China Africa Relations
Flip Side of Increasing Chinese Aid to Africa
The West has been long on lectures on democracy and human rights but short on actual help to Africa. No wonder that China's emergence in Africa has caused some heartburn in the West. It is argued that China's aid to Africa is a means to further it's interest in African resources. It is true that Chinese aid is not all philanthropy. But aid from West is not without strings either. Also that China’s economic impact may prove to be a mixed blessing, whereas the political consequences of its involvement are likely to prove deleterious.
Chinese Investments in Africa
China's Minister of Commerce, Chen Deming in his article in China Daily on Nov. 7, 2009 lists completed large infrastructure projects with Chinese assistance. For example, the national stadium of Zambia, the second Bridge of Bamako, Mali, the hydro-power station in Gabon, new airport of Mauritius and the ring road of Nairobi, Kenya. Ongoing projects include the east-west expressway in Algeria, the expansion of the Lobito Port in Angola and the Bui hydro-power station, Ghana.
The investments had reached $7.8 billion and more than 1,600 Chinese companies had invested in Africa by 2008, covering a wide range, from product processing to agricultural development. China-Africa trade registered an average annual growth of over 30 per cent in the past eight years and exceeded target of “$100 billion by 2010” by 2008. The article adds that Chinese companies have also grown stronger and reaped great profits on the vast African continent.
China Africa Summit at Sharm El-Sheik - Egypt
Last week at China-Africa summit held at Sharm El-Sheik, Egypt, China offered $10-billion in concessional loans to Africa over the next three years. This is in keeping with the nature of the last meet, held in November 2006. This marks a doubling of the $5 billion loan pledge made then to African nations. In the past eight years, trade between China and Africa has surged to almost $107 billion by end 2008.
The growth in relationship with Africa will also mean some turbulence. Nigerian NGO, Coalition for the Environment, accuses the Chinese company, WEMPCO of discharging untreated effluents into the Cross River in south-eastern Nigeria, damaging the livelihoods of local fishermen, their health and environment. After paying government stumpage fee of about US$28 for a mature mahogany tree, it sells the same overseas for more than $30,000. This profit does not trickle down to the local population.
Unemployed African youth resent Chinese companies building roads and other infrastructures which prefer to import labor from China rather than hire local youths and for not transferring know-how to Africans. Thabo Mbeki, former President of South Africa, had criticized Chinese companies for violating labor and safety standards. Mbeki had gone so far as to warn against a new Chinese colonialism in Africa.
The African Traps
Paul Collier, in his book, The Bottom Billion, cites a few reasons or traps that hinder African development and growth. Namely; Conflict Trap: Continuing civil war; Natural Resources Trap: that create 'a new law of the jungle of electoral competition ... the survival of the fattest”; Landlocked with bad neighbors trap, who often do not allow transit access; Lastly,bad governance in a small country trap, where nearly two-fifths of Africa's private wealth is held abroad.
It would be interesting to see how China avoids these traps. Chinese companies are exploring energy in areas where ethnic war is ongoing like Ethiopian Ogaden region and Southern Sudan. It was criticized for military support to Sudan, which was an integral part of the economic relationship between the two countries, by which China imported two-thirds of Sudanese oil.
The promised Chinese-built roads in Nigeria remain on paper. Recent reports indicate that the deals it had struck with former President Olusegun Obasanjo, are being reviewed amid concerns about graft and national interest. In Namibia, there were allegation of corruption against a state-controlled Chinese company for making a deal with illegal and undeclared millions. Incidentally, this company, had links with Hu Haifeng, the son of the Chinese President.
Also recently a key trade deal worth around $7 billion was signed between Guinea's government and a Chinese firm. This deal gives limited oil and mining rights to China International Fund in return for large-scale investment in various infrastructure projects. This deal completely overlooked the dissatisfying human rights record of the ruling junta of Guinea, which had cracked down heavily on civilian protestors and was censured by both EU and the African Union.
The future of Chinese aid and diplomacy in the continent is rather tricky. Increased aid will bring genuine material benefit to the continent by way of infrastructure development projects and by debt waivers, either partially or totally for many African countries. But the increased involvement will bring forth the issues of Chinese trade and good governance. It could be an uneasy balance for China in the near future.
Further reference:
Rise and Rights in China-Africa Relations. By Ndubisi Obiorah, Centre for Law and Social Action, Lagos, Nigeria.
An African Mask
|
Africa and the world
|
What do you think about this article?
More in Politics & Society
Latest Articles