Trade Between Africa and the United States

Despite these predicaments, Africa has recorded a significant improvement over the past years. (Roy) Although not all countries have improved in terms of their economy, a good percentage of countries such as South Africa, Egypt and Morocco have recorded an impressive growth rate. There a number of reasons that contribute to this sudden success of some of the countries in Africa. Some of them include action by the government in fighting corruption and investment made on the continent by a number of already developed countries such as the United States (Roy). The presence of foreign influence in Africa began way long ago. There were ongoing projects that were promising in the colonies of Africa that up to date have continued to greatly improve the country’s economy.

(Austin) The use of a currency that was originally used by the colonialists in the countries has greatly boosted the economy of certain African countries for instance the French colonies such as the Ivory Coast. Compared to other superpowers, the United States has straggled behind when it comes to investing in Africa. Countries such as China are at the forefront in fully utilizing the resources that Africa has. However, in the year 2000 the United States came up with measures to expand the trade development in Africa. A good number of exports mainly consist of non-agricultural products. (Seyoum 515-533) Examples of countries that benefited from AGOA arrangement include Nigeria, South Africa, Angola among others. The main exports from the United States that are enjoyed by these countries include, machinery, oil products and vehicle parts.

There has been a great deal of good that has resulted from the trade between Africa and the US. First of all, job opportunities have greatly increased. Many can now afford to live a decent life with little or no struggles of securing a meal on daily basis. (Tadesse 920-941) Through AGOA many lives have been changed and the number of people that are able to sustain their families has improved. In all the countries that are normally enlisted for the AGOA project decent improvement is noted in the lives of the citizens. Certain industries have also recorded significant improvements in their productivity. The textile and the oil industry in African countries have undergone tremendous changes in terms of their growth.

Africa has become friendlier and more inviting to foreign investors over the years. African countries were often viewed as the worst countries for any person or corporation to make an investment in. (Easterly 1203-1250) It is true that in the past the continent was prone to a number of issues that did not exactly create a favorable environment for any person to invest in. (Holbrook 18-19) Political instability among different countries in Africa is among the leading cause as to why most companies were reluctant in setting foot in Africa. (Easterly 1203-1250) Apart from this, some of the African countries had ridiculous tax rates that would result in losses for any company or corporation that dared to invest. With the recent decision of the United States to first of all consider the growth of their own country, opportunists such as China and other European countries have greatly benefited from this decision.

China threatens to overpower the United States in terms of the influence it has over Africa. From the year 2000 the interest that the Chinese have shown in African countries has greatly increased. (Wiegert) China has increased the need for resource materials required in their various types of industries. The population in China has greatly increased and in order to prevent problems attributed to the lack of jobs in the country, the Chinese resulted in going into a partnership with Africa. (Wiegert) European countries also pose a great threat when it comes to the quest of being the dominant investors in the African continent. The investment of the United States in Africa through a number of companies has greatly had an impact on the continent.

(Futureofworking) There have been a number of advantages and disadvantages that have resulted from trade investments between Africa and the Us. For the US companies, they are able to enjoy a cheaper labor cost when it comes to African countries. (Futureofworking) Different countries have different rates of labor and for most third world countries such as Africa, the rates are relatively low. (Futureofworking) Cases of abuse of the local labor that Africa offers to the American companies have been observed. Some of these companies tend to prey on the vulnerability and desperation of the African population with regards to acquiring stable jobs. As a result, most employers will humiliate and overwork some of their employees due to their current situations. Some of the impacts that have been as a result of the increased number of corporations have resulted in a need for a response.

Some of the impacts both positive and negative have created an urgency in coming up with measures to accommodate the change. The recognition of Africa as a potential source of a number of resources rather than a backward country to be preyed on will help in getting rid of the problems Africa faces. Africa is a growing continent and with the right people to support its ambitions, the growth rate will increase over the years and the continent might end up being a first world country. Works Cited "7 Advantages and Disadvantages of Multinational Corporations | Futureofworking. Com".  Futureofworking. Accessed 1 Dec 2018. Easterly, William, and Ross Levine. "Africa's growth tragedy: policies and ethnic divisions. " The quarterly journal of Economics 112. Holbrook, Emily. Accessed 1 Dec 2018. Seyoum, Belay.