China’s Impact on the African Renaissance

322 Pages·2018·10.3 MB·English

by  Kobus Jonker

KOBUS
JONKER
and
BRYAN
ROBINSON
China’s
Impact
ON THE
African
Renaissance
The
Baobab
Grows
China’s Impact on the African Renaissance
Kobus Jonker • Bryan Robinson
China’s Impact on the
African Renaissance
The Baobab Grows
Kobus Jonker Bryan Robinson
Nelson Mandela University Nelson Mandela University
Port Elizabeth, Eastern Cape Port Elizabeth, Eastern Cape
South Africa South Africa
ISBN 978-981-13-0178-0 ISBN 978-981-13-0179-7 (eBook)
https://doi.org/10.1007/978-981-13-0179-7
Library of Congress Control Number: 2018942560
© The Editor(s) (if applicable) and The Author(s) 2018
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Cover design by Tom Howey
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Friends and Family
Ejtleen, Jacques and Nadia
Johan
A
cknowledgements
The successful publication of this book, China’s Impact on the African
Renaissance—The Baobab Grows, is thanks to an array of people and insti-
tutions that have facilitated making our aspiring desire of delivering a
thought-provoking and important contribution to the conversation on
Africa’s ascendency a reality.
The Nelson Mandela University Business School with a proud history
of developing responsible business leaders needed to tackle the develop-
ment priorities of Africa has provided support for this project from incep-
tion to completion and therefore deserves acknowledgement.
The paradigm proposed in the book of the African Tree of Organic
Growth is grounded upon theoretical constructs and models proposed by
visionary leaders and academic thought leaders. From the vision of former
South Africa President Nelson Mandela to former South African President
Thabo Mbeki’s conceptualisation and popularisation of the African
Renaissance, many have paved the path for this book. Dr Alexis
Habiyaremye, Senior Research Specialist in the Economic Performance
and Development Department of the Human Sciences Research Council
(HSRC); Elling Tjønneland, Political Scientist and Senior Researcher at
the Chr. Michelsen Institute (CMI) in Norway; and Professor Xiaoyang
Tang, Deputy Director, Carnegie-Tsinghua Center for Global Policy in
Beijing, have answered the critical questions we needed answering.
The Forum on China–Africa Cooperation, the World Bank, the Pew
Research Center, the United Nations, McKinsey & Company, Transparency
International, The World Wildlife Fund, and an array of researchers and
academic writers are credited for providing the facts and insights which we
vii
viii ACKNOWLEDGEMENTS
were fortunate enough to build upon as we developed this book. And
then there were many individuals who provided greater understanding on
the issues that were affecting Africans on a day-to-day basis: taxi drivers,
community members, entrepreneurs and business owners, people on the
street—those who contributed to the business and human elements of our
research in the countries we visited.
Palgrave, our publisher, with special mention of Jacob Dreyer the
Commissioning Editor for Politics and Economics in Shanghai, who was
immediately positive about our planned publication and who has guided
us through the intricacies of publishing.
c
ontents
1 China in Africa: New Colonists or Facilitators
of Development and Growth 1
1.1 Perceptions in the African Media 3
1.2 The ‘Complementary Development’ Approach of China
in Africa 5
1.2.1 A Historical Overview on Relations Between Africa
and China 6
1.2.2 The Facilitating Role of the FOCAC in China’s
Policy Towards Africa 7
1.3 Synergies Between Chinese Policy and the African Union
and United Nations Development Goals 10
1.4 Chinese Aid and Investment Approach 13
1.5 The Potential Outcomes of China’s Engagement in Africa 15
1.6 Conclusion: The African Agenda 15
References 18
2 Renewal of Africa: The African Tree of Organic Growth
Paradigm 19
2.1 The African Renaissance and Organic Growth 21
2.1.1 The African Tree of Organic Growth 22
2.2 The Core Resources, Assets and Structures Necessary
for Growth (Roots of the Tree) 22
2.2.1 Natural and People Resources 23
ix
x CONTENTS
2.2.2 Location, Geopolitical Importance and Critical
Assets 24
2.2.3 Political and Economic Structures 25
2.2.4 Cultural and Social Structure 27
2.3 The Creation of Growth Channels to Produce Wealth
(Trunk of the Tree) 29
2.4 Creating Prosperity and Wealth for African Nations
(Leaves and Fruit) 33
References 34
3 Economic Growth and Diversification Fuelling
Development in Africa 35
3.1 The Challenge and Potential of Economic Growth in Africa 36
3.1.1 Prominent Growth Sectors 36
3.1.2 Economic Transformation and Growth Drivers 41
3.2 Alternative Paths to Growth and Development in Africa 46
3.3 Organic Growth in Africa: Impact of China on Growth
and Diversification 48
3.4 The Case of Kenya 49
3.4.1 Economic Growth and Diversification 50
3.4.2 Impact of China on the Organic Growth of Kenya 53
3.5 The Case of Nigeria 60
3.5.1 Economic Growth and Diversification in Nigeria 62
3.5.2 Impact of China on the Organic Growth of Nigeria 65
3.6 Lessons Learned from the Kenyan and Nigerian Case
Studies 70
References 75
4 I nfrastructure: The Most Important Enabler of Organic
Growth in Africa 77
4.1 T he Impact of Infrastructural Utilities on Organic Growth 77
4.2 Infrastructure Shortcomings in Africa 79
4.2.1 Power 80
4.2.2 Water and Sanitation 81
4.2.3 Information and Communication Technology (ICT) 81
4.2.4 Transport Infrastructure 82
4.3 C hina: The World Leader in Infrastructure Investment 84
CONTENT S xi
4.4 China’s Impact on Infrastructure Development in Africa 86
4.5 Providing Africa with Integrated Transport Infrastructure 90
4.5.1 China’s First Major Investment in Africa’s
Infrastructure: The Case of the Tan–Zam Railway
Line 90
4.5.2 Integrated Transport Infrastructure Development
in Ethiopia 92
4.5.3 Can a Road Change the Lives of Poor Rural People
in Africa? The Case of Lesotho 97
4.6 The Contribution and Consequences of China’s
Infrastructural Investments 108
References 109
5 The Role of Effective Governments and Institutions 111
5.1 Democracy and Dictatorships 113
5.1.1 Losing Hope in Zimbabwe, Finding Hope
in The Gambia and Savouring the Success of Ghana 114
5.1.2 Chinese Peacekeeping Efforts in Africa 120
5.1.3 China’s Non-interference Policy 122
5.2 Core Institutions 123
5.3 Policies for Development 125
5.3.1 Poverty Alleviation 125
5.3.2 Adopting a Workfare Approach in Job Creation 125
5.3.3 Infrastructure 126
5.3.4 Agricultural Policies 126
5.3.5 Industrial Policies 127
5.3.6 Education 127
5.3.7 Health and Healthcare Finance 127
5.3.8 Fiscal and Monetary Policies 128
5.3.9 Allowing the Market to Function 129
5.4 Why Policies Fail: Poor Planning and Service Delivery
Inefficiencies in Public Administration 130
5.4.1 Why Government Policies Fail: Corruption 132
5.5 Concluding Remarks 134
5.6 China’s Impact 135
References 135