By Wang Keju (China Daily)
September 07, 2024
China and Africa are set to take their economic and trade partnership to greater heights, with advancing mutual openness, bolstering industrial integration and fostering cooperation in emerging sectors high on the agenda, Premier Li Qiang said on Friday.
Entrepreneurs have also been called on to channel more investment toward boosting economic development and meeting urgent societal needs, Li said in a speech at the opening ceremony of the eighth Conference of Chinese and African Entrepreneurs held in Beijing.
Economic and trade cooperation between China and Africa stands as a cornerstone of their partnership, yielding fruitful outcomes in recent years and providing robust support for the joint advancement toward modernization of both sides, he said.
Going forward, China will expand unilateral market access to least developed countries and widen the green channel for African agricultural exports to China, he added.
China is also committed to advancing mutual openness with Africa, and will expedite the process of negotiating and signing of framework agreements on jointly developing economic partnerships, in an effort to better drive trade and investment facilitation, the premier said.
Noting the concerted push toward advancing industrial integration, Li said that China stands ready to deepen cooperation along the industrial chains with Africa, aiming to integrate the two regions more deeply into the global industrial and supply chains.
Moreover, China is keen to strengthen collaboration with Africa in areas such as the digital economy, artificial intelligence, and new energy, thus fostering the growth of new drivers of development and achieving fresh economic growth opportunities through joint efforts, he added.
The premier called on entrepreneurs from China and Africa to steadfastly deepen their cooperation, and play a bigger role in driving development not only within the China-Africa partnership but also on a global scale.
African officials and business executives said that the practical initiatives outlined at the 2024 Summit of the Forum on China-Africa Cooperation hold significant promise for accelerating the modernization efforts of African countries.
David Karl Ferreira, CEO of Vitality China under Discovery Ltd — a South Africa-based financial services provider — said that the company has benefited greatly from China's further opening-up of the financial sector in recent years and the country's super-large market.
With its vast consumer base, promising growth potential, and innovative prowess, China has emerged as a magnet for South African enterprises seeking to expand their footprint and capitalize on the country's economic dynamism, Ferreira said.
Meanwhile, Chinese enterprises doing business in Africa have been instrumental in providing a wealth of invaluable experiences to businesses across the continent, he added.
Lei Jun, founder and chairman of Chinese smartphone maker Xiaomi, said that Africa's economic growth outpaces the global average, and the construction of the continent's Free Trade Area promotes cross-border trade cooperation and market integration.
Particularly noteworthy is the emergence of supportive policies for green transition in many African countries. Xiaomi is keen on seizing opportunities to enhance collaboration with African enterprises across various emerging industries, including new energy vehicles, Lei said.
Building on its presence in 16 African countries, including Egypt, Nigeria, and Kenya, Xiaomi is gearing up to increase its investments across the continent, Lei added.
China and Africa are set to take their economic and trade partnership to greater heights, with advancing mutual openness, bolstering industrial integration and fostering cooperation in emerging sectors high on the agenda, Premier Li Qiang said on Friday.
Entrepreneurs have also been called on to channel more investment toward boosting economic development and meeting urgent societal needs, Li said in a speech at the opening ceremony of the eighth Conference of Chinese and African Entrepreneurs held in Beijing.
Economic and trade cooperation between China and Africa stands as a cornerstone of their partnership, yielding fruitful outcomes in recent years and providing robust support for the joint advancement toward modernization of both sides, he said.
Going forward, China will expand unilateral market access to least developed countries and widen the green channel for African agricultural exports to China, he added.
China is also committed to advancing mutual openness with Africa, and will expedite the process of negotiating and signing of framework agreements on jointly developing economic partnerships, in an effort to better drive trade and investment facilitation, the premier said.
Noting the concerted push toward advancing industrial integration, Li said that China stands ready to deepen cooperation along the industrial chains with Africa, aiming to integrate the two regions more deeply into the global industrial and supply chains.
Moreover, China is keen to strengthen collaboration with Africa in areas such as the digital economy, artificial intelligence, and new energy, thus fostering the growth of new drivers of development and achieving fresh economic growth opportunities through joint efforts, he added.
The premier called on entrepreneurs from China and Africa to steadfastly deepen their cooperation, and play a bigger role in driving development not only within the China-Africa partnership but also on a global scale.
African officials and business executives said that the practical initiatives outlined at the 2024 Summit of the Forum on China-Africa Cooperation hold significant promise for accelerating the modernization efforts of African countries.
David Karl Ferreira, CEO of Vitality China under Discovery Ltd — a South Africa-based financial services provider — said that the company has benefited greatly from China's further opening-up of the financial sector in recent years and the country's super-large market.
With its vast consumer base, promising growth potential, and innovative prowess, China has emerged as a magnet for South African enterprises seeking to expand their footprint and capitalize on the country's economic dynamism, Ferreira said.
Meanwhile, Chinese enterprises doing business in Africa have been instrumental in providing a wealth of invaluable experiences to businesses across the continent, he added.
Lei Jun, founder and chairman of Chinese smartphone maker Xiaomi, said that Africa's economic growth outpaces the global average, and the construction of the continent's Free Trade Area promotes cross-border trade cooperation and market integration.
Particularly noteworthy is the emergence of supportive policies for green transition in many African countries. Xiaomi is keen on seizing opportunities to enhance collaboration with African enterprises across various emerging industries, including new energy vehicles, Lei said.
Building on its presence in 16 African countries, including Egypt, Nigeria, and Kenya, Xiaomi is gearing up to increase its investments across the continent, Lei added.
(Web editor: Tian Yi, Wu Chaolan)
China stops short of debt relief for African nations but pledges more cash
President Xi Jinping is hosting leaders from more than 50 African countries in Beijing.
Sep 07, 2024
BEIJING – China stopped short of providing the debt relief sought by many African countries this week, but pledged US$51 billion (S$66 billion) over three years in credit lines and investments.
The Forum for China-Africa Cooperation (Focac), launched in 2000, took on an enhanced role after the 2013 inception of President Xi Jinping’s Belt and Road Initiative (BRI), which aims to recreate the ancient Silk Road for the world’s second-largest economy and biggest bilateral lender to Africa.
“China is moving back on to the front foot in terms of overseas deployment of capital in the emerging markets,” said Mr Hasnain Malik, head of equity research at tech firm Tellimer, while adding it is not yet at pre-Covid-19 levels.
China has also sought to use Focac to counter growing competition in Africa from the United States, European Union, Japan and others.
In Beijing, diplomats and delegates from around the world mingled in the Great Hall of the People in Tiananmen Square as leaders from more than 50 African countries and Chinese officials led by Mr Xi gathered for a group photo.
The new financial pledge is more than what Beijing promised at the last Focac in 2021, but below the US$60 billion of 2015 and 2018, which marked the peak of lending to Africa under BRI.
During those peak years, Beijing bankrolled the construction of roads, railways and bridges. But a drying up of funds since 2019 has left Africa with stalled construction projects.
The new funds will go towards 30 infrastructure projects to improve trade links, China said, without giving details.
The 54-nation continent of more than a billion people has an annual infrastructure funding deficit estimated at US$100 billion, and needs transport links to make a new giant pan-African trade bloc a reality.
Beijing has in recent years cut funding for such projects as it shifted focus to “small and beautiful” projects, mainly due to its own domestic economic pressures and an increase in debt risks among African countries.
Asked how the new commitments fit into China’s current cautious overseas lending strategy, Ms Mao Ning, a foreign ministry spokeswoman, said there is no contradiction.
“The cooperation between China and African countries, including the specific implementation of projects, is discussed and determined by both sides,” she said at a news conference on Sept 6.
Sep 07, 2024
BEIJING – China stopped short of providing the debt relief sought by many African countries this week, but pledged US$51 billion (S$66 billion) over three years in credit lines and investments.
The Forum for China-Africa Cooperation (Focac), launched in 2000, took on an enhanced role after the 2013 inception of President Xi Jinping’s Belt and Road Initiative (BRI), which aims to recreate the ancient Silk Road for the world’s second-largest economy and biggest bilateral lender to Africa.
“China is moving back on to the front foot in terms of overseas deployment of capital in the emerging markets,” said Mr Hasnain Malik, head of equity research at tech firm Tellimer, while adding it is not yet at pre-Covid-19 levels.
China has also sought to use Focac to counter growing competition in Africa from the United States, European Union, Japan and others.
In Beijing, diplomats and delegates from around the world mingled in the Great Hall of the People in Tiananmen Square as leaders from more than 50 African countries and Chinese officials led by Mr Xi gathered for a group photo.
The new financial pledge is more than what Beijing promised at the last Focac in 2021, but below the US$60 billion of 2015 and 2018, which marked the peak of lending to Africa under BRI.
During those peak years, Beijing bankrolled the construction of roads, railways and bridges. But a drying up of funds since 2019 has left Africa with stalled construction projects.
The new funds will go towards 30 infrastructure projects to improve trade links, China said, without giving details.
The 54-nation continent of more than a billion people has an annual infrastructure funding deficit estimated at US$100 billion, and needs transport links to make a new giant pan-African trade bloc a reality.
Beijing has in recent years cut funding for such projects as it shifted focus to “small and beautiful” projects, mainly due to its own domestic economic pressures and an increase in debt risks among African countries.
Asked how the new commitments fit into China’s current cautious overseas lending strategy, Ms Mao Ning, a foreign ministry spokeswoman, said there is no contradiction.
“The cooperation between China and African countries, including the specific implementation of projects, is discussed and determined by both sides,” she said at a news conference on Sept 6.
Currency swops
China also said it will launch 30 clean energy projects in Africa, offer cooperation on nuclear technology and tackle a power deficit that has delayed industrialisation efforts.
“The outcomes of the Focac summit signal an impetus for green projects and especially for renewable energy installations,” said Mr Goolam Ballim, head of research at South Africa’s Standard Bank.
China has become a global leader in wind and solar energy, Mr Ballim said, controlling significant supply chains and reducing production costs.
Others were sceptical.
“The issue is not so much about the size of the investments. It’s been about the lack of transparency around the terms of the debt,” said Mr Trang Nguyen, global head of emerging markets credit strategy at French bank BNP Paribas.
Success was less clear-cut for countries owing a large share of their debt to China, which made no express offer of assistance to those struggling with repayments.
Beijing instead urged other creditors “to participate in the handling and restructuring of African countries’ debts under the principle of joint actions and fair burden-sharing”.
African leaders hoping to bask in large deals for their countries had to settle for less splashy announcements.
Ethiopia and Mauritius announced new currency swop lines with China’s central bank. Kenya said it made progress on talks to reopen the lending taps for key projects like its modern railway to link the region.
Still, there was optimism from some, as they welcomed China’s increased commitments to Africa’s security, humanitarian challenges and other non-financial affairs.
“After nearly 70 years of hard work, China-Africa relations are at their best in history,” Tanzania’s President Samia Suluhu said on her X account. REUTERS
China also said it will launch 30 clean energy projects in Africa, offer cooperation on nuclear technology and tackle a power deficit that has delayed industrialisation efforts.
“The outcomes of the Focac summit signal an impetus for green projects and especially for renewable energy installations,” said Mr Goolam Ballim, head of research at South Africa’s Standard Bank.
China has become a global leader in wind and solar energy, Mr Ballim said, controlling significant supply chains and reducing production costs.
Others were sceptical.
“The issue is not so much about the size of the investments. It’s been about the lack of transparency around the terms of the debt,” said Mr Trang Nguyen, global head of emerging markets credit strategy at French bank BNP Paribas.
Success was less clear-cut for countries owing a large share of their debt to China, which made no express offer of assistance to those struggling with repayments.
Beijing instead urged other creditors “to participate in the handling and restructuring of African countries’ debts under the principle of joint actions and fair burden-sharing”.
African leaders hoping to bask in large deals for their countries had to settle for less splashy announcements.
Ethiopia and Mauritius announced new currency swop lines with China’s central bank. Kenya said it made progress on talks to reopen the lending taps for key projects like its modern railway to link the region.
Still, there was optimism from some, as they welcomed China’s increased commitments to Africa’s security, humanitarian challenges and other non-financial affairs.
“After nearly 70 years of hard work, China-Africa relations are at their best in history,” Tanzania’s President Samia Suluhu said on her X account. REUTERS
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