Daily Times

What the economist called “The new scramble for Africa” has been underway for the past few years. The second largest continent and home to 1.4 billion people, with around 60 percent under the age of 25, Africa has been characterized as the ‘Continent of the Future’ and African countries as the ‘lions on the move’. It is predicted to surpass the Chinese population by 2050. For the last couple of years, governments and businesses from all around the world have been rushing to strengthen diplomatic, strategic and commercial ties with 54 diverse and resource-rich countries. Six out of the world’s ten fastest-growing nations are located in this continent with a combined nominal GDP of US$ 3.1 trillion.

Renowned investor and philanthropist, George Soros, in a pre-covid assessment, described Africa as ‘one of the few bright spots on the gloomy global economic horizon. It is expected that by the end of this century, Africa’s youth population will increase by more than 180 percent, while that of Europe and Asia will shrink by more than 21 percent and 28 percent, respectively.

According to the African Development Bank Group’s report, African Economic Outlook-2023, despite post-Covid global financial challenges and supply chain disruptions owing to the Ukraine crisis, African economies have shown resilience, with a projected average growth stabilizing at 4.1 percent in 2023-24, higher than the projected 3.8 percent and surpassing the global average. This positions Africa favourably, with several nations expected to be among the world’s fastest-growing economies. According to the World Bank’s projections, most African countries would reach middle-income status by 2025. According to IMF projections, in 2023, six African countries will be in the top fast-growing economies, with Libya (17.9 percent), Senegal (8.1 percent), Niger (7.3 percent), DRC (6.7 percent), Rwanda (6.7 percent) and Cote d’Ivoire (6.5 percent).

Six out of the world’s ten fastest-growing nations are located in Africa with a combined nominal GDP of US$ 3.1 trillion.

Africa is typically divided into five geographical regions of North Africa (including countries along the Mediterranean coast, such as Egypt, Libya, Tunisia, Algeria, and Morocco); West Africa (western coast of the continent, including Nigeria, Ghana, Ivory Coast, Senegal, and Mali); Central Africa (central part of the continent, such as the Democratic Republic of the Congo, Cameroon, Central African Republic, and Gabon); East Africa (eastern coast and nearby areas, like Kenya, Tanzania, Ethiopia, Uganda, and Rwanda) and Southern Africa (southern tip of the continent, including South Africa, Namibia, Botswana, Zimbabwe, and Mozambique). Each of these regions has distinct cultural, historical trajectories, and colonial legacies. Their geo-strategic and geo-economic significance also vary:

North Africa, which connects Africa with the Middle East and Europe, holds significant strategic importance due to its proximity to vital shipping routes in the Mediterranean and the Suez Canal. Colonially, it was influenced by French and British powers, leading to a blend of Arab and Mediterranean cultures. Except for Algeria and the Arab Spring uprisings, North Africa has remained relatively peaceful. However, being an oil and natural gas-rich region, it remains the centre of contestation.

India has invested in the North in energy, agriculture, infrastructure, pharmaceuticals, IT, and education. Chinese investment in North Africa, which is also a part of its broader Belt and Road Initiative (BRI) exceeds that of India. Chinese have invested in large-scale infrastructure projects, including ports, roads, railways, energy projects and heavy industry. They also have a significant presence in the mining and telecommunications sectors, providing technology and assisting in infrastructure development.

West Africa has a strategic Atlantic coastline, which is significant for trade and resource export. The region’s colonial history, primarily under French and British rule, has left a legacy of diverse linguistic and political structures. Conflicts and insurgencies in this region often revolve around ethnic tensions and control over resources like gold, diamonds, and oil. West Africa has seen increased Chinese and Indian investment, focusing on infrastructure and resource extraction, while Gulf States like Saudi Arabia as well as Turkiye are also expanding their influence through religious and cultural ties.

Central Africa, with its vast rainforests and river systems, holds strategic importance for biodiversity and freshwater resources. The colonial era, dominated by Belgian, French, and Portuguese powers, notoriously exploited the region’s human and natural resources. Ongoing conflicts and insurgencies in countries like the Democratic Republic of the Congo and the Central African Republic are often linked to control over valuable minerals (like coltan and cobalt), crucial for the global electronics industry. Chinese investment is particularly significant here, focusing on mining and infrastructure.

East Africa is strategically important due to its access to the Indian Ocean, making it a key player in maritime trade routes. The region’s colonial past, mainly under British and Italian influence, has led to diverse cultural and political landscapes. It faces challenges like ethnic conflicts and insurgencies from groups like Al-Shabaab. The region is rich in resources like oil and gas, particularly in countries like Kenya and Uganda. China and India are heavily investing there to secure their energy needs and trade routes.

Southern Africa holds strategic maritime significance with the coast of Cape of Good Hope and vast mineral wealth, including diamonds, gold, and platinum. The region’s history of colonialism, especially under British and Dutch (Afrikaner) rule, has profoundly impacted its racial and political dynamics, as seen in apartheid’s legacy in South Africa. Conflicts in this region have been more about political power and land redistribution. India’s major investments are in agriculture, information technology, pharmaceuticals, manufacturing, energy projects, software and IT services. Chinese investments are more concentrated on large-scale infrastructure projects, mining and acquisition of agricultural lands for food production, telecommunications infrastructure, developing industrial parks and manufacturing sectors.

(To be concluded)

Areeba Matloob is a student. Saud Bin Ahsen works at a public policy think tank.