China's Investments in Africa 2019

China's Investments in Africa 2019

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  GROUP MEMBERS: BHAVISHYA,RIYA,TANUJA,ANIRBAN
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  CHINA GDP – 6.2% Population– 1.393 billion (2018) Growth – 10.8% Currency value – 7.09 Yuan/US$ Unemployment – 3.8% Inflation – 2.7% AFRICA GDP – 4.9% Population – 1.307 billion Growth – 3.7% in 2019 Currency value – 15.20 Rand/US$ Unemployment – 15% Inflation – 4.5%
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  1955 • The BandungConference, Beijing attempted to assert its leadership over the 3rd World and the nonaligned movement. 1956 • Egypt was the 1st African Country to establish diplomatic relations with China. 1970 • 44 out of 50 independent African countries had entered into Diplomatic relations with China and People’s Republic of China began to pursue market socialism. 1950-70 • China gave about $2.5 billion to 36 African countries and for building Tanzania- Zambia railway of 1860 kms. 1989 • The Tiananmen Square Protest ends up China’s honeymoon relationship with Western countries.
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  1990 • Founded agood opportunity for China to enhance and influence upon Africa. 1996 • “Five Points Proposal”, for development of a long-term relationship. 2000 • Leads to creation of the Forum for China-African Cooperation in Beijing and the FOCAC was established. 2002-2006 • 90 African parties sent their delegations to China. • Communist Party of China (CPC) sent 78 delegations to Africa. 2010 • China received about 13% of Africa’s global trade. NOW • China is Africa’s largest trading partner.
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  Solid base of rawmaterials. Growth opportunity By emerging market of Africa Increase China’s global political influence Strategic location to secure maritime roads Decline DD for Chinese goods from markets in Europe and the US. Increase in Consumerism China's primary goal with foreign investment is geopolitical, not economic. Least FDI Inflows
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  10,000 Chinese companies operating inAfrica, including 920 in Nigeria and 861 in Zambia. $500bn Value of African industrial output handled by Chinese businesses — about 12% of the total. 9% Manufacturing’s contribution to Nigerian gross domestic product in 2017 China’s total import and export volume with Africa was US$66.04 billion, up 3.3% year on year.
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  China will launchan Industrial promotion initiative. Infrastructure connectivity initiative. Trade facilitation initiative.Green development actions.Capacity building activities. Health care initiative. People-to-people exchange initiative. Peace and security initiative.
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  Chinese investments andcontracts in sub-Saharan Africa total $299 billion from 2005 to 2018 • China providing $60 Billion as a financial support. • $20 Billion in credit lines • $15 Billion in grants, interest-free loans & concessional loans • $10 Billion in investment financing • $5 Billion to buy imports from Africa. • China will also encourage Companies to invest at least $10 Billion over next 3 years.
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  35% of AfricanDebt is held by multilateral institutions such as World Bank with 32% owed to private lenders. High risk of debt distress Total amount of external debt is $417bn. 20% of African Govt.external debt is owed to China.
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  COUNTRY AMOUNT Angola $25bn Ethiopia$13.5bn Kenya $7.9bn The Republic of Congo $7.3bn North Sudan $6.4bn Zambia $6bn Cameroon $5.5bn Nigeria $4.8bn Ghana $3.5bn The Democratic Republic of Congo (DRC) $3.4bn
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  Malaysia recently cancelledChinese-financed projects more than $20 billion as it would create an unsustainable debt burden. Pakistan is reconsidering some projects in the multi-billion dollar China-Pakistan Economic Corridor. (Total : $6.6 Billion) Hambantota port, which was leased to China Merchant Port Holdings Limited (CM Port) for 99 years for $1.12 billion in 2017.
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  THANK YOU 谢谢 ASANTE