25.10.2024

Gambling iGaming

Africa on the Path to a New Colonization


Africa on the Path to a New Colonization

Africa has always been a coveted prize for global powers, and now China is stepping onto the stage. Over recent decades, it has poured billions of dollars into the continent, improving roads, telecommunications, and infrastructure. Yet behind all of this lie deeper questions: what do these investments actually mean for Africa, and where could closer ties with Beijing ultimately lead? 

Spoiler: nowhere good for Africa — but for us, it's a goldmine of opportunity.

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China builds roads... but whose roads are they?

At first glance, $300 billion in Chinese investment sounds like great news for Africa. Growing infrastructure, new roads, bridges — it all looks like movement in the right direction. Take the Mombasa–Nairobi railway project, worth $3.6 billion. But once you start digging deeper, questions arise. These roads are being built by Chinese companies, with Chinese workers, and most of the loans financing it all come with far-from-favorable terms. Countries like Kenya are ending up in a debt hole to Beijing, and the continent faces a debt dependency that will be hard to escape. So where do these roads actually lead? Most likely, not where Africans are hoping. [1]

In Kenya, for example, external debt to China stands at $6.5 billion, and there is a real risk that the country may find itself unable to service that debt. A similar situation played out in Sri Lanka, where the inability to repay a Chinese loan resulted in a port being handed over to Beijing for 99 years. [2]

Telecom networks: freedom of communication or control?

It's not only roads that are becoming "assets" for Chinese investors in Africa. In the telecommunications space, Huawei and ZTE have become key players, providing internet access and mobile connectivity in countries such as Nigeria and Kenya. These companies are building 4G and 5G networks, delivering digital solutions across Africa. For instance, Huawei has invested over $500 million in the development of 4G networks in Nigeria. [3]

Africa on the path to "digital colonization"?

With investment comes not only progress, but dependency. Critics argue that Africa risks falling into a new form of colonial dependence. China introduces its technologies, promotes its companies, and in return gains not just profit, but influence.

  1. Debt trap: According to a Brookings report, over 21% of Africa's debt is owed to China. This raises concerns that countries unable to repay will find themselves in political and economic dependency. [4]
  2. Technological dependency: When a large share of telecom networks is owned by Chinese companies, it limits opportunities for diversification and leaves countries vulnerable to political pressure. For example, ZTE and Huawei control a significant portion of networks across the continent. [5]
  3. Political influence: African countries are increasingly reliant on Chinese aid and loans, which weakens their independence in decision-making. China can leverage its economic tools to advance its interests on the political stage. [6]

Online gambling: what's the connection?

And now for the most interesting part — how does all of this affect the growth of online gambling? China isn't just building roads and bridges; it's laying the foundation for Africa's digital future. Chinese technology is delivering stable internet access and affordable smartphones to millions of people. This opens up vast business opportunities, and online gambling has emerged as one of the key verticals to benefit.

Thanks to growing internet accessibility and the rise of mobile payments — most notably M-Pesa in Kenya — online gambling is gaining serious momentum across the continent. And not only in countries where gambling is already legalized, such as South Africa or Nigeria, but also in markets with underdeveloped regulation. Chinese infrastructure investment is opening the door for the gambling industry, enabling it to grow even in the most remote corners of Africa. [7]

Why is online gambling growing?

  1. Rising internet penetration: According to GSMA, by 2025 over 40% of Africans will be connected to the internet — largely driven by Chinese investment. [8]
  2. Affordable mobile devices: Chinese smartphones from Tecno and Infinix, priced at an average of around $100, have enabled mass access to digital technology. [9]
  3. Mobile payments: In Kenya, for example, over 60% of the adult population uses M-Pesa, making transactions on online gambling platforms seamless. [10]

Countries with the highest potential for online gambling

1. Côte d'Ivoire 🇨🇮

China is actively investing in transport and energy infrastructure in Côte d'Ivoire. In 2018, Beijing allocated over $2.5 billion for the construction of bridges and the modernization of ports, including Abidjan — one of the largest ports in West Africa. In addition, Chinese companies are involved in railway and dam construction projects, which strengthens their influence over the country's economy. [11]

2. Cameroon 🇨🇲

Cameroon is a major recipient of Chinese loans. One of the most significant projects is the construction of the multipurpose Lom Pangar Dam, financed by China to the tune of $1.2 billion. Chinese companies are also building roads and railway lines, improving the country's transport infrastructure. In return, Cameroon has secured favorable terms for exporting oil and mineral resources to China. [12]

3. Burundi 🇧🇮

In Burundi, China plays an important role in the telecommunications sector and road construction. Chinese company Huawei is actively involved in modernizing mobile networks and improving internet access across the country. In road infrastructure, Chinese contractors are building key routes connecting Burundi with neighboring countries. [13]

4. Republic of the Congo 🇨🇬

In the Republic of the Congo, China is a key player in the oil and mining sectors. Beijing has extended loans totaling $2.1 billion for the development of oil fields and the improvement of transport infrastructure. Chinese companies are also constructing major highways and railways connecting extraction sites to ports, facilitating the export of mineral resources. [14]

5. Nigeria 🇳🇬

China is one of the largest investors in Nigeria, with a focus on telecommunications and energy. Chinese company Huawei has invested over $500 million in modernizing the telecommunications network. China is also investing in railway construction, such as the Lagos–Ibadan railway, valued at $1.5 billion, to improve domestic transport routes. [15]

6. Angola 🇦🇴

Angola is China's largest African trading partner, primarily driven by oil exports. China has extended loans exceeding $20 billion to support the country's post-civil war reconstruction. Key infrastructure projects include the construction of roads, railways, and housing, deepening Angola's economic dependence on China. [16]

7. Senegal 🇸🇳

In Senegal, China is actively involved in the construction of roads and sports facilities, including stadiums. In 2018, Senegal received $90 million for the construction of a major conference center, along with substantial loans for port modernization and transport network upgrades. All of this positions Beijing as a key economic partner. [17]

8. Burkina Faso 🇧🇫

China recently established diplomatic relations with Burkina Faso and has quickly moved to ramp up infrastructure investment, particularly in agriculture and road construction. Chinese loans and technology are expected to be actively deployed to modernize the agricultural sector and improve market access.

Chinese investment in these countries delivers significant economic benefits, but also places them in a position of debt dependency, amplifying China's influence over the domestic politics and economies of the region. [18]

9. Kenya 🇰🇪

China plays a pivotal role in Kenya's infrastructure development, particularly in transport projects. One of the most significant is the Standard Gauge Railway (SGR), valued at over $3.8 billion, linking the capital Nairobi to the port of Mombasa. This railway is a key component of China's Belt and Road Initiative. China has also invested in highway construction and the modernization of seaports. These projects are financed through Chinese loans, placing Kenya in a position of debt dependency. [19]

10. South Africa 🇿🇦

South Africa is China's largest trading partner on the continent. Beijing is actively investing in the country's mining and energy sectors. In particular, China has invested over $15 billion in mining companies such as AngloGold Ashanti, as well as in coal extraction and other natural resource projects. Chinese companies also play a significant role in building power plants, modernizing railways, and developing telecommunications networks. [20]

11. Ghana 🇬🇭

China is investing in several key sectors of Ghana's economy, including bauxite mining and transport infrastructure construction. In 2018, a $2 billion deal was signed under which China provides financing for road network development in exchange for access to bauxite reserves. Chinese companies are also involved in the modernization of ports and power grids. [21]

12. Uganda 🇺🇬

In Uganda, China is actively involved in infrastructure construction, particularly roads and hydroelectric power plants. One major project is the construction of the Karuma Hydropower Plant, valued at $1.7 billion and financed through Chinese loans. Chinese companies are also assisting in the modernization of telecommunications networks and improving internet access. [22]

Why did I go into such detail about these countries? — So you could see the scale of China's investments and the money currently flowing into the region. Of course, this helps develop infrastructure, but it also creates the risk of debt dependency, which will push an already impoverished population toward an even greater desire for quick gains — something that will only improve the prospects for online gambling in the region. (subjective assessment)

Conclusion: Colonization 2.0

Control over telecommunications, transport infrastructure, and dependence on Chinese loans are locking Africa into a subordinate relationship with Beijing, creating a new form of colonization. Meanwhile, the population remains largely undereducated, which means it will be highly susceptible to the straightforward approaches that tend to roll out across Tier-3 regions. Overall, Beijing's development and "colonization" of Africa is steering the region toward something resembling India — with endless traffic and problem gamblers.

Well, good luck to everyone — I hope you found this interesting. And I genuinely recommend that all of you keep a close eye on the international economic and political landscape. It will allow you to pivot to new realities faster and more effectively, or to analyze potential risks in advance and come out ahead.

Sources and References

  1. CGTN. "Graphics: How Belt and Road has impacted China-Africa cooperation."
  2. Reuters. "China's Belt and Road: A $300 Billion Investment in Africa."
  3. Business Insider Africa. "China pledges $51 billion in funding to Africa."
  4. Brookings Institution. "China's Debt Diplomacy in Africa."
  5. Institute of Developing Economies. "China's Telecommunications Footprint in Africa"
  6. African Affairs. "Negotiating China: Reinsert African Agency into China–Africa Relations."
  7. Ecofin Agency. "China-Africa trade sees growth despite imbalance."
  8. GSMA. "Internet Penetration in Africa by 2025."
  9. TechCrunch. "Affordable Smartphones from Tecno and Infinix in Africa."
  10. M-Pesa Official Site. "About M-Pesa."
  11. Business Insider Africa. "China boosts Abidjan port with $2.5 billion investment"
  12. Brookings Institution. "China invests heavily in Cameroon's infrastructure"
  13. The Africa Report. "Rise of Chinese surveillance tech in Africa: Development or espionage?"
  14. Reuters. "China's investments in Congo's infrastructure and oil sector"
  15. Huawei. "MTN Nigeria and Huawei Jointly Complete the Commercial Deployment of RuralStar 2.0"
  16. BBC News. "Angola and China's special relationship"
  17. Research Gate. "Chinese Soft Power in Africa: Case of Senegal"
  18. Financial Times. "China's growing agricultural influence in Africa"
  19. CNMega.
  20. BusinessTech. "Ramaphosa chasing Chinese investments"
  21. Bloomberg. "Ghana Seeks to Barter Bauxite for Roads, Bridges"
  22. Xinhua news. "Chinese-built Karuma dam transforms Ugandan energy sector"