African Nations Poised to Benefit from President Trump's Second-Term Policies

In Summary

• President Donald Trump's re-election and inauguration has significant implications for the U.S.-Africa relations. His administration's policies are expected to influence various African nations differently, depending on their economic structures, strategic importance, and existing bilateral agreements.
  
• In 2024, South Africa led AGOA beneficiaries with $55.9 billion in non-crude exports, followed by Nigeria at $11.2 billion and Kenya at $7.3 billion. These figures underscore AGOA’s power to bolster African exports and strengthen trade ties. Meanwhile, Trump’s “Prosper Africa” initiative promises to expand two-way trade and investment, offering unprecedented opportunities for African nations with strong industrial and economic frameworks.
• While President Trump's policies present potential opportunities for certain African nations, the actual outcomes will depend on how these countries navigate the evolving geopolitical landscape and leverage their strategic advantages.

Deep Dive!!

As President Donald Trump begins his second term on January 20, 2025, the dynamics of US-Africa relations are expected to change significantly. With the African Growth and Opportunity Act (AGOA) still in effect, eligible sub-Saharan nations have duty-free access to the US market for over 1,800 products, which is an opportunity too valuable to miss.

Trump's transactional approach to foreign policy, however, has the potential to change the way aid is distributed and diplomatic relations throughout the continent, which would raise concerns about which nations stand to benefit the most. As global economic trends evolve, 2025 could be a turning point for Africa's economic partnerships with the U.S.

This article takes a fact-based look at the African nations poised to seize these opportunities, analyzing Trump’s policies and the economic trends driving the U.S.-Africa engagement. 

10. Zimbabwe

In 2024, Zimbabwe’s GDP grew by 3.5%, its highest in years, thanks to improved agricultural production and a surge in mineral exports, especially platinum and gold. The U.S. government hinted at reassessing its long-standing sanctions against Zimbabwe, which could open doors for American investors and trade incentives.

If Trump’s second term prioritizes economic partnerships over political sanctions, Zimbabwe’s natural resources could position the country as a significant player in U.S. mineral imports. The removal of trade barriers and potential investment in infrastructure projects would further amplify Zimbabwe’s economic potential.

9. Ethiopia

Ethiopia maintained a strong economic growth rate of 6.1% in 2024, primarily driven by its booming manufacturing sector and expansive infrastructure projects, such as the $5 billion Addis Ababa-Djibouti railway.

The U.S. has historically supported Ethiopia’s development through the "Prosper Africa" initiative. If Trump’s administration continues this trend, Ethiopia could benefit from increased American investments in textiles, construction, and energy. These developments would bolster Ethiopia’s economic trajectory in 2025 and beyond.

8. Egypt

Egypt remains a cornerstone of U.S. foreign policy in the Middle East and North Africa, receiving $1.3 billion annually in military aid. In 2024, trade between Egypt and the U.S. exceeded $9 billion, with significant contributions from textiles, chemicals, and agricultural products.

Under Trump’s leadership, Egypt’s strategic importance as a military and trade partner could grow. Expanded trade agreements or increased foreign direct investment (FDI) would solidify Egypt’s role as a gateway for U.S. interests in the region.

7. Zambia

Zambia’s copper production surged to 860,000 metric tons in 2024, aligning with the growing demand for electric vehicle batteries in the U.S. American companies have expressed interest in Zambia’s mineral resources, as securing a stable supply chain for critical materials is a top priority.

Infrastructure projects like the Lobito Corridor, supported by the U.S., also enhance Zambia’s trade connectivity. If Trump’s administration prioritizes resource partnerships, Zambia could see a significant increase in investment, particularly in mining and renewable energy sectors.

6. Democratic Republic of Congo (DRC)

Holding 70% of the world’s cobalt reserves, the DRC is critical to the U.S. supply chain for electric vehicles and renewable technologies. In 2024, the DRC produced over 100,000 metric tons of cobalt, with efforts to improve mining transparency gaining global recognition.

Trump’s administration could further engage with the DRC through ethical sourcing partnerships and investment in mining infrastructure. This collaboration would benefit both the U.S. and the DRC, ensuring sustainable growth and economic stability.

5. Angola

Angola exported 1.2 million barrels of oil daily in 2024, making it a vital energy partner for the U.S. With Trump’s focus on energy security, Angola’s oil exports are likely to remain a priority for American policymakers.

In addition to oil, Angola’s strategic location and infrastructure projects, such as the Lobito Corridor, position it as a hub for trade and logistics in Southern Africa. Increased investment in these areas could further integrate Angola into global supply chains.

4. Morocco

Morocco’s trade relationship with the U.S. reached new heights in 2024, with exports under the African Growth and Opportunity Act (AGOA) valued at $3.1 billion. The country’s designation as a major non-NATO ally also enhances its economic and military ties with the U.S.

In Trump’s second term, Morocco could leverage its strategic position as a gateway to North Africa and Europe. Strengthening bilateral agreements and increased FDI in automotive and renewable energy sectors would drive its economic growth in 2025.

3. Kenya

Kenya’s economic ties with the U.S. have deepened, with non-crude exports reaching $7.3 billion in 2024. The apparel and coffee sectors were major contributors, benefiting from AGOA provisions.

Ongoing negotiations for a Kenya-U.S. free trade agreement could be finalized in 2025, making Kenya a key trade partner in East Africa. This agreement would likely boost Kenya’s manufacturing and agricultural exports, creating job opportunities and enhancing economic resilience.

2. Nigeria

Nigeria’s economy continued to diversify in 2024, with non-crude exports to the U.S. valued at $11.2 billion. Key sectors included agriculture, tech, and processed goods, reflecting the country’s growing economic potential.

American venture capital investments of over $300 million in Nigeria’s tech sector also highlight its appeal as a hub for innovation. With Trump’s policies favoring digital trade and agriculture, Nigeria is poised to attract even more U.S. partnerships.

1. South Africa

As the leading African beneficiary of AGOA, South Africa’s non-crude exports to the U.S. totaled $55.9 billion in 2024, driven by vehicles, wine, and industrial goods. Its advanced manufacturing capabilities align with U.S. efforts to diversify supply chains away from China.

Under Trump’s administration, South Africa’s industrial and trade sectors are likely to benefit from expanded bilateral agreements and infrastructure investments. This positions the country as a key player in U.S.-Africa economic relations.