President Barack Obama has announced that his country is ready to invest as much as $17 billion in Africa to boost growth and economic development on the African continent.

The announcement came at the first ever US-Africa Leaders’ Summit in Washington DC on Tuesday in which 50 heads of African State are currently attending.

The deal would allow US companies to invest in energy and infrastructure in Africa. The initial capital for the investment would be a $5bn partnership between well established private-equity firms in Africa for energy infrastructure projects, especially, in sub-Saharan Africa.

This will be followed by an additional $12bn in pledges towards an effort to develop energy supplies which would be through a collaboration of private investment and African governments’ involvement.

Mr. Obama admitted that the US stand to benefit more from the deal and urged all American companies to take the opportunity to invest in African.

“Up to tens of thousands of American jobs are supported every time we expand trade with Africa, as critical as all these investments are, the key to unlocking the next era of African growth is not going to be here in the US, it is going to be in Africa”.

“The United States is determined to be a partner in Africa’s success, a good partner, an equal partner, and a partner for the long term, capital is one thing, development programs and projects are one thing, but rule of law, regulatory reforms, good governance, those things matter even more”, President Obama said.

This new investment by the US has pushed the US’ overall investment in the African Continent to some $33bn.

But some economic analysts in Africa have downplayed the significance of the summit, saying that the US is only looking for a way to march up the competition of China on the African Continent. China has recently increased its presence on the African Continent.

Issaka Adams / NationalTurk Africa News

Writer’s Email Address: Adamsissaka@googlemail.com