China Making Inroads In Africa: A Huge Challenge For American Hegemony – OpEd
Africa has been an important trade route, has been a big market of slave trade, and had been a continent of colonization by the Netherlands, Portugal, Spain, the great Britain, and France from the 15th to 20th centuries. It is the second most largest continent with respect to population after Asia and has huge economic potential and deposits of minerals like gold, copper, diamond, cobalt, and oil reserves. Owing to its economic and strategic importance it has become a place of cold war between America and China where China has eyeing on reshaping African order.
China has made inroads in Africa since 2000 and currently funds one in every five projects posing a threat to American hegemony in the region where China has been building dams, generating power, ports, railway networks, roads. Chinese President Xi said last year in a summit that China would launch programs of infrastructure development, agricultural modernization, to support manufacturing, diversifying their economies, and creating Jobs.
China has been pouring money in energy projects in Africa. As per a survey of 2021, around 43 percent of African people have no access to electricity while 90 percent rely on fossil fuels. Capitalizing renewable energy demands external partners. China has been a huge source of energy for Africa and has been providing loans for African states as energy finance. It has been constructing Wind and Solar projects and has been a source of electrification across the continent.
China has been a gigantic source of infrastructure development of Africa. For instance, it has constructed Addis Abba to Djibouti railway line.This Ethiopia-Djibouti railway has reduced travel time from several days to only 10 hours. A project known asNairobi Express in Kenya with a cost of 668 million dollar was also completed through public private partnership.China is also constructing a bridge in Senegal's Fangjuni City, with the 1600 KM route connecting the two sides of the Saloum River.
China has become the largest trade partner with Africa and has been a huge provider of the FDI. Africa's largest trading partner is currently China. Their bilateral trade in 2022 reached to 261 billion USD. It was 282 billion USD last year. In 2022 South Africa, Egypt and Nigeria were the largest trade partners of China. Estamatedly, Until 2021 China had established 25 economic zones in 16 African countries.
In 2022, South Africa, Niger, Egypt, Congo, cote d'ivoire were the top five destinations of Chinese FDI. ItsFDI in minerals and exploration in 2022 was 38.62 billion USD.In 2008 industrial and commercial bank of China (ICBC) purchased 20 percent of standard bank of South Africa.Reuters reports that Chinese investment increased 114 percent last year. It focused on minerals essentials and global energy transitions.It is building ports, hydropower projects, and railway across the African continent through Chinese sovereign loans.
In addition, it invested 7.8 billion USD investment in 2023 in Botswana khoemacaue copper mine, and cobalt and lithium mines in Namibia, Zambia, and Zimbabwe. It has also signed copper and cobalt joint venture agreement with Congo. In addition, China has been investing in a Naval base in Djibouti in the horn of Africa. While,China has eyes to build naval bases and ports in Atlantic Ocean.
The Belt and Road Initiative is primarily focused on Asia and Africa. In August 2022 Chinese official website lists 52 African states to have signed the BRI. China has been investing hugely through its BRI. It has been investing in infrastructure development, and has been financing energy projects. It has built 750 Km east west highway in Algeria. Whereas it has built 6000 MW coal power plant in Hamrawein Egypt. It has also constructed Mamba Nairobi standard Gauge railway. While dozens of projects are continued in Nigeria, Tanzania, Uganda, and other countries.
On the other hand, Africa has been an important continent for the US too. The US has strong hold on the economic and military spheres of this continent. For instance,Lobito corridor is a railway network that btings metals from congo and Zambia to Africa,s Atlantic coast is backed by USA and some European governments.In 2022 America held Africa summit and pledged 55 billion USD for food security, education, and infrastructure development. The US has military bases in Djibouti, Niger, Jenya Egypt, and Cameroon.
America and China both have strategic and economic interests followed by political influence. Both claim the development and prosperity ofAfrican states.China has surpassed US in trade relations with African states. This continent is becoming a new battlefield for international politics led by China and America mostly. This competition is a blessing in disguise for the poor African states too which will help in people,s betterment by creating jobs, bringing economic opportunities, and solving people's needs of energy and infrastructure.