United States Secretary of the Treasury, Janet Yellen
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Russia’s war in Ukraine is hitting Africans particularly hard by exacerbating food insecurity and putting an unnecessary drag on the continent’s economy, US Treasury Secretary Janet Yellen said in Senegal’s capital Dakar on Friday.
Yellen said ending the war would be best to help the world economy, but Treasury estimated that a Group of Seven-led price cap on Russian crude oil and refined products to limit Russian revenues could save the 17 largest African net oil importers. countries $6 billion annually.
Speaking at the start of a three-country visit to Africa, Yellen said some emerging market countries were saving even more by using the price cap to negotiate deeper discounts with Russia, and the Treasury was encouraging others to do the same.
The G7 countries and Australia implemented the oil price cap on December 5, banning the use of Western-provided marine insurance, finance and other services for cargo priced above $60 a barrel. An additional limit for Russian refined petroleum products, such as diesel and fuel oil, will take effect on February 5.
Yellen said the United States was working with African leaders to mitigate the damage caused by Russia’s “illegal and unprovoked war” in Ukraine, which along with COVID-19 slowed growth and pushed millions of Africans into poverty and hunger.
Washington provided about $13 billion in emergency aid and food assistance last year, and is now forging a US-Africa strategic partnership to address the near-term food needs of more than 300 million Africans, Yellen said. You are also helping to build more resilient and sustainable systems for the future.
Yellen is the first of a series of top US officials planning to visit Africa this year, including President Joe Biden, as Washington seeks to deepen ties with the continent and provide a counterbalance to China, whose guaranteed loans have left many nations sorely indebted. .
Speaking at a co-working space that helps women and young entrepreneurs, Yellen drew stark contrasts to the approach in other countries, emphasizing that US investments in Africa were motivated by “our mutually beneficial long-term partnership” with the goal of generate positive economic benefits. returns.
It’s a message Yellen plans to drive home throughout her visit, with further stops planned in Zambia and South Africa, where she will also focus on energy, climate change and food security.
He said that Africans were demanding greater accountability and transparency from their governments, calling it a prerequisite for sustainable economic growth. The US commitment, she said, prioritized “adhering to high standards such as transparency, good governance, accountability and environmental sustainability.”
In certain cases, he said, Washington could also condition investments on policy reforms that would help mobilize investment from the private sector.
“While our approach can be demanding, we believe it delivers lasting results. Countries should beware of shiny deals that can be opaque and ultimately don’t really benefit the people they were supposed to help in the first place.” place,” he said. “This can leave countries with a legacy of debt, diverted resources and environmental destruction.”
‘Huge potential’
Yellen, who has long been critical of the pace of China’s efforts in dealing with the debt of Zambia and other countries, said it was important to provide “timely and comprehensive” solutions to allow African economies to continue making significant public investments.
He told reporters after meeting Senegalese President Macky Sall that he raised the debt issue during his meeting with Chinese Vice Premier Liu He in Zurich and that China’s response was “certainly constructive.”
“They have indicated that they are ready to work with us to try to see if we can move forward on the debt situation, which we both agree is a real problem,” he said.
Yellen previously met 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 “a lot to discuss about how best to deal with the challenges facing our countries, including in the context of global financial tightening and an economic environment increasingly uncertain world.
Yellen told business leaders from the US Chamber of Commerce that the main focus of her visit is “the continent’s enormous economic potential, thanks to its demographic trends and the impressive dynamism of its entrepreneurs.”
“The United States is committed to working with Africa to make that promise a reality, because we know that a stronger African economy is good for the world and good for the United States,” he said.
