China-US Investment Competition in Africa

 Deutsche Welle published on 12 December 2025 an article titled "Africa at the Center of US-China Resource Race" by David Ehi.  

In 2023, American companies invested more in Africa than did Chinese companies.  But figures for one year are misleading.  In recent years, Chinese companies have invested more in the continent than American companies.  

The author argues that US foreign direct investment (FDI) in Africa is focused on making a profit for the investing company.  Chinese FDI, ultimately backed by the government of China, pursues long-term strategic goals, especially in the critical minerals sector.  

Houthis Attack Dutch Ship in Gulf of Aden

 The Associated Press published on 1 October 2025 an article titled "Yemen's Houthi Rebels Claim Missile Attack on Dutch-flagged Ship in the Gulf of Aden" by Jon Gambrell.

Yemen's Houthi rebels claim to have attacked with a Cruise missile a Dutch-flagged cargo ship in the Gulf of Aden on 1 October, leaving it ablaze and adrift.  The 19 crew members evacuated the ship.  

Cutting Foreign Aid Is a Costly Mistake

 The Washington Post published on 17 June 2025 a commentary titled "The Retreat from Aid Is a Costly Mistake" by Eduardo Porter.

While the Trump administration has thrown foreign aid into the woodchipper, other Western countries including the UK, Belgium, Finland, France, Germany, Netherlands, Norway, and Sweden have cut development assistance budgets.  Their cuts have not been as dramatic as the US dismantlement of USAID, but the author explains why these changes are a mistake.   

Gum Arabic Helps Fund Sudan's War

 The Wall Street Journal published on 23 May 2024 an article titled "How Soda, Chocolate and Chewing Gum Are Funding War in Sudan" by Alexandra Wexler and Nicholas Bariyo.

About 80 percent of the world's gum Arabic, an ingredient in chocolate, chewing gum, and soda, comes from acacia trees in Sudan.  It is being used by both the Sudan Armed Forces and paramilitary Rapid Support Forces to help fund the war in Sudan.  In 2022, Sudan exported gum Arabic valued at about $183 million.  During the current harvest season, production has declined but the price has risen.

Comment:  While there are sound reasons to sanction the export of gum Arabic from Sudan, its financial impact is modest compared to the export of gold or financial donations to one side or the other from certain states.

US-led Red Sea Protection Force

 The Associated Press published on 19 December 2023 an article titled "Pentagon Announces New International Maritime Protection Force for the Red Sea."

At any given time, there are about 400 commercial vessels transiting the southern Red Sea in an area where Iranian-supported and Yemen-based Houthis are attacking commercial shipping with drones and ballistic missiles.  Consequently, the United States has organized Operation Prosperity Guardian to protect all ships transiting the Red Sea.  So far, the UK, Bahrain, Canada, France, Italy, Netherlands, Norway, Seychelles, and Spain have joined the security mission. 

One notably absent participant is China, which has three PLA Navy ships (usually two frigates and a supply ship) permanently assigned in the area.  So far, those ships have not responded to previous calls for assistance by commercial vessels even though some of the ships attacked have had ties to Hong Kong.  

West African Crude Shifts from China and India to Other Nations

 S&P Global published on 21 April 2023 an article titled "Priced Out by Russian Oil, African Producers Find New Customers Post-war."

West African crude producers, especially Nigeria, Angola, and Congo-Brazzaville, have been forced to find new markets for their oil since the Ukraine war because China and India are now buying cheap Russian crude.  As a result, more West African crude is going to North America, Netherlands, Singapore, and the UK.  Russia has become the top crude supplier to China and India.  West African crude now accounts for only 9 percent of China's imported oil.  

Joint Western Statement on Hostilities in Northern Ethiopia

 The governments of Australia, Denmark, Germany, the Netherlands, the United Kingdom, and the United States issued on 12 October 2022 a "Joint Statement on Resumption of Hostilities in Northern Ethiopia."

The statement calls "on the Government of Ethiopia and the Tigray regional authorities to immediately halt their military offensives, agree to a cessation of hostilities, allow for unhindered and sustained humanitarian access, and pursue a negotiated settlement through peace talks under an African Union-led process.  We also condemn the escalating involvement of Eritrean military forces in northern Ethiopia.  We call on Eritrean forces to cease their military operations and withdraw from northern Ethiopia."

Joint Statement on Detentions in Ethiopia

 The United States and several Western governments released a "Joint Statement on Detentions in Ethiopia" on 6 December 2021.

The statement expressed profound concern at reports "of the Ethiopian government's detention of large numbers of Ethiopian citizens on the basis of their ethnicity and without charge."  It also expressed grave concern "at ongoing reports of atrocities being committed by all parties to the conflicts."

China's Investment in Africa Is Tiny Percent of Its Global Investment

 China's global outward foreign direct investment stock at the end of 2020 reached $2.58 trillion, according to a report released by China's Ministry of Commerce.  This ranks China just behind the United States and the Netherlands as reported by the Global Times.

China's Foreign Ministry spokesperson, Zhao Lijian, commented on 22 November 2021 that China's outward foreign direct investment stock in Africa now totals $43.4 billion, the fourth highest amount in Africa.  

Comment:  While Chinese outward FDI has increased significantly in the 21st century, what is even more striking is how little of it has gone to Africa.   

Investment in Africa: China vs. Traditional Partners

China in Africa The Real Story posted on 31 July 2020 an analysis titled "Investment in Africa:  China vs Traditional Partners" Part I and Part II by Thierry Pairault, research director at France's Centre National de la Recherche Scientifique. 

The author concludes that Africa's traditional investment partners have not abandoned the continent, but that Africa has gained a new and powerful partner--China.   

Investment in Africa: China vs Traditional Partners (in French)

Thierry Pairault posted on 23 January 2020 a study titled "Investissements en Afrique: La Chine et les 'Partenaires Traditionnels'".

Foreign direct investment stock in Africa as of 2017 shows that the 28 countries of the European Union are by far the largest sources of investment. Among individual countries, Netherlands is first at 100 billion Euros, France second at 54 billion Euros, United States third at 42 billion Euros, UK fourth at 39 billion Euros, and China fifth at 38 billion Euros. In 2017, investment stock from the Netherlands, France, US, and UK was below its highest level since 2012 while China reached its highest level in 2017. The largest amounts of China's investment stock as of 2017 were in South Africa (6.7 billion Euros), DRC (3.5 billion Euros), Zambia (2.6 billion Euros), Nigeria (2.6 billion Euros), and Angola (2 billion Euros).

Deciphering Chinese Investment in Nigeria

China-Africa Focus published on 6 October 2017 my brief analysis titled "Deciphering Chinese Investment in Nigeria."

Reporting on Chinese foreign direct investment (FDI) in Nigeria (and elsewhere) often intermingles the winning of contracts with FDI, giving the impression of more investment than is actually the case. While China is an important source of FDI in Nigeria, it is not as significant as often reported. According to U.S. State Department Office of Investment Affairs' estimates, Chinese companies have provided only about 6 percent of Nigeria's FDI stock, which is slightly ahead of companies from the United States but well behind those in the UK, Netherlands, and France.

Ethiopia: Foreign Investors Concerned

The Washington Post published on 2 November 2016 an article titled "Investors Shy Away from Ethiopia in the Wake of Violent Protests" by Paul Schemm.

The article concludes that Ethiopia's industrialization program is at risk of faltering--along with its impressive economic trajectory--as current investors reconsider options and new ones shy away.

See the posting below dated 29 October on the same subject.

Protests in Ethiopia Raise Questions for Foreign Investors

Frontera published on 17 October 2016 a commentary titled "Foreign Investors Under Attack in Ethiopia" by Jeremy Luedi, analyst at Global Risks Insights.

The author noted the attacks by protesters on foreign investment in Ethiopia, adding that drought conditions have contributed to the situation. He concluded that the "ham-fisted and belated response from the government only further undermines Ethiopia's image in investment circles."

The Guardian published on 26 October 2016 an account titled "Ethiopia Vows to Protect European Companies after Farms Attacked" by Laura Secorun.

The story concerns two Dutch companies, africaJUICE, owned 10 percent by the Ethiopian government, and FV SeleQt, a vegetable growing company. AfricaJUICE was largely destroyed and remains closed. The story suggests there were questionable land rights given to both companies.