AN INSIGHT INTO CHINA’S STRATEGY IN AFRICA.
PRELUDE
Its January 2012, and under the intense sunshine of the Addis Ababa sky, the then African union chairman H.E Teodoro Obiang Nguema of Equatorial Guinea among other leaders opened the newly constructed African union headquarters. A symbol of African nationalism, pride and unity. The African Union headquarters was built and financed not by the usual colonial powers(UK, France ,E.U), but by the new kid on the block , China. Not to mention the fact that China had eclipsed the United States as Africa’s largest trade partner in 2009 and by 2019 had become the destination with the largest number of international students from Africa, only behind France. Despite the various indicators of Chinese investment on the continent , the main question on the continent is; What is China’s strategy in Africa , and how can Africa reap rewards from it to make the rhetoric of a win-win partnership possible.
HISTORICAL CONTEXT AND THE ERA OF FOREIGN DIRECT INVESTMENT.
Its January 11th 1964, Chinese premier Zhou Enlai arrives in Accra , Ghana for a state visit . However weeks prior to the event, Ghanaian leader Kwame Nkrumah survived a coup and was injured. Despite the calls by the administration in Accra, premier Zhou insisted and honored his invitation to the country. It was a gesture that not only melted the hearts of the Ghanaians during this period, but according to many analysists showed China’s commitment to Africa at the time. The 1960s to 1980s were a period of transformation on the continent, the rapid anti-colonial movements on the continent in addition to the cold war policies through proxy wars that were occurring. China ,then a leader of the Non-Aligned Movement and also a victim of western aggression (1840-48) presented itself as a fellow companion in the African struggle and a reliable partner who could be trusted on. China played a role in some of the liberation wars and conflicts on the continent usually siding against the western backed forces, and when African leaders needed help in construction projects and were denied because of their leftist policies , China offered to help , the best example being the Tanzania-Zambia railway line (1975).
Fast forward to the 1980s and 1990s , China was undergoing and economic growth not seen in generations. The country’s economy grew at an annual rate of 18%, extreme poverty reduced to 20% and rapid industrialization became the hallmark of this economic miracle. On contrast the African economy on the same period ( 1980-2000) had grown at an average of 4% mainly due to the various unfortunate events at the time on the continent such as the various civil wars, the AIDS pandemic and poor leadership.
In order to satisfy its ever increasing appetite for raw materials for its growing economy, China focused on its old ally, Africa. But China understood Africa in a way the western powers didn’t and most importantly how to relate with the African leadership. Usually in the 1990s and afterwards, whenever the African nations sought financial aid from IMF , world bank and other western nations, these loans came with obligations and conditions that angered those in power and echoed the neo-colonial sentiment that some had harbored in their hearts. Loan Conditions that determined how and why the money should be spent such as introduction of multi-party politics , rapid privatization , promotion of human rights , women emancipation in addition to the relatively high loan repayment interest rates, were a thorn to some African leadership. Although these requirements were good and well intended, 1990s and 21st century Africa needed one specific requirement above all else apart from health and education , rapid infrastructure development to spur economic growth, and China happily filled this gap when the west couldn’t. The Chinese government through its Export And Import Bank (EXIM) has funded various infrastructure projects on the continent which in turn has led to rapid economic growth on the continent with 6 of the 10 fastest growing economies ( 2000-2015) being on the continent – with Ethiopia being one of the stand out examples. The Chinese financial assistance comes with terms that follow the Chinese doctrine of non-interference in internal issues of countries in addition in long repayment conditions and this is good music to the ears of many African leaders.
In march 2018, then U.S secretary of state Rex Tillerson while on his visit to Africa, warned African countries on falling onto China’s debt trap. Debt trap policy is a rhetoric many observers have stressed as the down side of Chinese financial aid and have warned developing countries about. Ironically this narrative is pushed by the western nations whose loans coupled with the structural adjustment policies weren’t appeasing to the African leadership compared to the Chinese loans. Of the 54 countries on the continent, Kenya, Zambia and Djibouti are the nations with the highest foreign debt to China , and that means that despite the beauty of the loans, caution needs to be undertaken by the leadership to ensure proper use and implementation of the aid. In addition, the assertion of the debt trap should be a wake up call to the African leadership to be more assertive in the loan agreements and avoid corruption at all levels of governance so that there is effective use of the money borrowed.
Conclusion
China’s strategy in Africa, officially, is that of a win-win co-operation that aims to uplifting the people of both of China and Africa through socioeconomic development. China’s actions over the past 60 years have proved her commitment to the continent , levels either at or exceeding those of the western powers and Africa needs to tap into this commitment for her economic development. During the FOCAC (forum on China - Africa cooperation) summit in Beijing 2018, President Xi pledged a further $60 billion to the continent, further indicating China’s commitment to the continent.
China’s actions in Africa have served as a wake up call to other global powers to take Africa seriously and this led to increased focus on what was on some corners of global society, a forgotten dark continent. Therefore, Africa is poised to enjoy the best of both worlds and with issues like good governance and corruption gradually being addressed in parts of the continent , rapid economic growth and development will became a common characteristic on the continent.
Written by
Rugaba John Paul
Research fellow at Development Watch Center.