Africa in the World Economy: The Case of Forum on China-Africa Cooperation (FOCAC)

This is a transcript of comments made by OjoOluwa Ibiloye to a gathering of Young Professional African Leaders during a discussion on Africa-China Relations, 7th Sept, 2017 (unedited).

Introduction

Before early 1960s when most African Nations gained independence, Africa had witnessed political colonialism. After colonialism, Africa entered into another epoch in search of self-development and attainment.

This development effort by newly independent African leaders made them be in constant contact with their former masters. Hence, due to large deposit of raw materials in Africa, economic colonialism sets in. Imperialism is a form of economic domination of a powerful economy over another.

For the sake of globalization, physical boundaries of nations were collapsed and the world became a global village. This was also enhanced by the development of ICT. Recent study reveals that by 2050, Luciferianism will take over the world. This makes economic activities borderless. As a result of globalization, trade liberalization sets in. The global economy became so large, regional cooperation also came to limelight. Capitalism became Africa’s economic system. Paving way for foreign investment and aids to flow into Africa without any barrier.

China and Africa’s Economic Relations: Pain or Gain?

China-Africa relations has manifested through cultural exchange, technology and economic ties. China has emerged as the most favorite of Africa in term of trade. No doubt China has invested heavily in Africa.

One is tend to ask, what does China have to gain from their benevolence to Africa? Are they just on spending spree? No! China is the most intelligent and dangerous imperialist. The activities of China in Africa is basically direct imperialism.

It is better to be colonized by America than to be colonized by China. If you come in contact with China through bi-lateral relations, you’ll be smiling yet you’re suffering. China provides loans and other economic assistance to Africa. China have succeeded in making African countries to enter agreement that will make them be in charge of the execution of any project which the financial aid is meant for. In order words, Chinese MNCs takes over the project, therefore leading to repatriation and capital flight. This also affects local constructing industries, as there will be no jobs for them. The financial aid provided doesn’t reside in African economy. The money won’t get to African contractors who could hire other Africans to execute the project. China brings in their prisoners to provide labour for the project. What this means is that, the Chinese government is paying less or not paying for the labour to carry out the project. That’s a massive gain to China and huge loss to Africa.

Through Chinese aid, Africa has become indebted to China and a great debt crisis is looming. He who plays the guitar dictates the tone. For the fact that most African Nations are indebted to China, it makes it easy for China to manipulate our domestic policies in such that will suit their interests. They even place their nationals in strategic government positions in Africa. They help you take a loan you can never pay back, therefore they will give new conditions for debt servicing. Such as structural adjustment, removal of subsidy and privatization. They can even take over some sections of African economy. This relationship gives China control over the affairs of Africa.

Conclusion

China is in Africa to get all the gains. China is here with economic imperialism, cultural domination and market domination (especially substandard technology). There’s urgent need for Africa to delink from this overdependence on China. If not, in the next 20years, China will have Africa at its palms and every commodity will come from China — including paper, toothpick and even matchsticks. African leaders should form a strong synergy through AU and other regional organizations such as ECOWAS to realize the Africanization of African economy. The responsibility of Africa’s development lies with Africans, not with the Chinese or any other country. The time for Africa is now!

OjoOluwa Ibiloye Ohjay

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Writer, Researcher and Youth Development Advocate||@OjooluwaIbiloye