China 'buying out' Africa: Top 5 destinations of Chinese

money
On a quest to secure raw materials and energy resources to
support the exponential growth of its economy, China has
become the fastestgrowing in!estor in Africa" As of #uly
$%&%, China o!ertoo' the (nited )tates as the world*s
largest energy user, according to the +nternational ,nergy
Agency -+,A., and much of that energy comes from African
countries such as )udan and Angola" Critics argue that China
undermines democracy, human rights, and transparency by
signing business deals with authoritarian leaders" They also
point to the /0&% billion imbalance in China*s fa!or in $%&%1
as a type of African recoloni2ation"
3ut many African leaders welcome the unconditional Chinese
largesse" /There are people who still consider Africans li'e
children who can be easily manipulated,4 5aida 6itifu,
Congo's ambassador to 7ashington told 8euters" 4The good
thing about this partnership is that it's gi!e and ta'e"
9ere are the top :!e destinations of Chinese capital, in order
of estimated Chinese in!estment"
&" Angola
Angola is endowed with resources such as oil, diamonds,
gold, and copper, but it has only begun to rebuild after
decades of crushing ci!il war" Oil and diamonds constituted
;% percent of the economic output in $%%< and Angola is
expected to surpass =igeria as the biggest oil producer in
sub)aharan Africa, The ,conomist reports"
Angola is China's top African supplier of crude, and China
buys >?"< percent of Angola*s total oil exports" The bilateral
trade between the two countries exceeded 0&$% billion in
$%&%, according to China 3rie:ng, a business maga2ine and
news agency" The ma@ority of the oil deals 4are characteri2ed
by loans and credit lines in connection with infrastructure
pro@ects,4 China 3rie:ng says, including three ma@or deals
:nanced by China*s ,xport+mport 3an', totaling more than
0A billion since $%%>"
+n addition to oilrelated pro@ects, China is hea!ily in!ol!ed in
Angola*s reconstruction eBort, after a de!astating $Ayear
ci!il war that ruined much of its infrastructure" One of the
main in!estments is the rebuilding of the 3enguela 8ailway,
a <>%mile transcontinental railway that lin's the Atlantic
port of Cobito in Angola with rail networ's in the Democratic
8epublic of Congo and Eambia" The pro@ect is expected to
cost 0?%% million, the #apanese +nstitute of De!eloping
,conomies reports, but it will pro!ide a muchneeded cheap
outlet for Congolese and Eambia copper, tin, and coltan"
AngolanChinese bilateral trade was roughly 0$5 billion in
$%&%, Asia Times reports"
$" =igeria
)ino=igerian relations are traditionally friendly and go bac'
to the &FA%s when the 7est African country was an
international pariah due to its successi!e military
go!ernments" 3ut as China's economy and energy needs
grow, so do Chinese in!estments in =igeria"
=igeria holds the second largest oil reser!es in Africa,
accounting for o!er F% percent of its exports" ,!en though
China's imports from =igeria are relati!ely small, compared
with the (), in $%%; China and =igeria signed a 0> billion
agreement in oil and infrastructure pro@ects, an agreement
that includes four drilling licenses for China" )eparately, the
China =ational OBshore Oil Corporation -C=OOC. purchased
>5 percent of an oil exploration bloc' oB the coast of =igeria
for 0$"? billion in $%%;"
+n $%&%, China and =igeria signed a 0$? billion agreement
for China to build three oil re:neries and a fuel complex,
Goice of America reports" Aiming to cut down =igeria*s
dependence on imports H such as clothing, pharmaceuticals,
textiles, be!erages H the two countries are also constructing
one of Africa*s largest free trade 2ones on the edge of the
commercial capital Cagos" Inown as the Ce''i 5ree Trade
Eone, the :rst phase of the !ast @oint !enture will cost 05
billion, and will stretch o!er &;,%%% hectares when complete"
?" )udan
Once an agriculturally rich country, )udan experienced an oil
boom through the early $%%%s" American oil companies are
not allowed to in!est in )udan because of international
sanctions imposed after the Darfur conJict, so the China
=ational Ketroleum Company -C=KC. plays a dominant role
in oil and gas pro@ects" )ixty percent of )udanese oil exports,
which account for F% percent of the country*s re!enue, go to
China according to China 3rie:ng"
The Chinese presence is not only seen in the oil industry but
detected in other infrastructure pro@ects such as the 6erowe
Dam, located about $$% miles north of the capital Ihartoum"
The 0&"< billion dam, situated on the =ile ri!er and
completed in $%%F, has a capacity of &,$5% megawatts" The
dam, which doubled )udan*s electricity generation, is
belie!ed to ha!e displaced about 5%,%%% people to arid
terrains" The 6erowe Dam is the largest hydropower pro@ect
both in )udan and Africa"
>" 6auritania
6odest oil reser!es were disco!ered at 6auritania's
Chinguetti oil :eld at the turn of the new millennium" C=KC
quic'ly saw the potential and currently operates three
exploration pro@ects in the country" +n $%%;, China and
6auritania signed a 0$ million cooperation deal eying the
health, economic and sociocultural sectors, 3usiness in
Africa Online reports"
The close Chinese6auritanian relationship has sur!i!ed one
military coup in $%%5, and another coup in $%%<" During
elections held in between the two coups, both of the main
presidential candidates praised 6auritania*s ties with China"
/The friendly ties with China can be called a model" +, if
elected, will continue the path of strengthening the bilateral
relations with all my eBorts,1 said then presidential
candidate )idi 6ohammed Abdalahi"
Typical of this cordial partnership is the =oua'chott Kort
pro@ect, built by a Chinese state company and :nanced
through a 0$F5 million preferential loan pro!ided by the
Chinese go!ernment" The pro@ect extended the port at
=oua'chott by more than %"55 miles" /The loan is refundable
in $% years, including :!e years of grace period, with only an
interest rate of $ percent,1 the China Daily reports" 3ilateral
trade in $%&% was estimated at 0&"%F; billion"
5" 3otswana
7ith rich natural resources such as diamonds, nic'el, coal,
copper, and gold, 3otswana is one of the fastest de!eloping
economies in the world, a!eraging a F percent annual
growth, the 7orld 3an' reports" 3otswana's diamond
reser!es are the main dri!er, accounting for onethird of the
country's LDK and A% percent of its export earnings, and
they are expected to be suMcient for at least another $%
years, according to the () Department of )tate" +n addition,
signi:cant uranium reser!es were disco!ered in $%%;"
China is oBering 3otswana interestfree loans, lowinterest
loans, as well as grants, and it has a sta'e in $< pro@ects
such as roads and railway reno!ation, health facilities and
lowcost housing construction, according to the website of
the Chinese ,mbassy in 3otswana" Along these lines, in
$%%F, )tandard 3an' and the +ndustrial and Commercial
3an' of China -+C3C. :nanced the expansion of the 6orupule
coal power station by pro!iding a 0<$5 million loan o!er a $%
year period" The deal aims to impro!e the country*s energy
selfreliance and to /secure power supply by expanding the
existing generating capacity,1 8euters reports"