China’s Return to Africa Post-COVID: A Focus on Mineral Resources Intensifies

China’s Economic Cooperation with Africa Rebounds Post-Pandemic

China’s economic cooperation program is making a strong comeback, with Africa being a key focus, according to a recent Reuters analysis. Chinese leaders have highlighted the billions of dollars invested in new construction projects and the surge in two-way trade as evidence of their commitment to Africa’s modernization.

However, the data reveals a more complex relationship, with a heavy focus on minerals essential for the global energy transition and China’s economic revival. While Chinese investment in Africa saw a significant increase last year, it was primarily concentrated on minerals and oil, leading to a growing trade deficit for the continent.

Chinese sovereign lending, once a major source of financing for African infrastructure, has hit a two-decade low. Public-private partnerships (PPPs), promoted by China as the preferred investment vehicle, have struggled to gain traction in Africa.

Despite challenges, the $668-million Nairobi Expressway, a PPP project run by China Road and Bridge Corporation, has been a success, exceeding revenue and usage targets since its opening in August 2022.

While China’s total engagement in Africa reached $21.7 billion last year, with investments hitting nearly $11 billion, concerns remain about the one-sided nature of the relationship. African leaders are pushing for more balanced trade and investment, with a focus on manufacturing and agricultural modernization.

Efforts to increase agricultural exports to China have faced hurdles, highlighting the need for African nations to add value to their exports. Without value addition, experts warn that Africa risks being a source of raw materials for China’s economy.

As China’s economic ties with Africa evolve, the continent seeks to leverage these partnerships for sustainable development and economic growth.