Chinese government officials have been on an all-out public relations offensive across Africa lately to reassure increasingly nervous political and business leaders that even though China’s economy may be slowing it will not affect the P.R.C.’s investment plans in Africa.
Africans, for their part, have reason to be worried. Chinese trade with the continent has fallen sharply, 40 percent by some estimates, in 2015. Similarly, Chinese foreign direct investment in Africa plunged a staggering 84 percent last year. With commodity prices still at decade-lows and Chinese demand for Africa’s raw materials not picking up, the stakes for Africa’s export-dependent economies are extremely high.
Nicholas Norbrook, Managing Editor of The Africa Report magazine, examined how much of Africa’s current economic headwinds are due to China’s ongoing transition from a manufacturing to a service-led economy. Nick joins Eric and Cobus to discuss his article, “When China Sneezes, Does Africa Catch a Cold?” from the March edition of the magazine.
Recommendations
- “Chinese Investment in Africa Plunges 84%,” Adrienne Klasa, The Financial Times, October 21, 2015
- “When China Sneezes, Does Africa Catch a Cold?,” Nicholas Norbrook, The Africa Report, March 15, 2016
