Obama plays catch up with China in the scramble for Africa's resources

US President Barack Obama on Monday opened a three-day Summit of 50 African heads of state and government in Washington.

The Summit, the largest event any US President has held with African leaders, builds on Obama’s trip to Africa last year and seeks to strengthen ties between the US and one of the world’s most dynamic and fastest growing regions.

Opening the August 4 to 8 Summit, Obama said the US is committed to Africa’s security, its democracy and the development of her people.

The thrust of the summit, however, highlighted the depth and breadth of America’s commitment to Africa and laid a foundation for dialogue on concrete ideas to deepen partnerships between parties who have fast been drifting apart.

Eloquent expressions

It is not lost to observers that it was on trade with and investment in Africa that Obama and his Vice President Joe Biden found their most eloquent expressions – inviting the first US-Africa Leaders Summit “to do even more business together”.

From the body language, speech and mien, Obama signaled the dawn of a new era of mutual respect between US and Africa. Obama spared no expense in wooing African leaders – appearing in numerous speed dating photo ops with Presidents, some of who he has been critical about and hosting them to a White House Dinner, a gesture previously reserved for a select few from Africa, and of course European leaders.

Addressing the US-Africa Leaders Summit, Obama said the US is determined to be a partner in Africa’s success.

“We want to be good partner, an equal partner, and a partner for the long term,” he said. He discussed pledges of more than $14 billion by various American businesses for help with projects involving clean energy, aviation, banking and construction – sectors that China is increasingly eyeing.

Coca-Cola will help provide clean water, General Electric will assist with infrastructure development, and Marriott will build more hotels, Obama said.

In a subtle broadside at China, he said US does look to Africa simply for its natural resource. “We recognise Africa for its greatest resource, which is its people and its talents and their potential,” Obama said. He announced $14 billion private investment in Africa in what has now been described as “playing catch-up with China on the continent”.

Renewed competition

James Shikwati, Executive Director of Inter Region Economic Network and Economist, said through the Summit, Obama officially signaled renewed competition for a piece of Africa with China.

“The US-Africa summit is yet another opportunity for the US to flex its muscles and counter China’s growing influence on the continent,” Shikwati said, adding that Africa is the winner, at least in the short term as competition for her attention and resources intensified.

China thumped the US as Africa’s largest trading partner in 2009, the same year Obama started his first term as president. The past years under Obama’s rule saw US trade with Africa decline. China’s trade with Africa rose to $200 billion last year – largely made up of Beijing’s imports of oil and minerals, and export of electronics and textiles – more than double the US and far ahead of the European Union.