US backs Madagascar rare earths project
The announcement is part of Washington’s efforts to chip away at China’s dominance of the critical minerals sector across Africa.
The United States has pledged support for a rare earths project in Madagascar, aiming to reduce China's dominance in the crucial minerals sector across Africa. The Development Finance Corporation of Washington will allocate up to $4.8 million towards the Ampasindava project. This investment opens the door to potential future funding.
The region's site yields materials vital for magnets used in defense manufacturing, a sector the US is keen to secure. The expansion of critical minerals investments by the US in Africa, under the Trump administration, aligns with its "trade-not-aid" policy. Although experts suggest the US is unlikely to surpass China, which remains the leading foreign investor in the sector, some view Washington's new approach to Africa's resources as a positive shift following years of perceived paternalistic foreign policy.
Christopher Vandome, a senior researcher at Chatham House, noted a sentiment that the Americans are returning to Africa with a strong focus on business discussions.
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