Concerns about Chinese capital investment in Africa entrapping leaders

Concerns about Chinese capital investment in Africa entrapping leaders

- Fresh details show that capital contributions from China to Africa are more significant than those from the UK or France

- However, investments from the two countries are higher than what China provides for the continent

- Concerns have been raised about how capital injection from China is likely to entrap African leaders and hinder attempts at eradicating poverty

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It has emerged that capital investments from China are smaller but are of more significant impact in Africa, compared to that of France and the United Kingdom (UK).

China’s contribution to Africa has sparked a debate about its ability to hinder development in the continent.

There have also been concerns about whether the capital is an obstacle that entraps African governments into acts that hinder efforts aimed at reducing poverty.

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As per a report by qz.com, capital injections into Africa and related activities such as the actual trends and patterns of foreign direct investment stocks, are hardly subjected to critical examination.

It has also been argued that media coverage of China’s presence in Africa is often misleading as information provided is usually inaccurate.

The information available shows that Chinese capital in Africa is by far the leading source of foreign direct investment on the continent.

In that respect, it has been suggested that efforts should be geared towards the fine-tuning inflow of Chinese funds into critical areas in which they are needed.

This would then lead to a connection to the national aspirations of every African nation in order to stimulate progress and development.

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Source: Briefly.co.za

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