China, Africa enjoy broad economic, trade cooperation prospects

Economic and trade cooperation between China and Africa has been continuously expanded since the establishment of the Forum on China-Africa Cooperation in 2000, covering areas such as capital, technology, development experiences, and infrastructure, demonstrating bright prospects.

Trains park on the track at the Mobolaji Johnson Railway Station of the Chinese-built Lagos-Ibadan railway in Lagos, Nigeria, on June 10, 2021. (Xinhua/Emma Houston)

China-Africa economic and trade cooperation remains stable with positive momentum, following steady progress in infrastructure, energy, investment, and industrial park building, among other areas, Zhang Yongpeng, a researcher at the Institute of West Asian and African Studies under the Chinese Academy of Social Sciences told People’s Daily Overseas Edition.

China’s direct investment in Africa has grown by an average of more than 25 percent annually since 2000, according to a report on Chinese companies’ investment in the continent, which was released on Aug. 26 by the China-Africa Business Council.

Despite the COVID-19 pandemic, China’s investment in Africa increased from $2.71 billion in 2019 to $2.96 billion in 2020, the report said.

Secretary-General of the African Continental Free Trade Area (AfCFTA) Wamkele Mene recently noted that Chinese companies’ investments, especially into the infrastructure sector, have made huge contributions to the building of Africa’s connectivity and the AfCFTA.

Chinese companies’ investment in Africa is a win-win, and high-quality China-Africa cooperation in investment can be expected in the future, commented China’s foreign ministry spokesperson Wang Wenbin on Aug. 30.

Wang said China and Africa are highly complementary in development strengths, while resource allocation is significantly more efficient through China-Africa cooperation.

Africa, with rich resource endowments and a huge demographic dividend, is seeing accelerating urbanization and a burgeoning manufacturing sector, Wang noted, adding that the investments by Chinese companies in Africa are conducive to strengthening global industrial chains and facilitating exports from both sides.

China enjoys strengths in capital, technology and development experience, which are necessary for Africa to have sound momentum for continued economic growth, Zhang Yongpeng said, noting that respective strengths are a major reason behind the steady development of China-Africa economic and trade cooperation.

Zhang said a long tradition of economic and trade cooperation and the deployment of specific development strategies, such as 10 cooperation plans and eight major initiatives, have guaranteed the steady development of China-Africa economic and trade cooperation.

Bilateral economic and trade cooperation is also underpinned by the China-Africa comprehensive strategic and cooperative partnership and the goal of building an even stronger China-Africa community with a shared future, the researcher said.

Meanwhile, China-Africa economic and trade cooperation offers up major opportunities in mid-to-high-end technology manufacturing, medical and pharmaceuticals, the digital economy and other areas, Zhang noted, suggesting that China and Africa need to seize the opportunity to work together for mutual benefits and shape a brighter future.