25 April 2011

China's Growing Investments in Africa

Trade between the two surpassed $120 billion in 2010, and in the past two years China has given more loans to poor, mainly African countries than the World Bank. The Heritage Foundation, an American think-tank, estimates that between 2005 and 2010 about 14% of China’s investment abroad found its way to sub-Saharan Africa. This has brought increased employment and prosperity to the region, but also allegations of damage to local businesses, corruption and the hoarding of natural resources.
Chart and quote come from The Economist. Take the Heritage Foundation as seriously as you want to, but they are the same organization who used fuzzy math to score the Ryan budget far too well. Either way, though nothing surprising, it is interesting to see the consistent growth of trade between China and Africa. I would like to see a chart which separates out low-income African nations.