Africa's China Problem

When the African Continental Free Trade Area (AfCFTA) was initially proposed at the African Union summit in 2012, it had two goals: First, build a pan-African free trade and cooperation. Second, lift 100 million people out of poverty by instituting structural economic changes and cooperative legislation. The trade bloc’s establishment signified a monumental paradigm shift in African trade and development. For years, African trade has been mostly limited to colonial trade routes with its former colonial masters, a practice that has resulted in the continent’s countries trading more internationally than among themselves. With the AfCFTA - a combined $3.4 trillion economic bloc that includes 1.3 billion people is expected to become the world’s largest free trade zone, only second to the World Trade Organization.

But now, as the trade bloc enters its first few years it is becoming apparent that African nations are not the ones who will be reaping the bloc’s greatest benefits - China is.

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[jahifaraji]

We in the disapora must invest in manufacturing in our motherland. From small to large companies are needed.. Let work together for a win-win for the collective.. One Africa 🙏🏿

[momo_san]

When foreign enterprises first entered Japan, it was the same thing. And then Japan grew. Same with Taiwan. And same with China in the last 4 decades. The growing part is hard, but in the long term, these countries that does the cheap manufacturing will learn the skills and then will start havingtheir own manufacturing facilities, and eventually have their own brands. Sony, Panasonic, BYD didn't turn into big brands over night. They were doing subcontracting work for western companies, and then they got really good, and then started doing their own brands.
China might seem like they are winning all of it now, but the fact is that African nations are improving, there will be African entrepreneurs popping up, and African nations will have their own champion brands.
Just 20-30 years ago, Africa was just a charity case to the world. Now they are able to trade their raw materials. Next step is local businesses will learn how to process these materials and move up the value chain. It was the same with Japan, Korea, Taiwan, and China. This will be the same for African nations as well.

[ThaBigB]

I really hope that the competition from the EU, US, India, Russia, Turkey and China balances things out and puts Africa in the best position.

You have amazing content and I'm grateful for every video. Almost to 100k subscribers, congratulations!

[ishimwenicolas]

I think Africa is still recovering from the effects of colonialism and they need as much help as they can get, although china has its own interests at heart its still 1000x better than the west as a trading partner for Africa, hopefully some day Africa will no longer need to rely on any other country and thrive on its own.

[doskovagossa]

Africans should do business among themselves. They have the solutions to their problems

[uchenna]

AFCFTA is about trade in general, not just industries. All African nations have produce, with AFCFTA, it now makes sense for them to sell to other African nations, as opposed to the West, for example. Ghana can sell it's cocoa to Angola, instead of battling out for worthwhile trade deals with Britain. Also, the EU is by far Africa's biggest trading partner, with far more influence on the African continent, I mean, you're speaking ENGLISH, talking about Chinese influence in Africa - you see the irony.

Moreover, China doesn't control the industrial capacity of Nigeria. Nigeria's industries are 90%+ indigenous, with several multinationals, most of which are WESTERN, not Chinese. Nigeria's foreign policy, makes it IMPOSSIBLE for China to get a foothold on its economy.

[ewardprince]

People in Europe and America will stop hating on China and learn from China .

[td]

London School of Economics found that the BRI is producing long term benefits in general. We need to note that China’s economic dominance is not responsible for slowing down African development because China perused its own independent economic strategy instead of relying on loans and help from former colonisers. Africa can only develop and reach its full potential after it abandons Western reliance but the last man who wanted that was killed.

[yushclayystaguan]

I think that Africa should just improve in negotiations overall. I also think that it's important to note that Western deals have strings attached because they are more upfront with what they want and need to ensure their people that their government has their interests in mind. With China, you need to do some homework even though deals can have "no strings attached". While the obvious string attached is that African countries don't diplomatically recognize Taiwan, the other less noticeable string attached is that Chinese labor is used rather than local Africans so that once infrastructure projects are built, Africans must rely on the Chinese to maintain their infrastructure so that China has permanent customers that rely on China to fix their infrastructure. It is similar to how Europeans built infrastructure in Africa, but did not have the expertise to maintain their infrastructure. African leaders need to negotiate with China, Europe, US, and any other country that wants to build infrastructure in Africa, to require the training and employment of local workers so that Africans can rebuild their nation without requiring the help of others.

As a Chinese-American myself, I am concerned about how China is perceived to be a better partner than the West because it used to be as poor as African countries. But while the West has been dominant the past couple of centuries, China was the dominant power in the world for the past thousand years of history before that and the West was considered to be undeveloped backwater countries. China is only trying taking back their place in history as a superpower when they didn't need to see other nations as equals. While China was definitely a victim of Western imperialism, it was never exactly a victim of Western colonialism so don't expect them to know what it's like being a colony.

If Africans want to find partners that really know their struggles and interests against their former European colonialists or future imperialists, they need to find solidarity and empowerment with the Caribbean, Southeast Asia, and the Pacific Island nations. Only through them African nations can truly find partners of equal standing. It's good that Africans can identify Western hypocrisy, but that doesn't mean Africans can let their guard down for China (just ask their neighbors that were previously controlled or invaded by China).

[akwu]

china and the eastern powers are basically saying, step aside west, its our turn to reap the benefits

[stephen]

Africa to export 300bn worth of goods to China, deal that China propose, and that is extremely generous, Africa can not meet that number... it's a win win for both sides.

[A.Mayflower]

Great video! I just noticed you hit 90K, congratulations, I can’t wait for you yo hit 100K :>

[MrSynfold]

A lot of people forget that China is also a victim of Western colonization and I would much rather build a strategic partnership with a nation that overcame Western colonialism than my oppressors. China cares about resources and we care about infrastructure and technology. That sounds like a win win

[BantuKing]

The current agreement is not the best for Afrika at this time but as we grow a learn the technologies in the various sectors, we can wean ourselves off from China and develop our own. Also, the industries that are local must be supported whole heartedly.
The Chinese did the same with the west by learning from them.
One Afrika, One Love!

[stevensmith]

What are the reasons why African businesses are uncompetitive in areas such as making cement? Understanding the reasons for that inability to compete and win will unlock the continent’s economic strength.

Thanks for another thoughtful video.

[junebrowse]

This is really troubling. Africa and it's people are loosing out.
What is the purpose of the AU.

[cc_fffknow]

I felt funny every time when I see that China's investment in Africa is colonization, in this case, Japan and the United States have colonized China for 30 years since 1990, but china learning from Japan and the United States, achieved industrialization and let all its citizens get rid off poverty. People should learn to be grateful, knowledge is priceless, and those who teach you knowledge and skills are angels sent from heaven

[jaybee]

That is why Nigeria doesn’t want to sign this deal because many foreign countries are interested in this deal.

[moderatemapper]

It's the fault of bad leaders leading Africa's biggest economies.. The amount of potential the big économies have and the opportunities to expand they have missed is incredible. The fact Nigeria is an oil rich country unable to invest in its own infrastructure is incredible and the fact south Africa is the most technologically and socially advanced country but cannot help others around it is also incredible.. North Africa has little interest in helping the rest of the continent. Other African economies with potential like Congo and Sudan are so weak it is just sad. A country Africa should be looking to for a good trade balance and good relations is India. India needs Africa's resources and if they grow together the kind of relationship we can have is good.. but no, they choose to become reliant on a neo colonial power

[hermajesty]

This is so aggravating, I can't even speak 😒..