Page 6 - AfrOil Week 50 2022

AfrOil COMMENTARY AfrOil

A $55bn commitment

Does the US-Africa Leaders Summit signal a sea change in US policy?

ON the eve of the three-day US-Africa Leaders When running to win the White House, Joe
Summit in Washington, DC that kicked off in Biden’s campaign committed to implementing
WHAT: Washington, DC on December 13, the White a “bold strategy” towards Africa that would be
The US government has House pledged $55bn for the continent over the based on a “mutually respectful engagement”
pledged to invest $55bn next three years. Could it be the dawn of a new and reinvigorated diplomacy.
in Africa over the next era? The US-Africa Leaders Summit, reportedly
three years. The summit, which wraps up on December organised at Biden’s request, comes at a time of
15, aims to “demonstrate the United States’s international political and financial turmoil,
WHY: enduring commitment to Africa and under- and the Russia-Ukraine war, whose spillover
Africa’s market potential score the importance of the US-Africa relations includes soaring prices of food, fuel and fertiliser
–and abundant oil and
gas resources - cannot and increased cooperation on shared global in Africa, along with a renewed battle for hearts
be ignored. priorities.” But then so did the first such event, and minds on the continent not seen since the
held in 2014. Cold War.
WHAT NEXT: Somewhat anticipated by the US-Africa
The US will continue to Business Summit held in Marrakech last July, Climate concerns
compete with China and has attracted more than 40 African heads of state Africa is still reeling from the impact of the
Russia for influence in and government. Excluded were Burkina Faso, COVID-19 pandemic, which destabilised the
Africa. Guinea, Sudan and Mali (all suspended from continent’s developing economies. The nefar-
the African Union due to recent coups), Eritrea ious effects of climate change are also strongly
(which does not have diplomatic relations with felt on the continent, particularly in the Horn
the US), Western Sahara and Somaliland (not of Africa and Sub-Saharian regions, where pro-
recognised as a state by the US). longed droughts have led to widespread food
In terms of business potential, it should be insecurity and pockets of outright famine.
self-evident that Africa cannot be ignored on The recent COP27 conference, held in
the global stage. The continent has a potential Sharm-El-Sheik, was in many aspects disap-
market of 1.3bn, and a combined GDP of $2.6 pointing. Nevertheless, it did produce the mile-
trillion. Its population is expected to reach 2.5bn stone “loss and damage fund” agreement, aimed
by 2050, making Africa the world’s fastest-grow- at guaranteeing financial compensation to the
ing region. nations most vulnerable to the climate crisis,
The continent is, of course, also rich in oil such as the African countries that, conversely,
and gas deposits, key as the Western world seeks contribute the least to global warming.
alternative suppliers to Russia even as global Still, the situation is alarming: according
leaders pledge to cut greenhouse gas emissions. to the Red Cross, 146mn people are currently
It is also rich in the minerals key to making a going hungry on the continent as a result of the
transition to zero-carbon. largely impacted regional agriculture.

More than 40 African heads of state attended the summit (Photo: Facebook/@nakufoaddo)

P6 www. NEWSBASE .com Week 50 15•December•2022