By Wally Adeyemo
A little over one year ago, US President Joe Biden hosted the US-Africa Leaders’ Summit and underscored that Africa will shape the future of the global economy. By 2050, Africa’s population is expected to grow from just over 1.4 billion people to over 2.5 billion people. One in every four people on Earth will be born in Africa. This demographic boom can create tremendous opportunity across the continent, but only if we invest in Africa’s most precious resource, its people.
Last year, US Secretary of the Treasury Janet Yellen travelled to South Africa to demonstrate the Treasury Department’s commitment to a thriving Africa, with deeper ties not only between our two countries but also between our two continents.
We recognise a simple truth: economic growth in Africa is good for the global economy, including the American economy. That’s why the United States is committed to deepening trade ties, investing in the South African economy, and fostering people-to-people relationships among our citizens, businesses, and universities.
At the heart of our relationship is the African Growth and Opportunity Act (Agoa), our mutually beneficial economic partnership. South Africa has become America’s largest trading partner in Africa, with over $20 billion of two-way trade of goods. More than 600 American businesses now operate in South Africa. Ford has invested more than $1 billion in producing cars in South Africa, manufacturing companies like General Electric are setting up shop, and financial firms like Visa have also grown their footprint.
Through the Prosper Africa initiative, we are looking to further connect both American and African businesses with new buyers, suppliers, investors, and economic opportunity. In just a few years, through this programme, we’ve helped close over 1,200 deals across 49 African countries. Over 100 of those deals were in South Africa — expanding the possibility for growth across wide-ranging sectors of the South African economy.
For example, one of those deals supported the co-financing of a $652-million investment in Aspen Pharmacare to support production of vaccines and other therapies in Africa, including at its facility in Gqeberha.
Energy and infrastructure targets
Beyond investment and financing, we know that for businesses to thrive anywhere in the world this century, they need to be able to rely on modern infrastructure and reliable access to energy. In the United States, President Biden signed the Bipartisan Infrastructure Law to revamp our roads, bridges, ports, airports, and more. He also signed the Inflation Reduction Act to quicken the development of new technology and lower energy prices globally. While we do this work in the United States, we are also committed to helping close Africa’s estimated $100-billion annual infrastructure gap.
That’s why we and the G7 have launched the Partnership for Global Infrastructure and Investment to mobilise $600-billion into quality infrastructure projects by 2027 across the world and including in Africa.
It’s also why we – alongside other members of the Just Energy Transition Partnership – are providing South Africa with $9.3 billion and technical assistance to jumpstart clean energy technology and ensure greater energy security. By deepening our trade partnership, rebuilding our infrastructure, and securing reliable energy, South Africa and the United States can unlock the potential of both our citizens and economies.
In the spirit of that partnership, I’ll be travelling to South Africa on 11 March 2024 to build on our joint work. I will meet with government counterparts to see how we can deepen our trade relationship, modernise our infrastructure, and catalyse a clean energy economy.
Most importantly, I will spend the bulk of my time meeting with students, entrepreneurs, and businesses to hear how we can be a better partner to the South African people. What will power the growth of Africa’s economy and, in turn, the global economy is the young people of South Africa? I am eager to hear about their creative ideas, innovations, and ambitions – and to learn how we can help them turn dreams into realities.
The United States is ready to be a partner to the South African people in growing an economy that works for everyone.
Op-ed penned by Deputy Secretary of the Treasury Wally Adeyemo in the Daily Maverick ahead of his travel to South Africa to advance our bilateral economic relationship.
