President Biden’s December trip to Angola focused on the Lobito Corridor, a railway that illustrates ongoing colonial legacies in Africa centered on resource extraction. The high commodity dependency of African economies hinders development and integration into global supply chains. The trip aimed to secure vital minerals for green technology and counter China’s growing influence in the region, while the need for a shift toward sustainable economic practices remains critical.
President Joe Biden’s recent trip to Angola marked his first visit to Sub-Saharan Africa as a sitting US president and is likely his final international excursion in this role. This visit highlighted the entrenched colonial development paradigm focused on resource extraction that has historically hindered Africa’s progress. The spotlight during Biden’s trip was on the Lobito Corridor project, a transnational railway initiative deemed essential for exporting raw materials from Central Africa through Angola’s port city of Lobito.
While the Lobito Corridor represents a new US engagement model with Africa, it continues the problematic focus on resource extraction and commodity dependence. Africa remains highly dependent on commodity exports, comprising approximately 90% of total merchandise according to UNCTAD. This dependency impedes economic growth and integration into global supply chains, exacerbating issues such as unemployment and climate-induced migration pressures.
The legacy of colonial-era infrastructure reinforces this extraction-focused model, as transport routes in Africa were established primarily to facilitate resource extraction for European markets. Consequently, nations rich in resources have been transformed into mere suppliers of raw materials while largely missing out on industrial and economic development. This has perpetuated a cycle of poverty and dependence on aid within these regions.
The 800-mile Lobito Corridor will interlink Zambia’s Copperbelt along with copper, lithium, and cobalt mines in the Democratic Republic of Congo to Lobito. Supported by the US and European Union, the railway aims to expedite transportation of pivotal minerals necessary for the green transition, significantly increasing the efficiency of the supply chain amid rising geopolitical tensions.
Biden’s trip had a pronounced geopolitical significance, aiming to secure minerals essential for green technologies and to counter China’s expanding influence in Africa. China has become a prominent player in the natural resources market, surpassing the US as Africa’s primary trading partner since 2009. Angola, heavily reliant on its oil sector, has seen a decline in US trade relations, turning increasingly towards China.
Despite Africa’s shifting trade partnerships, the fundamental trade dynamics remain unchanged, with primary commodities dominating exports to partners like China. The region has experienced growing trade deficits with China, which totaled an estimated $45.9 billion in 2022 and reached a peak of $63 billion in 2023. This raises concerns regarding the ongoing impact of the colonial resource extraction model.
Challenges in enhancing African exports derive from historical biases that have shaped trade relations with both China and the US. As a result, intra-African trade remains low, contributing to the continent’s vulnerabilities and structural trade imbalances. AMultiple trade initiatives have failed to significantly enhance US-Africa trade relations, which accounted for less than 1% of total US trade in 2023, in stark contrast to more successful partnerships elsewhere.
In comparison, Vietnam has not only integrated into global supply chains but also witnessed substantial economic growth and poverty reduction, primarily by leveraging its capabilities in producing high-value goods, unlike many African nations which continue to rely on low-value exports. The enduring colonial extraction model has stifled Africa’s potential for growth and economic stability.
The impending global shift toward net-zero initiatives presents an opportunity to redefine Africa’s development approach by promoting downstream industries and adding value to its natural resources. By doing so, Africa could enhance its position within global supply chains, benefiting from technological advancements while mitigating negative economic impacts linked to its current trade structures.
This transition to localized processing could also contribute positively to the environment by reducing carbon footprints associated with the shipping of raw materials. It aligns with the broader goals of enhancing African trade, fostering intra-African commerce, and supporting the African Continental Free Trade Area.
President Biden’s Angola trip underscores the need for Africa to evolve beyond colonial-era extraction practices by focusing on sustainable economic development. The Lobito Corridor exemplifies both the challenges of commodity dependence and the potential benefits of redefining Africa’s integration into global supply chains. By investing in value addition and local processing, Africa has a unique chance to enhance its economic resilience and stimulate intra-African trade.
Original Source: www.cnbcafrica.com
