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<img src='https://news.cgtn.com/news/2024-09-05/China-Africa-Mutual-interests-and-shared-goal-1wEhdRvMwda/img/c7b0fd33b7c147468769e1099531263b/c7b0fd33b7c147468769e1099531263b.png' alt='A floral decoration at the Forum on China-Africa Cooperation Summit in Beijing, China. /CFP'
Editor’s note: Dakkouni Btissam is chief representative at the Beijing representative office of leading pan African financial group Attijariwafa bank. The article reflects the author’s opinions and not necessarily the views of CGTN.
The Forum on China-Africa Cooperation (FOCAC) is a pivotal platform that has significantly enhanced high-level cooperation between China and African nations since its inception in 2000. Covering a wide array of topics from trade and investment, industrialization and health, to sustainable development, security, and cultural exchanges, FOCAC enables leaders from both regions to engage in strategic dialogue, assess the progress of joint initiatives and set the tone for future collaboration.
China-Africa relationship: Strengthening ties
China-Africa bilateral relationships, fostered through FOCAC, have become increasingly significant for the global economy. China has remained Africa’s largest trading partner for 15 consecutive years, with bilateral trade reaching approximately $282.1 billion in 2023, a remarkable increase from around $204 billion in 2018, while China’s stock of foreign direct investment in Africa exceeded $40 billion. Additionally, Africa has evolved into China’s second largest overseas contracting market, with Chinese companies undertaking projects worth over $700 billion in the last decade and generating revenues exceeding $400 billion.
This sustained growth underscores the economic importance of China-Africa relations not just for the involved regions but also for the global economy. The partnership transcends trade and investment; it encompasses job creation, infrastructure enhancement and industrialization across Africa.
Shifting paradigm: Multiple opportunities
Moreover, the dynamics of Chinese presence in Africa have experienced an inspiring transformation in recent years, moving towards a more diversified approach beyond infrastructure projects. Historically marked by a focus on large-scale infrastructure projects, this relationship is now evolving towards more balanced trade relations, industrial collaboration, active participation of private enterprises and the emergence of new sectors such as the agro-industry, renewable energy, health, and new technologies. This shift enables technology transfer, skills development and the establishment of manufacturing hubs within African countries, which are vital for creating jobs and enhancing local supply chains.
The changing landscape of China-Africa cooperation has not only fostered mutually beneficial partnerships and sustainable development initiatives but has also had a significant impact on the global economy as it not only drives economic growth but also promotes social development and environmental sustainability, aligning with global trends towards green development and inclusive growth.
FOCAC paves the way for a brighter future for both Chinese and African financial institutions.
The evolving dynamics in China-Africa relations along with global environmental challenges are expected to drive new initiatives in the financial sector through FOCAC. The focus could be on enhancing cooperation, fostering innovation, and promoting sustainability within the financial industry. The collaboration between Chinese and African banks is set to deepen, with a stronger emphasis on joint financing mechanisms like co-lending arrangements and syndicated loans. Innovative financing schemes will also emerge to fund projects in Africa, with both parties pooling their resources, expertise and risk. This collaborative approach aims to not only maximize the impact of investments but also facilitate knowledge exchange, best practices sharing, and mutual learning in the banking sector.
Efforts to promote the internationalization of the Chinese yuan may also gain momentum through initiatives supporting RMB transactions, trade settlements, and clearing and settlement systems in Africa.
Initiatives focusing on green projects, renewable energy, and environmentally friendly investments are expected to take center stage to drive sustainable economic growth and mitigate environmental risks. Green finance and sustainable banking practices will be emphasized, with a particular focus on integrating environment, sustainability and governance factors into financial decision-making processes.
<img src='https://news.cgtn.com/news/2024-09-05/China-Africa-Mutual-interests-and-shared-goal-1wEhdRvMwda/img/12f32578c0a247148df3d0e8844d8cd0/12f32578c0a247148df3d0e8844d8cd0.jpeg' alt='The welcome banquet for the 2024 FOCAC Summit held at the Great Hall of the People to welcome distinguished African and international guests, Beijing, China, September 4, 2024. /CFP'
China-Africa: Mutual interests and shared goal
Looking forward, the willingness of both China and Africa to open up to each other is evident through various initiatives and agreements that have been formed over the years driven by mutual interests and shared goals.
China’s Belt and Road Initiative (BRI) aligns with Africa’s own development plans, such as the African Union’s Agenda 2063, which seeks to promote regional integration, infrastructure development, and sustainable growth. Furthermore, the African Continental Free Trade Area, which aims to create a single market for goods and services across the continent, aligns well with the BRI.
African nations are eager to engage with China, viewing it as a vital partner in achieving their developmental ambitions, while China benefits from access to the continent’s rich resources, its vast opportunities and growing markets. This willingness to engage and collaborate is crucial for building a shared future and the FOCAC will continue to play an essential role in strengthening China-Africa cooperation, promoting economic growth and addressing developmental challenges across the continent.
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