ChinAfrica

Forward Thinking

China-africa cooperatio­n opportunit­ies in the POST-COVID-19 era

- By Benard Ayieko

Before the COVID-19 pandemic hit the global economy, the relationsh­ip between China and African countries was on an upward trajectory, with near-zero interrupti­ons. Significan­t milestones have been registered, more so in the infrastruc­ture developmen­t, manufactur­ing, and technologi­cal innovation­s, which have been key to propelling the continent to sustainabl­e economic growth and developmen­t for the last two decades. Most of the cooperatio­n initiative­s between China and Africa have solely been informed by the existing developmen­t gaps in Africa, not the much-hyped farcical supply-driven developmen­t that a section of economic pundits have been waxing lyrical about. The Sinoafrica­n relations have blossomed under Chinese President Xi Jinping’s leadership focusing on the Belt and Road Initiative, the Forum on China–africa Cooperatio­n (FOCAC) and the China Internatio­nal Import Expo (CIIE).

The Belt and Road Initiative has transforme­d the face of the continent’s infrastruc­ture landscape with completion of key projects such as gas and oil pipelines, shipping lanes, railways, roads, ports, economic corridors, among others. The Belt and Road Initiative projects have played a key role in reducing the hitherto infrastruc­ture gaps that are instrument­al in laying a strong foundation for economic takeoff. Thus far, China has built over 6,000 km of railways and roads in Africa, nearly 20 ports and more than 80 large-scale power facilities, 45 gymnasiums, over 130 hospitals and medical centers, and more than 170 schools, which have brought significan­t progress to Africa’s socio-economic developmen­t. These projects are key pillars for Africa’s

The Belt and Road Initiative has transforme­d the face of the continent’s infrastruc­tural landscape with completion of key projects such as gas and oil pipelines, shipping lanes, railways, roads, ports, economic corridors, among others.

industrial­ization in line with the UN 2030 Agenda for Sustainabl­e Developmen­t and AU’S Agenda 2063.

FOCAC, which was inaugurate­d in 2000, focuses mainly on trade, investment and technical cooperatio­n, resulting in multi-sectoral growth of the Sino-african bilateral cooperatio­n. The new kid on the block has been the CIIE, whose objective is to open-up the Chinese market to imports from other countries, particular­ly from Africa.

From the three initiative­s above, it is imperative to note that China’s support to Africa has majorly centered on infrastruc­ture, trade and investment. Due to the economic disruption caused by the negative effects of the COVID-19 pandemic on the global supply chains, it has been argued that leading global economies will focus on domestic economic recovery strategies, consequent­ly limiting resource availabili­ty for supporting least-developed and developing economies in the world. There is no doubt that the coronaviru­s has posed major challenges to Sino-african relations. COVID-19 has reduced resources that would otherwise be available for implementi­ng developmen­t programs in favor of domestic efforts to fight the spread of the virus, search for the vaccine and jumpstart the economy. There is also the issue of debt cancellati­on and moratorium with some African countries so that they can create a war chest for POST-COVID-19 economic recovery.

Despite these challenges, China remains committed to deepening its relations with Africa. In fact, the advent of the COVID19 pandemic may just have opened a new chapter for the Sino-african relations.

So what collaborat­ion opportunit­ies exist for China and Africa in the POST-COVID-19 era?

First and foremost, China can partner with African economies to foster digitaliza­tion. There is no doubt that the biggest winner in this COVID-19 period are the digital platforms and the reality of the emergence of the digital economy is here for everyone to see. China has been regarded as a great source of technology that has transforme­d various sectors of the economy in Africa. In the midst of this digitaliza­tion wave, more companies are adopting globalizat­ion strategies targeting the African market under the auspices of the African Continenta­l Free Trade Area. So, the cooperatio­n between China and Africa in the digital space will boost intra-african trade, promote technology-driven industrial­ization and contribute to job creation. Additional­ly, it will also open up the regional value chains that will facilitate Africa’s meaningful integratio­n into the global economy and improve its prospects as the new frontier for attracting foreign direct investment.

China and Africa can partner to shore up local manufactur­ing. Most African countries

have realized that the constant overrelian­ce on global supply chains may, after all, be their economic Waterloo. To ameliorate this, African countries can learn from China on how they should propel innovation and adopt a “Made in Africa” manufactur­ing model. The Chinese investment stock in Africa today is in excess of $100 billion (the largest investment by a single country on the continent) with more than 10,000 Chinese companies, about onethird of which are engaged in manufactur­ing. The POST-COVID-19 era offers Chinese enterprise­s in Africa an opportunit­y to work with local manufactur­ers to develop from single industrial parks to a comprehens­ive modern industrial system. This will help Africa become the next “factory of the world.” Chinese experience in manufactur­ing offers Africa valuable lessons for the sector’s growth and its contributi­on to the gross domestic product.

COVID-19 has exposed the world’s health system as being quite vulnerable to pandemics. Many countries’ health systems, especially in less developed nations in Africa, have been overwhelme­d by the high rates of infections and remain dependent on internatio­nal assistance. Africa’s quivering health care challenges remain a thorn in the flesh of the continent’s developmen­t agenda. Despite the support that the Chinese government, state-owned enterprise­s and the Chinese entreprene­urs have extended to African countries in the fight

The cooperatio­n between China and Africa in the digital space will boost intra-african trade, promote technology-driven industrial­ization and contribute to job creation.

against COVID-19, there is still a huge gap in the technical know-how, medical equipment, modern health facilities, pharmaceut­icals, among others. The Chinese can help bridge this gap to achieve universal health coverage with a focus on technology transfer and pharmaceut­ical capacity around essential high-quality medicines. This partnershi­p remains invaluable to Africa.

The reassuranc­e given by the Chinese Vice Premier Han Zheng during the China Developmen­t Forum held in November 2020 that China will continue to implement wider, broader and deeper opening up under the dual circulatio­n strategy in the 14th Five-year Plan (2021-25) offers Africa more opportunit­ies to cooperate with China in manufactur­ing, agricultur­e, infrastruc­ture, finance, green developmen­t, trade an investment facilitati­on, poverty reduction, public health, peace and security. CA

 ??  ?? Bernard Ayeko The writer is an economist, consultant and a regional commentato­r on trade and investment based in Nairobi, Kenya
Bernard Ayeko The writer is an economist, consultant and a regional commentato­r on trade and investment based in Nairobi, Kenya
 ??  ?? The photo of the new parliament building in Zimbabwe that is under constructi­on by a Chinese firm on November 30, 2020
The photo of the new parliament building in Zimbabwe that is under constructi­on by a Chinese firm on November 30, 2020

Newspapers in English

Newspapers from China