The United States has now overtaken China as Africa’s largest source of foreign direct investment, marking the first time it has held the top spot since 2012.
This shift is driven by a US government effort to secure supplies of essential materials such as cobalt and lithium, which are vital for electronics from smartphones to electric vehicles. Spearheaded by the US International Development Finance Corporation, this initiative aims to counter China’s long-standing dominance in the sector.
For African nations, this competition presents a significant opportunity to negotiate better terms, such as building local processing plants to capture more value from their resources. As global demand soars, Africa’s mineral wealth is positioning the continent at the heart of a new geopolitical and economic frontier.