The supposed reason for exploiting Africa hundreds of years ago was to utilize its untapped human and natural resources. Isn’t this the same reason why foreign investors are pumping funds into Africa now?
According to Trade economics, foreign investment in Nigeria increased by $1150.51 million in the first quarter of 2019.
The Worries of Foreign Investments
No doubt, foreign investment has some benefits. However, it creates these worries;
- Foreign countries have become Africa’s major creditors with China leading the group. A growing demand for natural resources in China is also credited with heavy investment in African countries with rich resources.
- The survival of the startup space in Africa is at the mercy of foreign investors. Nigerian Startup Funding Report revealed that foreign investments accounted for 98% of the total funds raised by Nigerian internet startups in the second quarter of 2018.
- It becomes difficult to know which are truly African startups, as in the case of Frenchmen Jeremy Hodara and Sacha Poignonnec’s Jumia being postured as an Africa startup to win the hearts of Africans.
- With a substantial chunk of their funds in Africa’s startup space, these investors have a huge influence on the future of these startups.
From history, Africa has served the global interests and ambitions of many foreigners in the hope of a promise to help its people grow out of poverty and grant her a seat on the global stage.
But recent reports have proved this abortive as no African country has its name written in the list of developed countries in the world.
So here is the question; is this the rebirth of slavery for Africa (same master, just a new method)? Or just business without any strings attached?
I didn’t know I was a slave until I found out I couldn’t do the things I wanted.