‘Chinafrica’ is a macro megatrend set to impact everything from Silicon Valley to Wall Street

Josh Wolfe, VC at Lux Capital, posted wrote about Chinese influence in Africa as one of the major under the radar macro trends. China is investing heavily in Africa to develop access to raw materials and establish markets for its exports.

‘Chinafrica’ is a macro megatrend set to impact everything from Silicon Valley to Wall Street

 

"As parts of China’s economy emphasize technology and services, it will for better or worse export to other low-wage developing nations its best and worst practices and its expertise in manufacturing, managing labor and building mass infrastructure. China will help set up, and in many cases, co-own or operate manufacturing facilities, infrastructure (rail, water, mining, electricity) and transportation and shipping hubs.

It’s classic mercantilism: China through trade gains geopolitical influence. It will grow both its economy and its projection of power beyond the Asian Pacific rim, leveraging the African continent to project trade and power into the Atlantic Ocean on Africa’s west coast and the Indian Ocean, Arabian Sea and beyond to Africa’s east coast."