Africa will not accept that it “should continue to be a source of raw materials for the rest of the world,” the African Union’s trade commissioner told the BBC.
Albert Muchanga says his continent instead wants a future of “genuine and mutually beneficial relationships” with its trading partners.
The African Union (AU) Presidency has been invited to the G7 summit in Japan as competition with China for Africa’s natural resources intensifies.
As Western powers seek stronger trade ties with the continent, leaders of France and Germany and the US vice president have visited numerous African countries in the run-up to the summit.
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Japan’s Prime Minister Fumio Kishida visited Egypt, Ghana, Kenya and Mozambique earlier this month to bolster African support for his efforts to counter Chinese and Russian influence on the continent, as well as Taiwan and Ukraine.
Speaking in Maputo on May 4, he said: “Many countries in the so-called Global South are suffering from high food and energy prices. The cause of this problem should be traced back to Russia’s invasion of Ukraine.”
Mr Muchanga welcomed the recognition of Africa’s problems. He says the disruptions caused by the Covid pandemic are also responsible for problems that are “multidimensional”.
“It’s a recognition that the North and the South want greater interdependence, and that’s welcome.”
The Zambian official says that with the era of colonialism now in the past, Africa wants to reap more benefits from this relationship by arming itself with the capabilities to retain a greater share of the economic value of its vast natural resources.
“We will not continue as historical sources of raw materials. That won’t work because the population is growing and looking for opportunities for good jobs, and these can only come from the manufacturing and agro-processing processes,” he says.
“A good example has been set by the Democratic Republic of the Congo and Zambia when they will develop a joint project to produce batteries for electric vehicles.” The two countries are major exporters of copper and cobalt, which are needed for the world’s growing batteries.
The United States is trying to strengthen its trade ties with Africa to combat climate change. During a visit to Tanzania in March, Vice President Kamala Harris highlighted a project that will benefit from US funding. She said it is a “first-of-its-kind processing plant on the continent for minerals used in electric vehicle batteries.” .
“It is important that raw minerals will soon be processed in Tanzania by Tanzanians. This will help tackle the climate crisis, build resilient global supply chains and create new industries and jobs.”
China’s trade ties with Africa hit a record $282 billion (£226 billion) last year, according to China Customs. That represented an 11% increase year over year as prices for commodities like oil, copper, cobalt and iron ore soared. It also means that Africa-China trade is nearly four times the size of US-Africa trade, which totaled $72.6 billion.
However, according to Florizelle Liser, director of the Corporate Council on Africa, a Washington-based organization whose goal is to boost US-Africa trade, “more manufactured and value-added products are shipped to the US than to China.”
Ms. Liser adds that Africans, “whether in government or in the private sector, really like working with US companies for a variety of reasons. They liked the American brand.”
“They liked the fact that when working with the Americans, there is often greater transparency in the relationship. And they also liked the fact that US companies are doing a lot in the area of skills transfer and technology transfer, but they don’t necessarily notice that with all the other partners, China and others.”
This lack of transparency in trade relations was recently criticized by outgoing World Bank President David Malpass, who told the BBC he was concerned about the long-term impact of Chinese loans to Africa and called for more transparency on international financial aid.
Billions of dollars have been spent on projects such as ports, railroads, and power grids. Despite the economic benefits, it has left countries like Ethiopia, Ghana and Zambia struggling to pay off their debts amid allegations that China is using them as leverage for political influence to meet its natural resource needs.
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During a visit by the Gabonese President to Beijing last month, China’s Deputy Foreign Minister Deng Li denied this, saying, “We are not bringing a so-called ‘debt trap’ with us. We bring development opportunities with us. We have never committed any political conditions to our aid and economic aid to African countries.”
Mr Muchanga of the African Union says: “China has done a really remarkable job in promoting infrastructure development across Africa through the Belt and Road Initiative.”
However, transparency in trade relations is very important, he says. “There shouldn’t be any hidden clauses. Unfortunately, there have been hidden clauses in the past.”
He adds: “Everyone at the negotiating table before signing the agreement should be clear about what they are signing. I think that’s the lesson we need to learn for the future.”
One way Africa is trying to strengthen its position on trade deals is through the development of the African Continental Free Trade Area. The African Union’s flagship project aims to break down trade barriers and boost trade within the continent, but has yet to be fully implemented.
“The next step is to transform it into an African Customs Union,” explains Mr. Muchanga, who hopes the AfCFTA will eventually allow its 54 members to increase their bargaining power with the rest of the world on trade issues in a similar way to the European Union .
Mr Muchanga says the AU’s invitation to the G7 summit is “an acknowledgment of Africa’s systemic influence on the global economy”.
“Africa really should be able to speak with one voice on all global economic issues.”
You can watch the full interview with Albert Muchanga here Talk business with Aaron Heslehurst on BBC News. Viewers in the UK can watch on BBC iPlayer from 11:30am on Saturday. In other countries, it runs on Saturday at 10:30 and 23:30 GMT, on Sunday at 05:30 and 16:30 GMT and on Monday at 07:30 GMT
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