November 10, 2025 – In a significant shift in global economic dynamics, the United States has overtaken China as the largest foreign direct investor in Africa for the first time since 2012. According to the latest annual figures from the China Africa Research Initiative (CARI) at Johns Hopkins University, the US invested $7.8 billion (£6 billion) across Africa in 2023 — nearly double China’s $4 billion investment during the same period.
A Turning Point in Africa’s Investment Landscape
For over a decade, China dominated Africa’s investment scene, financing massive infrastructure projects and resource extraction deals. But new data shows that the US is making a strategic comeback, quietly surpassing China in total investment volume.
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The US International Development Finance Corporation (DFC) is leading this new wave of investment, focusing on projects that promote sustainable development, energy security, and critical mineral partnerships.
Why Africa’s Resources Matter
The African continent holds some of the world’s richest reserves of critical minerals and metals — including lithium, cobalt, tungsten, and rare earth elements. These materials are essential for clean energy technologies, electric vehicles (EVs), and consumer electronics.
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With the global race for clean energy intensifying, both the US and China are vying for long-term access to Africa’s mineral wealth. The US’s renewed focus signals its intention to reduce dependence on Chinese supply chains and strengthen strategic economic partnerships across Africa.
A New Chapter in US–Africa Relations
Analysts say this marks a new phase in US–Africa relations, where investment is not just about profit but also geopolitical influence and sustainable development. The DFC’s involvement underscores Washington’s commitment to offering transparent, high-standard alternatives to China’s Belt and Road Initiative.
The shift in foreign direct investment (FDI) also reflects Africa’s growing importance in the global economy. As African nations expand digital infrastructure, renewable energy, and industrial capacity, both superpowers are competing to build influence and secure access to resources that will define the next industrial age.
Looking Ahead
The US overtaking China in African investments could reshape the continent’s economic alliances and development strategies. While China remains a powerful player in African trade and infrastructure, the latest figures suggest a more balanced investment landscape is emerging.
As competition for Africa’s critical minerals heats up, experts predict increased collaboration between African governments and Western investors seeking ethical sourcing, climate-resilient infrastructure, and long-term development partnerships.
