Edward Aitken | Africa Fellow
Plenary Session of the 11th BRICS Summit. Image sourced from Alan Santos via Wikimedia Commons.
In September China’s President Xi Jinping, pledged USD$50.7 billion in financing to African countries over the next three years. The announcement came at the ninth Forum on China-Africa Cooperation (FOCAC) held in China. FOCAC has swiftly become the leading "Africa plus one" summit with China's influence on the Continent only set to grow. The success at the recent FOCAC again shows how China's message and method on investment in Africa is far better received than similar approaches from the US and other international lenders.
The FOCAC success story
The three-day summit exemplified the success in Africa-China relations. There was heavy attendance from African leaders with 51 Heads of State attending – the greatest rate of attendance for African heads of State at an "Africa plus one" summit to date. Beyond the financial pledge, President Xi further unveiled a ten-point action plan that will guide China's relationship with the Continent through 2027.
The success of FOCAC comes as no surprise to observers of the Continent. China is now Africa's biggest trading partner. It receives 20 per cent of the continent’s imports and provides 16 per cent of Africa’s total imports. China's renewed commitment to Africa comes at an important time. China's economy seems to be slowing down but investment in African development does not. Rather, there appears a shift from greater investment in big-ticket infrastructure projects for individual sovereign borrowers toward smaller-scale projects in areas of greater social and environmental impacts. This commitment to long-term African development is crucial to China remaining ahead of the United States in the great power contest for regional influence.
Struggling US position
China's growth in Africa comes at a time of diminishing US regional influence, both militarily and economically. The United States Africa Command unit (AFRICOM) still operates in 26 of Africa's 54 countries but have recently been ordered out of Chad and Niger where over 1,100 military personnel were operating.
Economically, the US has lost touch with the African reality on the ground, rendering its engagement strategy unfit for purpose. While the US does provide access to finance for African countries, it often comes with strings attached. Such strings may restrict the use of finance to specific projects or geographical areas, or demand adherence to standards, particularly pertaining to human rights. While good in theory, the US approach to Africa is embedded in a history of extraction and has rarely seen long-term benefits for African countries.
The US realises the need to stay present in Africa and to access critical resources such as lithium and cobalt for the energy transition. Recently, it announced an investment to revive the Lobito Corridor, a railway line linking critical mineral mines in Zambia and the Democratic Republic of the Congo to the port of Lobito in Angola. However, the investment has already been criticised as a minerals extraction project that yet again fails to generate long-term benefits for the surrounding countries.
China's winning position
Chinese investment is widely viewed by African states as the more attractive option for a few key reasons. First, in direct contrast to extractive US investments, China’s recent investments focus on attempting to build local value-added chains. China is already restricting the export of raw lithium in Zimbabwe in favour of processing it locally, albeit in Chinese-built refineries. Additionally, Chinese investments in green energy and infrastructure align with the development strategies of African countries, a far cry from the structural adjustment programs led by the World Bank in the 1980's. More in touch with the economic reality of African countries, Chinese investment is filling the financing gap disregarded by Western countries and institutions who often impose conditions for access to finance. The backlash in Kenya to the IMF-backed Finance Bill in June reinforces the need for external investors to understand and prioritise local realities.
Moreover, Chinese investments are perceived as harbouring greater respect for African sovereignty, a view that is helped by the US and West's legacy of extraction in Africa. Finally, China's strategy is much more realistic, as it seems to understand geographical African investment priorities. For example, China committed to a USD$49 million loan for a solar farm in Burkina Faso in one of the world's least electrified countries. Overall, Chinese investment provides tangible benefits to people far quicker than any alternative.
The road ahead for Africa
While investment is beneficial, and the message is strong, African countries should still tread with caution. A slowing Chinese economy has Chinese investors wary of more big-ticket infrastructure investments and some countries are still waiting on funds promised at previous FOCACs. In Africa, manufacturing capacity and levels of industrialisation remain low compared to other regions, and while China is taking steps to bolster local supply chains, clear power imbalances between Chinese companies and African workers remain. Increased transparency and accountability are needed between Africa and China, and power imbalances seen on the ground in Africa should be promptly addressed.
Africans should have a greater say in where and how development finance is used. It allows for a path toward greater sovereignty and associated benefits to African countries in both the short and long-term. China already understands this message, but the US and other international actors seeking influence in Africa are yet to shift their approaches. International actors looking for influence in Africa must revisit their strategies for engagement to consider realities faced by Africans now and into the future.
Edward Aitken is the Africa Fellow for Young Australians in International Affairs. He holds a Bachelor of Laws and a Bachelor of Arts (majoring in Politics and Journalism) from the University of Notre Dame Fremantle. Admitted as a lawyer in 2024, he is currently working at an international commercial law firm in Melbourne.
Edward has a passion for learning about cultures and stories emanating from Africa. His engagement with the continent stemmed from travelling in Eastern and Southern Africa for six months in 2022 and 2023. He hopes to a establish a career in the continent with a keen interest on renewable energy and sustainable development.
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