China & Africa: Weathering the Global Financial Crisis

China Monitor June 2009June 2009 – Issue 41

Perhaps it can be said that marginalization is better than globalization for Africa during this time of global crisis. Economists, governments and businesses are also trying to ascertain the impact of the crisis on the growth prospects of African economies. The withdrawal of portfolio capital, cutting of foreign aid and drying up of foreign direct investment will undoubtedly knock Africa’s growth prospects and set back development targets over the medium term. Going forward, demand for commodities mined in Africa will certainly be cut drastically in OECD economies, but there is hope that buoyant growth – albeit subdued to an extent – in some emerging markets will offset the revenue loss from commodities exports to the developed world.
Read More »

Chinese Agricultural Technology Development in an African Context

China Monitor - Issue 39 - Apr 2009May 2009 – Issue 40

Investment in agriculture in Africa is both an emotional issue amongst indigenous peoples and is all too often unnecessarily politicized. The extractive industries are the foundation of Africa’s economy but are also by their very nature the most challenging to invest capital into. The investment periods are very long, resources are mostly inaccessible, infrastructure does support the transportation of the extracted resource, negotiations with governments that often adopt resource-nationalist positions are protracted, and opposition from civil society or NGO groups is par for the course. Navigating these challenges is what investors in Africa’s extractive industries face.
Read More »

China & Mauritius – Perspectives on a Trans-Indian Ocean Partnership

China Monitor - Issue 39 - April 2009April 2009 – Issue 39

Mauritius is probably the most agile economy in Africa. Its success has been based upon its ability to liberalise and diversify away from a single commodity dependent economy. Mauritius is no longer dependent upon the export of sugar and is emerging as a successful African economy that has created new growth drivers in tourism, offshore finance, trade and increasingly textile & clothing (T&C) manufacturing. It would not be out of place to characterize Mauritius as the Dubai of Africa.

Read More »

China’s Involvement in Angola: Mutually beneficial commercial pragmatism?

china-monitor-march-2009March 2009 – Issue 38

Beyond the usual political rhetoric, Angola has become a core strategic partner of China Inc. in Africa. It has also been amongst the largest recipients of Chinese investment on the continent. Despite the poor relationship between the Chinese Communist Party and the MPLA over most of the civil war period in Angola, their relationship is now grounded in commercial pragmatic realism. Read More »

South Africa-China Textile Quota’s: Recent developments and trade prospects

China Monitor - Issue 37 - Feb 2009February 2009 – Issue 37

At the end of 2008, China was Africa’s second single largest trading partner with trade totaling US$106.8bn.This surpassed the notable US$100bn target that had been set for 2010 two years earlier. Trade is relatively balanced with African economies purchasing over US$50bn of Chinese traded products last year. This partly reflects the strength of the rising African consumer market in the continent’s emerging economies. Read More »