Can Africa turn US-China rivalry into better deals?
For Africa, the challenge is to use competition between the US and China to secure infrastructure, technology transfer and opportunities.
African countries are faced with a dilemma as they navigate the US and China's rivalry for their resources. While competition between the two giants may seem advantageous, it does not always translate into better deals for Africa. For instance, in Zambia, despite Chinese investment, only a meager 1% of mined copper is absorbed by local manufacturing.
This illustrates that African countries must focus not only on attracting investment but also on transforming it into local employment and economic growth. The challenge lies in helping African firms become suppliers capable of meeting industry requirements, which requires access to finance, technical support, and reliable business opportunities.
In the past, China learned the importance of creating a network of local suppliers through partnerships with foreign manufacturers and investing in local infrastructure. Similarly, African countries should leverage competition between foreign investors to secure more than just mining investment, ensuring that infrastructure, technology transfer, and opportunities for African firms are part of the agreement.
Written by urgent.news from Africa Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
