When writing my last post I was reminded of the recent discussions surrounding foreign investment in critical infrastructure, specifically Chinese investment in the UK's Hinkley Point C project and Australia's energy grid. The UK is now making moves to change its approach to investment in these key areas (Clifford Chance, 2016).
Land deals in Africa, and foreign investment in general, may introduce another layer of water insecurity to the already complex picture. Control, or at the very least intimate knowledge, of a country's agricultural systems and water infrastructure could present serious concerns for African governments.
Land deals in Africa, and foreign investment in general, may introduce another layer of water insecurity to the already complex picture. Control, or at the very least intimate knowledge, of a country's agricultural systems and water infrastructure could present serious concerns for African governments.
The posts (and exchanges) are very good - keep it up!
ReplyDeleteHi Baljeet,
ReplyDeleteGreat posts leading to multiple questions and possible scenarios in my head.
Why do you think that foreign investments and involvement will be more of a tumbling block rather than a source of strength and stability in the "complex picture"? And if so, how then do you suppose that these otherwise marginalised countries be able to garner enough influence or leverage to state their claims?
Thank you!
Hi Cheong, I'm glad you've enjoyed reading the blog. In regards to the first question about the merits of foreign investment, I don't mean to suggest that any investment from foreign entities is a bad thing. I think that sort of investment is healthy and necessary, and overall would be positive for a country. Where I believe some countries may need to exercise caution is when a key asset, like major freshwater reserves or water infrastructure, ends up being controlled/owned by one/a handful of foreign entities. Going into the future, African countries will need to be cognisant of the risks posed of key assets being controlled/owned by a potentially aggressive state.
DeleteI believe it's possible for African countries to invite foreign investment within their economies and establish themselves globally without necessarily allowing undue foreign control over critical infrastructure. Ultimately, the state must be sovereign and their right to protect their people must be respected. As has been seen in the case of countries around the world already, including the examples I mentioned in my original post, that right of a country to be cautious is indeed already recognised. African countries should not have to settle for less.