China ‘fear factor’ in Africa overplayed

There is just too much red flag waving in the press about China taking over Africa economically, according to Duncan Bonnett, African trade and investment specialist at consultants, Whitehouse & Associates. “But it’s not so,” he told FTW. “We’ve done a lot of work in Southern and East Africa and our experience would suggest that the China fear factor is overplayed.” The idea that China is using trade and investment as the foundation for dominance in Africa is vastly overestimating the actual Chinese involvement in the continent. “While some are sceptical of whether China-Africa trade benefits Africa as much as China, those in the know say that much depends on whether African countries and businesses position themselves to leverage the strategic opportunities that have opened up as a result of China’s involvement in the African continent,” Bonnett said. “It is therefore important that stakeholders from all industries gather to discuss China-Africa trade on a regular basis to discuss and pave the way forward for increased trade between African and Chinese businesses.” The investments also shouldn’t be misread, he added. “It’s only a small investment in coal and oil in Africa,” he said, “although a bit stronger in copper in Zambia and the Democratic Republic of the Congo.” What’s more important is that Chinese projects are not ring-fenced. “For example,” Bonnett added, “it is often presumed that if China develops a mine in Africa it will import everything – material, labour and everything else – from China. “But it’s not so. They buy locally and from the region, for example a lot from here in SA. There isn’t a significant drive to acquire everything in China – they acquire from where they think is best.” Also, Bonnett stressed that people misconstrued China’s involvement in construction projects. “They’re not exclusively Chinese projects. Take a bridge, for example. They will also have South African and other foreign contractors involved in building roads and other infrastructure. “None of this indicates China colonising Africa through trade and investment. Not at all.” CAPTION Duncan Bonnett ... ‘Investments shouldn’t be misread.’