Soft Resource Wars.. Why can't Arabs invest in Africa seriously?

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There is no case of success among developing countries to deviate from the capitalist plan, except the experience of the BRICS grouping.
 
Afrasianet - Africa is a precious treasure, but it is hidden behind a curtain, deliberately hidden by major powers, especially the United States, and harnessed to benefit from it. The strange thing is that at the same time that the world is fighting for raw materials and energy sources, we find that a treasure full of vast natural resources and investment opportunities that could change the world map economically  , financially and even politically has not been utilized.


Since the beginning of the third millennium, the summits of the economic partnership have continued between Africa and the major and emerging countries, with America, China, the European Union and Turkey, and there was an Arab-African summit, but it did not receive what the events won with other entities. Arabs seem to be barred from investing in Africa by a U.S. decision that embodies the principle of soft resource wars. Because the rich Arab regimes are at the disposal of American approaches, they often obey these trends, despite the certainty that these trends are inevitably against their interest.


Despite the fact that most African countries have been under foreign occupation for long periods, and the plundering of their wealth, as well as the absence of a development project in most of their countries, the continent still retains natural resources in the field of agriculture and minerals in large proportions, which makes the major countries keen on their economic partnership with African countries.


The population of Africa is about 1.3 billion people, and the geographical area is about 30.2 million square kilometers, and the continent is expected to witness a significant increase in the coming years, and the gross domestic product is estimated at about 2.5 trillion dollars, and the economic growth rate in 2018 was about 4.3%.


Africa produces about 5.2 million barrels of oil per day, and has about 12% of its global reserves, and about 10% of the world's gas reserves, and there is no doubt that the ambitious growth rates of Africa during the coming period will make it in dire need of all its reserves of oil and gas, and therefore many African countries are heading to benefit from the production of renewable energy.


Africa also has 18% of the production of uranium used in the nuclear industry, has 33% of the world's reserves of this ore, and produces 40% of the world's diamond production.


Africa accounts for 25% of the world's gold production and has 50% of the world's gold reserves.


In addition, Africa has vast areas of arable land, estimated at 60% of the world's agricultural land, but it is not optimally exploited, and much of it is uncultivated.


that Economics and politics are two sides of the same coin, albeit Arab-African Summits Others take an economic façade, but political projects are wrestling in Africa in full swing, and there is no objection to benefiting from Africa's resources, which are represented in raw materials, as well as the state of political stability and the relative democratic progress of African countries, which has enabled Africa to be an active market for finished goods and products.


Strategic partnerships depend on the exchange of current and future interests, not talking about the depth of historical relations, so the results of the Fourth Arab-African Summit can be considered a dedication to an Arab-African band and not a strategic partnership. Referring to the Unified Arab Economic Report 2015, it was found that the geographical distribution of the foreign trade movement of the Arab world is completely devoid of the presence of Africa as a regional entity or even at the level of countries among the main partners of the Arab world, whether in the field of exports or imports.


Similarly, in Africa, China has been the main partner of Africa since the beginning of 2000, with its active export movement, as well as the bridge of economic and cultural cooperation relations such as educational grants, financing of infrastructure projects, debt forgiveness and other economically rewarding measures.


What the figures of the Unified Arab Economic Report on Africa monitor comes within the framework of development and economic aid, where Africa received 20.1% of the financing operations for Arab development institutions in 2014, amounting to $ 3.1 billion, and we can imagine this figure within the framework of about 46 African countries (the number of non-Arab African countries).


If we refer to the volume of trade exchange between the Arab and African groupings, we are talking about about seventy countries, and the trade exchange between them does not exceed thirty billion dollars annually, and oil is a major factor in these dealings, and therefore trade exchange tends in favor of Arab countries, and at the same time we find that the trade exchange of China alone with Africa exceeds 130 billion dollars annually, and this is the difference between the real quest to find a strategic partnership and the talk that does not exceed meeting rooms. There are banners that raise Within the framework of relations between groupings of developing countries since the sixties of the twentieth century, such as "South-South" cooperation, but the reality reflects quite otherwise, as the performance of the economies of these countries is confirmed that they follow the framework of the capitalist scheme governing international economic relations, which is the theory of "center and axis" where each group of developing countries is linked to one of the major capitalist countries  , usually the country that was colonizing this group of developing countries.


There are no trends to break the barrier of dependence on the dictates of the United States of America except the "BRICS grouping", as there is no case of success among developing countries to deviate from the capitalist scheme, except for the experience of the "BRICS" grouping, where this grouping was able to bring about a state of balance in international economic relations, although the experience is still at the beginning, but it is certainly a promising experience. The Gulf states can follow the example of Algeria, Egypt and others that really want to break free from U.S. dependence.


Looking at Arab-African relations, it is noted that they suffer from a set of problems, as these countries, whether Arab or African, have competing economic characteristics, for example, the exports of Arab and African countries depend on primary commodities, and at best on the export of some traditional goods with weak added value.


Both Arab and African countries compete to attract foreign investments, and these countries lack the production of technology, and are forced to import tools and machines from the West and recently from China,India and some other emerging countries, in addition to the non-entry into force of bilateral economic agreements, and there is no regional system in  the entities of the League of Arab States or  the African Union that commits these countries to targets within the framework of cooperation, integration or real economic partnership.


Hence, trade and economic relations between Arab and African countries come within the framework of competition and not integration, and talking about the possibility of a strategic partnership between the two parties is a matter of media or political courtesies, and does not have a share of the current reality or the foreseeable future at the short and medium  term levels.


Although the reformulation of Arab-African relations in the form of a project between two regional entities, the League of Arab States and the African Union, came through two summits, one in Libya in 2010 and the second in Kuwait in 2013, they did not replace the state of precedence by international powers and emerging countries that have the potential for real partnership, but  the history of the strategic partnership for the relationship between Arabs and Africa begins with  the Cairo Conference. In 1977, however, the status of the summits in Libya and Kuwait reflected better economic possibilities, as Arab countries had financial savings from the high price of oil that lasted for more than a decade, and for Africa and elsewhere it was a target for attracting investment or growing trade and economic relations.


But with the holding of the fourth summit in Malabo, the capital of Equatorial Guinea, we find that the situation of the Arabs is more vulnerable, and no longer helps a real existence in the reality of African economies, as the Arab surplus countries have become suffering from the deficit of public budgets and the adoption of austerity programs, and are working to attract foreign investments, and even the Arab oil countries turned to external debt after starting domestic debt in 2015.


Estimates of the struggle of global economic powers in Africa are no longer confined to the European Union, China andUnited StatesBut the scene is dedicated to a real conflict between other entities from Turkey, Iran and Israel, which have had an extended presence for the past four decades..


U.S. involvement to dominate the theft of African resources increased under investment rubrics when U.S. President Barack Obama pledged that U.S. companies would invest $14 billion in Africa in sectors such as energy and infrastructure.


Obama announced the amount at the first Africa-United States summit, which was attended by more than 40 African leaders.


The summit aimed to strengthen U.S.-African relations in the face of increasing Chinese investment in Africa.


The deals agreed include a $5 billion partnership agreement between private company Blackstone and Africa's richest infrastructure and energy businessman Aliko Dangot, in sub-Saharan Africa, and other investments under Obama's Africa Investment Initiative.


The World Bank announced a $5 billion investment under Obama's Africa Initiative, and General Electric committed $2 billion to support Africa's infrastructure and energy supply.
General Manager Jeff Immelt said: "We left it first to the Europeans, then to the Chinese, but today its doors are open to us."


Obama said the United States would give an additional $7 billion to fund the Africa Investment Promotion Campaign, bringing the total U.S. investment commitments in Africa announced to $33 billion.


 Since 2021, the U.S. government has struck more than 800 two-way trade and investment deals across 47 African countries with a total value of more than $18 billion, and the U.S. private sector has closed $8.6 billion worth of investment deals in Africa. The total U.S. goods and services traded with Africa in 2021 amounted to $83.6 billion. These investments and programs support the comprehensive initiatives PGII and the Bloom of Africa and the energy of Africa.


At the U.S.-Africa Business Forum, President Biden announced more than $15 billion in trade and investment commitments, deals and partnerships that advance key priorities, including sustainable energy, health systems, agribusiness, digital connectivity, infrastructure and finance. The Biden-Harris administration has invested since January 2021 and plans to invest more than a billion dollars in trade, investment and economic development in Africa.


So, can it be said that the state of Arab division resulting from political and war conflicts is not suitable for Arabs to establish strategic partnerships with Africa or other regional powers? But I think it is time for the GCC countries to start developing a collective organized scheme that encourages their entrepreneurs and motivates their startups to come to the black continent and benefit from its vast natural resources, and to innovate investment programs that benefit the black continent, and at the same time benefit the Gulf market, which is looking to develop its food capabilities, expand its natural resources and diversify its investment sources, and as we said, the road will be paved through the BRICS grouping, which will be a sure guarantor for its members from the effects of the crude American intervention.


After all these numbers ... Will America allow Arabs to invest in Africa? Can their rich people rebel against American dictates? It's a must-have necessity.

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