China occupies a prominent role in the economy of most African countries. In less than two decades, China became one of the most important trading partners and largest financier of infrastructure projects in Africa. From its early diplomatic efforts during the Cold War to derail any influence Taiwan and the Soviet Union could have on the continent, China shifted gears at the beginning of this century to focus on trade and economic development. Today, China’s investments in Africa are spread through a range of sectors, taking on the most grandiose infrastructure projects that were put aside since Africa’s colonial times. For all this, China’s influence on the continent is unrivalled and only seems to grow.
Updated on 29th June 2018 Article published at the China-Lusophone Brief, on 21st March 2018 Article also published in How We Made it in Africa, on 24th May 2018 Also published at the NTU-SBF Centre for African Studies, on 25th May 2018 Mozambique, which gained independence from Portugal in 1975, is home to a culturally…
Following 2008, Africa embarked upon a borrowing spree fuelled by cheap and accessible foreign capital. Developed markets that were thought to be risk-free and attractive had the seal of safe investment shredded into pieces as a result of the financial crisis. Policy-makers sought to rectify the damage done to financial systems and economies by enacting a large set of financial reforms, both at the international and domestic level.
The restructuring of the developed economies involved, among other measures, lowering interest rates. This measure, together with an increasing awareness that investment diversification was necessary, made investors with an appetite for higher yields look elsewhere. Africa appeared to be the most promising place. With increasing infrastructure projects and large revenues from the commodities market, the continent enticed many investors looking for the next pot of gold.