By IANS,
Beijing: The rivalry between India and China will “help boost Africa’s success”, said an article in the state-run Chinese daily that asked whether the “traditional Indian grip” was likely to loosen as Chinese investors run across Africa for opportunities.
An article in the Global Times by Mark Kapchanga, a journalist based in Nairobi, noted a significant shift “as witnessed by the entry of Asian countries into what was once a cosy cocoon for the Western world”.
“This has seen the sale of African goods and services to Asian markets hit 30 percent, up from 14 percent a decade ago. This is almost the same level of trade as between Africa and its historical partners such as the EU and the US.
“The increased outflows show how the second scramble for Africa is taking shape by the day,” it said.
The article said that much of the focus now is on “two major Asian players, China and India, and the economic revolution they are injecting in Africa”.
“The battle pitting the world’s most populous nations is so deep that some regions in Africa have been named after them. The stable political landscape in South Africa has resulted to it being the nation with the highest Asian population in Africa with over 1.2 million `South Africa Indians’,” it said.
It said that in Uganda, their numbers are growing, despite the 1971 expulsion of more than 75,000 to Britain by then dictator Idi Amin.
“With the overthrow of Amin and the rule of Yoweri Museveni in January 1986, Uganda became more open to foreign investors. This ushered in two influential families, the Mehtas and Madhvanis, who currently operate multibillion-dollar shopping malls, media, huge hotels and factories in Uganda. Their operations are also dominant in Rwanda, Kenya, Zambia and Tanzania.”
The daily said that though “much attention has been paid to the Indian population, which makes up about 2.6 percent of the African total, there are also a growing number of Chinese in the continent”.
Today’s scale and pace of China’s trade and investment flows with Africa is unprecedented, it said.
“The emergence of South-South commerce is likely to intensify the scramble further as China seeks to dislodge India from its traditional ground.”
The article went on to say that the entry of the two nations to Africa has presented a significant opportunity for growth and integration of the sub-Saharan part of continent into the global economy.
“Due to the rapidly modernizing industries, booming middle class and burgeoning purchasing power, these two tigers’ battle for control of Africa will not end any time soon,” it noted.
The daily, however, asked: “Is the traditional Indian grip likely to loosen as Chinese investors run across Africa for opportunities?”
“India enjoys a long history of trade with Africa, and therefore has a strong base in the continent. Many of the accumulated investments of India in Africa are concentrated in manufacturing, retail, food processing and telecommunications. Destroying it, or even bringing it down a notch, will be a hard nut to crack,” it said.
“Even just take a quick glimpse at the manufacturing sector in Kenya, for instance. The sector is 90 percent operated by businessmen of Indian origin. Its cutting-edge performance has propelled Kenya’s economic figures to new heights.
“In Zimbabwe, Nigeria, Zambia and now South Sudan, the sector’s wheels are virtually moved by Indians,” it added.
The article wrapped up by saying that no country beats China in the extraction sector such as mining, building of power plants and road construction.
“This shows how asymmetrical the two countries’ commercial strategies are. And in the end, the rivalry between the two will help boost Africa’s success.”