“China has turned into Africa’s most vital monetary accomplice”
In two decades, China has turned into Africa’s most vital monetary accomplice. Crosswise over exchange, speculation, framework financing, and help, no other nation has such profundity and expansiveness of engagement in Africa.
Chinese “mythical serpents”— firms of all sizes and divisions—are bringing capital venture, administration know-how, and entrepreneurial vitality to each side of the mainland.
China has slung from being a generally little speculator in the landmass to turning into Africa’s biggest financial accomplice. Chinese firms in Africa are behind these full scale numbers are a great many already – uncounted Chinese firms working crosswise over Africa.
However to date it has been trying to comprehend the genuine degree of the Africa– China financial relationship because of a scarcity of information. Chinese firms work crosswise over numerous parts of the African economy.
China is additionally an extensive and quickly developing wellspring of help and the biggest wellspring of development financing; these commitments have upheld huge numbers of Africa’s most aspiring framework advancements as of late.
Scaled up over every one of the 10,000 Chinese firms in Africa, this proposes Chinese-claimed business utilise a few million Africans.
With continued and likely growing Chinese investment, it will become ever more urgent to address the gaps in the Africa–China partnership, including by strengthening the role of African managers and partners in the growth of Chinese-owned businesses.
Moreover, both Chinese and African actors will need to address three major pain points: corruption in some countries, concerns about personal safety, and language and cultural barriers.
In five of the eight countries in which we conducted fieldwork, 60 to 87 percent of Chinese firms said they paid a “tip” or bribe to obtain a license.
After corruption, the second-largest concern among Chinese firms is personal safety. Language and cultural barriers also lead to misunderstanding and ignorance of local regulations.
If these problems are left unaddressed, the misunderstandings and potentially serious long-term social issues could weaken the overall sustainability of the Africa–China relationship.
Download Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve? ,the full report on which this article is based—available in both English (PDF–3MB) and Chinese (PDF–5MB).
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source: http://www.mckinsey.com/south-africa/our-insights/the-closest-look-yet-at-chinese-economic-engagement-in-africa by Kartik Jayaram accessed 23/08/17 Picture taken from: https://anzetsewere.wordpress.com/2013/02/27/china-and-africa-whats-the-deal-part-2-the-pros-and-cons/