The Chinese presence in Africa is quite extraordinary and the
continent collectively is the third-largest recipient of Chinese outward
foreign direct investment of nearly US$90bil.
AFRICA, with
its one billion population and surging birth and economic growth rates,
is and will be the next economic battlefield, a terrain that will be
fought over by Chinese, Indian, American and European investors.
While
Malaysia is a small fry among this company, we have a surprisingly high
profile thanks to Tun Dr Mahathir Mohamad’s foresight and enthusiasm
for the continent in the 80s and 90s. Dr Mahathir founded the Langkawi
International Dialogues in 1995, which was and remains an important
platform for Malaysia to engage with African nations.
We
shouldn’t let these relationships lie forgotten. Instead, we need to
build on this remarkable goodwill because it can provide real business
opportunities for our country.
As the IMF had forecast in October
2012, Sub-Saharan Africa’s regional output is expected to expand by
about 5.25% in 2012 and 2013.
The Financial Times on the other hand reported in November 2011 that the African Development Bank expected pan-African GDP in 2012 to be 5.5%.
True,
poverty and political instability remain major issues but these are
phenomenal rates compared to its former European colonial masters now.
Meanwhile,
the Chinese presence is quite extraordinary, beginning from my fellow
travellers on the late-night Kenya Airways Boeing 777 bound for Nairobi
during my November trip there — many of whom were clearly from Guangzhou
where the plane had originated. I still remember drifting off to sleep
as announcements in Mandarin droned on in the background.
Upon
arriving in Nairobi, I noticed to my surprise that most of my fellow
Asian travellers had merely changed planes for other more exotic
destinations – Juba, Lilongwe, Maputo, Addis Ababa, Kinshasa and Douala.
Nairobi, while strange and alien enough for me, was already old-hat for my Chinese compatriots.
Driving
into town along the Mombasa Highway, I hit the morning rush-hour,
enduring what can only be described of as a truly Asian traffic jam,
replete with peddlers selling newspapers, magazines, household
implements and toys.
We crawled along for mile after mile,
negotiating the now inadequate roundabouts, overtaken in turn by the
many people walking along the side of the busy thoroughfare.
After
an hour or so, the city’s downtown with the distinctive
cylindrical-shaped Kenyatta International Convention Centre – an icon in
Nairobi where I was to stay – thankfully emerged into view.
Turning
off the highway towards my hotel, I noticed a new intersection, replete
with flyovers up ahead. Squinting, I could just about make out the
banners announcing its upcoming launch.
Having been struck by the
poor state of Nairobi’s infrastructure, I asked my driver about the new
development and was told: “The Chinese built it sir. It’s the new Thika
Expressway and the president will be opening it tomorrow.”
Chinese trade and investment in Africa has boomed. As Greg Levesque of the US-China Business Council wrote in the
Business Insider
on 27 June, the continent collectively is the third-largest recipient
of Chinese outward foreign direct investment (OFDI) of nearly US$90bil
(RM273bil).
Major destinations include South Africa, Angola, Nigeria and Algeria.
The
key sector is of course energy, with Chinese state-owned firms like the
China National Offshore Oil Company (CNOOC) hunting oil and gas blocks
to meet the Asian giant’s energy hunger.
However, China is also
moving into other sectors like infrastructure. The Thika Expressway for
instance created 3,500 jobs for local Kenyans.
Also, in July,
outgoing Chinese President Hu Jintao offered over US$20bil (RM60.8bil)
in loans to African countries over the next three years.
But
China’s push into Africa hasn’t come without criticism, and during the
Mo Ibrahim Foundation dialogue that I attended in Dakar later on, a
number of speakers touched on the imbalance in relations. Most felt
uneasy about the way Africa’s natural resources were being exported to
China, in return for which Africans were importing all manner of
consumer goods.
As one speaker said, “The Chinese need to set up
factories here in Africa to supply this market. In years to come, we
will have the largest pool of young workers”.
The pan-African
investment banker, Mamadou Toure felt that the continent is generally
receptive. However he stresses: “China’s investments in Africa currently
exceed the World Bank’s. We do need to diversify our partners.”
Indeed,
there’s concern that China’s influence could alter the very social
fabric of Africa. Afia Asantewaa Asare-Kyei, a Program Manager with
George Soros’ Open Society Foundation in Senegal and a Ghanaian recalls a
recent trip back home to her village in the Ashanti Region:
“I was surprised to see Chinese workers panning for gold alongside the locals.”
The
Chinese presence is multi-faceted and deep. Indeed even in Dakar, at
the newly built National Theatre (where the foundation’s dialogue took
place), constructed with Chinese funding (they picked up around US$28mil
(RM85mil) of the total US$32mil (RM97.3mil) cost) and know-how. Chinese
workers – pleased with what they’d achieved, were very much in
evidence.
The African decade is upon us. Are we in Malaysia ready to seize the opportunities that Dr Mahathir bequeathed us?
COMMENT
By KARIM RASLAN
