It's a hot frontier for global investment. And both China and the US want a stake. So far this year, President Obama has visited Ghana and Egypt. Secretary of State Clinton wrapped a seven-nation African tour. President Hu stopped in Mali, Senegal, Tanzania, and Mauritius. Premier Wen just attended the China-Africa Forum in Egypt. As the son of a Kenyan, President Obama may have won African hearts. But China's deep pockets have been winning over African governments.
The US is already on the back foot in Africa. The American public may not be terribly aware. But basically, most of Africa thinks that it's a great thing that China has come into the game.
In the last year, China has struck deal after deal to build infrastructure in Africa in exchange for natural resources. Critics say China's actions have propped up dictatorships in Sudan and Zimbabwe. But leaders indicate Africa will take money from anyone who's giving.
Foreign direct investment has no fixed allegiance or nationality. It goes where it is most welcome.
China recently pledged ten billion dollars in loans to Africa. China's foreign direct investment in Africa is up almost 80 percent this year. Trade has multiplied ten times this decade to 107 billion dollars. Huge African communities have formed in China filled with traders and entrepreneurs who want to realize the Chinese dream.
There’s a huge number of students that come from Africa on scholarship funded by the Chinese government. And there is a lot of businessmen that come from Africa buy goods and do trading.
Aside from supporting increased agriculture investment, analysts say President Obama has yet to solidify his Africa strategy, but stress it's not necessarily a competition, but a chance for the US and China to cooperate and make vital changes on the developing continent.
Clearly there is a great potential there. We should put the interests of the African people in the center of these considerations.
But the vast opportunities in Africa are not without challenges. Poverty, corruption, and instability are constantly changing the game. The question is how the US and China choose to play.
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