China Has Come To Stay In Africa – University Don

Professor Kenneth Kalu of the Ted Rogers School of Management, Ryerson University Canada has said the relationship between Africa and China has become very strong over the years, stressing that the Asian grant that has come to stay in the continent.

In a chat with Steve Paikin on TVO’s documentary series themed “China: Here and Now” Kalu, the author of the groundbreaking book” Foreign Aid and the Future of Africa” noted that “it looks like China has come to stay because their patient money can clearly be differentiated from hot money”

Expatiating further the Don said “with hot money, they bring money from New York sometimes London, put in Africa’s stock market and when there are little crises they redraw the money.

“But China is investing in the long term (patient money), by building industries and other infrastructure.”

According to Kalu, China has made Africa one of the top priorities of its foreign policy.

“China has invested across several sectors. If you look at Africa’s economy the biggest constraints to its economic progress has been infrastructure, lack of roads, railways and poor electricity supply.

“But recently in Africa of today china’s presence can be felt across these sectors. China is also developing special economic zones which are geographical areas set aside for infrastructure to support companies which are willing to invest in African countries”

On why economic zones are special, he said:” they have duty waivers and they have already developed structures, so they don’t get bugged by the poor public utility.”

Despite the contributions of China to economic developments in the continent, some countries are still suspicious of China and view its growing interest in the continent as negative.