Photo: Chinese Govt Cape Town — The reality of Indian and Chinese investment in Africa is much more complex than the good cop, bad cop image of Asia's two emerging economic giants.
China and India have caused an explosion of trade and investment in Africa in the past decade. Yet they are perceived quite differently: China has a reputation for economic ruthlessness, while India's business interests are generally seen as beneficial to Africa.
But their investment in Africa needs to be viewed in the context of broader investment trends on the continent, trade experts said at the "Money, Power and Sex: the Paradox of Unequal Growth" conference organised by the Open Society Institute of Southern Africa, which is taking place from May 22 to 24 in Cape Town, South Africa.
Ultimately, it is the responsibility of African governments to set firm ground rules for foreign investment flow and ensure a direct relationship between trade and development, the experts said.
"We are not leveraging our regional economic communities or the African Union (AU) to get better deals and the kind of investment that we need," lamented Buddy Kuruku, policy advisor at the African Centre for Economic Transformation in Liberia.
If Africa would make development its priority, with the support of the AU, its 54 nations would quickly gain more control over emerging economies' investments in their territory.
"World powers compete for a presence on the continent, and Africa can benefit from that. If the AU countries would work in solidarity, they wouldn't need to fear India's or China's presence," said Zhongying Pang, professor of international relations at the Renmin University of China in Beijing.
Although it is still too early to tell what China's and India's impact on Africa will be, "it's potentially more positive than negative," says Howard French, former New York Times bureau chief in China and a fellow with the Open Society Foundation researching Chinese migration to Africa.
"Africa has for a long time been stuck in a position with few options of whom it wants to trade with," French said.
With China and India competing for investment opportunities alongside Europe and North America, African nations now have a multitude of potential trading partners to choose from. And more leverage to set the rules.
According to the World Bank, Indian and Chinese foreign direct investment in Africa has grown dramatically. To date, China has been the largest single investor, aid-giver and trade partner on the continent, with 127 billion dollars in resource extraction and infrastructure deals in 2010.
India has much less financial muscle than China, but its influence in Africa is on a rapid rise. It currently accounts for 46 billion dollars in trade deals on the continent and has announced it will invest 70 billion dollars by 2015.
"The Chinese state is surely a major motor of economic activity in Africa. But India is equally striving to boost its investment in resource extraction on the continent," said French.
At the same time, exports from Africa to Asia tripled in the last five years, to 27 percent of total Asian imports, according to 2010 World Bank data, showing a clear trend towards rapidly growing South- South commerce.
This tendency has been heightened since South Africa joined the Brazil, Russia, India and China (BRIC) group of emerging economies in December 2010, now called BRICS.
China's push into Africa is viewed more critically because it is largely based on massive state companies pursuing major public works and infrastructure projects, such as stadiums, highways and railroads, very often with state and multilateral funding.
"China has a very formalised policy to encourage Chinese interests and investment in Africa. India has no such policy," explained Kuruku. India instead follows a short-term investment outlook, with a two- to five-year strategy.
India's engagement with the continent is primarily driven by private businesses and focused on acquisitions.
"That means Indian companies tend to generate more jobs and facilitate skills transfer, while only a very small component of Chinese investment in Africa creates jobs," Kuruku noted.
China says it is committed to reversing its negative image. The Asian giant plans to revise its Africa foreign policy, hoping this will provide further political advantages in Africa.
"We have learnt from criticism levelled at our investment policy. If China wants to continue to play a role in Africa, it needs to maintain its principle of non-interference, but also add others, such as multilateral interventions and careful policies on land ownership," said Pang.
Chinese enterprises in Africa also need to comply more strictly with local labour and environment regulations, facilitate the transfer of skills to African countries and upgrade their industries.
Others argue that India is getting off too lightly.
"India has invested in buying off agricultural land to fight food price inflation in its own country. India doesn't have better labour standards than China. Exploitation, corruption and bribery are rife in India," argued Aniket Alam, a senior editor of the Mumbai-based journal Economic and Political Weekly.
Like China, India has been particularly interested in Africa to help meet its rising energy requirements, investing in nations with crude oil resources like Nigeria, Sudan, and Angola, he said.
China and India both have rapidly modernising industries and burgeoning middle classes with rising incomes and purchasing power. They have therefore demand not only for natural resource-extractive commodities and agricultural goods but also for diversified exports, such as processed commodities, light manufactured products, household consumer goods and food. All of which Africa can offer.
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"WHAT THIS AUTHOR NEEDS TO SIGHT IS THAT CHINA HAS INVESTED INTEREST NOT JUST IN THESE OIL STATES BUT A NUMBER OF COUNTRIES ENHANCING THEIR ECONOMIES; AS A MATTER OF FACT THERE ARE NATIONS STUDYING MANDARIN AND OTHER CHINESE LANGUAGES. "AFRICANS MUST BE THE ONES TO SEIZE THE INMTIATIVE THEY MUST LOBBY GOVERNMENTS TO INSTALL RULES THAT ALLOW FOR JOB FOR JOB STATUS WHERE THERE IS ON THE JOB TRAINING AND THE BRIGHTEST IN SCHOOLS SENT TO CHINA FOR SPECIALISED LEARNING. CHINA HAS A VERY STRONG WORK ETHIC THEY WORK IN SHIFTS ROUND THE CLOCK TO FAST FORWARD AND FINISH PROJECTS HEAD OF TIME OR ON TIME. AFRICA NEEDS TO START THEIR OWN FIVE YEAR PLANS THEY NEED TO CREATE THESE SAME WORK ETHICS WHERE THE NEED FOR SPECIAL WORK FORCES ARE CREATED AND THEY ALSO CAN TRANSLATE TO CIVIL OPPORTUNITIES. WE MUST FIND JOBS BY THE INTITIATING OF PROJECTS THAT ARE ROUND THE CLOCK THE NEED FOR MILLIONS OF WORKERS WILL EMPOWER AND ADD MORE CHILDREN IN SCHOOLS BETTER SCHOOLS AND MORE LIQUID FINACE TO COMPETE GLOBALY BUT ALSO ENSHRINE IN AFRICANS THE LOVE OF NATION CONTINENT AND MORE THAN ANYTHING ELSE THE LOVE OF SELF. WE NEED TO CONTRACT BIG CHINESE COMPANIES TO TEACCH AND SHADOW THE AFRICAN SO THEY MAY IN FACT BE THE CONCRETE OF THE NATION ENABLING THEM TO PURSUE THE NATIONS AMBITION AT WILL. THE NEED AGAIN IS IN SPECIAL TECHNICAL EDUCATION. OFR THE TREMENDOUS AMMOUNTS OF YEARS THE COLONIAIST HAVE BEEN IN AFRICA WHY ARENT THERE MORE BLACK OWNED MINES AND WHY ARENT THERE THE SPECIALISED SKILLS EMNABLING BLACVK AFRICANS TO BECOME CEOS AND MAJOUR MAGNETS AND OIL MINERAL NATURAL RESOUCE KINGS. WHY DONT WE HAVE THE APABILITIES TO FIND OUR OWN GAS WHY ARE NT WE MAKING AND DEVLOPING TOOLS AND MOTORS THAT CAN DIG POWER TUNNEL MOVE EARTH FIND SCIENTIFIC LOCATIONS WHY ? WE HAVE NOT PUT OUR CHILDREN IN LINE TO FIND THESE WORK EXPERIENCES PROFITABLE OR EVEN NECESARRY. SOUTH AFRICA SHOULD BY RIGHTB HAVE THE STAE WHERE THE MAJOURTY OF MINE OWNERS INVESTORS ARE BLACK ENHANCING THEIR REPUITATION ON THE CONTINENT. WHY HASNT SOUTH AFRICA INCREASED THEIR TECHNICAL WORK FORCE SO THEY COULD HELP TO ENHANCE THE REST OF AFRICA. WHEN CUBA AS AREVOLUTIONARY GOVERNMENT CAME INTO OFFICE THEY MADE SURE THAT EVERYONE WAS LITERATE THEY THEN EXTENDED THIS TO ALL HAVING DEGREES WITH SPECIALISED LEARNINGS IN MEDICINE ENGINEERING OF ALL DISCRIPTIONS AND SCIENCE IN ALL DISCRIPTIONS; THEY THEN SET ABOUT INFORMING THE REST OF THE BLACK CARRIBEAN IN FINDING THEIR OWN WAY THRU KNOWLEDGE. CUBA HAS ALSO HELPED THE PEOPLE OF MANY AFRICAN COUNTRIES. WHAT I AM SAYING IS THAT THE SOUTH AFRICANS WHO ARE A REVOLUTIONARY GOVERNMENT HAVE FORGOTTEN THEIR REVOLTUIONARY ROOTS THEY FORGET THAT MOST OF AFRICA WEE ITS BEDFELLOWS. THE FIRST ERADICATION WAS TO HAVE BEEN POVERTY FOR ALL SOUTH AFRICANS THEN THEY SHOULD HAVE MADE SURE THAT EVRY ASPECT OF MONETARY GOVERNANCE WAS IN AHABBITTED BY BLACK SOUTH AFRICANS AS UNDERSTUDIES THEN THEY SHOULD HAVE EMBRACED THE CICVIL MARKEST AND AGAIN FOLLOWED THE SAME PRINMCIPLES OF A BLACK UNDERSTUDY IN EVERY ASPECT OF DEVELOPMENT THE SAME WITH SCIENCE MEDICINE AVAITION ETC . THE REVOLUTIONARIES SHOULD HAVE THEN REPAID THEIR DEBT TO AFRICA THRU EDUCATION. AFRICA IS TO BLAME FOR SOME OF ITS WOES BUT NOTHING HAPPENS BEFORE ITS TIME AND EVERY THING EVOLVES. WHAT WE MUST DO IN AFRICA IS PAY CLOSE ATTENTION TO WHAT WE ARE DOING W MUST REMEMBER THAT EVERYTHING IS POLITICS TH END GAME IS NEVER VISIBLE. THE REVOLUTION IS ALWAYS VISIBLE THERE WILL ALWAYS BE THOSE WHO WANTS TO UNDERMINE THE REVOLUTION AND SET BACK THE GAINS THAT WERE MADE. SO THE FACT IS THAT VIGILANTS IS A MUST AND WE MUST ALWAYS BE PREPARED TO FOR WHATEVER!!!!!!!. ANOTHER THING IS THAT INDEPENDENCE IS ONE OF THE EARTHS MOST IMPROTANT LESSONS WE MUST BE ECONOMICALY INDEPENDENT AND WE MUST BE FINACIALY INDEPENDENT NT SPEAKING ABOUT MENTAL INDEPENDENCE. THE CONCEPT OF HAVING TO GO THRU ACHAIN OF COMMAND TO GET SOME THING DONE EVEN WITH OUR BLESSINGS IS A STATE OF MIND THAT ENGAGES US ON DEPENDENCE. WE MUST FIRST ASK JESUS TO ASK THE "ALL MIGHTY GOD" TO BLESS US WHY? THE FACT IS THAT WE MUST SEEK REFUGE AND PRAYER AS JESUS DID IN ASKING "OUR FATHER" FOR OUR BLESSINGS AND THANKING HIM FOR HIS MERCIES". REMEBER THAT HUMANITY WAS THE CREATION OF A SUPERIOR BEING NOT ONE WHO WAS BORN OF FLESH AND BLOOD AND BONES. SO IN THAT CONTEXT WE KNOW THAT WE ARE ALL HIS CHILDREN NOT FROM PHYSICAL BEGINNINGS BUT FROM THE DESIRE AND WILL TO CREATE . WE ARE ALL CHILDREN OF THE "MOST HIGH" AND WE ARE ALL PART OF HIS WONDERFUL CREATION. THE IDEA IS TO BE DEPENDENT ON SUCH A FORCE THAT WE HAVE THE RIGHT TO SPEAK TO "THE KING" AND ASK FOR HIS MERCIES AND HIS GLORY". THESE ARE THOUGHTS OF SELF EMPOWERMENT NOT DEPENDENT ON MESSAGES TO BE PASSED ON. WE MUST ENHANCE OUR BELIEF SYSTEMS WE MUST ADMIT THAT WE ARE NOT RESPONDING PROPERLY OT ORU CHILDREN THERE SHOULD BE NO AFRICAN CHILD BEING TRAUMATISED ON THE CONTINENT AS WE SEE TODAY. CHILDREN ARE BEING DRIVEN INTO THE BUSH AND COWERING WITH FEAR ALL THESE THINGS ARE GENERATED BY A WESTERN KLEPTOCARCY THAT LIVES OFF GREED CORRUPTION AND LIES", BY RIGHT WE ARE THE RIGHTEOUSS PEOPLE WE MUST REPLACE THE NEGATIVES WE HAVE ADAPTED THEY DO NOT SUIT US AND WE BECOEM CHAINED TO THESE NEGATIVITIES. WE DO THINSG WHICH ARE NOT RIGHT FOR US MENTALLY WE EAT FOODS FORBIDDEN WE DRINK THINGS FORBIDDEN WE NDIGEST INJEST THINGS LIKE TOBACCO WHEN WE KN OW IT TO BE KILLERS . WE DONT HAVE AGREAT HEALHT CARE SYSTEM WHY ARE WE ALLOWING FOR PEOPLE TO AQDD TO THIS BURDEN. WE SHOULD BAN TOBACCO AND ALCOHOL FROM THE WEST AND SEEK TO KEEP THE TAXES ON THEM VERY HIGH. W ARE SO STUPID THERE IS THE GREAT QUALITY IN CANNABIS WHERE IT IS SCIENTIFICALT PROVEN NOT TO BE ADDITICTIVE NOR DOES IT HARM BUT HELPS MECICALLY FOR EYE PROBLEMS PAIN RELIEF AND MANY MORE YET AFRICA FOLLOWS THE WEST INA ALLOWING THEM TO DISABLE OUR YOUTHS BY TAKING CLASS A DRUGS SUCH AS METH HEORIN COCAINE THESE ARE ALL DRUGS THE WEST HAS A BIG HAND IN SUPPLYING. THEY DONT WANT TO LEAVE AFGHANISTAN BECAUSE THEY DONT WANT TO LOSE THEIR SYTRANGLE HOLD ON THE DRUG. ONCE THY LEAVE THE TALIBAN WHO WERE OPPOSSE TO IT INTIALY WOULD BECOME THE MASTERS OF HEROIN. COCAINE THEY RUN IN COLOMBIA. DO NOT GET IT TWISTED THEY ARE NTO NICE PEOPLE AND THE SOONER AFRICASN OPEN THEIR EYES AND STOP BELIVEING THEY ARE GOD THE BETTER.WE MUST ADAPT A MORE STRONGER DESIRE TO OWNERSHIP WE MUST BECOME THE LANDOWNWRES AND NOT DISENFRANCHISING OUR LANDS TO GIVE AWAY TO FOREINERS. THE LANDS ARE OURS BY BEQUITHMENTS. WE HAVE LOST CONSIDERABLE LANDS IN ALL AFRICA ; THIS IS WHY WE MUST EMBARCE OUR BROTHERS AND SEEK TO REDRESS THE BALANCE . WHEN WE LOOK AT SYRIA JORDAN LEBANON PALESTINE THESE ARE ALL OUR LANDS THOUGH WE HEAR THE TALK OF ARAB LANDS WE MUST ALSO RECOGNISE THAT THE ORIGINAL ARABS WERE INDEED BLACK . IT IS HIGH TIME ALL AFRICANS WERE EDUCATED TO WHOM THEY TRULY AREAND WHAT ORU POSITION IS ON THIS PLANET. WE MUST5 STADN UNITED WE MUST BECOEM MORE EDUCATED THE CHINESE ARE AGOOD VEHICLE TO ENHANCE OUR STANDARDS AND SO ARE THE INDIANS WE ALSO NEED TO HAVE MORE PHYSISCIST WHO ARE LEANED IN NUCLEAR SCINECE/. WE HAVE INDIA IRAN HAS OPENLY ASKED AFRICA TO JOIN THEM IN THE OVERSTANDING OF THIS SCIENCE AND I HAVE NOT SEEN ONE AFRICAN NATION TAKE UP THE OFFER AFRICA SOEMTIMES LIKE TO WAIT FOR THR WEEST TO GIVE THEM THE GO AHEAD M SHOULD YOU CONTIUE TO DO THAT YOU WILL END UP NO WHERE. LET ME SHARE ONE THING WITH YOU HOLLANE THE NEW PRESIDENT OF FRANCE IS NO DIFFERNMT TO SARCZY RIGHT AWAY IS ON BOARD TO SUPPORTING WAR IN SYRIA. SYRIA IS AFRICA AND AFRICANS HAVE STATED THAT WE DO NOT SUPPORT ANY ARMED CONFLICTS IN THIS 21ST CENTURY. WE FEEL THAT THE HUMAN MIND IS MORE COMPETENT AND SHOULD BE WILLING TO UPHOLD DEMOCARTIC BALUES . THESE VALUES ARE ONLY OBSERVED THRU DIALOUGUE AND THE VOTE. WE WILL NMOT SUPPORT MURDER DEATH VIOLENCE TRUAM TO ANY INDIVIDUAL ESPECIALLY WHEN WE RECOGNISE THE TRUTH. THERE IS NO SUCH THING AS VIOLENT OVERTHROW IN THESE TIMES WHAT HAPPENS IS THE BALLANCE OF POWER IS SHIFT AND SEETHING AND HATE DEVELOPS AN UNDERCURRENT WHICH THEN OVERFLOWS INTO DESPEATE VIOLENCE. THERE IS NO COUNTRY THAT THE WEST AHS BEEN WHERE THEY PERPETRATED REGIME CHANGE THAT IT HAS WORKED AS SOME BENCHMARK FO ACHIEVEMENT AS A MATTER OF FACT IT HAS ALL BEEN TO THE CONTRARY"