China and Africa: Partnership or Platform?

Monday, January 29, 2007 10:56
Posted in category Going to Market, The Big Picture
Comments Off on China and Africa: Partnership or Platform?

No doubt, Africa and China are growing closer to one another. There has been a lot of press lately on deals between the countries (Here, Here, and Here), reciprocal visits between leaders (Here & Here), Beijing recently hosted a summit of 48 African leaders, and from March 14-17 the African Development Bank will hold its meetings in Shanghai (as if we needed more traffic james).

Rich in resources, China sees Africa as a their Wal-Mart where oil, minerals, cotton, and other commodities can be purchased to keep the wheels of progress moving.

On the other, china brings Africa much needed hard currency, medical teams/ training, infrastructural improvements, and aid in other areas that African feels Western countries have neglected in the past (This map (PDF)on Momentum’s website provides an excellent overview of what China is bringing to Africa).

In addition to the above, Africa is also going to become on of China’s most important market for Chinese goods. not the Chinese goods that are made in China and sold under an American brand, but Chinese goods that are made by and branded under Chinese names.

With these market being traditionally held either by local manufacturers or by Western manufacturers selling their lower quality items, these markets are now seeing a lot of penetration by Chinese goods. And with the strategic partnership between African nations and china growing stronger, one can only anticipate the penetration of these goods will only increase.

Over the next few weeks, we will continue to provide analysis on this topic as its consequences are far reaching for companies from the West, the East, the North, and the South.

Both comments and pings are currently closed.