There is an urgent need for strategic calibration in the partnership, especially on the part of Africa. This move could contribute to achieving the mutual progress proposed by China. For instance, there is hardly a coherent documented approach to how Africa and African countries will engage China. This gap continues to weaken the voice and bargaining power of the continent. The proposal that Africa should begin to negotiate with China as a bloc with a collective vision and strategic approach should be considered by countries. In addition, investment in value chains should be sought.
The Chinese Foreign Minister, Wang Yi, will be visiting African countries from the 5th to the 11th of January, according to official sources from the Chinese government. During his tour, he will visit four African countries, including Namibia, the Democratic Republic of Congo and Nigeria. The trip is believed to further support President Xi Jinping’s promise of elevated strategic relationships between China and all African countries. This is to deepen cooperation, advance the so-called win-win partnership and implement some of the pledges that were made during the Forum on China–Africa Cooperation (FOCAC) last year.
|
|
Last September, Nigeria’s President Bola Ahmed Tinubu met with the Chinese President in Beijing during a state visit. Both leaders are committed to deepening mutual trust and they firmly support each other in promoting integrated development in infrastructure, energy, and minerals.
Chinese Economic Ties With Africa On a Steady Growth
|
|
|
|---|
The volume of trade between China and Africa continues to rise. In 2023, it reportedly reached $282.1 billion, making it Africa’s largest trading partner — a position China has maintained for fifteen consecutive years. China is Africa’s largest creditor, providing new financing sources to African countries. Chinese lenders account for 12 per cent of the continent’s private and public external debt. As of 2022, African countries owed China around $80 billion, with Angola, Kenya, Zambia and Nigeria accounting for 50 per cent of this. Chinese Foreign Direct Investment (FDI) has increased significantly over the last two decades. In 2022, the FDI flow from China to Africa rose to $5 billion, representing 4.4 per cent of the region’s total FDI. In 2024, the Chinese President pledged additional funding of $51 billion, including $10 billion in development assistance to support African projects in infrastructure, agriculture, industry, trade and investment.
Critics insist that China’s renewed push is a debt-trap diplomacy designed to shove African countries into debt to gain leverage over them. Such speculations call for improved scrutiny of proposals coming from China.
Tour To Africa Targeting Countries Rich in Natural Resources
The destination of the Chinese Foreign Minister during the tour to Africa will be countries that are rich in natural resources, which is not surprising. It is not a revelation that the Chinese appetite for natural resources is the most important factor shaping the push to consolidate its relationship with African countries. Namibia is rich in crude oil and has become the new oil exploration hotspot. With several significant oil discoveries made in the country, projected as an estimated 11 billion barrels of offshore oil resources, Namibia may be on its way to becoming Africa’s fifth largest producer of crude oil. It also has significant deposits of lithium, with a Chinese company, Xinfeng, said to be investing in this.
Democratic Republic of Congo (DRC) has the world’s largest deposit of cobalt (about 68 per cent) – one of the critical metals used in producing electric vehicles, placing that country in a critical position for the energy transition. Lithium reserves in DRC are attracting interest, making it likely to become a top global supplier. Chad’s natural resource endowment includes petroleum, gold, silver and uranium, while Nigeria remains the largest producer of crude oil in Africa. Approximately 8 per cent of Africa’s mining output goes to China. For instance, in 2020, China imported a third of Africa’s minerals and metals worth about $16.6 billion. China is a dominant player in DRC’s mining sector, investing in 15 out of 17 cobalt mining operations in that country.
Resource-linked Financing Should Not Lead To Debt-trap Diplomacy
China continues to promise to jointly promote modernisation in Africa through a just and equitable partnership that provides a win-win cooperation and common development with mutual respect and non-interference. Beijing’s carefully crafted diplomatic slogan of a benevolent China and seeking to veil the rush to access Africa’s natural resources should be interrogated. In truth, China has helped provide many African countries access to capital through a resource-linked financing model that provides long-term project financing in exchange for or collateralised by future income streams from commodities. The approach is not likely to change soon as it fits into China’s economic and geo-political ambition of becoming a major player in a multipolar world. Critics insist that China’s renewed push is a debt-trap diplomacy designed to shove African countries into debt to gain leverage over them. Such speculations call for improved scrutiny of proposals coming from China.
The visit of the Chinese Foreign Minister and the renewed push for alliance from China offers another opportunity for African nations to reposition for a more impactful engagement and value-added partnership.
Financing infrastructure remains a huge challenge on the African continent. The African Development Bank (AfDB) estimates that between $130 billion and $170 billion is needed each year and there is a gap of between $68 billion and $108 billion. As the largest supplier of infrastructural finance, China’s infrastructural investment is beneficial in bridging the infrastructural gap on the continent.
Africa Should Speak As a Block and Seek Investment in Value Chains
There is an urgent need for strategic calibration in the partnership, especially on the part of Africa. This move could contribute to achieving the mutual progress proposed by China. For instance, there is hardly a coherent documented approach to how Africa and African countries will engage China. This gap continues to weaken the voice and bargaining power of the continent. The proposal that Africa should begin to negotiate with China as a bloc with a collective vision and strategic approach should be considered by countries. In addition, investment in value chains should be sought. The visit of the Chinese Foreign Minister and the renewed push for alliance from China offers another opportunity for African nations to reposition for a more impactful engagement and value-added partnership.
Uche Igwe is a scholar and senior political economy analyst. He can be reached on [email protected]
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
