ABSTRACT
Many cities across Africa have emerged as vibrant hives of economic activity, becoming virtually unrecognisable from just a decade ago, in large part because of the reinvigorated partnership with China. Even in the aftermath of the global financial crisis, whilst African ties elsewhere buckled under the strain of the global recession, commercial ties between China and Africa were being reinforced. The confluence of this policy mosaic is that China has become Africa’s main trading partner, increasing its share of total African trade from under 10% in 2008 to 15% last year. Moreover, China established itself as an important source of capital – foreign direct investment (FDI), as well as concessional and non-concessional loans. Looking ahead, for any serious-minded, ambitious firm, of which China has many, Africa is a compelling proposition. In the next phase – which as this chapter explores has already started – many Chinese corporates, now including some of the largest companies in the world that have built up huge capacity and competitiveness in recent decades in their home market, will be looking to find opportunities abroad. However, for Africa to attract a larger share of Chinese capital and corporate externalisation, and benefit from this important partnership, work needs to be done to differentiate Africa from the emerging market herd.
