By Mehari Taddele Maru
Last month, the twelfth US-Africa Business Summit, a high-level event attended by eleven African heads of state and government and some 1 000 business leaders, was held in Maputo, Mozambique. During the three-day event, US officials unveiled a $60bn investment agency that will seek to invest in low and middle-income countries, with a focus on Africa.
The announcement came six months after US president Donald Trump’s National Security Advisor, John Bolton, presentedthe Trump administration’s ‘New Africa Strategy’. He asserts: ‘Great power competitors, namely China and Russia, are rapidly expanding their financial and political influence across Africa. They are deliberately and aggressively targeting their investments in the region to gain a competitive advantage over the United States.’
Although both China and Russia are mentioned, the US has demonstrated over the past few months that it is mainly concerned about the former. In fact, it already appears that Africa is set to become yet another battleground for the escalating trade war between Beijing and Washington. With increasing foreign military presence and growing diplomatic tensions, the continent is already witnessing the first signs of an emerging new cold war. And just as the previous one devastated Africa, fuelling wars and forcing African governments to make economic choices not in their best interests, this one will also be detrimental to African development and peace.
China’s approach to Africa has always been trade oriented. The continent became one of the top destinations for Chinese investment after Beijing introduced its ‘Go Out’ policy in 1999, which encouraged private and state-owned business to seek economic opportunities abroad. As a result, Chinese trade with Africa has increased forty-fold over the past two decades; in 2017, it stood at $140bn. Between 2003 and 2017, Chinese foreign directed investment (FDI) flows have jumped close to sixty-fold to $4bn a year; FDI stocks stand at $43bn – a significant part of which has gone to infrastructure and energy projects.
China has significantly expanded African railways, investing in various projects in Kenya, Ethiopia, Djibouti, Angola and Nigeria; it is currently building a massive hydropower plant in Angola, and has built Africa’s longest railway connecting Ethiopia and Djibouti. It also built the headquarters of the African Union in Addis Ababa, and that of the West African regional bloc, ECOWAS, in Abuja.
By contrast, the USA has long viewed Africa as a battlefield where it can confront its enemies: the Soviets during the Cold War, ‘terrorists’ after 9/11, and now the Chinese. Washington has never really made a concerted effort to develop its economic relations with the continent. As a result, trade between the USA and Africa has decreased from $120bn in 2012 to just over $50bn today. US FDI flows have also slumped from $9.4bn in 2009 to around $330m in 2017. The new $60bn investment fund announced last month is a welcome initiative, but it will not be able to challenge Chinese economic presence on the continent. Just last year, Chinese president Xi Jinping pledged $60bn dedicated solely to investment in Africa.
The US has repeatedly accused Chinaof using ‘debt to hold states in Africa captive to [its] wishes and demands’, and has warned African states to avoid Chinese ‘debt diplomacy’ that is supposedly incompatible with the independence of African nations and civil society, and poses ‘a significant threat to US national security interests’. Yet Africa is only the fourth-biggest recipient of Chinese FDI after Europe (mainly Germany, UK and Netherlands), the Americas (mainly the USA and Canada) and Asia. The USA has also borrowed heavily from China; its current debt to its rival stands at $1.12 trillion. By contrast, Africa owes China around $83bn.
Africans are fully aware of and concerned about high indebtedness, trade imbalances, the relatively poor quality of Chinese goods and services and Beijing’s application of lower standards of labour and environmental practices. But many do not share the American perspective that their economic relationship with China is detrimental to them, and rather see it as an opportunity that provides much-needed unconditional funding and that takes local priorities into account. As Djibouti’s President Ismail Omar Guelleh argued, ‘The reality is that no one but the Chinese offers a long-term partnership.’
The pressure the USA is currently exerting on African countries to move away from partnerships with China could hurt African economies. It could force African countries into making choices that are not in their best economic interests, and could cause them to miss out on important development projects or funding. Meanwhile, the USA-China trade war is already affecting the continent. According to the African Development Bank, it could cause as much as a 2.5 per cent decrease in GDP for resource-intensive African economies, and a 1.9 per cent dip for oil-exporting countries.
The escalating tensions between the USA and China could also threaten the security of the continent since both countries are militarily involved in Africa. Over the past fifteen years, the Chinese People’s Liberation Army has been engaged in a number of security missions across the continent, making modest auxiliary troop contributions to peacekeeping operations in Sudan, South Sudan, Liberia, Mali and the Democratic Republic of Congo. It has also contributed millions of dollars of peacekeeping equipment to the African Union Mission in Somalia (AMISOM), and provided significant funding to the Intergovernmental Authority on Development (IGAD) for its mediation efforts in South Sudan.
In 2017, the first Chinese overseas military base was opened in Djibouti. The facility, which hosts some 400 staff and troops, and has the capacity to accommodate 10 000, is officially supposed to provide support for the ongoing anti-piracy operations of the Chinese navy, but it also plays a role in securing maritime routes, part of Beijing’s Belt and Road Initiative. There has been speculation that this is the first of a number of planned bases meant to secure Chinese interests in Africa.
China’s military presence in Africa, however, pales in comparison to that of the USA. Over the past few years, the US Africa Command (AFRICOM) has run some thirty-six different military operations in thirteen African countries, including Burkina Faso, Cameroon, Central African Republic, Chad, Democratic Republic of Congo, Kenya, Libya, Mali, Mauritania, Niger, Somalia, South Sudan and Tunisia. It has more than 7 000 troops deployed on the continent. It maintains a massive military base in Djibouti – the biggest and only permanent US military base in Africa, but also runs at least thirty-four other military outposts scattered across the west, east and north of the continent where US troops are deployed and military operations (including drone attacks) are launched from. The US also directly supports the armies of Egypt, Nigeria, Ethiopia, Mali, Niger and others, as well as the G5 Sahel force tasked with counterterrorism.
While a direct confrontation between US and Chinese forces in Africa is unlikely, their growing presence is becoming increasingly destabilising. Already, Washington’s strategy to contain Chinese influence over Africa is playing out at different conflict and social upheaval hotspots across the continent. The fallout of the US-Chinese competition is particularly apparent in the strategic Red Sea region, through which passes one of the most important maritime routes. Countries in the region are not only feeling growing US and Chinese pressure to take one side or the other, but are also increasingly exposed to outside interference by various regional powers.
Djibouti recently found itself at the centre of US-Chinese diplomatic confrontation. Being host to military bases of both superpowers, the small country has had to play a difficult balancing act. In 2018, Djibouti seized control of its Doraleh Container Terminal from the Emirati company DP World, claiming the company’s operation of the facility was threatening Djibouti’s sovereignty. The authorities had feared that the UAE’s investment in the nearby Port of Berbera in the autonomous Somali region of Somaliland could challenge its position as the main maritime hub for Ethiopia’s large economy. The decision to terminate the contract with DP World, however, triggered a sharp reaction from Washington, a close Emirati ally. The Trump administration fears that Djibouti could hand control of the terminal over to China.
Bolton warned: ‘Should this occur, the balance of power in the Horn of Africa – astride major arteries of maritime trade between Europe, the Middle East, and South Asia – would shift in favor of China. And, our U.S. military personnel at Camp Lemonnier could face even further challenges in their efforts to protect the American people.’
Djibouti was forced to publicly declare that it would not allow China to take control of the terminal, but that did not assuage US fears. Ever since, the USA has sought to secure a possible alternative location for its African military base: neighbouring Eritrea. It encouraged regional actors, including Saudi Arabia and the UAE, to pull Eritrea out of its decades-long isolation. In a matter of months, long-time enemies Ethiopia and Eritrea concluded a peace agreement to end their twenty-year-old cold conflict, while the UN lifted sanctions on Asmara. As a result, Eritrea was able to emerge as a strategic rival to Djibouti, offering its coast for foreign military and economic facilities. The UAE has already set up a military base near the Eritrean port of Assab.
Sudan, to the north, has also been a battleground of the ongoing superpower turf war. China had long been a supporter of Sudan’s president, Omar al-Bashir. Under his rule, Beijing came to dominate its oil industry, buying some eighty per cent of Sudanese oil, and thus providing Khartoum with much-needed cash to wage war against various rebel groups. It was also one of the few countries, along with Russia, that broke the UN arms embargo and sold weapons to Bashir’s regime. After South Sudan gained independence in 2011, China continued to be a close partner of the Sudanese regime, remaining its main trading partner. Sudan, in fact, became the biggest beneficiary of the $60bn Africa investment package that China had pledged in 2018, having some $10bn in Chinese debt written off. The Chinese government also made plans to develop facilities in Port Sudan, where it already operates an oil terminal. Qatar and Turkey also signed deals with Bashir for various facilities in the port city. When mass protests erupted on the streets of Sudan in December 2018, Beijing stood by Bashir, who it saw as the main guarantor of stability in the country, which lies on strategic routes, inlcudes China’s Belt and Road Initiative.
Meanwhile, the USA had repeatedly demonstrated that it did not want Bashir running for another term. His removal was approved in Washington, which has since appeared to back the interests of Saudi Arabia and the UAE in Sudan. The two Gulf states hope to install another strongman sympathetic to their regional politics, who would maintain Sudan’s participation in the war in Yemen and curb Turkish and Qatari influence. At this point, it seems China is at risk of being sidelined by the significant sway the UAE and Saudi Arabia have with Sudan’s Transitional Military Council (TMC).
Apart from Djibouti and Sudan, various other countries in the region have also felt the consequences of the US bid to contain China. This political confrontation has added to the already-rising tensions between other players in the region, including Egypt, the Gulf countries, Iran and Turkey. The Trump administration has particularly favoured Emirati, Saudi and Egyptian interests, which have emboldened these three countries in their efforts to shape regional dynamics to their advantage.
Thus, in the long-term, given the pre-existing faultlines and conflicts in the region, the US-China cold war could have a detrimental effect, not only on its economy but also on its security. At this stage, to preserve its interests and its peace, Africa has only one option: to reject pressures for it to swear allegiance to either of the two powers. African countries should uphold their sovereignty in policy and decision making, and pursue the course that is in the best interests of their nations.
If the USA wants to compete with China on the continent, it should do so in good faith. It can gain a competitive advantage by offering African countries better, more credible and principled alternatives to those put forward by China. But that can only happen if the USA develops a strategy that focuses on Africa itself, not on containing and undermining the business of a third party.
• Mehari Taddele Maru is an independent consultant on matters of peace and security in Africa
• This article was first published by AlJazeera