Manufacturing capacity has declined in some parts of Africa as trade barriers dip and global competition rises, especially from China, reports the Washington Post. That’s left African business leaders turning more and more to extractive industries, while at the same time trying to profit from the sea of finished Chinese goods that is washing across the continent.
That kind of relationship may conjure up memories of colonialism, but Africans say the Chinese, who are investing in key infrastructure projects, treat them as equals. In fact, both sides are so eager to do business that recently representatives from 48 African countries met with Chinese officials at a trade summit in Beijing. The outcome? The Chinese promised to double Africa’s aid and offered $5 billion in new loans. One Chinese company will build an $8.3 billion railroad project in Nigeria, to be paid for with the country’s oil revenue.
China’s trade with Africa, which reached $40 billion in 2005, is expected to hit $100 billion by 2010.
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