Europe or China: Who is Africa’s biggest economic partner?

As the world pays more attention to Africa, two major players stand out: China and the European Union (EU). China often makes the news for building roads and offering loans and is therefore often perceived as Africa’s biggest trade partner and best ally. But the story is more myth than fact. The real question is not just about who gives more money. It is: who supports Africa to grow in a way that is sustainable – with jobs, schools, and strong economies?

China has become an important player in Africa over the past two decades, especially since the launch of the Forum on China-Africa Cooperation (FOCAC) in 2000. Trade, infrastructure projects, and loans have increased considerably. However, Europe remains Africa’s biggest trading partner, the top foreign investor, and the largest source of official development assistance (ODA).

ODA means government support that helps countries improve, for instance, schools, hospitals, and jobs in other countries. The EU and most of its Member States are part of the OECD’s Development Assistance Committee (DAC), which checks and reviews how development money is spent. This means the European Union and its countries work together to offer support that helps African societies directly – and they keep track of where the money goes. In 2022, the EU and its Member States provided $19.9 billion in ODA. China, which does not report under OECD rules and often mixes aid with business loans, is estimated to have delivered between $7.9 and $5 billion in foreign aid the same year.

A stark difference in foreign direct investment

When it comes to investment, the EU leads by far, with a total of €309 billion Foreign Direct Investments (FDI) in Africa in 2022. This investment is expected to grow with the EU’s Global Gateway Strategy, launched in 2021. The strategy focusses on building sustainable infrastructure and strong economic partnerships, with more than half of its major projects aimed at Africa – especially in energy, transport, digital technology, and farming.

Although modest compared to China’s FDI in other regions, Chinese FDI flows to Africa have increased steadily since 2003, up from $75 million to $3.96 billion in 2023, with key destinations being Niger, South Africa, Angola, and the Republic of Congo that year. Across Africa, China has funded critical facilities, including roads, railways, ports and networks, and government buildings. But many of these projects – like the Mombasa-Nairobi railway in Kenya – come with heavy, strongly conditioned loans, and China has slowed down its spending recently.

And the same in trade balance

Trade patterns also show big differences. With Europe, Africa sells more than it buys – which means Africa has a trade surplus from that partnership. In 2022, Africa exported $247 billion in goods to the EU, while importing $187 billion. But with China, it is the opposite: Africa exported $118 billion and imported $164 billion, leading to a $40 billion trade deficit in China’s favour. That means Africa spends more than it earns and more money leaves the continent than stays. This also shows how much China depends on African raw materials and how important it is for Africa to start exporting more finished products that bring more value.

Both China and Europe want to work with Africa. But the key question is: which partnership helps young Africans build a future with better jobs, stronger education, and growing economies run by Africans?

Europe imports more African goods, invests more long-term, and engages in development support with clear checks and accountability. China offers financing and infrastructure but has yet to match the EU’s scale of investment or trade balance.

So, is China really Africa’s biggest and best partner? The easy headlines might say yes, but the facts tell another story. When it comes to lasting growth, meaningful jobs, and real investment in people, the partnership Africa has with the EU is stronger in all categories. It’s time to look past the myth and follow the money, the impact, and the future. Because Africa doesn’t just need noise – it needs partners who build with us, not just for us.