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China’s President Xi Jinping announced a plan to invest $60 billion in development projects across Africa. The goal is to reduce poverty and improve public health, infrastructure and industrialization. Funding will go to vocational schools, scholarships, and exchange programs with China. In addition, there will be zero-interest loans to governments and $156 million of emergency food aid. “China-Africa relations have today reached a stage of growth unmatched in history,” Xi said. “Let’s join hands…and open a new era of China-Africa win-win cooperation and common development.” His announcement was met with excitement and skepticism from different parties.
Pros: China can provide training and jobs to Africans
In addition to creating infrastructure and funding health care, China can also help boost local economies. Technology companies have helped develop local skills. For example, the Chinese telecom firm Huawei established a West African training school in Abuja, Nigeria 10 years ago. The school refines the skills of local engineers, who then run and support cell phone networks; Africa has experienced a telecommunications revolution. Chinese firms also create jobs for locals: a survey spanning 400 Chinese companies operating in over 40 African countries found that more than 80% of workers were local; some companies had localized as much as 99% of their workforces.
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Jacob Zuma is all for it
South African President Jacob Zuma is a pro-Chinese investment. He believes that closer ties between Africa and China will be a win-win co-operation. One of the deals announced was a $500m loan to South Africa’s state power company to improve nuclear co-operation. Another deal involved plans to build a car manufacturing plant in the country. Before President Xi arrived in South Africa, firms from both nations had announced $930m in investments in metal, energy and pharmaceutical sectors. Zuma thanked Xi for taking China’s relationship with Africa to its highest level ever and said cooperation was based on sincerity, trust, equality, and mutual benefit.
“Africa and China are together a fraternal community with a shared and prosperous future. China and Africa want to prosper together,” he said.
Cons: the investment may bring issues to Nigeria
Nigeria is the biggest overseas customer of Chinese construction companies. China is the top lender to Nigeria and has been helping the African country build roads, rail lines, airport terminals, power plants and other infrastructure. China’s low-cost goods are available worldwide but are causing an issue in Nigeria. Subpar counterfeit products are becoming widespread in the country. In some cases, the quality does not matter. However, it can become very dangerous in electronic goods. A few Chinese electrical products have caused fires in Nigeria. China’s low-cost goods are bringing another potential issue for Nigeria – it is difficult for Nigerians to compete with the prices. A few protests have broken out; workers in Lagos protested layoffs by a Chinese construction company. The East Asian country is creating African fabric designs that are cheaper than those made in Nigeria. Employment in Nigeria’s textile and apparel sector has fallen from 600,000 to 20,000 people in two decades.
SEE ALSO: Being Black In China: 10 Situations You Will Experience.
