Dangerous security situation harming Chinese investments in Africa

By John Lagat Source:Global Times Published: 2013-12-12 19:23:01

Africa's security landscape is characterized by huge diversity, ranging from insurgencies or tribal conflicts, to rising fears from piracy, violent extremism and organized crime.

In West Africa, militant and terrorist groups are the main sources of insecurity due to claims of poor management of resources, especially oil. Islamist militant groups Boko Haram and Ansaru, for instance, are responsible for thousands of deaths in northeastern and central Nigeria, including attacks on churches and mosques and a 2011 suicide bombing of the United Nations building in Abuja.

Possibly, it is East Africa that has been hit hardest by the increasing cases of terrorism in Africa. Indeed, Kenya, Uganda and Tanzania have been victims of terrorist acts from as early as the 1980s.

Coincidentally, most of these attacks have been against foreigners. They include the 1980 terrorist attacks on the Norfolk Hotel in Nairobi and the instantaneous assaults on US embassies in Nairobi and Dar es Salaam in August 1998.

Four years later, another attack was witnessed in Paradise Hotel and on an Israel-bound plane in Mombasa. And this September, unidentified gunmen attacked the upmarket Westgate shopping mall in Nairobi, killing over 67 people. Despite continual assurances from authorities that the sorry-state of security is under control, things appear to be worsening.

This instability is harming Africa's investment profile. The region that has for a long time been referred to as the dark continent by the Western media has witnessed huge transformations in the past decade, thanks to the huge appetite for business opportunities from Chinese investors. Some nations have endeavored to boost their investment climate to attract Asian investors. Rwanda, for example, has been transformed into one of the world's top investment destinations despite the 1994 genocide.

But the attacks are now evolving to targeting foreign investors of specific nationalities. The Chinese have been the worst hit due to their widespread investments not only in urban areas but also in rural zones.

Early this month, the Chinese construction firm, China Wuyi, indefinitely suspended work on a road following inter-communal clashes in northern Kenya. The Chinese firm said in a statement that it had been forced to suspend work after its staff, security team vehicles and machinery had come under heavy attacks from armed militia groups. If completed, the road will boost intra-Africa trade.

Just last year, a camp belonging to a Chinese firm was attacked by rebels in Sudan and several Chinese nationals were kidnapped.

China's direct investments in Africa have increased from $1.44 billion to $2.52 billion with an annual growth rate of 20.5 percent from 2009 to 2012 according to a white paper on China-Africa economic and trade cooperation issued by the Chinese government in August. At present, over 2,000 Chinese enterprises have invested in more than 50 African countries. By the end of 2012, China had signed bilateral investment treaties with 32 African countries, and established joint economic commission mechanisms with 45 African countries.

But these foreign investments are at risk if these attacks are left unchecked. It is hard to imagine how much Africa would lose if China were to wean Africa off its operations.

European colonial powers left behind a tattered continent with no social anchors. This is what led to Africa's instability, which continues to this day in many countries.

Unfortunately, what is lacking in Africa is a commitment to narrowing inequality among the population. The widening gap between the rich and the poor has precipitated violent conflicts.

For Africa to be the first choice destination for foreign businesses, it must build a viable, sustainable and stable society, through the founding of strong and legitimate institutions.

It is encouraging that China has joined hands with Africa in fighting terrorism. This security partnership must be deepened further to fight Africa's domestic instability. China could step in by helping train Africa's security apparatus and supplying sophisticated and modern weapons to the continent.

The author is a journalist and a security analyst in East Africa. opinion@globaltimes.com.cn



Posted in: Viewpoint

blog comments powered by Disqus