China-Africa investment cooperation has huge potential
Visitors explore the Gaoqiao Sub-Exhibition Hall of the second China-Africa Economic and Trade Expo on September 29 in Changsha, Hunan Province. Photo: CFP
Since the establishment of the Forum on China-Africa Cooperation in 2000, China’s investment in Africa has seen progress both in quantity and quality, bringing substantial benefits to Africa’s economic and social development.
“After years of development, China has become one of the largest sources of investment in Africa,” said Guo Haiyan, deputy director of the African Affairs Department at China’s Ministry of Foreign Affairs, at the 2021 China-Africa Investment Forum hosted by Shanghai University of International Business and Economics in early September.
The contrarian growth of China’s investment in Africa despite the pandemic has demonstrated the confidence of Chinese companies in the African market and the huge potential of China-Africa economic and trade cooperation, Guo said.
Guo continued that Chinese companies not only support Africa’s economic and social development, but also actively fulfill their social responsibilities and benefit the local people.
The development advantages of China and Africa are highly complementary. Huang Meibo, president of the International Development Cooperation Academy at Shanghai University of International Business and Economics, said that China has advantages in capital, technology, and development experience, while Africa has superior resource endowments, huge demographic dividends, and rapidly expanding urbanization and industrialization.
Liu Jisen, executive director of the Institute for African Studies at Guangdong University of Foreign Studies, also stressed that China and the African market are highly complementary. China has provided Africa with a large amount of infrastructure investment and high-quality and low-cost consumer products. Africa is rich in mineral, agricultural, and tourism sector resources. China can help with Africa’s industrialization and agricultural modernization.
“China’s investment in Africa has promoted Africa’s industrialization, urbanization, integrated development, and green and sustainable development,” said Yao Guimei, a research fellow from the Institute of West-Asian and African Studies at the Chinese Academy of Social Sciences.
With the advancement of the Belt and Road construction, China’s investment in Africa has grown rapidly, and it has participated in numerous African infrastructure construction and financing projects, involving water conservancy, transportation, energy, hospitals, schools, and garbage disposal. All these have facilitated Africa’s economic development and improved people’s livelihoods.
“China’s financing of Africa’s infrastructure has supported Africa’s development in many ways,” said Mao Xiaojing, director of the Institute of West Asia and Africa at the Chinese Academy of International Trade and Economic Cooperation.
It has made up for the funding gap in Africa’s infrastructure construction and improved Africa’s infrastructure, creating conditions for attracting investment and developing urbanization, Mao continued. In addition, it has created jobs, as well as promoted technology transfer and talent training. Moreover, it has facilitated transportation for local people, and improved their living conditions.
Insufficient energy and electricity have become an important factor restricting Africa’s development. Zhang Zhenke, director of the Institute of African Studies at Nanjing University, pointed out that there is a large energy and power gap in Africa, while the development of urbanization and industrialization requires complete energy and power support. Many places in Africa have great potential for developing renewable energy. Chinese companies have investment opportunities in energy and power.
“Looking forward to the future, China-Africa investment cooperation has great potential,” Yao concluded.
Edited by JIANG HONG