US, Africa Business Summit Discusses 'Building Future Together'

Family photo of the participants in the US-Africa Business Summit in Marrakech (Asharq Al-Awsat)
Family photo of the participants in the US-Africa Business Summit in Marrakech (Asharq Al-Awsat)
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US, Africa Business Summit Discusses 'Building Future Together'

Family photo of the participants in the US-Africa Business Summit in Marrakech (Asharq Al-Awsat)
Family photo of the participants in the US-Africa Business Summit in Marrakech (Asharq Al-Awsat)

Moroccan Foreign Minister Nasser Bourita has said that Africa needs active partners who do not exploit short-term opportunities, noting that it is time for the continent to reap the fruits of its potential and play its pivotal natural role in the international arena.

"It is time for Africa to reap the benefits of its countless potential and its dynamic youth, and to play its central and natural role on the international scene and in the major developments taking place at the global level," stressed the Minister on Wednesday at the opening of the 14th session of the US-Africa Business Summit.

Bourita said that the wealth and qualifications of the 54 African countries are a blessing that enriches the continent, adding that the states are responsible for achieving comprehensive growth and sustainable development.

The Minister pointed out that the summit coincides with a period of hope for the disappearance of the Covid-19 pandemic.

The summit also coincides with a phase in which the global economy affected the chains of production, investment, and trade, causing worrying inflation and economic pressures, which requires the commitment to cooperation as the only way to ensure security, fluidity of trade, and preservation of the confidence of investors.

In this complex context full of challenges and marked by the reconfiguration of the international economy, the continent is a reservoir of growth in the global economy and an ally of weight for its international partners, said Bourita.

The Minister recalled that Africa owns 23.5 percent of the world's agricultural land, qualifying it to be among the most critical actors in food security.

The Minister noted that thanks to the continent's rich human capital and natural resources, and given its future structured and interconnected market, within the framework of the African Continental Free Trade Area (AfCFTA), its regional economic groupings and its economic growth rate of six percent, Africa has the potential to cope with crises and strengthen its sovereignty in strategic sectors to ensure the achievement of inclusive growth and fair and equitable development.

Addressing the participants, Bourita indicated that African countries need to work together to build an economy that looks forward to the future and derives its strength from its integration into the global trade system and international value chains.

"A healthy and solid economy prioritizes industrialization, employment, and value creation, to ensure our continent's rightful place on the global economic map," he said.

Bourita stated that this requires two conditions: carrying out necessary economic reforms to create an appropriate business climate while the private sector should play its national role and mobilizing international partners of Africa to accompany the development programs implemented by the countries of the continent.

He proposed establishing a mechanism to track the implementation of the projects resulting from the partnership.

The Minister noted that the vast number of participants in the summit highlights the critical and promising prospects of the partnership between Africa and the US in trade, investment, and business.

It also underscores the importance of the private sector and development and investment institutions as the main lever of this partnership.

He added that the organization of the summit in Morocco illustrates the maturity of the Moroccan-US strategic partnership, which, thanks to its development at the bilateral level, contributes directly and effectively to security and stability in other geographical areas, particularly in Africa and the Middle East.

For her part, US Vice President Kamala Harris said in her statement that the US administration recognizes the critical importance of strengthening its relationship with countries across Africa.

The summit demonstrates Washington’s enduring commitment to its African partners, said Harris, adding that "it will be based on principles of mutual respect and shared interests and values. And a critical part of this summit will be to bolster our economic relationship, which brings me to the importance of this gathering of public and private sector leaders in Marrakech."

"I am pleased to see the advances made in implementing the African Continental Free Trade Area, and we will work with you to ensure its success."

The US is committed to bringing all the tools at its disposal, including development financing, grants, technical assistance, and support for legal and regulatory reforms—all to help its African partners thrive, she said.

In turn, the Executive Director of the Millennium Challenge Corporation (MCC), Alice Albright, reviewed the US and African cooperation prospects.

Albright is leading the US Prosper Africa delegation to the summit, which includes senior government officials and investors.

The President of the African Development Bank, Akinwumi Adesina, spoke very positively about Morocco, noting that it witnessed strong dynamism at the African level and had several resources.

Adesina said Africa is an important gas supplier to Europe with various energy resources and excellent agricultural capabilities, stressing that the continent offers essential investment opportunities.

He asserted the importance of attracting capital in cooperation with US agencies to support African investment.

Themed "Building the Future," the summit is organized under the patronage of King Mohammed VI and in partnership with the "Corporate Council on Africa" (CCA). It brings together a large US government delegation, African ministers, and decision-makers of the largest US multinationals and African business community.

The event is marked by high-level dialogues, plenary sessions, panels, roundtables, and side-events around the continent's priorities in food security, health, agriculture, energy transition, new technologies, infrastructure, and the integration of industrial ecosystems.



Tesla, Chips, and Banks Tumble as China’s Retaliation Stokes Fears of Widening Trade War

Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)
Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)
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Tesla, Chips, and Banks Tumble as China’s Retaliation Stokes Fears of Widening Trade War

Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)
Tesla’s logo on a building of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, 03 April 2025. (EPA)

US chip companies, banks and oil majors fell sharply on Friday after China retaliated to Trump's tariffs with steep duties, in an intensifying trade war between the world's two largest economies that cast a shadow on global growth.

China slapped additional duties of 34% on US goods, set to go into effect April 10. It also announced curbs on exports of some rare-earths and added several US firms to its export control list and the "unreliable entities" list, which allows Beijing to take punitive action.

The action followed US President Donald Trump's 34% duties on imports from China announced on Wednesday, which triggered a massive market meltdown on Thursday. The latest levies were on top of the 20% tariffs on China imposed earlier this year.

Investors were already fretting over potential supply chain disruptions, price hikes and demand destruction for everything from cars and smartphones to sneakers.

Shares of Tesla and Apple - among consumer tech companies with a large exposure to China - were down 8% and 4%, respectively. While both companies have local production in China, duties on US-imported parts could squeeze margins and force price hikes.

"Several tech companies have established local supply chains in China. Most source components from China already, and hence, disruptions should be controllable, though we do expect price hikes on parts and components not being sourced from China," said Nishant Udupa, practice director at research firm Everest Group.

For Tesla, already in a bruising price war with local Chinese rivals, raising prices would pressure demand further.

"Apple's smartphone sales had already been declining in China for some time, faced with growing, cheaper competition. So, the prospect of steep import duties being imposed is likely to sharply erode sales even further," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Shares of Alphabet, Microsoft and Amazon.com were subdued as they had limited exposure to China.

GE Healthcare's stock slid nearly 13%, following China's export controls on a rare-earth metal that is used in MRI scans. The country's announcement of an anti-dumping investigation into imports of certain medical CT tubes from the US and India added to the worries.

SEMICONDUCTORS

Chip companies are set to face headwinds, too, although US exports a much smaller amount of electronic equipment to China. Shares of Intel, Applied Materials and Qualcomm, all of which count on China for at least 30% of revenue, were down 5% to 8%.

The US exported more than $15 billion worth of electrical and electronic equipment to China in 2024, with most of the value coming from integrated circuits, transistors and other semiconductor devices, according to economic data provider Trading Economics. In comparison, the U.S. imported more than $127 billion in electronic equipment from China last year.

"Semiconductors will feel a greater impact ... We're already witnessing a domestic ecosystem evolve in China, with direct alternatives for every major US semiconductor firm. This trend is likely to accelerate," Udupa said.

NATURAL RESOURCES

Crude prices, already under pressure from an expected OPEC+ oil output hike in May, added to the losses.

Oil majors Exxon and Chevron fell more than 5%. Top oilfield service company SLB dropped 10%, and the biggest US refiner by volume, Marathon Petroleum, fell 6%. Chemicals company DuPont slid 12%.

"The trade war escalated, recession fears rise and consequently oil demand growth is to take a sizeable hit," said Tamas Varga, analyst at PVM.

China is also the largest market for US agricultural products, even as imports of US farm goods dropped last year.

Shares of top grain traders like Archer-Daniels-Midland fell 8% while Bunge was down 6%. Fertilizer firms Mosaic and CF Industries fell 10% and 8%, respectively.

China's tariffs on US soybean exports would increase the cost to local customers, especially animal feed producers, and could prompt the country to source more from Brazil and Argentina, said Morningstar analyst Seth Goldstein.

BANKS

Banks' shares extended their declines from Thursday. The industry has been clouded by fears that a trade dispute could temper consumer confidence, reduce spending, weaken loan demand and pressure fees from advising on deals.

JPMorgan Chase, the biggest US bank by assets, sank 7%. Wall Street titans Goldman Sachs and Morgan Stanley dropped more than 7% each.

MACHINERY

Heavy machinery makers Caterpillar and Deere fell 5% and 4%, respectively, on concerns over demand from one of their largest overseas markets.

China is a major buyer of construction and agricultural equipment and a key player in global infrastructure spending.

RETAIL

Shares of major luxury and footwear firms reversed coursed after Trump said Vietnam's leader To Lam has offered to reduce tariffs on US imports. Ralph Lauren's shares were up 2.5%, while Tapestry rose as much as 3.6%.

Nike gained 4%, Roger Federer-backed On jumped 7.2% and Lululemon Athletica rose 3%. The stocks had initially fallen after retaliatory tariffs by China, a major revenue contributor.