Opinion | After state loans, China wants private investment to play a greater role in Africa’s next stage of growth
- Beijing is looking to Africa to realise its vast potential by moving away from state loans and embracing economic reforms and entrepreneurship — like China did 40 years ago
The past decade has seen the world’s leading economies race to increase their ties with Africa, a continent brimming with potential. And none more so than China. Its sustained courtship of the continent has seen their bilateral trade and investment reach astronomical levels. According to official Chinese figures, trade with Africa grew to just over US$204 billion in 2018. And a recent tweak to their approach promises to enshrine Africa as the continent of opportunity for Chinese companies.
And they should need no convincing. Africa is becoming a hugely powerful market for goods and services. With 1.2 billion people, 60 per cent of whom are under 30, Africa’s population is expected to exceed China’s by 2025. Meanwhile, at least 44 countries have signed up to the African Continental Free Trade Area, and six of the world’s 10 fastest-growing economies are African, according to the International Monetary Fund.
