Chinese Investments and poverty Reduction in Africa
From North to South and from East to West, the story of Africa is always attributed to poverty, a sad reality that put the continent in a bad shape. Long have this problem lingered. Yet her leaders are finding it more of a rocket science to tide.
With an ever increasing population close to a Billion persons, Africa is on a cross road to self-made poverty. A Poverty widely attributed to failure in governance, societal structure and low self-esteem.
Poverty! A leading cause of death in Africa, according to research in the University of Nairobi, Kenya. About 50% of the population is living below One dollar per day. A trend never seen in recorded history.
Lack of basic infrastructure, poor health facilities in rural areas, low literacy rate, corruption, increased terror related and gender violence, to mention only but few are evils commonly seen in most facet of the continent.
In Democratic Republic of Congo (DRC), the situation is even worst, close to 40of the population is poverty stricken. In Somalia, a nation hit by terror, less than 10% of the country can access good health, clean water, electricity, security and education.
The situation is not different from Mali, Sudan, South Sudan, Libya, Gabon, Niger, Chad, North Eastern and Western Nigeria.
Selected Countries in Africa Where Poverty is Strategically Wiped Out Via Chinese Investment
East Africa- Kenya (the pride of the Africa), as at 2019 statistics, Kenya had successively lifted more than 5million persons out of poverty, the country had been attracting Foreign Direct Investment in different facets of her economy.
Mr Uhuru Kenyatta specifically lured the economy of Kenya using China’s model. The nation has built one of the standard gauge rail ever seen in the continent of Africa. This has ease transport problem by more than 30%.
The model is mainly,
- Attracting FDI,
- Providing Loans to Small and Medium Businesses,
- Building world class infrastructure in rural areas,
- Stable Power Supply and
- Accelerated growth- Developing the rural areas more
Kenya is one of the success stories in Africa, despite the threats posed by Terrorism with the nearby Somalia; she defied all odds and become the economic power house in the East of the continent.
Southern Africa- South Africa
A one-time Africa’s largest economy by GDP. With a Stable and well-structured economy acquired from the West (British), the country has maintained growth rate over the year.
Chinese investment has doubled the western investments in the last 10 years. South-Africa is now economically tied to china and the rate poverty has declined though she is still battling with corruption
In recent times, the nation focused more on lifting the poor via:
- Massive Investment in Education
- Massive Social Investment
- Improved Health Facilities in Rural Areas
- Massive Housing Projects
- Ease of doing business among locals and
- Increased internet Awareness Among the ordinary populace
South Africa’s story could be best described as the western already made economy, handed over by western powers. Yet a handful of problems devils the country, from corruption to youth restiveness, a lot still need to be done.
North Africa- Egypt
The economy power house in the Arab world, and one of the few advance nations in the continent. The Egyptian government of Abdul Fattah Alsisi has, on an average relieved the country from the list of poor nations.
The last uprising brought unprecedented changes on her economy; Egypt has more of Chinese growth model and Investments. The country has succeeded in decimating poverty via:
- Massive industrialization- so many got employed within a short time
- Increased power Generation and distribution in poor settlements
- Massive Housing- Construction of new cities ongoing
- Attracting massive FDI from China and the West
- Massive destruction of Terror related activities-giving rise to peace and security
- Massive investment in ICT
- Agricultural revolution
- Massive Rural Health Infrastructure
- Making the country safe and ease for poor to do business etc
The most populous black nation on earth, has in the last four years lifted millions out of strict poverty. With a population close to 200 million, the nation has seen difficult times and challenges. Reports from World Bank, IMF, Bloomberg, Fitch rating, show that, Nigeria still is still the poverty capital of the world.
The Buhari led government has not tapped fully in to the Chinese economic miracle, though, there exit plethora of FDI in regard to Chinese investment in the country, yet poverty increase on a daily basis.
Nigeria is the largest economy in the continent, its over dependent on oil revenues to stimulate growths is a setback. But the current administration has done a lot in reducing poverty.
While these strategies may not last long, expert suggest, the economy is rejuvenating; the government has:
- Attracting Substantial FDI in the country
- Massive National Social Investment-The largest in Africa
- Improved and increased power but not enough for economic restoration
- Massive Ease of doing Business among locals
- Improved Agro-allied industry and agricultural activities
- Massive investment in ICT
Africa is still on a cross road, she needs more technological and innovative ideas to drive growths.
Is Chines Investment Profitable to Africa and what Type of FDI in Needed?
The answer to that question is YES! China has proven to be a real friend to the continent, with no-political interest, she has rapidly developed many infrastructure including Roads, Railways, Airport, Seaport, Hospitals, Massive Housing projects, Schools, to mention but a few. These investments are low cost and are tied on a long term.
China is not just a reliable partner but a life support to Africa. Africa leaders as a matter of fact should bring more of Chinese Foreign Direct Investments in areas like:
- Technological Invention, Innovation and Research (TIIR)
- Industrialization and Market
- Modern Agricultural Techniques
- Advance Medical Facilities and Personnel
- Balance of Trade
- Massive Housing Project Development
- Artificial Intelligence
- Massive Transport Investment and corporation
- Military Technology and Research