‘China not pre-occupied with Africa’

China is not as
pre-occupied
with Africa as
many want to
believe.
According to Africa
analyst and project expert
Duncan Bonnett of Africa
House, whilst the Far
East country is involved
in Africa and continues to
invest in the continent its
African agenda is not as
important as one might
think.
“One only has to read
Chinese media to realise
that Africa is important
in that it is a region to do
business in,” he told FTW.
“There is no doubt that
state-owned and private
Chinese companies have
become major investors
in Africa over the past
10 years, but the Chinese
are not pre-occupied with
Africa.”
This becomes clear
when one takes a look at
investment figures.
“A single Chinese
investor buying into US
technology companies will
be spending more in in one
year in the US than what
the whole of China will be
investing in Africa over
the next three years,”
said Bonnett.
It is estimated
China’s investment
in Africa is around
$40 billion.
“Statements
that China
is trying to
colonise
Africa
are really
unfounded
if one looks
at the figures
of investment,” Bonnett
told FTW.
Chinese-African analysts
agree that much of the
knee-jerk reaction about
Chinese involvement in
Africa happens when
investment into the
continent is confused
with the multi-billion
dollar loans
from China
to African
governments.
Many
countries use
these loans
to upgrade
infrastructure
but it is often
forgotten
that these
are business
transactions
– pure loans
that have
to be paid back and not
investment.
“China is in Africa to do
business,” said Bonnett.
“The country is extremely
competitive and it grabs
opportunities. That, however,
does not mean that Africa is
this all important region that
it wants to conquer.”
According to Bonnett,
China’s success in Africa can
be attributed to the fact that
the country understands
developing and informal
markets and is able to service
them well.
“Also there is a thought
process that the Chinese
will come looking for local
companies.
One must
understand
that they
know they
can and will
get anything
they want
for the
projects
in which
they are
involved in
Africa from
China at a
competitive
price. That does not mean
they are not willing to
do business with local
companies.”
Bonnett said companies
wanting to work in Africa
with the Chinese were
best advised to hit the
market hard and find the
opportunities.
INSERT & CAPTION
China understands
developing and
informal markets and
is able to service
them well.
– Duncan Bonnett