With this investment, China will secure a solid base of raw materials which will fuel Chana’s economy and that of African nations.
Mining and oil remain a primary focus of China’s investment. The country’s attention is however not on oil and mining alone but also in infrastructure, food processing, utilities, telecommunication, port construction, and transport and logistics.
Africa is said to contain 90% of the world platinum and cobalt supply, 50% of the world gold supply, 35% of the world uranium supply and over 70% of the world’s manganese supply. These supplies make Africa the most abundant raw material holder in the world. No wonder China is interested. Here are the three main reasons why China is investing in Africa.
- Fuel to grow their economy
With the continent rich in raw material, and China’s growing economy, it is only natural that the Chinese would be interested. The country has an increased need for natural raw materials, food, and a market for their product which are vital to growing their economy.
By securing a solid base for the available and underdeveloped raw materials, China secures a critical raw material for its economy.
- Political Advancement
Africa is a logical place for China to look for political advancement. The country is already a preeminent power in Asia which means India, a historical rival, is not an option where political influence is a concern. Africa, on the other hand, represents an underdeveloped political influence which China can use to expand its influence in the world significantly.
China is also making a considerable military investment in African nations for this reason. This gives China a significant political alliance in these nations by the investment it has created.
- Good Business
With an extensive manufacturing sector, China sees the market potential for goods in Africa. With the growing economies presented by African countries, it makes economic and business sense for China to invest in Africa. China has already invested in Latin and Asian markets as well as South America. The next viable primary emerging market is Africa.