U.S. struggles to lure African nations over from China
Countries that benefit from Beijing investment wary of Washington's $55bn pledge
KAMPALA, Uganda -- The U.S. pledge last week of $55 billion in development aid to Africa over the next three years surpasses similar pledges in recent years of $40 billion from China and $12.5 billion from Russia.
Last week's U.S.-Africa Leaders Summit in Washington came eight years after then-President Barack Obama hosted the event for the first time, and was intended to demonstrate America's re-engagement with the continent following a period of neglect under Obama's successor, Donald Trump.
In contrast to China and Russia, the U.S. is likely to have included its payments to the World Bank and IMF as part of this $55 billion figure. Many African governments are concerned about these organizations' performance, particularly their track record of providing and facilitating major African infrastructure and industrialization projects.
As China has been paying close attention to the continent, it may take time for the U.S. -- known for attaching human rights conditions to its deals -- to catch up.
For Shingirayi Kondongwe, an African Union Commission scholar from Zimbabwe, "the idea to lure African leaders away from China might not be practical at all," given the sheer size of the Chinese infrastructure investments across the continent.
"Africa needs to keep its options open," he added, pointing out the continent's attractiveness in terms of its young population and vast mineral resources.
The Chinese fund or build more than half of the continent's existing infrastructure projects.
Between 2013 and 2020, the U.S. invested $2.1 billion in the region, about half that of China, according to Statista. According to official figures, between 2000 and 2019, Beijing transferred $153 billion to African public institutions, with the majority of the funds going to infrastructure development in countries that have signed on to the Belt and Road Initiative.
Before the summit, Beijing came under fire from Western lawmakers for what they see as the country's passivity about the heavy debt loads held by several African countries, as well as for siding with authoritarian leaders.
"Chinese-built hospitals, roads, stadiums and airports are everywhere in Africa," rebuffed Beijing's envoy to Washington, citing research that revealed African countries owed Western institutions three times as much.
"China has filled the gap left by others," said Emeka Umejei, a China expert from the American University of Nigeria. "The increase in partnership with the United States is a step in the right direction, but there must be a transfer of skills and technology by the U.S. companies to differ from China."
At the summit, Biden embraced investment in the Niger-Benin Regional Transport Compact. A $500 million grant will help develop the trade corridor and reduce costs for traders at one of Africa's busiest border crossings, with more than 1,000 vehicles passing through per day.
The U.S. also vowed to develop an electric vehicle value chain in the Democratic Republic of Congo and Zambia, two countries rich in cobalt and copper, which are important for the renewable energy transition.
Additionally, the country will provide $100 million for other clean energy projects and $350 million for digital transformation to expand digital access and literacy across the continent.
Other new deals announced at the summit include Visa investing $1 billion in the continent over the next five years to expand mobile payment services and $858 million in new contracts from Cisco Systems and Cybastion, a cybersecurity firm owned by Cameroonian immigrant Thierry Wandji Ketchiozo, which are aimed at beefing up cybersecurity protection in West Africa.
Also, nearly $20 billion will go into health-related initiatives, while at least $1.1 billion is set to support initiatives meant to promote energy transitions, climate adaptation and conservation. Other pledges were made to increase the economic engagement of women on the continent.
"It remains to be seen if in the long term, the U.S. will equal China when it comes to investments," said Fidel Amakye Owusu, an international relations specialist from Ghana.
He added that the U.S. should not stop investing because of human rights issues. "America must [at the same time] talk both about investments and human rights to African leaders, and force them to make people a part of the process."