In her essay, aptly entitled, "Building BRICs: The New Scramble for Africa," she indicates the gains made in the last 15 years on the continent of Africa due to the rise of, investment from and trade with the "global south," or the BRIC countries (Brazil, Russia, India and China). Njau provides qualitative and quantitative evidence that Africa is, in fact, experiencing a renaissance, one that will have far-reaching consequences for growth and development on the continent in the decades to come.
Indeed, over the last decade, there has been a “realignment
in commercial relationships…a shift in centers of global production away from
western markets, towards emerging markets generally.” The West's economic downturn of 2008 marked a watershed moment in this gradual shift.
The BRICs are leading the pack with new investments in everything on the continent from infrastructure to mining to schools and hospitals. China alone invested $100 billion by 2008 according to Standard Bank. China, in particular, has become the continent’s largest bilateral trading partner. By 2009, 15% of sub-Saharan Africa’s trade was with China,
followed by 12% with the US. As Njau carefully notes, “for the first time in
decades, Africa’s growth appears enduring.”
According to Njau, BRIC nations know how to work in markets
and with populations similar to their own, those with low incomes, low savings
and low purchasing power. BRIC nations can “more readily understand the dynamics of the
continent’s markets and adapt their products accordingly.” As a result,
multinationals based in BRIC countries and building in Africa are more risk
averse than Western multinationals and are willing to engage with a rising
middle class.
Njau also notes the many changes in the political and economic
environments in Africa in the last few decades. Improved
macroeconomic management, more transparent business environments and robust
interest in African markets on the part of emerging market economies have
herded in a dynamic new era for the continent.
She also observes that “one of the positives cited about the growing
interest of the BRICs in the continent is the positive spill-over effects that
the BRICs’ expertise will have...as integral actors
in transferring skills and technical know-how to their African employees. The
Chinese firm, Huawei, which is the world’s second largest telecommunications
equipment supplier, has worked to integrate African talent into its global
operations.” Such practices are evidence of important investments in human
capital which will have far-reaching effects on Africa’s future growth and
development.
Rather poignantly, Njau points out that the BRICs' investment in Africa and Africa's exploding growth illustrate that Africa should be taken seriously as a viable investment destination by the world at large. “Africa, with nearly one billion people, represents the world’s third largest market after China, which has a population of 1.3 billion people, and India, with 1.2 billion people.”
Finally,“With new opportunities opening up, and more tangible
developments on the ground…people will demand their cut. This could begin to
shift African politics away from domination by ethnic loyalties, and create new
alliances around demand for public goods and a share of the national cake.” In other words, improved economic conditions in Africa could lead to political revolutions in favor of democracy and greater economic equality as it has in East Asia over the past few decades. The Africa we know could very soon emerge transformed.
If you'd like to read the essay in its entirety, simply go to Amazon and enter the title, "Building BRICs: The New Scramble for Africa" or the author's name, Barbara Njau.
