China in Africa (Issue Paper)

China in Africa.
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Introduction.
Africa has emerged as a lucrative investment zone for already developed states. Being a developing continent, Africa provides numerous investment chances for international investors in its quest to catch up with the global standards. Infrastructure and technology are the key areas which have real opportunities of investments, development and survival. Technological improvements across the globe have compressed the world into a village hence increasing the rate of exchange and interaction across the globe (Drew, 2005). Africa is a wealthy continent in minerals, oil and natures beauty. Prudent entrepreneurs identify the best opportunity where they can develop a symbiotic relationship with the native society in such areas and possibly gain from the relationship as well as develop the native society.
Since many African nations lack the resources, machinery and skilled manpower to exploit her treasure, developed nations have rose to the occasion and seek to invest and develop Africa as well as acquire the energy and finance needed to run their motherlands. Technological advancement and infrastructural development are major areas which must be improved in Africa hence the existence of the foreign developed states (Robert, 2009). This paper therefore discusses china’s increasing interest in Africa especially in Tanzania, South Africa and Democratic Republic of Congo.
Literature Review.
As a result of the global financial predicament, new states have emerged to compete with the so called world leaders in investments. Traditionally, the western states were the prominent investors in the planet. Africa on the other hand has been considered as a third-word continent hence lacking a proactive and modern authority model (Firoze, 2007). This presumption greatly undermined the overall development of Africa as a continent since the western developed nations only exploited the African potentials. After all they were lone rangers in Africa since other rising global power houses especially from the east such as china were hardly accepted by the African society. However, the African society kept on understanding the hypocrisy employed by the western investors. Over the past decade emerging economic power houses have played a key role in revealing the real value of the African continent to the rest of the world and most importantly to the African society (Christopher, 2007). Africa has long been dominated by the western economic and political culture which gave the westerners a save and cheap opportunity to exploit the treasure of a naïve African society.
However, modernization has greatly revolutionized the nature of relations and ways of conducting business in Africa. Emergence of young economic power houses has diversified the global market hence initiating favorable multinational and bilateral economic agreements. Since they have the capacity to produce quality and in quantity, these emerging economic power houses have to find ready market for their products (Jerker, 2009). Africa is the only ready market for their products. However, there is competition from the westerners who have been in Africa for several centuries. Therefore, as prudent investors the only way to lure the African society to embrace and accept their products is to enlighten the African society on the real cost of African resources.
China is actually among the strongest upcoming economic power house which has targeted the African market as a reliable market for her products as well as an opportunity to develop the African continent to a productive and self-reliant continent. China is a perfect example of a nation than rose from captivation by the do called developed nations. As all other emerging power houses, china aims to stage a strong completion to the already developed nations by improving her trade and industry prowess, diplomatic intelligence and military empowerment. Therefore, allies and symbiotic relationships are of ultimate importance to china. China has Africa has an immediate ally especially after being under bondage of the developed states just like Africa. Therefore, china has strategically divided Africa and established Tanzania in the eastern part of Africa, South Africa from the southern region and the Democratic Republic of Congo in the central region. Technically china has captures the African market.
China in Tanzania.
Tanzania like other east African nations is an agricultural nation. Apparently, the nation is unable to fully mechanize agriculture to maximize the revenue accrual from agriculture. China as a prudent investor has already established Tanzania’s incapability to fully utilize the fertile soil and maximize her income (jerker, 2009). Through Tanzania Investment Centre (TIC) Tanzania’s body entrusted with foreign investments, china has successfully engaged Tanzanian authorities. China being interested in aiding an ally to improve the economic muscles and ability as well as her indigenous minerals and agriculture products signed a memorandum of understanding with Tanzania. According to China Council for the Promotion of International Trade (CCPIT) and Tanzania Investment Centre (TIC), this a positive step towards the redemption of Tanzania from economic dependence to economic independence (Deodatus, 2013). This deal provides room for future developments and relations between these nations.
China’s population is among the densely populated nation in the globe. To sustain this population, china needs indigenous agricultural nation and Tanzania is a perfect option. China has a rich resource in skilled and unskilled manpower as a result of her population (Christopher, 2007). Tanzania on the other hand requires both economical and infrastructural development. Tanzania’s economy will greatly be boosted by her foreign trade with china as well as development of the infrastructure. China on the other hand gains a reliable investments destination and a ready market for her ready made products. President Jakaya Kikwete and his colleague president Xi Jinping of china have recently singed sixteen agreements worth $800 million which seeks to improve Tanzanian infrastructure (Deodatus, 2013). These agreements give Chinese investors ultimate chance to boost the country’s economic ability. The Bagamoyo port project is a perfect example of the numerous opportunities which china has won over their competitors from the west. Indeed china will not only increase her economic muscles but also get a chance to overcome the unfair competition plotted by the already developed nation. Most importantly, china is a strong position to win the investments opportunities from other east African nations and Tanzanian neighbors such as Kenya and Uganda hence increasing her economic authority.
China in South Africa.
China’s representation in the southern region of Africa emanates from the southern hub South Africa. South Africa has the strongest economy in Africa therefore; as prudent investor china has to win the trust of the South African society if at all Africa will be a lucrative investment opportunity for china. China’s greatest interest in South Africa is the rich mining industry of Africa’s largest economy (Jamie, 2009). South Africa is home of the most valuable minerals such as diamond, gold, manganese as well as platinum group metals (PGMs). As a matter of fact, South Africa is the world’s richest nation in minerals. China is undoubtedly interested in relating with the world’s richest mineral nation. Because of her rich mineral and metal deposits, South Africa has attracted many nations especially the emerging powers. China and south Africa have signed several agreements with Chinese offering quality finished products, skilled labor as well as infrastructural developments in exchange of minerals, oil and natural resources such as tourists attracti...