Inside Africa: The US-China Competition for Africa

PhotographerOlympus / Matt Anderson Photography

African is becoming the region to watch as it quickly urbanizes and experiences massive population growth. More and more people are moving away from the rural areas Westerns picture when imagining Africa and more into cities like Lagos, Nigeria, with its busy highways and skyscrapers. The entire continent is in a transitional phase bringing more technology and more opportunities for economic growth that are drawing the attention of some of the major global powers such as China and the United States. Africa is seen as one of the final frontiers of the industrial revolution that could promote new job opportunities with increased access to telecommunications and greater trade with improved infrastructure. Though there is still a ways to go in many regions, the progress and potential African countries have been showing is attracting much needed investors to really develop the necessary infrastructure to keep the progress going forward. 

Infrastructure will play a key role in Africa’s future development. As previously reported in Inside Africa, the continent, led by the African Union, is working to implement a regional trade agreement which would include almost every country in Africa. The hope for the African Continental Free Trade Area (AfCFTA) is that it will serve as an economic booster for the developing region and promote a more stable economy less reliant on outside markets, though infrastructure will have to be improved in many regions in order to allow for the more free trade of goods across borders. Some have criticized the trade agreement that not all countries are prepared because of inadequate infrastructure, though others suggest that because of this push, there could be more motivation to invest in this area. 

Investing in infrastructure, telecommunications, railroads, hospitals, and other kinds of projects takes capital and manpower, both of which many countries struggle to get in order to move forward with these projects. Seeing the potential of the region in terms of its projected economic growth, other countries, especially China, see Africa as a solid bet for investment. Daan Roggeveen, the founder of MORE Architecture and author of many works on urbanization in China and Africa, said, “Right now you could say that any big project in African cities that is higher than three floors or roads that are longer than three kilometers are most likely being built and engineered by the Chinese. It is ubiquitous.” And it is true. Roads through Sierra Leone, railroads in Kenya, and an airport in Ethiopia are all projects backed by China. The country’s Belt and Road Initiative, announced in 2013, marked the beginning of China’s official commitment to these projects in Africa. It dubbed China as a lender, project developer, construction company, and credit insurance with an interest in Africa’s urbanization. 

Maybe the Chinese see Africa as what it used to be: a region that was also struggling with economic growth before developing its own infrastructure. Three decades ago, China made up just a tiny percentage of the world’s gross domestic product, though now the country’s GDP has increased astronomically and is ranked second in the world. Africa, with the right investment, could see a similar growth. On the other hand, it is possible that Africa is still a prime spot to find natural resources like oil, cotton, and different minerals. A more economically and politically stable Africa would be beneficial to China if it wanted to access those resources. 

China also might be looking to gain more political support from a region with more than fifty votes in the United Nations, especially since it is not the most popular country in recent years. Cooperation on foreign policy is just as important as their economic cooperation. China may be Africa’s biggest trade partner, an important fact considering how much the region relies on imports of manufactured goods and essential medicines, but together, China and Africa could be a global force. In 1971, more than half of Africa’s countries voted against Taiwan joining the UN. On the flip side, these countries also supported China’s position with the organization. China is seeing support from its African partners where others in the global community find fault.  

The United States has also shown an interest in Africa’s development, though it seems to largely be working as a counter to whatever China has to offer. In June 2019, the United States International Development Finance Corporation (DFC) announced that it would double the money it had available for investment in low- and middle-income countries, many being in Africa. The $60 billion made available in this decision would be an “alternative” to China’s investment model by making equity investments on top of the Overseas Private Investment Corporation (OPIC) loans, political risk insurance, and investment funds. The US criticizes China’s involvement, calling it a “debt trap” for the countries China aimed to invest. 

While the US involvement in Africa mostly revolves around its competition with China, there may be some merit to its argument. Tensions between China and Nigeria are on the rise as debates on whether Nigeria could lose its sovereignty to China over debt. At this time, Nigeria’s transport minister Rotimi Amaechi is trying to smooth things over by clarifying that a clause in loan agreements is saying that, should Nigeria default on its loans, China has the right to recover their invested money, though this is met with criticism that China could potentially have too much power in the region and could stall certain projects. Kenya and Ethiopia are also reportedly dealing with debt issues with China.  

As the US and China make Africa their own battleground, providing investment opportunities to a region that certainly would benefit from them, Africa’s own perspective often gets lost in the conversations. It is easy to forget that Africa is not a passive actor in these situations. The region could even benefit from the competition and be able to shop around for the best deal being offered by the two global powers. Gyude Moore, a senior policy fellow with the Center of Global Development, spoke on the China in Africa Podcast, and said that it is important to note that African countries are “completely distinct and separate from whatever China wants and what the US wants.” In order to best utilize its relationship with both the US and China, will have to determine what it needs from them and how they can support their needs.