The Chinese interest in Africa has started a pace of development in the continent not seen for decades. Its support has seen Africa wade through the recession as well, and it has been extremely considerate towards all African countries where debt repayment is concerned. But now Africa has bigger dreams than mere sustenance. It wants to move to higher level in the value chain so that its own work force gets an opportunity to earn higher salaries, thereby increasing aggregate incomes.
Chinese investment thus far has been in the services industry and more in connection with mining and tapping the rich natural resources of Africa. Africa would now like to see a manufacturing base come up within its own geographical boundaries. This would curtail the flow of wealth abroad. The manufacturing sector can also only be set up with inflow of funds from China.
The request for Chinese investment in the manufacturing sector came from the Secretary general of COMESA (Common Market for Eastern and Southern Africa), Sindiso Ngwenya on the eve of the 13th COMESA Summit meeting in Victoria Falls, a resort city in Zimbabwe. He feels that the benefit would be shared by china as well. Ever since the onset of the global recession, many Chinese plants had been forced to shut down. If these could be set up in Africa, the African channels to European destinations could be tapped.
The potential for manufacturing needs no highlighting since Africa offers a ready market with 400 million people. China has already been selling its manufactured goods in these markets. However, if these were to be produced in Africa, it would add value for the locals and subsequently the government as well. The Secretary-General was extremely grateful for all the aid and investment that has already flown into Africa from China in infrastructure, education, and raw mineral tapping.
The COMESA has launched the Customs Union in order to ease the process of increasing volumes of trade and investment. The plan is to synchronise activities of various African nations so that the steps ahead are cohesive and coordinated. While regionalism is coming up everywhere, regional integration makes a lot of sense for Africa since that is the only way to forge ahead.
Source : Suppliers Africa
