Wednesday, October 31, 2007

A new colonial era

There are now over 900 Chinese companies working in Africa. There has been a rush to buy into mines in order to secure an adequate supply of minerals for China's rapid economic growth. The Chinese Government has persuaded African countries to let them in by offering investment in roads and railways. The Chinese are now buying African banks as well. ICBC (Industrial & Commercial Bank of China) has paid $5.5bn for a stake in Standard Bank in South Africa and China Development Bank is entering a partnership with United Bank for Africa, one of the largest banks in Nigeria. Chinese staff will work at the bank's HQ in Lagos, spotting opportunities in Nigeria and other west African countries in a variety of sectors including telecoms, railways, energy and farming. CDB hopes to finance a power project to tackle Nigeria's chronic electricity shortages.

5 Comments:

Blogger Eurodog said...

It will all end in tears.

11:03 am  
Anonymous Anonymous said...

Yes, but as Barclays is propping up Zimbabwe, I suspect the Chinese feel we that us Brits are not really in a position to lecture them...

1:10 pm  
Anonymous Ellee said...

Do the Chinese care about CSR? Do they care about those who are starving and without water, or just profits?

6:43 pm  
Blogger Welshcakes Limoncello said...

Gosh, I knew nothing of this. I , too, fear it will not end well.

8:00 pm  
Blogger Winchester whisperer said...

Ellee - just the filthy lucre I fear

8:14 am  

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