What Trump can learn from the Gulf about doing business in Africa

Khaleej Times

3 hours ago

Four years ago, DP World signed a $1 billion trade corridor agreement with the Ethiopian government. The plan: link the logistics giant's port in Berbera, Somaliland, with Ethiopia — a landlocked nation of 120 million people. It wasn't aid. It wasn't a photo op. It was business: strategic, long-term, unapologetically calculated.
During my seven years as Dubai Chamber's Chief Representative for Ethiopia covering the Horn of Africa region, I saw the impact of bold, early investment. The Gulf didn't wait for African markets to 'stabilise'. It moved quickly — into ports, infrastructure, agribusiness, and tech — while others hesitated.
Now, as the Trump White House prepares to host an Africa trade and investment summit, the US has a chance to reposition itself. But that means showing up with more than handshakes. It means taking Africa seriously — the way the Gulf, and China, already do.
Bet early bet big
In many sectors, the UAE has already outpaced China. In 2022 and 2023, the UAE committed $97 billion to new investments across Africa — spanning sectors such as renewable energy, ports, mining, real estate, telecoms, agriculture, and manufacturing, according to fDi Markets. These aren't vanity projects. They're strategic investments designed to serve both Gulf supply chains and African growth.
Saudi Arabia is moving too. In 2024, it pledged $41 billion in funding to low-income Sub-Saharan countries.
By contrast, the US has remained cautious and slow. But Trump's deal-making instincts could resonate in Africa — home to some of the world's fastest-growing economies and increasingly pragmatic leadership. The danger is doing the deals without a plan. Without a long-term strategy, it's just another missed opportunity.
From aid to trade
Africa doesn't need charity. It needs business — fair, forward-looking, and grounded in mutual benefit. The African Continental Free Trade Area (AfCFTA) is set to become a $3.4 trillion economic bloc, connecting over 50 countries and 1.3 billion people. It will be the largest single market in the world by number of participants.
The Gulf got the memo years ago. Sovereign wealth funds like ADQ and Mubadala are investing in logistics, food processing, and digital infrastructure — not as favors, but because the returns are real. China moved even earlier with its Belt and Road Initiative, though not without missteps.
If the US wants to compete, it needs to move beyond outdated aid frameworks — and focus on deals that still matter a decade from now.
Engage the diaspora and mean it
As the US representative for the Pan African Chamber of Commerce, I've watched too many diaspora professionals left out of investment conversations. That's a mistake.
The Gulf is doing the opposite. Investors are tapping diaspora talent — especially in fintech, logistics, and health tech — because they know how to navigate both worlds. Nigerian-Americans, for example, are among the most educated and economically active US immigrant communities. But their insight rarely informs US-Africa strategy.
A smarter approach would bring them in — not as symbolic advisers, but as partners driving capital and execution.
Don't sleep on agribusiness
Africa's food economy is expected to reach $1 trillion by 2030, according to the African Development Bank. The Gulf is already investing in agritech, cold storage, and processing — not just for African markets, but to secure its own food systems.
The US, despite its global leadership in agricultural tech, has been largely absent. That's a lost opportunity. Trump's team should prioritise cross-border agricultural ventures tied to AfCFTA — projects that generate jobs and deliver returns for US investors.
AGOA is no longer enough
China is now moving to offer African countries tariff-free access to its market — just as America's African Growth and Opportunity Act (AGOA) is set to expire in 2025.
AGOA has had an impact, but it hasn't shifted supply chains or brought in the long-term capital Africa needs. In some cases, it's even delayed the push toward more sustainable and competitive industries.
Africa now needs a new framework — one that supports value-added production, regional integration, and smarter financing to reduce risk for investors.
If Trump wants to create something meaningful in the US, he should look to the playbook of sovereign wealth funds like Abu Dhabi's ADQ or Saudi Arabia's PIF — both deeply invested in Africa, both thinking long term.
The bottom line
Over two decades working across US, and African markets, I've learned this: Africa doesn't need more handouts. It needs real partners.
The Gulf got that early. China moved even faster. The US still has a shot — but only if it brings capital, consistency, and a clear strategy to the table.
Doing business in Africa isn't without risk — as DP World experienced when Djibouti's government seized control of a container terminal it had built and operated, prompting international arbitration where the logistics giant was awarded $200 million in damages.
But the investment landscape is changing. More African leaders are increasingly thinking like investors. Rwanda secured a 60 per cent investment from Qatar Airways in its $1.3 billion international airport — and likely a stake in its state airline.
Etihad, meanwhile, has signed a codeshare deal with Ethiopian Airlines, Africa's largest carrier, connecting Abu Dhabi to most capitals on the continent. Both are smart plays — linking the Gulf to fast-growing economies and underserved aviation markets, with long-term returns for Doha and the UAE.
Trump talks a lot about winning. In Africa, the next frontier for global growth, winning starts with showing up — and staying the course.
The writer is a US-based global business strategist and Founder of Teba Connects.