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Tuesday, January 06, 2009
 
   
   
China's Expansion to Africa Minimize
Location: BlogsThe Change Management Blog    
Posted by: Holger Nauheimer 7/26/2007 9:51 AM

I confess that recently the frequency of my postings has dropped significantly because of the work load that I have currently. I promise betterment...

Since recently, I subscribe to Maverick, a South African magazine which calls itself "A Machivellian Business Magazine". A lot of articles are related to change in the South African society and economy, but there are also some interesting essays about regional and global issues. I was in particularly intrigued about an article in the latest issue, titled "Let's Be Chinas" (unfortunately not covered in their online version). Here they write that

"the most significant infrastructure projects in Africa are virutally
unknown - because they are being planned in Beijing."
Currently, China is in the process of helping to establish and to develop several special economic zones in Africa - for example in Zambia, Mauritius, Tanzania and Nigeria. Here, Chinese firms get duty and tax incentives, and it is a likely scenario, that in the future many Chinese will move temporarily or permanently to Africa - a new colonialisation ahead?

I found another article in the Internet, which says:

Some analysts argue that Beijing is positioning itself in Africa at the expense of the United States and Europe. Analyst Ray Copson says China has an advantage over the West that allows it more flexibility to work with Africans on more than one economic level. He adds, “When they become involved with an African country, they are able to provide a complete package because of their state-owned corporations and their state-affiliated corporations. Looking at Nigeria, just in January, China signed a $ 2.3 billion deal for the exploitation of a Nigerian oil field. At the same time, the Chinese Government came forward with a $2 billion loan for Nigeria. A Chinese company is going to be involved in rehabilitating Nigeria’s railways.” (by By Aida Akl, 22 February 2006, www.officeroutlook com)

The most ambitious project is the connection of the two Southern African railways - the Benuguela and the Tanzam lines. If this project succeeds, for the first time in history the continent will be crossed by a railway - from the Atlantic Ocean (Angola) to the Indian Ocean (Tanzania).

Maybe China succeeds in what the West greatly failed - bringing at least some prosperity to Africa. If they did it in China, why not here?

Photo: Carlos Pinhão Fidalgo Pires
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