Upgrade, elevate the China-Africa cooperation
President William Ruto and First Lady Rachel Ruto are received at the Great Hall of the People during a State banquet hosted by President Xi Jinping for visiting Heads of State and government in Beijing, China, on October 17, 2023.
There is a need for a strong African-led engagement with China to help break the cycle and pattern of the continent’s marginalisation in the world economy, including trade, renewable energy production and investments.
More should be done to accelerate the opening up of new prospects for China-Africa cooperation, expand trade and investment, share experience on poverty reduction, strengthen cooperation on digital economy and promote entrepreneurship by young Africans and the development of small and medium-sized enterprises (SMEs).
Besides, China and Africa should work together to promote green development. In the face of climate change, a major challenge to humanity, they need to advocate green and low-carbon development, actively promote solar, wind and other sources of renewable energy, work for effective implementation of the Paris Agreement on climate change and strengthen capacity for sustainable development.
China has remained Africa’s largest trading partner for 13 years in a row. Two-way trade in 2022 is expected to exceed $260 billion. Once again, its imports from Africa grow faster than the exports. Fifty-two African countries and the African Union Commission have signed Belt and Road cooperation documents with China, which has continued to support Africa to bridge the infrastructure gap.
Last year, China granted zero-tariff treatment to the six least-developed countries (LDCs) in Africa, pushing the list to 27 African countries that enjoy such deals. That will bolster China-Africa trade.
Need each other
China and Africa need each other. According to the IMF’s latest forecasts, overall economic growth across Africa will outpace the rest of the world and African countries will account for 60 per cent of the 10 fastest-growing economies globally in 2024 and 2025.
With steady progress under Agenda 2063 of the African Union (AU), and the African Continental Free Trade Area (AfCFTA), and growing coordination among the subregional groups, Africa is becoming an important pole with global influence.
The AfCFTA provides a new and mutually beneficial framework for China-Africa engagement. It is expected to catalyse competitive value chains across the continent. At least 44 of 54 signatory countries have ratified the agreement.
The Made in Africa Secretariat of the AfCFTA has identified four key sector priorities for increased cross-continental trade—agro-processing, automotive, pharmaceuticals, and transportation and logistics—to initiate and accelerate this process.
It is incumbent for China to invest and engage more with Africa and open its doors and lower its tariffs and make trade more profitable for African countries and firms. Africa needs greater access to the gigantic Chinese market.
Africa should endeavor to move up value chains and produce more “Made in Africa” good-quality end-products. And that must happen in every sector—from producing tea bags to fashion and toys to vehicles and wind turbines on the continent.
Mr Obonyo is a public policy analyst. [email protected].
