US firms plan to invest $ 14 billion in Africa

WASHINGTON: US businesses have committed to invest $ 14 billion in Africa to fuel growth, an official said today, as America seeks to deepen its commercial ties to counter Chinese and European dominance in the resource-rich continent.

The investments range from construction, clean energy, banking, information technology and others, a White House official said.

The announcement would be made by President Barack Obama in his address to the first-ever US-Africa Business Forum - part of the historic US-Africa Leaders Summit - later today.

The investments would deepen America's commercial ties with Africa, fuel economic growth which will support broader African prosperity. It would also create jobs in both the United States and Africa.

More than 90 American and a number of African companies are participating in the forum.

The US while remains the largest source of investment for the continent but has been largely limited in the oil and gas sector.

China and Europe have invested heavily in infrastructure, manufacturing and trade in the continent. China's trade with Africa stands more than double that of the US.

Obama is hosting leaders from more than 50 African countries for the three-day summit, which is the largest engagement by any American President with African leaders.

Obama will also participate in a discussion with CEOs and government leaders at the Business Forum along with Commerce Secretary Penny Pritzker. Former President Bill Clinton, too, will address the gathering.

The summit is being attended by a galaxy of African leaders including South African President Zacob Juma and Nigerian President Goodluck Jonathan, apart from over 300 government officials and business leaders from the US and Africa.

The forum provides an opportunity for 40 African head of states to engage directly with CEOs from both sides of the Atlantic, the official said.

The forum will intensify efforts to strengthen ties between the US and Africa and seek to create partnerships that will promote trade, accelerate job growth, and encourage investment, the official added.

The official said the forum will focus on US engagement in Africa in the areas of finance and capital investment; infrastructure; power and energy; agriculture; consumer goods; and information and communication technology.

The US wants to ensure that American businesses get a big part of the pie of the strong 350 million middle-class African consumers.