Are chinese investments in agricultural development in africa successful

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Despite international and local concerns, China’s investment in Africa in infrastructure and agricultural technology and training could facilitate agricultural growth in Africa. China itself has demonstrated sustainable growth in agriculture, improvement in the livelihood of small-scale farmers, and success in reducing rural poverty.

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Answer

Which Chinese companies are investing in Africa’s agriculture?

Big private-sector Chinese players in African agriculture that have wrapped technical assistance around their investments include Tian Ze, a subsidiary of China Tobacco Co.

What is driving the flow of Chinese money into Africa’s agriculture?

As China’s government pledges to help funnel more aid, development finance and private-sector capital into African agriculture, what’s motivating the flow and is it having a positive impact? The flow of Chinese money into Africa is growing fast, with agriculture attracting a sizeable chunk.

What is the Agriculture Development Bank of China’s role in lending?

For example, when the Agriculture Development Bank of China and the country’s Ministry of Agriculture agreed in 2016 to provide €390 billion in agricultural lending, supporting Chinese agricultural companies’ overseas investments was cited as one of 10 targets for the money. Commercial motives

Does China import rice from Africa?

And, while much of its technical assistance and aid focuses on rice, China does not import rice or any other grains from Africa. Indeed, FOCAC stressed in its action plan the importance of helping Africa to achieve food security by 2030.

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Is increasing Chinese investment good for African development?

Since the 2000s, China’s trade with Africa has multiplied by 20 (breaking $200 billion in 2019) and its FDI into Africa has multiplied by 100 (reached $49.1 billion in 2019). China’s FDI stock in Africa totalled $110 billion in 2019, contributing to over 20% of Africa’s economic growth.


Is China’s investment in Africa a good thing?

Chinese loans to Africa have helped finance large-scale investments with potentially significant positive effects for growth. At the same time, large lending flows have resulted in the build-up of debt-service burdens. In all, Chinese lending to Africa has covered over 1,000 projects.


What is the impact of China’s investments on Africa’s development?

China’s impact on Africa has been mixed. Its investments have created jobs, developed critically needed infrastructure, and contributed to economic growth, particularly in sectors or geographic areas in which international financial institutions and Western governments and companies have been unwilling to engage.


What can Africa learn from China’s experience in agricultural development?

China’s agriculture-led growth and poverty reduction and small holder based agricultural development policy can provide a useful model for African countries to develop their own agricultural development strategies to reduce poverty.


Which African country owes China the most money?

AngolaIn 2020, the African countries with the largest Chinese debt were Angola ($25 billion), Ethiopia ($13.5 billion), Zambia ($7.4 billion), the Republic of the Congo ($7.3 billion), and Sudan ($6.4 billion). China loaned a total of $143 billion to African governments and state-owned enterprises between 2000 and 2017.


Which country is the biggest investor in Africa?

ChinaChina has maintained its position as the largest investor in Africa over the last 10 years by the number of new jobs created (18’562 on average), with a gradual substantial increase of newly created jobs on a yearly basis, according to a new report.


Which African country has China invested the most in?

South AfricaThe top 10 recipients of FDI – such as the Democratic Republic of Congo (DRC) and South Africa – accounted for 63 percent of total Chinese FDI stock in Africa.


Which country has China invested most in?

The United States is the top destination in the world for Chinese FDI, drawing in $183.2 billion, or 15 percent of China’s total outflows, between 2005 and 2019.


What is China investing heavily in?

In particular, China is investing heavily in the African services sector. Investment in subsectors such as scientific research and technology services, transport, warehousing, and postal services more than doubled in 2020, the report says.


How many Chinese agricultural technology development centres are there in Africa?

The Chinese Agricultural Technology Development Centres are flagship investments. There are now 23 across Africa, funded in their first phase by the Chinese Ministry of Commerce under their aid program. They are run mostly by companies, and are linked to a commercial model for training and technology demonstration and sale.


What is the most far-reaching but least understood dimension of Chinese involvement in African agriculture?

Perhaps the most far-reaching but least understood dimension of Chinese involvement in African agriculture is the growing number of informal migrants getting involved in the agri-food sector, from farming to processing to retail to restaurants.


How many hectares of rice did Wanbao farm?

For example, as Jing Gu and colleagues explain, in Xai Xai in Mozambique, the Wanbao agricultural development company from Hubei province took over 20,000 hectares on a state farm to farm rice, and develop a contract farming arrangement with surrounding farms.


Why did we choose cases across the four countries to investigate in more detail?

The studies aimed to explore the detail of investments, technology projects, training and development encounters more generally.


Where did Seth Cook investigate Chinese food?

Seth Cook and colleagues investigated this in Ethiopia and Ghana. They discovered a range of activities: relatively few farmers, but growing investment in supplying specialist Chinese foods to burgeoning expatriate Chinese populations.


When did Xi Jinping visit South Africa?

In December 2015, Chinese President Xi Jinping flew into South Africa for the Forum on China-Africa Co-operation with great fanfare. There were lots of announcements about prospective investments across Africa. Agriculture featured prominently. But what is the real story of China in Africa on the ground, beyond the hype?


Is China changing?

In the longer term, activities may accelerate as more opportunities open up. But China is also changing. As its economy restructures to a “new normal”, there are different demands. Food will certainly remain one, but this is not likely to come from Africa.

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Background


China and Infrastructure


China and African Agriculture


Focus on Cameroon


Focus on The Democratic Republic of The Congo


Conclusions

  • Relations between Africa and China, particularly those related to agriculture, are complex and constantly evolving. And due to the relatively opaque nature of Chinese investments in particular, it is impossible to make any sort of judgment call as to whether such investments are a “good” or a “bad.” The complexity and opacity of Sino-African relati…

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