- January 16, 2023
- Posted by: AITRC 2
- Category: Blog
WEEKLY TRADE POLL FOR AFRICAN COUNTRIES
China-Africa Investment
It is public knowledge that China’s economic influence in Africa is growing, with a capital investment of USD 7 billion in 2008 which increased to USD 26 billion in 2013[1]. China’s investment in infrastructure and telecommunications in African countries has contributed significantly to the economic development of these countries. By providing funding and expertise for large-scale infrastructure projects such as roads, railways, ports, and power stations, China can help create sustainable economic growth conditions. Presently over USD 60 billion in loans and aid packages have been disbursed to African countries to improve agriculture, build telecommunications and ICT, develop infrastructure, and reduce poverty across the continent[2]. However, there is a lot of debate around the terms of the relationship between African countries and China.
Furthermore, it’s worth noting that there are concerns about the terms and conditions of China’s infrastructure loans, which may place a significant financial burden on the borrowing countries. Many claims that China is acting as a “neo-colonialist” because they fund infrastructure projects in Africa in exchange to access to exploit the continent’s natural resources.
Supporters, on the other hand, assert that China’s initiative to build and improve infrastructure, such as roads, railways, and telecommunication, has benefited the continent’s manufacturing sector, enabling more efficient communication, and access to information has further stimulated economic growth and freeing up domestic resources for other pressing needs, such as healthcare, education, and enabling environment for businesses.
WEEKLY TRADE POLLS (SECOND WEEK JANUARY, 2023)
Against this backdrop, Africa International Trade and Commerce Research (AITCR) conducted a weekly trade poll to gauge public opinion on China’s investment, focusing on infrastructure and telecommunications and how it can drive the economic revival of African countries. Findings from the polls reveal that 48 percent of the respondents indicated “to a large extent”, 26 percent affirmed “no” while 26 percent averred “not sure” thus implying that a larger percentage believe that China’s investment in infrastructure and telecommunications will drive the economic revival of African countries.
The finding from the poll reveals that, to an extent, it confirms Africans’ expectations regarding China-Africa investment and how it supports the growth of African nations’ economies. However, the analysis shows that the major misconceptions about the China-Africa business relationship should not be dismissed too quickly because the percentage of those who are unsure of the impact of China’s investment in Africa and those who had no confidence in the projects are greater than those who support the investment. As a result, China must demonstrate dedication to the investment goal, while Africa must also follow the rules by ensuring they negotiate fair terms and prioritize projects that will significantly have an impact on their long-term economic development.
Finally, China’s investment in African infrastructure and telecommunications can undoubtedly support the economic development of African countries, but it’s important to approach these investments strategically and ensure that they are aligned with broader economic development objectives.
[1] China’s Investments in Africa: What’s the Real Story? – Knowledge at Wharton (upenn.edu
[2] Africa’s ICT sector and China – ICA (icafrica.org)
