The 3 Reasons Why Chinese Invest in Africa
China and Africa have been partnering on investments for approximately the last eleven years. In September 2018, delegates from both landmasses met at the seventh Forum on China-Africa Cooperation. The collaboration and cooperation makes Africa one of China’s greatest allies in the current global market environment. The level of China's investment in the continent of Africa has been increasing at a steady rate. At the 2018 China-Africa Cooperation Forum, China announced it would be providing $60 billion in financial support to Africa.
In this article, we'll review why China has prioritized and increased its investments in Africa. Some of the primary motivations that lie behind China's push toward increased investments in African nations include the desire to secure a solid base of raw materials to fuel China's own rapidly growing economy, the desire to increase China's global political influence, and the major growth opportunity presented by emerging market economies in Africa.
Political Motivations
The African continent is a logical place for China to look to extend its geopolitical influence. China is already the preeminent power in Asia. India, a historically traditional rival of China, is not a realistic choice for China to look for an increase in political influence, but the largely undeveloped countries of Africa represent a prime opportunity for China to significantly expand its global presence and influence in the world.
The nature of China's political motivations are partially revealed by its extensive investments in African infrastructure, as can be seen in the funding it's provided through the China-Africa Development Fund. If China can rise to a position where it exerts major control over essential economic elements such as the utilities sector and telecommunications in African countries, while also developing military influence, then it also holds considerable political alliance in those nations.
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