Biden’s Africa Trip Highlights Colonial Legacies and Commodity Dependence

Biden’s visit to Angola highlights the colonial legacy of resource extraction in Africa. The Lobito Corridor initiative aims to enhance the export of essential minerals, yet it reinforces commodity dependence. Africa’s reliance on raw materials stymies economic growth, and amidst global competition, especially with China, a shift towards value-added industries is critical for sustainable development and regional integration.

President Joe Biden’s early December visit to Angola marks his first and possibly last trip to Sub-Saharan Africa as President, highlighting the persistent colonial resource extraction paradigm that undermines Africa’s economic development. A crucial aspect of this visit was the Lobito Corridor initiative, which aims to facilitate the swift export of critical minerals from Central Africa to the Angolan port of Lobito. Despite signifying a new phase of U.S. engagement, the project reinforces reliance on a transaction model that prioritizes commodity extraction over sustainable growth.

Africa, being the world’s most commodity-dependent region, faces significant challenges due to its economic reliance on resource exports. A staggering 90% of Africa’s merchandise exports consist of commodities, according to UNCTAD data, which has perpetuated stagnation and limited the region’s economic diversification. The social and economic implications, including job loss and migration pressures exacerbated by climate change, underscore the urgency for a transition to value-added industries.

Colonial-era transportation infrastructures have left a lasting legacy, primarily serving the interests of external powers by enabling resource extraction rather than fostering local development. The Lobito Corridor will connect vital mineral sources in Zambia and the Democratic Republic of Congo to global markets, facilitating U.S. and EU access to essential minerals needed for future industries. This corridor signifies geopolitical motivations, focusing on resources crucial for green technology amid increasing global competition, particularly with China.

China’s influence in Africa has intensified, overshadowing U.S. presence, which has diminished since the shale oil boom. Angola, highly dependent on its oil sector, has seen a drop in U.S. exports while Chinese investment flourishes, targeting infrastructure and resource-based projects. Despite trade diversification efforts, Africa retains a trade pattern of exporting raw commodities, leading to substantial trade deficits with countries like China.

African engagement with foreign powers has consistently favored primary commodity exports, highlighting the need for enhanced intra-African trade, which remains low at about 15%. Despite trade initiatives like AGOA, U.S. trade with Africa is minimal, with remarkable disparities compared to nations like Vietnam, which successfully integrated into high-value global supply chains without abundant resources.

The reliance on the colonial model of resource extraction has hindered Africa’s macroeconomic stability and growth, particularly as global energy systems evolve. The current transition offers a pivotal opportunity for Africa to shift towards downstream industries, capturing greater value from its resources. This shift would enhance integration into global supply chains and reduce the outflow of capital due to commodity reliance.

Prioritizing localized value addition in Africa aligns with environmental and economic goals, fostering resilience in global supply chains and potentially resolving long-standing trade imbalances. The anticipated benefits from projects like the Lobito Corridor can be maximized if they serve as a foundation for sustainable development and economic growth.

For Africa to derive substantial benefits from the Lobito Corridor initiative, there must be a collective move from short-term extraction to a framework emphasizing sustainable development and competitive integration into global markets. This strategic shift can facilitate Africa’s emergence as a significant player in global supply chains while addressing its colonial legacy and fostering meaningful economic progress.

In summary, while President Biden’s Angola trip and the Lobito Corridor project mark U.S. interest in Africa, they reflect enduring colonial legacies that trap the continent in a cycle of commodity dependence. To unlock Africa’s potential, a transition towards value addition, empowered by local industries, is imperative. This shift not only promises economic growth but also aligns with global sustainability goals.

Original Source: www.cnbcafrica.com