BackChina’s Africa ties
For all the speculation about resentment of Chinese economic dominance in Africa, govts in the continent know where the money trail leads
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For all the speculation about resentment of Chinese economic dominance in Africa, governments in the continent know where the money trail leads. Zimbabwe is the latest to move closer to China after President Robert Mugabe’s wrecking of its economy. Having added the renminbi to its basket of official currencies last year, it is now negotiating with Beijing to approve the yuan for public transactions. Beijing has agreed to cancel $40 million of debt due this year.
Ghana has already allowed banks to sell the renminbi while clearing houses in Kenya and South Africa allow investors and traders to conduct transactions directly between the renminbi and local currencies.
The volume of China-Africa trade means the list is likely to grow longer. Little wonder the renminbi’s devaluation earlier this year and consequent fears of fading Chinese demand hit African economies hard. Beijing can be sure of their backing in its push to internationalize the yuan.
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