The central challenge facing African economies is to reduce poverty through higher levels of economic growth. Long term, broad-based economic growth is essential for Africa to increase incomes and reach its potential to become a significant trade and investment partner in the world economy. Sub-Saharan Africa experienced strong economic growth rates in the latter half of the 1990s and in the past five years, 19 Africa countries grew at two percent per capita or more. But these growth rates must be sustained and accelerated in order to have a significant impact on poverty and increase living standards. Furthermore, the increase in HIV/AIDS infection rates is taking its toll on Africa’s workforce and has become a serious threat to Africa’s economic well being.
To build on the progress made by many African economies, USAID supports efforts to broaden and strengthen economic reforms to increase economic growth. USAID seeks to strengthen the policy environment for effective economic reform by working with African policy analysts and policymakers to increase the knowledge needed to manage open, free market economies. USAID also supports research networks to strengthen African countries' capacity to improve and implement economic policies.
USAID concentrates its economic growth efforts in Africa on expanding openness to trade and investment, improving the enabling environment for the private sector, increasing agricultural productivity and trade, strengthening African capacity to manage economic and natural resources, and increasing rural incomes. USAID magnifies its impact by collaborating with other U.S government agencies, donors, and development partners.
A major component of the Africa Bureau’s economic growth program is the Trade for African Development and Enterprise (TRADE) initiative, which was created to help African economies increase import and export opportunities and become better integrated into world markets. To support the TRADE initiative, USAID has opened three regional Hubs for Global Competitiveness—located in Botswana, Kenya, and Ghana—to provide technical assistance to African governments, the private sector, and regional organizations.
TRADE Hub programs are designed to reinforce regional and bilateral efforts to strengthen Africa’s economic competitiveness and assist the nations of the area to take greater advantage of the trade opportunities provided by the African Growth and Opportunity Act (AGOA) and other global trade initiatives. Hub program themes include trade capacity building, improvements to the private sector enabling environment, better market access and opportunities, trade facilitation, lower business costs, food safety programs, and export promotion of higher quality, profitable African agricultural produce. The
Hubs will also provide support to the Initiative to End Hunger in Africa (IEHA) .
