BEIJING, China: Beijing is hosting a major China-Africa forum, marking its largest diplomatic event since the COVID-19 pandemic. With leaders from South Africa, Nigeria, Kenya, and other African nations in attendance, the forum is a crucial opportunity for African countries to seek funding for significant infrastructure projects amidst escalating global power competition.
China’s involvement in Africa has been a double-edged sword. Over the past decade, China has extended billions in loans, aiding in the development of critical infrastructure such as railways, ports, and hydroelectric plants. These investments align with Beijing’s Belt and Road Initiative (BRI), which aims to bolster global trade routes and enhance China’s influence. The BRI has undeniably contributed to Africa’s infrastructure growth, but it has also raised concerns about debt sustainability and environmental impact.
Recent data underscores the scale of China-Africa trade, with bilateral trade reaching $167.8 billion in the first half of this year. Despite this, China’s economic slowdown has led to caution in disbursing further large loans. Analysts note that China’s reluctance to offer debt relief has exacerbated financial strain on some African nations, which struggle to manage loan repayments while cutting back on essential public services.
The situation is particularly dire in Kenya, where a $5 billion railway project, funded by China’s Exim Bank, has faced significant repayment challenges. The project’s second phase, intended to extend the railway to Uganda, remains unfulfilled. Kenya now owes China over $8 billion, contributing to political unrest and protests driven by the country’s debt burden.
In addition to addressing these financial concerns, African leaders are likely to push for more favorable loan terms and increased investment in the forum. The competition for Africa’s rich mineral resources—vital for renewable energy technology—is another pressing issue. The continent’s deposits of manganese, cobalt, nickel, and lithium are crucial for global supply chains, with China playing a dominant role in processing these minerals.
Geopolitical tensions between the U.S. and China further complicate the situation. Washington has criticized China’s approach, accusing it of undermining transparency and pursuing narrow commercial interests. China, however, presents itself as a partner in development, emphasizing mutual benefits rather than charity.
As African nations navigate this complex landscape, they face the challenge of balancing their economic interests with geopolitical pressures. The forum is a pivotal moment for Africa to negotiate better terms and reinforce its position amidst the ongoing global power struggle.
