In 2009 the Chinese government granted "a
special loan for small and medium-sized African businesses” that included $1,200
million to support the growth of “agriculture, forestry, animal husbandry,
fishing, processing and manufacturing, trade and logistics, and other
industries closely associated with people's livelihoods in Africa,” according to
the China government’s publication.
JX Paulin : Africa has development potential and investment appeal
In 2012 Beijing hosted the 5th Forum of the
Sino-African Cooperation (FSCA). Through this event, China unveiled the
creation of a “special plan for business with Africa.” One of the most
significant commitments was an investment in sixty-one projects throughout
Africa involving up to $2,500 million US.
As of today, China has already signed over thirty
agreements with various African countries to open the door for mutual
investment. More than 2,200 Chinese companies have initiated activity
throughout the continent, whether in the sectors of agriculture, manufacturing,
or extraction of natural resources. Some service firms have also opened
branches in finance, real estate, and commercial banking. Chinese money has
been flowing into Africa for the past few years. In 2009, China’s direct
investment in Africa was reportedly $1.44 billion US; this amount underwent a steady
growth of 20.5 percent per year until 2012 when it reached $2.52 billion US
(according to Beijing’s whitepaper). “The rapid growth of China's direct
investment in Africa is indicative of Africa's development potential and
investment appeal, and it also points to the mutually beneficial nature of
China-Africa cooperation.”
Suspicion toward Chinese investment in
Africa is common in Western countries. They often assume that companies from
the Middle Kingdom are only after natural resources and bring little growth and
few technologies. However, Beijing emphasizes the positive impact of Chinese
money in Africa to help develop local economies, promote political stability
and, most importantly, create a significant rise in the standard of living.
Both points are understandable; however, my goal in this article is not to
judge who is right and who is wrong, but rather to discuss how profitable these
new investments are for Africans. Most importantly, I want to discuss Africa’s
ability to benefit from these investments and exploit them to generate lasting
growth.
Beijing puts it this way: “While seeking to advance its own development, China
tries to offer what assistance it can to Africa without setting any political
conditions and to benefit African people through developmental advances.” I
believe the whole thing about politics is subject to doubt; nevertheless, it
should be widely accepted that African growth has much to gain from Chinese
investment. This is mainly true because the richer Africa gets, the bigger the market
becomes to which China can export. I think this is why we see so many companies
operating in different fields and not only in the exploitation of natural
resources and manufacturing. Yet a big question remains unanswered: Can Africa
turn those investments to its benefit? This is a crucial matter because it
relates to an even more important question: Is Africa going to emerge? Or is it
going to remain crippled by wars, stricken by poverty, and diminished by
diseases?
JX Paulin : Why I have created MYSIMAX ?
My experience as an entrepreneur leads me
to believe that Africa has the ability to rise thanks to these new investments.
I am aware that many years of unreliability, poverty, and slow development may
induce a justified questioning of Africa’s capability to fully seize this
opportunity. However, who would have bet a dime on China thirty years ago? As a
Franco-Togolese, I am adamant about doing my bit in the development of Africa
whether in the medical field, educational field, public administration, or
maybe in all of them by providing great technologies. This is actually why I
founded MYSIMAX , a start-up that designs touch-screen devices developed for the
African market.
Beyond this I have always seen Chinese
investments in Africa as symbolic. China was not much more developed than
Africa thirty years ago. And now the emerged country is helping the emerging
ones. Where are the Western countries?
I moved to Shanghai in 1994; initially my
intention was to travel and study Chinese medicine. This did not last long. I
discovered such an unlimited potential in this country and such an
entrepreneurial spirit that I soon figured that my call was to start a company
here in Shanghai. As I told my relatives about my decision to stay in China
permanently, many doubted my choice. “What are you doing in this poor country?!
There is no demand in China and you have plenty of it here! You are a fool!” Twenty
years later, I think I made the right decision. I have my own thriving company,
I am launching a new one, and my experience of Chinese markets is a great asset.
The point is today, in Africa, I can feel
the same dynamism and the same desire to be the next big thing that I
encountered in 1990s China. I went to the New York Forum Africa in Gabon last
year, and I was truly convinced by Africa’s ambition and passion about its
future. What I saw in Africa was a real entrepreneurial mindset, a true
dynamism. The potential for start-up creation in Africa is huge.
China has a part to play in it. In Kenya,
for instance, Chinese investments were crucial to the development of the area’s
digital economy. As of today, Kenya is at the forefront of mobile technologies
in Africa, along with Nigeria and South Africa.
I personally believe that this kind of
investment in Africa––as the Chinese do––is the key to leading the continent to
fast growth of the sort seen in China twenty years ago, even if some people
think Africa cannot do it. I met this kind of person when I moved to China,
telling me I was crazy. Finally, I can assume I was not.
JX
Paulin
