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Yellen Focuses on Energy in S. Africa 01/26 06:05
U.S. Treasury Secretary Janet Yellen discussed South Africa's transition
from its heavy reliance on coal to greener energy sources during talks with the
country's finance minister Thursday.
PRETORIA, South Africa (AP) -- U.S. Treasury Secretary Janet Yellen
discussed South Africa's transition from its heavy reliance on coal to greener
energy sources during talks with the country's finance minister Thursday.
Yellen made brief remarks to reporters ahead of a meeting with Finance
Minister Enoch Godongwana in Pretoria but avoided mention of South Africa's
recent decision to take part in joint navy drills with Russia and China off its
east coast next month.
South Africa is a key U.S. and Western partner but also holds strong ties to
Russia and China, and it has adopted a neutral stance over the war in Ukraine.
The announcement that South Africa would host Russian and Chinese warships
for 10 days of exercises in February has raised concern at the White House.
Russian Foreign Minister Sergey Lavrov was in Pretoria for an official visit
earlier this week.
Yellen's 10-day trip to Africa, which has already included stops in Senegal
and Zambia, is one of the first steps in the Biden administration's aim of
reestablishing ties on the continent of 1.3 billion, where China has rapidly
increased its economic presence and Russia has gained a military foothold.
U.S. ambassador to the United Nations Linda Thomas-Greenfield is also on a
tour to Africa, and President Joe Biden has said he plans to visit this year.
On Thursday, Yellen said South Africa's energy sector would be one of the
focuses of her talks with Godongwana.
The country is embroiled in an electricity crisis, with scheduled rolling
blackouts hitting businesses and households for up to 10 hours a day because of
diesel shortages and breakdowns at the state-owned electricity provider's aging
coal-fired power plants.
South African President Cyril Ramaphosa skipped this month's World Economic
Forum gathering in Davos, Switzerland, because of the blackouts, which have led
to stinging criticism of his government. The blackouts are expected to last for
months.
Africa's most developed economy relies on 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 power stations and increasing its use of renewable energy. Its target
is zero carbon emissions by 2050.
South Africa has received pledges of up to $8.5 billion from the United
States and other Western nations to fund its energy transition away from
coal-burning plants and recently agreed to some parts of the loan funding at
the U.N. climate conference in Egypt last year.
"As you know, South Africa is the first country with a just energy
transition partnership to which the United States was proud to commit as a
partner," Yellen said. "This partnership represents South Africa's bold first
step towards expanding electricity access and reliability and creating a
low-carbon and climate-resistant economy."
Yellen has a mission of promoting American investment and ties. China has
overtaken the U.S. in foreign direct investment in Africa, and trade between
Africa and China surged to $254 billion in 2021, up about 35%.
Ahead of the U.S.-Africa Leaders Summit in Washington in December, U.S.
Deputy Commerce Secretary Don Graves said, "We took our eye off the ball so to
speak (in Africa), and U.S. investors and companies are having to play catch
up."
Godongwana said Thursday that the U.S. still ranks among South Africa's top
trading partners.
"My hope is that this may continue," he said.
Yellen also was expected to hold a closed meeting with Ramaphosa and visit a
U.S.-owned Ford car assembly plant.
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