China’s President Xi Jinping and African leaders gathered in Beijing for a summit that aimed to strengthen their shared future, despite challenges such as debt burdens, trade imbalances, and geopolitical rivalries. The three-yearly summit brought together leaders from 50 African countries to discuss China-Africa relations until 2027.
In his opening speech, President Xi Jinping pledged Rmb360bn ($50bn) in financial support over the next three years, including loans, aid, and investments from Chinese corporations. He also offered assistance for African countries to issue renminbi-denominated “panda bonds” in China’s onshore markets. Additionally, Xi outlined a 10-point plan covering trade, agriculture, security, governance, and military training.
China, Africa’s largest trading partner, seeks to secure lucrative mining deals and export opportunities to support its economy while fending off geopolitical rivals, notably the US. However, African leaders want China to address the trade imbalance that allows China to consume raw materials from Africa while exporting manufactured goods that undercut domestic production. The trade surplus between China and Africa stands at about $64bn.
African leaders are looking to China for infrastructure finance, energy projects, transportation, and industrialization initiatives. China approved loans totaling $4.61bn for eight African countries and two regional financial institutions in 2023. However, this figure is lower than the peak of Chinese loans during the Belt and Road Initiative, which totaled $182.28bn from 2000 to 2023.
Debt sustainability is a key concern for African countries, with many facing financial strains. China is exploring smaller government lending and greater involvement by state-owned enterprises or private sector investors to avoid exacerbating debt issues. Several African countries, including Zambia, Ghana, and Ethiopia, have faced debt defaults or strains, with Angola owing China about $17bn.
Despite concerns over debt and project viability, African leaders are calling for more Chinese investment. In Kenya, the Chinese-funded standard gauge railway has faced criticism, but President William Ruto highlighted the expansion of the railway and other projects as priorities for engagement with China. South Africa’s President Cyril Ramaphosa emphasized the need for more sustainable manufacturing, job-creating investments, and the narrowing of the trade deficit.
Overall, the China-Africa summit showcased a mix of cooperation, challenges, and opportunities for both parties. As they navigate debt issues, trade imbalances, and geopolitical tensions, China and African countries are seeking to strengthen their ties and build a mutually beneficial relationship for the future. The competition for access to critical minerals in Africa is heating up as the US and other western countries are ramping up their efforts to court African leaders. One such example is the renovated railway line that will compete with a revamped US-backed railway running from the central African copper belt to Angola’s Atlantic coast.
This move signals a shift in strategy for western nations, who are now looking to challenge China’s dominance in the region. For years, China has held a strong grip on African resources, thanks in part to its strong people-to-people ties and its narrative of being a “developing country” assisting its partners in the global south with industrialization.
Jana de Kluiver, a research officer at the Institute for Security Studies in Pretoria, South Africa, notes that the US strategy in Africa appears to be more of an anti-China policy than a true Africa policy. This suggests that western countries are increasingly viewing Africa as a battleground for influence, with access to critical minerals being a key point of contention.
As countries like the US and China vie for control over Africa’s resources, it raises important questions about the future of the continent. Will African leaders be swayed by the promise of infrastructure development and economic growth, or will they prioritize their own interests and development goals?
The competition for access to critical minerals in Africa is only likely to intensify in the coming years, as more countries seek to secure their share of the continent’s rich resources. It remains to be seen how this competition will play out and what impact it will have on Africa’s development trajectory.
In conclusion, the race for access to critical minerals in Africa is a complex and multifaceted issue that underscores the shifting dynamics of global power. As western countries like the US seek to challenge China’s dominance in the region, African leaders will need to carefully navigate these competing interests to ensure that the continent’s resources are used for the benefit of its people.
