The US is launching a big push to counter China’s large economic influence in Africa, if the deliberations at the recently concluded US-Africa Business Summit in Maputo are any proof.
The assemblage of eleven African heads of state or government and over 1,000 business leaders, who attended the summit, hosted by the Mozambican government and the Corporate Council on Africa, a US organization advocating more American engagement with the continent, had endorsed the need for strengthening the US ties with Africa, as reported earlier in our columns. Despite the fair degree of controversies the meet seemingly had invited-mainly because of the conspicuous absence of South Africa which did not participate even at the ministerial level meetings, notwithstanding its avowed objective of attracting US$ 100 billion investment in five years, the summit amplified the growing US interests in the region.
The summit witnessed launch of two major new initiatives to boost US trade and investment in the continent. Foremost is the commitment of the US International Development Finance Corporation (DFC) to invest US$60-billion through the Overseas Private Investment Corporation (OPIC) and the Development Credit Authority (DCA). This will work out to be more than double the amount of money available for the US investment in low- and middle-income countries than was previously available. Importantly, many of the target beneficiary countries are in Africa. Also, the summit witnessed the signing of the Final Investment Decision for a 20-billion-dollar investment, the largest in Africa’s history, by the U.S. Company Anadarko, which is hailed as a transformational investment for Mozambique and for the African continent at-large.
But the bottom line is: can it change the course of Chinese aggression in the expanding African market? Africa watchers are divided on the issue. Some of them are of the view that a proper view can be taken only after allowing time for gauging whether the US overturn is a sustainable one or not. A few feel that Trump’s sudden interest in Africa is to play to the gallery at home to woo the black voters for the 2020 eelction. He was criticized for his hands off policy on Africa on the premise that America First can look at any country for focused attention only when that country fulfills the US business interests. Perhaps, Africa did not provide any quid pro quo business interests to the US. Now, becoming a close ally of Africa can send political vibes to the black voters in Africa, who support Trump’s anti-immigration stand, which can help increase their wages. The wages in the US were depressed for a long time because of the influx of people from South American countries. There are a good number of people, who believe that once re-elected, Trump many not have any qualms about pursing a liberal immigration policy since a good number of veteran Republican party members are for a relaxed immigration policy to insulate the wage level from overheating. In case, Trump fails to make it to the next term, the views of the Democrats for a relaxed immigration policy will get the precedence.
That said, it is important to see whether Chinese interests would dwindle in Africa. Presently, stung by various unanticipated developments like the ongoing trade war, there can be a possible drop in China’s economic activities both within and abroad. The aggressive postures of China may have mellowed down but it is not out. At best, it may be passing through a difficult trajectory, which may not last long. But the overriding factor for Chinese dominance in Africa could be its approach to get into the brass tacks of business rather than holding parleys with intellectuals, experts, businessmen etc. China believes in quick results and it has the money, materials and people to accomplish such goals since back home the decisions are taken dictated by the political will unlike in the US, where programs and projects have to undergo a lot of scrutiny and approvals. That way, China may have the last laugh in Africa.
