Investment May 2010

The Next Empire

All across Africa, new tracks are being laid, highways built,ports deepened, commercial contracts signed—all on an unprecedented scale, and led by China, whose appetite for commodities seems insatiable. Do China’s grand designs promise the transformation,at last, of a star-crossed continent? Or merely its exploitation? The author travels deep into the heart of Africa, searching for answers.
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Photography by the author

A porter helped me with my bags as I made my way, sweating, into the train station in Dar es Salaam. In addition to my normal complement of luggage, I had brought a carton full of provisions, including several gallons of water, for a trip of uncertain duration. With the carton perched on his head, the porter led me through the vast, densely packed concourse and into the waiting salon.

There, a clock sat high on the wall, its hands frozen since who knows when. Around the perimeter of the room, above the upholstered benches, the faded yellow walls bore what looked like a generation’s worth of oily stains, laid down in layers in the shape of heads and shoulders by people leaning back, like me, bludgeoned by the thick afternoon heat and waiting for the call to board.

I was about to embark on one of the world’s great train rides, a journey from this muggy Indian Ocean port city, the commercial capital of Tanzania, to the edge of the Zambian Copper Belt, deep in the heart of southern Africa. The official who’d sold me my ticket had seemed puzzled when I asked when the train would arrive at its final destination, and he refused to guess; in recent years, the 1,156-mile trip has been known to take anywhere from its originally scheduled two days to an entire week.



Slideshow: View more of Howard French’s images

The railroad—known as the Tazara line—was built by China in the early 1970s, at a cost of nearly $500 million, an extraordinary expenditure in the thick of the Cultural Revolution, and a symbol of Beijing’s determination to hold its own with Washington and Moscow in an era when Cold War competition over Africa raged fierce. At the time of its construction, it was the third-largest infrastructure project ever undertaken in Africa, after the Aswan Dam in Egypt and the Volta Dam in Ghana.

Today the Tazara is a talisman of faded hopes and failed economic schemes, an old and unreliable railway with too few working locomotives. Only briefly a thriving commercial artery, it has been diminished by its own decay and by the roads and air routes that have sprung up around it. Maintenance costs have saddled Tanzania and Zambia with debts reportedly as high as $700 million in total, and the line now has only about 300 of the 2,000 wagons it needs to function normally, according to Zambian news reports.

Yet the railway traces a path through a region where hopes have risen again, rekindled by a new sort of development also driven by China—and on an unprecedented scale. All across the continent, Chinese companies are signing deals that dwarf the old railroad project. The most heavily reported involve oil production; since the turn of the millennium, Chinese companies have muscled in on lucrative oil markets in places like Angola, Nigeria, Algeria, and Sudan. But oil is neither the largest nor the fastest-growing part of the story. Chinese firms are striking giant mining deals in places like Zambia and the Democratic Republic of the Congo, and building what is being touted as the world’s largest iron mine in Gabon. They are prospecting for land on which to build huge agribusinesses. And to get these minerals and crops to market, they are building major new ports and thousands of miles of highway.

In most of Africa’s capital cities and commercial centers, it’s hard to miss China’s new presence and influence. In Dar, one morning before my train trip, I made my way to the roof of my hotel for a bird’s-eye view of the city below. A British construction foreman, there to oversee the hotel’s expansion, pointed out the V-shaped port that the British navy had seized after a brief battle with the Germans early in the First World War. From there, the British-built portion of the city extended primly inland, along a handful of long avenues. For the most part, downtown Dar was built long ago, and its low-slung concrete buildings, long exposed to the moisture of the tropics, have taken on a musty shade of gray.

“Do you see all the tall buildings coming up over there?” the foreman asked, a hint of envy in his voice as his arm described an arc along the waterfront that shimmered in the distance. “That’s the new Dar es Salaam, and most of it is Chinese-built.”

I counted nearly a dozen large cranes looming over construction sites along the beachfront Msasani Peninsula, a sprawl of resorts and restaurants catering mostly to Western tourists. Near them, sheltered coyly behind high walls, lie upscale brothels worked by Chinese prostitutes. In the foreground, to the northwest, sits Kariakoo, a crowded slum where Chinese merchants flog refrigerators, air conditioners, mobile phones, and other cheap gadgets from narrow storefronts. To the south lies Tanzania’s new, state-of-the-art, 60,000-seat national sports stadium, funded by China and opened in February 2009 by President Hu Jintao.

“Statistics are hard to come by, but China is probably the biggest single investor in Africa,” said Martyn Davies, the director of the China Africa Network at the University of Pretoria. “They are the biggest builders of infrastructure. They are the biggest lenders to Africa, and China-Africa trade has just pushed past $100 billion annually.”

Davies calls the Chinese boom “a phenomenal success story for Africa,” and sees it continuing indefinitely. “Africa is the source of at least one-third of the world’s commodities”—commodities China will need, as its manufacturing economy continues to grow—“and once you’ve understood that, you understand China’s determination to build roads, ports, and railroads all over Africa.”

Davies is not alone in his enthusiasm. “No country has made as big an impact on the political, economic and social fabric of Africa as China has since the turn of the millennium,” writes Dambisa Moyo, a London-based economist, in her influential book, Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa. Moyo, a 40-year-old Zambian who has worked as an investment banker for Goldman Sachs and as a consultant for the World Bank, believes that foreign aid is a curse that has crippled and corrupted Africa—and that China offers a way out of the mess the West has made.

“Between 1970 and 1998,” she writes, “when aid flows to Africa were at their peak, poverty in Africa rose from 11 percent to a staggering 66 percent.” Subsidized lending, she says, encourages African governments to make sloppy, wasteful decisions. It breeds corruption, by allowing politicians to siphon off poorly monitored funds. And it forestalls national development, which she says begins with the building of a taxation system and the attraction of foreign commercial capital. In Moyo’s view, even the West’s “obsession with democracy” has been harmful. In poor countries, she writes, “democratic regimes find it difficult to push through economically beneficial legislation amid rival parties and jockeying interests.” Sustainable democracy, she feels, is possible only after a strong middle class has emerged.

In its recent approach to Africa, China could not be more different from the West. It has focused on trade and commercially justified investment, rather than aid grants and heavily subsidized loans. It has declined to tell African governments how they should run their countries, or to make its investments contingent on government reform. And it has moved quickly and decisively, especially in comparison to many Western aid establishments. Moyo’s attitude toward the boom in Chinese business in Africa is amply revealed by the name of a chapter in her book: “The Chinese Are Our Friends.” Perhaps what Africa needs, she notes, is a reliable commercial partner, not a high-minded scold. And perhaps Africa should take its lessons from a country that has recently pulled itself out of poverty, not countries that have been rich for generations.

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Howard W. French is an associate professor at the Columbia University Graduate School of Journalism. He is the co-author, with Qiu Xiaolong, of Disappearing Shanghai: Photographs and Poems of an Intimate Way of Life.

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