue expanding operations to encompass other African nations struggling with similar supply chain and infrastructure issues.

As Pricepally continues to grow, it hopes to expand support for smallholder farmers within Nigeria as well as throughout the rest of Africa. Many of Nigeria’s farmers are simply trying to make ends meet, but Lawoyin hopes to transform farming to make it a viable career choice. He plans to do so by investing in programs aimed at addressing the issues that smallholder farmers face, including a lack of proper education, infrastructure and financing.

Within only three years, Pricepally has transformed the agricultural sector of Nigeria for the better. The Nigerian startup fights high food costs by leveraging shared economy principles that benefit consumers and producers alike, streamlining the procurement process and cutting out unnecessary intermediaries. As the startup continues to expand its operational capacity, it has the potential to transform the food supply chain of countless African nations, thus bolstering the world’s most vulnerable populations against the threat of food insecurity.

– Mollie Lund
Photo: Wikipedia Commons

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The State of Renewable Energy in South Africa

Renewable Energy in South Africa
The transition to renewable energy in South Africa has been an uphill battle considering the nation’s historically heavy reliance on coal. However, ongoing efforts by the nation to accelerate the transition toward renewable energy sources offer cause for optimism.

South Africa’s Dependence on Coal

South Africa’s energy sector is highly dependent on non-renewable energy sources, namely coal. In 2021, coal-fired power stations accounted for more than 84% of South Africa’s energy with clean energy sources constituting just 13.7%.

The environmental consequences of the nation’s overreliance on coal are notable: in 2019, South Africa stood as the 12th highest emitter of carbon dioxide in the world. Moreover, the economic consequences of a coal-dominated energy sector are devastating for many South Africans as the nation’s economy continues to recover from the pandemic.

Ongoing Challenges with Energy Grid Failures

In South Africa, the need to address energy poverty is pressing as about 3.4 million households in the nation lacked electricity in 2015, according to the South African government. A recent strike in June 2022 by workers at Eskom, South Africa’s state-owned energy company, has led to prolonged electricity blackouts, amplifying already existing problems with the outdated, deteriorating coal-fired power stations and mismanagement. For many South Africans, these blackouts can mean up to eight hours per day without electricity.

Since 2008, Eskom has relied on load-shedding, or rotating blackouts, to mitigate the impact of the nation’s insufficient energy supply on consumers. The economic consequences of the more frequent blackouts in 2022 are severe, exacerbating inequality in a nation where more than half of the population lived in poverty in 2014, according to the latest World Bank data.

Amid the energy blackouts, poor families living in informal settlements and townships face disproportionate impacts and demand for electricity is only increasing as South Africa rapidly urbanizes. These recent energy grid failures and their negative repercussions on poverty point to the need to diversify South Africa’s energy sector.

Notably, South Africa has made substantial progress in expanding electricity access in the past — between 1994 and 2012, household electrification increased from 36% to an unprecedented 87%. Renewable energy sources have the potential to continue to fill the nation’s current void, alleviating the energy poverty that millions still experience. In 2014, South Africa’s Department of Energy set a target to provide electricity to 3 million households through the grid and an additional 300,000 households using non-grid solar energy, projected to resolve 90% of backlogs. While South Africa has not yet achieved this goal, the government has begun to zero in on renewable energy as instrumental to its approach.

South Africa’s Governmental Response

On July 25, 2022, South African President Cyril Ramaphosa announced a series of interventions his government will take to address the energy crisis. Measures proposed include doubling the acquisition of renewable energy this year to more than 5,000 megawatts and providing incentives for households and businesses with rooftop solar panels to sell excess solar power to Eskom to reduce the need for load-shedding. These efforts to increase private sector energy generation are a necessary first step to facilitating this transition toward renewable energy in South Africa.

While these measures are an important start, South Africa will need to spend an estimated $250 billion over the next 30 years to finance shutting down coal-powered plants and transitioning to wind and solar power. Public resources lack the funds to provide sufficient backing for this effort. At the U.N. Climate Change Conference (COP26) in Glasgow, Scotland in November 2021, the U.S. along with European nations pledged only $8.5 billion to help South Africa transition away from coal. Thus, a significant contribution from the private sector will be critical.

According to Energy Minister Gwede Mantashe in December 2021, the South African government allocated $2.8 billion in contracts for 25 renewable energy projects to the private sector. These projects include wind farms and photovoltaic plants and should increase South Africa’s electricity capacity generation by nearly 5%.

Additionally, several companies are turning to solar energy, including South African Breweries (SAB), one of the nation’s largest companies. SAB aims to withdraw from Eskom’s grid, with the goal of sourcing 100% of its electricity from renewable energy by 2025. So far, these initiatives have shown promise: in 2021, SAB’s decision to transition to solar power resulted in more than 9,000 tons of carbon dioxide emissions reductions.

New Investments in Renewable Energy in South Africa

As of August 2022, USAID and Prosper Africa are overseeing a delegation of U.S. investors with more than $1 trillion in assets visiting South Africa to meet with fund managers, looking to invest in the nation’s transition to renewable energy.

This visit also coincides with the U.S. government’s attempts to deepen diplomatic ties with South Africa. On August 8, 2022, U.S. Secretary of State Antony Blinken met with South African Minister of International Relations Naledi Pandor to discuss the ongoing partnership between the two nations in trade and investment. Going forward, an active and continued diplomatic relationship between the two nations will be essential to achieve progress.

Looking Toward a Brighter Future

The possibility of large new investments in renewable energy in South Africa indicates a potential future of increased trade between the U.S. and South Africa. The transition away from coal-dominated energy will have transformative effects on the nation’s economic development, reducing poverty and deep-rooted inequality by creating a stronger, more reliable power grid and simultaneously reducing greenhouse gas emissions. Furthermore, the renewable energy industry represents an opportunity for tremendous job creation and increased economic opportunities.

– Oliver De Jonghe
Photo: Flickr

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New Horizons for Prosper Africa in 2021

prosper africaAfrican markets claim six out of 10 of the fastest-growing economies in the world. Africa’s middle-class is likely to have an annual household consumption of $2 trillion before 2030, and by 2050, the U.N. predicts that Africa will be home to one-quarter of the world’s population. Prosper Africa is an initiative that strengthens U.S. investment in Africa.

US-Africa Ties

Nations such as Germany and China are competing for investments in Africa in preparation for its burgeoning role in the global economy. In the past 20 years, the United States has also attempted a number of initiatives to expand U.S.-Africa economic ties. Unfortunately, results have been modest because the focus has been on Africa as a foreign aid recipient rather than a strong future trading partner. However, Prosper Africa’s latest initiative, set to launch in 2021, offers hope for a more engaged economic partnership between the U.S. and Africa.

Prosper Africa

Prosper Africa was launched in December 2018 to “vastly accelerate” U.S.-Africa trade and investment through the coordination of 17 U.S. agencies and departments. This mutually beneficial endeavor not only opens market opportunities and grows Africa’s economic sustainability, but also protects the United States’ interests in the competition against other nations’ involvement in Africa.

Far from being a foreign aid program, Prosper Africa’s official website acts as a one-stop-shop for U.S. and African businesses and investors. It offers toolkits for African businesses and investors seeking to export or invest in the United States and vice versa for U.S. businesses and investors seeking to become involved in Africa. According to the website, Prosper Africa represents “a new way of doing business” through its portfolio of support services. To date, the initiative has serviced more than 280 deals valued at more than $22 billion. In keeping with its expanding ambitions, Prosper Africa’s budget request for the 2021 fiscal year rose from FY2020’s $50 million to $75 million.

Prosper Africa: 2021 Plans

On Nov. 17, 2020, USAID announced a new Prosper Africa trade and investment program for 2021. Valued at $500 million over five years, its goal is to expand Prosper Africa’s services. The four project objectives are increased trade, increased investment, improved business environment and providing support for USAID and Prosper Africa. A strong emphasis will be placed on private investment. By 2026, the program is expected to raise billions of dollars and create hundreds of thousands of jobs in both Africa and the United States.

It is still uncertain exactly what this program will look like. The program’s blueprints from Feb. 2020 describe its implementation approach fairly loosely. It aims to be flexible in shaping private sector demands concerning the facilitation and brokering of deals. Most of its transactions will take place directly through the firms and actors involved.

In addition to Prosper Africa’s website toolkits, local offices and trade hubs will provide further customizable services to align with the needs of different sectors. Some examples of services include investor matchmaking, transaction facilitation, targeted reforms and export support. Resource allocation will be determined by impact potential. Opportunities within the private sector will comprise the majority of activities and projects may be funded by grants or subcontracts. Throughout its services, Prosper Africa encourages African states to support economic transparency and rule of law.

Prosper Africa’s Chances of Success

Because Prosper Africa is effectively a harmonization of 17 U.S. agencies and departments, success largely comes down to effective cooperation. However, the initiative’s goals vary in difficulty. For example, Prosper Africa has already made impressive strides in streamlining its toolkits and providing specific U.S. services to aid transactions. However, more long-range goals, such as procedural reform and transparency, sector expansion, the rule of law and improving business environments may prove more challenging to achieve. However, from an economic standpoint, it is certainly encouraging to see Prosper Africa approach U.S.-Africa relations as an equal, viable trade partnership rather than merely an aid recipient.

– Andria Pressel
Photo: Flickr

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Prosper Africa Helps Address Global Poverty

Prosper Africa helpsTwo direct consequences of the alleviation of poverty in a region are economic growth and bolstered purchasing power. For countries that invest in the development of a region, there is the potential that a two-way economic relationship begins once that region’s population gains the necessary financial strength to buy more expensive consumer goods. The relationship between the United States and Africa reflects this trend, especially with the start of the Prosper Africa initiative. Prosper Africa helps end global poverty, starting with Africa.

Africa’s Economic Potential

Despite having struggled with chronic poverty issues, Africa is home to six of the 10 fastest growing economies in the world. With one billion potential consumers, Africa has the potential to become an economic powerhouse that can provide any international trading partner with a valuable destination for exports and a significant source of imports.

Seeing this opportunity, in 2018, the United States federal government launched the Prosper Africa initiative, which developed out of increasing requests by U.S. companies to have easier access to African markets.

With the oversight of the U.S. State Department and International Trade Administration, Prosper Africa offers U.S. and African businesses a wide-ranging set of economic tools such as access to financing, loan guarantees, insurance and business strategy advising. The program facilitates deals between U.S. and African businesses to foster a stronger two-way economic relationship between the United States and Africa.

Prosper Africa Shows Promising Signs of Success

According to a 2019 analysis by the Congressional Research Service, Prosper Africa has been implemented across the continent. Each U.S. embassy in Africa has created a team designated to fostering ties between U.S. and African businesses. Furthermore, the U.S. Development Finance Corporation has also launched an online point of access to the array of business tools that the initiative offers.

These efforts have had noticeable results across the continent. Since June 2019, Prosper Africa has facilitated more than 280 deals valued at roughly $22 billion in more 30 African countries, including Cameroon, Namibia, Sudan and Madagascar. These deals have been struck in sectors as diverse as healthcare, aerospace and financial services.

Prosper Africa helps countries in that it has also led to government reforms aimed at fostering a more transparent and efficient business environments in 10 African countries. These reforms ensure that small and medium-sized African businesses can access financial services and that governments can effectively implement necessary regulatory frameworks to govern business environments.

Ending Global Poverty is Beneficial for All

Prosper Africa helps Africa and the entire world because the fight against global poverty does not solely consist of one-way foreign aid investments. These investments have the potential to be the beginning of a healthy economic relationship between a developed nation and emerging economies. Once the United States takes the lead on an issue, the rest of the world follows. From addressing drug trafficking to addressing terrorism, the United States has shaped the focus of the international community on countless issues. Through Prosper Africa, the United States has the potential to lead the way once more and uplift the lives of billions in Africa.

– John Andrikos
Photo: Flickr

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US Initiatives Help Fight Poverty in Africa

Poverty in Africa
Though the extreme levels of poverty in Africa are what typically define the continent, it has seen rapid economic growth as foreign nations increase investment in sub-Saharan Africa. The U.S. seeks to expand and increase trade with Africa by way of economic development initiatives. The following article describes two U.S. initiatives that create a mutually beneficial relationship between the U.S. and Africa. These initiatives seek to fight poverty in Africa and accomplish the humanitarian and economic goals of both parties involved.

African Growth and Opportunity Act (AGOA)

The African Growth and Opportunity Act increases sub-Saharan Africa’s accessibility to the U.S. market with duty-free access to many U.S. commodities, incentivizing investment in the goods of U.S. companies. Sub-Saharan African countries that wish to attain and keep eligibility for AGOA must be actively working towards improved rule of law, human rights and labor standards. This means that these countries must minimize the poverty levels their citizens face. The desire to be part of these trade acts motivates many countries to improve upon their standards of living.

Through the benefits of AGOA, Kenya has become a top exporter of apparel and macadamia nuts to the U.S. Ethiopia now generates about $20 million in footwear exports. South Africa, the largest AGOA beneficiary by value, has increased exports to the U.S. threefold since 2001, totaling $2.9 billion in 2015, and is developing a booming automobile industry. The agriculture industry in South Africa has also flourished under AGOA. The citrus sector alone has generated 85,000 new jobs in South Africa. Since the implementation of AGOA, sub-Saharan Africa beneficiary countries have increased non-energy exports to the U.S. in total by 57.8%. These economic developments create thousands of new jobs every year which helps eradicate hunger and poverty in Africa.

American companies are also benefiting from AGOA. An example is American Augers Inc., who is adding new jobs to its factory by growing its exports to Africa. By committing to laying the fiber optic infrastructure across all of Africa, American Augers Inc. was able to expand and grow its business. This is but one company’s example of how increasing U.S. export to Africa provides jobs anywhere from factory workers to farmers throughout America.

Prosper Africa

Prosper Africa is a recent extension of the African Growth and Opportunity Act. Due to U.S. foreign direct investment statistics in Africa recently declining, Prosper Africa is the Trump administration’s initiative to double two-way trade between the U.S. and Africa. Making this initiative unique from the original AGOA, Prosper Africa creates a one-stop-shop of U.S. government support services to aid U.S. and African businesses and investors. The initiative also promises to negotiate at least one new bilateral free trade agreement in Africa. This type of agreement can significantly improve the economic activity of a country. For example, the U.S. signed and enforced a free trade agreement with Morocco. Within a decade, U.S. imports from Morocco doubled and U.S. exports to Morocco roughly quadrupled.

Small U.S. businesses in particular are benefiting from the improved, mutually beneficial business climate the initiative creates. An example is the Environmental Chemical Company. While the firm attains economic success through commercial opportunities now made available in Africa, the people of Nairobi, Kenya and the surrounding area are also benefiting from the environmental restoration and social services that the U.S. company is providing. As more U.S. businesses invest, the statistics of poverty in Africa should only see improvement.

Overcoming Poverty in Africa

In a study by the Peterson Institute for International Economics from over a decade ago, estimates determined that removing trade barriers and opening up more countries to the global market could help fight poverty in Africa by bringing as many as 500 million people out of poverty and putting $200 billion a year into the economies of those developing nations. AGOA and Prosper Africa’s efforts show that the numbers that the Peterson Institute predicted are an attainable future goal. With increased employment and reliable income, people of sub-Saharan Africa can lift their families above the poverty line. As the fight against poverty in Africa causes poverty rates to decrease, the purchasing power of the region should increase, allowing access to untapped markets.

– Hanna Rowell
Photo: Wikimedia

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Africa’s Bright Future: 5 Facts About Prosper Africa

5 facts about Prosper AfricaThe Prosper Africa initiative is the Trump administration’s plan to move from an aid-focused to business-heavy strategy in Africa. In the words of USAID Administrator Mark Green, Prosper Africa targets Africans’ “innate desire to want to lead themselves” and construct “their own bright future.” The continent’s rapid growth provides ample opportunities for investment in African business and increased African employment. Exactly how the U.S. will take advantage of these opportunities is described by these five facts about Prosper Africa.

The Next Big Market

Africa is quickly urbanizing and consuming new products. The Brookings Institution found that urbanization accounted for 80 percent of African growth. African consumers and businesses spent $4 trillion in 2015 amid this explosion, a number expected to rise to $6.66 trillion by 2030.

Local businesses have become very profitable. There are 400 African firms that make at least $1 billion yearly. Successful companies secure themselves from the continent’s instability using a variety of methods. Dangote Industries, for example, forms relationships with host governments and creates its own electricity to run its facilities.

Supporting African Business

Despite these victories, Africa’s business environment still suffers from shortcomings in infrastructure and employment. Firms are difficult to run when 600 million people throughout the continent lack electricity. Youth unemployment compounds this issue. Ngozi Okonjo-Iweala, Nigeria’s Finance Minister, worries that African youth will turn to violent extremism if economic opportunities do not appear.

Prosper Africa will not only seek to remedy the abovementioned ailments but also compete with China’s trade dominance in the region. According to Business Insider, China’s Belt and Road initiative is already in full force. This initiative seeks to strengthen ties with Africa through trade and business development. President Xi Jinping announced in 2018 that $60 billion would go toward Africa’s development. Among the new projects funded by China are a $31.6 million East African trade headquarters and a $500 million cement factory in Zambia.

5 Facts About Prosper Africa

  1. The goal: Prosper Africa will herald more private investment in the continent and enhance bilateral trade relationships with the United States. The International Trade Administration says that it will increase innovation, transparency and start-up firms by reducing risk and providing access to American trade support services. Besides aiding African businesses, Prosper Africa hopes to expand the number of U.S. firms active on the continent. Africa contains over 1 billion consumers, and the U.S. has a purchasing power of $13 trillion to make the most of an improved relationship.
  2. How it works: Prosper Africa launches a whole-of-government effort that uses existing agencies to remove investment barriers. The Department of Commerce and USAID will work together to focus on the three problem areas including knowledge, expertise and regulations. Administrator Green stated that “Deal Facilitation Teams” at U.S. embassies will support interested African entrepreneurs in moving past gaps in business knowledge or expertise. Prosper Africa will also provide loans to new firms, so banks will allow credit access.
  3. USAID’s critical role: USAID will provide crucial support for the initiative. Their previous experience within many African nations makes them aware of measures needed to overcome poverty. In 2016, USAID helped Kenya eliminate a 30 percent government shareholding requirement in foreign firms. The U.S. Global Leadership Coalition reports that this created a more attractive market and raised American exports there by $60 million. Efosa Ojomo, co-author of “The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty,” says a transition to more permanent forms of aid like this will ensure lasting success.
  4. Increasing stability: Prosper Africa will increase stability on the continent, resulting in less need for American troops. In remarks before the Heritage Foundation, National Security Advisor John Bolton stated that Africans would take security into their own hands once economically empowered. The U.S. hopes more prosperous regional alliances, like the G5 Sahel Joint Force, will reduce violence and fight crime. There are currently 6,000 American troops in Africa on 100 missions. A Center for Strategic and International Studies report projected that U.S. military presence will drop by 10 percent in the next decade as a result of Prosper Africa.
  5. Increasing employment: According to the World Economic Forum, 15 to 20 million new workers will appear yearly by 2030. Africa only maximizes 55 percent of its human capital, however. Prosper Africa’s new business deals will work to solve this problem. The Trump administration announced a $20 billion investment by Texas natural gas company Anadarko in Mozambique on June 19, 2019. Anadarko has already trained 500 people in the country and currently has 1,000 Mozambicans in its classes. Its success resonates with African businesses, and 900 have already registered as suppliers for Anadarko.

These five facts about Prosper Africa show that the U.S. is taking a new approach to fighting poverty in Africa. Direct foreign investment will pave the way for prosperity going forward, and aid will have a training focus. Prosper Africa has potential not only to compete with China’s investments but also to generate healthier environments across the continent.

– Sean Galli
Photo: Pixabay

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The New US Africa Strategy

New U.S. Africa Strategy
The National Security Advisor for the Trump Administration, John Bolton, unveiled the new strategy for the U.S. aid and investment in Africa in a speech at the Heritage Foundation in Washington D.C. During the speech, Bolton outlined what the new U.S. Africa strategy will look like. It has three main focuses: advancing U.S. trade and commercial ties, countering Islamic terrorism and making sure that U.S. dollars are used efficiently and effectively. In the text below, the three main objectives of the new U.S. Africa Strategy are presented.

Advancing US Trade and Commercial Ties

Bolton stated in his speech that the United States plans on providing assistance to “key countries” and strategic objectives, with U.S. economic interests at the forefront of any aid given, unlike previous administrations, whose objectives in providing aid were focused on sustainable growth for African countries. In order to achieve this goal, the U.S. plans on enacting a new initiative called “Prosper Africa.” This initiative will focus on growing the African middle class, improving the business climate in the region, and supporting U.S. investments. No details on how the initiative will be implemented were given.

Countering Islamic Terrorism

The second objective of the new U.S. Africa strategy is to counter Islamic terrorism in Africa. Bolton highlighted three nations specifically: Mali, Libya and Sudan, where Al-Qaeda and ISIS affiliates have taken hold. Rather than giving money or aid directly to fighting the radical groups that have taken hold in these and other nations in Africa, the new plan will focus on strengthening the economies of African nations. This will allow African nations to be more self-sufficient and will make them better prepared to address a range of security threats, including terrorism.

The goal of the Trump administration in the new U.S. Africa strategy is to help African nations become more self-sufficient and better able to take ownership of the security of the region. This strategy is closely aligned with the Department of Defense’s plans to reduce troop presence in Africa by 10 percent.

Efficient and Effective

In his speech, Bolton stated that the new U.S. Africa strategy will revisit the foundational principles of the Marshall Plan. Enacted in 1948 after World War II, The Marshall Plan was an American initiative to give aid to and help rebuild Western Europe. It legitimized U.S. foreign aid programs and opened markets for American goods. One way in which the Trump administration plans on making sure U.S. dollars are being used effectively and sticking to the principles of the Marshall Plan is by bypassing the United Nations. Coincidentally, the government will also reevaluate its support of U.N. peacekeeping missions.

What this Means for Africa

The economic focus of the new strategy has the potential to improve conditions in Africa. Under the new U.S. Africa strategy, United States aid must be invested in health and education, transparent governance and follow the rule of law. If these tenets are followed, the strategy may help African nations to become more self-sufficient and therefore better equipped to handle their own security issues.

Unfortunately, Bolton provided few details as to how the government plans on making sure the tenets are upheld. More information and examples of how the U.S. Africa strategy is to be enacted are needed to know if the new Africa strategy will be beneficial to all African nations.

– Peter Zimmerman
Photo: Google