It wasn’t that long ago that the thought of China spearheading a push to modernize and expand the economies of places such as Africa and Latin America would have been unthinkable. That’s no longer the case. Chinese investment in Sub-Saharan Africa has now reached more than $1 Trillion. They’re easily outpacing US and other foreign direct investment in Africa.
Chinese influence is everywhere on the African continent. This includes mining interests, as well as infrastructure projects. These are helping Africa to modernize.
It helps that China doesn’t have to worry about the baggage of a colonial past, but Western indifference has been the bigger culprit. There are many logistical problems when it comes to doing business in Africa and this has caused Western investors to look elsewhere.
Accessing Untapped Resources
African countries may offer logistical challenges to investors, but there’s a huge upside – these countries have a wealth of untapped resources. This includes both natural resources and consumer markets. These consumer markets are clearly maturing and expanding.
