has destroyed AfricaÊs quest for human rights, political freedom, and environmental change. Articles such as the New York TimesÊ ÂNew Power in Africa 12 Ê are quick to infer that ChinaÊs profit-driven interest in Africa is based on a foundation of exploitative relationships with corrupt African governments. Indeed, China has dealt and traded with the countries of Sudan and Zimbabwe, playing an active role in keeping the corrupt dictators in power. However, Chris Donnegan, an employee of European diamond mining company De Beers 13 with whom I conducted an interview as primary research for this project, noted that, despite being criticized for supporting ZimbabweÊs corrupt regime, the revenue from diamond mining by Chinese companies such as Engin helped lift the Zimbabwean economy out of a spiralling crisis which otherwise would have caused arguably far more damage to the country than Mugabe could. As Zeleza notes, Chinese investment is centred in four key areas: agriculture, natural resources, industrial processing and infrastructure. In western circles, the term ÂChinese investment in Agriculture and Natural ResourcesÊ is often seen as a synonym for Âeconomic exploitation of a vulnerable AfricaÊs only assets.Ê Even ignoring the obvious hypocrisy (in 2006 China received just 8.7% of AfricaÊs oil exports whilst Europe and the US, the two powers levying this rhetoric most aboundingly, took 36% and 33% respectively), this discourse is misguided: firstly, despite what western discourse leads us to believe, China is buying resources at a fair price. Not only do they have to respect local trade laws but also face strong international competition for these limited resources: in 2011 the Angolan president famously reminded his Chinese counterpart, ÂYou are not our only friend 14 .ÊFurthermore, 12 The Editorial Board. 2007. New Power in Africa - New York Times 13 ChrisÊ opinions are his own personal views and do not represent the views of De Beers or any part of the Anglo American group. 14 The Economist. 2013. Trying to pull together.
the Carnegie Endowment for International Peace highlights that in 2009 only about 29% of China's foreign direct investment (FDI) went to the extractive industries. By contrast, in the same year, mining accounted for about 60% of U.S. FDI to Africa 15 . Secondly, as Barry Satan highlights, big Sino-African resource deals, particularly oil, are often packaged with loans for infrastructural projects. 16 For example at the fifth Forum on China-Africa Cooperation held in Beijing in July 2012 Chinese President Hu Jintao commissioned the building of 100 schools, 30 hospitals, 30 anti- malaria centres and 20 agricultural demonstration centres. 17 The educational, health and training facilities China provides are absolutely vital for AfricaÊs introduction into the big global economic markets as they provide a springboard for rapid development. It is in fact the latter two investment areas, industrial processing and infrastructure, that I believe are absolutely key in ensuring that Africa will see long term economic benefit of this Sino-African relationship. Ensuring the African economy diversifies beyond the narrow primary sector by bolstering the Âvalue addedÊ chain is essential to ensure security for the future of the continentsÊ economy, as it will, if done effectively, negate the dependency that African nations have on exports to other nations. With ChinaÊs investment providing a much-needed spark to light AfricaÊs accumulation of economic kindling, AfricaÊs economy is projected to grow by 4.8% in 2013, burgeoning further to 5.3% in 2014. 18 Predictions even suggest nations like Angola could become world powers within the next few decades. 19 15 Proctor, K. 2013. China and Africa: What the U.S. doesn't understand - Fortune Management 16 Sautman, B et al. 2007. The Forest for the Trees: Trade, Investment and the China-in-Africa Discourse 17 Ighobor, K. 2013. China in the heart of Africa | Africa Renewal Online 18 Africaneconomicoutlook.org. 2013. African Economic Outlook - Measuring the pulse of Africa 19 Wall, D. 2011. The Rise and Rise of Angola | Think Africa Press Unfortunately, the shadow of the 19 th century
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