China-Africa:The trade volume between the two partners is expected to reach R800 billion by 2010
Africa, China safe from global economic turmoil
John Bailey
The new chief executive for Standard Bank/ICBC Strategic Partnerships, Craig Bond says
Africa and China’s economies will not be adversely affected by the current turmoil in the world economies.
Speaking in Beijing Bond says the two economies will survive the instability because China has a huge burgeoning economy and many foreign reserves, while Africa’s economies are growing and has enormous resources.
Relations between Africa and China are at an all time high. The trade volume between the two partners is expected to reach R800 billion by 2010. To fast track Chinese investment activities in Africa, a dedicated Chinese language Pan-African investment magazine has now been launched. Investors say the Sino-Africa partnership will substantially strengthen and their economies will withstand the current global financial crisis.
Bond says: “Because of the way China operates and because the way that business is done here is far more conservative than most Western countries, that are being hurt at the moment…. I think Africa has been relatively isolated because we are an emerging market and because we are not involved in the kind of investment that has given rise to the sub-prime crisis.”
Biggest emerging continent
The new magazine is likely to give Chinese investors and government officials more reliable investment information on Africa. A member of China Africa Business Council, Li zhang says: “Africa is the biggest emerging continent, while China is the biggest emerging country. The co-operation between these two parties which has the biggest dynamism and potential, will surely contribute to the development and momentum of the relations between the two sides.”
There is growing Chinese foreign direct investments in Africa especially in the resources sectors such as mining, oil and gas, but there is also an interest in telecommunications and infrastructure. The Chinese see the success of Africa as being crucial in their recipe that they want Africa’s economies to grow, because not only will it build a strong alliance between the two partners, but it will also create a big market for the future. The more affluent the African economies become, the better it is for China.
(sabcnews)