What: CHINESE INVESTMENT TO AFRICA
Who: Dr.  Lawrence Beer
Hosts: ABLA & AFSA
Summary:

Dr. Beer summarized on Africa’s social, political background and economic potential in Africa. Not only does Europe realize this [whats the word], Eastern investors (Singapore, India, Korea, Japan, and especially Chinese) also turn their gaze south-ward.

Africa needs skilled managers. The young African generation, many are pursuing education in the U.S, is Africa’s future.

Brief review of African commercial history:

• Trading routes (iron and gold) established with China and India. However it was a one way trade, nothing ever floated back to the continent
• African unique crafting skills were limited to their own regions because of regulations established by their obus (tribal kings)

Stats:

• Asia is now African’s third largest trading partner
• Africa in the past 3 years trades with Asia has tripled

Majority of investment to Africa is under “green-field” investment (100% foreign ownership) rather than “brown field” investment (foreign company collaborate with an already-existed local company)

Most investments are in oil and mineral extract industries à energy resources

China is thirsty for energy resources à Africa is now supplying 1/3 of China’s crude oil supply

Africa is flooded with cheap Chinese products

• Cons: put African companies out of business
• Pros: for the first time, Africans can afford TV, refrigerator, etc

Discussion questions: Is Chinese investment in African bad or good?