The United States (US) has overtaken China as the biggest foreign direct investor in Africa, according to the China Africa Research Initiative of Johns Hopkins University, which accessed official data.

It marks the first time since 2012 that the US has regained the lead, as it looks to increase its access to critical minerals and metals.

China dominates the global supply of rare earths, which are used in everything from our smartphones to electric vehicles to fighter jets.

It has significant reserves at home, and access to supplies from overseas thanks to major investment in foreign mining operations particularly in Africa, which is rich in critical minerals and metals.

Beijing has also built up a dominant position when it comes to processing global supplies.

The US has been working overtime to try and create an alternative supply chain so they’re no longer dependent on China, inking rare earth deals in recent months with nations including Saudi Arabia, Australia and Malaysia.

African reserves are also seen as critical to that mission.

According to the latest annual figures, the US invested $7.8 billion across Africa in 2023, compared with $4 billion by China.

That reportedly includes American investment in mines in Rwanda.

Beijing has long cultivated ties with African governments by developing mines and building infrastructure through state-owned construction companies, often funded by loans.

The Brookings Institute says Beijing sees Africa as a critical source of raw materials to fuel its new productivity industries.

Some experts say that US President Donald Trump’s tariffs on African nations dampened enthusiasm for the US at a time when some countries are complaining that Chinese investment is not benefiting local populations enough.

Analysts say both the US and China could see increasing competition in Africa from the likes of Brazil, India and Japan.

–SABC–