Opinion
In Africa, U.S. Businesses Are Losing Out to China
Some of these companies have major operations in China. They do not want to say anything that might jeopardize a larger and currently more profitable market relationship for them. These companies also are sometimes brought in as partners with Chinese companies on African projects. One major company representative with significant resource investment in Africa told me that he had no problem with the Chinese, as they were his company’s largest buyer of their African operations, and, he joked, “The customer is always right.” Others simply don’t want to look like sore losers and remain silent.
Nevertheless, the Chinese dominance is a growing concern in the United States. Policymakers are working to address the issue, but continue to do so with little consultation with the private sector. A key to the Chinese success is the willingness of the government to engage in partnership with a very vibrant private sector in China. It is important to note that China does finance its own government-owned companies, assets that the U.S. government system cannot match, but it has also encouraged thousands of smaller businesses, which it does not finance, to go abroad and especially to Africa to seek new business. Every Chinese Embassy in Africa is equipped to help these businesses in whatever they can, even though they do not provide finances to many of them. There are also large Chinese private companies that do not seek government help, but who do understand the importance of Africa to their future and therefore make their own investments, as many of our larger companies are doing as well.
We need far more true partnership between the public and private sector, and the public sector needs to make the adjustments necessary to support U.S. investment in Africa. We also need leadership to explain to America the importance of Africa to our own economy and political future. That case remains to be made in a positive and effective manner, and if it will not be made this will prove to be a tragedy for our future.
Stephen Hayes is president and CEO of the Corporate Council on Africa.
