English.news.cn 2010-07-23

 

by Zhang Xiaojun and Liu Zan

BEIJING, July 23 (Xinhua) -- After almost a decade of growth, foreign direct investment (FDI) flows to Africa declined in 2009.

However, China's growing investment in the continent served as a buffer against the impact of the global crisis.

One of the driving forces behind it is successful Sino-African cooperation in which economic issues take center stage.

Giving aid to Africa seems always to be one of the grandest ideas of our times. But aid to Africa "has made the poor poorer and the growth slower," argues the Wall Street Journal.

Market forces, in the long run, will help restructure the African economy in a more effective way. That might have provided some inspiration for Rwandan President Paul Kagame who put forward a slogan: "Trade, not aid."

The slogan may shed some light on China-Africa cooperation which has placed greater emphasis on the long-term interests of both sides.

FDI flows to Africa declined from a peak of 72 billion U.S. dollars in 2008 to 59 billion dollars in 2009, due to the contraction of global demand and the fall in commodity prices, according to the U.N. Conference on Trade and Development.

But Chinese FDI to Africa kept growing, reaching 7.8 billion dollars at the end of 2008.

Ethiopian Prime Minister Meles Zenawi said: "China's investment in Africa is based on the strategic understanding of the interests of both China and Africa...It is not a surprise that China's investment in Africa continued throughout the crisis."

Meanwhile, the investment from China often carries benefits for Africa's infrastructure.

Andrew Burns, a senior official of the World Bank, said: "China has been playing an increasingly important role in financing infrastructure projects (of Africa) that are creating the production potential. That will help ensure Africa grows rapidly in the next decade."

The win-win cooperation between China and Africa has helped transform the idea of Africa from a destination of charity to a place for business.

After years of efforts, many African countries have made solid progress in investment regulations, especially in policy transparency. Rapid growth in the number of African middle-income consumers also attracts investors.

Along with China, India, Malaysia, Brazil and some other emerging economies have also become new sources of investment in Africa, showing confidence in the continent's future.

China-Africa cooperation is also credited with Africa's newfound self-confidence in alleviating poverty in the continent.

China, which itself is facing the daunting task of poverty alleviation, has achieved great successes in lifting millions of people out of poverty by adopting policies suited to its national conditions.

Irina Bokova, director general of the United Nations Educational, Scientific and Cultural Organization (UNESCO), said:" China has proven that there is no problem that can not be overcome. China has set an example for Africa by proving that a country can achieve much in poverty reduction."

In addition, China-Africa cooperation poses no threat whatsoever to international efforts to help Africa, but sets a new model for cooperation.

Louis Michel, co-president of the African, Caribbean and Pacific States (ACP)-EU Joint Parliamentary Assembly, said: "On cooperation with African countries, Europe should not feel upset about Sino-African cooperation.China could bring lots of things to Africa and so does the EU. We should consider the triad as a win-win-win relation, which means each side could benefit from it."

As a matter of fact, the model of China-Africa cooperation is very popular with the general public in the continent.

A survey by the U.S. Pew Research Center found that a large majority of African people view China as a partner.

The U.S. Time magazine quoted Mwinbe Stanslas, a Zambian mineworker, as saying: "I've worked for the British, the Americans, a Jew and the Swiss. They all closed. The way the Chinese are investing, (is that) they' re not leaving. My boy will get a job in this mine, and his boy after him...it's a blessing."