Home  /  Newsroom  /  Insights  /  China's influence in Africa: Challenges and strategic implications

China's influence in Africa: Challenges and strategic implications

The debt trap, economic growth and geopolitical ambitions

Introduction

China’s economic presence in Africa has expanded significantly over the past two decades, driven by infrastructure development, trade and geopolitical strategy. The Belt and Road Initiative (BRI), launched in 2013, has accelerated Chinese investments in Africa, particularly in infrastructure, energy and mining. However, this engagement has raised concerns over debt sustainability, environmental impact and socio-economic consequences, including labour practices and trade imbalances. This paper examines how China-Africa relations have developed, highlighting opportunities and challenges while also analysing the broader strategic implications.

Historical Context and Strategic Drivers

China’s engagement with Africa has historical roots dating back to the 1950s when it supported newly independent nations through financial aid and infrastructure projects. This relationship, initially political, shifted towards economic pragmatism by the late 20th century. The Forum on China-Africa Cooperation (FOCAC), established in 2000, institutionalised economic ties, reinforcing China’s position as an alternative development partner to Western nations.

China’s interest in Africa is largely resource-driven, with the continent supplying oil, minerals and agricultural products to fuel China’s industrialisation. In return, China exports manufactured goods and infrastructure expertise, deepening economic interdependence. The BRI has further reinforced China’s strategic presence, providing loans and investments in key sectors such as transportation, energy and telecommunications.

Infrastructure Development: Opportunities and Risks

China has played a crucial role in addressing Africa’s infrastructure deficits. Projects such as Kenya’s Mombasa-Nairobi Standard Gauge Railway and the Djibouti-Ethiopia Railway have enhanced regional connectivity and trade. Chinese state-owned enterprises (SOEs) dominate infrastructure development, constructing roads, bridges and energy projects across the continent.

While these investments have accelerated economic development, they often come with high debt burdens. Many projects are financed through Chinese loans, frequently backed by natural resources. Countries like Zambia and Djibouti have faced financial difficulties, raising concerns about the long-term sustainability of Chinese-funded projects. Critics argue that such lending practices risk creating “debt-trap diplomacy,” whereby Beijing gains strategic leverage over indebted nations.

Additionally, Chinese infrastructure projects have been criticised for relying on Chinese labour rather than the local workforce, limiting skills transfer and job creation. Social tensions have emerged in countries like Zambia, where local communities demand greater involvement in development projects.

Trade Imbalances and Economic Dependency

China has been Africa’s largest trading partner since 2009, with trade reaching $282 billion in 2022. However, the trade relationship is heavily imbalanced. African nations primarily export raw materials such as crude oil, copper and cobalt, while importing high-value manufactured goods from China.

This pattern reinforces Africa’s traditional role as a resource supplier, limiting industrial diversification and economic transformation. Countries reliant on commodity exports, such as Angola and Nigeria, remain vulnerable to fluctuations in global demand. While some diversification efforts are underway – such as South Africa’s exports of platinum and agricultural products – many African economies remain dependent on China’s industrial needs.

Africa must shift from raw material exports to industrial production and value-added manufacturing to achieve long-term economic sustainability. This requires greater investment in technology, education and infrastructure to support local industries.

Debt-Trap Diplomacy and Financial Risks

China’s lending strategy has not only fuelled infrastructure expansion but has also led to rising debt levels in many African countries. Loans often lack transparency and some debts remain hidden from official records. In response to mounting financial pressures, China has renegotiated loans with several African nations; however, concerns persist over sovereignty risks when countries default.

The case of Sri Lanka’s Hambantota Port, leased to China after debt default, has heightened fears that African nations may face similar outcomes. Djibouti, which owes China about 70% of its GDP in debt, is cited as a potential example where strategic assets may be leveraged for repayment. Although China rejects allegations of coercive lending, the long-term financial burden of Chinese loans remains a contentious issue. 

This model of leveraging economic development for strategic advantage is central to China’s global strategy. Beijing’s financial involvement in African countries often includes a policy of restructuring debts to countries that would likely struggle to access the capital markets. China’s loans are typically offered to nations with low credit ratings, which often do not have the option of turning to traditional sources of financing. To protect its interests, China secures the assets tied to loans, often leveraging natural resources such as oil, gas and minerals to mitigate the risk of default. For example, China has taken oil from Sudan, gold from Tanzania and copper from Zambia as compensation for unpaid loans.

One major issue tied to China’s financial dealings in Africa is the hidden debt problem. Currently, almost half of Chinese loans in sub-Saharan Africa are not recorded in official government debt registers. This hidden debt poses a significant risk to global financial stability, as it allows governments to continue borrowing despite already unsustainable debt levels. Hiding some debt allows these countries to maintain access to financing, but it sacrifices long-term fiscal sustainability.

China's financial assistance has been crucial to addressing Africa's infrastructure gaps, but dependencies that are increasingly difficult for many countries to manage are also being fostered. The practice of debt renegotiation, reliance on resource-backed loans and strategic infrastructure investments all increase China's political and economic leverage over African countries, raising concerns about long-term sovereignty and financial stability.

Geopolitical Strategy and Military Presence

China’s investments in Africa are not purely economic but also serve broader geopolitical objectives, particularly through the BRI. The latter seeks to enhance China’s global trade connectivity by linking countries through infrastructure projects, trade routes and logistics networks. In Africa, China’s focus on infrastructure and energy projects aligns with its broader strategic objectives of securing access to key resources and strategic locations.

One notable example is China’s increasing presence in North Africa, particularly in Egypt. With its control over the Suez Canal, Egypt serves as a critical juncture for China’s maritime trade routes between Asia, Europe and Africa. In 2022, China invested $18.2 billion in Egypt, focusing on projects related to industrial zones and the development of new infrastructure. These investments not only enhance China’s economic ties with Egypt but also bolster its influence in the region and strengthen its position in global trade. Similarly, in the Horn of Africa, China’s military base in Djibouti plays a strategic role in securing maritime routes in the Red Sea and the Gulf of Aden, vital for global trade and energy shipments. The base, established in 2017, represents China’s growing military footprint on the continent and highlights the intersection of economic and geopolitical interests. Djibouti’s strategic location also makes it an essential partner for China’s BRI, with projects like the Djibouti-Ethiopia railway serving both trade and military objectives.

Environmental and Social Concerns

While China’s investments in Africa have catalysed economic development, they have also raised serious concerns about their environmental and social implications. The demand for minerals such as cobalt, copper and oil to fuel China’s industrialisation has led to increased mining activities across Africa, particularly in countries like the Democratic Republic of Congo (DRC), Zambia and South Africa. However, these activities have had detrimental effects on local ecosystems, including deforestation, soil erosion and water pollution.

In the DRC, for example, Chinese mining operations have been associated with environmental degradation and human rights abuses. Local communities have raised concerns about the lack of environmental safeguards in Chinese mining practices, leading to protests and calls for greater accountability from both the Chinese companies and African governments. While Chinese companies have made some efforts to address these concerns, the lack of robust environmental regulations in many African countries makes it difficult to enforce sustainable practices.

Social issues have also emerged from the reliance on Chinese labour in infrastructure projects. Many Chinese construction firms operating in Africa prefer to bring in their own workers rather than hiring local employees, leading to limited job creation for African communities. This practice has generated resentment; as local populations see few tangible benefits from the massive investments made in their countries. Additionally, the lack of skills transfer from Chinese workers to local workers means that African countries are not fully leveraging these projects to build human capital and technical expertise.

Conclusion

China's involvement in Africa has both good and bad sides. Investment is good for growth, but there are concerns about sustainability, trade, the environment and labour practices. Investment in transport, energy and industry has been vital. But there are challenges.

If the partnership is to remain sustainable, pressing issues must be addressed. Many African countries are increasingly vulnerable due to debt, often tied to natural resources. Their ability to repay this debt is a major concern.

To ensure a successful future with China, the key is for Africa to reduce dependence on exports, ensure equitable growth and improve debt management. Diversifying economies through investment in technology, agriculture, manufacturing and services can create more sustainable sources of income while reducing dependence on commodities. All of Africa must benefit from Chinese investment. This requires stronger local industries, entrepreneurship and better education and skills development. 

Environmental and social sustainability must be prioritised by Africa and China. A balanced approach to relations between them is key. Continued dialogue, cooperation and commitment to mutual benefit are essential. In a more interconnected world, Africa and China have the opportunity for a mutually beneficial partnership. A stable Africa is valuable to China. Its growing influence offers opportunities for growth and integration. A managed partnership can promote global cooperation, sustainable development, fair opportunities and respect. By addressing challenges, the China-Africa partnership has the potential to strengthen the global economy by benefiting the economies of both regions.

Story by Capt. ITA ARMY Fabrizio MINNITI (NRDC-ITA)