New $60 million in co-investment grant funds for trade and investment hub activity to promote West African economies has been launched by the U.S. Agency for International Development (USAID). U.S. Ambassador to Nigeria, Mary Leonard, disclosed this at the official launch of the West African Trade and Hub on Tuesday in Abuja.
“For every dollar of public money spent in trade programmes in Africa, we estimate the hubs leverage of nine dollars investment.
“For over 360 million West Africans, the immense potential of their countries” economies have been hindered by roadblocks to investment.
“Forces that should be creating the future have been hobbled by the lack of established business networks and the challenges faced by entrepreneurs,” she said.
Here Is All You Need To Know
- According to Mary Leonard, the activity, which would last over the next five years, would help to attract private sector investment of an estimated $300 million.
- This would bring about improved business operations and capacity of private firms to tap into export markets, strengthen and create linkages between West African business, U.S. and international companies.
- The new trade and investment hub would work across the West African region to overcome these obstacles through a market-based approach that would catalyse economic growth and raise household incomes.
- Leonard said the hub would focus on West African nations including Senegal, Côte d’Ivoire, Ghana and Nigeria, while Nigeria would serve as the hub’s centre.
“These partnerships support Nigeria’s efforts to expand its economy through a focus on non-oil based sectors with high growth potential, notably the agriculture sector.
“Nigeria is uniquely positioned to rapidly transform its economy by expanding the agricultural sector and increasing both the productivity and the profit of small holder farmers,” she said.
USAID Trade Hubs work on the ground to reduce the cost and risk of doing business in Africa, leveling the playing field and cutting through red tape to make investment and trade freer and fairer for everyone. USAID is engaging with partners across sub-Saharan Africa to:
- Deepen regional economic integration
- Promote two-way trade with the U.S. under the African Growth and Opportunity Act (AGOA)
- Attract investment that drives commercial expansion within the region and to global markets
USAID’s Trade and Investment Hubs are located in East Africa, Southern Africa and West Africa. North Africa Trade Hub coming soon!
Since 2004, the Hubs have assisted 2,300 private enterprises and non-governmental organizations working on food security.
How Does This Affect African Startups?
The USAID has been active in the African startup ecosystem. In 2016, for instance, USAID’s Partnering to Accelerate Entrepreneurship (PACE) Initiative partnered with Dakar-based Teranga Capital and Investisseurs & Partenaires (I&P), a Paris-based impact investing firm to provide seed funding and investment-readiness services to 50 start-ups, with the objective of helping them access the capital and technical assistance they need. In 2017, the agency also announced the selection of 18 new grantees together receiving US$18.4 million to support their cutting-edge innovations, with 16 African startups among the grantees.
For more enquiries on USAID’s funding opportunities for startups, click here.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com