Yellen Discusses Energy Transition in South Africa

PRETORIA, South Africa (AP) — US Treasury Secretary Janet Yellen discusses South Africa’s transition from its heavy reliance on coal to cleaner energy sources during talks with the country’s Treasury Secretary on Thursday.

Yellen made brief remarks to reporters ahead of a meeting with Finance Minister Enoch Godongwana in Pretoria, but did not mention South Africa’s recent decision to take part in joint naval exercises with Russia and China off the east coast next month.

South Africa is a key partner for the US and the West, but also maintains close ties with Russia and China and has taken a neutral stance on the war in Ukraine.

The announcement that South Africa will host Russian and Chinese warships for a 10-day exercise in February has raised concerns in the White House. Russian Foreign Minister Sergei Lavrov was in Pretoria on an official visit earlier this week.

Yellen’s 10-day trip to Africa, which already included stops in Senegal and Zambia, is one of the first steps towards the Biden administration’s goal of reconnecting the continent of 1.3 billion people, where China has rapidly increased its economic presence and Russia received a military foothold.

US Ambassador to the UN Linda Thomas-Greenfield is also visiting Africa, and President Joe Biden has said he plans to visit Africa this year.

Yellen said on Thursday that South Africa’s energy sector will be a major focus of her talks with Godongwana.

South Africa has received commitments of up to $8.5 billion from the United States and other Western countries to finance the transition from coal-fired power plants and recently agreed to some parts of the loan financing at the UN climate conference in Egypt last year.

South Africa, the continent’s most developed economy, uses coal to generate about 80% of its electricity. It plans to reduce that to 59% by 2030 by phasing out some of its 15 coal-fired power plants and increasing the use of renewables. Its goal is zero carbon emissions by 2050.

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“As you know, South Africa is the first country with an equitable energy transition partnership in which the United States is proud to be a partner,” Yellen said. “This partnership represents a bold first step for South Africa to expand access to electricity and reliability, and build a low-carbon and climate-resilient economy.”

Yellen has a mission to promote American investment and connections. China has overtaken the US in foreign direct investment in Africa, and trade between Africa and China has grown to $254 billion in 2021, an increase of about 35%.

Ahead of the U.S.-Africa Leaders’ Summit in Washington in December, U.S. Deputy Secretary of Commerce Don Graves said, “We’re off the ball, so to speak (in Africa), and U.S. investors and companies have to play catch-up.”

Godongwana said on Thursday that the US remains among South Africa’s top trading partners.

“I hope this can continue,” he said.

Yellen is also expected to speak with South African President Cyril Ramaphosa in a private meeting and visit the US-owned Ford car plant in Pretoria.

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