Africa Is Open for Business. American Companies Are Missing Out

Washington’s shift from aid to trade will mean little without stronger commercial diplomacy, local partnerships, and a strategy to help American companies enter African markets.

The Trump administration’s recent decision to suspend South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a U.S. trade preference program, has caused confusion about the future of U.S.-Africa trade relations. Despite the news, America’s tech giants, including Meta, Google, and Microsoft, are headed to Cape Town’s Africa Tech Festival on November 17-19, 2026.

Meanwhile, Rwanda continues to brand itself as a haven for foreign investment, attracting the National Basketball Association to open an African league in the country. African governments must now navigate the changing political winds of Washington while the private sector must adapt quickly to disrupted supply chains.

Since the dismantling of the US Agency for International Development, Washington has shifted its focus from aid to trade. On the surface, this seems like a good first step. However, more is required to mobilize the US private sector to invest in African markets, including trade missions and increased local partnerships. President Trump’s two-year extension of AGOA until December 31, 2028, offers a unique opportunity for greater U.S. investment on the continent. However, AGOA has often been used as a political tool against unfavorable African nations out of step with Washington, causing trade uncertainty. Foreign aid cuts have also stressed the resilience of African economies and their ability to withstand external shocks.  

However, this also creates an opportunity for high-risk investors and small and medium-sized companies looking to expand in Africa.  Compared to China and the Middle East, American companies make up a handful of foreign companies operating in many African countries.  Just over 2000 American companies operate across 54 African countries, with South Africa, Egypt, and Nigeria holding the largest concentration. U.S. sales revenue across the continent does not equal the foreign assistance that USAID managed, which totaled $35 billion in FY 2024. Meanwhile, over 10,000 Chinese companies operate across Africa, accounting for 12 percent of Africa’s industrial output.  

Large US multinational corporations often ignore smaller African markets like Benin or Zambia due to few multi-million-dollar business deals.  Less than 2% of total US merchandise exports reach African markets, lagging far behind other regions like North American countries (Mexico and Canada), which absorb 33% of US exports alone.  U.S. companies must expand their knowledge of the business climate and culture while also realizing that Africa’s development challenges present opportunities to address economic growth and reduce poverty. 

TransAtlantic Global Partners LLC, a U.S. global business advisory firm, recently led a U.S.-Benin trade mission in August 2026 for American investors who want to explore new markets.  The trade mission revealed how American investors can overlook or underestimate investment opportunities on the continent. I met with government officials, business leaders, entrepreneurs, and organizations working across several sectors of the Beninese economy. 

Smaller markets can offer significant opportunities

Benin is not Nigeria. It does not have Nigeria’s population or consumer market, nor does it have the international investment profile of South Africa or Kenya. But that does not mean it should be overlooked.

Benin’s location along the Gulf of Guinea and its connection to regional markets give it a strategic importance. My trade mission trip demonstrated that Benin offers a different set of opportunities, particularly for small- to medium-sized enterprises. The Port Authority highlighted the safety of the port, the African trade zone, and how importers and exporters can easily track their shipments compared to nearby ports.  

Benin’s relatively stable political environment, improving infrastructure, strategic location, and efforts to attract foreign investment make it worthy of greater consideration for U.S. businesses. At the moment, roughly a dozen American companies operate in Benin, while two-way trade between each country in 2025 was $473.7 million according to the US Trade Representative. But trade must also create more jobs and economic opportunity for both countries. 

For U.S. companies, the opportunity may not always be about entering Benin solely to sell to its domestic consumers but reaching the larger West African region. 

Agriculture is an opportunity for investment—not simply development assistance

Agriculture was another area where I saw significant potential. During the mission, I met women farmers and poultry producers who discussed both the opportunities and challenges of expanding their businesses and accessing international markets.

American companies can provide agricultural technology, processing, logistics, equipment, financing, supply chains, and market access. The question is not simply how the United States can help African farmers produce more. It is also how U.S. businesses can become partners in building commercially viable agricultural value chains.

Tourism should be viewed as an economic sector, not just a travel destination

By 2030, Benin is expected to invest $1.4 billion to drive the tourism sector and attract 2 million visitors per year. Cultural heritage tours at the Door of No Return in Ouidah and the water village at Ganvie are the main tourist attractions, along with the beautiful, pristine beaches, and Voodoo cultural festivals. 

Despite Benin’s rich history and cultural heritage tourism from the Transatlantic Slave Trade, the French language may be a barrier to attracting African American visitors.  U.S. companies should look beyond traditional tourist spots and help grow virgin markets. This could include building more hotels, rental car companies, tour operators, and promotion and marketing firms to bring international musicians and artists to the country. 

The biggest barrier may be a lack of information

One of my strongest takeaways from the mission was from government officials and private-sector stakeholders was that Benin is open to U.S. investment and would welcome greater American commercial engagement.  

However, US investors need more education and market awareness about Benin’s investment climate, government priorities, and potential role as a gateway to the broader West African market.  This is where trade missions can play an important role. By visiting the market, American companies can move beyond assumptions and develop relationships directly with government officials, entrepreneurs, and potential business partners.

Moving Beyond AGOA

AGOA can help create the framework for expanding U.S.-Africa trade, but trade preferences alone will not create deeper commercial ties, especially if politics fracture relationships. 

The United States needs an investment strategy at the federal, state, and local level that encourages American companies to invest across Africa. That means developing stronger commercial intelligence on smaller and emerging economies and helping U.S. businesses identify where their products, services, technology, and capital can meet local demand. 

While the US embassy is a starting place for new American companies entering emerging markets, they are often understaffed and do not have enough commercial officers to serve American investors. 

If the United States wants to build a stronger commercial relationship with Africa, we cannot simply ask how much Africa can export to America. We also need to ask where American companies can invest, build partnerships, and create value on the continent.