How and why China wants to invest in Africa?

Essay geoeconomic class/ 2 hours

Name : Yann Diby Kouame

Subject 2: How and why China wants to invest in Africa?

Introduction

                    The China-Africa relationship is not new and has now lasted for more than fifteen years. China is obviously today a great world economic power and Africa a continent with enormous potential but still unstable politically and economically; it is then a great opportunity for china to establish a link with Africa, especially since the current European powers are affected by economic crises and the USA is slowing growth. The Middle Empire became the continent's leading trading partner in 2009, ahead of the United States and France. But China is going even further. It opened 54 Confucius institutes in Africa, cultural centers

So How and why China wants to invest in Africa?

1. HOW CHINA INVEST IN AFRICA?

The investment from china is Africa are huge and in different fields of activity. Chinese investments and contracts in sub-Saharan Africa total $299 billion from 2005 to 2018, according to the China Investment Global Tracker, and in 2018 at the Forum between China and Africa corporation , Chinese president Xi Jinping vowed to invest a further $60 billion into African nations. 

Mining and oil remain the main resources focus of China's investments. However, the country's investments extend throughout virtually every market sector, including everything from infrastructure to food processing. China's investments in the largely undeveloped infrastructure of African nations are particularly strong, encompassing key areas such as utilities, telecommunications, port construction, and transportation.

China's investments have the country well-positioned to profit from continuing economic development in Africa. Many Chinese companies investing in Africa are state-owned. This gives them a notable competitive edge when, for example, bidding procurement contracts in African countries, since the companies can obtain substantial subsidies from the Chinese government.

China has also been expanding its military presence into Africa and rivaling the United States on investment and military activity there. Investment in the continent has also been a topic of discussion for the United States and China in its ongoing trade negotiations and political deliberations.

1. WHY CHINA WANTS TO INVEST IN AFRICA?

African countries are mostly developing countries and China is a major economic support for these countries. however, China benefits enormously from this partnership and of course these expressions of interest in Africa are eminently strategic.

1. The need of raw material for China

China consumes a lot of energy while it lacks it, that is why it has turned to Africa to have a minimum of supply guarantees, investing in all countries that have oil and natural resources.

China is interested in raw materials in Africa, Africa has a lot of raw materials which are not used because there is a huge shortage of raw material processing industries in Africa.

Africa is estimated to contain 90% of the entire world supply of platinum and cobalt, half of the world's gold supply, two-thirds of world manganese, and 35% of the world's uranium. It also accounts for nearly 75% of the world's coltan, an important mineral used in electronic devices, including cellphones and we know clearly that China industry in high tech is one of the best the world with Huawei or Oppo.

1. The political motivations of China 

The African continent is a place for China to look to extend its geopolitical influence which is today more important than European influence. China is already the preeminent power in Asia. India, a historically traditional rival of China, is not a realistic choice for China to look for an increase in political influence, but the largely undeveloped countries of Africa represent a prime opportunity for China to significantly expand its global presence and influence in the world like the USA with Western countries.

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