Africa is redefining its strategic alliance with China, positioning itself as the architect of this significant connection on its own conditions.
In the bustling city of Dakar, Senegal, the 9th Forum on China-Africa Cooperation (FOCAC) took place, bringing together representatives from around 40 African nations. This year's summit, held in late 2022, marked a significant milestone in the evolving relationship between Africa and China.
The event saw China pledge $51 billion over the next three years to fund new energy sector and infrastructure projects. This commitment underscores China's continued investment in Africa's development, a trend that has been growing for over two decades since the establishment of FOCAC in 2000.
Africa, with its control over vital commodities such as cobalt, lithium, and rare earth minerals, holds unprecedented leverage in these negotiations. China is seeking to tap into Africa's vast natural resources, including copper, gold, lithium, and rare earth minerals, to fuel its own economic growth.
However, geopolitical shifts have intensified rivalry among global powers for influence in Africa. Besides China, this rivalry includes its allies Russia, certain sectors of the Middle East, the US, and European nations. The US, in particular, has expressed concern over South Africa's ideological closeness to China and its support for Russia in its war against Ukraine.
South Africa, China's largest trading partner since last year, is strategically important in this context. At the summit, South Africa's President Cyril Ramaphosa announced plans to attract China's electric vehicle manufacturers, including its largest, BYD, which has shown interest in setting up manufacturing plants in South Africa.
Yet, experts argue that African countries still lack a coherent strategy towards China. While China has published several comprehensive strategies towards Africa, African nations have yet to formulate a unified response. This lack of strategic alignment could potentially lead to unequal partnerships, a concern that African nations need to address decisively.
Meanwhile, the US, EU, and Asian nations have invested heavily in manufacturing plants in South Africa to support its localisation strategy. However, the EU's Carbon Border Adjustment Mechanism (CBAM) could potentially impact South Africa's exports, with a country-specific study showing that the CBAM (based on a carbon price of $75 per ton applied to direct emissions) would see South African exports to the EU fall by 4% and GDP reduced by 0.02%.
As the geopolitical landscape continues to evolve, it remains to be seen how Africa will navigate its relationships with global powers. One thing is clear: Africa's partnerships with global powers will play a crucial role in shaping the continent's future economic and political trajectory.
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