G20 Summit proposals reflect new scramble for control of Africa’s human and material resources
The recent summit meeting of the G20 countries in Hamburg, Germany, was the occasion for increasing contention between the big powers over the wealth of the African continent. The governments of Britain and Germany were the most active, both in response to the unprecedented activity of China, which now dominates Africa’s international trade. The new scramble for control of Africa’s human and material resources is well under way.
The government of Germany (which currently chairs the G20) hosted a special conference on Africa held in June this year and attended by nine African heads of state and representatives of the IMF, World Bank and African Development Bank as well as government ministers and the German chancellor, Angela Merkel. As in the past the focus was establishing a so-called ‘partnership’ between the world’s twenty most powerful countries and the African continent. The outcome of the conference was the ‘Compact with Africa’ which, amongst other things, aims at encouraging the further penetration of Africa by the big financial institutions. This, it is claimed, is the best way to provide employment for Africans and thereby stem the constant flow of migrants forced to seek a livelihood in Europe, many of whom have ended up in Germany. Several African countries, Egypt, Tunisia, Morocco, Senegal, Cote d’Ivoire, Rwanda and Ghana have agreed to be part of this compact. In addition, Cote d’Ivoire, Tunisia and Ghana have also agreed to seek further collaboration with Germany leading to more enslaving ‘aid,’ in exchange for even greater penetration of these economies by Germany’s financial institutions. Regarding Cote d’Ivoire, there is some evidence that Germany is seeking to increase its activities in Francophone Africa in contention with France.
The government of Germany (which currently chairs the G20) hosted a special conference on Africa held in June this year and attended by nine African heads of state and representatives of the IMF, World Bank and African Development Bank as well as government ministers and the German chancellor, Angela Merkel. As in the past the focus was establishing a so-called ‘partnership’ between the world’s twenty most powerful countries and the African continent. The outcome of the conference was the ‘Compact with Africa’ which, amongst other things, aims at encouraging the further penetration of Africa by the big financial institutions. This, it is claimed, is the best way to provide employment for Africans and thereby stem the constant flow of migrants forced to seek a livelihood in Europe, many of whom have ended up in Germany. Several African countries, Egypt, Tunisia, Morocco, Senegal, Cote d’Ivoire, Rwanda and Ghana have agreed to be part of this compact. In addition, Cote d’Ivoire, Tunisia and Ghana have also agreed to seek further collaboration with Germany leading to more enslaving ‘aid,’ in exchange for even greater penetration of these economies by Germany’s financial institutions. Regarding Cote d’Ivoire, there is some evidence that Germany is seeking to increase its activities in Francophone Africa in contention with France.
These proposals have been adopted by the G20 as part of a more general ‘partnership’ with Africa which requires individual agreements between individual G20 members and African countries. The British government has also been eager to take advantage of the opportunity in the context of developing what it refers to as ‘Global Britain.’ Speaking at the summit Prime Minister Theresa May made an announcement of what was referred to as an ‘ambitious package of support to create new wealth in Africa,’ but which appears to be a new way of removing wealth from Africa for the benefit of the big financial institutions. According to May, one of the key elements will be the so-called London Centre for Global Disaster Protection, a means to provide insurance to cover various disasters in Africa such as drought and famine, which will allegedly decrease the need for what is referred to as ‘humanitarian aid.’ The government therefore plans to assist in building the insurance sector in African and other exploited countries as well as other measures to ‘help Africa integrate into global financial markets.’ This at a time when capital is flowing out of the African continent at a massive rate both by legal and illicit means. According to reports illicit capital flows may be as much as $60 billion each year. It is also clear that the British government’s new initiative is designed not only to increase the impoverishment of Africa but far from allowing Africa to develop its own independent financial institutions is also designed to create ‘more opportunities for London to become the finance hub for Africa.’ In short these and other measures aim to further the penetration of the big financial institutions in Africa and thereby maintain the foreign economic domination of the continent by Britain and the other big powers.
Both the governments of Britain and Germany claim that such measures will create jobs and lead to economic growth in Africa and by such means the problem of African refugees venturing to Europe will also be addressed. Critics of yet another new partnership for Africa point out that most African countries have not even been consulted. While nine African governments attended the conference in June only four were invited to the later G20 summit. History provides no evidence that ‘open markets, free trade, private investment’ have solved Africa’s economic problems, rather they are a cause of its underdevelopment and dependency and its peoples’ impoverishment.
These efforts by both Germany and Britain, as well as other G20 countries including India, have little to do with concern for the millions of impoverished Africans but can be seen in part as a response to the influence of China in Africa, now said to have over 10,000 companies active in the continent employing several million Africans, handling over 12 percent of the continent’s industrial production, over 50 percent of all internationally contracted construction. China-Africa trade was valued at $300 billion last year. China’s economic and military rivals such as Britain have thus been compelled to intensify their efforts in Africa whether under the guise of combatting terrorism or alleged humanitarian concern. There can therefore be no illusions about the British government’s intentions nor the aims of other G20 countries. The demand must be for Britain and the other big powers to get out of Africa.