China in Africa; helping or hindering?

This year's Fairtrade Fortnight may be drawing to a close, but the noise it has generated in the UK alone will resonate for a long while.  Fairtrade Fortnight has highlighted how important trade is to Africa and if China's presence in Africa is anything to go by, the Chinese could help many African countries take advantage of this over the coming years.

Last November, China was looking to “bolster its African presence” by holding the fourth ministerial conference of the Forum on China-Africa Cooperation (FOCAC) at Sharm el-Sheikh.  In an interview with Chinese news agency Xinhua, Chinese Ambassador to Egypt Wu Chunhua said, “The conference will be held to comprehensively evaluate the achievements after the Beijing summit of the FOCAC in 2006 and draw up a plan on China-Africa cooperation for the next three years."  Wu believes that the conference will solidify any relations China has with Africa to “maintain and further bilateral ties”.  So what did they achieve? 

According to their website, FOCAC agreed that they would try to strengthen the "China-Africa strategic partnership through the announcement of eight new measures related to investment, aid, trade, cultural exchange, etc."  It is unclear, even on their website, exactly what these eight strategies are.  They have however, outlined areas they will be offering to support Africa in; by providing $10 billion in concessional loans, and pledging in "zero-tariff treatment on 95 percent of products from the least developed African coountries".  FOCAC also agree to "promote cooperation" in Africa through agriculture, infrastructure, ecological and environmental protection, and social welfare.

Many experts from the African countries involved with FOCAC agree that the relationship is wholly positive and that the suspicions arise from rival trading countries in the West.  Doctor Flora Musonda, Director of Trade for the East African Community, believes the relationship is nothing but beneficial to African markets.  “China’s prominence in Africa is a good thing as it diversifies the source of imports-exports markets and also foreign direct investment,” she argues.  “China is assisting many African countries in terms of infrastructure development such as roads, dams, buildings and trade.”

As Chinese-African business deals go from strength to strength, the unlikely alliance of China and Zimbabwe comes under closer scrutiny as China struggles to keep its promise of separating business and politics.  Late last year, Zimbabwe was granted a $950 million “credit line” from China to rebuild its economy.  Prime minister Morgan Tsvangirai, who shares power with president Robert Mugabe said that the money would go to rebuilding Zimbabwe’s infrastructure.  According to Tsvangirai, at least $10 billion is needed to rebuild Zimbabwe’s “dilapidated infrastructure and ease a 90 percent unemployment rate”.

The Chinese have stepped in to befriend a government which many Western powers are hesitant to be associated with, thanks to Mr Mugabe’s tyrannical reign.  Zimbabwe is a country struggling with huge amounts of debt and under-paid civil servants and teachers.  China is the only country who has offered the ailing country help because it claims not to interfere with the politics of Mugabe.

The truth about Chinese presence in Africa remains somewhat of an enigma to Western powers, with experts arguing over whether China is attempting to colonise Africa, or whether they are simply capitalising on the natural riches it has to offer.   Of all the African countries, China’s presence has left their heaviest footprints in Zimbabwe, which critics have berated at length.

The Chinese-African relationship already caused controversy last year during the Darfur conflict, as China supplied the Sudanese government with arms and ammunition.  China has a colourful history of selling arms to Zimbabwe and Sudan regardless of a United Nations embargo.  The Chinese president Hu Jiantao’s blossoming friendship with Robert Mugabe has become a highly contentious issue since an incident before the Beijing Olympics in 2008 when the Chinese vessel An  Yue Jiang bound for Zimbabwe was forced to return home loaded with ammunition, rockets and mortars in total weighing 77 tonnes.  Many believed that the ammunition was Mugabe’s response to his loss in the general elections after 28 years in power. 

Vessels such as An Yue Jiang are seen frequenting African ports because China has been known to provide Mugabe and his government in Zimbabwe with high-tech, Chinese-built gunships aircraft and warships.  Mugabe is thought to be allowing Chinese investors access to Zimbabwe’s minerals and raw materials in exchange for civilian and military aircraft.  Mugabe’s 25 bedroom mansion in Harare was also built by the Chinese with help from the Malaysian government and has been estimated to have cost around $10 million while many Zimbabweans still live in poverty.  Unapologetically, Mugabe told New Zimbabwe, "It is lavish because it is attractive.  Of course it is lavish, the Chinese are doing the roofing. They are our good friends you see."

China has large stakes in Zimbabwe’s platinum mines as well as stakes in Zambian copper mines, and Angolan oil reserves.  According to the Council on Foreign Relations Africa holds only nine percent of the world’s oil reserves in comparison to the Middle East’s 62 percent.  Currently China imports a third of its oil from countries such as Angola, Nigeria and Chad.  Africa’s oil reserves are exclusively accessed by China due to their numerous investments and experts at the CFR say there could still be untapped oil reserves still out there.   Angola only recently leapfrogged Nigeria to become Africa’s top oil supplier, making China Africa’s top crude oil stakeholder, overtaking Iran.

In an effort to become the world’s economic powerhouse it appears China will not be apprehended by any international pressure to curb its ambitions.  Business relations with Africa’s tyrant Mugabe may just be the beginning of a series of controversial economic partnerships.