Another year has passed and with it inevitable changes. As we welcome 2011, one of the biggest changes is the complete makeover of ChinAfrica. We have modernized our cover design and inside pages to make reading ChinAfrica a more pleasant experience. We remain committed to bringing you another year of objective, balanced and truthful reader-driven reporting, analyses, debate and investigation on all major news, business and lifestyle issues pertaining to China and Africa.
Africa has much to achieve in 2011, most notably because economic growth is expected to be higher in developing and emerging economies this year. The International Monetary Fund (IMF) has forecast Sub-Saharan Africa growth at 5.5 percent in 2011. Some countries, like Ghana, have been projected to grow at 9.9 percent in 2011.
It signals a positive outlook for Africa where economic revival seems to be wearing a cloak of optimism.
Much of this optimism is linked to Chinese investment in infrastructure, which already has seen an impressive list that includes stadiums, roads, universities, rail lines and hospitals. To African governments, this ongoing infrastructure construction, built in a timely and proficient manner, provides a very positive avenue to gaining access to the basic services required by their people.
It is therefore interesting to read about the diplomatic cable published by the whistleblowing website Wikileaks recently, which revealed that, amongst others, the U.S. in particular is bothered by China's Africa policy.
Quoting a senior U.S. official in Nigeria, the released secret cable said China is "a very aggressive and pernicious economic competitor with no morals."
However there is little pernicious behavior in providing infrastructure in exchange for oil and minerals, as evidenced in deals struck on the recent visit to Botswana and Angola by China's Vice President Xi Jinping. Traditionally this kind of deal has not been seen from Western countries. China is certainly not in a controlling mode in Africa, but acts more as a facilitator. Financial institutions from China and Africa are cooperating to facilitate trade. A prime example of this was the 2007 buy-in for $5.6 billion of a 20 percent stake in South Africa's Standard Bank by the Industrial and Commercial Bank of China. At that time it was the largest foreign direct investment in Africa.
"Chinese firms are not relying solely on Chinese finance to do the kind of business that they're involved in," said Chris Alden, an Africa expert at the London School of Economics in a report on iafrica.com.
"They're bidding for and increasingly getting tenders, World Bank tenders or other public tenders ... that are not linked with Chinese financial incentives or interests," said Alden.
Increasingly Africans have a bigger say in whom they want to do business with and China is consistently emerging as the country of choice. 2011 will no doubt be loaded with opportunities and challenges.
More recently one of these challenges is the volatile situation in Cote d'Ivoire. Once again it is important to note that African leaders must adopt the mindset of accepting political defeat graciously. The interests and image of the nation and ultimately the continent far outweigh the egocentric greed for power.
Looking forward with hope, we welcome your feedback on our new look and wish all our readers a year of peace, abundance and joy.
The Editor |