Sunday, February 13, 2011

China Invades Africa; 10X Investments in 10 Years, 0.8M Chinese Live in Africa

As we have stated here, the next major global growth will not be in the BRICs. The next giant economic growth will be in Africa. If you had any doubts, please read on.

Beijing has launched Nigeria's first satellite, built new buildings of public administration in Algeria, ended the road that Osama bin Laden began in Sudan before fleeing to Afghanistan, built over 100 schools throughout Africa and has even financed prisons whereAfrican dictators silence the opposition.

None of this happened by chance.
Ten years after establishing Africa as a priority, China trasformed the map of the continent, and is now its main economic partner and had surpassed for the first time the former colonial superpowers.

China is buying its future in Africa.

The continent is seen by the Chinese today just as the springboard to allow China access to natural resources, food and energy to maintain its growth pace in coming decades, and eventually surpass the U.S. economy .

Just as the far west promoted the economic and productive transformation of the United States and gave access to new sources of natural resources for over a century, Africa now plays that role for China, which it believes that in 20 years will supply 50 % of its energy.

To achieve this access, Beijing must deal with corrupt governments, dictators and failed states. The strategy is clear: do not ask questions about domestic issues or require, as the World Bank does, commitments to democracy or transparency in government accounts.

The tactic is beginning to achieve concrete results.  2010 ended with trade of $100 billion between the two new partners. The flow hass simply multiplied by ten in just ten years.

In an unprecedented "safari", China broke European monopolies in African countries, injecting new growth in the economies of the region and has opened a new "logic" in Africa, at the very time that the continent marks the 50th anniversary of decolonization.


With assets of U.S. $ 2.4 trillion from the state and with no shame in stating that it is a state project, the Chinese strategy in Africa is not merely one of establishing a "colony of exploitation." The finding of all is clear: China has arrived in Africa to stay.

There are already 800,000 Chinese living in the continent. Many are merchants and industrialists who want to enjoy Africa's already lower wages (lower than those of China). The goal is to have 50 Chinese industrial zones in Africa in ten years. Another fact is the invasion of Chinese products on supermarket shelves, providing a breakthrough in relations with the authorities and into the homes of millions of Africans.

Another reality that literally changes the landscape is the landing of Chinese construction companies, financed by the treasury from Beijing to simply win all the works in public bidding. Giant Brazilian companies, as Camargo Gutierrez, do not hide the difficulties in competing for contracts with the Chinese in Africa today.

With news from O Estado de Sao Paulo.

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