The China-Africa Summit, held from 4 to 6 September, under the theme “Joining Hands to Advance Modernisation and Build a High-Level China-Africa Community with a Shared Future”, was attended by 53 Heads of state and government.
Furthermore, China announced a US$51 billion support package to Africa over the next three years. This comprises investments in infrastructure, industrial development, and sustainability projects.
It is critical to recognise that the China-Africa relationship is built on a solid foundation. From an economic and political standpoint, there is no doubt the summit’s opening constituted an important milestone in the lengthy process of African integration.
Increased partnership investment in African countries may lead to the development of value chains, the promotion of higher industrialisation, and the improvement of business-to-business ties. Thus, more cooperation will be very helpful in continuing the longstanding legacy of partnership. In a more favourable environment, more extensive involvement also significantly enhances foreign investment and trade.
There has indeed been an increase in trade, foreign direct investment (FDI), and development financing between China and Africa; these factors have helped African countries grow economically. Namibia creates an atmosphere that enables investors to seize fresh opportunities in vital industries.
Consequently, Africa’s attempts to leverage its natural resources are exemplified by the emphasis on investments in industries such as mining, renewable energy, and technological innovation, counterbalanced by China’s experience with modernisation. China views Africa as a growing market for its products and services as its market expands. Anything from infrastructural projects to consumer goods falls under this category.
Furthermore, China has surpassed the US to become Africa’s biggest economic partner and remains by far the greatest trading partner inside the continent. Africa and China’s relationship is being further strengthened by their joint effort. Moreover, China voiced optimism during the summit by emphasising the potential that will spur economic growth on the continent, especially through the construction of infrastructure and the African Continental Free Trade Area (AfCFTA). Strengthening the meaningful engagement of other countries in partnership with China is another strategic aim, which is to jointly pursue modernisation that is just and equitable. Strengthening capacity building and ensuring African nations and other Global South countries are fairly represented and have their interests successfully advanced are two additional benefits of China-Africa friendship and cooperation.
China is Africa’s largest trading partner, with US$117.51 billion in imports and US$164.49 billion in exports. Although China has extensive economic relations with 49 African countries, the bulk of China’s trade with Africa is with a small number of these countries. Oil accounts for 75% of all African exports to China, with the Republic of Congo, Angola, South Africa, and Sudan contributing.
Benefits for Namibia
Regarding Namibia, it presents a chance to work on specifics of boosting bilateral connections in several industries, including mining, renewable energy, solar manufacturing, hydro, wind, and nuclear energy. Namibia has the potential to benefit from China’s main goals, which include fostering practical cooperation across all domains; establishing a community of shared interests, accountability, and destiny marked by reciprocal political trust, economic integration, and cultural inclusivity; and facilitating connectivity, unimpeded trade, financial integration, and interpersonal ties. Namibia already reaps the financial rewards of this.
Namibia will gain from foreign direct investment (FDI), such as China’s intention to provide an additional N$500 million for funding for future projects and to provide a credit line of N$1 billion for Namibia’s police housing project.
Additionally, Namibia might also profit directly from the experience of the second-biggest economy in the world, China, in addition to learning knowledge from it, which would hasten Namibia’s industrialisation. From now on, Namibia can make the most of this important partnership by using the FOCAC’s pillars, taking part in high-level diplomatic discussions, and focusing on important sectors such as youth development, agricultural innovation, and economic cooperation.
This indicates potential success; therefore, it is necessary to build on it going forward by bolstering institutions, encouraging political participation, democratising, improving policy coordination, streamlining business processes, lowering debt, opening up financial markets, drawing in foreign direct investment, facilitating technology transfers, developing human capital, and fortifying corporate governance.
Moreover, this is an excellent investment for African nations, FOCAC has the potential to develop value chains, foster more industrialisation, and improve business-to-business interactions.
In light of this, enhancing cooperation will be crucial to multilateralism’s past achievements. Increased and more meaningful interaction creates a more positive atmosphere for bilateral commerce and investment. A new chapter in the quest for a global community with a shared future for all peoples will begin with China and Africa’s combined modernisation efforts, according to president Xi Jinping. Enhanced efforts should be made to support this journey since increased prosperity and improved competitiveness in Africa are critical outcomes.
Xi stated China is prepared to establish a collaboration with Africa to carry out the Global Security Initiative (GSI) and establish it as a model of GSI cooperation. “We will train 1 000 police and law enforcement officers from Africa as well as 6 000 military people. We will also welcome 500 young African military officers to China, along with grants totalling RMB 1 billion yuan for military aid.”
Together, the two parties will carry out “action for a mine-free Africa”, conduct joint military drills, training, and patrols, and cooperatively guarantee the security of workers and projects, he said.
He further indicated that with the 10 partnership activities, China will support Africa financially with RMB 360 billion yuan over the next three years.
The breakdown of this is as follows; a financial commitment line of RMB 210 billion yuan, support totalling RMB 80 billion yuan in different ways, and at least RMB 70 billion yuan invested by Chinese enterprises in Africa. In conclusion, it requires plenty of energy, patience, and political leadership. However, the objectives of the partnership, the improvement of competitiveness and greater prosperity in Africa, are so important that efforts to foster this journey should be intensified.
* Josef Kefas Sheehama is an independent economic and business researcher.