20 years of FOCAC have paid off – World

Since the establishment of the Forum on China-Africa Cooperation 20 years ago and the recent launch of the Belt and Road Forum for International Cooperation, China has become Africa’s largest economic partner. There is no other country with such depth and breadth of engagement through trade, investment and infrastructure finance in Africa.

In this context, Chinese State Councilor and Foreign Minister Wang Yi pointed out, on the occasion of the 20th anniversary of FOCAC on November 12, that trade between China and Africa had multiplied by 20 and had reached $ 208.9 billion in 2019. In addition, compared to 20 years ago, China’s total foreign direct investment in Africa reached $ 49.1 billion in 2019, a 100-fold increase. over $ 200 billion in Chinese financial support was generated in 2019.

China’s growing investments have been supported by the forums by encouraging infrastructure development, encouraging Chinese enterprises to invest, and facilitating the development of small and medium-sized enterprises in Africa. FDI inflows from government and private companies have facilitated associated Chinese financial flows and enhanced the inclusive development potential of many African countries.

China has already become an important financial source for Africa’s development efforts. In September 2018, a total of $ 60 billion in funding was pledged for Africa at the seventh FOCAC summit. This included $ 15 billion in grants, interest-free and concessional loans; $ 20 billion in lines of credit; $ 10 billion for development finance; $ 5 billion for the financing of imports from Africa; and incentives for Chinese companies to invest at least $ 10 billion over three years.

Undoubtedly, Chinese investments and external financing were essential for sustained economic growth in many African countries during the FOCAC period. These investments have helped provide world-class economic infrastructure, injected much-needed capital, introduced new technologies and modern management know-how, and strengthened the management of project implementation in these economies.

The views of African policymakers and academics demonstrate that countries have benefited greatly from China over the two decades of FOCAC. China’s approach to economic and foreign relations is generally viewed positively in African countries. Most observers point out that China’s diplomacy of non-interference, mutual respect and friendship with Africa is fully appreciated by key decision-makers.

Current achievements are general but tell only part of the story, as China-Africa cooperation extends to other key sectors, as the 2018 FOCAC summit in Beijing said. The deepening of the relationship goes beyond economic cooperation and extends to crucial social sectors, as evidenced by efforts to support health and education institutions and governance in African countries, and to peace and security missions in certain states.

Specifically, there is much to be commended regarding China’s efforts to help Africa under the difficult circumstances of the COVID-19 pandemic. The health and economic impacts of the pandemic are creating enormous economic and social challenges globally. China’s efforts to help Africa overcome these challenges and achieve post-pandemic recovery are essential to ensure that the economic achievements of recent years are sustainable and that poverty reduction in recent decades is not achieved. is not reversed.

At such a critical time in the global fight against the COVID-19 pandemic, the commitments made at the China-Africa Virtual Extraordinary Summit on Solidarity Against COVID-19 on June 17 promised to build a China-Africa health community. for everyone. Those commitments made at the summit in President Xi Jinping’s words included that African countries will be among the first to benefit from the COVID-19 vaccine once its development and deployment is completed in China.

The gains achieved through the cooperation of FOCAC and the Belt and Road Initiative have clearly built a shared community and substantial collaboration in socio-economic fields. The remaining questions are how to strengthen and improve cooperation within FOCAC and BRI on high priority issues that improve people’s livelihoods and well-being.

There are key areas of vital importance to Africa’s transformation that need to be addressed urgently, including poverty reduction in fragile economies, increased efforts to develop Africa’s industrialization and efforts to deal with the adverse effects of climate change, which pose an existential threat to certain African regions and countries.

The achievements of China’s transformation to lift 800 million people out of poverty within decades are eagerly awaited around the world. In addition, given China’s success in tackling climate change, food security and agricultural productivity, ways and means of collaboration in these critical areas should be prioritized to expand the achievements of FOCAC and BRI.

Chinese leaders said they were ready to work with Africa on a framework for strategic cooperation on climate change to jointly address this challenge, as well as to explore broader cooperation on clean energy.

Over the past 20 years, FOCAC has greatly strengthened the cooperation and friendship between China and Africa, and the BRI will further strengthen this relationship. Current practices and China-Africa strategic relations should be strengthened and extended to critical areas that are vital to improving people’s lives and promoting sustainable development.

The author is Managing Director of the Horn Economic and Social Policy Institute, an Ethiopia-based think tank. A version of this article was previously published in the journal Capital Ethiopia. Opinions do not necessarily reflect those of China Daily.