US promises billions of dollars of investment in Africa at US-Africa Summit.

From the 12th to the 15th of December, the United States hosted several world leaders in the 2022 US Summit that was hosted in Washington by President Biden. Such a gathering was last hosted by the country eight years ago which demonstrates a new reinvigorated interest in investing in Africa and building new trade relations. Why is America suddenly interested in African, and how can we traders expect this investment to materialize in the African currency markets.

As these investments begin to materialize there will be some volatility in the market from the point of announcement of these investments. The issue is some brokers do not offer trading accounts in the currency that you may be using. It may be tempted to open a foreign currency account but you will be hit by conversation rates and issues and end up gaining less from your wins. What you need to do is to download WikiFx and find a broker that suits your trading preferences in Africa. WikiFx is connected to every broker regulatory board in the world so they can help you find the best brokers that can serve in your country well. They also keep a list of the known scammer brokers you should avoid so you can save your money before you lose it to fraudulent brokers. Trust me. Download WikiFx today and start protecting yourself from brokers.

Why is the USA investing heavily in Africa

The last couple of months have presented the world with unprecedented economic turmoil. Even now we are at the edge of a global recession due to the consequences of COVID-19 fiscal policies as well as the disruption of oil and food supply chains caused by the Russia-Ukraine war. This disruption of services caused a number of economic issues, namely the rising of the cost of living as inflation hit most global economies and oil prices shot to record levels.

The war in Ukraine highlighted the dependence that the US as well as the rest of the world has on the supply chains hosted by Ukraine and Russia. The USA may want to diversify their access to resources like oil and gas from other suppliers and Africa being a continent full of resources but low on investment, the USA may be looking into investing in Africa to free up these resources and disable their dependency on European and Saudi suppliers.

What does this mean for us Traders

At this point we should keep a close ear to the ground to see which countries are to receive this investment. Whichever country is announced to receive investment, there is a high chance that there will be positive volatility that will be present in the currency market of that country. We should be focused on countries with positive relations with America, eg South Africa, Kenya etc and wait for investment project announcements. From those announcements you are then encouraged to follow proper risk management.