China’s Belt and Road Initiative has won it many friends in Africa. Now the US is fighting back with a suite of packages to help the development of the continent and minimise Chinese influence, writes Hagan Sibiri.

Just after meeting with Chinese President Xi Jinping in San Francisco on 15 November 2023, US President Joe Biden emphasised that the US and China are in competition. One region where the two major countries have been in systematic and strategic competition for economic and geopolitical influence is Africa.

Thanks to its aid and investment activities, China has won the hearts and minds of many African leaders. At the core of China’s deepening influence is the impact of its ambitious Belt and Road Initiative (BRI). The BRI is President Xi’s key foreign policy strategy initiative for global infrastructure development, aimed at establishing land and maritime connectivity across Asia, Europe, Africa, and Latin America. As of October 2023, China has entered into over 200 BRI cooperation agreements with more than 150 countries and 30 international organisations.

Ghana is pursuing an ambitious “Ghana Beyond Aid” policy, which aims to wean the country off foreign aid and focus on attracting investment. Infrastructure development is a critical component of this strategy and so China’s BRI has become a vital component of realising the policy goals. In 2018, Ghana signed a Memorandum of Understanding with China to be part of the BRI. However, recent developments, including debt burden and local opposition, have tempered the government’s enthusiasm. The US is keen to make the most of the hesitation.

Ghana and the BRI

Ghana’s participation in the BRI can be divided into two main components: infrastructural development and debt sustainability.

A major aspect of Ghana’s BRI deal is a programme of resources-for-infrastructure. Per the terms of the agreement, Ghana will exchange refined bauxite for the construction of road projects in Ghana. As the world’s leading aluminium producer, China relies on imported bauxite, the critical raw material for alumina production, to meet its domestic industry demands.