EU, China, and US Compete for Africa’s Critical Mineral Resources

The European Union (EU) has positioned itself as a key partner for Africa during its summit with the African Union in Luanda, Angola, this week. EU Commission President Ursula von der Leyen emphasized that Africa exports more than double to Europe than it does to China. This shift reflects a growing competition among global powers, including the United States and China, to secure Africa’s critical mineral resources.

In her address at the summit, von der Leyen highlighted the EU’s Global Gateway initiative, which aims to promote infrastructure and investment in Africa. She stated, “The EU invests in local jobs and local value chains, and this is what makes it unique in the global investment landscape.” Von der Leyen criticized other investors, suggesting they prioritize profit repatriation over local development, which can exacerbate unsustainable debt in African nations.

Africa possesses approximately one-third of the world’s mineral resources. Historically, the continent has been disadvantaged by unequal trade agreements that favor foreign powers extracting resources for processing elsewhere. The International Monetary Fund (IMF) reported that between 2016 and 2022, a staggering 73 percent of greenfield foreign direct investment in sub-Saharan Africa was allocated to extraction activities, with only a quarter directed towards processing and manufacturing.

As demand for critical minerals escalates, African governments are increasingly asserting their rights to negotiate better terms. The EU is now advocating for partnerships that not only secure essential minerals for European industries but also ensure that more processing occurs within Africa. This initiative aims to support local economies and create jobs.

The United States has also engaged with African nations, finalizing several critical minerals agreements linked to security support in recent months. Just before the EU-African Union summit, China announced a new Green Minerals Alliance in collaboration with 19 countries, pledging a more equitable distribution of benefits from the minerals supply chain.

While von der Leyen’s remarks on Chinese investment in Africa included some truths, they overlooked the depth of China’s engagements on the continent. Chinese President Xi Jinping met with 54 African leaders in Beijing last year, highlighting long-term relationships based on mutual interests. China promotes its development model and positions itself as a fellow developing nation in international forums.

Europe’s historical legacy in Africa continues to complicate its relations. Recent actions, including the EU’s reluctance to waive intellectual property rights for COVID-19 vaccines, have drawn criticism. Additionally, the EU’s admonitions to African countries regarding their stance on Russia’s invasion of Ukraine failed to consider the war’s repercussions on food security across Africa.

As the global community recognizes Africa’s potential in the 21st century, smaller European nations like Finland, Estonia, and the Czech Republic are increasing their diplomatic efforts on the continent. Ireland, in particular, is well-positioned to cultivate deeper relationships with African nations, focusing on collaboration rather than traditional development aid.

The competition for Africa’s resources is intensifying, with the EU, China, and the US all vying for influence. How these dynamics will shape the future of Africa’s economic landscape remains to be seen, but the push for equitable partnerships signals a significant shift in international relations.