Is China raping Africa?

Over the last decade, China has rapidly increased its economic ties with Africa through enormous investment in infrastructure development, textiles, mining and oil. According to the Chinese government, two way trade between Africa and China has surpassed over US $114 Billion. With such vast quantities of money at play, it is not hard to imagine how easily seduced governments, businesses and individuals are by the finances China brings into play.

The question that needs to be asked however, is if China is raping Africa? The short answer, paradoxically, is both Yes and No.

It seems to me that African politicians in general are happy with the status quo because of the short term returns receive from Chinese trade. The GDP’s of African countries are receiving the desperate support they need, infrastructure is developed and resources are a plenty. Yet little care seems to be given as to what expense this will be to the future?

It is important to realise the cultural and economic dynamic China brings to Africa. China’s approach is very much rooted in their own style and isolation. They are not interested in becoming part of other communities or cultures but rather focused on pursuing their own industrious agendas. Despite these agendas bringing huge economic value to Africa in terms of infrastructure development, the ability to extract minerals and GDP, African leaders and businessmen need to be far stronger in their negotiations and agreements with the Chinese.

Too often we are mezmerised by the size and scale in which China operates, leading us to believe that the potential opportunities will be incredibly lucrative. My only concern is that we are mortgaging the future of our continent in pursuit of short term economic gain – both nationally and commercially.

The Chinese equation is not a simple problem to solve. Both Africa and China are subject to a culture of corruption which makes honest and principled business dealings all the more tough to achieve. African countries are notoriously poor, political stability ebbs and flows and the continent has one of the richest remains of natural resources left in the world today.

My take is this: If African countries get economically raped by China, it is their own fault. In dealing with China, be very commercial, firm and don’t underestimate the power and value of commodities Africa has, and that China desperately needs

China has real need for Africa’s commodities both in the short term and in the longer term to sustain its economic development. It is no secret that the Chinese appear to take a longer term view than the West and are more patient about the return, principally because their source of capital is predominantly driven by the Chinese government, and is all given in support of the long term strategic imperatives. The Chinese government is the entrepreneur, not private capital. Chinese interests are strictly commercial, with no desire for political, economic or social control. They bargain hard.

And therein lies the rub. African governments must not view Chinese investments in infrastructure, mines and power as ‘Economic Aid’. They must view them as commercial investments, and bargain hard upfront, setting the ground rules / non negotiables from their country’s perspective, to ensure that the investments have clear mutual benefit. Failure to do this (as often happens if the investment is viewed as economic aid – as the West might do), will result in them being raped economically. This is not because China is trying to do so, but rather because of the economic naivety of African governments.

What are you thoughts on this issue? Let me know in the comments section below….