China's investments in Africa: a necessary step towards added value?

Von Kl Redaktion

Berlin (ots)

For some time now, Africa's role has been on the agenda of large powers such as China, the USA and the EU. But despite the common interest in the valuable raw materials of the continent, there is still a lot of improvement potential in the development of value chains. At the forum for China Africa Cooperation (FOAC) in Beijing, new projects are being discussed intensively, but no fundamental change in the previous strategy is expected.

The problem is clearly outlined: the 54 African countries are faced with the challenge of efficiently using their resources and developing their own economy regardless of the interests of external actors. So far, they have little scope because the large business powers do not set incentives to achieve this goal. Instead, Africa remains trapped in the role of the raw material supplier, while significantly higher prices could be achieved on the market for processed products such as chocolate or textiles.

China's new silk road and the effects on Africa

As part of China's global investment offensive, known as the new Silk Road, the country in Africa has already implemented considerable infrastructure projects. These include the construction of ports, railway lines, airports and industrial parks. The aim of these investments is to optimize the transport of African raw materials to China. These measures show how China endeavors to further expand its economic interests in Africa, but without supporting the promising opportunities for local added value.

A special focus is on agriculture, where over 100 million small farmer families live. Despite the enormous potential in this sector, much remains unused. The governments in Africa and in the global north are obliged to create fair framework conditions for small farmers. Unfortunately, only the export -oriented agrobusiness is promoted and the market asymmetries tighten the situation for the individual farmers.

political influence and the future of Africa

The political landscape is particularly complex in this context. Although there are signs of a common political will, geopolitics continue to separate the countries into favorite and less favored actors. Under the guise of the global energy transition, Africa is still considered an indispensable source for raw materials such as manganese, lithium and cobalt. But a real diversification to processing industries and sustainable development has so far failed.

The challenges with which Africa is confronted - from inadequate trade conditions to lack of access to modern technologies - make it clear that a profound change is necessary. The discussions at the FOAC could be the beginning to create new perspectives, but it will take time to make real progress that go beyond the usual models.