- China pledges closer economic and trade ties with Africa at 2024 FOCAC Summit.
- Mulit-million dollar deals signed between Africa and China at key summit.
- Annual trade volume between China and Africa to reach $300Bn by 2035
The just concluded Forum on China-Africa Cooperation (FOCAC) Summit has opened new possibilities for Tanzania and Africa’s industry as a whole. Held in Beijing, China, this ninth summit was attended by all 53 African Heads of State or their representative hosted by Chinese President Xi Jinping.
The FOCAC summit has seen President Xi pledge over $50 billion in aid and loans to support what he described as “Africa’s modernization efforts.” He highlighted key funding areas to include infrastructure and agricultural development over the next three years. Notably, President Xi said this new commitment is in addition to China’s zero-tariff policy that was announced earlier to boost trade volume between Africa and China.
Leading Chinese companies such as the China Academy of Space Corporation (CASC), China Electronics Corporation, Transsion Group, Weihua Group, China Railway Construction Corporation (CRCC) and Acme Consultant Engineers PTE Limited have all inked deals with various African countries at the summit.
FOCAC to boost Tanzania-China relations
For example, Tanzania’s President Samia Suluhu Hassan seized the opportunity to invite the Chinese companies to invest in the East African country and to that end, she oversaw among other deals, the signing of a Memorandum of Understanding (MoU) for the renovation of TAZARA rail link. TAZARA is a critical transportation system that connects the mineral rich, but landlocked Zambia to the Port of Dar Es Salaam from where its mineral shipments can course to overseas markets.
Media reports a positive outlook among analysts who see the FOCAC summit as a stepping stone to Tanzania’s development with aid from China. “We need the Chinese market, but to serve it effectively, we must produce enough value-added products,” comments economic diplomacy expert, Professor Kitojo Wetengere from the University of Arusha.
Prof Wetengere seconded China’s advice to Tanzania to put more effort towards value-addition of its exports to China if it is to benefit from the bilateral ties it has with the economic giant. “Value added exports will enable local producers to earn higher profits and create job opportunities at home, compared to trading raw goods, which are less profitable,” he said.
Similarly, International Relations Analyst Medard Wilfred and the Public Relations and Marketing Officer at the Saint Augustine University of Tanzania (SAUT) called for collaboration between universities of the two countries to “create a database of the Tanzanian workforce and their specific skills, which will help Chinese tech investors find local employees.”
This view is backed by the Founding Director of the Centre for Chinese Studies at the University of Dar es Salaam (UDSM), Professor Humphrey Moshi, who highlighted the importance of modernising Tanzania’s agriculture and to move from rain-fed farming to irrigation schemes with the help of China.
“Tanzania has abundant water bodies and can easily transition to irrigation if assisted by China’s technology,” he said.
He pointed out that agricultural modernisation will help to boost the nation’s industrialisation endeavours and increase food security.
At the same time, business expert Dr Sylvester Jotta from Mwanza told the ‘Daily News’ that the forum could significantly boost Tanzania’s exports to China by promoting agricultural modernisation and agro-value addition. With value adititon, Tanzania can hope to achieve some sort of balance of trade which at the moment leans heavy on the country.
According to the United Nations COMTRADE database on international trade, China exports to Tanzania was $8.09 billion in 2023, while Tanzania exports to China was only $427.89 million during the same year.
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China woos Africa for greater ties at FOCAC
As suggested by its theme, “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future” the 2024 FOCAC Summit has been publicized as a win-win advancement for both Africa and China.
The summit, which is held once every three years, saw the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) call for “broad prospects for the Chinese modernization through further deepening reforms that will benefit all sides.”
“The modernization China is pursuing is not for China alone, but for all developing countries through their joint efforts,” stakeholders were reassured at the summit.
In a press update, Chinese officials acknowledge that “Africa’s development is moving at an accelerated pace as envisioned in its Agenda 2063, and working together will serve to benefit both sides.”
China’s Ministry of Foreign Affairs describes the summit as the World’s largest diplomatic event that the country has hosted in recent years and is a “grand reunion of the China-Africa big family.”
“China shall never waver in its determination to pursue greater solidarity and cooperation with Africa,” the ministry said in its press statement.
The summit puts emphasis on China’s Belt and Road initiative that aims to link China with several continents and Africa is on top of that list. At the same time, all eyes were on Beijing to see how it counters the long standing, but increasingly pointed moves from US and Europe in influencing Africa.
“Although the US, Japan, India and Russia also hold regular summits to woo the continent’s leaders, China is unmatched as the continent’s economic partner,” comments Jana de Kluiver, a researcher with the South Africa based Institute for Security Studies.
The researcher is of the view that, “having African leaders as allies means Beijing can wield diplomatic influence at the United Nations. Africa is important to China because of the strength of its votes at the United Nations General Assembly. Those photos with African leaders, those big headlines on the papers, will be very important for President Xi to get,” he told media.
The analyst sees the summit as a chance for China to “lobby for improved access to important minerals like lithium, copper and cobalt. “Beijing will also likely push for more exports of its China-made products, particularly renewable energy products, and technologies it has recently invested heavily in,” the researcher is quoted by international press.
Notably, at least 53 heads of state of African countries as well as ministerial delegates attended the summit. Also present at the summit is UN Secretary-General Antonio Guterres, who attended as a special guest along side several international and regional organisations.
As the West watches, this summit marked increased close relations between Africa and China and opens a new age of bilateral relations. Already, China is Africa’s biggest trade partner with around a quarter of the continent’s exports destined to China every year. On the other hand, about 16 percent of Africa’s imports come from the China. It is projected that the annual trade volume between China and Africa could reach $300 billion by 2035.
