Sat 31 Jul, 2010
The dragon in Africa: An overview of China’s presence on the continent -Ibtimes.com
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(Photo A Kenyan boy looks at the East African Marine Cable (TEAMS) fiber optic cable from the ship Niwa outside the Portuguese built Fort Jesus in the Kenyan coastal city of Mombasa, June 12, 2009. The cable has taken 18 months to reach the Kenyan coast by sea from the Middle East and is set to improve information and communication technology in Africa. REUTERS/Joseph Okanga (KENYA BUSINESS IMAGES OF THE DAY)
China, an emerging global superpower which will likely become the world’s biggest economy within fifteen years, has planted itself deeply into the vast continent of Africa — a land of huge untapped natural resources and incredible growth potential.
It would seem to be an ideal marriage — China possesses immense intellectual capital and an inexhaustible appetite for commodities to keep its economic engines running, while much of Africa remains poor and in dire need of external assistance.
The two-way trade between China and Africa is expected to exceed $100-billion this year — but that is only a pittance of what the future holds.
China’s interests in Africa is nothing new, of course, but only in the past two decades have these giant entities established a firm and burgeoning economic cooperative.
It could be argued that China moved into Africa only after the U.S. and Russia began to scale back their presence on the continent after decades of using it as a ‘Cold War’ chessboard.
In October 2000, Beijing created the Forum on China-Africa Cooperation, which regularly holds summits between Chinese leaders and various African rulers to discuss and formalize deeper relations. China has become one of the continent’s leading investors and creditors.
From constructing a housing project in Algeria, to running a huge mining and infrastructure complex in Guinea, to an iron ore project in Liberia, to a massive dam enterprise in Ghana, to a highway construction endeavor in Rwanda, China has its fingerprints all over Africa. Indeed, China has established joint committees in at least 43 African nations to discuss and deepen economic and trade relations.
Of course, China’s incursions into Africa has drawn much criticism, particularly from the West which fears that China is simply using Africa to feed her own economy at the expense of indigent Africans (which, of course, was the same charge leveled at the European colonialists for centuries).
Chinese officials have also come under attack for their lack of transparency and accountability regarding its numerous activities in Africa and its apparent unwillingness to reduce political corruption on the continent.
In response to such criticism, Fu Ziying, the senior trade official in charge of China’s Africa portfolio, was recently quoted as saying: “China’s presence in Africa is becoming more and more market-driven, the actors operating there are diverse, there are many models, and the areas they are in are broad.
The Chinese government is more and more aware that as the economic and trade cooperation between China and Africa evolves, there need to be some laws and protections in place.”
In fact, China herself developed and modernized its own economy back in the 1970s and 1980s by talking loans from wealthier powers (in this case, Japan, among others) in exchange for mineral resources and oil. Within a few decades, China became an economic heavyweight and correspondingly became a net importer of commodities, rather than an exporter.
It would appear that the Chinese are now doing something similar with resource-backed lending in Africa (with China now as the dominant benefactor).
In “The Dragon’s Gift: The Real Story of China in Africa” a book by Deborah Brautigam, a professor at
American University and an expert on China-Africa relations, she points out that while the Chinese presence in Africa is largely benevolent, there are many problems associated with this complex relationship. For one thing, working conditions in many China-funded projects in Africa are very poor; and the Chinese do not seem to view the destruction of the ecosystem and environment with much concern.
However, she also indicates that China has made tremendous infrastructure investments in countries like Rwanda, Kenya and Senegal, which lack significant commodities — thereby refuting the notion that China seeks only to ‘exploit’ Africa.
Moreover, China’s financial investments remains far below the capital that flows to the continent from Western sources.
Brautigam estimates that in 2007, Chinese investment in Africa totaled about $1.4 billion, far smaller than the outlays by the U.S., European Union and World Bank of $7.6 billion, $5.4 billion, and $6.9 billion, respectively, for that year.
Nonetheless, China will surely deepen its involvement in Africa in the years to come. Only time will tell how much the Africans benefit from this relationship.





















