Rising expectations as optimism rules

China's growing economic engagements have helped bolster Africa's economic outlook

Perhaps nowhere else in the world is China's rapid rise to power in recent years more evident than in Africa. From multi-billion-dollar investments in oil and minerals to the influx of thousands of merchants, laborers and inexpensive consumer goods, China's economic and political reach is redefining Africa's traditional ties with the international community.

The latest symbol of China's dramatic emergence as Africa's closest development partner is the gift of the $200-million gleaming 20-story headquarters of the African Union in Addis Ababa. Previously China had either donated or assisted in building schools, hospitals, railways, roads, dams, stadiums, sugar mills, parliament buildings, palaces, water supply projects, among others.

Trade between Africa and China has grown at a breath-taking pace. It was $10.5 billion in 2000, $40 billion in 2005, $108 billion in 2008 and $210 billion last year.

China surpassed the US in 2009 to become Africa's largest trading partner. There were more than 2,000 Chinese companies in Africa by the end of last year in sectors like agriculture, infrastructure, manufacturing, resource exploitation, finance, trade, and logistics.

The Chinese government is also trying to cement China's dominance by burnishing its image through initiatives such as $20 billion credit to African countries to develop infrastructure and the African Talents Program, which aims to train 30,000 Africans in various sectors.

In general three perspectives explain the ongoing debate about the long-term impact and influence of China in Africa: Sino-optimism, Sino-pragmatism, and Sino-pessimism.

From the perspective of Sino-optimism, China's presence in Africa is to be celebrated. Africa stands to gain much from closer Sino-African relations.

According to Sino-pragmatism, China's greater involvement in Africa would be neo-colonial in consequence if not in intent, since the logic of capital is the same whether those in the driving seat are Europeans, Americans or Chinese.

In the Sino-pessimist paradigm, Africa's engagement with China would perpetuate the structure of dependency and underdevelopment that is already in place and, besides, inhibit or block Africa's efforts to overcome them.

It may be noted that all the above three perspectives are discernible in discussions about the potential impact of Sino-African relations, particularly in the economic field, but it is largely Sino-optimism which captures the mood of the moment.

The West is naturally nervous about China's activities in Africa. China's policy of non-interference in the internal affairs of African countries and its fast approach to aid delivery make it more attractive than Western donors.

There have also been several positive outcomes of China's influence on Africa's economy. China's growing economic engagement in Africa has greatly contributed to the revival of economic fortunes and improved the continent's economic outlook.

Today Africa is one of the fastest growing regions in the world. As Africa's economy heads for a take-off, the need for massive investment is becoming evident by the day. China, with its massive foreign exchange reserves ($3.2 trillion in 2012) has the potential to solve the capital shortage issues in Africa. It could also play a key role in the industrialization of Africa. Closer economic ties have helped China secure the raw materials that are essential for its industrial development. More importantly, for Africa it has led to previously unimaginable growth rates and helped end economic marginalization.

Besides, from a geo-political point of view, enhancing economic cooperation between China and Africa (and other developing countries) will help boost the influence of the developing world as a whole, and also lead to a more just economic and political order in the world.

Deeper engagement with China (and other emerging powers) is both desirable and inevitable for Africa. However, the burden of envisioning, planning and implementing partnerships with China and ensuring advantages for Africa lies squarely with African leaders. They should think of what Africa can do with China as a partner, rather than what China can do for Africa.

The author is a professor at the Addis Ababa University in Ethiopia. The views do not necessarily reflect those of China Daily.

(China Daily Africa Weekly 05/09/2014 page13)