Should African governments welcome Chinese investment?October 11, 2021 190 views 9 comments 2 minutes reading time
Chinese investment in Africa has been increasing since 2003. It has been estimated that US$2.96 billion was invested in the continent in 2020, thus exceeding the Foreign Direct Investments (FDI) of countries such as the United States.
Chinese investment has provided numerous benefits to Africa. It has resulted in several telecommunications, infrastructure, and manufacturing projects that have in turn led to job creation. In the Ethiopian garment sector, for example, Chinese firms employed 4395 locals. Other notable projects include the construction of railway lines in Nigeria, Zambia, Ethiopia, Djibouti, and Kenya.
However, there are many who view the increase in Chinese investment with skepticism. The lack of accountability and regulatory measures for governing the use of investments results in mismanagement of Chinese-funded projects by corrupt local actors. In addition, many argue that Sino-African trade benefits China more than it does Africa, raising the fear it could lead to some form of colonialism.
What do our readers think? Motso says “I really don’t know, because I have no idea what their intentions are, if they do invest though it should be with scrutiny because Africa has been through a lot in terms of colonization so we can’t afford to be under other countries when we can implement our own ways to save Africa.”
We spoke to the entrepreneur, and founder, and chairman of the Mo Ibrahim Foundation, Mo Ibrahim for his perspective.
We also spoke to Dr. Frannie Léautier, a leading international finance, and development expert.
Should African governments welcome Chinese investment? Is the relationship between China and Africa exploitative or beneficial? Let us know your thoughts and comments in the form below, and we’ll take them to policymakers and experts for their reactions!