China-Africa relations made global headlines in Beijing at the 9th Forum on China-Africa Cooperation (FOCAC) held September 4-6, 2024. With the theme “Joining hands to advance modernisation and build a high-level China-Africa community with a shared future,” the forum is held every three years and gives China a platform to showcase its influence. For African nations, it provides an avenue to meet and discuss policies and cooperation agreements with the continent’s biggest lender and investor.
Indeed, it has become the most important event on the African international relations calendar as more African leaders attend FOCAC than the United Nations General Assembly. Data shows that the forum attracted over 50 African heads of state and government, far more than any other regular summit with a single country. The U.S.-Africa Leaders Summit in December 2022 was attended by 45 heads of state and government and 49 countries, but it is far less frequent. The previous one was in 2014.
There have been symbolic benefits. Since the 8th 2021 China-Africa Dakar summit, Kenya has become the largest exporter of flowers to China, with annual exports valued at US$800 million; and through the promotion of e-commerce, Ethiopian coffee is being exported to China. In addition, through the China-Africa Peace and Security Fund, African Peace and Security architecture has benefitted from Chinese finance and equipment.
But China has reaped bountifully as it has a platform to serve its own broader ambitions as the continent’s voting power of 54 nations in international affairs is of importance to it. For Africa, FOCAC has led to big promises which outweigh anything that can be promised by other partners in one sitting.
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Through it, China has delivered tens of billions of dollars in aid, investment and loans to Africa with $60 billion disbursed from the summits of 2015 and 2018, and $40 billion in 2021.
In this year’s summit, though China stopped short of providing the debt relief sought by some African countries, it pledged $50.7 billion over three years in credit lines and investments, an increase of 27% from 2021.
According to a study by the Boston University Global Development Policy Centre, China granted $4.61 billion in loans to African governments in 2023. This figure is up from 2022 but far from the $28 billion granted in 2016 when Chinese investment was at its highest.
Because of these loans, China holds about 60 per cent of Africa’s bilateral debt, but its share of sub-Saharan’s total sovereign debt remains relatively low, at about six per cent.
Generally, Africa’s bane and minimal voice even with China during such meetings, is due mostly to the multiplicity of African states and their competing needs and the African Union’s (AU) weakness. This explains the absence of a unified strategy to make any relationship work in its favour. Clearly, it has not shown any concerted strategy for its engagement with China.
We at Daily Trust therefore call on African states to produce a comprehensive, unified policy document which indentures their strategic interests and how they align with the partnership with China instead of the present cacophony of voices and interests resulting in individualised and haphazard pursuit of common goals.
Towards this, there must be genuine strategic partnership, with the AU Commission leading and setting the overall direction in these forums, working to implement the rebalancing of relations towards China’s participation in the continent’s industrialisation.
Unlike Africa, China published its first African Strategy in 2006. This was followed up in 2015. At the 2021 FOCAC, one of the four documents adopted was the 2035 Vision for China-Africa Cooperation.
With China’s dependence on the continent’s vast mineral resources and other raw materials for its booming production lines, Africa has not leveraged much from its strategic value. Its relationship with China has not been handled in a concerted proactive posture.
The result is the imbalanced terms of trade, with China enjoying a trade surplus of US$64.1 billion as of 2023 and still seemingly growing (having been at US$46 billion the previous year and US$42 billion in 2021).
We also call for technology and skills transfer from China to Africa as the local populations mainly participate only in manual labour and government oversight of projects in constructing railways, airports, harbours, bridges, and information and communication technology infrastructure.
Moreover, we urge China to move its investments in Africa beyond oil and extractive commodities to industrial production, job creation and investments that lead to exports. The present partnership revolving around the trajectory of largely exporting raw minerals and agricultural goods to China while receiving advanced manufactures such as electronics, machinery and vehicles must stop.
Most importantly, Africa should take a second look at implementing China’s anti-corruption philosophy and refocusing on the synergy between government and business. The unbridled western model of privatisation of state enterprises has not favoured Africa. Meanwhile, the Chinese have been heavily involved in all aspects of the economy, and successfully too. There is a need for African governments to refocus and get involved in businesses, through the Chinese model.
We also call for review of the terms and conditions of all loans, and more transparency in all affairs between Africa and China that will be mutually beneficial, and not one-way.
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