Registration / Login
text version
War and Peace

 Hot news

Main page » News » View
Printable version
China faces same problems in Africa as the West
24.11.15 12:14 Africa

Western worries about China’s burgeoning influence in Africa may be overblown said the Economist, noting that Chinese projects are struggling with the same problems that hinder Western investment in African nations. Making the case that working in Africa work is not as easy as it looks.

According to the Chinese Ministry of Commerce the net annual flow of Chinese direct investment into Africa was $3.2 billion, an eight-fold increase between 2005 and 2014. The total Chinese investments grew twenty-fold, to $32 billion, making China one of Africa’s biggest investors.

Deborah Brautigam, a professor at the School of Advanced International Studies in Washington, DC, said the hype about Chinese firms buying up vast amounts of industry in Africa is overblown because investment growth has slowed in recent years. Chinese investment in Africa constitutes less than 3% of all Chinese foreign investment. Most of that money goes to Asia.

In the book “Will Africa Feed China?” Brautigam wrote that a common problem is that Chinese firms “sort of assume that it works the way it does in China. In China, a company comes in, makes an arrangement with local government, and the government delivers.”

She said they then discover that promises by African governments to build infrastructure, provide power or supply land are not as credible as they thought. Public land turns out to be occupied by squatters, who may have farmed it for generations; private land may not be owned by the people selling it. Local politicians do not accept deals struck by national ones.

“If you told banks you’re going to Africa, it was easy to get a loan.” Huang Hongxiang told the Economist. Huang runs China House, an organization in Nairobi that helps Chinese firms understand how to do business in Kenya, He said there was a gold-rush mentality for a while, but now investors are aware that projects in Africa can take a long time and cost a lot more money than they expected. Huang says they are now doing the sorts of things Western firms have long done: investing in corporate social responsibility programs, hiring African managers and doing scrupulous due diligence.

While the worries of Western politicians that China is conducting a new form of imperialism in Africa and that they are getting deals because they are wiling to work with unscrupulous governments and break rules has a grain of truth, the evidence shows Africa presents the same challenges to Chinese projects that Western companies have had to deal with

This comes as a relief for Western policymakers, said the Economist, but for African leaders, desperate for development but unwilling or unable to fix problems that deter all but the hardiest of investors, it may come as a disappointment.

 

Ðóññêèé
Archive
Forum

 Exclusiveread more rss

» Destruction of Ukraine’s Central Bank
» The World files their 27 Grievances against the United States of America.
» Yom Kippur War Redux – Petrol D0llar’s Last Hurrah
» How the Alchemists saved the Planet in 2019
» What will the US Treaty of Paris look like?
» Addition by Subtraction, (x, y)↦x−y
» Too Little, Too Late, will there be a Romanov ending for the Sudairi Seven?
» Week 21: When economic arguments end, the arms race begins

 Newsread more rss

» Afghan Taliban leader accuses U.S. of creating doubts over pact
» Kyrgyz President Accuses Atambayev of Violating Constitution by Resisting Detention
» Chinese foreign ministry slams U.S. interference in Venezuela
» With an eye on Russia, China and a horse, Pentagon chief visits Mongolia
» Pentagon Claims Iran Uses GPS Jamming in the Gulf So It Can Lure and Seize Foreign Ships
» USAF X-37B Military Space Planes Mystery Mission Circling Earth Hits 700 Days
» China destabilizing Indo-Pacific: U.S. Defense Secretary
» EU must change its negotiating terms for Brexit, says Barclay

 Reportsread more rss

» A Brief History of the CIA’s Dirty War in South Sudan
» US GDP report: Keynes on steroids
» Are Russia and the US Finally on the Same Page in Afghanistan?
» The IMF Takeover of Pakistan
» Voices from Syria’s Rukban Refugee Camp Belie Corporate Media Reporting
» Report Shows Corporations and Bolsonaro Teaming Up to Destroy the Amazon
» Ukraine: the presidents change, but the oligarchical system remains the same
» The Cowardice of Aung San Suu Kyi

 Commentariesread more rss

» The Biggest Threat to the US Indo-Pacific Strategy? Washington Itself.
» Ukraine on the cusp of change
» India’s Looming Agricultural Crisis: A Unique Chance to Change the System?
» The Saker interviews Stephen Karganovic
» Media and Politicians Ignore Oncoming Financial Crisis
» In an astonishing turn, George Soros and Charles Koch team up to end US ‘forever war’ policy
» Vladimir Putin says liberalism has ‘become obsolete’
» You Are Fighting In The Most Important Battle Of All Time

 Analysisread more rss

» A battle for supremacy between China and the US
» UAE Withdrawal from Yemen
» US, Pakistan move in tandem to end Afghan war
» Is Baoshang Bank China’s Lehman Brothers?
» From the Green Revolution to GMOs: Toxic Agriculture Is the Problem Not the Solution
» OPEC+ oil supply cuts signal smooth Gulf sailing
» G20 Osaka: the end of American leadership?
» Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
 
text version The site was founded by Natalia Laval in 2006 © 2006-2024 Inca Group "War and Peace"