Currency war: What is Africa’s gain?

The frenzy between China and the United States of America’s trading prospect has taken another turn this week in a successive row as the Chinese government devalues its Yuan against the Dollar. This move is deliberate and in some quarters viewed as political with its effect more felt economically. On the part of Africa, China […]

The frenzy between China and the United States of America’s trading prospect has taken another turn this week in a successive row as the Chinese government devalues its Yuan against the Dollar. This move is deliberate and in some quarters viewed as political with its effect more felt economically.
On the part of Africa, China has doubled its trading relation with the continent and this again means more inflow of Chinese products and services will be witnessed. the potency therefore may see Africa’s revenue in terms of income for her export decline especially now in the area of crude oil export. Secondly, the overwhelming severity will cast Africa in a situation of increase dependency and craving for foreign goods and services at the detriment of improving manufacturing locally which is not good for Africa’s economy.
But in the long run, if China does get the Yuan into the ‘block of international trading currencies’, then, Africa can leverage on this pool to doing business instead of just being boxed by the Dollar and Euro which are expensive monetary options and that would reduce America’s political and economic power on Africa. That is, America will not be the only sole determinant in global markets and politics. In response to these, Africa can place a strong regulation on the entrance to its market on goods from China, America, Europe and Australia as they can now have a stronger bargaining power by encouraging local manufacturing of goods and services in the continent, because Africa will be courted by these industrialized nations.
Otherwise, Africa will be a loser. As a way of not being placed in a quagmire, we should only do business with those who are ready to buy our exports too, bearing in mind the import of the Iran-U.S nuclear deal especially for Countries like Nigeria involved in crude oil export. Africa must increase in the drive for technology acquisition, insist on repatriation of her stolen funds in foreign banks in Europe and the U.S, broaden the horizon of governance to carter for the well-being of its citizenry, curtail the influence of western powers on its domestic affairs, diversify her economic base, fight against insurgency and promote the rule of law. With these in place, Africa can be heard and not only seen at the global arena of economics and politics.
Oru Solomon Astell is an Estate Surveyor, poet, author and public affairs analyst