LancelotSA
Banned
An interesting post I found which discusses Chinese investment in Africa... for those of you interested in these things. Below are some snippets from the article. If it interests you take a look at the full post on the link at the bottom.
http://www.sagoodnews.co.za/newslet...ica_is_the_continent_being_re-colonised_.html
China's foray into Africa since the turn of the century has indeed been remarkable, with trade volumes increasing ten-fold and the Chinese government identifying Africa as the future engine of global growth. However, China's return to Africa has not been without controversy as the Asian giant is accused of manipulating weak African states to control access to their resources and for flooding markets with cheap goods from the Mainland.
African states know that in order to attract investment from China they need to have a valuable proposition - a process which is far more likely to lift the continent out of poverty than the traditional 'cap-in-hand' approach to courting additional foreign aid from the world's developed nations, which has done little to create long-term growth in Africa. In saying this, China injected upwards of US$ 9 billion into Africa last year in the form of 'win-win' investment, an amount which dwarfs the World Bank's US$ 2.5 billion. The World Bank has since asked to partner China in financing projects in Africa. With foreign reserves of US$ 1.5 trillion and a sovereign investment fund of US$ 200 billion to plough into promising global companies, China's purchase of 20% of Standard Bank is likely to be the sign of things to come.
Another major advantage of China as a trading partner in Africa is the speed with which Beijing is able to make and implement decisions. Where the World Bank takes five years to conceptualise and implement a road or rail upgrade project, China takes 6 months. Infrastructure developments in Angola, Senegal, Gabon, Nigeria and Ghana attest to the rapidity of these developments. Due to all major Chinese enterprises being state-owned and decision-making extremely centralised in Beijing, China is able to deliver on promises made in a way which no other trading partner has been able to.
In short, China brings a model of economic recovery to Africa that is able to work without the involvement of foreign advisors, institutions or bilateral mentors. For Africa, looking back on half a century of failed Western-led efforts to alleviate poverty and enhance self-governance, the new model provided by Beijing is a refreshing alternative, and one which will increasingly be adopted as the continent looks to speed up reform and narrow the gap with the developed world. While some lament the nature of China's push into Africa, others on the continent are pragmatically realising the potential this shift is creating and increasingly becoming viable global market players.
http://www.sagoodnews.co.za/newslet...ica_is_the_continent_being_re-colonised_.html