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China’s Growing Economic Influence in Africa: Opportunities and Challenges

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Naveed Hussain

A functional foreign policy is crucial for a superpower as it determines the nation’s interactions and relationships with other countries. A well-crafted foreign policy allows a superpower to effectively pursue its national interests, maintain stability, and influence global affairs. It sets the tone for diplomatic, economic, and military engagements, shaping alliances, trade agreements, and international cooperation. Furthermore, a strong foreign policy can help prevent conflicts, address global challenges such as climate change and security threats, and promote peace and stability worldwide. It also plays a significant role in shaping the superpower’s reputation and standing in the international community, ultimately impacting its ability to lead and exert influence on the global stage.

China’s economic influence in Africa has seen significant expansion and solidification, with the recent China-Africa Summit playing a pivotal role. This summit, officially known as the Forum on China-African Cooperation (FOCAC), held in Beijing, marked the latest iteration of a series of triennial meetings since the forum’s establishment in 2000. The recent summit, themed ‘Joining Hands to Advance Modernisation and Build a High-Level China-Africa Community with a Shared Future,’ brought together 53 heads of state of African countries, focusing on industrialization, agricultural advancements, security, and cooperation regarding China’s Belt and Road Initiative (BRI).

China has been Africa’s largest trading partner for the past 15 years, with bilateral trade reaching $282 billion in 2023. Additionally, China has provided about $134 billion in concessional loans and development cooperation to African countries since the establishment of FOCAC. Chinese companies have generated approximately one million jobs across the continent, demonstrating their substantial investment and impact.

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China’s investments through the BRI have been pivotal, particularly in transport infrastructure and power generation. The nation has played a key role in building and upgrading railways, roads, ports, and power plants across Africa, a feat that cannot be overstated. Notable projects include the Mombasa-Nairobi Standard Gauge Railway, Addis Ababa-Djibouti Railway, Entebbe International Airport, and Doraleh Multipurpose Port in various African countries, facilitating significant growth in trade, business ties, and people-to-people exchanges.

Digital connectivity has also been a focal point of China’s contributions, with Chinese companies establishing about 80% of Africa’s 3G network and 70% of its 4G infrastructure, benefitting approximately 700 million users. This extensive digital infrastructure has been instrumental in enhancing connectivity and communication across the continent.

In the energy sector, China’s involvement has been substantial, with over 1,000 large and small hydropower stations built and more than 100 clean energy projects, including wind, solar, and hydro, developed during the FOCAC era. Given Africa’s severe power crisis, China’s contributions have contributed significantly to bridging the energy gap and fostering development in the region.

Despite the benefits and opportunities presented by Chinese investments, there are critical perspectives on various projects. This underscores the importance of a comprehensive assessment of the long-term viability and impact of these projects. Concerns have been raised regarding the financial and environmental sustainability of some initiatives, and it is crucial to address these. Additionally, the potential for job creation, technology transfer, and productivity increases must be realized to maximize the mutual benefits for both China and African countries.

Overall, China’s expanding economic footprint in Africa presents a mix of opportunities and challenges. While investment and infrastructure development have the potential to drive significant progress and transformation, it is essential to address concerns related to financial sustainability, environmental impact, and the realization of broader socio-economic benefits for the African continent. By balancing these factors and fostering transparent and mutually beneficial collaborations, China and African countries can work towards a shared future built on sustainable and inclusive development.

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