Does Chinese Investment Really Benefit Africa Essay

Does Chinese Investment Really Benefit Africa - Essay Example In terms of business, the aspect of investment signifies the acquisition of any physical product and/or services which is duly purchased by the producers expecting a considerable enhancement in their future business operations (Myles, 2003). The importance of the aspect of investment is immense for every business organisation. The proper and adequate investment eventually raises the wealth and widens the financial freedom of the business organisations. The idea of investment generally fulfils the personal goals of the investors and also increases the social responsibility towards employees’ family members as well as the community (Myles, 2003). This particular paper broadly aims towards establishing whether the Chinese investments made especially in African continent can be regarded as beneficial. In this connection, various aspects that include the overall investment scenario made by China particularly in Africa along with critical evaluation of Chinese investments in Africa will be presented throughout the discussion. A Brief Overview of the Chinese Investments in Africa The African continent is recognised to be a significant emerging player, especially in the global market. It is also viewed as the most prominent destination for making investments followed by other countries that include China as well as India globally. This is owing to the fact that the establishment of modern technologies along with raising revenues especially from the few of the commodities that include oil and other valuable products in Africa which eventually boosted the financial development along with the advancement of the country. Due to these significant reasons, Africa is emerging as a great investment destination for several nations similar to China. Particularly, the western part of Africa is observed as one of the rapidly growing destinations in terms of investments, especially in the mining segment (Deming, 2010). In this connection, China continuously is forming up bet ter as well as enhanced financial relations with Africa by taking into consideration the emerging worldwide scenario of the African business market. It has further been observed that the African continent is very rich in terms of natural resources that might boost the economy of China to a large extent. However, the country is observed to lack superior infrastructure as well as technology. Thus, the requirement of superior infrastructure as well as technology in Africa include telecommunication systems, roads, computer network systems and power generation among others eventually broadened various opportunities for the Chinese industries or companies to make investments in the African continent (Deming, 2010). It has been apparent that between the year 2007 and 2008, the business trade value between China and Africa was raised by 45 percent. During that year, the total business dealings between the two nations were estimated to be approximately $106 billion (Deming, 2010). However, d ue to the emergence of worldwide financial crisis, a few of the developed Western countries had decided to reduce the volume of investments particularly in Africa. On the other hand, China viewed this particular fact as a business opportunity with the intention of expanding its market share in Africa. It has also been observed tha