China and Africa: Cooperation since 2000
‘China wishes to deepen its cooperation with African countries in industry, agriculture, infrastructure, trade and investment.’ “We stand side by side to firmly defend our legitimate rights and interests”. Xi Jinping
Firstly, it all began at the Bandung Conference in Indonesia in 1955. China declared its support for Africa in its fight against imperialism, colonialism and all other forms of Western hegemony. It was a position that was, to say the least, anodyne, given that we are in the middle of the Cold War. All of this came to fruition with the launch of the Chinese and African Cooperation (FOCAC) in October 2000. An initiative that underlines the importance of relations between China and Africa. This cooperation refers to economic, political and diplomatic relations between China and African countries.
Moreover, they meet s regularly to define the direction of this cooperation. Otherwise known as FOCAC, this cooperation covers several areas, including investment in infrastructure, trade, agricultural and industrial cooperation, technology transfer, development aid and cultural and educational cooperation. To compare trade progress, between 2000 and 2007, trade between China and Africa was estimated at 70 billion dollars. Today, in 2024, the figure is 166.3 billion. This trade remains unbalanced. With China exporting 97.6 billion dollars worth of finished products, while Africa exports mainly raw materials worth 68.7 billion dollars.
The China-Africa Summit of the 5th and 6th September 2024
First, On 5 September 2024, Beijing welcomed some fifty African leaders. A warm welcome followed by speeches and an opening banquet. ‘As an African proverb says, a friend is someone with whom you share the road. Let us join hands to create a bright future of peace, security, prosperity and progress. ’ declared Xin Jin Ping.
Then, this African proverb refers to human relations, which are often perceived through the primacy of sharing, mutual accompaniment and support. With this quote, the Chinese President is emphasising the values of solidarity, mutual aid and long-term camaraderie. Indeed, ‘path’ here refers to a shared life or journey in achieving goals. Also a shared experience in which each plays a part in the journey of the other. He emphasises this solidarity with ‘let’s join hands’, a metaphor for cooperation. The Chinese President also seeks to reassure by mentioning peace and security, the foundations of sustainable development.
In addition, China has pledged $50 billion, or around €45 billion, for the development of the African continent. Beijing has been increasing its investments in Africa over the past twenty years. Hundreds and thousands of Chinese workers and engineers going there to build new infrastructures. Also gain privileged access to the natural resources of the African subsoil. New agreements were signed at the summit, notably in the fields of mining, transport and renewable energy.
‘Africa, home to some of the world’s most dynamic economies. Can maximise the potential of China’s support in sectors ranging from trade and data management to finance and technology.’ pronounced Antonio Guterres, UN Secretary General, on September 5th, 2024.The Secretary General made a number of key points. He mentions the idea that Africa has the potential for growth and innovation thanks to China, which is ready to lend its support. He mentions the trade between the two countries, which could be an opportunity for African businesses to grow.
Fianlly, he mentions the modernisation that China could also bring to African states. Indeed, improving the system of digitisation and data analysis is important. This could be beneficial for public services, health services and education. Also, China could offer innovative financial solutions. Thanks to advanced technologies, to meet the needs of a young and connected population. China and Africa hope to achieve ‘win-win’ results. ‘China-Africa relations are enjoying their best period in history’ , says Xi Jin Ping.
Why Africa?
To begin, Africa is the continent most endowed with natural resources. The continent covers around 6%t of the world’s surface area. Moreover, Africa is rich in raw materials such as oil in Nigeria, Angola, Libya and Algeria. Nigeria was Africa’s first oil producer and one of the world’s largest exporters. Then there’s gas, a very important resource, is present in Algeria, Mozambique and Egypt in particular. Also, let’s no forget precious minerals such as gold in South Africa, Ghana and Mali. Diamonds and platinum are used in industry, particularly for technologies to reduce polluting emissions. Africa also possesses strategic and rare metals such as cobalt, an essential metal for the manufacture of lithium-ion batteries used in electric vehicles and electronic devices.
Furthermore, the Democratic Republic of Congo is the world’s largest producer of cobalt. In terms of agricultural resources, it should be emphasized that Africa has a great deal of arable land. Indeed, a variety of crops are grown there, including coffee, tea and cocoa. What’s more, freshwater has real hydroelectric potential for energy production. These freshwater reserves are essential for agriculture. The Nile, the Congo and the Zmbèze offer this potential for energy production. We can also talk about solar energy, which the Sahara offers the opportunity to produce.
Is this a win-win situation for both parties?
We can list several advantages that this cooperation could bring to China. Firstly, in terms of natural resources, thanks to Africa, China will be able to secure its supply of raw materials for its industry. Trade will therefore be possible thanks to China’s investments, which will make it Africa’s main partner. However, infrastructure projects financed by China often benefit the Chinese companies that build them. To give you a clearer idea, more than 2,200 Chinese companies are currently operating in African countries.
Then, from a more strategic and geopolitical point of view, china will also be able to strengthen its diplomatic weight on the African continent and influence the policies of the continent. Furthermore, investment in Africa is part of China’s wider Belt and Road initiative. This project aims to develop infrastructure and trade links on a global scale.
Finally, from Africa’s point of view, china is enabling it to build essential infrastructure such as roads, bridges, railways, hospitals and schools. For example, the railway linking Ethiopia and Djibouti, which was financed by China, facilitates the export of goods. In Angola, Chinese investment has enabled thousands of kilometres of roads to be built.
Inconveniences for Africa
However, in order to implement all these measures, Africa is in considerable debt to China. African countries account for half of the fifty nations most indebted to China. African countries borrowed around $143 billion from China in the form of government and commercial loans between 2006 and 2017. The problem is that it is difficult to get out from under this debt and pay it off. States can find themselves in a debt spiral. To take a concrete example, in 2020 Zambia asked China to rebuild its $11 billion debt.
To do this, China asked that all the arrears be cleared; a request that Zambian President Edgar Lungu did not have the means to oppose. These include unpaid debts owed by the Zambian government and the state-owned electricity company ZESCO, amounting to around 1.7 billion dollars. Zambia has not been able to honour its debt payment commitments. This situation that has led the country to seek a restructuring of its debt to include the accumulated arrears.
Even so, it is difficult to draw general conclusions about the imbalances created in each country since data on Sino-African negotiations is kept secret.A McKinsey study found that 89% of the 1,000 Chinese companies in the 8 African countries benefiting most from Chinese labor-intensive investment were African-owned.
In conclusion, while Sino-African cooperation offers considerable opportunities, it requires careful management to avoid Africa becoming too dependent economically and diplomatically.
