China鈥檚ongoingengagementwithAfricaisamajorsuccessstoryandconstitutesanexcellentexampleofdevelopmentcooperationandinterdependencetowardcommoneconomicprosperity.TheChina-AfricatraderelationshipisimportantforChina鈥檚ongoingeconomicgrowth,whilecommodityexportstoChinaprovideafoundationforeconomicdevelopmentacrosstheAfricancontinent.AstrongcomplementaritybetweenChinaandAfrica,groundedonrespectivestagesofeconomicdevelopment,givesAfricaauniqueopportunitytoexportcommoditiestoarapidlyexpandingChinesemarket.ThiscomplementarityhasseenChina-Africatradegrowfromonly$10billionin2000toover$170billionin2017.
BesidestheobviouseconomicbenefitsfromcloserChina-Africacooperation,thebilateralrelationshipisfirmlygroundedonastronghistoricalfriendship.Inaddition,foreigndirectinvestment(FDI)hasplayedamajorroleinsupportingandpromotingeconomicdevelopmentacrosstheAfricancontinent,creatingnewjobswhilecontributingsignificantlytopovertyreduction.Chinahasbeenakeyfactorinthisprocess,bringingcapitalandtechnologytoAfrica.
GrowingChineseinvestmentsinAfricabenefitlocaleconomiesandcreatenewcommercialopportunitiesinregionalmarkets.China鈥檚investmentsinmining,dams,roadandrailsystems,aswellasinfrastructureandtelecommunicationsareimmenselybeneficialforAfrica鈥檚development.ChineseinvestmentsareatthesametimepromotingtheestablishmentofsmallenterprisesinAfrica.TheInternationalMonetaryFund(IMF)estimatesthatAfrica鈥檚growthinrecentyearshasbeencloseto6percent,thehighestin30years,dueinlargeparttoChina鈥檚growinginvestment,andChina鈥檚massivecontributiontoAfrica鈥檚infrastructureandeconomicdevelopmentconfirmsthatitisclearlyAfrica鈥檚bestdevelopmentpartnerandeconomically.
South-Southagenda
Besidestheeconomicdimension,ChinaandAfricaarelinkedbyacommonobjectivetoadvancetheSouth-Southagenda.Inthiscontext,ChinaandAfricaareseekingastrongervoicefordevelopingcountriesontheworldstageandininternationalinstitutionssuchastheUnitedNations,WorldTradeOrganization,IMFandtheWorldBank.ChinaisseenasanAfricanallyinthestruggletodemocratizeinternationalforumsandreshapeglobaldevelopmentagendas.Thus,ChinaandAfricashareacommonobjectiveinseekingtoreformtheglobalgovernancetowardafair,justandequitablesystem.
Africa鈥檚perceptionofChinaisshapedbyChina鈥檚historicalcommitmenttoAfrica鈥檚freedomstruggles,andthusastrongandenduringsentimentofliberationsolidarityunderpinstherelationship.Atthesametime,China鈥檚successfuldevelopmentmodelholdswideappealinAfricawherestatesareseekingtoescapethepovertytrap.
Practicalsuggestions
ThenewchallengeforChina,SouthAfricaandAfricaasawhole,istostrengthenthisprocessandbuildasustainableandlongtermrelationshipwithnewmajorbenefitsforallsides.IdentifyingthepreciseprogramsandprocesseswhichwillensureasustainableChina-SouthAfricaandChina-Africadevelopmentpartnershipforthelongtermisthekeytask.AsChinaandSouthAfricaarecelebrating20yearsofdiplomaticfriendshipandsolidaritythisyear,thedebatehasshiftedtowardafurtherbroadeningandstrengtheningoftherelationship.Inthiscontext,anumberofsuggestionshaveemerged:SouthAfricahasoftenbeenidentifiedasa鈥済ateway鈥漟orChinesecorporationswishingtoaccessthecontinent,butrather,SouthAfricashouldadvanceitselfasa鈥渃ommercialhub鈥漷oprovideacorporateheadquartersforthoseChinesecompanies.Thiswouldincludeprovidingqualityofficespace,bankingfacilities,conventioncentersandinvestmentconferencesalongwithtradelinksandeasyaccesstotherestofthecontinent.
SouthAfricanPresidentCyrilRamaphosahasofferedanewvisiontobringFDItothecountrytocreatejobsandbuildtheeconomy.ThehistoricalrecordconfirmstheimportanceofFDIinChina鈥檚ownremarkableeconomicdevelopment.SouthAfricaiswellpositionedtoattractFDI,butshoulddomoretoofferspecificinvestmentincentivestopotentialChineseinvestors.Withoutspecific,detailedandmeaningfulincentives,anaccelerationofincomingFDIisunlikely.
Theestablishmentofadedicatedspecialeconomiczone(SEZ)inSouthAfrica,specificallytofacilitateChina鈥檚corporateFDI,couldcontributesignificantlytowardboostinginvestment.TheSEZwouldrequireclearinvestmentincentives,suchaslowtaxes,availabilityofskilledlabor,laborflexibilityandgoodtransportlinks.TheimmensesuccessofChina鈥檚SEZscouldbereplicatedinSouthAfricaonasmallerscale.
Atthecontinentallevel,thecurrentdebatefocussesonhowAfricacanengagemoreeffectivelywithChinatowardmutuallybeneficialoutcomes.Arguably,thebeststrategyforAfricawouldbetoconcentrateona鈥減rojectapproach.鈥漈hus,attheForumonChina-AfricaCooperationandatbilateralmeetings,Africancountriesshouldfocusonpresentingdetailedbankableprojectswithcompletedfeasibilitystudies.Chinaisreadytofinanceandimplementconstructionprojectsacrossthecontinent,andthispresentsaremarkableopportunityforacceleratedeconomicgrowthandprosperity.
ThecurrentChina-AfricascholarlydebateconvergesontheideaofestablishingapossibleChina-Africacenter,oraninstitutetoadvanceacademicresearchandknowledgeexchange.However,toadvancecooperationinamorepracticalandresult-orien-tatedway,perhapsabusinesscenteroranindustrialcooperationinstitutewouldbemoreappropriate.Businessconsultantsandbankerscouldbeincorporatedtowarddevelopingandproposingspecificprojectsandprograms,whichwouldadvanceeconomicdevelopment.SouthAfricashouldtaketheleadinpromotingtheestablishmentofaChina-Africabusiness-focusedresearchcenter,linkedtoanestablishedbusinessschool.
Toadvanceamutuallybeneficialdevelopmentpartnership,AfricaasacontinentshouldurgentlyseektostrengthencooperationwithChina鈥檚BeltandRoadInitiative,withspecificreferencetoSouthAfrica.TheinitiativeoffersauniqueopportunityforAfricatobuildstrongconnectivitywiththeChinesemarketandtolinktheAfricancontinentmoredirectlywithglobaltraderoutes.Itprovidesthenextphaseofglobalization,offeringSouthAfricaandotherAfricacountriesmajornewprospectsforacceleratedeconomicgrowth.
Moreinnovativeinteraction
PromotingsustainableeconomicdevelopmentwillremainakeychallengeforSouthAfricaandotherAfricangovernmentsoverthenext10yearsandbeyond.ThetaskforChina,Africa,andSouthAfricainparticular,istoenhancethecurrentwin-winrelationshipbystrengtheningvariousformsofcooperation,anddevelopingnewareasofinnovativecommercialinteraction.
Atthesametime,amechanismtomeasurethesuccessoftheChina-SouthAfricainteractionwouldbehelpfulinmonitoringandadvancingtheprocess.Inthiscontext,thefollowingcouldbeaccuratelymonitoredtoconfirmresults:levelsoftrade(withanemphasisonadvancingbalancedtrade),newinvestments,jobscreated,evidenceofpovertyreduction,newroads,railwaysandotherconstruction,levelsofcorporatesocialinvestmentandnumbersofChinesetouristsvisitingAfrica.
AstrongerChina-Africapartnershipwouldprovidesignificantopportunityformutuallybeneficialsustainabledevelopment.ThepromotionofenhancedeconomicdevelopmentoverthenextdecadescanbemetthroughaChina-Africajointventurebasedonacommonvision,informedbythesuggestionsoutlinedaboveandbyotherproposals.StrengtheninginteractionanddevelopingnewavenuesofcooperationwouldproducecontinuedpositiveoutcomesforChinaandAfricancountries,especiallySouthAfrica.
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