Is China TAKING Over AFRICA!? Here Is What They’re DOING!!

In the race for superpower dominance Resources and influence are the Currencies worth accumulating and this Is something that China has been doing For years in a continent many in the West seem to have forgotten about I am of course talking about Africa home To some of the largest deposits of Natural resources in the world a Continent that contains 65 percent of The world’s arable land a continent that By 2050 will have a quarter of the World’s population Today I’m going to tell you exactly what China has been up to in Africa and what It could mean for the balance of global Power Before we dive into China’s strategy in Africa it’s important to appreciate how Important the continent will be in the Next few decades as I mentioned it’s a Vast and largely untapped resource for All types of minerals and commodities Everything from copper to Cobalt Gold to Diamonds and aluminum to Titanium For example according to estimates from The United Nations Africa is home to 30 Percent of the world’s mineral reserves Forty percent of the gold 12 of its oil And 90 of its chromium and platinum This map over here is pretty handy and It shows exactly how resource-rich Africa is it’s color-coded by those Countries with the most abundant

Minerals All of these resources are important for Any country that is looking to continue Growing economically they’re even more Important at a time when older mines are Starting to become exhausted and older Wells are running empty What’s perhaps most surprising about This is the fact that Africa only Accounted for about 5.5 percent of the World’s total mined minerals in 2019. Those deposits are sitting there waiting To be extracted And it’s not only the mineral wealth That much of Africa is sitting on those Vast tracks of arable land mean that the Continent could become a breadbasket for The world This is particularly relevant now when You realize how dependent we’ve become On Farmland in regions such as Ukraine And Russia And finally we also have to consider Africans human capital potential the Continent has the fastest growing Population in the world sub-Saharan Africa’s population is expected to Double by 2050. this is important Because of the fact that population Decline is one of the biggest threats The world faces it’s something that Elon Musk is most concerned about and it’s The subject of a video I did recently That is in the description for you

The point is that countries cannot Continue to grow economically if they Have declining populations hence as Africa is going to have plenty of new Young people entering the workforce in The coming decades it can continue its Rapid economic growth By some estimates Africa is well on its Way to becoming a five trillion dollar Economy as household consumption is Expected to increase at a 3.8 percent Yearly clip this growing population also Presents economic advantages for key Trading partners all of these African Citizens will be important consumers of Products and services and hence will Offer strong export demand for countries That have Tapped Out Western markets not Only that but all these people could be Potential allies or adversaries based on How they view other countries in a game Of international influence the more People and countries that you have on Your side the more geopolitical clout You have so it’s quite clear that there Are a number of reasons why Africa is a Continent which cannot be ignored and China is now involved in a modern day Quote Scramble for Africa take a look at This chart over here this is the total Amount of FDI or foreign direct Investment that China has been sending To Africa over the past 17 years As you can see it has gone from a mere

74 million dollars in 2003 to over 45 Billion in 2018 although it shrunk Slightly during covert All of this makes China Africa’s fourth Largest investor and places it ahead of The United States in this regard not Only that but Chinese loans to African Countries have totaled 153 billion Dollars between 2000 and 2019. more About that in a bit the vast majority of This investment in and Loans to Africa Has gone into the development of Infrastructure this is all part of China’s so-called belt and Road Initiative or Bri for those unfamiliar This is a global infrastructure Initiative unveiled by the Chinese Government in 2013. It forms the centerpiece of XI jinping’s Foreign policy and calls for China to Play a greater role in world diplomacy Essentially it’s a strategy to win the Hearts and minds of foreign populations Of course this is all infrastructure That the Chinese could also eventually Use themselves Now as of August 2019 149 countries were listed as having Signed up to the Bri Chinese investments in infrastructure For African countries have been Particularly outsized however For example according to this report in 2018 China provided over 25 percent of

The overall funding contributed towards Infrastructure development projects in Africa and in this 2017 McKinsey report Chinese firms and construction companies Won almost half of all engineering and Procurement projects continent-wide However while China has been ramping up Its infrastructure development on the Continent under sea it’s not in fact a New phenomenon that’s because China First entered Africa back in the 1970s And one of its first projects was a Railway that connected ports in Tanzania To towns in Zambia This was done under the leadership of Chairman Mao and it was the most Expensive infrastructure project that China had ever attempted it was also a Godsend to Zambia which was effectively Cut off from seaport’s further south Thanks to the actions of the Zimbabwean Government with this new Railway Zambia Could export its copper to World Markets Including coincidentally enough a Fast-growing China I’ll leave a link to the story about the Tazara railroad in the description for You it is truly fascinating Now of course infrastructure Developments like this and many Subsequent ones mean that China has Strong ties with politicians and Business leaders in the African Countries it is being built in

This means that they can enter into Mutually beneficial trade agreements Which shake up the status quo according To data from China’s Customs agency Trade between China and Africa Rose to Its highest level last year it increased By 35 from 2020 to 254 billion dollars Last year you can see what that looks Like here not only that but China looks Set to overtake the EU as Africa’s Biggest trading partner by 2030. this Will be a symbolic moment given that Many European nations are viewed by many In Africa as the colonizers of Yesteryear now being overtaken by new Colonizers so to speak What do I mean by that well it all Really depends on the terms that China Has attached to much of its Infrastructure spending while FDI is Great loans for Bridges ain’t and Africa Has been racking up quite a number of Loans over the past few years if you Take a look at this infographic here you Can see those countries that are most in Debt to China African ones stick out Like a sore thumb Those countries with the highest debt Loads were Djibouti and Angola where the Aggregate Chinese debt exceeded 40 of Their gross national income in the case Of Djibouti China holds 70 of its total Debt according to the World Bank and the IMF these loans are structured more like

Commercial loans and they have shorter Repayment Windows their conditions are Also confidential and they’re usually Used for the purpose of building Infrastructure rather than broader Humanitarian goals now of course I would Argue that the IMF and World Bank don’t Exactly have much right to opine on the Matter but perhaps that’s just me either Way the point is that when someone owes You money you have a great deal of sway Over them that’s why people have accused China of engaging in what is termed Quote debt trap diplomacy essentially if You owe China money you’re more likely To dance to its tune not only when it Comes to concessions within your own Country but also on the international Stage For the clearest example of this you Only need to look at how countries in Africa tend to vote on un resolutions For example in 2020 50 countries issued A statement supporting China’s Crackdown In Hong Kong more than half were African Some African countries have also been Silent on China’s human rights record in Places like xinjiang the president of Burkina Faso has stated quote some Western forces hyping up the so-called Xinjiang related issues are actually Launching unprovoked attacks on China to Serve their own ulterior motives That same meeting was attended by the

Presidents of Sudan and the Republic of The Congo or if you want to take a look At a much more sensitive issue with China you can see how support for Taiwan Has almost completely evaporated across Africa this wasn’t always the case back In the 1960s Taiwan outpaced China in Its efforts to cement diplomatic ties With African nations however ever since A 1971 vote that denied Taiwan a seat at The UN table African countries have been Switching their allegiances in 2018 Burkina Faso officially cut ties with Taiwan and now there is only one African Country that retains ties with the Island That’s the kingdom of eswatini one which Has been underrepresented in Chinese Investments and wasn’t invited to Numerous Africa China Summits it does Make me wonder how long they can hold Out The point is that China knows that these Investments as well as debts give it a Great deal of clout with these countries But what happens if a country finds Itself in a position where it can no Longer service its debts well like any Hard-up individual debtor it could lose Some of its collateral up until a few Years ago the notion that a nation-state Would seize another country’s key Infrastructure over a bad debt was Laughable however this happened a few

Years ago when China took over the Hambantota port in Sri Lanka This was a port built by the Chinese With debt financed by Chinese Banks when Sri Lanka struggled to repay its debt it Was forced to hand over the port on a 99-year lease more about Sri Lanka’s Economic woes in the description so Given Sri Lanka’s experience with bad Chinese debt African countries are Naturally beginning to worry too You only need to take a look at the Number of chinese-built ports around the World and where they are concentrated The alarm over this was raised three Years ago in Kenya for example by the Country’s auditor general he said that Kenya could be made to surrender control Of its port in Mombasa if it defaulted On a 3.6 billion loan from China used to Build a railway it’s not just ports Either quite recently there were Concerns that China may attempt to grab Uganda’s sole International Airport this Was due to the fact that China had Extended a 200 million loan to expand The facilities there a parliamentary Probe in Uganda concluded that China had Imposed onerous conditions on the loan Including potential forfeiture of the Airport in case of default The Ugandan Finance Minister was hauled Before Parliament and grilled about the Loan he apologized profusely and said we

Shouldn’t have accepted some of the Clauses but they told us you either take It or leave it Whether that is indeed the case is hard To tell the Chinese for their part have Adamantly denied the claim that they Were attempting to seize the airport Moreover the concerns that were raised About the Mombasa Port appeared to be as A result of a misunderstanding over a Key clause in the contract and as of yet China still hasn’t seized any African Infrastructure however concerns do Remain now remember that chart I showed You about how indebted Djibouti was to China well it turns out that China has Been investing heavily in the country This has been happening ever since China’s people’s Liberation Army or pla Established its first and only overseas Military base China is said to have Spent 590 million dollars on both this Military facility and the duala Multi-purpose Port the deepest port in East Africa the port is also of great Strategic importance given its location It sits on the Horn of Africa and near Key shipping routes more recently a Chinese company agreed to finance Djibouti’s Port revamp in a 350 million Dollar investment deal the company Already owned 23 and a half percent of The port so this could be a further ploy

To embed its influence Given the parallels that this shares With the Sri Lankan Port prior to its Seizure you have to worry let’s also not Forget that military base near the port One that the Chinese seem dead set on Keeping in place either way the prospect Of infrastructure seizures or more Onerous concessions will always dog Those African countries that have taken On Chinese debt okay so that’s a concern That many have with Chinese engagement In Africa but what do Africans Themselves think of this and are these Characterizations by the Western media Fair Most Africans view China in a positive Light for example a survey last year of 34 African countries by afro-barometer a Research Group found that 63 of the Respondents thought China had a very or Somewhat positive influence the U.S Meanwhile only scored 60 percent Quite surprisingly the African Union has A lower rating than both countries The Economist magazine also conducted a Similar survey earlier this year where The majority of the respondents thought China had a good rather than a bad Influence and in another survey by the Ichikovitz Family Foundation the vast Majority of African youth see China as The most influential player on the Continent this survey targeted four and

A half thousand younger Africans between The ages of 18 and 24. it’s also Important to note that U.S influence in The minds of these citizens has also Dropped over the years China’s impact on The continent was also seen as more Positive than that of the US according To the survey’s authors quote young Africans are telling us that they are Seeing tangible visible and very Impactful signs of the role that China Has played in the development of Africa This is all quite telling it shows that Despite the concerns in the western Media about China’s intentions in Africa African people themselves still view China as a friend rather than a foe that Is interesting in itself but it also Shows that mistrust of the West runs Deep in Africa China is definitely not Making these Investments for charitable Purposes but as long as local citizens See some of the returns from said Investments it’s an improvement on the Status quo so what if China is funding The construction of an airport or a road It’s better surely than not having them At all Let’s also not forget that the IMF and World Bank have a really shoddy record When it comes to growth and development I talked about this in my video on the IMF which I’ll leave in the description For you

Moreover I happen to think that the Often patronizing way in which Western Governments media and other Organizations portray Africa could play A factor in these surveys Africa is Sometimes made out to be a somewhat Hapless place that’s unwittingly being Taken advantage of by ruthless foreign Governments an image that many Africans Doubtless take issue with African leaders also want to make it Clear to Western governments that they Have no option but to deal with China on Account of the lack of Engagement from The west and they have a point Despite this though it’s encouraging to See that many Africans do also have a Healthy dose of skepticism when it comes To China according to that Aforementioned afro-barometer survey the Majority of the respondents are Concerned about being heavily indebted To China and say that their governments Have borrowed too much money the Respondents also think that China’s Influence is on the decline the Proportion of Africans who said China’s Economic activities in their countries Have some or a lot of influence on their Economies has declined over the past Five years from 71 to 59 percent But if China continues to be viewed more Favorably by Africans than the west then It will be well positioned to take

Advantage of a continent that is poised To become a global Powerhouse in a few Decades time Okay time for a few of my thoughts on China’s Scramble for Africa it’s quite Clear that Africa is going to become one Of the most important if not the most Important continent in the not too Distant future therefore it makes Logical sense for China to be Positioning itself to make the most of The opportunities there China cannot continue to power its Economic engine unless it has the Resources to buy Goods as well as the Buyers to consume them It also needs to Curry favor with Countries around the world especially at A time when it’s vying for allies Against Taiwan And its initiatives on the continent Have had a great deal of success this is Reflected in the growth of Chinese trade And the favorable perceptions the Citizens of Africa have of China’s Influence However practices that threatened to Entrap countries into debts they cannot Pay back threatened to stain that Reputation this is something that China Seems to have appreciated more recently And it has in fact forgiven the debt of A number of African countries I also think that African countries have

A healthy skepticism about these loans And Chinese involvement more generally From the era of European colonialism to The IMF World Bank and USSR in the 1960s 70s and 80s they know that other Countries have long been eager to feed Their trough but if they’re able to Craft deals and agreements with the Chinese that give them infrastructure And trade that they wouldn’t have with The west then they are in a strong Position it doesn’t have to be a Zero-sum game and for the West’s part it Should also try and engage more with Africa but it shouldn’t be with the same Playbook that many Western countries Used in the past moreover viewing Africa As a victim of exploitation isn’t Flattering and trying to present Yourself as the White Knight who can Save it is insulting quite simply Global Superpowers should treat Africa as they Would like to be treated they should Show its leaders respect on the world Stage and Foster mutually beneficial Relationships that can take advantage of Its growth it could be an investment That pays off handsomely in 30 years Time And that’s it for my video today folks But what are your views what do you Think of Chinese involvement in Africa I Would love to know down below if you Don’t have a comment that’s cool but you

May be interested in my socials page However This is the page where I share exclusive Content that you are not getting here it Has links to my telegram Twitter Tick Tock and Instagram the whole shebang oh And don’t forget my Weekly Newsletter Because it’s here where I share my Crypto tips as well as a breakdown of my Personal portfolio it comes only once Weekly as well as with a Spam free Guarantee and if you want some epic Crypto merch then you have to check out My merch store hoodies beanies teas it’s The bee’s knees Finally if you found this video helpful Slap a like on it subscribe and ping That Bell as well to make sure you never Miss another one time’s up for this guy But I’ll be seeing you guys very soon Till then Qui Harry and take care of Yourselves [Music]

Coinbase
OUR TAKE

Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

Leave a Comment

    • bitcoinBitcoin (BTC) $ 17,717.00 4.15%
    • ethereumEthereum (ETH) $ 1,314.37 4.82%
    • tetherTether (USDT) $ 0.999735 0.18%
    • bnbBNB (BNB) $ 269.13 2.52%
    • usd-coinUSD Coin (USDC) $ 1.00 0.13%
    • binance-usdBinance USD (BUSD) $ 0.999801 0.04%
    • xrpXRP (XRP) $ 0.390864 3.67%
    • dogecoinDogecoin (DOGE) $ 0.089949 1.67%
    • cardanoCardano (ADA) $ 0.310380 1.78%
    • matic-networkPolygon (MATIC) $ 0.920368 3.78%