AMN - Chinese investment underpins Africa’s mining – comment by Yolanda Torrisi

China has played an important role to date in developing the mining industry in emerging nations on the continent. Investment dollars from China have particularly helped with infrastructure development, an important precursor needed for mining in nations such as Zambia.

In some countries investment from China has been the primary, if not only, source of funds for helping develop the nation’s mining industry.

In Zambia, project developers and industry representatives are seeing results from their relationship with investors in China.

Among the most notable of investments in infrastructure, is China’s support for Zambia’s railway line built to the sea coast, over the past four decades.

Copperbelt University vice-chancellor Naison Ngoma believes the support had a “profound effect” on the country and was a vital transport way for importing and exporting goods. The vice-chancellor of the large Zambian public university believes China has signalled its full commitment strengthen bilateral relations by investing in roads infrastructure.

Bilateralism is, of course, the conduct of political, economic, or cultural relations between sovereign states.

The value of China as an investment funding and infrastructure investment source should be acknowledged and encouraged so more vital projects can get off the ground and be progressed to sustainable mining operations.

China’s Ministry of Commerce and the People’s Government of Hunan Province recently hosted 53 African countries at the China-Africa Economic and Trade Expo in China’s Hunan Province.

The expo backed by China made its debut late last month and has been a vehicle for reaffirmed commitments to shared investment goals and strengthened bilateral relations.

More than 10,000 delegates attended the inaugural biennial event in Hunan capital Changsha — more than 1,000 from Africa —along with additional participants who took part online.

Among the goals were a “new mechanism” for future economic cooperation.

Association of Women in Mining secretary Grace Njapau spoke around the event and acknowledged Zambia and China’s bilateral ties. She argued the Zambian industry body was already seeing benefits from what she hoped would prove to be long-lasting partnerships.

There’s no doubt mining has been and will continue to be a key focus in trade between China and Africa as the continent benefits from China’s considerable investment.

Ministry of Commerce of the People’s Republic of China Vice Minister Qian Keming notes Chinese companies have played a “key role” in infrastructure development in Africa.

“Chinese enterprises have been actively participating in infrastructure construction in Africa,” he told a press conference. “[They] have been implementing a large number of major projects in the fields of rail transit, ports, aviation, and electric power, which have facilitated the entry of China’s technologies, equipment, standards, and services into Africa.”

Networking at the expo titled ‘Win-Win Cooperation for Closer China-Africa Economic and Trade Partnership’ has allowed connections between miners, investors, jewellers, producers, distributors, jewellers and many more.

Last year Chinese investment in Africa grew 20% to US$204.2 billion last year when compared to 2017 figures. Eight African countries now also include the RMB in their foreign exchange reserves.

Let’s acknowledge the importance of the relationship with China for the continent and keep on building reciprocal relationships for the benefit of Africa. After all investments in infrastructure and projects are a cornerstone to economic and community development and the success of our mining sectors.

- Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the continent. Contact: yolanda@yolandatorrisi.com