China embraces opportunity to be a partner in Africa's development

By Reuben Kyama

China has become an important partner to many emerging economies around the world, and particularly in Africa. For a long time, African countries relied on Western partners, especially their colonial masters – Britain, France, Belgium, and Germany – along with Canada and the United States to advance their development agenda. But in recent years, growing China-Africa relations have largely reversed the continent's over-reliance on Western powers.

According to a leading American policy think-tank, recent developments in the global economy, especially Brexit and the Trump administration's "America First" policy, are likely to impact on relations between African nations and their Western allies. At the same time, there are more opportunities for China to invest in Africa, and for China to strengthen its role in and relationship with the continent.

In an effort to boost trade partnerships in Africa, China gave more than 86 U.S. billion in commercial loans to African governments and state-owned entities between 2000 and 2014, according to data published by the Johns Hopkins School of Advanced International Studies.

Chinese State Councilor and Foreign Minister Wang Yi (L) meets with South African President Cyril Ramaphosa (R) in Pretoria, South Africa, June 3, 2018. China and South Africa on Sunday agreed to further strengthen bilateral cooperation in face of a complex and changing international landscape. [Photo: Xinhua]

Moreover, China's 'no-strings attached' policy towards African countries has won praise among many African leaders. "President Ramaphosa said the re-election of President Xi presented an opportunity for South Africa to deepen its strategic and historic political, economic, social and international cooperation with China at a personal, bilateral, regional and global level," said the office of the South African president back in March.

The recent announcement by China's Foreign Ministry spokesperson Hua Chunying that Foreign Minister Wang Yi will visit South Africa to attend a BRICS foreign ministers' meeting further strengthens the trade partnership between China and Africa. BRICS is an association that brings together the five major emerging economies: Brazil, Russia, India, China, and South Africa. As South Africa prepares to host the 10th BRICS Summit, President Ramaphosa has said he looks forward to meeting the President Xi Jinping in July.

Addressing criticisms of the role of China in the continent, Nambia's President Hage Geingob, who recently visited Beijing, disputed claims that China is colonizing Africa. He noted that the growing cooperation between the two sides has been mutually beneficial. "We are mature, we can choose our friends, we can choose what we want for, and what's good for us," the Namibian leader was reported as saying by Xinhua. This was a sentiment echoed by Nigerian President Muhammadu Buhari when he applauded the re-election of President Xi.

And Zhuo Wu, the chairman of the Kenya China Chamber of Commerce, says investment by Chinese companies in Africa aims to support the region's economies to meet their development goals. "Chinese companies have the resources to invest in affordable housing, large and small scale irrigation dams, and agribusiness to ensure that the continent attains food security; it also invests in the health sector to ensure that African countries provide universal health care for all their citizens," Zhuo added.

For example, in Kenya, China became the leading source of goods in 2015. Key imports include heavy machinery – locomotives, trucks, caterpillars – along with electronics, garments and footwear.

To increase trade investment and extend its global influence, China's Belt and Road initiative aims to create a modern Silk Road Economic Belt and a 21st Century Maritime Silk Road to boost trade and extend its global influence. Guo Ce, an economic and commercial counsellor at China's embassy in Kenya, says China's investments in Africa are in line with its ambitious initiative to create a network of railways, roads, pipelines, and utility grids that link with China and improve trade across the world.

Analysts say China's expansion across the continent has been increasing significantly – from trade to minerals extraction to manufacturing. Global consulting firm McKinsey & Co. estimated that Chinese companies are responsible for 12 percent of the continent's industry, with a value of around 500 billion U.S. dollars.

In 2012, China became Africa's largest trading partner and U.S.-Africa trade began to decline, as the United States made a sharp turn away from African oil imports towards domestic production. Jobs created by Chinese foreign direct investment (FDI) in 2016 doubled from the year before and are more than triple the number created by American investment.

China's investment in Africa is focused in three priority areas: industrialization, agriculture, and infrastructure. This includes the establishment of industrial parks that will help attract investors.

China has also, according to Brookings, put an emphasis on developing industrial partnerships and industrial capacity cooperation, committing to facilitate Chinese private investment, provide technical assistance, and train at least 200,000 local workers. An example of this investment can be found in Ethiopia, where China has completed construction of the 250 million U.S. dollar Hawassa Industrial Park in 2016.

In Kenya, China's prominent projects include the 50-kilometer, eight-lane highway linking Nairobi to Thika, as well as the 609-kilometer railway linking Nairobi to the coastal city of Mombasa. And China's Guangdong New South Group started the country's first private industrial park in Uasin Gishu in July 2017 with an investment of 2 billion U.S. dollars. This park will be an important component for Kenya's Zhujiang Special Economic Zone, which is partially inspired by China's economic zone development model.

As the preparatory foreign ministerial meeting opens in Johannesburg in the next few days, it is important to note the theme of this year's BRICS Summit: "BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution". The theme reflects the core priorities of each of the BRICS members, notably that of striving towards the creation of an inclusive society and the creation of global partnerships that will bring prosperity to all humankind.

(Reuben Kyama is a freelance journalist based in Nairobi.)