China-Africa Relations: A Strategic Approach for Mutual Benefits
China’s relationship with Africa has been a topic of debate, with some highlighting the potential debt burden while others applaud Africa’s ability to leverage its strategic importance on the global stage. Experts and officials at this week’s Forum on China-Africa Cooperation in Beijing emphasized the benefits that both Africa and China can gain from closer cooperation.
Investments from Beijing in countries like Ethiopia, Djibouti, and Kenya have been substantial, focusing on infrastructure development, economic growth, financial aid, and trade opportunities. Former Ugandan diplomat Simon Mulongo highlighted that China’s investments in Africa have led to the creation of jobs, economic stimulation in various sectors such as manufacturing, mining, and agriculture, and improved infrastructure like roads, railways, and ports.
Mulongo, who is the managing partner of EMANS Frontiers, a governance and security consultant, noted that China also benefits from the partnership with Africa by gaining access to rich mineral resources, oil, and other natural resources necessary for its industrial growth and sustaining its population.
Djibouti stands out as a country where China’s investment is visible, with the establishment of a major military base, as well as the development of infrastructure projects such as electrical rail, a deep-sea port, and a free-trade zone. Ilyas Moussa Dawaleh, Djibouti’s minister of economy and finance, emphasized the enduring collaboration between China and Djibouti, showcasing the benefits of the partnership.
Financing Challenges and Debt Management
A key issue facing Africa is the financing challenges in infrastructure development, with the infrastructure financing gap estimated to be in billions per year. Dawaleh emphasized the importance of China’s support in narrowing this gap and addressing the challenges faced by African countries in managing large loans.
While concerns have been raised about Chinese loans being a potential “ticking time bomb” for Africa, Dawaleh argued that the debt crisis facing Africa is driven by global challenges such as the impact of Covid-19, droughts, climate change, and inflation imported due to crises in other regions. He stressed the need for understanding and collaboration between partners to address the debt crisis more effectively.
Kibur Gena, an economist and the executive director of Initiative Africa, highlighted the importance of a strategic and disciplined approach in managing large loans to ensure they contribute to sustainable economic development without leading to debt distress. He emphasized the need for transparency, clear terms and conditions, and effective debt management to maximize the economic returns from these loans.
Balanced and Strategic Partnership
Mulongo emphasized the importance of a balanced and strategic partnership between China and African countries, prioritizing mutual interests, transparency, and long-term development. He noted the differences in the relations Africa has with China compared to Western countries, with the West often imposing conditions related to governance, human rights, and economic reforms, while also focusing on security issues.
African countries should not be forced to choose between China and the West but should aim to balance relations with both, leveraging the unique strengths and opportunities that each power presents. Mulongo stressed the need for a balanced approach that prioritizes mutual benefits and long-term development for Africa.
Open Markets and Industrialization Efforts
Kibur Gena highlighted the importance of China opening its markets to a broader range of African products, particularly those with higher value added, to support Africa’s industrialization efforts. He emphasized the need for mutual cooperation and support in enhancing trade relations between China and African countries to promote economic growth and development.
In conclusion, the strategic approach to China-Africa relations should focus on mutual benefits, transparency, effective debt management, and balanced partnerships. By leveraging the strengths of both China and African countries, opportunities for sustainable economic development and growth can be maximized, leading to a prosperous future for the continent.