EU Loan Package Seeks to Counter China’s Reach in Africa

President of the European Commission Ursula von der Leyen speaking on the second day of the summit. Photo: Yves Herman/ pool / AFP

While the scramble for colonies in Africa is over, the competition among the great powers to own Africa’s debt is rising to a new level.

At stake is whether China or the European Union (EU) will dominate the continent that’s home to seven of the world’s 20 fastest growing economies and rapidly urbanizing regions.

The European Union and the African Union signed a $170 billion development package on Feb. 25—a move seen as a major effort to counter growing Chinese influence in Africa.

“Never before has Europe had a global investment strategy, and never before have we put on the table such a sizeable and ambitious package with Africa,” said Ursula von der Leyen, European Commission president, who promised “transformative results.”

President of the European Commission Ursula von der Leyen (L), Senegal’s President and African Union Chair Macky Sall (2nd L), president of the European Council Charles Michel (2nd R), and French President Emmanuel Macron (R) at the opening session of the summit. (Yves Herman/Pool/AFP)

The multibillion-dollar package is the first regional plan of the European Union’s Global Gateway—an investment blueprint that seeks to mobilize up to 300 billion euros ($328 billion) for public and private infrastructure around the world by 2027. The investment plan, covering transport networks, energy, digital, education, and health projects, is the EU’s counter to China’s Belt and Road Initiative (BRI), which also seeks to develop infrastructure globally.

“There is no doubt that the Global Gateway is an attempt to counter China’s influence in the region, but the challenge lies in whether this is actually real investment from the EU, or simply the hope that existing aid money can be leveraged to spur private investment. Early indications suggest the latter,” David McNair, executive director at ONE.org and a founding executive board member of the Africa Europe Foundation, told The Epoch Times in an email.

“China has invested heavily in Africa and has acted fast in building infrastructure for a continent that can’t afford to wait,” he said.

“Proponents suggest that China is responsive to requests from African countries. Critics say the contracts are designed to build China’s influence and don’t create enough jobs for Africans.

“But the demand and the opportunities are significant—the biggest risk is that the United States and Europe fail to realize its opportunities.”

Africa this year is facing economic competition from Europe, China, and the United States.

China’s $1 trillion BRI has made Africa the largest regional component of its effort to reset global commerce.

Moussa Faki Mahamat, chairman of the African Union Commission, in his address at the Sixth Africa–European Union Summit. (Courtesy of AU web page)

At the G-7 summit in June 2021, President Joe Biden announced the Build Back Better World initiative, which is intended to coax African countries to build more inclusive, equitable, and sustainable economies after COVID-19.

“It’s not a colonial-era scramble for Africa, as, fortunately, African countries have far more power to determine their own fates than they did during the true scramble for Africa,” Joshua Meservey, senior policy analyst for Africa and the Middle East at the Heritage Foundation, told The Epoch Times in an email.

“The average African should hope for more Western involvement in their countries, since the foreign policy goals of democratic countries are more likely, if realized, to result in better outcomes for them.

“If you’re a corrupt African elite, then you want more Chinese involvement since you have a much better chance of personally benefiting from their engagement.”

If African leaders can navigate the competition of outside powers wisely, with the determination to maximize the benefit for their own countries, the continent could make significant gains.

“African leaders realize that they have options, that every partner brings their own agenda, and that there are risks and benefits of partnering with each,” ONE.org’s McNair said.

“Ensuring that investment in infrastructure happens fast enough to keep up with Africa’s demographic boom, avoiding the risks of debt distress is critical. But perhaps the greatest risk is becoming too dependent on one partner.

“Europe is focused on the fight against climate change, which is a major threat for the African continent, but also an opportunity to spur investment and job creation in green technology.

“African leaders will increase their bargaining power if they act together rather than bilaterally.”

But none are in for the long-term benefit of Africa, since they all have “the basic same mentality,” according to Kevin Jessip, founder of Global Strategic Alliance.

“I simply do not trust the leader globalists in the EU, as they are no better than China in that their interest is in a one-world government and not in meeting the real felt needs of the African people.”

African leaders wish to overturn the China Belt & Road initiative, which is creating an unsustainable debt issue while enslaving the people of Africa.

“China will then rape the nation for its mineral rights and other natural resources,” Jessip told The Epoch Times.

Africa is developing a diversity of partnerships “that do not have the same history, nor the same scope as that of our partnership with Europe,” Moussa Faki Mahamat, chairman of the African Union Commission, said at the summit.

“These new partnerships are no less relevant and beneficial for Africa and, from this point of view, are worthy of respect and consideration,” he said, without giving further details.

Meservey said: “What Africa actually needs is economically productive infrastructure honestly procured. Because Chinese companies and African governments frequently hide the details of their dealings together, it’s impossible to know whether the projects meet that standard.

“There is good reason to fear that at least some do not. There are frequent reports of overpriced Chinese projects and tenders awarded to Chinese companies in violation of procurement laws. African taxpayers are then left on the hook.”

Earlier this month, the federal government of Nigeria said it was “stuck with lots of projects ... because the Chinese are no longer funding.”

“We are now pursuing money in Europe,” transport minister Rotimi Amaechi told local media.

“China is very serious about Africa, and therefore this is a huge problem for both the U.S. and Europe,” Jessip said.

“China, in its long view, has been very patient and methodical in its approach through its various unrestricted warfare strategies, and so both the U.S. and the EU are coming from a bad position.”