Some African countries like Nigeria having a more difficult time due to the decrease in the value of worldwide commodities with the slowdown of economies such as China. Other countries seem to be getting by fairly well, countries like Ethiopia, which has had a 6% increase in its industrial capacity within the last year.
China and Chinese business are willing to help build Africa. However, some poor experiences in the past have put off many investors. Accordingly, this leaves a substantial reservoir of untapped potential.
A solution to encourage investment from China, may be for African nations to increase their participation in public-private partnerships. As Chinese people come from a country with strong governance, they tend to have more faith in partners who are in fact governments. Additionally, this type of partnership can potentially benefit from the funding of massive Chinese state-owned banks such as the Exim bank.
In recent years, Kenya and Tanzania have put in place legislation to encourage public-private partnerships. The real question is with the slowdown in the Chinese economy and Chinese investors looking for foreign investment opportunities, what will other African nations do?
Well, our Edward Lehman will be presenting his views at the Beijing Foreign Studies University on 13th December 2015. The link to book can be found at: http://viewer.maka.im/pcviewer/O2X9D05S?DSCKID=f024c54b-a79a-405e-81b2-e1eee6e56487&DSTIMESTAMP=1449502381629