China boosts African economies, offering a 'second opportunity'

Trade between China and Africa reached a record $55 billion last year, much of it coming from oil and metals.

from the June 25, 2007 edition

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Beyond oil, China is extracting copper from Zambia and cobalt (a key ingredient in making cellphones and laptop computers) from Congo, buying timber in such countries as Cameroon and Liberia, and getting manganese for manufacturing steel from Ghana. South Africa is one of China's biggest suppliers of iron ore.

With $55 billion in trade with Africa last year, China has quickly inched past France ($47 billion) to become the continent's second-largest bilateral trading partner, after the US ($91 billion), according to the International Monetary Fund. Martyn Davies, head of the Center for China Studies at South Africa's Stellenbosch University, estimates that within five years, China will be the continent's No. 1 trading partner.

Last November, when leaders from 48 African countries attended the Beijing summit of the Forum on China-African Cooperation, Beijing announced it would double both its investment and aid to the continent. Soon after, during his 12-day, eight-nation African tour in February (his third such visit in as many years) President Hu Jintao began making good on this promise – dispensing billions of dollars worth of debt relief and announcing discounted loans and new investments.

In Sudan alone Mr. Hu cheerily waved away $80 million dollars in debt. He made the announcement while visiting the controversial new hydroelectric plant in Meroe – financed by the Chinese to the cost of $1.8 billion.

Hundreds of Chinese companies – many state-owned – are marching in the footsteps of their leaders, snatching up incentives and operating in 49 African countries (of which 25 are totally exempt from export tariffs).

The Chinese public is not far behind, with 24 African countries are now approved by Beijing as destinations for Chinese holidaymakers.

And Africans know which way the wind is blowing: Universities from Namibia to Uganda are opening Chinese language departments. The continent's three Confucius Institutes – promoting Chinese language and culture – in South Africa, Kenya, and Rwanda are so popular that a dozen more are scheduled to be opened next year. Schoolchildren from Khartoum to Cape Town are learning to say ni hao (which means "hello" in Mandarin).

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