Investment in Africa: The New Resource Race between China, the US and Other Global Powers
In recent years, Africa has become a strategic competition ground for major global powers, including China, United States, European Union, Japan, India e Russia. Each country has adopted different approaches, focusing on specific sectors and seeking to strengthen its influence on the continent. This article explores the dynamics of foreign investment in Africa, analysing different nations' strategies, sectors of interest and implications for the continent's economic development.
China in Africa: A Consolidated Presence
China is undoubtedly the biggest foreign player in Africa, with a presence that stretches back decades. Chinese investments are mainly concentrated on energy, transport e feedstockcrucial sectors for the continent's infrastructure development.
An emblematic example is the Nairobi Expressway in Kenya, a project completed in just two years thanks to Chinese support. This project not only improved urban mobility, but also demonstrated the efficiency and speed of Chinese investment.
Moreover, China dominates trade with Africa, with bilateral trade reaching a record of 254 billion by 2022. This success is the result of a well-structured strategy, including the construction of infrastructure, the extraction of natural resources and the creation of mutually beneficial business partnerships.
The United States: Reclaiming Land in Africa
As China consolidates its presence, the United States are stepping up their efforts to catch up. US Treasury Secretary, Janet Yellen, visited several African countries, including Senegal, Zambia and South Africa, to strengthen economic ties and announce billion-dollar investments.
US investments focus on strategic sectors such as technology, infrastructure e food and beverage industry. For example, the United States is promoting renewable energy and digitisation projects with the aim of creating a lasting and sustainable impact.
However, despite these efforts, the US presence in Africa remains smaller than that of China. To compete effectively, the US will have to adopt a more aggressive and diversified strategy, including not only economic investments, but also political and cultural cooperation.
European Union: Sustainability and Cooperation
L'European Union (EU) is another key player in investments in Africa, with a focus on infrastructure, energy e sustainable development. The EU launched the initiative "Africa-Europe Alliancewhich aims to strengthen economic cooperation and create jobs on the continent.
Through this initiative, the EU has allocated billions of euros for development projects and humanitarian aid, with the aim of promoting inclusive and sustainable growth. For example, the EU is funding renewable energy projects in countries such as Kenya and Morocco, contributing to the continent's energy transition.
Japan: Humanitarian and Infrastructure Investments
The Japan increased its investments in Africa through the Tokyo International Conference on African Development (TICAD). The country focuses on sectors such as education, healthcare e infrastructurefinancing the construction of hospitals and schools in various African countries.
In addition, Japan promotes human capacity building through training programmes and cultural exchanges. These investments not only contribute to economic development, but also strengthen diplomatic ties between Japan and African countries.
India: Agriculture and Technology
L'India strengthened its presence in Africa with investments in areas such as agriculture, information technology and renewable energies. Through the India-Africa Forumthe country promotes bilateral cooperation and offers credit lines and technical assistance to various African countries.
For example, India is funding irrigation and agricultural modernisation projects in countries such as Ethiopia and Mozambique, contributing to food security and rural development.
Russia: Energy and Defence
La Russia sought to expand its influence in Africa through investments in sectors such as energy, natural resources e defence. The country provides military assistance and training to various African countries, as well as signing cooperation agreements for the development of energy and mining projects.
For example, Russia has formed partnerships with countries such as Sudan and the Central African Republic for the exploitation of natural resources and the modernisation of energy infrastructure.
Implications for Africa: Opportunities and Challenges
While foreign investments offer significant opportunities for Africa's economic development, they also present significant challenges. Many of these investments, although presented as development opportunities, can create economic dependencies and perpetuate the inequalities.
For example, loans and trade agreements often favour foreign investors at the expense of local economies. Moreover, competition between global powers can lead to political tensions and instability, threatening the sovereignty of African countries.
Navigating Global Interests
Africa, with its immense resources and growth potential, has become the new battleground for global powers. The real challenge for African countries will be to navigating between these conflicting intereststrying to benefit from foreign investment without falling into the trap of economic dependency and neo-colonisation.
To achieve this goal, African leaders will have to adopt economic policies and negotiation strategies that ensure a balance between domestic development and international cooperation. Only then will Africa be able to realise its full potential and build a prosperous and sustainable future.
Source:
- UNCTAD - World Investment Report 2022
- Trend Research & Advisory
- Johns Hopkins School
- US Department of the Treasury
- US Institute of Peace
- PROSPER AFRICA
- EU Commission
- AFRICA UNION
- Adf Magazine
- Institute for the Study of War
- ATLANTIC COUNCIL
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