Transcript

Whether China brings development through its investments in Africa is a mixed answer, really. In some cases, it's been quite positive. In other cases, less so. And I think that counters some of the media hype that the Chinese are only there to do things in their own interest. So rather than saying it's either/or, it's a bit of both, really. And the answer to why that happens is really down to the nature of those local institutions that you see in Africa. So where you have robust laws that govern, say, the local content that is written into those contracts and that is enforced, then you can see some benefits coming from that. But where there's lax regulation, then companies, whether they're Chinese or whoever, will not really be doing a great deal to generate employment, create revenue, and all those other things which you get. I think the other key way that the Chinese have contributed to more forms of inclusive development is through what are called oil-for-infrastructure deals; So this is to say, well, we'll take some of your oil, but it can be other natural resources. And we effectively give you a low interest loan on the back of that. You secure your loan against the sale of those resources. And then the money that comes in from that is used to build infrastructure, which can be roads, railways, electricity generation, and things like that. And it's those things, actually, I think, which are going to have the wider ripple effects in terms of African development, not simply whether there's a 5%, 20%, 30% stake in a particular oilfield, which is a very capital-intensive industry. So the benefits are always going to be quite limited from direct employment, say, in the oil fields. But if you think in a much broader set of issues around those infrastructure and the linkages to local firms, and you can see small ways, I think, in which China is benefiting Africa.