China and India in Africa: New Strategic Encounters

Co-Conveners: Fantu Cheru (Globalisation and Africa, Research Director), Yenkong Ngangjoh-Hodu (Globalisation and Trade Cluster) and Cyril Obi (Conflict Cluster).

Over the last decade or so, China and India have established themselves as increasingly influential players across Africa. Given the large scale and scope of their engagement, this may turn out to be one of the most significant developments for the region in recent years. This development poses both threats and provides opportunities for African countries. The aim of this conference is to look at the opportunities and challenges posed by the increasing presence of China and India in Africa.

The year 2005 marked the 50th anniversary of the beginning of China-Africa diplomatic relations and an important milestone in China-Africa relations. For the first time, in January 2006, the Government of China issued an Africa Policy Paper, elaborating its policy toward Africa. In the Paper, the Chinese government put forward its proposals for cooperation with Africa in various fields in the coming years and declared its commitment to a new strategic partnership with Africa in the long-term, on the basis of five principles of peaceful coexistence (e.g. respect of African countries’ independent choice of development path, mutual benefit and reciprocity; interaction based on equality; and consultation and cooperation in global affairs). Important events such as the summit of China-Africa Forum aim to further boost China’s cooperation with Africa.

The relationship between China and Africa has evolved over time, but is currently very much dominated by trade, investment and economic cooperation. While securing energy resources may be important for China’s increasing engagement with Africa, China is also strengthening trade, investment and aid ties with Africa through various bilateral and multilateral forums such as Asia-Africa Summit, China-Africa Cooperation Forum (FOCAC) and China-Africa Business Council. In addition, China has in the context of its global activism, played an increasing role in peacekeeping missions in Africa. This is part of a wider effort to create a paradigm of globalization that favors China.

Similarly, India is also moving fast to consolidate its growing presence in Africa. The April 2008 India-Africa Forum held in Delhi, though modest by comparison to the China-Africa Forum of November 2006, demonstrates India’s commitment to put its own footprint in Africa as it competes with China and other developed countries to secure energy and other raw material resources to fuel its growing economy. The increasing trade and commercial ties between India and Africa is evident from the ten-fold growth in bilateral trade between 1990 and 2005 from USD 967 million to USD 9.1 billion. Moreover, the Indian Diaspora has a significant presence across the African continent and has assimilated into the culture and socio-economic milieu of many African countries. This reinforces the strong social and cultural bonds between Africa and India.

While China’s and India’s rise poses a number of challenges, on balance, the opportunities should outweigh the threats if managed correctly. Regrettably, missing from the new China-India-Africa cooperation arrangements is a clear and coordinated strategy by African leaders on how to engage these emerging powers constructively.   While both China and India know what they want from Africa, African countries have yet to develop a common framework on how to negotiate with China and India from a stronger and better-informed platform.Needless to say, there is a growing fear in Africa that the increasing engagement of the Asian Giants in Africa in their search for energy and minerals (China in particular), could equally turn out to be as bad as the “scramble for resources” that led to Western colonialism during the second half of the 19th century if not managed properly. These risks are related to weak governance standards, which may lead to misallocation of receipts from high raw material prices. Competition for Chinese and Indian investments may also lead to a race to the bottom, i.e., a weakening of the still low local standards and regulations (environment, labour market, tax, etc.). In the particular case of China, concerns have been expressed about China’s support to undemocratic regimes, such as the Sudan, as it tries to secure long-term energy sources from that country.

The meeting will draw participants from China, India, Europe, the United States and scholars from several African countries. Other stakeholders, such as NGOs and policy makers from the Nordic countries, African ambassadors in the Nordic countries, the African Union, NEPAD, the Economic Commission for Africa, and representatives of the media will also participate.