U.S. President Barack Obama said the fast growth of the African economy presents the U.S. with a great opportunity to increase its investments if the governments of Africa wipe out corruption and human rights violations.

At the U.S.-Africa Business Forum held in Washington yesterday, Obama emphasized on the need to focus on "the new Africa" and help the latter conquer its problems. He also committed US$33 billion worth of investments to Africa to promote U.S. products and increase Africa's power production, according to Bloomberg Businessweek.

Like Us on Facebook

Over 90 American firms also attended the forum, which was part of the three-day summit of African leaders. Obama's aim for the forum was to change their focus in Africa from providing aid to building investment and trade relations.

The Obama administration also urged African leaders to guard human rights and put an end to corruption to attract more investment from the U.S. He explained that good governance is important because investors want to run a business without engaging in bribery.

The U.S. wants to boost its commercial links to Africa to gain access to some of the fastest growing economies in the world.

According to a July 24 estimate by the International Monetary Fund, the growth of sub-Saharan Africa would hit 5.4 percent this year and 5.8 percent next year. In comparison, the U.S. has an estimated growth of 1.7 percent this year and 3 percent next year.

Meanwhile, China replaced the U.S. as the biggest trading partner of Africa with ties that shot past US$200 billion in 2013. Chinese state-run companies launched projects involving energy, infrastructure, transportation, and natural resources extraction in every African country every month.

The U.S. president said they are determined to become Africa's partner in success and not just to build their success from mineral extraction.  He said the U.S. investments would not only benefit Africa, but it would also create more jobs in the U.S.

Aside from private investments, the U.S. also plans to conduct 10 trade missions in different African countries, according to Commerce Secretary Penny Pritzker. As of now, sub-Saharan Africa makes up only 1.5 percent of exports and 1.7 percent of imports. Obama said he wants Africans to purchase more American products and Americans to buy more African goods.

During the White House dinner for the African leaders last night, Obama said U.S. ties with African nations were a very personal matter for him. He gained applause from his listeners when he described himself as the President of the U.S. at the same time "the son of a man from Africa."

TagsBarack Obama, Africa, U.S., U.S.-Africa Business Forum, Bloomberg Businessweek, International Monetary Fund, Penny Pritzker, sub-Saharan Africa