Yellen support for just energy transition

US Treasury secretary Janet Yellen had a broad taste of SA this week: from loadshedding and optimism to energy transition delays.

“We did experience some load-shedding ... in various places, including hotels,” she said on Friday. However, there were many opportunities in SA, Yellen said, singling out Ford in Pretoria as an example of a business determined to grow.

“The Ford plant ... has just invested another billion dollars to expand production of the Ford Ranger ... so I think I’ve heard real enthusiasm and optimism.”

The energy crisis and slow plans to transition to a low-carbon economy dominated her meetings, with her tone one of irritation. She said SA needed action soon to keep up Just energy Transition Partnership (JETP) momentum. She visited Emalahleni in Mpumalanga, the focal point of the coal belt, where US entities support reskilling initiatives to help mineworkers transition.

“We must demonstrate quickly that these coal communities, already struggling with unemployment, poverty and the health impacts of coal, will not be left behind in the context of an energy shift that benefits other regions. In recognition of this importance, [US] President [Joe] Biden went beyond our initial JETP commitment to pledge an additional $45m (about R773.5m), focused specifically on the ‘just’ element of the transition ... though more will be needed.”

Yellen’s trip took place in the same week as that of Russian foreign minister Sergey Lavrov, who also visited Pretoria.

It is seen as a precursor to Biden’s Africa trip later this year amid a scramble for Africa’s attention as the world’s superpowers — namely China, Russia and the US look to tighten relations on the continent.