Biden’s Africa Trip: Colonial Legacies and the Challenge of…

Biden’s December Angola trip underscores the impact of colonial legacies on Africa, particularly through the Lobito Corridor initiative aimed at enhancing mineral exports. Despite signaling a new era of U.S. engagement, it perpetuates commodity dependence, hindering sustainable economic development. The need for Africa to transition towards increased domestic value addition and diversification is crucial for securing its position in global supply chains and fostering economic resilience.

President Joe Biden’s December trip to Angola marked his first visit to Sub-Saharan Africa as President and possibly his final international trip in this capacity. This journey highlighted the lingering effects of colonialism on African development, especially through initiatives like the Lobito Corridor, designed to facilitate the efficient export of essential minerals from the region via Angolan ports.

The Lobito Corridor project, while signaling a new phase of U.S. involvement in Africa, fosters a development model excessively reliant on resource extraction, exacerbating Africa’s commodity dependence. Statistically, Africa ranks as the most commodity-dependent continent globally, with commodities making up 90% of merchandise exports, a trend that has impeded sustainable economic growth for years.

The infrastructure created during colonial times primarily served to transfer resources from African nations to Europe, perpetuating a legacy that still shapes African economies. The network of railways and roads was not intended to bolster local industrial growth but rather to extract and export raw materials, leaving African nations economically vulnerable and reliant on foreign powers.

As developing nations, especially those rich in resources, find themselves entrenched in a cycle of poverty due to their reliance on commodity exports, they continue to experience significant trade imbalances. The export of natural resources has resulted in repetitive cycles of balance of payments crises, impacting their overall economic stability and integration into global markets.

Biden’s trip also sought to address geopolitical intentions, focusing on securing access to vital minerals for green technologies and countering China’s expanding influence in Africa. China has established itself as a significant player in Africa, dominating both trade and infrastructure development, often via resource-backed loans that further entrench resource extraction.

China overtook the United States as Africa’s largest trading partner in 2009, and despite changes in Africa’s trading partners, the nature of trade remains largely exploitative. Presently, primary commodities constitute a significant portion of Africa’s exports to China, which has led to increasing trade deficits, reflecting an unchanged reliance despite new international players.

A pressing issue remains that African economies have yet to diversify away from primary exports, a lesson evident in counterexamples like Vietnam, which has leveraged integration into global supply chains to foster economic growth. The path taken by Vietnam starkly contrasts with Africa’s continued dependence on raw materials, indicating a need for policy shifts towards developing downstream industries.

Adopting a new paradigm focused on enhancing domestic value addition can mitigate Africa’s balance of payments challenges while fostering economic sustainability. Such transitions could integrate African nations into emerging green supply chains, fortifying their industrial growth amid a global push for sustainable practices.

This approach benefits not only the continent but also contributes to global efforts towards environmental sustainability through reduced carbon footprints and enhanced economic resilience. Policymakers must strive for long-term strategies that prioritize sustainable growth over short-term resource extraction, enabling Africa to occupy a pivotal role in global value chains.

In summary, Biden’s visit emphasizes the need for Africa to evolve beyond colonial legacies of resource dependency. The Lobito Corridor project exemplifies both opportunities and risks as it underscores the region’s reliance on raw commodity exports. To achieve sustainable economic development, African nations must prioritize domestic value addition and diversify their economies, thereby enhancing their participation in global supply chains while addressing the challenges posed by historical patterns of exploitation.

Original Source: www.cnbcafrica.com