Chinese Investments in Africa Will Bring Africa Up To Speed

The world has witnessed a surge in Chinese investment outside of its borders in the last decade. As China rapidly grew to establish itself as a major component of the global economy, it looked outwards for avenues of growth and further development. Besides the economic gains and the diplomatic influence that these global investments brought to China, they have also been extremely useful for the host economies.

Africa is one of the pertinent examples of this assertion.

Many commentators on the economic rise of China have termed the 21^st century to be the “Chinese Century.” If Chinese investments continue to fuel African progress and development, the next century could very well see the rise of Africa.

Chinese actions seem to be guided by the famous Chinese proverb that says “if you want to progress, build roads and infrastructure first.” Chinese investments across different countries in Africa are heavily focused on infrastructure development and building of vital communication networks. The ones that have caught the most attention are investments in infrastructure projects such as railways, building of dams, ports, and laying down of telecommunication networks.

A breakdown of Chinese investments in the African region reveals that the shipping, ports, and transport sectors have received the major chunk of investments which stand at 52.8%. This is followed by the energy sector at 17.6%, real estate at 14.3%, and mining which received 7.7% of the total Chinese investments across different sectors in Africa.

These investments will lay the groundwork for economic development and prepare African economies to rise economically. There has been a rise in a culture of innovation and entrepreneurship across the emerging economies in the African continent. Infrastructure facilities such as telecommunication networks connect the talented and driven youth to a world of possibilities. The youth bulge in Africa can be turned into a strength for the region given that they are well equipped with the modern technologies and provided with the entire infrastructure that can be leveraged for innovation and economic progress.

Between 2005 and 2018, almost $300 billion have flown into Sub- Saharan Africa. These numbers are only going to increase as just last year, the Chinese president promised to invest more heavily into African economies. Furthermore, Chinese investments are seen more favorably by host countries in Africa than investments made by the Western world.