International Monetary Fund Subscribe to International's articles (Visit International's Website) The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy. International Monetary Fund is a Platinum author on EvanCarmichael.com

International Monetary Fund's Complete List Of African-Accounts Articles Name Email If you enjoyed this article, get International Monetary Fund's Complete List of African-Accounts Articles For FREE! More International Monetary Fund 60 References Microfinance in Africa Experience and Lessons from Selected African Countries II STOCK MARKET AND ECONOMIC GROWTH THEORETICAL AND ANALYTICAL ISSUES III C Commercial Policies THE ROLE OF CHINAS PUBLIC SECTOR Expenditure Composition and Growth What Drives Chinas Growing Role in Africa 42 Minimum Regulatory Requirements and Supervision Practices Microfinance in Africa Experience and Lessons from Selected African Countries 20 Deposit Collection and Credit Extension Microfinance in Africa Experience and Lessons from Selected African Countries VI C Institutional Quality WHAT DETERMINES STOCK MARKET DEVELOPMENT IN AFRICA SubSaharan Africa Learning What Works III B State Financial Institutions THE ROLE OF CHINAS PUBLIC SECTOR

This paper intends to provide an assessment, based on fractional information, of China’s
economic involvement in Africa and to identify the forces shaping burgeoning China-Africa
economic relations. The study is undertaken against the background of a rapidly changing
landscape of international trade and finance that has eclipsed traditional aid flows to middleincome
countries, making Africa ever more central for development finance.
For Africa, China has been a market, a donor, a financier and investor, and a contractor and
builder. While aid historically was of major importance, two significant changes have
occurred since the turn of the new century. Because trade and investment have become much
more significant in volume than aid flows, economic relations between China and Africa are
clearly commercial rather than aid-driven. Meanwhile, the private sector has stepped to
center stage. Here China’s foreign economic relations mirror changes in its domestic
economy. China-Africa economic exchanges have become much more decentralized and
broad-based.
The paper identifies four factors associated with recent changes in China’s economic
engagement with Africa: Chinese government policies, growing Chinese and African
markets for each other’s exports, Africa’s demand for infrastructure, and differential China’s
approach to financing. China’s state financial institutions have been instrumental in
cementing the new, commerce-based economic ties. In the process, they are helping correct
chronic undervaluation of Africa by investors and helping fund new investments in Africa’s
export and infrastructure sectors.
Africa will become an increasingly attractive market as incomes rise and progress in regional
integration makes its markets even more attractive. It will also become a key destination for
FDI, and it will continue to need infrastructure. Together these powerful market forces may
put Africa-China economic relations firmly on a commercial footing. Both public and private
sectors have a part in ensuring that the expanding trade and investment ties are mutually
beneficial and contribute to sustainable growth and development in Africa. The impact of
possible changes in Chinese demand on African terms of trade, trade patterns, and the
economic prospects of countries in Africa are worthwhile topics for further research.

IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007

CONCLUSION What Drives Chinas Growing Role in Africa - To learn more about this author, visit International Monetary Fund's Website.

Like this article? Share it with your friends

---

	No article feedback found.
	Leave Your Feedback

---

Dave Kurlan Dave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website

To learn more about the Evan Elite Author Program please contact us.