US Treasury Secretary Janet Yellen on Thursday welcomed South Africa's efforts to accelerate its transition from fossil fuels to renewable energy under the Western-backed "Just Energy Transition Partnership" as she met South African Finance Minister Enoch Godongwana.
She also stated that the US is seeking deeper economic integration with South Africa to "enrich the resilience" of both economies. She stressed that closer ties with countries that share US economic values will bolster so-called "friendshoring," when allies cooperate in processing and sourcing raw materials.
Following the African Leaders Summit, Yellen's trip to Africa comes at just the right time to underscore the Biden administration's commitment to the $55B revival of US-Africa relations. The climate crisis, Africa's representation in global institutions, and the pressing issue of sovereign debt are among the most important areas where the US has significant leverage. Washington should offer support and investment to protect African economies and strengthen Africa's economic development for mutual benefit.
The new US charm offensive aims to curb the growing influence of China and Russia in Africa. But trapped in the old hegemonic thinking, Washington is simultaneously threatening to punish African states that trade with geopolitical adversaries like Russia — and that's just one reason why Washington is losing credibility in Africa. Only when the US understands that a multipolar era has dawned and that it no longer determines the world's and Africa's fate will it be accepted by Africans as a credible partner.
Above all, Yellen's Africa trip highlights the difficulty the US faces in convincing countries globally that their interests are better served by allying with Washington than with China or Russia. However, the increasing competition between various geopolitical rivals for influence in Africa may work to the continent's advantage if African governments avoid taking sides in the new "Scramble for Africa" and instead act in their countries' unique political and economic interests.
There's a 50% chance that South Africa's GDP per capita PPP will be at least $12,100 in 2030 (in constant 2017 USD), according to the Metaculus prediction community.