African countries can exploit the opportunity created by the China-United States of America (US) and Russia – US conflicts to grow their economies if the right decisions are taken by leaders.

Chief Executive Officer, Centurion Law Group, Mr. N. J Ayuk, who stated this, yesterday, lamented that Africa suffers great infrastructure deficit.

Ayuk, who spoke against the backdrop of the Rusia-Africa summit in Sochi, said although the European Union remains Africa’s biggest investor and trade partner, China, US, and Russia offered the continent great investment prospects.

“China, US and Russia offer Africa investment opportunities, but also pitfalls rooted in their business approaches, but African leaders should pick the best possibilities for their people while avoiding the traps.

“The US, which has reduced its investment in Africa as the shale-oil revolution has minimised its need for the region’s oil, should help the continent diversify its economy away from petroleum and minerals.  This would not only benefit Africa, but also help the US’s interest because it would help the continent achieve longer-term stability,” Ayuk said.

Ayuk bemoaned the continent’s infrastructure deficit, saying,”Africa suffers from the world’s greatest infrastructure shortage. It needs trillions of dollars of roads, rail lines, airports, ports, and power generation and distribution facilities – all projects that China has had decades of experience with.

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“At first glance, a China-Africa infrastructure-development partnership would seem heaven-sent. But there are catches. One is that China likes to finance overseas projects with long-term loans that end up being a burden for many African countries. About 72 per cent or $5.3billion of Kenya’s bilateral debt is with China, and Zambia owes China $9billion for 19 infrastructure projects

“Chinese construction companies also want their nationals to do the important engineering jobs, thus preventing Africans from obtaining cutting-edge skills on the job. Despite this, most Africans welcome the infrastructure the Chinese have built. The long-term loans are worth it, they say, because they now have roads, railroads and power facilities that improve their lives and offer business opportunities.”

Ayuk said US companies have a history of investing through joint-venture partners in Africa, rather than financing projects with loans that Africa must repay.

“They also buy into the local content proposition giving Africans on-the-job training and improving their manufacturing skills by buying parts and equipment from local companies. The key problem with the US’s corporate investment in Africa is there is less than before. It fell from $69billion in 2014 to $48billion in 2018, largely because the shale revolution created more opportunities for US companies at home with less risk.

“Two-way trade between the US and Africa encapsulates the situation. It dropped from $125bn in 2011 to $61bn in 2018 — although the 2018 figure was up from $48bn in 2016. The decline reflects the US importing a lot less oil from Africa than before,” he said.

Taking a look at the Russian engagement template, Ayu said, “Russia began re-engaging with Africa a half decade ago after neglecting the continent for two decades in the wake of the Soviet Union’s collapse. Its big state-owned companies have invested mostly in the energy sector, including building nuclear plants, and in minerals extraction.