Why Sino-Africa Ties are Good for Africa

The other day I heard former Nigerian president Olusegun Obasanjo wondering why west countries ask him about Africa’s new colonial master, China. As he wonders, everybody, too, wonders.  How China can be Africa’s new colonial master just because it’s invested a fraction of its money in Africa? Statistically speaking, America is taking a lion share when it comes to China’s foreign investment. For example, in 2012 China invested heavily in the US. “Some of the biggest transactions to have transpired this year in North America include the impending $15.1 billion CNOOC - Nexen deal, and Dalian Wanda’s $2.6 billion acquisition of AMC Entertainment,” Firmex. According to Firmex the US ranks second with the chunk of 42 billion dollars after Australia with 45.2 billion dollar investment. When it comes to Africa, only one country, Nigeria, features in with 18.8 billion dollar investment.

The Washington post of January 30, 2013 had this to say regarding the increase in Sino-America investment, “Chinese companies invested $6.5 billion in the United States last year. That’s a record and a 17 percent increase over the prior year, according to data assembled by the Rhodium Group.” This is not easy money. It is a fortune no sane person would turn down.

Although west’s doing trying to discourage Africa from taking up the opportunity to do business with China, African leaders and policy makers need to take this challenge and turn it into a tool for an economic takeoff. Instead of worrying and regretting, Africa needs to learn from past mistake in the relationship with her former colonial masters.

It’s upon Africa to put her house in order. Instead of worrying and feel doomed; Africa countries should put good policies in place to benefit from neo-Sino-African partnership. Yeah. If Africa repeats past mistakes, China’s likely to become a new colonial master. Africa’s immense resources China and the west need. Africa needs to competitively take part in this new world order where markets lead politics instead of politics leading the economy and commerce. If anything, had the US shied away or feared that China would become its colonial master, US’s economy would have been in a bigger quandary than it is now. The US didn't only acclaim investments from China. It also took multi-billion loans from China. If the US could do this, why couldn't Africa do? If investing in the country is colonialism, well, China is America’s new colonial master.

When the 2008’s capital crunch in the US started biting, the US didn't badge. It directly approached China seducing it to invest in its economy regardless their traditional political and economic differences. The US put its hegemonic leadership on the line to see to it that it survives the capital crunch.  If the hegemonic superpower would nary worry about its place, why Africa should worry or be made to worry? Africa shouldn't succumb to these machinations. The US did it. Africa can still do it and survive. Importantly, Africa must be prepared to obey the rules of the game shall she hope to survive.

When it comes to Sino-African relationship, worries are about: lack of sound policy, preparedness and insight and corruption and rent-seeking-endemic behaviour in the ranks. Former Chinese president Hu Jintao once said, “The Chinese and African peoples have always treated each other as equals... we will... forever be a good friend, good partner and good brother of the African people.” Instead of being equal politically, Africa needs to create conducive environment that will makes us equal and partners economically.

Essentially, business is a profit-making game.  What is required is edge. Instead of Africa listening to doomsayers she’d take the challenge and utilize it for her benefit. For example, Africa needs to improve her laws governing contracts and business. Substandard items shouldn't be allowed in Africa. Resource depredation also should be dealt with seriously. Currently, Asia’s money’s created poaching problems for many African countries. Many elephants and rhinos have been decimated. Such sorts of things must be dealt with to avoid turning Africa into another loser.

In sum, when it comes to the fear of the dangers of Sino-Africa relationship, I fear African corrupt regimes more than China. If self-serving, greed, myopia and unpreparedness go on unabated, Sino-Africa relationship can become a curse in lieu of blessing. If African leaders go on with their monkey business as usual, differently from the US, China’s likely to become Africa’s neo-colonial master as the west has always aspired to remain.

Source: The African Executive Magazine Nov., 6, 2013.