China-Africa cooperation fosters Africa's regional economic integration

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Aug 31, 2024, 21:02 ET

BEIJING, Aug. 30, 2024 /PRNewswire/ -- A report from People's Daily:

Africa has witnessed a steady process of regional economic integration in recent years. In February 2024, the African Union (AU) launched the Second 10-Year Implementation Plan of Agenda 2063 during the 37th AU Summit.

Mohamed Ould Cheikh Ghazouani, Mauritanian president and chairperson of the AU for 2024, said that the AU is committed to unleashing the development potential of the African continent, promoting regional economic integration, increasing infrastructure connectivity, and enhancing agricultural productivity, so as to ensure the smooth implementation of the second 10-year implementation plan.

The African Continental Free Trade Area (AfCFTA) was officially established in July 2019 and went into operation in January 2021. It aims to facilitate trade and investment and achieve the free movement of goods, services, and capital across the African continent through tariff reduction and removal of trade barriers. It works to create a large single market of over 1.3 billion people and with a combined gross domestic product of $2.3 trillion.

According to the Economic Development in Africa Report 2023 released by the United Nations Trade and Development (UNCTAD), the AfCFTA offers advantages by easing regional market access and strengthening production chains across the continent, helping African domestic industries become more prepared for the global arena.

As Africa's largest trading partner, China actively supports African regional economic integration and the development of the AfCFTA. Recent years have seen an expansion in both the volume and quality of trade between China and the African continent.

According to the China-Africa Trade Index, published for the first time in 2023, the value of China's imports from and exports to Africa increased from less than 100 billion yuan ($14 billion) in 2000 to 1.88 trillion yuan in 2022, a cumulative growth of over 20 times. In 2023, the China-Africa trade volume reached a record high of $282.1 billion, a year-on-year increase of 1.5 percent. Among them, China's imports of African nuts, vegetables, flowers and fruits increased by 130 percent, 32 percent, 14 percent, and 7 percent year-on-year, respectively. Meanwhile, Chinese exports of new energy vehicles, lithium batteries, and photovoltaic products to Africa increased by 291 percent, 109 percent, and 57 percent year-on-year, respectively, strongly supporting Africa's green transition.

China and the AfCFTA Secretariat have jointly established an expert group for economic cooperation, aiming to enhance the sharing of policies and experiences to facilitate trade and investment. Both sides have been deepening cooperation in areas such as infrastructure, trade and finance, industrial investment, talent training, and capacity building, providing continuous support for Africa's regional economic integration.

Over the past decade, China has provided Africa with development support as much as it can and has been involved in the construction of over 6,000 kilometers of railways, 6,000 kilometers of roads, and more than 80 large power facilities in Africa.

Among them, the 2Africa submarine cable project, invested and developed by China Mobile International and other companies, encircles the African continent with a total length of over 45,000 kilometers. Once completed, it will become the longest submarine cable in the world. This cable project will deliver much-needed internet capacity and reliability in Africa, promote digital transformation in sectors such as healthcare, education, and finance, and provide digital support for the regional economic integration of the African continent.

In August 2023, at the China-Africa Leaders' Dialogue, China proposed to launch the Initiative on Supporting Africa's Industrialization, the Plan for China Supporting Africa's Agricultural Modernization, and the Plan for China-Africa Cooperation on Talent Development, to help Africa bring its integration and modernization into a fast track.

According to an article published in the African Leadership Magazine, large-scale infrastructure projects, like the building of roads, trains, ports, and power plants, are common in China. These investments support economic growth and regional integration by filling the infrastructural deficit in Africa.

James Mwangi, chief executive officer of Equity Group Holdings based in Kenya, said that China is an important source of investment for Africa and the largest export market for African countries. This strong support has enabled African nations to participate in global trade.

He said Africa welcomes advanced financial payment tools from China, which can help the continent achieve financial integration and inject new momentum into global financial infrastructure connectivity.

SOURCE People's Daily