THE GROWING INFLUENCE OF CHINA IN AFRICA: ECONOMIC CHALLENGES AND OPPORTUNITIES

Abstract

This paper examines the growing influence of China in Africa and the economic opportunities it offers as well as the challenges it poses to African states. Specifically it evaluates if the Sino-African relationships have actually been beneficial to Africa. To achieve this purpose data were generated from secondary sources. An eclectic theoretical framework which include; realism, liberalism and dependence theories guided the analysis and discussion. The study found out that most of the benefits of the relationship are tilted in favour of the Chinese. China’s searches for natural resources to satisfy her industrialization quest and population needs are the major reasons for her presence in Africa. Sino-African trade relations have increased tremendously within the last one decade. Demand from China has contributed to an upward swing in prices, particularly for oil and metals from Africa, and has given a boost to real GDP in Africa and increased employment opportunities. Chinese aid and investment in infrastructure are bringing desperately needed capital to the continent. On the contrary, the increase in access to Africa countries by the Chinese companies has negatively affected African owned companies and economies. One result of the take-over of the manufacturing sector is massive unemployment, which begets the arrays of security challenges facing Africa. As a result, the discourse recommended amongst others that; Africa’s locally produced goods which meets international standards should have unrestrained access to China’s market and that African countries must diversify their economies from supplying unprocessed natural resources to China if they must benefit from the China-Africa trade relationship.