The Quad-City Advantage in Africa

January 22, 2021

This article was originally published in the Quad-City Times on December 20, 2020.

It seems overwhelming at first. While Africa’s agricultural sector offers significant opportunities to Quad-City businesses, many U.S. companies initially conclude that maybe it is more trouble than it is worth. Which of the continent’s 54 countries offer the best market potential? What is the state of the regulatory environment? Who are trustworthy local partners? If you don’t know where to start, why even try?

Last month, I convened several Illinois- and Iowa-based businesses, African agricultural companies, and U.S. government representatives from the Prosper Africa initiative to talk about the prospects for greater trade and investment between the United States and African countries. From the discussion, two points were crystal clear: the Quad Cities have real opportunities in Africa, and the U.S. government is ready to help.

The African agricultural market is growing by leaps and bounds. It accounts for over 20 percent of the region’s GDP and employs over 60 percent of the African workforce. With the world’s fastest growing population, food production is projected to increase by 60 percent by 2050. The Quad Cities, with their reputation for agriculture innovation, are well-positioned to capitalize on the region’s investment requirements, such as fertilizer and hybrid seeds, as well as its infrastructure needs, including irrigation, storage, transportation, and electricity.

The Quad-City companies at our event expressed considerable interest in these opportunities. It was mainly a question of how, not why. As one firm indicated, if market intelligence says Africa is ripe for investment, it would strongly consider expanding into the continent. Fortunately, that’s where Prosper Africa, a U.S. government initiative to substantially increase two-way trade and investment between the United States and Africa, come into play. It is a one-stop shop, offering a suite of U.S. government services to connect U.S. and African businesses with new buyers, suppliers, and investment opportunities.

Prosper Africa chief operating officer Victoria Whitney and her colleagues dispelled the myth that conducting business in Africa has to be difficult. With deal teams in each U.S. embassy, matchmaking services, background check services, and country commercial guides, it is possible to tap into a knowledgeable and responsive network and support system. At the minimum, it is possible to address a company’s concerns and apprehension about the African investment and trade opportunities. And, if there is a bump in the road, the U.S. government is poised to jump into action and leverage its contacts to move a transaction forward.

At the end of our event, for many of the Quad-City companies, the African market seemed a little less unfamiliar and the road to a new business opportunity a little more concrete. Of course, one meeting isn’t enough. A company based in the Quad Cities should do its homework, spend time on the ground, and liaise with the U.S. government to make the right contacts. But with Prosper Africa, it is easy to start.

Judd Devermont is the director of the Africa Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C.

Commentary is produced by the Center for Strategic and International Studies (CSIS), a private, tax-exempt institution focusing on international public policy issues. Its research is nonpartisan and nonproprietary. CSIS does not take specific policy positions. Accordingly, all views, positions, and conclusions expressed in this publication should be understood to be solely those of the author(s).

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