Eliminating Poverty in Africa via Chinese Investments

From North to South and from East to West, the story of Africa is always attributed to poverty, a sad reality that put the continent in a bad shape. Long have this problem lingered. Yet her leaders are finding it more of rocket science to the tide.

Eliminating Poverty in Africa via Chinese Investments

With an ever-increasing population of close to a Billion persons, Africa is on a crossroad to self-made poverty. Poverty widely attributed to a failure in governance, societal structure, and low self-esteem.

Was it perversity we longed to tackle this scourge? What hope lies in secrecy if we keep applying the wrong solution to this problem? To what extent and how best Africa can eliminate Poverty?

Poverty! A leading cause of death in Africa, according to research in the University of Nairobi, Kenya. About 50% of the population is living below One dollar per day.  A trend was never seen in recorded history.

Eliminating Poverty in Africa via Chinese Investments

Lack of basic infrastructure, poor health facilities in rural areas, low literacy rate, corruption, increased terror-related and gender violence, to mention only but few are evils commonly seen in most facets of the continent.

In the Democratic Republic of Congo (DRC), the situation is even worst, close to 40of the population is poverty-stricken. In Somalia, a nation hit by terror, less than 10% of the country can access good health, clean water, electricity, security, and education.

The situation is not different from Mali, Sudan, South Sudan, Libya, Gabon, Niger, Chad, North Eastern, and Western Nigeria.

Selected Countries in Africa Where Poverty is Strategically Wiped Out Via Chinese Investment

East Africa- Kenya (the pride of Africa), as at 2019 statistics, Kenya had successively lifted more than  5million persons out of poverty, the country had been attracting Foreign Direct Investment in different facets of her economy. 

Mr. Uhuru Kenyatta specifically lured the economy of Kenya using China’s model. The nation has built one of the standard gauge rail ever seen in the continent of Africa. This has eased the transport problem by more than 30%.

The model is mainly,

  • Attracting FDI,
  • Providing Loans to Small and Medium Businesses,
  • Building world-class infrastructure in rural areas,
  • Stable Power Supply and
  • Accelerated growth- Developing the rural areas more

Kenya is one of the success stories in Africa, despite the threats posed by Terrorism with nearby Somalia; she defied all odds and become the economic powerhouse in the East of the continent.

Southern Africa- South Africa

A one-time Africa’s largest economy by GDP. With a Stable and well-structured economy acquired from the West (British), the country has maintained a growth rate over the year.

Chinese investment has doubled the western investments in the last 10 years. South-Africa is now economically tied to China and the rate of poverty has declined though she is still battling corruption

In recent times, the nation focused more on lifting the poor via:

  • Massive Investment in Education
  • Massive Social Investment
  • Improved Health Facilities in Rural Areas
  • Massive Housing Projects
  • Ease of doing business among locals and
  • Increased internet Awareness Among the ordinary populace

South Africa’s story could be best described as the western already made economy, handed over by western powers. Yet a handful of problems devils the country, from corruption to youth restiveness, a lot still needs to be done.

North Africa- Egypt

The economic powerhouse in the Arab world, and one of the few advanced nations in the continent. The Egyptian government of Abdul Fattah Alsisi has, on average relieved the country from the list of poor nations.

The last uprising brought unprecedented changes to her economy; Egypt has more of a Chinese growth model and Investments. The country has succeeded in decimating poverty via:

  • Massive industrialization- so many got employed within a short time
  • Increased power generation and distribution in poor settlements
  • Massive Housing- Construction of new cities ongoing
  • Attracting massive FDI from China and the West
  • Massive destruction of Terror related activities-giving rise to peace and security
  • Massive investment in ICT
  • Agricultural revolution
  • Improved Rural Health Infrastructure
  • Making the country safe and easy for the poor to do business etc

West Africa-Nigeria

The most populous black nation on earth has in the last four years lifted millions out of strict poverty. With a population of close to 200 million, the nation has seen difficult times and challenges. Reports from World Bank, IMF, Bloomberg, Fitch rating, show that Nigeria still is still the poverty capital of the world.

Nigeria is the largest economy in the continent, it's overly dependent on oil revenues to stimulate growth is a setback. But the current administration has done a lot in reducing poverty.

While these strategies may not last long, expert suggest, the economy is rejuvenating; the government has:

  • Attracting Substantial FDI in the country
  • Massive National Social Investment-The largest in Africa
  • Improved and increased power but not enough for economic restoration
  • Massive Ease of doing Business among locals
  • Improved Agro-allied industry and agricultural activities
  • Increased investment in ICT

Africa is still at a crossroads, she needs more technological and innovative ideas to drive growth.

Is Chines Investment Profitable to Africa and what Type of FDI is Needed?

The answer to that question is YES! China has proven to be a real friend to the continent, with no-political interest, she has rapidly developed many infrastructures including Roads, Railways, Airport, Seaport, Hospitals, Massive Housing projects, Schools, to mention but a few. These investments are low-cost and are tied to the long term.

China is not just a reliable partner but life support to Africa. Africa leaders as a matter of fact should bring more Chinese Foreign Direct Investments in areas like:

  • Technological Invention, Innovation, and Research (TIIR)
  • Industrialization and Market
  • Modern Agricultural Techniques
  •  ICT
  • Advance Medical Facilities and Personnel
  •  Balance of Trade
  • Massive Housing Project Development
  • Artificial Intelligence
  • Massive Transport Investment and corporation
  • Military Technology and Research
More details later.

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