President Joe Biden’s visit to Angola highlights the ongoing issues of colonial legacies in Africa, particularly the dependence on resource extraction. The Lobito Corridor project, while a symbol of renewed U.S. engagement, risks entrenching this volatile model. To achieve sustainable economic development, Africa must prioritize building downstream industries and increasing domestic value addition, moving beyond mere commodity dependence.
President Joe Biden’s December visit to Angola marked his first official trip to Sub-Saharan Africa and potentially his last as president. This journey highlighted the persistent colonial development paradigm that prioritizes resource extraction in Africa. A significant focus of his visit was the Lobito Corridor—a transnational railway initiative designed to expedite the export of critical minerals from Africa, particularly from the Central African ‘Copperbelt’ to the port of Lobito in Angola.
While the Lobito Corridor symbolizes renewed U.S. engagement with Africa, it perpetuates a volatile model centered on commodity dependence. Africa’s remarkable reliance on commodities—where 90% of merchandise exports are derived from commodity exports—has historically hindered economic growth and risks further entrenching dependence on global supply chains dominated by developed nations.
The infrastructure created during colonial rule predominantly prioritized resource extraction for export rather than fostering sustainable development. This legacy manifests in mining-related transport corridors connecting mines to ports to facilitate the export of resources. Consequently, many Global South nations remain mired in a cycle of poverty, reliant on commodities while lacking the capability to develop higher-value industries.
Biden’s trip served a geopolitical purpose as well, aiming to secure access to vital minerals for a transitioning global economy and counter China’s influence in Africa. As China has emerged as Africa’s largest trading partner, U.S. trade with the continent has significantly diminished, leading to increased reliance on Asia for trade and raw materials.
Despite Africa engaging with various global partners, the patterns of trade have not transformed significantly. The continent continues to export primarily raw materials, and substantial trade deficits with China highlight ongoing economic vulnerabilities. Accusations of lagging trade practices persist, with discussions on how to encourage a more balanced trade relationship illuminating the structural challenges posed by resource-dependence.
The historical reliance on raw commodity exports hinders Africa’s growth in high-value global supply chains. Countries like Vietnam, which are not resource-rich, have effectively diversified their economies, leveraging foreign investments to position themselves within high-value markets. Such dynamics underscore the need for Africa to transition away from traditional extraction models and foster downstream industries to improve economic stability.
To break free from the colonial model of resource extraction, there is an urgent need for developing domestic value chains in Africa. This shift would not only enhance the region’s integration into green global supply chains but also reduce negative economic externalities. A demand exists globally to optimize resource processing within Africa to maximize developmental impact and mitigate growth-related adverse effects.
With the Lobito Corridor project offering potential benefits, it is paramount that African policymakers prioritize sustainable development above short-term resource gains. To overcome the historical legacy of colonialism, Africa must evolve into a competitive player in global value chains, fostering intra-African trade and economic collaboration.
Biden’s trip to Africa underscores the continuing legacy of colonial resource extraction paradigms that undermine meaningful development. The Lobito Corridor project exemplifies both progress and challenges, as the continent grapples with historical trade relationships and dependency on commodity exports. The pathway to sustainable growth in Africa lies in enhancing domestic value addition and promoting intraregional trade, moving away from dependency on raw material exports towards a more equitable economic model.
Original Source: www.cnbcafrica.com
