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US and EU collaborate to challenge China’s African infrastructure dominance

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Home Business & Economy

US and EU collaborate to challenge China’s African infrastructure dominance

by Editorial Staff
3 years ago
in Business & Economy
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IN a significant move this week, the US State Department confirmed that Washington is forging ahead with its plans to refurbish and extend the Lobito Corridor, a vital railway project set to traverse the mineral-rich regions of Zambia and the Democratic Republic of Congo, ultimately connecting to an Atlantic port in Angola.

This ambitious infrastructure undertaking by Western powers marks a notable shift in the competition for influence in Africa, directly challenging China’s Belt and Road Initiative (BRI), which has faced criticism for debt-incurred and unfinished projects.

The US, in collaboration with the European Union, as well as three African nations and two financial institutions, recently signed a memorandum of understanding to develop the Lobito Corridor further. This initiative was detailed in an online media briefing, with a six-month feasibility study set to commence by year-end. The goal is to complete the 800 kilometres (500 miles) of new railway within five years, at an estimated cost exceeding $1 billion.

Addressing concerns about the project’s long-term sustainability and learning from past foreign infrastructure projects in Africa, Helaina Matza, the acting special coordinator for the Partnership on Global Infrastructure Investment (PGII), highlighted the involvement of a private partner, the Africa Finance Corporation. Matza emphasised that the private sector would play a crucial role in the operation, maintenance, and capacity development of the Lobito Corridor.

While not explicitly mentioning China, Matza implied that lessons had been learned from past experiences. She mentioned projects that the US had helped rescue due to a need for rapid refurbishment.

In response to these developments, Liu Pengyu, China’s Embassy spokesperson in Washington, highlighted the potential for cooperation in global infrastructure but denied allegations that BRI was creating spheres of influence, emphasising a commitment to non-geopolitical infrastructure development.

Reflecting on the lessons learned from the BRI, Yunnan Chen, a researcher at the independent, global think tank, Overseas Development Institute, told VOA that while the BRI faced criticism, it had successfully raised the profile of infrastructure in development, spurring greater interest and competition. The US has demonstrated its keen interest in Africa, a significant BRI partner, and a major recipient of Chinese infrastructure lending.

‘While the BRI can be criticised on many areas, one success it’s certainly had is to raise the profile of infrastructure in development, and crowded in greater interest — and welcome competition — in this space,’ she said, noting the G7 now has the Partnership for Global Infrastructure and Investment and the EU has the Global Gateway. The first Global Gateway forum was held last month in Brussels, where the Lobito Corridor memorandum of understanding was signed.

‘The fact that US has taken such a deep interest in Angola — a major BRI partner and one of the largest recipients of infrastructure lending from China — is a clear sign they want to ramp up the competition directly in China’s spheres of interest,’ she said.

Considering the challenges of making railway projects profitable, particularly in the absence of mining sector connections, the Lobito Corridor is expected to fare better, given its direct links to mineral and mining projects. However, it will be a test for the US and EU to navigate the challenges that rail construction poses, including social and environmental impacts and post-construction management.

Matza emphasised transparency and the holistic success of the corridor, ensuring that communities along its path can participate in both commerce and activities that benefit economic development.

As the West intensifies its infrastructure investment in Africa, the question of who ordinary Africans trust more, the US or China, remains open. Views from residents in Johannesburg, the venue of this week’s Africa Growth and Opportunity Act (AGOA) forum, reflect a mix of scepticism, hope, and the belief that cooperation between the two global powers may be the key to Africa’s future development.

‘Both are looking at taking minerals, so it’s tricky to say this one is better than that one,’  musician Luyolo Yiba told VOA, adding that he doubts the US is primarily concerned with helping the African people and that he expected the money to be lost to government corruption in Africa.

Zoyisile Donshe, an entrepreneur in his 40s, said he doesn’t think there needs to be competition for influence in Africa at all.

‘They see that Africa is the future,’ he said. ‘I love America, I love China as well. They’re creating opportunities in Africa. … I think most Africans would prefer them to cooperate,’ he told VOA.

While the fate of the Lobito Corridor in relation to Chinese-built railways is yet to be determined, the Western powers are tackling the project one step at a time, with an emphasis on financial viability, support, and responsible design.

In a rapidly evolving landscape of African infrastructure development, the Lobito Corridor initiative symbolises a new chapter in competition and cooperation among global powers, and it remains to be seen how these projects will shape the future of the continent.

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Editorial Staff

Editorial Staff

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