The African continent is rich in key minerals and metals such as lithium, rare earth elements, cobalt, and tungsten, which are essential materials for electric vehicles, artificial intelligence data centers, and weapon systems. As a result, Africa has become a focal point in the competition between the United States and China. According to the latest annual data, the United States has quietly surpassed communist China to become the largest foreign direct investor in Africa.
For a long time, communist China has been actively involved in global key mineral and metal markets, making significant investments in overseas mining operations, particularly in Africa. The Chinese Communist Party has also utilized the Belt and Road Initiative to expand its influence in Africa.
Over the past two decades, China has invested a total of $155 billion in infrastructure projects in sub-Saharan Africa, thus expanding Beijing’s influence in the region. This has prompted Western countries such as the United States to view the Belt and Road Initiative as a tool for China’s geopolitical expansion.
In recent years, the United States and the European Union have shown interest in strengthening their investments in Africa. In 2022, the Biden administration joined the $600 billion Global Infrastructure and Investment Partnership (PGII) with seven other countries, while the EU announced a new Africa policy at the time.
Since President Trump returned to the White House, the U.S. government has been attempting to counter China’s dominant position in the production and processing of rare earths, copper, aluminum, germanium, tungsten, and other metals.
During the trade war with China, the Trump administration faced restrictions on critical mineral exports imposed by China, raising concerns among Western countries. This has made it more imperative for the United States to enhance its access to key minerals and metals, with African mineral reserves being seen as crucial to achieving this goal.
According to a BBC report, official data obtained by the China Africa Research Initiative at Johns Hopkins University shows that in 2023, U.S. investments in Africa amounted to $7.8 billion, while China’s investment was only $4 billion. This marked the first time since 2012 that the U.S. had regained its leading position.
These U.S. investments are led by the U.S. International Development Finance Corporation (DFC). Established in 2019 during Trump’s first term, the DFC stated on its website that its purpose is to “counter China’s influence in strategic regions.”
The company serves as a critical tool for enhancing economic cooperation with countries in the Indo-Pacific region under the U.S. strategic framework, while promoting high-quality infrastructure development overseas to counter China’s expanding global influence through the Belt and Road Initiative.
In 2024, Trinity Metals, a mining company in Rwanda, received a $3.9 million grant from the DFC for developing its three mines in the country, which produce tin, tantalum, and tungsten.
“Our work aligns well with the U.S. government’s efforts to reshore supply chains,” said Shawn McCormick, chairman of the company, to the BBC.
Trinity currently ships the tungsten from Rwanda to a processing plant in Pennsylvania. The company has also reached an agreement to transport tin from Rwanda to a smelter in Pennsylvania.
McCormick denied that U.S. funding influenced the company’s decision to export to the United States. “The U.S. government did not say to me and my CEO, ‘Please bring the tungsten to the U.S.’ This was a decision made by us as market participants,” he emphasized.
5% of Trinity’s shares are held by the Rwandan government, and Ireland-based TechMet, a crucial mining investment company, is also a shareholder.
McCormick added that while some mining operations in Africa may utilize untrained workers and operate in dangerous environments, Trinity adheres to the highest standards. “We have proven that there is a professional, conflict-free, and child labor-free way to produce these materials, which complies with taxation laws, respects the community and environment, and creates job opportunities.”
ReElement Africa, a subsidiary of American Resources Group, is constructing a critical mineral and metal refining plant in Africa. The refining plant is located in Gauteng Province, South Africa.
“We are thrilled that we can collaborate with African countries to integrate refining facilities with mining projects, truly maximizing the value, enhancing labor skills, developing the economy in the region, and laying a foundation for further industrial development,” said Ben Kincaid, CEO of ReElement Africa, to the BBC.
It is analyzed that the DFC will play a more significant role during Trump’s term. The White House is currently expanding the government’s investment capacity and easing restrictions to allow U.S. government participation in projects in wealthier or high-risk countries to attract more private capital. Trump nominated renowned investor and legal advisor Ben Black as the chairman of the DFC earlier this year, with Black emphasizing that the DFC should cooperate with private capital rather than displace market forces.
On the other hand, the Belt and Road Initiative is losing momentum, with China’s investment in sub-Saharan Africa declining. According to a recent report from the Green Finance and Development Center at Fudan University in Shanghai, infrastructure investments in the region decreased by 55% from 2021 to 2022, dropping to $7.5 billion.
Alicia Garcia-Herrero, Chief Economist for Asia Pacific at French investment bank Natixis, was quoted in Nikkei News as saying, “While China has maintained a significant position in Africa for over two decades, the growing interest of Western powers in Africa may affect China’s Belt and Road strategy.”