During a summit held in Beijing last week, Chinese President Xi Jinping pledged $51 billion in financing to Africa, a move that coincides with US efforts to regain influence in the region, Newsweek reported.

The summit, part of the ninth Forum on China-Africa Cooperation (FOCAC), has been held every three years since 2000. Representatives from most of Africa's 53 nations attended, with the exception of Eswatini—formerly known as Swaziland—which maintains diplomatic relations with Taiwan rather than China.

In recent years, large-scale Chinese-financed infrastructure projects, such as bridges, roads, and ports, have been prevalent in many developing countries, including across Africa. These investments formed a cornerstone of Xi's Belt and Road Initiative (BRI), China's flagship global development strategy, the news website mentioned.

However, according to Newsweek, the inability of many countries to repay their loans has led to accusations, particularly from Washington, that Beijing is allegedly engaging in "debt-trap" diplomacy. These criticisms have intensified as several African nations face mounting financial difficulties, as per the news website.

The restructuring or renegotiation of Chinese loans has become increasingly common, especially after the economic disruptions caused by the COVID-19 pandemic. Countries such as Zambia, Chad, and Ethiopia have sought debt relief, with Zambia defaulting on its loans in 2020 and undergoing a lengthy restructuring process.

By June 2023, Zambia had secured extensions on loan maturities through the G20 Common Framework but had not achieved reductions in the principal amounts owed, including to China.

In response to the debt crises and a cooling economy, China has adjusted its approach to international investments, particularly under the BRI. The initiative, once known for its massive loans for large infrastructure projects, now emphasizes smaller, targeted projects, which Chinese officials describe as "small but beautiful."

When asked how this shift aligns with the substantial financial commitments made to Africa, Chinese Foreign Ministry spokesperson Mao Ning stated there is no contradiction.

Chinese foreign direct investment (FDI) in Africa first surpassed that of the US in 2008, totaling just under $6 billion, according to data from the US Bureau of Economic Analysis and China's Ministry of Commerce. Since 2013, Chinese FDI has consistently exceeded US investments, with Chinese flows more than doubling those of the US between 2015 and 2022.

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The Biden administration has made efforts to revitalize US investment in Africa since 2021, noted Alex Vines, director of the Africa Program at Chatham House.

Historically, US development aid has been focused on sectors like health, agriculture, and governance, the report recalled. Recently, however, the US has shifted its focus to infrastructure projects, such as the upgrade of the Lobito Corridor railway connecting Angola's Lobito Port with the city of Luau.

"There has been a re-curation of assets and increased footfall of U.S. officials in Africa, alongside initiatives like the Lobito Corridor," Vines pointed out.

Vines pointed out that US engagement with Africa has been hindered by the limited involvement of the American private sector outside of hydrocarbon investments and access to strategic minerals. This has given China and other competitors an advantage.

In contrast, China’s recent partnerships with Africa emphasize business cooperation, including trade, green development, and collaboration on industrial supply chains.

Vines also predicted that US engagement with Africa would decline further if Donald Trump were re-elected, given his "American First" focus on reducing trade deficits rather than promoting foreign investment and aid.

According to the US Census Bureau, in 2023, US exports to Africa totaled just under $29 billion, while imports exceeded $38 billion, resulting in a $10 billion trade deficit.

“This is not what many African states want,” Vines indicated, adding, "They increasingly seek multipolarity, including economic engagement from both China and the U.S."

The Newsweek report also cited a Pew Research Center poll conducted last year in Kenya and Nigeria, which found that 82% of Nigerians viewed Chinese investment positively, while 74% had a favorable view of US investment. Among Kenyans, 73% believed both countries’ investments were beneficial.

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