Trade, not aid: Trump’s new Africa strategy

The United States is shifting its approach to Africa, moving away from development aid and toward a strategy centred on trade and investment.

This was unveiled by Troy Fitrell, the State Department’s Senior Bureau Official for African Affairs, in testimony before the Senate Subcommittee on Africa and Global Health Policy on 4 June.

“We are fundamentally shifting our approach to Africa from one rooted primarily in development assistance to a strategy that prioritises robust commercial engagement, recognising and treating African nations as equal partners in trade and investment,” said Fitrell.

Fitrell said that this new strategy is built around six targeted actions “aimed at reestablishing the U.S. as Africa’s preferred economic partner” over China.

He said that this includes:

• Prioritising “commercial diplomacy”
• Promoting private-sector reforms
• Executing high-quality infrastructure projects
• Leading commercial diplomacy missions
• Connecting US companies with African opportunities
• Reforming US trade tools to better compete with China’s state-backed model

“Together, these efforts reflect a bold, action-oriented vision to increase US exports and joint ventures with African partners, close trade imbalances, and foster lasting prosperity,” Fitrell said.

Africa’s economic potential represents significant opportunities, both strategically and commercially.

“The economies of sub-Saharan Africa have long been growing at 6% per year and are expected to add $800 billion in GDP by 2030.”

Fitrell detailed a sharp increase in African demand for imports, rising from $49 billion in 2000 to $435 billion in 2024, and pointed to the region’s burgeoning digital economy.

“The region’s digital economy, valued at $180 billion in 2024, has quadrupled since 2016 and is projected to exceed $700 billion by 2050.”

United States eyeing China in Africa and aid cuts

In 2000, the United States was the second-largest exporter to sub-Saharan Africa, with strong demand for its products in this region.

However, due to Beijing’s assertive, government-backed strategies, China exported $137 billion to sub-Saharan Africa in 2024, seven times that of the United States at $19 billion.

He said that this is because of past shortcomings in commercial engagement. Still, he insisted that this has already begun to change under the Trump Administration.

“We are now focusing on investment-led and trade-driven growth, which is more sustainable,” he said.

Fitrell told lawmakers that there needs to be “urgency” for economic engagement in Africa to counter China’s expanding influence.

The United States is the world’s largest humanitarian aid donor, accounting for at least 38% of all contributions recorded by the United Nations. It disbursed $61 billion in foreign assistance last year, just over half of it via USAID.

However, the US President Donald Trump has taken a different approach, slashing over 80% of its registered programmes.

According to the latest available data, in 2023, the United States provided approximately $500 million in aid to South Africa, primarily for healthcare.

Much of that funding has since been withdrawn, though the exact amount remains unclear.

South Africa and the Trump administration

In his second term, Trump has taken a hardline, transactional approach to Africa, with South Africa facing some of the most severe measures.

In early 2025, he imposed a 10% tariff on all imports, later raising duties on South African goods to 31%, targeting steel, aluminium, vehicles, and agriculture, effectively ending AGOA trade benefits.

However, the temporary 90-day pause on reciprocal tariffs and exemptions for certain minerals slightly soften the immediate impact, though the long-term outlook for AGOA and U.S.-South Africa trade remains uncertain.

The Trump administration has suspended around $500 million in annual US aid to South Africa, mainly PEPFAR funding, disrupting HIV/AIDS programs.

Amid the diplomatic fallout, President Cyril Ramaphosa visited Washington to “reset and revitalise” relations.

During the trip, South Africa submitted a revised trade and investment framework to the US, focusing on expanding bilateral relations and securing AGOA reauthorisation.

Trade Minister Parks Tau said the updated proposal, shaped through consultations with stakeholders like SARS, received constructive feedback from the US Trade Representative.

Key areas include digital trade, tariffs, and critical minerals, of which South Africa supplies 12 to the US, nine of which are exclusive. Tau emphasised AGOA’s importance for both nations.

Ramaphosa emphasised the goal of “shared prosperity,” and said that he and Trump agreed to reopen trade talks, boost investment, and explore tech cooperation.

At a June 4 Senate hearing, some U.S. lawmakers voiced concern over the strained ties, especially given South Africa’s role in supplying critical minerals, such as platinum.

Fitrell noted that South African leaders “highlighted areas for cooperation,” and affirmed US support for expanding bilateral trade.