The Scramble for African Deals?

Following on his visit to the U.S., President Hu Jintao of China is visiting Africa this week—his second state visit there in three years. As is the case with many such high-profile visits, they are only the tip of the iceberg, Chinese trade and energy officials have recently put a great amount of effort into building up relations throughout Africa. China has invested heavily in energy resources in Africa and its trade with Africa in 2005 jumped up about 39%. China even had peacekeepers in Liberia—but also wielded its veto to thwart further Security Council action on Darfur. According to reports, Hu will use this visit to focus on trade and energy:

• In Morocco, he will be meeting King Mohammed VI to sign a series of cooperation deals to enhance trade
• In Nigeria, a $2 billion deal has just been approved under which China’s offshore oil corporation will take a 45% stake in an offshore oilfield
• In Kenya, China is a major player in electrifying the country, including rural Kenya, and Chinese companies are expected to start looking for oil there too.

I am particularly interested in the Nigerian deal as the Bush Administration has also flagged Nigeria as a key U.S. oil supplier in the coming years. As the BBC noted:

There are also concerns in Washington that China’s growing clout will undermine American interests.

The US is also looking for energy on the continent, which could lead to a growing competition for influence in Africa.