ThephototakenonJune10showsabridgebuiltbyChinaRoadandBridgeCorp.inBrazzaville,capitaloftheRepublicoftheCongoWANGTENGThe10thBRICSSummit,concludedinJohannesburg,SouthAfricathisJuly,onceagainbroughttopublicattentionthekeywords“industrialrevolution”and“industrializationinAfrica”withitstheme“BRICSinAfrica:CollaborationforInclusiveGrowthandSharedProsperityintheFourthIndustrialRevolution.”TheFOCACBeijingSummitinearlySeptemberfurtherrelatesthefuturedevelopmentofChinatothatofAfricancountrieswiththetheme“China-Africa:TowardanEvenStrongerCommunitywithaSharedFuturethroughWin-WinCooperation.”
CanAfricabecomethenext“worldfactory”?Isitpossibletoturnitsresourceendowmentsintoadvantagesforthedevelopmentof“MadeinAfrica”?WhatrolecanChina-AfricaindustrialcapacitycooperationplayinAfrica’sindustrialization?TheseareallimportantissuesrelatedtothedevelopmentofAfrica.
IndustrializationinAfrica
Industrializationisanimportantfoundationformodernizationandtheinevitablewayforacountrytodevelopitseconomy.Despiteitsabundantnaturalresourcesandlargeyoungpopulation,Africahasbeenonalongandtortuouspathtoindustrializationduetoitslongcolonialhistoryandundiversifiedeconomicstructure.WithindustrializationlevelsremaininglowinmostAfricancountries,Africaasawholeisattheprimarystageofindustrialization,withitsindustrialoutputvalueaccountingforlessthan3percentoftheworld’stotal.AccordingtothestandardsgiveninareportreleasedbytheUnitedNationsIndustrialDevelopmentOrganizationin2014,thereisnoindustrializedcountryinAfrica.Mauritius,SouthAfricaandTunisiaaretheonlyonesemergingtobeindustrializedcountries,andtherestareeitherdevelopingorunderdevelopedindustrialeconomies.
IndustrializationhasbeenanimportantgoalofAfricancountriessincetheirindependence.Itisbelievedtobeawaytogetridoftheireconomicdependenceontheirformercolonizersandrestructuretheireconomiestobemoreindependent.Althoughtheyhavenevergivenupexploring,theirindustrializationisslow-pacedandfacingseriouschallengesasaresultofintertwinedeffectsofdomesticandinternationalfactors,suchasthevolatileinternationalmarketandtheirdeficientpolicymakingandimplementation.
Sincethebeginningofthe21stcentury,Africancountrieshavebeenengaginginindustrializationwithevenmoreenthusiasmasaresponsetoeconomicglobalization.TogetherwiththeAfricanUnion(AU),theyhavedevelopedkeystrategicplansfordevelopment,suchastheNewPartnershipforAfrica’sDevelopment,theActionPlanfortheAcceleratedIndustrialDevelopmentofAfrica,theProgramforInfrastructureDevelopmentinAfricaandtheAgenda2063,inthehopethatthe21stcenturywouldbeaneraforAfricandevelopmentthroughindustrializationandeconomicintegration.ThemostrepresentativeoftheseistheAU’sAgenda2063,whichhasestablishedthedirectionsforsocialandeconomicdevelopmentinAfricaforthenext50years.ItaimstoincreasetheaddedvaluetoAfricanresourcesandoptimizetheeconomicstructuresofAfricancountriesthroughindustrializationandthedevelopmentofthemanufacturingindustry,tomakeAfricaacontinentwithmacroeconomicstability,diversifiedeconomicstructuresandsustainableandinclusiveeconomicgrowthby2063.
AspartoftheireffortstorealizethevisionofindustrializationandtheAfricaaspiration,Africancountries,startingfromalowpoint,hopetoestablishpartnershipswithotheremergingindustrializedcountries.
Industrialcapacitycooperation
China-AfricaindustrialcapacitycooperationisinlinewiththeneedsofbothChinaandAfricancountriesandhasthepotentialtodevelop.After40yearsofreformandopeningup,Chinaisnowatthemid-tolatestageofindustrialization,withalargeamountofaccumulatedsurplusindustrialcapacity.Ithasthecapital,technologiesandequipmentfordevelopmentandrichexperienceingrowingfromanagriculturalcountrytoa“worldfactory.”
MostAfricancountriesareintheinitialstageofindustrializationwithastrongdemandforproductslikesteelandcement,whicharebasicallyimported.Therefore,theyareeagertoaccelerateindustrializationbyintroducingtheindustrialcapacitytoproducetheseproducts.Theyhaveabundantresources,cheaperlaborforceandamarketwithgreatpotential,whileChina’sindustrialcapacityandequipment/technologyfullymeettheirneeds.ThismeanstheyareinthebestpositiontobeamajordestinationofChina’stransferenceofindustrialcapacity,equipmentandtechnologies.
China-Africaindustrialcapacitycooperationenjoysstrongsupportfromgovernmentsandenterprises.ThevisitstoAfricabyChinesePresidentXiJinpingin2013andPremierLiKeqiangin2014unveiledChina’splantohelppromotethedevelopmentofAfrica’srailway,highwayandregionalairlinenetworksandindustrialization.AfricancountriesarealsokeentostrengthenindustrialcapacitycooperationwithChinainitsnewroundofindustrialrestructuringandboostindustrialdevelopmentandtechnologicalprogressinAfricabyintroducingChina’shigh-qualityindustrialcapacity.Theflagshipprojectsleadingthecooperationwillmostlybecross-borderandevencross-regionallargeinfrastructureprojectsinAfricaandindustrializationprojectsthatwilldrivethedevelopmentofAfrica’smanufacturingcapacity.
Inadditiontolarge-scalestate-ownedenterprises,whichhavebeenactiveintheenergyandminingindustriesandlarge-scaleinfrastructureconstructionprojects,moreprivateChinesecompanieswillbeseeninChina-Africaindustrialcapacitycooperationinthefuture.Inparticular,Chineseprivatecompaniesinthelightindustry,richinproductionexperienceandhighlyskilled,willbethemainforceininternationalindustrialcapacitycooperation.
Economiczonesbearingfruit
Afteryearsofunremittingefforts,China-Africaindustrialcapacitycooperationhasyieldedalotofearlygains.SincetheFOCACBeijingSummitin2006,ChinahasestablishedsixoverseaseconomicandtradecooperationzonesinfiveAfricancountriesofEthiopia,Nigeria,Zambia,MauritiusandEgypt.Therearenearly100China-Africanjointindustrialparksunderconstructionorinoperation.Bytheendof2017,China’sinvestmentstockinAfricahadexceeded$100billionwithmorethan3,500Chinesecompaniesoperatingonthecontinent.
OnJanuary27,2015,ChinaandtheAUsignedamemorandumofunderstandingoninfrastructureconstructioncooperation.Accordingtothememorandum,ChinawillstrengthenitscooperationwithAfricancountriesinrailways,highwaysandregionalairlinesandindustrializationwithintheframeworkofAgenda2063,topromoteAfricanintegration.AmongthefirstbatchofcountriestocooperatewithChina,suchasTanzaniaandEthiopia,China-Africaindustrialcapacitycooperationisalreadypayingoff.
Forexample,TanzaniawasoneofthefirstAfricancountriestojoinChina’sindustrialcapacitycooperationprograms.OnApril28,2015,aframeworkagreementonindustrialcapacitycooperationwassignedbetweenthetwocountries.Tanzania’sfive-yearplanunderformulationatthattimewasalsocenteredonindustrializationsoastoalignwiththeindustrialcapacitycooperationwithChina.Thecountryhasbeenconstructinganexportprocessingzonesince2009.Ithopestodevelopexport-orientedindustriestoattractforeigninvestment,expandexports,increaseemployment,andimproveproductiontechnologyandeconomicmanagement.Therearecurrently12companiesfromChinaintheexportprocessingzone.
TheChina-EgyptSuezEconomicandTradeCooperationZoneisanotherexample.ItislocatedatthebeginningofthedevelopmentzoneoftheSuezCanalCorridor,whereEgypt’shigh-qualityresourceswillbepreferentiallyplaced.ThisuniqueadvantageitenjoysisfavorableforthestrategiccooperationbetweenthetwocountriesandmaypromotethetransferofChina’sindustrialcapacitytoEgypt.ByJune2017,itwashometo65companies(including32manufacturingcompaniesand33supportingservicesproviders),attractingnearly$1billionininvestmentandcreatingmorethan3,000localjobs.
Inshort,theconstructionofinfrastructureandindustrialparks,whichareregardedasthe“twowings”ofChina-Africaindustrialcapacitycooperation,isnowboominginAfrica.ChinahasalsohelpedAfricabuildanumberofrailways,includingMombasa-NairobiStandardGaugeRailway,AddisAbaba-DjiboutiRailway,andtherailwaysbuiltinAngolaandNigeria.
AccordingtoKenyanPresidentUhuruKenyatta,Mombasa-NairobiSGRwouldlaythefoundationforKenya’snewchapterofindustrialization.Thefirstyearoftherailway’soperationwitnessedthesmoothandsafetransportationofmorethan1.38millionpassengersandmorethan60,000containers.Over46,000jobshavebeencreated,morethan5,000techniciansandmanagerialpersonnelhavebeentrained,andover100KenyanstudentsareinChinacompletingrailway-relatedundergraduateprograms.TherailwayhasgreatlyfacilitatedthemovementofpeoplebetweenNairobiandMombasa,andthetimeforcargotransportationhasbeenshortenedfrommorethan10hourstoaboutfourhours,reducinglogisticscostsbyupto40percent.Theconstructionoftherailwayaccountsfor1.5-2percentofKenya’sGDPgrowth,andhasledtotheformationofacommercialecosystemalongtherailwayandthedevelopmentoftheentireindustrychain,includingports.
Commentsto
TheauthorisseniorresearcheroftheCharharInstituteandaresearcheroftheInstituteofWestAsianandAfricanStudies,ChineseAcademyofSocialSciences
ThevisitstoAfricabyChinesePresidentXiJinpingin2013andPremierLiKeqiangin2014unveiledChina’splantohelppromotethedevelopmentofAfrica’srailway,highwayandregionalairlinenetworksandindustrialization.