Mon, 10 Nov 2025

Mon, 10 Nov 2025 How the US overtook China as Africa's biggest foreign investor

As the two nations vie for key materials, the US has regained the lead in foreign direct investments in African countries.

* The US has overtaken China as the biggest foreign direct investor in Africa, with $7.8bn invested across the continent in 2023.
* This investment is being led by the US International Development Finance Corporation (DFC), which was set up to counter China's presence in strategic regions.
* African countries and firms are benefiting from this investment, such as Rwandan mining company Trinity Metals, which received a $3.9m grant to develop its mines.
* The DFC's mission is not just about accessing critical minerals and metals, but also about promoting Western values and standards, such as conflict-free sourcing and fair labor practices.
* African nations must be assertive in negotiating with US entities and should not expect favors, according to economist Sepo Haimambo.
* There is an opportunity for African countries to create sovereign wealth funds that can invest in developmental areas like education and healthcare.
* The US has missed a trick by imposing trade tariffs on African nations, which may have reduced enthusiasm for the US across the continent, says Prof Lee Branstetter.
* Going forward, there may be increased competition from other countries such as Brazil, India, and Japan.
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