On January 20, 2023, US Treasury Secretary Janet Yellen visited Dakar, Senegal, as part of a three-country African tour, where she outlined a “mutually beneficial” economic strategy for the continent. Speaking at a business incubator, Yellen emphasized that the United States is “all in on Africa, and all in with Africa,” signaling a commitment to deepen ties amid growing competition from China and Russia. She stressed that US engagement is not “transactional” or “short-term,” but rooted in mutual cooperation and long-term ambition, contrasting this approach with the practices of other global powers.
Addressing Global Challenges
Yellen highlighted the severe economic challenges facing Africa, including the fallout from the COVID-19 pandemic and Russia’s invasion of Ukraine. She described Russia’s actions, particularly its “weaponization of food,” as exacerbating food insecurity and causing widespread suffering. “The single best thing we can do to help the global economy is to end Russia’s illegal and unprovoked war in Ukraine,” Yellen stated, attributing global economic headwinds to Russian President Vladimir Putin. Her remarks underscored the Biden administration’s view that Russia’s actions create an unnecessary burden on African economies.
Africa’s Demographic Promise and Debt Concerns
Yellen pointed to Africa’s promising demographics, noting that the continent’s youthful and growing population could drive economic growth if paired with adequate job opportunities and investments. However, she cautioned that African governments need “fiscal space” to make critical public investments, urging the international community, including China, to provide meaningful debt relief. She criticized “shiny deals” that lack transparency, often leaving countries with unsustainable debt and environmental damage—an implicit critique of China’s lending practices in Africa.
US Commitment to Sustainable Partnerships
In contrast to China’s hands-off investment approach, Yellen emphasized that US partnerships prioritize transparency, good governance, accountability, and environmental sustainability. She outlined US plans to collaborate with African nations on climate change, health, and security, while supporting reforms to international institutions and the inclusion of the African Union in the G20. “While our approach may be exacting, we believe it delivers lasting results,” Yellen said, highlighting investments aimed at generating positive economic returns while fostering sustainable debt.
Strategic Context and Upcoming Stops
Yellen’s visit follows the US-Africa Leaders Summit in December 2022, where President Joe Biden pledged a long-term partnership rooted in good governance. The summit, the first since 2014, saw commitments for over $15 billion in trade and investment deals. Yellen’s tour, which includes stops in Zambia and South Africa after Senegal, is part of a broader Biden administration push to strengthen ties with Africa, with planned visits by Biden, Vice President Kamala Harris, and other cabinet members in 2023. The US faces competition from China, a major creditor and trading partner, and Russia, whose Foreign Minister Sergei Lavrov recently toured the continent.
In Dakar, Yellen met with Senegal’s Economy Minister Oulimata Sarr and was scheduled to meet Finance Minister Mamadou Moustapha Ba and President Macky Sall later that day. Her visit underscores the US’s intent to modernize its relationship with Africa, focusing on collaborative growth rather than unilateral aid.
