The Gospel of Foreign Aid: A Theoretical Note

Byusa, V

doi:10.4314/rj.v26i1.3

Cited by 1 publication

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“…China"s relationship with Africa in modern times was thus characterized by the former supporting liberation movements that had then been in momentous stages leading to independence of most African countries from the colonial masters in the 1960s. China"s opening up and re-discovery of Africa coincided with Africa"s deteriorating economic performance as a result of conflicts, mismanagement as well as structural (Byusa, 2010). Chinese investment in Rwanda, which focuses on infrastructure, has played a key role in rebuilding East Africa country after the genocide against Tutsi, which lasted 100 days over 27 years ago.…”

Section: China-east Africa Historical Economic Relationshipmentioning

confidence: 99%

“…For example, China has constructed 70% of the country"s roads, beginning with a loan of 250 million yuan in 2009, equivalent to nearly US$ 36 million at that time(Jenna, 2010). As to other African economies, China has become Rwanda"s biggest trading partner and project contractor(Byusa, 2010). China is now the second-largest source of foreign direct investment in Rwanda, behind only the European Union(Xinhua& Ying, 2018).…”

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Impact of Chinese investment on Rwanda's infrastructure (2000-2020)

Hakuzweyezu

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Rwanda is one of the oldest kingdoms in the African Nile valley. Rwanda is also one of the African countries that have suffered from the effects of colonial heritage. Rwandans" unity collapsed during the colonial period. Belgian colonialists introduced ethnic division in 1930 based on phenotypically aspects and the hatred between ethnic groups led the country to genocide against Tutsi. By the time of the 1994 genocide, Rwanda"s economic development and infrastructure have collapsed and returned to the 1970s level. Under the Vision 2020 initiative, which aimed to transform the country from a poor to a middle-income country, Rwanda"s economy has dramatically improved and many planned targets have been reached, although many challenges remain to be faced, notably in: urbanization, water sanitation, energy and industrialization. Chinese investment during Belt and Road initiative has been instrumental in East African development in terms of international trade and regional integration. It was also the solution for geographically isolated countries including Rwanda. Despite some negative effects highlighted by the study, such as accusations of violating labor law and human rights by foreign companies, foreign direct investments, including from China, have played many important roles in Rwanda"s economic reconstruction. The findings of this research show that Chinese investment in Rwanda during BRI reached US$ 1.47 billion between 2013-2020 in several infrastructure areas. Low wages paid by foreign companies to Rwanda"s workforce, however, is still a matter of concern, in comparison to the standard salary provided by the International Labor Organization (ILO).

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Section: China-east Africa Historical Economic Relationshipmentioning

confidence: 99%

mentioning

confidence: 99%