Africa has become a hot investment destination – The Economist
LONDON — The renewed interest from foreigners in Africa as an investment destination is heartening and this time Africa needs not be a pawn in Cold War relations, a place where proxy wars took place as was the case in Angola or sit back while foreign powers plunder its resources. If the continent seizes the opportunities that are now presenting itself, it could uplift the lives of its 1.2bn people. In South Africa, President Cyril Ramaphosa is on a drive to get some of the investment pouring into Africa, $100bn over 5 years is his target, to reach the tip of the continent. While South Africa has been seen as the gateway to Africa in the past, it seems to have has lost that status. I searched the Internet and there is literally no reference to it in the last five years. This is what Ramaphosa is up against. He will have to compete with many of South Africa's neighbours who are creating the right conditions for foreign investment, while rooting out corruption. If he manages that, the world seems to be ready to invest in Africa. The Economist is urging African countries to ensure that this time it is on their terms. – Linda van Tilburg
By Thulasizwe Sithole
In an article in the Economist, the writers draw a distinction between the scrambles for Africa in the past and present day foreign engagement in the continent and the view is that there is another surge in foreign scramble for Africa. "Governments and businesses from around the world are rushing to strengthen diplomatic, strategic and commercial ties." But unlike the previous surges in foreign interest, this time the scramble may actually benefit the inhabitants of the continent.
The first time that there was outside interest in Africa, which was called "the scramble" was during the 19th Century when the West grabbed land and divided the countries according to their own interests. During the Cold War, the two sides, the Soviets with their satellites and Western nations fought for the favour of African states, many of whom had become independent states during that period. The Soviets backed any countries who were in support of their doctrine, while the Americans backed "despots who claimed to believe in capitalism." The Economist believes that the third surge that is happening now, "is more benign." Africa is becoming more important, one of the reasons for this is its growing population, which is estimated to more than China's people by 2025. Governments and the business world "are rushing to strengthen diplomatic, strategic and commercial ties." And unlike the previous rushes into Africa, this may actually produce opportunities and it may benefit Africans, if they seize the opportunities it presents.
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