US firms are committed to SA, says Yellen

• Treasury secretary says Washington strategy recognises that ‘Africa will shape the future of the global economy’

American companies have doubled down on their commitment to SA, US treasury secretary Janet Yellen said in Pretoria on Thursday. She is on a three-day visit to SA, which comes after the Zambia and Senegal legs of her Africa trip. On Thursday afternoon, Yellen visited US carmaker Ford’s Pretoria plant in between meetings with prominent figures, including finance minister Enoch Godongwana and Reserve Bank governor Lesetja Kganyago.

American companies have doubled down on their commitment to SA, US treasury secretary Janet Yellen said in Pretoria on Thursday. She is on a three-day visit to SA, which comes after the Zambia and Senegal legs of her Africa trip.

On Thursday, Yellen visited US carmaker Ford’s Pretoria plant in between meetings with prominent figures, including finance minister Enoch Godongwana and SA Reserve Bank governor Lesetja Kganyago.

SA is the largest trading partner of the US in Africa, with two-way trading rising from R117bn in 2014 to more than R189bn in 2020.

Trade and investment relations take place under the auspices of the African Growth and Opportunity Act (Agoa), a preferential-trade programme that enhances market access to the US for about 40 Sub-Saharan nations by eliminating import levies on more than 7,000 products ranging from textiles to manufactured items.

The US ranks among SA’s top trading partners, with a diverse flow of goods, services and know-how between the two countries, serving as a critical launch pad for developing both economies.

NEW INVESTMENTS

“As you know, Ford recently began production of vehicles made possible by its $1bn investment in SA,” Yellen said.

“Technology companies like Cisco, manufacturing companies like General Electric and financial firms like Visa have also made new investments. We believe that leadership in the industries of the future requires close partnership with companies and people in Africa.

“Prosperity in Africa also requires promoting more trade within Africa.”

The US saw Africa’s demographic boom as a big opportunity, she said.

“By 2050, Africans are projected to make up a quarter of the world’s population. Africa’s workforce is rapidly growing at a time when other regions face the challenge of ageing populations. And this presents an extraordinary economic opportunity, and the responsibility to make sure that this growing population has ample job opportunities, or work, to boost trade and investment begins with facilitating business between Americans and Africans.”

“As Africa’s middle class grows, the continent will become a bigger market for its own goods and services. Trade between African countries has the potential to boost good jobs and economic opportunity, and it enables Africans to benefit from the innovations of their neighbours. That’s why the US strongly supports the African Continental Free Trade Area.”

Yellen said the US sought deeper collaboration with Africa. US strategy towards Africa centres on “simple recognition that Africa will shape the future of the global economy.

“The US is ready to work with Africa as an equal partner to find not by what we can do for each other, but rather what we can do with each other.

“We know that a thriving Africa is in the interest of the US. A thriving Africa means a large market for our goods and services. It means more investment opportunities for businesses, like this Ford plant, which can create jobs in Africa and customers for American businesses. Americans can benefit from the dynamism and creativity of people in Africa.

“Across the continent, people are becoming more connected to the world than at any time in history,” Yellen said. “Importantly, Africa is undergoing a significant demographic boom.”