Earlier in September, Chinese leader Xi Jinping pledges $60 billion in aid and loans to Africa, with no ‘political conditions attached’, ostensibly to expand its trade and economic influence in the region. Other economic superpowers such as Russia and Britain are scrambling to gain a foothold on the continent because of the availability of low-cost natural resources and still extremely cheap labor. The United States has always been a lead investor in regions that offer economic arbitrage opportunities; however, in recent years China has consolidated its economic hegemony on the African continent.
Part of the Chinese funding will be transferred over the next three years. In addition, China can allocate funds to the continent for the development of agriculture and send its specialists to Africa to aid in development of these industries and implementation of China’s industrial know-how.
The fight for Africa is just beginning. The United States and other countries are beginning to return to Africa because it is there that cheap labor and inexpensive natural resources have remained. Accordingly, China is trying to seize the initiative, working directly with African organizations. To further understand the Chinese “economic threat” in Africa, I invited an expert in the field of strategic international investments to opine on the U.S. economic policies in Africa and the risks of Chinese economic dominance on that continent. Mr. Yuri Vanetik, an international private equity investor and American Political Strategist, has fresh and incisive views on China’s growing dominance in Africa.
How you see this situation and how different are investments of America and China in African countries? As far as we know, America has always aimed to be the first in international economic relations.
Yes, you are right, America has always been a leader in relations with other countries, and African states are no exception. For example, in 2007, the volume of direct U.S. investments in Africa amounted to $ 32.61 billion, of which majority accounted for Nigeria, South Africa, Mauritius, Equatorial Guinea, Angola, Liberia and Gabon. At the same time, the assets of American companies or companies with American participation in Africa in 2006 amounted to $ 116.1 billion. But in 2014 the volume of direct U.S. investment in Africa doubled up to $70 Billions. America provided loans and fueled the economic growth on the continent. As the world’s largest consumer market is getting more interested in African resources, the United States increasingly focuses on political and military leverage.
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