CRE­AT­ING REAL VALUE

Finweek English Edition - - INSIGHT: INTERNATIONAL -

It is no se­cret that China has been hon­ing in on Africa for its abun­dant nat­u­ral re­sources and vast space. Kuban high­lights the fact that China’s trade with Africa bal­looned from $10bn in 2000 to an es­ti­mated $200bn in 2013 – four years af­ter it over­took the United States as the con­ti­nent’s largest part­ner. (As an aside, there are now es­ti­mated to be over 1m Chi­nese in Africa – up from just a few thou­sand a year ago.)

While Kuban ac­knowl­edges the myr­iad ben­e­fits of Chi­nese in­ter­est in A frica and the i nf low of pri­vate funds (such as much needed in­fra­struc­ture de­vel­op­ment), he cau­tions that lo­cal gov­ern­ments must strive for ‘ long-term ben­e­fits’ – such as cre­at­ing em­ploy­ment and the con­cen­tra­tion of added value, in­stead of merely gun­ning for the quick and easy gains.

“Africa man­u­fac­tur­ing has es­tab­lished mostly around the ex­trac­tion of min­eral re­sources in the past, and Chi­nese FDIs [for­eign di­rect in­vest­ment] con­trib­uted a lot

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