Business
Why Asian giants scent opportunity in Africa
China and India, Asia’s two emerging powerhouses, have made no secret of their desire to engage with resource-rich Africa as they seek new economic partnerships to fuel their booming economies.
With ties to the continent that already go back decades, the two Asian giants have been ratcheting up their investment push into Africa in recent years as they look to forge new trade routes and expand on existing alliances.
“They are seeing Africa as an opportunity, rather than a liability or a beggar,” says Sven Grimm, the director of the Centre for Chinese Studies at Stellenbosch University in South Africa.
“They’re here to invest and to seek opportunities for their companies and the rationale inside that is that if we exploit these opportunities that will help Africa: whether it does, that’s the question.”
From drilling oil in Angola to building state of the art hospitals in Congo and from selling furniture in South Africa’s markets to erecting flamboyant football stadiums in Sierra Leone, China’s deepening engagement with Africa has been rapidly shaping the continent’s landscape, as well as its efforts for economic development.
Already Africa’s largest trade partner, China’s economic cooperation with the continent has shot up in recent years — two-way trade between the two surged to a record $114.8 billion last year, according to Chinese officials.
Linking aid, trade and investment, Beijing’s business model in Africa involves building extensive infrastructure projects and granting loans in exchange for access to natural resources, trade opportunities and expansion into new markets.
