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Africa

USTR's Office of African Affairs develops and coordinates U.S. trade and investment policy for the 49 countries of sub-Saharan Africa. It leads the negotiation and implementation of U.S. trade and investment policies and objectives in the region. The Administration seeks both to expand markets for U.S. goods and services in sub-Saharan Africa and to facilitate efforts to bolster African economic development through increased global, regional, and bilateral trade. Sub-Saharan Africa presents many opportunities for U.S. businesses as an emerging market for American exports. In 2012, eight of the twenty fastest growing economies in the world were in sub-Saharan Africa according to the IMF.

The Africa Office oversees implementation of the African Growth and Opportunity Act (AGOA), a trade preference program enacted in 2000 that is at the center of U.S.-African engagement on trade and investment. By providing duty-free entry into the United States for almost all African products, AGOA has helped expand and diversify African exports to the United States, while at the same time fostering an improved business environment in many African countries through eligibility requirements. In August 2012, legislation was enacted to extend AGOA’s important third country fabric provision to 2015. Thirty-nine sub-Saharan African countries currently qualify for AGOA benefits. The Africa Office works closely with other U.S. agencies, such as USAID. This includes USAID funding to support the work of the three African Regional Trade Hubs located in Accra, Ghana; Gaborone, Botswana; and Nairobi, Kenya.

The Africa Office also leads U.S. Government interagency engagement with sub-Saharan African partners on trade and investment issues, including under our eleven trade and investment framework agreements (TIFAs) with sub-Saharan African countries and regional economic organizations. The United States also has a Trade, Investment, and Development Cooperative Agreement with the five countries of the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa, and Swaziland) and bilateral investment treaties (BITs) with six sub-Saharan African partners.  USTR’s Africa Office is also leading U.S. efforts to forge a new trade and investment partnership with the East African Community – where the two parties have agreed to explore a regional investment treaty, a trade facilitation agreement, and a commercial dialogue.

The Africa Office also will help to implement President Obama’s new initiative, Trade Africa which was announced during his trip Africa in June 2013. This new partnership between the United States and sub-Saharan Africa will seek to increase internal and regional trade within Africa and expand economic ties between Africa, the United States and other global markets. Trade Africa will initially focus on the member states of the East African Community (EAC) and aims to double intra-regional trade in the EAC and increase EAC exports to the United States by 40%. The United States also hopes to expand its collaboration with other regional economic communities in Africa, including in cooperation with other partner nations.

The Africa Office maintains an ongoing dialogue with sub-Saharan African countries on issues related to the WTO Doha negotiations. It also works closely with other Africa trade policy stakeholders, including Members of Congress, the African and American private sectors, and civil society in the United States and sub-Saharan Africa.

U.S.-Sub-Saharan Africa Trade Data

Total US two-way goods today with sub-Saharan Africa was $72.0 billion in 2012. Goods exports totaled $22.5 billion; Goods imports totaled $49.6 billion.

Exports

U.S. goods exports to sub-Saharan Africa in 2012 were $22.5 billion, up 6.3% ($1.3 billion) from 2011, and up 273% from 2002. U.S. goods exports to sub-Saharan Africa accounted for 1.5% of total U.S. goods exports in 2012.

Roughly 34% of U.S. exports to sub-Saharan Africa went to South Africa in 2012. The top U.S. export markets in sub-Saharan Africa for 2012 were: South Africa ($7.6 billion), Nigeria ($5.0 billion), Angola ($1.5 billion), Ghana ($1.3 billion), and Ethiopia ($1.3 billion).

The top export categories (2-digit HS) in 2012 were: Machinery ($4.4 billion), Vehicles ($3.9 billion), Aircraft ($2.1 billion), Mineral Fuel (oil) ($1.9 billion), and Cereals (wheat and rice) ($1.4 billion).

U.S. exports of agricultural products to sub-Saharan Africa totaled $2.6 billion in 2012. Leading categories include: wheat ($1.2 billion), poultry meat ($484 million), rice ($147 million), vegetable oils (excluding soybean oil) ($88 million), and pulses ($81 million).

Imports

U.S. goods imports from sub-Saharan Africa totaled $49.6 billion in 2012, a 33.2% decrease ($24.7 billion) from 2012, but up 177% from 2002. U.S. imports from sub-Saharan Africa accounted for 2.2% of total goods imports in 2012.

Approximately 38% of U.S. imports from sub-Saharan Africa were from Nigeria and 20% from Angola. The top U.S. import suppliers from sub-Saharan Africa for 2012 were: Nigeria ($19.0 billion), Angola ($9.8 billion), South Africa ($8.7 billion), Chad ($2.7 billion), and Gabon ($1.9 billion).

The five largest import categories in 2012 were: Mineral Fuel (crude) ($36.7 billion), Precious Stones (platinum and diamonds) ($3.4 billion), Vehicles ($2.0 billion), Cocoa ($1.0 billion), and Ores, Slag, Ash (titanium, chromium, and uranium) ($937 million).

U.S. imports of agricultural products from sub-Saharan Africa totaled $2.1 billion in 2012. Leading categories include: cocoa beans ($756 million), Rubber and Allied Products ($317 million), cocoa paste and cocoa butter ($243 million), and coffee (unroasted) ($224 million).

AGOA

AGOA imports for 2012 totaled $34.9 billion, more than four times the amount in 2001. Petroleum products continued to account for the largest portion of AGOA imports with an 86 percent share of overall AGOA imports. AGOA non-oil imports were $4.8 billion in 2012, more than triple the amount in 2001. Several non-oil sectors experienced sizable increases during this period, including apparel, footwear, vehicles and parts, and fruits and nuts. South Africa is the largest non-oil AGOA beneficiary.

Top AGOA suppliers were Nigeria ($19.1 billion; mainly crude oil), Angola ($9.6 billion; mainly crude oil), South Africa, ($8.6 billion; mainly vehicles and parts, iron/steel, fruits and nuts), Chad ($2.6 billion; mainly crude oil), and Gabon ($1.7 billion; mainly crude oil). Other leading AGOA beneficiaries included the Republic of Congo, Lesotho, Kenya, Mauritius, and Cameroon.

Leading AGOA import categories were Crude Oil ($30.1 billion; down 38%), Transportation Equipment ($2.1 billion), Minerals and Metals ($865.5 million; down 15%), Textile and Apparel ($815.3 million; down 5%), Agricultural Products ($520.8 million, up 28%), and Chemicals and Related Products ($428.8 million, down 9%).

Ambassador Froman’s Africa Engagement

Since his confirmation in July 2013, Ambassador Michael Froman has made trade and investment with Africa a high priority of the Office of the U.S. Trade Representative. Ambassador Froman has had the opportunity to travel to several African countries, including South Africa and Tanzania during President Obama’s recent trip. Ambassador Froman has worked with African public and private sector leaders to further strengthen US-Africa trade relations. In August 2013, Ambassador Froman led the U.S. delegation in Ethiopia for the 2013 AGOA Forum. While at the AGOA Forum, he participated in meetings with both U.S. and African ministers. He held consultation reviews on the future of AGOA after its expiration.

Ambassador Froman visits South Africa and Tanzania

Ambassador Froman recently joined President Obama for the final two of a three-nation trip to Senegal, South Africa and Tanzania. In his first official travel as USTR, Ambassador Froman’s engagement with officials and business leaders in Sub-Saharan Africa highlights the Administration's commitment to enhance U.S. economic engagement with the continent to the benefit of both American and African businesses, exporters and workers. During this trip, Ambassador Froman emphasized the need for US private sector investment in Africa. As he stated, “If we are to achieve sustainable development, it is our view that investment must be the driver. In Africa, we want to seed the next round of BRICS.” 


Press Release:
 
Ambassador Michael Froman Concludes First Visit to Africa as United States Trade Representative

USTR Froman Looks to Next Steps in Review, Renewal of African Growth and Opportunity Act

USTR Froman Announces New Efforts to Strengthen Ties with the East African Community Under President Obama’s Trade Africa Initiative                      

                     
Speeches:
Remarks by United States Trade Representative Michael Froman to the U.S. Global Leadership Coalition                 

USTR Mike Froman's Address at the AGOA Forum 2013  

2013 AGOA Forum Updates

Increasing trade between the United States and Africa was the focus of the African Growth and Opportunity Act (AGOA) Forum in Addis Ababa, Ethiopia on August 9 - 13. The Forum highlighted the progress achieved through AGOA since it was signed into law in 2000, and initiated a review process on potential AGOA renewal was launched.