Breakthrough potential

JIN DING/CHINA DAILY

China's future economic growth offers immense opportunities for Africa's development

China's contemporary relations with African countries go back to the early 1950s when it provided material and moral support for Africa's liberation struggle. However, the rapidly expanding economic and other forms of cooperation between China and African countries have attracted much Western interest and attention in recent years, as well as the prominent argument that China is engaging in similar exploitation for profits as the colonial Western powers did.

Yet the relationships which China has developed with African countries, a continuation of the support it gave Africans to liberate themselves from Western colonial dominance, are conducted with the free will of independent African states. Although there are challenges to be dealt with and resolved, China has offered opportunities in trade, aid and investment for Africa's development. And, unlike the West, China has offered development assistance without conditions or strings attached.

The Chinese and African economies are interdependent and have much complementarity leading to mutually enhancing relationships. China possesses mature and applicable technologies, equipment, and sufficient capital, while African countries have significant advantages in terms of labor and natural resources. During the 1978-2017 period, trade between China and Africa increased by more than 200 times. In the same period, China's economic growth and China-Africa economic relations rapidly increased, and African economies experienced a growth rate of about 5 percent to 6 percent. China has been Africa's largest trading partner for 15 consecutive years. In 2023, China-Africa trade reached $282.1 billion, up nearly 11 percent compared with 2021, which demonstrates the strong resilience of China-Africa trade.

The increase in China's demand for African export commodities, which has led to a rapid increase in world prices for African exports, has resulted in increased foreign currency returns for exporting African countries that in turn have fueled rapid African economic growth. As China continues to release its development potential, future Chinese economic growth will offer tremendous opportunities for African countries to further expand their exports, boost their economic growth and advance their development.

Being a major source of much needed capital, China presents current and future finance opportunities for the development prospects of the continent. The Chinese government has encouraged Chinese businesses to invest in Africa by offering tax incentives, interest free loans and access to foreign exchange. Chinese investment in African countries has subsequently increased, providing African countries with alternative resources for development and helped African economies diversify and increase local processing for export. They have consequently improved Africa's economic growth, job creation, employment and increased foreign currency earnings.

China's aid to Africa and African communities extends beyond economic relations and economic development. China is involved in about 1,000 social and economic projects in Africa aimed at benefiting local communities, making a significant positive contribution to Africa's development.

In anticipation of the future mutually beneficial cooperation, transforming stagnant African agriculture is a cross-cutting issue that pervades all dimensions of China-Africa cooperation. Whether in trade, debt repayment, investment by private businesses, agro processing and manufacturing and all other aspects of future China-Africa relationship, agriculture seems to connect directly or indirectly. In its spectacular development experience, it was the transformation of agriculture that constituted the basis for China's first steps in the self-propelled development process.

China in the new era seems ready to offer more than just its experience for the strategic transformation of African agriculture. The potential areas of cooperation include agricultural technology, technical know-how, explorations of agricultural organizations, and policy formulation to reconcile improved efficiency with equality and above all development finance. The key is whether transforming African agriculture is a priority for African elites and African leadership. The case for doing so is compelling.

Long-term food security based on efficient large-scale cheap food production would provide the conditions for a low-cost workforce that would in turn encourage Chinese and African businesses to venture into agro processing and manufacturing both for local consumption and for export. This would contribute to the development and diversification of currently stagnant African economies. The resulting internally generated resources combined with carefully designed strategies for inter-sector resource transfers for manufacturing, and other sectors, Africa would be poised for a breakthrough in development with wide-ranging socioeconomic and political implications. Enhanced African purchasing power will in turn provide a further backup to the huge Chinese market and provide support for further Chinese economic growth.

Recent developments in China-Africa cooperation have shown that the more China achieves in economic growth and global development, the more African economies benefit through increased African exports, increased foreign currency earnings, and increased access to cheap goods and investment in infrastructure and the services. It follows from this that the current and potential future Chinese economic growth will provide immense opportunities for Africa's growth and development. Together with the lessons to be learned from China's development experience, greater Chinese economic engagement with Africa, as a form of active South-South cooperation, presents an opportunity for Africa to diversify and expand its economy and make a breakthrough in development.

The author is an associate professor at the University of Khartoum-Sudan. The author contributed this article to China Watch, a think tank powered by China Daily.

The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.