Viewpoint: Africa must do more to profit from China

 
A picture taken on April 19, 2012 shows people working on the assembly line at Huajian shoe factory in Dukem, Ethiopia. Chinese businesses are viewed with mixed feelings in the region

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Chinese investment in Africa has escalated rapidly over recent years, but what are the implications of China's foray in the continent, asks expert in China-African relations Solange Guo Chatelard.

China is an economic powerhouse with long-term ambitions in Africa. Like Brazil, Russia and India, it is here to stay.

Asking whether China is good or bad for the continent is not only beside the point, it distracts us from more pressing and relevant questions, such as what do African states want to gain from these new partnerships, and what are they doing to achieve this?

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China is now Africa's largest trading partner, surpassing the United States and its traditional European partners. Commercial ties between the two regions exploded since 2000, leaping from $10bn (£6.3bn) to over $100bn in the last decade.

The towering new African Union headquarters in Addis Ababa was a largely welcomed $200m gift from Beijing and a clear testimony of China's intention, and ability, to engage with individual states as well as an entire continent, presenting it with new opportunities and challenges.

China and Africa's growing trade relationship in figures

The intensification of economic ties has led many critics, chiefly based in the West, to question China's motives.

Investment welcomed?

While some argue that China is a 21st Century partner for development and a unique catalyst for growth, critics fear that China is a new colonial power, plundering Africa's natural resources and exacerbating existing patterns of corruption and inequality.

China's top five trading partners in Africa (US$, 2010)

Country Trade value

Source: China Customs data; Frontier Advisory analysis

1. Angola

$24.8bn

2. South Africa

$22.2bn

3. Sudan

$8.6bn

4. Nigeria

$7.8bn

5. Egypt

$7.0bn

Advocates claim that China's rise has benefited the continent by injecting unprecedented investment, dynamism, and confidence into local markets, generating important gains for local economies. Critics, in contrast, accuse China of violating local laws, depleting the continent's resources, and taking advantage of corrupt leaders.

Despite mounting criticism and the Western media's largely negative portrayal of events, reality on the ground reveals that, by and large, both African governments and people welcome investment and new partnerships with the Asian giant.

"If you want concrete things you go to China. If you want to engage in endless discussion and discourse you go to the normal traditional donors," a senior manager from United Nations Economic Commission for Africa put it bluntly.

However, these partnerships are not without problems and are far from the shining examples of south-south cooperation Chinese leaders and media often like to portray.

'Not homogenous'

The truth of the matter is, China's involvement in Africa is not a black and white affair. In fact, most of it is grey. Very grey.

To begin with, "China" does not operate as a bloc. "China" in fact is composed of a myriad of private investors, state agencies and hybrid actors that spend more time in Africa competing with one another than worrying about Communist Party slogans.

The Chinese in Africa are not a homogenous and cohesive community organised along nationalistic lines as is commonly perceived by outsiders.

Zambians explain how Chinese investment is affecting their livelihoods

Instead they are a mixed bag of ordinary men and women willing to endure hardship to improve their fate despite the cultural and linguistic challenges they face. As such, they are similar to the growing number of Africans who move to China each year in search of a better life.

In addition, the continent is not one single "actor". Each African country has its own particular set of engagements with China.

While everyone seems to know what China wants from its counterparts, less is said and known about what African countries want from China.

The self-proclaimed champion of anti-Chinese sentiment, Michael Sata, changed his tune when he was elected president of Zambia in 2011, learning to accommodate the Chinese rather than expel them as he once threatened in a previous election campaign.

But has Zambia identified a strategic partnership that will enable it to reap the full benefits of Chinese trade and investment?

Lessons for Africa?

China's imports and exports from and to Africa (US$, 2010)

Import sector Import value

Source: China Customs data; Frontier Advisory analysis (2011)

1. Minerals

$50.6bn

2. Metals

$6.2bn

3. Stone and glass

$2.4bn

4. Wood, wood products

$1.3bn

5. Textiles

$0.7bn

Export sector

Export value

1. Machinery and electrical

$17.2bn

2. Textiles

$10.7bn

3. Transport

$8.2bn

4. Metals

$6.4bn

5. Plastics and rubber

$3.0bn

China has opened up new economic, diplomatic and strategic avenues for African states, but it is ultimately down to Africans, both the people in power and the man on the street, to negotiate on their own terms, identify priorities, and leverage opportunities to further their own interests.

Contrary to prevailing views, China is not offering a "model" of development. It has no quick-fix recipe for success. Although China is making it possible for Africans to visit, study and work in China, it is not asking, or requesting, other countries to emulate it or support its values.

Since the 1990s, however, China showed that with clear political goals and strong regulation of foreign investment, it could leverage natural resources and low labour costs to develop its economy. The key was letting people get on with it.

It may be too early to call China's economic miracle a success story, or determine how many African countries are willing, interested or indeed capable of following a similar course, but for the first time since the end of the Cold War people from Algeria to Angola have a genuine alternative to the Western donor bloc.

If there is one thing African states can learn through China, it is how to imagine their own future, explore new possibilities, and engage with the rest of the world while retaining control over the conditions of those engagements.

Solange Guo Chatelard is a PhD candidate at the Institut d'Etudes Politiques de Paris and an associate at the Max Planck Institute for Social Anthropology in Germany.

 

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  • rate this
    -1

    Comment number 41.

    #Africaisgreat.
    "Why are you so anti-African/"

    I'm not, any more than I'm against Europeans, Asians, Americans, or Antarcticans.
    However, after a long and sometimes difficult life I have learned to beware Greeks bearing gifts. If something looks too good to be true, it probably is.

  • rate this
    0

    Comment number 40.

    39.WoeIsMe
    "Who cares what China's motives are? "

    Everyone should - they buy mountains to secure future resources while
    rest of World buys at a price set by market forces
    http://news.bbc.co.uk/1/hi/world/americas/7460364.stm

    This is about the future and currently only China are playing.

  • rate this
    +1

    Comment number 39.

    Who cares what China's motives are? I'm sure that Chinese businesses are not any more or less insidious than their European counterparts. If the Chinese can offer alternative partnerships, then (according to the law of capitalism) more competition is a positive. It is up to African governments and leaders to set the ground rules for doing business in Africa. No one else is responsible.

  • rate this
    0

    Comment number 38.

    At the end of it all both, China and the West are two side of the same coin. The colors of their sins is the same only the shapes of the sins are different .Exploitation and looting in Africa is their invisible mission statements.Don;t worry about the euphemism used by both side, the key result is a poor and weak Africa.

  • rate this
    +1

    Comment number 37.

    @33. Entropic Man

    AMEN to that and toast. Why are you so anti-African. We are handling the Chinese well and they respect us. It is symbiotic relations. The Chinese nationals know if they mess we deal with them period.

  • rate this
    +4

    Comment number 36.

    China is good for Africa. Chinese private investors are investing in Africa: in farming, manufacturing, retail etc.

    Westerners are dumping second hand clothes in Africa, leading to the closure of textile factories and loss of jobs. They are dumping food produced by over-subsidised farmers onto the African market, killing African agriculture in the process. The list goes on and on.

  • rate this
    +4

    Comment number 35.

    China is good for Africa. China is building infrastructure in Africa. China is a source of affordable machinery for Africans. China is transferring knowhow to Africa. Westerners only talk endlessly about knowhow transfer to Africa. Western machinery is priced out of the reach of Africans [perhaps deliberately]. Westerners refuse to invest in Africa. Their excuse is that Africa is too risky.

  • rate this
    0

    Comment number 34.

    #33 Africaisgreat
    "We dont want or need your aid and presence.... Dont lecture us"

    As you wish. May you have a happy and productive relstionship with your new partner.

  • rate this
    +1

    Comment number 33.

    I still dont understand the West and some of the comments. Africans are saying enough is enough. We dont want or need your aid and presence. You have overstayed and overexploited and thanks for that.
    African relationship with Chinese is betwenn the two of us. Dont lecture us. We know better now and how to treat our chienese guests.
    Dont underestimate the African of today.

  • rate this
    +10

    Comment number 32.

    West’s corporations are amoral, that’s what people see. Not the twee aid worker or disingenuous politician’s/ career bureaucrat’s morality. African’s understand Chinese morals. The West sends aid with strings in one hand and exploitative corporations with the other. At least the Chinese don’t preach and are honest in their business amorality.

  • rate this
    +1

    Comment number 31.

    It is about time the West give up the culture of Aid and allow Africa to find its way. Look at the comments here claiming that African/Chinese industrial partnerships provide everything Africa could ever want. It's a bad guest that comes when not wanted and stays beyond their welcome.

    We should wish Africa all the luck in the world - if they think China is being altruistic then they'll need it.

  • rate this
    0

    Comment number 30.

    I can assure 'Entropic Man' that neither Dr Kemp.Rev Anderson nor Drs David Livingstone and Robbert Moffat arrived in the sub-Continent as 'Our Masters'. They arrived as our friends to spread "Enlightenment".Market Traders , 'Markets opportunists' and others trailed along clinging to their 'coat-tails'. Only the Dutch East India Company was given a definite State license to 'Colonize' !

  • rate this
    0

    Comment number 29.

    #28 Elmusay agt 117special
    "Did not present themselves as our masters,but as business partners"

    I hope you are right.

    The old cynic in me urges you to be alert to the possibility that your old colonial masters may be replaced by another, more subtle, economic tyranny.

  • rate this
    +3

    Comment number 28.

    The Chinese did not approach us with disrespect,despite our poverty. Did not present themselves as our masters,but as business parteners,despite our BLACKNESS and POVERTY, they are not seeing us as MONKIES,they are not telling their kids at home that we are inferrior to them.They are segerating us.But the opposite side of the above is caterstrophic. over there, they belived that we are ALLIENS.

  • rate this
    +1

    Comment number 27.

    Africa & it's leaders are very naive and desparate for money - that's a recipe for disaster for Africans when their government enters into this partnership !

    Until Africans elect a good government they will always be on their knees. There hasn't been a decent African government in my lifetime.

  • rate this
    +3

    Comment number 26.

    Countries generally do not have friends, but interests.It is therefore incumbent on each country to ensure it is a mutual interest or symbiotic not a parasitic relationship. Africa is endowed with all conceivable minerals & natural resources. It is time, Africa worked with other nations like China and use its resources to provide infrastructures & better living standards for all her citizens.

  • rate this
    +7

    Comment number 25.

    The Chinese involvement in Africa is not a BLACK and WHITE affairs They are not here to live in five stars hotel, ane moves with our Tinnis around,or dictate to our Government what to do,or distory our costums,traditions and cultures or to use sanctions and embargos as weaponons on us. They are here to help make the changes we can belive in. we know It will not be easy,but we will not give up.

  • rate this
    +2

    Comment number 24.

    The fact we shuld face is, for quite a long time African was appealing to the West for fair trade. That all we wanted, but they refused. We was even appealing to the west to stop giving us aids, and show us the way to help ourselves. All these request was rejected. Now China is not here to feed us or to develop our continent for us, but simply to show us how to do it all by ourselves.

  • rate this
    0

    Comment number 23.

    China's position as the largest trader with Africa secures both natural resources and political influence, displacing the old colonial Western pattern.
    In the Middle East a similar pattern is developing as an increasing proportion of oil exports heads East, rather than West.
    Add theinternationalising of the Yuan and the South China Sea claim.
    China is rapidly becoming a superpower rival.

  • rate this
    0

    Comment number 22.

    China has effectively displaced west and Europe from real life Africa. India was also pushed to back seat . Seems West is no longer the first source of colloboration inspite of its proximity.The westren presence is seen only in the form of Mulatos( people born out of mixed races), evalengelistic activities of church and thousands of NGO's who are keep HIV permanent to justify their presence

 

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