It is essential to recognise that China is the leading partner in terms of investment projects in Africa, considering the policies implemented by the Beijing Government to foster its partnerships with nearly all 54 African countries.
A geopolitical strategy whose aim is to permit African States to go on a winning cooperation, far from imposing unilateral and bilateral relationships of the former colonial masters.
The rate of investment could have been a successful story if African States had put together efforts to fight against corruption, discrimination, embezzlement, and mismanagement of funds and development projects implemented by the Chinese Government.
The reality of the increased debt of African countries to China is a concern of ours.
Over the last fifteen years, China has increased its investments across Africa, with some countries being more privileged than others. South Africa is practically at the frontline of the Chinese investment in Africa due to its political ties with China, and both are members of the BRICS community.
Cooperation between the two States is very significant in the trade domain. According to statistics from the past few decades, bilateral trade has grown from $1.34 billion in 2000 to $34.8 billion in 2023, making South Africa China’s largest trading partner in Africa.
Bilateral trade reached $56.61 billion in 2023, a significant increase in 2024, considering the signing of new partnerships on the eve of the Forum on China-Africa Cooperation (FOCAC 2024).
The agreements cover various areas, including housing, the exploitation of dairy products, and the export of raw wool from South Africa to China. The two Heads of State also agreed to promote fair trade and discuss ways to stimulate bilateral investments between their industrial and commercial communities.
In addition, China has expressed its intention to promote job creation in South Africa by organising recruitment conferences for Chinese companies, aimed at boosting local employment. China is also ready to share its expertise in poverty reduction and rural revitalisation.
According to statistics, in April 2024, China represented 11.6% of South Africa’s exports and 23.1% of its imports.
The fitness of the two countries’ relations, based on win-win cooperation, has allowed the two South African and Chinese leaders to call on the international community to support the African Continental Free Trade Area, promoting African integration.
China’s investment in the northern and Eastern part of Africa is consistent with that of South Africa. Algeria and Egypt are partners in a mutually beneficial cooperation, centred on energy development and mining.
The construction of an Electric Vehicle project in the region, with Gotion High-Tech investing $ 6.3 billion in a giant factory, appears to be an added value to Chinese investment in the region.
During the China Arab forum held in July 2018, President Xi Jinping expressed the necessity to go also on the Belt and Road Initiative (BRI), insisting that development of road infrastructure was the key to resolve the security issues in the middle East and North Africa (MENA), taking on account the fact that China is the leading investor in Middle East.
China needs to form partnerships with countries that demonstrate good governance, effective leadership, and the capacity to implement development projects that benefit their populations or communities.
From this perspective, China has increased its investments in West Africa, particularly since the COVID-19 pandemic, with a focus on the Belt and Road Initiative and infrastructure projects.
We should not forget the wave of change that is sweeping across some West African states, such as Mali, Burkina Faso, and Niger. These countries, for the good run of their various economies, call upon China and Russia to be their major partners politically, economically and militarily.
These leaders expressed their willingness to move from the former colonial system to a more dynamic and efficient economic approach, which will help their various populations move out of poverty.
Due to the latest developments, China’s investment in West Africa has seen a considerable rebound, focusing on trade and financial commitments, as well as renewable energy projects, including solar plants and infrastructure construction, such as railways and ports, alongside the expansion of the Belt and Road Initiative. These projects are funded by loans or direct investment.
Benin, Senegal and Côte d’Ivoire have received Chinese loans. Still, it is good to know that these countries above mentioned are using the economic tie with China to improve the living condition of their citizens, a good example, far from the realities of some countries that benefited the same opportunities or even more better but are facing debt trap and what is the real cause?
Some countries have called for Chinese investment and received more than expected, but due to some irregularities, they are facing a debt trap. It is unfortunate that some countries are mismanaging the funds they borrow from their Chinese partner. These countries consider China to be more dominant. Still, in reality, it is a question of mismanagement, corruption, discrimination, and embezzlement of funds provided by the Chinese government through loans or direct investment.
In this regard, some countries have been blacklisted, such as Zimbabwe, Djibouti, and Cameroon, due to their mismanagement and increasing debt to China. In a daily report, it is noted that Cameroon spend 90% of Chinese development loans in its French-speaking region, and this inequality may be the cause of the socio-political instability since 2016.
It is reported that during the COVID-19 pandemic, some government officials from Cameroon and Senegal embezzled funds (billions) that the Chinese Government allocated to combat the illness. It is also the case with China’s investment in African countries, such as the Central African Republic. The rate of corruption and embezzlement in Zimbabwe is also a consideration.
China’s strategy to solidify its position as a significant global economic and political power necessitates safeguarding its partnership with African countries through good governance, thereby avoiding a future perception as a more dominant partner in investment and international business.
By Lilian Neg, Africa correspondent for NewsVoice
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