The IMF has raised concerns about Chinese investment in Africa. Because of China’s loan policies, the IMF warned of increasing debt distress in 15 African countries. Yet it’s fair to say the IMF would have few qualms about the US or any European countries investing in Africa. This does not mean there are no concerns about Chinese investment in Africa. It just means African leaders ought to be more careful when they sign loan agreements or accept grants and investments — and bear in mind shifting power relations in the geostrategic political economy. Yes, really. Geostrategic political economy and economic statecraft have become a lot more than buzzwords in the early 21st century. Investments are not easy to reject, but they can be sources of rent-seeking and mismanagement. Weary of foreign powers using the continent as a resource basket, Africans have been sceptical about Chinese investment on the continent. This scepticism, also felt by Latin Americans, is partially ideological, dr...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now