MAGAZINE
FALL 2021
The diversity among the countries is not limited to economics ; it ’ s prevalent in the social sphere as well . There are an estimated 2,000 spoken languages4 , seven religions practiced by more than 1.2 billion people ( 15 percent of World ’ s population ), and 3,000 tribes5 . Despite it all being geopolitically referred to as Africa , each country has its own economic , political and cultural dynamic that needs individual attention .
There has always been strong international attention for the continent , mainly by the Western countries for energy , minerals and precious stones . The continent has roughly 10 percent of the oil and gas reserves in the world , which makes it highly dependent on global oil market . 6 Libya , Nigeria , Algeria , Mozambique , Egypt and Angola have the largest reserves , while Angola also is China ’ s fourth largest oil supplier ( Figure 2 ).
amounts of loans , and obtaining concessional rights are signaling a change in China ’ s foreign policy approach . China in the recent years has become the largest customer , supplier , investor , builder , donor and troop contributor ( under the UN ) for Africa . Chinese exports to African countries , for instance , has increased dramatically since early 2000s , particularly when compared to the other main players ( Figure 3 ).
On the other hand , despite the increased level of activity , African markets still make up a relatively small part of China ’ s global economic activity and the continent has low priority in China ’ s strategic planning . Chinese exports and investment in Africa each account for only 5 percent of their global figures ( Figure 4 and 5 ).
Figure 4 African Exports in Major Players ' Portfolio / Source : OEC Figure 5 Chinese investments in Africa China is active in all spheres , including diplomatic , information , economic and military . Since 2013 , these efforts have been framed within China ’ s Belt and Road Initiative ( BRI ) that focuses on developing African infrastructure and enhancing trade ( 46 out of 54 countries in Africa had joined BRI by 2020 ). Chinese investments cover a wide array of economics including communication , transportation and telecommunications , but are argued to have limited impact on African development .
Figure 2 Hydrocarbon Reserves in Africa / Source : PriceWaterhouseCoopers
In parallel to its longstanding adherence to non-interference policy and domestic growth challenges , China had not pursued a far-reaching foreign policy in Africa7 . However , particularly in the last decade , China ’ s opening of a military base , contributing troops to the UN , engaging in military and security deals , procuring a large share of its oil demand , disbursing large
Belt and Road Initiative ( BRI ): Adopted in 2013 , this is a transcontinental long-term Chinese policy and investment program , which aims at infrastructure development and acceleration of the economic integration of countries along the route of the historic Silk Road . As of December 2020 , 49 countries in Africa had already signed MOUs with Chinese government .
FINANCIAL LOANS
Chinese presence in Africa is observed most intense in countries ’ external debts ; though new loans since 2016 reportedly are in decline , given the global economic slowdown and increase indebtedness of African countries . Having the largest share of the continent ’ s external debt , China is argued to be pursuing a “ debt trap diplomacy ” to actually draw African countries towards its own sphere of influence and eventually seize critical African assets . However , there are no clear indications on such
Figure 3 Major Importers in Africa / Source : the World Bank Figure 6 Chinese Loans in Africa / Source : CARI
6 . https :// www . afdb . org / en / documents / african-economic-outlook-2021 7 . https :// www . orfonline . org / expert-speak / will-china-create-another-african-debt-crisis /
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