Politics

China and India Battle for Influence in Africa: Part 2

Written by Gaurav Bhola, MSM, Managing Editor & Community Manager on July 30, 2007 10:16 am EST

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To fuel China’s amazing economic growth, China has invested billions of dollars in various projects throughout Africa. As of 2006, bilateral trade had touched $55 billion. At an annual growth rate of between 30 and 40 percent in the past few years, Africa-China trade may top $100 billion by 2010. Asia (27%) aims to displace the European Union (32%) and the United States (29%) from third to first position as Africa’ premier trade partner.

China is keen to build upon its current position as key trade and military partner to the continent. China has secured drilling rights in Sudan, Angola, and Nigeria, and similar oil and gas exploration investments with Equatorial Guinea, Mauritania, Ethiopia, Chad, Republic of the Congo, Gabon, and Kenya.

According to the Chinese, in 2005, their companies invested $175 million in Africa for mainly oil exploration projects and infrastructure. CNOOC Ltd., the third-largest national oil company in the People’s Republic of China after CNPC and Sinopec has bought a 45 percent stake in an offshore oil field in Nigeria for $2.27 billion and imports 64 percent of Sudan’s oil.

Already China is in control of most of Sudan’s natural resources. It is investing heavily in infrastructure such as railways, roads, harbors that are needed for support of oil, gas, and mining projects in Africa. China has pledged to give about $20 billion in trade and infrastructure backing to Africa over the next three years and double development aid by 2009. China has already forgiven approximately $1.5 billion in debt to Africa and has promised to do the same in the future.

Africa currently accounts for some 25% of China’s oil imports. In order to ensure continuous impetus in securing these imports, China continues to concentrate on resource-based investment; while, India’s stratagem in Africa is quite different.

Part 3: China and India Battle for Influence in Africa: Part 3

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