United States officials, at least, are strategically moving to reset multi-dimensional relations with Africa after the last African Leaders’ Summit held in Washington. President Joseph Biden and Vice President Kamala Harris – in well-coordinated working agenda with the White House, the Department of African Affairs, and the U.S. Treasury – are up to the task. This challenging task is backed with US$55billion budget publicly announced during the African leaders’ gathering.
It all began with series of working visits to Africa late December and early 2023, which underscored the message delivered by Biden at the last summit: “The United States is all-in on Africa, and all-in with Africa”. The US$55billion budget, along with private sector investment for Africa, well-built institutionalised structures and the African-American diaspora, are distinctively linking together the United States and Africa.
On January 20, U.S. Treasury Secretary Janet Yellen began a 10-day trip to three African countries that aims to revitalise and expand U.S.-Africa ties and address challenges, such as climate change, food security and debt in Africa. After decades in which China has dominated investment on the continent, the U.S. is pitching itself as a more sustainable alternative. In the sub-Sahara, Yellen visited Senegal, Zambia and South Africa.
That will be followed by the United States Ambassador to the United Nations, Linda Thomas-Greenfield, who will travel to Ghana, Mozambique and Kenya starting January 25, and other official visits by Secretary of State Antony Blinken to Eastern, Western and Southern Africa.
In Dakar, Yellen had extensive and fruitful discussions with Senegalese President Macky Sall, who is also the rotating Chair of the African Union. The African Union is a 55-member continental organisation with headquarters in Addis Ababa, Ethiopia. With President Macky Sall, she highlighted United States’ efforts to boost economic ties with the region “by expanding trade and investment flows”, according to official reports.
Later, she also interacted with Senegal’s Minister of Economy, International Planning and Cooperation Oulimata Sarr, who, like Yellen, is also the first woman to serve in her current role. In a meeting with Finance Minister Mamadou Moustapha Ba, Yellen said the two officials had “much to discuss on how best to meet the challenges both of our countries face, including in the context of global financial tightening and an increasingly uncertain global economic environment. The U.S. is committed to working with Africa to realise that promise, because we know that a stronger African economy is good for the world and good for the United States”.
In a speech delivered at a business event in Senegal’s capital Dakar, Yellen mapped out the United States vision for strengthening African relations, eyeing the massive economic opportunities created by its demographic boom.
Currently, Senegal is participating in a G-20 programme that helps finance a shift from fossil fuels to clean power generation. It’s also on the verge of becoming a significant fossil-fuel producer. A new offshore project straddling its border with Mauritania is projected to bring Senegal US$1.4billion of oil and gas revenue from 2023 to 2025. The project may also provide Europe with energy relief as it turns away from Russian gas and oil.
Reports indicated that Treasury Secretary Yellen gave the concrete go-ahead on rural electrification project in Senegal. The new rural electrification project estimated to bring reliable power to 350,000 people while supporting some 500 jobs in 14 American states.
Our monitoring shows that Yellen travelled to the site of the project, headed by Illinois-based engineering firm Weldy Lamont. The new project received technical assistance from the U.S. Power Africa initiative, building capacity through the U.S. Agency for Trade and Development, and a US$102.5million loan guarantee from the Export-Import Bank.
“Our goal is to further deepen our economic relationship and to invest in expanding energy access in a way that uses renewable resources spread across the continent,” U.S. Treasury Secretary Janet Yellen underlined in her remarks. Senegal has one the highest rates of electrification across sub-Saharan Africa – between 70 percent and 80 percent – but access to electricity remains far more limited in rural areas.
Such disparities can hinder opportunity for households and businesses in areas otherwise ripe for economic development, Yellen said. The project includes an important renewable energy element with a solar grid to power 70 villages. “This ground-breaking project will create a higher quality of life in many communities, and it will help Senegal’s economy grow and prosper. It will also help Senegal get one step closer to its goal of universal electricity access by 2025,” she said.
Yellen, who met women and youth entrepreneurs in Dakar, said the electrification project would allow Senegal to rely on energy sources that are within its borders, cost effective and not prone to the kind of volatility in energy prices sparked by Russia’s invasion of Ukraine. The U.S. Power Africa project has helped connect 165 million people to reliable electricity across Africa. Its goal is to add at least 30,000 megawatts (MW) of cleaner and more reliable electricity generation capacity and 60 million new home and business connections by 2030.
Yellen, then, travelled to Zambia to meet President Hakainde Hichilema as well as other finance officials. President Hichilema, who took office in 2021, has promised to restore the copper-rich nation’s credibility and creditworthiness after inheriting a cash-strapped economy. Here, she spoke on efforts to improve global health and prepare for future pandemics as well as on food production.
Yellen cited US$11billion in commitments by the U.S. Development Finance Corp, and US$3billion in programmes by the Millennium Challenge Corp in 14 African countries, with more in the pipeline. On a wider scale, the G7 group of wealthy Western nations also planned to mobilise some US$600billion for global infrastructure investments over the next five years.
“We are saying that African countries firmly belong at the table. Their communities are disproportionately vulnerable to the effects of global challenges. And any serious solution requires African leadership and African voices,” she said.
In South Africa, which recently assumed the chairmanship of the BRICS emerging economies group, Yellen held talks with Finance Minister Enoch Godongwana and South Africa Reserve Bank Governor Lesetja Kganyago. She also visited the Ford assembly plant to showcase successful examples of U.S.-Africa economic relations.
Washington provided about US$13billion in emergency aid and food assistance last year, and is now setting up a U.S.-Africa strategic partnership to address the short-term food needs of more than 300 million Africans, Yellen said. It is also helping to build more resilient and sustainable systems for the future.
In practical terms, Yellen focused on building relationships and understanding the barriers to investment and business in Africa. Our monitoring shows that Chinese trade with Africa is about four times that of the United States, and Beijing rapidly expanded its lending by offering cheaper loans, although the opaque terms and collateral requirements are now being questioned by some African countries.
United States is currently looking to broaden investment in South Africa, which is developing new legislation to speed up energy projects. There are a number of external players showing interest in the energy sector, these include Russia, China, United Arab Emirates and others in the Arab world.
Former US ambassador Susan Page told AFP that despite positive developments like the major summit in Washington last year, “the proof is in the pudding” when it comes to pledges of support for African countries. “Are they really going to come up with the serious money… Or is it going to be a trade-off?” asked Page, now a professor at the University of Michigan. She added that while US moves have been largely framed as countering China’s advances, it “is a shame because African countries want to be treated as Africa, and not as a wedge between great power competition”.
Joseph Siegle, who leads the Africa Centre for Strategic Studies Research Programme, said the scope of Yellen’s visit was far broader than the matter of China’s influence. “From an emerging market standpoint, there is a lot going on there – with its resources and growth and a large African diaspora in the U.S. Arguably the U.S. has not paid enough attention to Africa with the rigour that’s warranted,” he said. “I think the significance of this trip is trying to rectify there hasn’t been enough high-level engagement on the part of the U.S. in Africa.”
In fact, despite criticisms, especially over neo-colonialism and unipolarism, the United States and Africa are culturally, and by biological blood, are inseparable. According to the latest World Bank report, remittances from the African diaspora to the continent was US$49billion in 2021.
With rivals China and Russia competing for influence and opportunity in Africa, the United States has been working to stave off an erosion of its once-powerful position in the region. But as Treasury Secretary Janet Yellen strongly noted, the histories of the United States and Africa were “intimately connected” by the “tragedy” of slavery as Washington seeks to strengthen relations with the continent, speaking at Goree Island, off the Senegalese capital of Dakar – the largest slave trading centre on the African coast.
For their part, many African countries say they are keen for increased investment and financial support for infrastructure development across Africa. And that Africa is only ready for potential credible investors, and not for active anti-American sloganeers and ideological choristers. Africa is not a field for confrontation, but for cooperating on transforming the economy and for participating in the single continental market.
In the emerging multipolar world, the United States still shares cultural values and democratic principles with Africa. The trans-Atlantic slave trade is an integral part of both American and African history. United States is their second home, nowhere else. United States and Africa are ‘intimately connected’ by slavery with culturally indivisible bondage; and currently, with the growing African-American diaspora, it is completely absurd and awkward for external geopolitical rival countries to ask African leaders and Africans to abandon their history and the United States.
