BEVERLY HILLS, Calif. — African investors are viewing the chaotic situation as a potential opportunity since President Trump is back in the White House, despite the challenges posed by cuts in foreign aid and unexpected tariff decisions.
This perspective came from Vice Gen. Issah Adam Yakubu, the former Chief of Staff of the Ghanaian Navy, who addressed the Milken Institute Conference in Los Angeles this week.
“I coined the term: acquired aid addiction syndrome,” Yakub shared with an engaged audience during a panel titled “Ensuring the Future of Africa.” He emphasized that relying on foreign charity is not the solution to Africa’s needs.
“It doesn’t help us. We really just need trade—fair trade. Aid doesn’t bolster our resilience; it undermines it. It’s like a virus eating away at you,” he explained.
Although the continent is frustrated by the billions in US support directed towards health, education, and social programs, investors at the Milken event are attempting to reshape the narrative by discussing new partnerships and growth opportunities.
Yakub hopes to inspire the next generation of Africans to explore professional paths in maritime sectors and, as the first attendee at the conference, aims to enhance his non-profit think tank, the Guinea Maritime Institute.
The Milken event attracts influential figures, with access fees starting at $25,000, offering opportunities to connect with prominent CEOs, government officials, philanthropists, scientists, and investors.
“Networking is crucial for us to meet people who can support our initiatives,” Yakub mentioned in a brief interview.
“What I hope to gain from this meeting is a global outlook on expectations for the next couple of years.”
The uncertain economic policies under the Trump administration became a significant topic during the conference.
Treasury Secretary Scott Bescent sought to reassure attendees on Tuesday, stating that the administration’s goals of trade, tax cuts, and deregulation are working together to strengthen American companies.
Africa, like the rest of the globe, is subject to Trump’s 10% global tariff. However, Lesotho, Madagascar, and South Africa stand out due to temporary suspensions of these “mutual” tariff policies, which could impose tariffs of 50%, 47%, and 30%, respectively, unless new trade agreements are reached.
The atmosphere at Milken was upbeat.
Chidi Bryden, who previously served as deputy director of African Affairs during the Biden administration, has recently launched a strategic consulting firm focused on development, security, and investment in Africa.
“The message we’ve received is that investment in Africa is still viable. I’m actively engaging with Africa, focusing on talent and critical minerals. My current efforts involve establishing small businesses that provide advisory services in the private sector,” Bryden stated.
Briden also had a tenure as CEO of the Millennium Challenge Corporation (MCC), a US agency known for infrastructure projects that stimulate economic growth, which the Trump administration has since curtailed.
She noted that the MCC could play a pivotal role in enhancing relationships with African nations that have the potential to economically outpace China.
“It’s unclear how small businesses will navigate this environment. Yet, I remain hopeful that this administration will create opportunities,” she added.
The continent houses 54 nations, each with unique opportunities and challenges. By 2050, it is projected to host a substantial workforce and retail market, with predictions suggesting that one in four individuals globally will be African.
However, significant obstacles remain, ranging from corruption and inadequate infrastructure to slow economic growth and humanitarian crises, which hinder foreign investment.
Comfort Ero, president and CEO of the International Crisis Group, cautioned that economic exchanges might not resolve the deep-seated conflicts in Africa.
“If I believed mineral trade could end decades of conflict, I would think the issue would have been resolved by now,” Ero remarked during a discussion panel.
She alluded to potential agreements between Washington and the Democratic Republic of the Congo, where resources could be traded for security assurances. Recently, Washington laid out a framework for mineral trade with Ukraine but did not commit to security guarantees.
The Congolese agreement aims to cease hostilities in East Congo, where the M23 rebel militia, backed by Rwanda, remains active. Last month, Secretary of State Marco Rubio convened foreign ministers from the Congo and Rwanda to establish principles for a resolution.
Ero indicated that progress toward peace talks is vital.
“What this doesn’t address is the ongoing violence in East Congo, the need for militia disarmament, or the concerns of Kinshasa and Kigali,” she conveyed.
One executive who wished to remain anonymous shared that there seems to be a disconnect between the atmosphere in Washington and the one in California.
“The optimism at Milken felt much more encouraging than the mood in Washington. It was striking,” the executive remarked.
“What I heard at Milken was essential for reevaluating the landscape. People continue moving forward.”
While US aid isn’t viewed as the key to Africa’s economic future, many executives reiterated that a lot of lives depend on ongoing humanitarian support. Rubio assured that essential programs would persist despite hefty cuts to the US International Development Agency.
Significant reductions in foreign aid, particularly regarding HIV/AIDS prevention, the suspension of the Prosper Africa initiative, and the potential discontinuation of the African Growth and Opportunity Act, may strain US-Africa relations. The US also plans to reduce funding to the African Development Bank by $555 million.
Despite this, the administration has not moved to cancel commitments made during the Biden administration for the Lobito corridor, a major infrastructure project aiming to transport minerals from Congo to Angola’s Atlantic coast through Zambia.
An African investor, who preferred to remain unnamed to speak freely, expressed that cutting US aid feels like a setback for African leaders and communities.
“I’ve spent considerable time with authorities across Africa, and there’s a respect for the US based on aid programs,” the investor shared.
However, he expressed concern that the global economic downturn could further hinder philanthropic efforts.
“As trade declines, the global economy may slow, impacting commodity prices, which is significant for Africa as a commodity exporter,” he stated.
“African investments may not appear as attractive in that context.”
Laura Kelly received a free pass to attend the meeting.
