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Yahoo
21-05-2025
- Business
- Yahoo
Analysis: The challenge with Trump's ‘trade, not aid' African strategy
Last week US Ambassador Troy Fitrell, the State Department's top Africa official, unveiled what appears to be the Trump administration's Africa policy — a 'Commercial Diplomacy' strategy that emphasizes 'trade, not aid.' The strategy posits that lagging trade stems from the US historically prioritizing aid over commerce. While some African leaders may welcome this pivot — seeing Africa as a commercial partner, not a recipient of handouts — the strategy faces serious challenges in both conception and execution. Fitrell proposed six key actions with 'commercial diplomacy' as its core focus. US ambassadors in Africa will now be evaluated on how effectively they advocate for American businesses and close deals. There is one drawback, however: This plan offers nothing for the development of deal flow. The Trump administration has suspended the US Trade and Development Agency, which once de-risked early stage investments. The new strategy purports to work with African governments to promote market reforms. Governments across the continent will embrace any partnerships to improve the investment climate. They will, however, do well to push for a partnership that is mutually beneficial. Fitrell's speech, as delivered, is skewed toward facilitating American business, not fostering mutual prosperity or supporting African enterprises. In a year where the African Growth and Opportunity Act (AGOA) is due to expire, it is not mentioned once. By contrast, the term 'export' appears four times in the speech — always referring to US exports to Africa — suggesting a largely one-way trade vision. For a continent starved for infrastructure, governments will embrace the Trump administration's stated intent to focus on such projects. They'll also be keen on an increase in so-called commercial diplomacy trips. However, with US government agencies like the Millennium Challenge Corporation now effectively defunct and American construction firms largely absent from the continent, it's unclear who will deliver the proposed infrastructure and how the administration will ensure that these trips are not simply symbolic. The plan proposes linking US exporters and capital to Africa and reforms to US trade promotion and financing tools. If realized, these reforms could address the deal flow. Overall, the Trump administration's new plans for Africa face a dilemma, as they conflict with simultaneous efforts to shrink the federal government. In Washington, where 'personnel is policy,' this creates a challenge for execution. Many African leaders will recognize similarities between this proposed approach and China's model of economic engagement. The US is converging with China on how to engage Africa, but without the tools that underpin China's success, such as state-owned enterprises from construction and railway firms to banks and insurance companies. The new approach assumes that the US private sector can compete without equivalent support, which is highly optimistic. The US no longer offers unique capital access, and it has unilaterally diminished its soft power tools. The strategy currently makes no clear offer to African countries that are also being courted by Asia, Europe, and the Gulf. There's no mention of increased access to US markets, no new financing mechanisms, and no talk of value addition to the much desired 'critical minerals.' African governments must now offer a counterproposal that centers around a clear value proposition for this partnership.
Yahoo
26-04-2025
- Business
- Yahoo
Trump signs executive order to expedite seabed mineral exploration
US President Donald Trump has signed an Executive Order to expedite the exploration and development of seabed minerals. The order mandates rapid development of US capabilities in the exploration, characterisation, collection and processing of critical deep seabed minerals to bolster domestic supply chains and reduce dependency on foreign resources. It aims to establish the US as a global leader in seabed mineral exploration and development within and beyond national jurisdiction. The directive also seeks to strengthen partnerships with allies and industry to counter China's influence in the seabed mineral resource space. The order stated: 'The US faces unprecedented economic and national security challenges in securing reliable supplies of critical minerals independent of foreign adversary control. Vast offshore seabed areas hold critical minerals and energy resources. 'These resources are key to strengthening our economy, securing our energy future and reducing dependence on foreign suppliers for critical minerals.' The order instructs the secretary of commerce to expedite the process for reviewing and issuing exploration and commercial recovery permits under the Deep Seabed Hard Mineral Resources Act within 60 days of the order execution. The order also directs the secretary of commerce, along with the secretary of the interior and the secretary of energy, to provide a report identifying private sector interest and opportunities for seabed mineral exploration, mining and monitoring in the US Outer Continental Shelf. Additionally, it calls for the development of a plan to map priority areas of the seabed to accelerate data collection. The secretaries of commerce, state, interior and energy are tasked with engaging partners and allies for seabed mineral exploration and assessing the feasibility of an international seabed benefit-sharing mechanism. Moreover, the secretaries of defense and energy are to provide a report addressing the feasibility of using the National Defense Stockpile for nodule-derived minerals. The US International Development Finance Corporation, the Export-Import Bank of the US and the US Trade and Development Agency are directed to identify tools to support domestic and international seabed mineral resource exploration and environmental monitoring. Proponents of deep-sea mining noted that it could reduce the necessity for extensive land-based mining operations, which frequently face opposition from local communities, Reuters reported. However, environmental organisations are urging a complete ban on all activities, cautioning that industrial operations on the ocean floor may lead to irreversible loss of biodiversity. Earlier this month, Trump signed executive orders to increase US coal production, defying international efforts to reduce carbon emissions. "Trump signs executive order to expedite seabed mineral exploration" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
25-04-2025
- Business
- Yahoo
Trump signs executive order to expedite seabed mineral exploration
US President Donald Trump has signed an Executive Order to expedite the exploration and development of seabed minerals. The order mandates rapid development of US capabilities in the exploration, characterisation, collection and processing of critical deep seabed minerals to bolster domestic supply chains and reduce dependency on foreign resources. It aims to establish the US as a global leader in seabed mineral exploration and development within and beyond national jurisdiction. The directive also seeks to strengthen partnerships with allies and industry to counter China's influence in the seabed mineral resource space. The order stated: 'The US faces unprecedented economic and national security challenges in securing reliable supplies of critical minerals independent of foreign adversary control. Vast offshore seabed areas hold critical minerals and energy resources. 'These resources are key to strengthening our economy, securing our energy future and reducing dependence on foreign suppliers for critical minerals.' The order instructs the secretary of commerce to expedite the process for reviewing and issuing exploration and commercial recovery permits under the Deep Seabed Hard Mineral Resources Act within 60 days of the order execution. The order also directs the secretary of commerce, along with the secretary of the interior and the secretary of energy, to provide a report identifying private sector interest and opportunities for seabed mineral exploration, mining and monitoring in the US Outer Continental Shelf. Additionally, it calls for the development of a plan to map priority areas of the seabed to accelerate data collection. The secretaries of commerce, state, interior and energy are tasked with engaging partners and allies for seabed mineral exploration and assessing the feasibility of an international seabed benefit-sharing mechanism. Moreover, the secretaries of defense and energy are to provide a report addressing the feasibility of using the National Defense Stockpile for nodule-derived minerals. The US International Development Finance Corporation, the Export-Import Bank of the US and the US Trade and Development Agency are directed to identify tools to support domestic and international seabed mineral resource exploration and environmental monitoring. Proponents of deep-sea mining noted that it could reduce the necessity for extensive land-based mining operations, which frequently face opposition from local communities, Reuters reported. However, environmental organisations are urging a complete ban on all activities, cautioning that industrial operations on the ocean floor may lead to irreversible loss of biodiversity. Earlier this month, Trump signed executive orders to increase US coal production, defying international efforts to reduce carbon emissions. "Trump signs executive order to expedite seabed mineral exploration" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
