China Pledges $10 billion in Cheap Loans to African Countries

November 8, 2009 at 12:18 pm · Filed under Africa, China, Defeating Poverty, Economics, New Trends, Our World, Politics and tagged: Africa, China, Global Trade, Sino-African

via Al Jazeera

China is steadily and rapidly becoming a key player in the Global marketplace, especially in Africa.

Key Facts:

• Africa’s combined GDP is worth approximately $1.2trn, equal to about one quarter of China’s $4.4trn economy.
• Trade between China and Africa has risen by more than 33 per cent annually this decade.
• Volume of two-way trade almost hit $107bn in 2008.
• Africa has a market potential of 800 million people.
• In the first nine months of 2009, Beijing invested more than $7.8bn in Africa.
• China’s imports from Africa are dominated by oil and minerals to fuel its booming economy. Most come from Angola, Sudan, Nigeria, Zambia, the DR Congo and the Republic of the Congo.

Many western companies and organizations have been criticizing the Chinese for doing business with some African countries but as one Chinese representative put it, “Just because [US and European] companies are doing business here, does that mean they are supporting the military government?…So why, when Chinese companies do business here, is China accused of supporting the government?”. Some see the criticism as fear that the West’s strong role in Africa is steadily diminishing.

The West has had a monopoly on the buying of African resources for the past 20 years and the next decade should be interesting in how the relationships and economic strength of all three regions change with this new trade relationship. I doubt it will be bad for the Chinese or Africans.

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