China in Africa: The Construction and Extraction!

AU Headquarters in Addis Ababa Ethiopia, that was constructed by the Chinese government as a donation to African countries.

In the past 10 years, Chinese government has expanded and strengthen its relationship with African countries in several ways. The sign of the strengthened cooperation between China and Africa can be the beautiful construction of blocks; let say the headquarters of the African Unionin Addis Ababa Ethiopia,  fancy roads and bridges in some African countries (at least the ones I have casted my eyes) including Ethiopia, Kenya, Rwanda, Tanzania, Zambia, and many other.

Last year, China offered US $ 20 billion in terms of loan, for development projects in Africa for the time of three years. Accordingly, this amount has doubled compared to the amount provided in 2009. 

Why would the African countries be the main focus for the Chinese government to bring loan with simple terms, especially now? There is a lot to ask about whether this cooperation is true of false, will the cooperation last long? Are there any long term consequences because of this cooperation?

Still there is a commonality between China and most African country as what the director of African Studies Program at theJohns Hopkins University in Washington, D.C., Dr Peter Lewis  explains that, “China, after all, was not long ago a poor, agrarian country, broadly similar to some of the development challenges facing sub-Saharan Africa. And as a poor, agrarian country that has become rich in a rather breathtaking climb to greater prosperity, many analysts have said that this presents possibilities for Africa – an alternative development model,” This may be a motive to upgrade African countries from the state they are.

The Benefits:

One of the main benefits that African countries are receiving from the cooperation with China is the fact that there are a lot of development projects that are carried out smoothly because of the provided loans and grants. The construction of roads has facilitated easy transportation infrastructures in different places, let say from urban to rural areas. 

Also there are several signed projects on the side of health. In Tanzania there are some hospitals that have been constructed by the Chinese government. This is a good thing as it helps to facilitate the provision of health services to people in a modern way-modern building, comfortable one and modern medical equipment. In the Democratic Republic of Congo, Chinese government has managed to construct several hospitals and health centers too. 

The construction of building has also added to not only provision of offices but also decorating different cities and towns because of the styles that buildings are constructed from. It is easier to identify any constructed building by the Chinese construction company. 

Senegalese and Chinese workers at a construction site in Dakar. Photograph: Seyllou/AFP/Getty Images

Yet there are several water well projects that are sponsored by the Chinese government in different places of Africa. At the end of the day, the constructions of wells help local people to access water service.  

Chinese government is engaging in almost all spheres of life by investing in different areas such as sports and entertainment, mining sector, business and economy, health sector, education, water supply and constructions. 

The provision of loans has made Zimbabwe to defuse its financial crisis after expelling all foreign investors in the country. China has partnered with Zimbabwe and help to sort some economic cases in the country.

Challenges:

This cooperation has both positive and negative impact, probably more negative to African countries.Despite providing loan to the African countries, yet the Chinese government is insisting on providing their own constructors to construct roads and building. This hinders local construction companies not to be able to win such tenders and ending up backward. 

Also, it is claimed that the China engagement to Africa is one way of finding resources for their growing industries. Resources such as metals, ores, oil and scraps are some of the most imports to China. The need of resources is because of china production of different materials such as electronics and construction resources.   

Yet the population increase in China is another thing that is bringing about challenge to the Chinese government to find a place of reducing their population through this partnership. The assertion is that, the Chinese constructors are brought to Africa purposely to reduce population in their country. 

The market place is another thing to explore as the china produced products are flooding in African markets. This situation is bringing about a stiff competition between local producers and the Chinese goods; which temp consumers to set their preference over Chinese goods because of the market price. Today, to purchase consumer goods such as clothes, shoes, home utensils and house decorations is very cheap if a consumer choose to purchase a product from China. 

On the other hand, the products from the local industries are sold in expensive cost to the extent that the local consumers can not afford. But why this? Probably the reason behind is, the low cost goods are produces using the low cost resources such as raw goods, man power, shipping expenses and even payment of tax to the respective country. 

People's Reaction

Therefore, ordinary people have different reactions over the Chinese business in Africa. Some groups are impressed with this intervention that is caused by presence of China in different areas, while some are not.  

From my point of view, maybe this is the new colonialism that after the Western countries colonizing Africa, now it is the time of the Eastern block –specifically China!  Maybe this is the Dead Aid as what Dambisa Moyo has discussed in her book,trying to leave African countries bankrupt and China dependent forever! What is the hidden motive behind?