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Africa: Why China Investments Are Good for Africa

Frank Kagabo

15 November 2009

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Kigali — Many have written expressing dismay and surprisingly anger, over the fact that China is virtually taking over or getting involved in all businesses worth talking about in Africa.

Most of the worry about China's economic domination stems from people who think that in this seemingly zero sum game of economic domination, China's ascendance to the pinnacle of economic power in the developing world, implies the end of western multilateral dominance in the African market and moreover, in competition for the abundant mineral wealth and oil on the continent.

Most of those expressing concern about China's economic onslaught in especially Africa, cite the fact that the Asian giant does not bother about democratic ideals like political pluralism that were forced down the throats of many African countries in the eighties, and early nineties as 'conditionalities' for economic support through the International Monetary Fund and World Bank.

A number of such civil society types in Africa that have shouted themselves hoarse over China's economic onslaught, also cite the resurgent Arab businesses that are moving fast into sub-Saharan Africa.

Their fear is that the Arabs and Chinese care less about how governments deal with the issues regarded as human rights.

Most of these civil society types have one thing in common. They all run or are in some way involved with Non Governmental Organizations that get funding from interests that espouse ideals that are not at par with the Chinese way of doing things.

Some journalists from western media have also been seen sparring with some African leaders on this question of Chinese investment in Africa, and its implications, some openly critical.

But what they do not explain to us, is why it is that many big businesses in the west that were about to go under as a result of the credit crunch were taken over by Chinese money and hence rescued, without being thwarted on idealistic grounds.

If Ford can go into negotiations to sell its subsidiary Volvo to the Chinese, why can't African countries make trade and investment deals with the Chinese.

Even the Arabs that have taken over many businesses in sub-Sahara Africa, own large businesses in Europe with interest in sports clubs and giant stores.

In all these commentaries and news stories slanted in a way to pour scorn on Africa embracing China for economic reasons, one senses some kind of arrogance, where they are telling us that we do not know what is good for us- That look, that friendship is not good at all and we are sure you do not know that!

The distinction between China and the interests that seem hostile to the Sino-Africa trade relations seems to emanate from the fact that, the Chinese strategy, seems to invalidate the old donor recipient relationship that has been the hall mark of Africa's relations with its former colonial masters.

If after many years of relying on foreign aid have made little impact in terms of social economic transformation for many countries, then what is the rationale for continuing to hope that such will happen in future.

Or if it will happen (and is as I believe important in providing remedial support on a short term basis), what is wrong with trying out other models like trade and investment with people who have the monetary reserves to make such investments successful.

Projections have indicated that China's economy will overtake the US in a few decades from now.

Then Africa has to look to China very seriously. Who would not want to do business with an economy that is slated to be number one soon?

If it is a question of human rights and democracy in the liberal western sense, how can anyone guarantee human rights in a sea of poverty? Poverty itself is a human rights issue, I think.

So a leadership that seeks investments to take its people out of poverty cannot be accused of disregarding or being against the human rights of its people.

It does not matter where the money or investments come from, what matters is what the proceeds are used for. Everyone looks for "what is in it for me". Period! -as they say.

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