Africa: A Wealth of Resources and a Battleground for Global Powers
Africa is emerging as a pivotal center of economic growth and competition among major global powers, driven by its vast natural resources and strategic geographical position. The continent is home to 40% of the world's gold reserves and nearly 30% of total mineral reserves, including 12% of global oil and 8% of natural gas reserves, according to the African Development Bank. This wealth is complemented by a rapidly growing population, which reached approximately 1.4 billion in 2023 and is projected to double by 2050.
However, despite its rich resources, Africa faces significant challenges, particularly in infrastructure development. Insufficient investment has hampered the continent's ability to efficiently connect production areas to global markets, a situation exacerbated by the need for robust transportation networks. Railways, in particular, are crucial for linking countries to ports and facilitating international trade.
The Lobito Corridor, a major infrastructure project funded by the United States, is a key initiative aimed at improving transport links across the continent. This corridor connects Angola to landlocked nations like Zambia and the Democratic Republic of the Congo, facilitating the efficient export of minerals such as copper and cobalt. USAID's commitment to the Lobito project underscores a shift in U.S. strategy towards direct investments in Africa's infrastructure, moving away from traditional focus areas like agriculture.
The Geopolitical Landscape: U.S. vs. China
The competition for Africa's resources is intensifying, particularly between the United States and China. China's Belt and Road Initiative has seen extensive investments in African infrastructure, including roads, railways, and mining operations, securing its dominance in the supply chains of vital minerals like cobalt and lithium. This dominance is critical for modern technology industries and renewable energy sectors.
Researcher Andrej Horki Hlusan highlights that China's involvement in Africa has significantly impacted public budgets in African nations, deepening their economic dependence on Chinese investments. In response, the U.S. has recalibrated its approach, focusing on infrastructure development and partnerships to enhance access to these essential resources.
Despite the potential for growth, Africa's investment in infrastructure remains critically low, estimated at only 3.5% of GDP. The World Bank emphasizes the need to increase this figure to 7.1% annually to strengthen supply chain efficiency and reduce transportation costs. Currently, intra-African trade accounts for only 16% of the continent's total trade, indicating a significant opportunity for improvement in regional economic integration.
