Yellen has made it clear that helping African countries boost their energy resources would be among her main priorities on the tour. 

A South African Treasury official told Daily Maverick:

“Minister Godongwana does hope to discuss load shedding and benefit from the expertise and experience of the US in addressing the crisis. 

“In particular, the minister intends to discuss South Africa’s ambitions in green hydrogen and large-scale battery storage, and how SA may benefit from technological advances in the US in these areas.”

Yellen, more specifically, said before her tour started that while in Africa she would underscore the importance of accelerating clean energy access, helping countries adapt to a changing climate, promoting just energy transitions and providing greater economic opportunity for communities and businesses. 

“During her engagements, Yellen will urge further action to evolve the multilateral development banks to better address global challenges like climate change, health and pandemics, and conflict and fragility, complementing these institutions’ work on poverty reduction and inclusive and sustainable economic growth,” the US government said. 

Yellen will meet Godongwana and Reserve Bank Governor Lesetja Kganyago on Thursday. The South African Treasury official told Daily Maverick that the Just Energy Transition Partnership (JETP) would feature prominently in the discussions with Yellen. 

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Godongwana would ask Yellen to ensure that the US and other partners of South Africa’s JETP increase the proportion of grants compared to loans in the $8.5-billion they are contributing to the financing of the programme.

“Minister Godongwana, on various international and multilateral platforms including the annual IMF meetings and most recently at the World Economic Forum meetings in Davos, has consistently raised the importance of securing the most optimal and fair mix of climate funding for South Africa, the African continent, and emerging market countries,” the Treasury official said. 

“Without doubt, decarbonisation is the challenge of our generation. In recognition of this, the South African Cabinet has endorsed the national Just Energy Transition Investment Plan, as the basis for our pathway towards a low-carbon and climate-resilient society. 

“The plan captures the scale of the investments required to achieve our climate commitments. It also promotes sustainable development and that the transition is just and does not negatively impact workers and communities. 

“The investment plan identifies that South Africa will need nearly $98-billion over the next decade to enable a just transition. In this context, the $8.5-billion falls far short of the country’s actual requirements. Minister Godongwana will raise the point that the financial support being proposed by JETP and other such initiatives needs to include a significantly larger grant funding component…”

The official said Godongwana would agree with Yellen that multilateral development banks and international financial institutions — such as the World Bank and the International Monetary Fund — must reform their operations so they can play a greater role in helping countries to counter climate change.  

The US government said Yellen would also discuss how the US could work more with African leaders, “to build a stronger and more resilient economy on the continent that benefits their citizens, the US, and the entire world”. 

“That includes by funding high-quality infrastructure investments through the Partnership for Global Infrastructure Investment, preventing and preparing for future pandemics through the new Pandemic Fund, partnering to strengthen democracies and institutions against corruption, and helping African countries address debt vulnerabilities.” 

The SA Treasury official said South Africa was keen to take advantage of any of these opportunities if they served South Africa’s strategic aims.  He noted: “South Africa and the US already had long-standing cooperation in addressing corruption, and cross-border crime, more generally.”

He added that South Africa was keen to learn more from the US about how to fight crime. 

The official said Yellen’s visit was an opportunity to “explore various avenues of deepening the already extensive economic and financial cooperation between the United States and South Africa. 

“From our perspective, we view the US and the Department of Treasury as a valuable partner, and we see this visit as a useful platform to share views on a number of issues of mutual interest and benefit. 

“The US is among South Africa’s top trading partners, and SA has been part of the African Growth and Opportunity Act for over two decades, with tremendous benefits to a number of local companies and exporters. 

“A meeting of this nature is important to maintain the relationship and map out future areas of cooperation, in what is a fast-changing and uncertain global environment.”

The Treasury official said Pretoria would also discuss with the US how to improve the international debt resolution architecture to better assist countries in debt distress.

Godongwana would raise with Yellen South Africa’s concern about the slow progress in implementing the G20/Paris Club Common Framework for helping the most indebted countries.

“The pace of resolutions is not assisting those in need and might deter other countries from applying for debt treatment. South Africa is also of the view that it is critical that [multilateral] development institutions remain engaged in fragile situations and continue supporting long-term sustainable development. 

“On debt sustainability, we are advocating for a fair and transparent response to increased indebtedness of low-income economies, who have been hardest hit by recent economic shocks.” DM