How China’s Investment in Africa Arrived

You probably don’t mind the device you’re reading this article on, as long as it looks good and continues to work.

But the elements that have power and run it is the subject of a growing struggle between the two largest economies in the world – the US and China – in African countries in the eye of the storm.

The African continent is rich in critical minerals and metals – such as lithium, rare earths, cobalt and tungsten – that are essential to making and running our personal tech. Such materials are also important for everything from electric cars, to AI data centers, and weapons systems.

China has been around for a long time greatest player In the global market for critical minerals and metals. It has significant reserves at home, and access to resources from outside the country to major investments in foreign mining operations – especially in Africa.

Beijing has also established a dominant position when it comes to processing global supplies, and it has targeted the US with the threat of curbing exports. That lends more urgency to us to act to increase access to critical minerals and metals, with African reserves seen as key to that mission.

It is for this reason that the US has actually quietly overtaken China as the largest foreign investor in Africa, according to the latest annual figures. The US will invest $7.8bn (£6bn) across Africa in 2023, according to China research at Johns Hopkins University, which has access to official data.

This marks the first time since 2012 that the US has regained the lead.

This American investment is led by a government agency called the US International Development Finance Corporation (DFC). It is set in 2019 during President Trump’s first term in office, and it is not ashamed to say that its mission is to bring down Beijing. DFC says on its website that it was established as a means of “Dealing with China’s presence in strategic regions”.

What does this investment mean for African firms and beneficiary countries?

Last year metals mining company DWANDAN Fix a $3.9M Grant From DFC to help develop three mines owned by the country, which produce tin, tantalum and tungsten.

“The US government is very supportive of what we’re doing, looking at bringing that supply chain directly to the United States,” said Chairman McCormick.

Trinidad now ships tungsten from Rwanda to a processing plant in Pennsylvania. It also landed a deal to send Rwandan Tata to a smelter in Pennsylvania.

Mr. McCormick denied that funding from Washington influenced the company’s decision to ship supplies to the US.

“It wasn’t the US government that said to the CEO and I ‘can you get tungsten in America?’ This is our decision as commercial market players. “

Trinidad is 5% owned by the Rwandan Government, and critical minerals Minerals Investment First Techmet is also a shareholder.

Mr. McCormick added that while mining operations in Africa may employ unskilled workers in dangerous conditions, Trinidad adheres to the highest standards.

“We show that there is a way to produce these materials in a conflict free, child labor free way, and respects taxes and the environment, creating jobs and opportunities”.

SepO Haimambo is an economist at Banking Group FNB Namibia. He said that African countries should be motivated to stand up for their national interests when negotiating with our entities, and should not expect any favors.

“In Hope [the Americans] to show and negotiate and propose clauses that are in the best interest of Africa in Africa which is unrealistic, “as well as in Africa.” So Africa needs to prepare itself for these engagements and be clear about what [outcomes] want it. “

Ms Haimambo added that African governments should expand to simple cash for mineral deals. “There is an opportunity to look at different frameworks instead,” he said.

“You can look at production sharing agreements, joint venture models, participation in local justice. Finally, it is possible to invest in developing countries such as education, health care.”

He also wants to see more processing of minerals and metals produced in Africa, instead of just exporting the ores abroad, because it is more profitable financially.

A US company that is building critical Mererals and Metals Refineries in Africa is Reemelecation Africa, a subsidiary of American sources. Reementer in Africa construction of the refinery in the Gauteng province of South Africa.

“It is very gratifying to know that we can work together with African countries to put the refinements of the projects, so that you can get more value, and lay the foundation of the zone,” said Ben Kincaid, who repairs a single value, “said Ben Kincaid, who fixes a single value,

However, Prof Lee Brantetter, an international economist at Carnegie Mellon University in Pittsburgh, says the US is getting a trick.

He said that Trump’s trade policies with African countries have fueled our enthusiasm for our continent at a time when some of the Sub-Saharan African countries are not benefiting the local population.

“If the current administration does not resolve the tariffs in many African countries, there will be no ability to benefit from African projects,” said Prof Brainstter.

Going forward, the US and China may also see more competition in Africa from others, added MS Haimambo. He points to increased interest in the continent of countries such as Brazil, India and Japan.