FOCAC instrumental in driving Africa’s economic transformation

Chinese and African leaders are meeting in Beijing for the 9th Forum on China-Africa Cooperation (FOCAC). Established in 2000, FOCAC provides an enduring platform for inclusive dialogue and consultation, fostering solidarity and delivering broad-based economic development outcomes for the two sides. 

For Africa, the forum has facilitated the largest flow of investments, development financing, trade outcomes and cultural pollination, compared to any other partner country, in the past two decades.

It has distinguished itself from other summits by generating intermediary cooperation avenues such as China-Africa Poverty Reduction and Development Conference, China-Africa People’s Forum and the China-Africa Think Tanks Forum. 

This year’s edition convenes at a very important time. One, it will be the first face-to-face meeting after the Covid-19 pandemic. Two, many of the leading African economies—such as Kenya, Nigeria, South Africa, Egypt—have had presidential elections since the last Ministerial Conference of FOCAC. 

Three, China just concluded its third plenum, setting forward a number of reforms that will define its engagement at home and abroad as it races to fulfil a high quality of development targets in the next decade. FOCAC is, therefore, an opportune time to reflect on the gains in strengthening the Sino-African development partnership and the opportunities that can be tapped going forward.

In the past two decades, China and Africa have worked closely to countervail development challenges. China is Africa’s largest trade partner. Some 20 per cent of African exports goes to China, from where the continent sources 16 per cent of its imports.

China has also emerged as the biggest source of development financing, effectively constructing roads, railways, power plants and industrial parks, among other facilities, across Africa.

Looking forward, the bandwidth of China-Africa development cooperation remains elastic and FOCAC 2024 can set the right tune across some key areas.

Trade. Ahead of the meeting, the trade target of $300 billion set in 2021 has been met. More approaches to facilitate trade between the two sides should be reached with a focus on promoting more African agricultural exports to China.

Green energy transition. As the largest source of green technologies and products, many African countries are now looking to China to expedite adoption of renewables, which are abundant in the continent.

Similarly, Chinese companies have taken a great deal of time to fully understand the desires, economic capabilities and opportunities of African consumers. This has enabled their Chinese partners in the energy sector to tailor the solutions that meet the needs and expectations of African consumers at state, firm and even family level.

Development financing. Africa’s infrastructure funding gap still stands above $100 billion annually. This provides an opportunity for Chinese investors to power Africa’s productive sectors, utilising more progressive approaches such as public-private partnerships. 

Investments. China has the most comprehensive value chains while Africa is the most promising investment frontier. With abundant natural resources, skilled and youthful population, Africa is ready for an industrial revolution. 

Cultural amity. Both civilisations should strengthen exchanges and forge closer strategic friendships, understanding and political cooperation. Such partnerships should involve young people, on whose strength, talent and innovation the future of Sino-Africa ties rests. 

As the strongest anchor of global economic wellness, what happens in China has implications for the entire world.

This is particularly important for developing countries, which increasingly see China as a pace setter in inclusion, equity and common prosperity.

Dr Cavince (PhD) is a scholar of international relations with a focus on China-Africa development cooperation. @Cavinceworld