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China’s contribution to Africa’s economic growth exceeds 20% in successive years Economy and trade is one of the most active factors

Released on:2021-05-21 Views:

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After freighters arrived at Lamu Port on May 20, the staff is unloading the cargo.  Picture Source: Xinhua News Agency

 

On May 20, two freighters successfully docked at Lamu Port, marking the official opening of berth No. 1 of the Kenya Lamu Port project undertaken by China Communications Construction Company Limited; a few days ago, the 225kV mobile substation in Côte d’Ivoire, which was contracted by Sinomach, was successfully put into operation; recently, the second-phase channel of the Cameroon Kribi Deepwater Port, which was contracted by China Harbor and constructed by CCCC Fourth Harbor Bureau, was officially put into use; on May 12, Sinoma Construction and Wilmar International signed a general contract for the steel structure tender section of the South African Greenland Edible Oil Plant Project...

 

China-Africa cooperation has become a model for South-South cooperation and for international cooperation with Africa. With the accumulation of the years, the fields and achievements of China-Africa cooperation have continued to expand and enrich.

 

China-Africa economic and trade exchanges become the most active factor

 

In the 20 years since the establishment of the Forum on China-Africa Cooperation (FOCAC), China and Africa have successively formulated and implemented the "Ten Major Cooperation Plans" and "Eight Major Initiatives". The bilateral trade volume has increased by 20 times, China's direct investment in Africa has increased by 100 times, and the total number of sister cities has reached 150. According to Globe Magazine, China has become Africa's largest trading partner for 11 consecutive years and has contributed more than 20% to Africa's economic growth in successive years.  A large number of new flagship projects such as the AU Conference Center and Office Complex, the Addis Ababa-Djibouti Railway, and the Mombasa-Nairobi SGR have been completed and put into use in Africa. China-Africa cooperation in the fields of science, education, culture and health, non-governmental exchanges, and peace and security has developed comprehensively.

 

China-Africa economic and trade exchanges are undoubtedly one of the most active factors.

 

The first China-Africa Economic and Trade Expo, with Africa as the protagonist, attracted 53 African countries and international organizations such as the United Nations Industrial Development Organization (UNIDO), World Food Programme (WFP), World Trade Organization (WTO) and African Union (AU), becoming an important window to witness economic and trade cooperation between China and Africa. During the Expo, 84 cooperation documents were signed, including intergovernmental cooperation agreements, financing agreements, investment agreements, business contracts, memorandums of cooperation, etc., covering trade, investment, infrastructure, agriculture, manufacturing, aviation, tourism and other fields, with a total value of USD 20.8 billion.

 

The first three CIIEs attracted more than 450 companies from nearly 50 African countries, with an exhibition area of 13,000 square meters. African specialties such as Kenyan coffee, South African national treasure tea, and Zambian honey were favored by Chinese consumers.

 

The situation of China-Africa economic and trade cooperation in 2021 is gratifying

 

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The online promotion conference for African countries of the 4th China International Import Expo (CIIE). Picture Source: CCTV News

 

From January to March, 2021, China-Africa economic and trade cooperation rebounded strongly. The bilateral import and export trade volume reached USD 52.1 billion, a year-on-year increase of 27%; investment and cooperation on infrastructure achieved positive growth.

 

On April 28th, the online promotion conference for African countries of the 4th China International Import Expo (CIIE) was held. Relevant business associations and hundreds of business representatives from 16 African countries including Angola, Namibia, Mozambique, and Zambia participated online at the same time.  It is reported that the 4th CIIE will continue to be held offline in Shanghai as scheduled from November 5-10, 2021.

 

From September 26 to 28 this year, the second China-Africa Economic and Trade Expo will be held in Changsha, Hunan. At present, all preparations for the Expo are in full swing. Works including project development and docking, merchant invitation, cloud exhibition, and case collection have been fully rolled out.  He Baoxiang, vice governor of Hunan Province, said that Hunan will be a good host, and will make the Expo unique, effective, and well-known to better serve the overall situation of China-Africa cooperation.

 

Great opportunity for China-Africa cooperation has arrived

 

On January 1, 2021, the free trade agreement (FTA) between China and Mauritius came into force, which marks the first FTA between China and an African country. Since then, in terms of trade in goods, China and Mauritius have pledged to eventually reach zero tariffs on 96.3 percent and 94.2 percent of tax items, respectively. In terms of trade in services, both sides have committed to open more than 100 subsectors. In terms of investment, this is the first time that our country has upgraded the original investment protection agreement with an African country.

 

Recently, the Secretary General of the African Continental Free Trade Area, Wamkele Mene, said in an exclusive interview with a reporter from Xinhua News Agency, “China is a strong partner of Africa and the largest investor on the African continent.  In the past 10 years, China has provided important development and investment support to Africa. "

 

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Picture Source: Xinhua News Agency

 

Mene believes that with the official launch of the African Continental Free Trade Area on January 1 this year, it will provide an "unprecedented" opportunity for further cooperation between China and Africa.  In the past, if Chinese investors wanted to invest in many African countries to obtain economies of scale, they had to face the different procedures and regulations of each country; today, they only need to invest in a country that belongs to the African Continental Free Trade Area, "so they can enter the entire African economic value chain and countries that have approved the Free Trade Area agreement."

 

Further Reviewed by: Zhao Yuhui and Jiang Yongfeng

Reviewed by: Chen Jue

Edited by: Hu Tian


Source: CAETE