The Advantages And Disadvantages Of Chinese Investors In Various African Countries
Introduction
Over the years, many African countries have seen an increase in Chinese investors. Countries such as Malawi, Zambia, Namibia and Botswana have reported an increase of Chinese foreign investors. The involvement of Chinese investors in the economics of African countries may cause complications and issues to the African economy. For instance, Redvers, L finds that Lusaka city’s Bank of China branch now handles counter deposits and withdrawals in Yuan (Chinese currency). The increase of Chinese investors has both negatively and positively affected various African economies causing High debt, loss of control over the country’s economy and high levels of unemployment. This essay gives an insight on the advantages and disadvantages of Chinese investors in various African countries.
Construction
With the world becoming a global village, this means the world is interdependent for example, Malawi exports tea and tobacco to the United Kingdom and in return the United Kingdom supplies machinery to Malawi which it acquired from japan. The Chinese are well known for their various construction techniques and that their infrastructure tends to last very long. In Zambia only, since the year 2011, over 300 new structures including the Levy Mwanawasa stadium, Michael C. Sata bridge, The National Heroes Stadium and more recently The Kenneth Kaunda International Airport is undergoing major renovations have all been constructed through the China- Zambia government partnership. Such international links encourage exchange of goods and services between countries. China assists various African countries with equipment for mines and various construction works in Africa such as dump trucks, mining computers and underground drillers. Apart from that, the Chinese offer training to the miners on how to use equipment.
Education and healthcare
Education has become an important link between Africa and China. China offers over 500 different scholarships to students in Zambia only who wish to pursue their higher education in china. Students who attain these scholarships often tend to work in the host country temporarily or permanently after attaining their required level of education.
A Confucius center is a non-profit making public educational organisation associated with the Ministry of Education of the People’s Republic of China. Their aim is mostly to promote Chinese language as well as cultural diversity and exploration. In 2004, the University of Nairobi was one of the first African countries to have a Confucius center, the University of Zambia had one opened in 2009 and the University of Namibia established one in 2014. Teachers from china also volunteer to teach Chinese in high schools and universities in Africa.
Apart from their educational scholarships, the Chinese investors also offer quality healthcare to various African countries. According to Chomba, M, The Ministry of Health spokesperson Kennedy Malama has commended the Chinese government for its unwavering support to Zambia’s health sector. Since 1978, China has sent 18 medical teams and over 400 doctors to Zambia to offer specialised medical health services.
The Chinese have also contributed to the new technology in hospitals such as modern x-ray machines, more lab apparatus and more medical experts that can operate the machines.
Agriculture
Agribusiness is one of the keys to transforming the African economy greatly. West African countries such as Nigeria, Cameroon, Togo and Sierra Leone are known to produce cash crops including coffee, cassava and sorghum. East African countries such as Kenya and Ethiopia produce coffee on a large scale often exported to the western world. Southern African countries such as Mozambique, Democratic Republic of Congo, Tanzania, Angola and Zambia are known to produce maize, rice, cotton and wheat. China often provides aid to African countries. For example, China offered over $2. 6 billion to 100 African countries in 2016. Although the Chinese investment has only popularised in the 2000s, it dates back as far as the 1980s.
Brautigram,D. (2014) writes that The largest of these new investments is in Mozambique, where Wanbao, a private Chinese grain trading company, has rebuilt about 10,000 hectares of a colonial-era irrigated perimeter. The company cultivates rice using a combination of company-farmer contracts and direct production, and plans to expand to a full 20,000 hectares. Several companies are currently pursuing large investments in Madagascar (castor oil), Sierra Leone (rubber), Sudan (cotton and sugar), but these have yet to materialize on the ground. Chinese companies have acquired land in African countries that they assist agriculture by supplying their own machinery such as irrigation systems. This encourages a mass production of agricultural produce.
Crime
As much as allowing the Chinese investors is good for the African continent. This also has disadvantages that affect the economy of a country. Crime being one of the most common threat to national economies. Human trafficking being one common crime. Perpetrators often target children as a form of cheap labour and these children are not even at a legal age to work. They are not giving proper care or salaries.
Kelley,B. M (2012) reports that, Three dozen Chinese gangsters who are accused of brutal crimes against Chinese nationals in Angola have been extradited to Beijing under police guard, Al-Jazeera reports . The 37 people were allegedly involved in kidnapping, robbery, blackmail, human trafficking and forced prostitution in the southwestern African country, according to the Xinhua news agency.
Poaching, is also one popular crime. Poaching is the illegal slaughtering and capturing of wild animals. Elephants and Rhinos are commonly poached for their tusks from which Ivory is obtained. Other animals include tigers and leopards often for their skin. Most of these animals are threatened to extinction due to excessive poaching. Ombati,C. (2018) reports that Twenty-one Chinese nationals have been arrested in Nairobi, Kenya for operating a casino without valid work permits. According to police, the 11 men and 10 women were acting as betting agents near Yaya Centre. Many illegal Chinese nationals often acquire tourist visas from home country and begin working in host countries without official government work permits. Statistics show that in the past 20 years over one million Chinese people have moved into Africa. In 2016, South Africa had the largest Chinese population. Chinese investors also tend to supply counterfeit goods to African countries. For example more recently Zambian hospitals have reported a case of counterfeit oral contraceptive pills for women. Another case was of an imitation of a popular skin lightening cream that contained a hazardous chemical called Parabens. Drug trafficking is another common crime. Dangerous drugs such as marijuana, cocaine and heroine are popular drugs that often brought into various African countries as imports.
Unemployment
Most Chinese investors prefer employing their own people to do their work. This greatly reduces employment in Africa. Most skilled or professional workers are forced to remain unemployed because positions of work have been filled by Chinese nationals. Employees that work for most Chinese have poor and cheap working conditions. Dependence on the Chinese government also causes high levels of debt. An example can be derived from what recently happened to Zambia earlier this year (2018), Chad, Eritrea, Mozambique, Congo Republic, South Sudan and Zimbabwe were considered to be in debt distress at the end of 2017 while Zambia and Ethiopia were downgraded to "high risk of debt distress". . Zambia faces a high risk of debt distress with having the United Kingdom putting a halt to donor aid on Zambia. Rumours of the Chinese taking over the country’s electricity company Zambia Electricity Supply Corporation (ZESCO) have greatly circulated too.
Natural Resources
Most African countries are rich in mineral resources such as Burundi and Tanzania which has tremendous amounts of metals such as aluminum, bronze, copper brass and zinc. The Chinese often export these minerals in bulk to other countries and profits often made belong to the Chinese government. Not only does China export Africa’s Natural resources but also ignores recruiting African workers. This leads to depreciation in various country’s economies.
Conclusion
The Chinese government assists the African Continent greatly through their various education, health care and employment schemes. As much as Africa is a slow developing continent, countries need to work or make decisions individually. The Chinese government must not completely interfere in the decisions made by various African stakeholders. African leaders must also not result into borrowing money from donors and focus more on available resources in order to develop Africa.
