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Asian powers will vie for influence in East Africa

Monday, March 12, 2018

Subject

Influence of Asian powers in Africa.

Significance

Before embarking on his ongoing visit to Africa, US Secretary of State Rex Tillerson warned African nations to be wary of Chinese investments in the continent, which he alleged created dangerous "dependency". The United States is not alone in this concern. Over recent years, India and Japan have massively increased their development engagement with Africa, trying to keep up with China’s expanding programmes -- and offset its growing influence.

Impacts

  • While concessionary loans are affordable at current interest rates, debt problems could emerge if rates return to historic norms.
  • Competition may also draw in Russia, Saudi Arabia, South Korea and Turkey, all of which are deepening their engagements in Africa.
  • East Africa’s salience in ‘Indo-Pacific’ rivalries risks alienating Australia, which lacks the capacity to project power so far afield.

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