Search News Results
Compact with Africa: Linking policy reforms with private investment
The G20, World Bank Group, International Monetary Fund, and African Development Bank are partnering in a new way to stimulate private investment in Africa
Over the past year, many working in international development have been asking about the G20 Compact with Africa: What exactly is it? What’s in it for African countries? How is it different from what we’re already doing? How does it complement or further the World Bank Group’s ongoing work?
Their curiosity reflects a growing awareness of the role the private sector must play in helping Africa achieve its development goals. The G20, in addition to its high-profile summits and communiques, undertakes some really important work through several “tracks”, including the finance track consisting of G20 finance ministers and central bank governors.
The basic premise of the Compact is that macroeconomic stability, an investor-friendly business environment, and effective financial sector intermediation are necessary conditions to spur private investment. Through improvements under these three “pillars”, the Compact seeks to catalyze increased private sector investment in Compact countries and to strengthen links between G20 initiatives, international organizations, and African countries. Under the Compact:
-
African countries commit to identify needed improvements under the three Compact pillars and to undertake relevant reforms. Many are addressing issues such as domestic revenue mobilization, Doing Business reforms, and easing constraints to SME financing.
-
The “International Organizations” – the World Bank Group, International Monetary Fund, and African Development Bank – agree to coordinate more closely, step up technical assistance to implement the identified reforms and increase support for infrastructure project preparation.
-
G20 members commit to encouraging their investors and companies to invest in Compact countries.
-
Compact teams in each country are the glue holding all this together. They are led by the country representatives of the international organizations and include senior government officials from finance, trade, and investment ministries.
-
A reform matrix developed by each Compact team prioritizes reforms that Compact partners commit to collectively addressing through a multi-year approach.
During the Spring Meetings, the Bank Group presented the first Compact Monitoring Report to the G20 finance ministers. During this first year, Compact countries made significant progress implementing macroeconomic reforms, with more work needed on business reforms and financial sector deepening. They also have produced brochures making the case for private investment.
The report urged Compact countries to undertake more focused diagnostics of sector-specific business constraints and to better prioritize needed reforms. We also recommended that the G20 work more intensively with their private sectors to generate interest about, and eventually investment in, Compact countries.
Three significant features of the Compact separate it from past practice:
-
It is a long-term initiative that reinforces the Bank Group’s Maximizing Finance for Development objectives. Typical Bank Group operations support countries through relatively short-duration investment or development policy operations. By encouraging a constant renewal of reform priorities as country circumstances evolve, the Compact’s open-ended approach makes it easier to sustain attention to institutional reforms over the decade and a half that research tells us is needed for sustainability. The reform matrix therefore offers the Bank Group an additional pathway to supporting reforms.
-
It provides for mutual accountability, continuous check-ins, monitoring, and transparency. Reform matrices are published on the Compact website. Virtual meetings of all the Compact teams and the G20 are held at least quarterly. And there is formal biannual monitoring. All this serves to build confidence about the investment readiness of Compact countries, even in smaller countries seldom mentioned in conversations about African investment.
-
It encompasses the entire continent. Africa initiatives have tended to segment the continent – Arab from Sub-Saharan, Francophone from Anglophone and so on. The Compact embraces Africa in a single initiative, creating conditions for multiple growth poles on the continent centered not just on South Africa in the south but also on countries like Morocco in the north. In this respect the Compact aligns with the ambitions of the recently announced African Continental Free Trade Area and the findings of De-fragmenting Africa that point to enormous opportunities for increased cross-border trade in Africa including in food products and basic manufactures – priority areas for several Compact countries.
The Compact with Africa underscores the idea that development is a joint effort with obligations, commitments, and contributions shared across developing countries, development organizations, and, increasingly, the private sector. In this it is consistent with the pathways now widely understood to be necessary to the achievement of both the Sustainable Development Goals and the Bank Group’s twin goals of eliminating extreme poverty and boosting shared prosperity.
Compact countries are Benin, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia.
Omowunmi Ladipo is an Advisor in the World Bank Group’s Governance Global Practice.
Related News
tralac’s Daily News Selection
African trade and business events to diarise:
-
Blue economy, inclusive industrialization and economic development in Southern Africa: Inter-Governmental Committee of Experts meeting (18-21 September, Mauritius)
-
A high-level summit during the United Nations General Assembly: Africa: Open for Business summit (26 September, New York)
Launched, today, in Lusaka: A business guide to the African Continental Free Trade Area Agreement (ITC)
The International Trade Centre today released a business guide that will help the private sector and policymakers better understand and navigate the recent African Continental Free Trade Area Agreement. A Business Guide to the African Continental Free Trade Area Agreement – which was formally presented to the AU Commissioner for Trade and Industry Albert Muchanga during the World Export Development Forum taking place in Lusaka – captures the current state of play of the provisions and protocols of the agreement. The guide provides insights into the business implications of AfCFTA with a view to equip stakeholders to both anticipate and influence policies. Enhanced knowledge of expanding markets and free movement of people provides African business with a unique opportunity to be the first movers in adjusting their business practices and exploring regional opportunities. The guide points out that the AfCFTA already has cooperation mechanisms in place, such as in addressing non-tariff barriers and in resolving disputes, that African businesses can benefit from as they seek to deepen their regional integration. Extracts (pdf):
Chapter 2: Protocol on trade in goods. Currently there is no consensus on the tariff modalities to govern goods trade liberalization. Since the Kigali Summit in March 2018, divergences have increased, culminating in the African Ministers of Trade adding to the options on the table regarding the ultimate level of ambition, at their last AMOT meeting in Dakar in June 2018.
The G7 (Djibouti, Ethiopia, Madagascar, Malawi, Sudan, Zambia, Zimbabwe) is arguing for greater flexibilities, and specifically that the final agreement should result in 85% liberalization, with the remaining 15% to be divided into a group of ‘sensitive’ and excluded baskets, the precise percentages of each to be determined. The remaining 48 Member States are agreed that the initial tariff cuts should result in reducing 90% of trade to zero, with opinion on the size of the sensitive/exclusion amounts divided. To complicate matters further, at their meeting on 3-4 June 2018, in Dakar, Senegal, African Ministers of Trade have questioned the wisdom of having an exclusion basket, since a number of the RECs do not, and there are concerns that having one will undermine the shared goal of doubling intra-African trade. These divergent positions have substantial implications for businesses wishing to access tariff concessions. Notable in this regard is that, by some estimates, excluding even 1% of intra-African imports from liberalization could result in no effective actual import liberalization, meaning the entire exercise could have been pointless. Therefore, how these debates are resolved is consequential for the AfCFTA project, and its outcomes should be closely monitored by companies seeking greater access to African markets.
Chapter 7: Roles and opportunities for the business community. As key stakeholders, the role of the business community in influencing the outcomes and successful implementation of the AfCFTA is important to ensure the potential benefits to business and the wider community are realized. Some of the specific ways in which African business can contribute to the AfCFTA negotiations include: Hiring experts (if in-house expertise is not available) to carry out reviews of draft texts and proposing new texts and amendments to existing texts using international best practice; Using existing national and regional business organizational structures to engage with national trade negotiators; Collaborating with other stakeholders involved on trade and integration issues to lobby governments and negotiators to take account of issues that may not come to the table (such as the concerns of informal cross-border traders) which nevertheless have an impact on the sustainability of the agreement and its protocols; Sharing data on challenges and successes of implementation to lobby governments.
AU, RECs coordination underpins successful implementation of ACFTA (COMESA)
Secretary General of COMESA, Ms Chileshe Kapwepwe, and the AU Commissioner of Trade and Industry, Mr Albert Muchanga, noted there were many overlapping activities between the COMESA-EAC and SADC Tripartite FTA and the ACFTA that needed to be harmonized. Ms Kapwepwe noted that the AU, as the continental body, was best placed to bring together all the RECs to coordinate activities related to the implementation of the AfCFTA. She said: “Such as forum would help in identifying areas of complementarity and overlaps that can be avoided to ensure the activities of the RECs feed into the achievement of their goals and that of the continent.”
Currently, seven countries have ratified the ACFTA while three have ratified the tripartite FTA. A minimum of 22 ratifications are needed for the ACFTA to enter into force while 14 are required for the TFTA. The seven are Kenya, Rwanda, Eswatini, Chad, Niger, Guinea and Ghana. Under the tripartite FTA, Kenya, Uganda and Egypt have ratified. The AU Commissioner said: “We are confident of getting the 15 remaining Member States to ratify the ACFTA by December this year and start implementation one month after. We have set 31 January 2019 as the commencement date of the implementation of the ACFTA.”
African countries need to develop a policy response to the digital economy (dti)
Dr Nimrod Zalk, industrial development advisor in the office of the Director-General of the SA Department of Trade and Industry, yesterday delivered the keynote address at a workshop convened in Pretoria by Global Economic Governance Africa and the African Trade Policy Centre. Dr Zalk highlighted that a global process of rapid technological change, involving unprecedented growth in digital information will have far reaching consequences for the South Africa and other African countries. The rise of digital platforms and e-commerce will reshape the retail sector and in turn have deep implications for developing countries’ industrialization processes, which have been at the heart of all successful cases of development. This requires African countries to develop policy responses that address the rise of digitization in ways that ensure the policy space to harness potential benefits and ameliorate negative consequences.
South Africa to participate in G20 trade ministers’ meeting (dti)
Changes brought on by the Fourth Industrial Revolution and the rise of inclusive global value chains will be at the centre of the G20 trade ministers’ meeting that gets underway on Friday. South Africa’s Trade and Industry Minister Rob Davies is set to attend the session in the resort city of Mar del Plata, in Argentina. The Department of Trade and Industry said the meeting will focus on key factors for G20 policy making to support participation and upgrading in inclusive Global Value Chains in the agricultural sector at regional and global level.
Investments in IDA countries: private participation in infrastructure, 2013 – 2017 (World Bank)
But it’s not all sunshine and roses for every IDA country. Indeed, these are outliers. Our pdf report (687 KB) notes that only 30 of the 75 IDA countries received private investments at all during the five-year period we measure. Even amongst them, almost half had only a single project in five years. Nevertheless, the good news here is that the trend line is picking up. In fact, 2017 was a stellar year compared to the past for private infra-investments in IDA countries - totaling $7.9bn across 35 projects and garnering 8.5% of total private investments in EMDEs in 2017, up from 4.3% in 2016. Also, private infra-investment as a share of GDP is more significant for IDA countries at 0.8% than non-IDA countries at only 0.3%.
Tuesday’s Quick Links: MTN and the multibillion-dollar perils of Nigeria’s regulatory minefield Ethiopia-Eritrea border reopens after 20 years ‘Direct existential threat’ of climate change nears point of no return, warns UN chief Pervasive corruption costs $2.6 trillion; disproportionately affects ‘poor and vulnerable’ says UN chief |
Related News
‘A Business Guide to the African Continental Free Trade Area Agreement’ launched at WEDF Zambia
ITC publication provides guidance for African businesses on how to best take advantage of the Continental Free Trade Area Agreement
The International Trade Centre (ITC) today released a business guide that will help the private sector and policymakers better understand and navigate the recent African Continental Free Trade Area Agreement (AfCFTA).
‘A Business Guide to the African Continental Free Trade Area Agreement’ – which was formally presented to the African Union Commissioner for Trade and Industry Albert Muchanga during the World Export Development Forum (WEDF) taking place in Lusaka, Zambia – captures the current state of play of the provisions and protocols of the agreement. The guide provides insights into the business implications of AfCFTA with a view to equip stakeholders to both anticipate and influence policies.
Aimed in particular to benefit Africa’s business community, the guide supports private-sector stakeholders, including trade and investment support institutions, to effectively engage in advocacy and public-private dialogue mechanisms, and play a key role in negotiating and implementing reforms resulting from the agreement. The elements included in the guide will also be important in helping micro, small and medium enterprises (MSMEs) in Africa map how they can utilise the AfCFTA to increase their regional competitiveness.
Enhanced knowledge of expanding markets and free movement of people provides African business with a unique opportunity to be the first movers in adjusting their business practices and exploring regional opportunities. The guide points out that the AfCFTA already has cooperation mechanisms in place, such as in addressing non-tariff barriers and in resolving disputes, that African businesses can benefit from as they seek to deepen their regional integration.
ITC Executive Arancha González reiterated the importance of the AfCFTA to all stakeholders. “The AfCFTA is a historical agreement that will be crucial in addressing competitiveness issues in Africa,” she said. “At a time when some around the world are turning away from increased integration it is important that Africa sees closer regional cooperation as important in creating jobs, supporting greater value addition and reducing poverty.”
She added that “this guide will prove invaluable for enterprises, entrepreneurs and policy makers who want to deepen their understanding of the AfCFTA and stay ahead of the curve”.
Albert M. Muchanga, African Union Commissioner for Trade and Industry, said: “The Business Guide to the AfCFTA will help ensure that the private sector – especially our MSMEs, women and youth entrepreneurs – take full advantage of the agreement. It breaks down the complexities of the AfCFTA into ideas and concepts that businesses will understand. It is timely, and of great value.”
‘A Business Guide to the African Continental Free Trade Area Agreement’ will also enable policymakers involved in negotiating and implementing the AfCFTA to be more aware of the needs of the private sector and include them in provisions related to trade in goods and services and free movement of people. It also explores forthcoming areas of the agreement such as intellectual property rights, investments and competition policy.
Roles and opportunities for the business community
Risks of trade liberalization
It has been observed that sometimes African institutions borrow policies from other regions without examining their institutional capacities.[1] Furthermore, trade liberalization on its own does not lead to lower poverty levels in the absence of financial sector development, rising education levels and strong governance structures.[2] This will require focus on providing social safety nets and safeguards for any negative effects of trade liberalization resulting from implementation of the AfCFTA, such as possible loss of tariff revenue, loss of jobs and livelihoods especially in the agricultural sector.[3]
According to UNECA and WTO (2017)[4], such initiatives may need intervention by development partners to ensure that tariff liberalization is implemented in tandem with trade facilitation reforms as envisaged in the BIAT and Agenda 2030 frameworks. When implementation of the AfCFTA includes trade facilitation, intra-African trade will be more sophisticated with increased share of industrial goods in total trade rather than agri-food exports or commodities.[5]
This has led some to be critical of the potential of the AfCFTA to integrate the continent given the mixed success in the achievement of integration for both goods and people at the REC level. Indeed, Nigeria delayed signing the AfCFTA Agreement in March 2018 partly due to the perception that there had not been enough consultations at the national level. Consequently, the Nigerian presidency directed the Nigerian Office for Trade Negotiations to carry out a nationwide, sectoral and industry-wide consultation and sensitization exercise from 15 March to 14 June 2018 across Nigeria’s geo-political zones.
These concerns may be justified given that the AfCFTA Agreement has not incorporated critical measures that promote beneficial relationships between government, private sector agencies and intermediary bodies to achieve trade facilitation, specifically notification requirements as provided for in Article 1 paragraphs 1.1 and Article 4 of the TFA, and opportunity to comment on new and amended legislation, and consultations as provided for in Article 2 of the TFA.
In terms of a business approach to the AfCFTA negotiations, the business sector needs to argue in favour of outcomes that are likely to be of benefit to the private sector and the countries in which they are situated. As Andriamahatana and Chidede (2018) say, ‘business communities are the actual traders and investors; responsible for moving goods and services across borders.’ This makes them key stakeholders whose views should be sought during the negotiations, and whose input should be seen as critical to the success of the AfCFTA.
The AU recognizes that a partnership approach will be required for success of the AfCFTA, the reason behind the holding of the AfCFTA Business Forum in Kigali, Rwanda, a day before the signing of the AfCFTA Agreement. The forum was co-sponsored by the AU and the African Import-Export Bank, and brought together government officials, representatives of the private sector, civil society and academia.
Engagement opportunities for African business
There are opportunities for African business to engage on issues related to the AfCFTA. For example, the AfroChampions Initiative is a set of innovative public-private partnerships and flagship programmes designed to galvanize African resources and institutions to support the emergence and success of African private sector multinational champions in the regional and global spheres. The Pan-African Chamber of Commerce & Industry (PACCI) is the focal point for 50 chambers of commerce and industry in the continent, which was established in 2009 to serve Africa’s business by promoting policies that foster continental economic integration, competitiveness and sustainable growth. Since implementation of both Phase 1 and Phase 2 AfCFTA issues will require innovation and leveraging technology, it would be important to involve the African Alliance for Electronic Commerce (AAEC), which brings together 18 member countries to promote and share experience about Single Window initiatives in Africa. In this regard AAEC has developed Guidelines for Single Window Implementation in Africa.
At the REC level, organizations such as the East African Business Council (EABC), the COMESA Business Council, the Association of SADC Chambers of Commerce & Industry (ASCCI) and the Federation of West African Chambers of Commerce & Industry (FEWACCI) continually engage with RECs and member chambers for inclusive dialogue to canvass private sector interests. Some organizations are specific to constituencies e.g. the Federation of National Associations of Women in Business Eastern and Southern Africa (FEMCOM).
These organizations, with the assistance of intergovernmental and international organizations such as UNCTAD, ITC, UNECA and AfDB, can help create and sustain partnerships for negotiating the AfCFTA. On issues of IPR, the two existing African IPR organizations (African Regional Intellectual Property Office, headquartered in Harare; and the Organisation Africaine de la Propriété Intellectuelle, headquartered in Yaoundé, will be expected to play an important role in addition to RECs and national intellectual property administrations.
In the words of Rwanda President and AU Summit Chair for 2018 at the AfCFTA Business Forum, to ‘raise ambitions even higher by focusing on implementation of Agenda 2063 after seeing what AU Member States can achieve when they come together, ratify the agreement and its protocols in accordance with national laws, and reform laws, procedures and practices at the national level to align them to the continental framework.’
The above extract is taken from Chapter 7 of A Business Guide to the African Continental Free Trade Area Agreement. The Guide provides context for the AfCFTA agreement, highlights on protocols, and the way forward for trade in goods and services as well as for subsequent negotiation areas that include investment, intellectual property rights and competition policy.
[1] Draper P, Chikura C. & Krogman H. (2016). Can Rules of Origin in Sub-Saharan Africa be Harmonized? A political economy exploration, Discussion Paper 1/2016. German Development Institute. Available at https://www.die-gdi.de/en/discussion-paper/article/can-rules-of-origin-in-sub-saharan-africa-be-harmonised-a-political-economy-exploration/
[2] Le Goff M. & Singh R.J. (2014). Does trade reduce poverty? A view from Africa. Journal of African Trade, 1, 5-14, at https://www.sciencedirect.com/science/article/pii/S2214851514000024
[3] UNECA (2016). Response by the African Trade Policy Centre at the United Nations Economic Commission for Africa to the Call for Written Evidence: Inquiry into Africa Free Trade Initiative (AFTi), retrieved from https://www.tralac.org/images/docs/9546/afti-inquiry-written-evidence-by-united-nationseconomic-commission-for-africa-2016.pdf
[4] United Nations Economic Commission for Africa & World Trade Organization (2017). Promoting Connectivity in Africa: The Role of Aid for Trade in boosting intra-African Trade. Available at https://www.tralac.org/images/docs/11872/promoting-connectivity-in-africa-executive-summary-uneca-atpc-wto-july-2017.pdf
[5] Valensisi G., Lisinge R. & Karingi S. (2014). Towards an Assessment of the Costs and Benefits of Implementing Trade Facilitation Measures in Africa. Trapca Working Paper, August. Retrieved from http://new.trapca.org/wp-content/uploads/2016/04/TWP1405-Towards-an-assessment-of-the-costs-and-benefits-of-TF-in-Africa.pdf
Related News
SA to participate in G20 trade ministers’ meeting
Changes brought on by the Fourth Industrial Revolution and the rise of inclusive global value chains will be at the centre of the G20 Trade Ministers’ Meeting, that gets underway on Friday.
South Africa’s Trade and Industry Minister Rob Davies is set to attend the session in the resort city of Mar del Plata, in Argentina.
The Department of Trade and Industry (dti) said the meeting will focus on key factors for G20 policy making to support participation and upgrading in inclusive Global Value Chains (GVCs) in the agricultural sector at regional and global level.
The meeting will also provide a platform for an exchange of experiences on how G20 countries can address the challenges associated with disruptive changes presented by the Fourth Industrial Revolution and leverage the opportunities in order to advance inclusive growth.
Speaking ahead of the gathering, Davies said GVCs have led to a reconfiguration of trade and investment flows.
“Location in the value chain is a critical determinant to how benefits are shared. African countries participate in GVCs mainly as suppliers of primary products. What is required is to preserve policy space to move-up the value chain into production of high-value products in order to promote meaningful participation in GVCs,” he said on Tuesday.
The Minister added that the Fourth Industrial Revolution is leading to unprecedented disruptions in trade and production.
“The G20 offers an opportunity for the exchange of views on global developments, regulatory framework and policy responses that facilitate leveraging the NIR and managing the challenges to promote inclusive growth,” said Davies.
SA’s participation in G20 Forum
For South Africa, the G20 engagements provide a platform to discuss, assess, and advance economic and policy issues, and for knowledge transfer on policy practices to foster the country’s development objectives.
It also provides a platform for the exchange of views on the current developments in global trade.
“The G20 Trade Ministers is taking place at a time when the multilateral trading system is facing unprecedented challenges. Of concern is the rise of trade measures that are not compatible with the World Trade Organization. The G20 Trade Ministers meeting will provide an opportunity for a dialogue on current developments in international trade and its implications for the global economy,” he said.
Davies further emphasises that South Africa’s participation at the ministerial meeting is to contribute to and shape global trade and investment policy debates by providing views from a developing country standpoint.
South Africa’s core objective in engaging in the G20 is to advance a development oriented perspective on all the issues under discussion that preserves policy space to advance South Africa and Africa’s development integration, promote inclusive growth and structural transformation.
Friday’s meeting will be preceded by the Trade and Investment Working Group meeting.
Related News
AU, RECs coordination underpins successful implementation of ACFTA
Closer coordination between the African Union and the Regional Economic Communities underpins the successful implementation of both the Continental and the Tripartite Free Trade Area Agreements.
Secretary General of COMESA Ms. Chileshe Kapwepwe and the Africa Union Commissioner of Trade and Industry Mr. Albert Muchanga noted there were many overlapping activities between the COMESA-EAC and SADC Tripartite FTA and the ACFTA that needed to be harmonized.
They were speaking at the COMESA Secretariat in Lusaka yesterday when Commissioner Muchanga paid a courtesy call on the Secretary General.
“The narrative of the regional economic communities being the building blocs of the ACFTA, should be promoted to ensure complementarity,” Ms. Kapwepwe said.
Ms. Kapwepwe noted that the AU, as the continental body, was best placed to bring together all the regional economic communities to coordinate activities related to the implementation of the Africa Continental Free Trade Area.
She said: “Such as forum would help in identifying areas of complementarity and overlaps that can be avoided to ensure the activities of the RECs feed into the achievement of their goals and that of the continent.”
Ms Kapwepwe who is the current chair of the Tripartite FTA Task Force, observed that the ACFTA had befitted immensely from the work done under the Tripartite framework and achieved faster progress.
Currently, seven countries have ratified the ACFTA while three have ratified the tripartite FTA. A minimum of 22 ratifications are needed for the ACFTA to enter into force while 14 are required for the TFTA. The seven are Kenya, Rwanda, Eswatini, Chad, Niger, Guinea and Ghana. Under the tripartite FTA, Kenya, Uganda and Egypt have ratified.
The AU Commissioner stressed the importance of having a champion at the head of State level to provide impetus to the ratification of the FTA adding that this had served the AU well and could be replicated at the RECs level.
Further, he said the AU has launched an advocacy campaign to bring more countries to ratify the ACFTA to attain the 22 minimum number of ratifications required. This includes launching a business guide to mobilize the business community to participate in the ACFTA.
“We are confident of getting the 15 remaining Member States to ratify the ACFTA by December this year and start implementation one month after,” Mr. Muchanga assured. “We have set January 31, 2019 as the commencement date of the implementation of the ACFTA.”
Ms. Kapwepwe pledged COMESA action towards mobilizing its member States to ratify both the ACFTA and the Tripartite FTA.
Mr. Muchanga informed that an AU-RECs summit will take place in July 2019 where issues of coordination will be high on the agenda.
The two cautioned on the existential threat to the ACFTA if African countries entered bilateral trade negotiations with global economic powers. This will undermine the successful implementation of the FTAs.
Related News
African countries need to develop a policy response to the digital economy
Workshop on Digital Transformation in Africa: Leveraging the Promise and Addressing New Challenges
Dr Nimrod Zalk, Industrial Development Advisor in the office of the Director-General of the Department of Trade and Industry, delivered the keynote address at a workshop convened by Global Economic Governance (GEG) Africa and the African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) on Monday, 10 September 2018.
Dr Zalk highlighted that a global process of rapid technological change, involving unprecedented growth in digital information will have far reaching consequences for the South Africa and other African countries.
The rise of digital platforms and e-commerce will reshape the retail sector and in turn have deep implications for developing countries’ industrialization processes, which have been at the heart of all successful cases of development. This requires African countries to develop policy responses that address the rise of digitization in ways that ensure the policy space to harness potential benefits and ameliorate negative consequences.
Zalk emphasised that there are a number of domains that African countries need to take into consideration in forging a policy response to the rise of digitalisation.
-
First countries need to secure the policy space in multi-lateral, regional and bi-lateral fora and processes to develop responses to digitization that are tailored to domestic conditions and policy considerations.
-
Second, as data becomes the “primary resource” of an increasingly digitalized economy countries need to secure a degree of national sovereignty with respect to issues of data ownership, privacy, cybersecurity, structural transformation and economic inclusion objectives.
-
Third, national taxation systems need to adapt to the rise of e-commerce and digital platforms. This requires ensuring an appropriate taxation regime in relation to e-commerce and other digital and their suppliers and to address issues of transfer pricing and profit shifting to low taxation jurisdications.
-
Fourth, policy must address issues of market dominance, competition and market access. The EU has for instance begun to put in place competition policy responses to the impact of network effects that attract users to the largest and fastest growing platforms which result in “winner-takes-most” outcomes.
-
Fifth, developing countries need to develop digital industrial capabilities including ensuring high speed and cheap broadband, building linkages between digital platforms and domestically produced goods and services, the provision of industrial financing instruments to do so and the adaptation of technology and skills curricula and institutions to new digital realities.
He stated that the manner in which the rise of the Fourth Industrial Revolution and digitization are conveyed, are often in hyperbolic terms which tend to assume either unbridled opportunities to “leapfrog” into a brave new world or a disastrous collapse in employment. Rather than assuming either of these extreme outcomes, African countries need to actively engage in understanding and developing appropriate policy responses to the implications of expedited technological change.
Related News
tralac’s Daily News Selection
EAC trade and regional integration events scheduled for this week:
Extraordinary meeting of the Sectoral Council on Trade, Industry, Finance and Investment (10-14 September, Arusha)
Implementation of study recommendations for interoperability of card switches and cross border payments (10-14 September, Nairobi)
Forum on China-Africa Cooperation: Beijing Action Plan – 2019-2021 (MFA China)
Extracts from the trade section (3.8): The African side appreciates China’s efforts in implementing the China-Africa trade and investment facilitation plan to promote trade connectivity in Africa by strengthening African countries’ customs and taxation law enforcement capabilities and upgrading customs and transportation facilities. China will continue to work with Africa in such areas as market access, personnel training and customs.
China supports the building of the African Continental Free Trade Area, will continue to hold free trade negotiations with interested African countries and regions, and will actively explore cooperation possibilities with the African side following the principle of mutual benefits and openness.
China supports Africa in boosting its export and has decided to increase imports, particularly non-resource products, from Africa, with a focus on value added agricultural produce and industrial products. China supports Chinese local governments and business councils and associations in organizing companies to carry out trade promotion activities in Africa and will hold, on a regular basis, marketing activities for Chinese and African brand products. China supports African countries in participating in the China International Import Expo. The least developed African countries participating in it will be exempted from paying exhibition stand fees. China welcomes participation of African companies in the China Import and Export Fair, the China International Agricultural Trade Fair and other important trade fairs, and will provide preferential and facilitating measures where necessary.
China will continue to materialize its pledge of zero-tariff treatment for 97% of tax items from African LDCs having diplomatic relations with China, deliver on this policy upon the bilateral exchange of notes, and take effective measures to make it easier for the recipient countries to benefit from this policy.
China supports Chinese companies’ mutually beneficial cooperation with the African side, encourages financial institutions to provide export credit and export credit insurance to key projects such as railway, telecommunications and power projects undertaken by Chinese companies on the premise that risks are under control and supports the setting up of a $5bn special fund for financing imports from Africa. The two sides welcome and support the establishment of the China-Africa Private Sector Forum.
Fourth Investing in Africa Forum: selected, related updates
-
China Development Bank, Afreximbank trade finance collaboration. China Development Bank has signed an agreement providing a $500m facility to the African Export-Import Bank to enable the African trade finance bank support trade enabling infrastructure projects across the continent. The facility will also be used to support Afreximbank’s trade finance intermediaries to provide medium to long term financing for sub-projects in various sectors, including energy, telecommunication, transportation, agriculture, medical sector, industrial park or any related trade finance transactions. The facility carries a 10-year tenor. Zheng Zhijie Liu, Vice Chairman and President of CDB, and Prof. Benedict Oramah, President of Afreximbank, signed the facility agreement on behalf of their two institutions during a ceremony held on the sidelines of the “4th Investing in Africa Forum” which took place in Changsha.
-
Fourth Investing in Africa Forum yields agreements worth $1.371bn across agriculture, industry, energy, industrial park construction and health sectors. “Africa has become an important continent for Hunan province regarding overseas investment and cooperation,” said Du Jiahao, Secretary of the CPC Hunan Provincial Committee and chairman of the Standing Committee of the Hunan Provincial People’s Congress in the opening ceremony of the forum. In 2017, the province invested $2.07bn in Africa, while from January to July this year, the volume of imports and exports between Hunan province and Africa increased by 49.5% compared with the previous year, said Du.
-
ECA and GEIDCO cooperation agreement. The ECA Executive Secretary Vera Songwe attended the Forum on African Energy Interconnection Development (4 September), organized by Global Energy Interconnection Development and Cooperation Organization (GEIDCO) and attended by over 400 Chinese and African energy experts. The main objectives of the Forum were to present the findings of GEIDCO research on African energy interconnection planning, promote key energy projects in Africa, and the highlight cooperation between China and Africa in clean energy development and energy interconnection. She delivered opening remarks in which she stressed the important role of global and African energy interconnection as well as clean energy development in achieving the Sustainable Development Goal of universal access to electricity by 2030. She also emphasized the nexus between Africa’s regional transport corridors and cross-border energy interconnection as well as the implications for the Belt and Road Initiative. A cooperation agreement between ECA and GEIDCO was signed at the end of the Forum.
-
South Africa, China enhance enhance cooperation on sanitary and phytosanitary matters. Minister Zokwana and Vice Minister Zhang committed to continue to cooperate on market access matters and resolved that South Africa will host the 7th Sanitary and Phytosanitary Cooperation meeting in November 2018. The 7th SPS Cooperation meeting is expected to discuss animal quarantine, plant quarantine and food safety matters in the quest to facilitate trade in agriculture, forestry and fisheries products. Minister Zokwana and Vice Minister Zhang urged technical experts to work on priority lists for sector trade. Minister Zokwana reported that South Africa is currently compiling a list of new and compliant export facilities to export beef and lucerne to China. The new facilities will have a strong focus on smallholder farmers and businesses. The objective is to broaden participation of smallholders in accessing markets and ensuring the continued revitalization of agriculture and agro-processing value chain. The compliance of the new establishments will be subject to further assessments by China before permission is granted for exports.
-
65 CSOs oppose China’s $15bn bauxite development plan in Ghana’s forests, citing social and environmental risks. The number includes 37 CSOs in Ghana, 11 from Africa and 17 of them operating outside the African continent. An agreement, already signed between Ghana and China for the Chinese government to support bauxite development in Ghana, is funded by the Chinese Development Bank at $10bn, with the project’s key developer being, the China Railway Engineering Corporation. The CSOs, in a statement, indicated that China Development Bank’s signing of the UN Global Compact, and its membership of UNEP’s Finance Initiative, both of which are designed to ensure that signatories take a precautionary approach to development projects, which could have probable negative impacts on the environment and people, especially affected communities, is being compromised by the bank.
-
Businesses push for direct Yuan conversion in Ghana. Executive Member of the Ghana Union of Traders Association Benjamin Yeboah said the introduction of the Chinese Yuan will be of great benefit to businesses in Ghana. “We are always using the dollar as the rate in accessing the strength of the cedi. Therefore most at times, people have to change to that medium, the dollar in trying to bring goods down to Ghana. Majority of our members or traders usually ply their trade from China and therefore using the Yuan as a medium is a great idea so that should one attain the Yuan here, in terms of trying to bring in goods, it builds that much pressure on the Dollar where we are all choosing to secure and bring goods in from China. It will help a lot, bring pressure lower to bear on the dollar and who know, it can even help the strength of the cedi. So it is a good idea, and I think it should be explored” he explained.
ECOWAS: Regional experts validate supplementary act aimed at improving customs operations
Customs experts from member states of ECOWAS have urged the Commission to support the implementation of the Supplementary Act on Mutual Administrative Assistance and Cooperation between Customs Administrations in the region. The experts who met in a three day meeting from 4th to 6th September 2018 in Abuja, Nigeria to review and amend the draft Supplementary Act also called for the computerisation of customs offices in Member States for better interconnectivity of Customs computer systems. The ECOWAS Commission’s Commissioner for Trade, Customs and Free movement, Tei Konzi stated that this would help improve the exchange of information and strengthen cooperation amongst Customs operatives in the region.
Namibia: Economic Governance and Competitiveness Support Programme Phase II appraisal report (AfDB)
EGCSP II is carefully designed to build on the policy measures and achievements of EGCSP I by consolidating the gains already recorded. Following Board approval of the first phase on 10th May 2017 and disbursement of the resources in June 2017, the Bank maintained constant dialogue with the Authorities. The dialogue centred on the fiscal consolidation efforts, structural measures to support public sector efficiency and business environment reforms, with particular emphasis on industrialization. Many of the measures are designed to build on and help operationalise some of the transformational policy and legal frameworks passed under Phase I, including the PPP Act, NAMRA Act and the Public Procurement Regulations. An assessment of program implementation so far shows that it has yielded immense benefits for Namibia in a number of ways:
Supporting entrepreneurs at the local level: the effect of accelerators and mentors on early-stage firms (World Bank)
We investigate the association between entrepreneurship support programs and the likelihood of receiving funding for early-stage firms. We use a novel database of 2,887 early-stage technology companies from nine local ecosystems (including Cairo and Dar es Salaam) in eight countries that includes data about the founders’ demographic characteristics, educational background, work experience, and entrepreneurial history; we also use data about the start-ups’ history and evolution that follow their progress through support programs and early-stage funding. We isolate two support interventions—acceleration and mentorship—that the literature has found to have a larger effect on a firm’s performance, and we test if such effect is supported from an ecosystem perspective.
Monday’s Quick Links: SADC Secretariat, China explore peace and security cooperation, SADC Regional Logistics Depot Report on the OECD workshop on Regional Trade Agreements and the environment (pdf) Closing the gender gap in extractives: what has been done and what have we learned? |
Related News
Forum on China-Africa Cooperation Beijing Action Plan (2019-2021)
1. Preamble
1.1 The 2018 Beijing Summit and the Seventh Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) was held in Beijing from 2 to 4 September 2018. Heads of State and Government, Heads of Delegation, the Chairperson of the African Union Commission, Ministers of Foreign Affairs and Ministers in charge of economic cooperation from China and 53 African countries (hereinafter referred to as “the two sides”) attended the Summit and the Ministerial Conference respectively.
1.2 The two sides reviewed with satisfaction the development of relations between China and Africa, and commended the Forum for its well-developed structure and improved efficiency over the past 18 years since its inception, and for its contribution in substantiating China-Africa relations, advancing in-depth China-Africa cooperation across the board and leading and promoting international cooperation with Africa. The two sides agreed that the existing mechanisms of the Forum should be maintained.
1.3 The two sides are encouraged by the comprehensive and effective implementation of the ten cooperation plans and the follow-up actions of the Forum on China-Africa Cooperation Johannesburg Action Plan (2016-2018), and decide to, in the spirit of the Beijing Declaration – Toward an Even Stronger China-Africa Community with a Shared Future, jointly advance Belt and Road cooperation, further strengthen the forward-looking China-Africa comprehensive strategic and cooperative partnership, and build an even stronger China-Africa community with a shared future for the benefits of both peoples.
1.4 The two sides are of the view that, as China, the largest developing country, works to realize the two centenary goals and the Chinese dream of national rejuvenation, and as Africa, the continent with the most developing countries, implements Agenda 2063 and is striving to build an integrated, prosperous and peaceful continent, the two sides share similar philosophies, compatible strategies and complementary strengths in terms of development. The two sides will take the Belt and Road Initiative as an opportunity to strengthen multi-dimensional, wide-ranging and in-depth cooperation for mutual benefits and common development.
1.5 The two sides believe that Africa is an important partner in Belt and Road cooperation, and pledge to leverage the strengths of the Forum and support China and Africa in jointly building the Belt and Road.
1.6 China will act in the principles of sincerity, real results, affinity and good faith, uphold justice while pursuing shared interests, and focus on supporting Africa’s capacity-building for internally-driven development in view of Africa’s aspiration to reduce poverty, improve people’s livelihood, attract more investment and boost export, and will continue to increase input and scale up cooperation with Africa.
1.7 To implement the outcomes of the Summit and the Conference, and to chart the course of China-Africa friendly and mutually beneficial cooperation across all fields in the next three and even more years under the theme of “China and Africa: Toward an Even Stronger Community with a Shared Future Through Win-Win Cooperation”, the two sides jointly formulate and adopt with consensus this Action Plan.
1.8 China will, on the basis of the ten cooperation plans already adopted, launch eight major initiatives including an industrial promotion initiative, an infrastructure connectivity initiative, a trade facilitation initiative, a green development initiative, a capacity building initiative, a health care initiative, a people-to-people exchange initiative and a peace and security initiative in close collaboration with African countries in the next three years and beyond, to support African countries in achieving independent and sustainable development at a faster pace. The content of the eight major initiatives will be reflected in the following articles of this Action Plan.
2. Political Cooperation
2.4 China, the African Union and Africa’s Sub-regional Organizations
2.4.1 The two sides recognize the important role of the African Union in safeguarding peace and stability and promoting the integration of Africa. The African side appreciates China’s efforts and contribution in promoting peace, stability and development in Africa.
2.4.2 The two sides agree to consolidate and strengthen the momentum of friendly exchanges between China and the African Union and Africa’s sub-regional organizations to enhance strategic trust and practical cooperation.
2.4.3 China appreciates the positive role of the African Union Commission since joining the FOCAC, and welcomes the establishment of an African Union Representative Mission in Beijing.
2.4.4 China will continue to engage with the African Union and sub-regional organizations of Africa through various consultations and dialogues to strengthen communication over the economic development of Africa and its sub-regions and important regional issues. China will continue to support the capacity building of the African Union and Africa’s sub-regional organizations.
2.4.5 China applauds the signing of the African Continental Free Trade Agreement. The two sides will explore ways to further cooperate in the Free Trade Area.
3. Economic Cooperation
3.1 Agriculture, Food Security and Food Safety
3.1.1 Africa commends China’s efforts in actively implementing the China-Africa agricultural modernization plan and appreciates the emergency food aid provided by China since the previous Summit, which has helped alleviate the crises of recipient countries and improved their food security. China will, in view of the urgent needs of African countries, continue to provide food aid, and is assured of the support and cooperation from the African side in this regard.
3.1.2 China supports Africa’s agricultural modernization and will help Africa upgrade the industry and agricultural infrastructure, increase agricultural productivity and the value added of agro-products, improve Africa’s ability to ensure food security, invest in testing and adaptation of machines to African conditions, establish African dealerships capable of after-sale support and service, support township and village industries’ development, promote inclusive growth and shared prosperity and support Africa in achieving general food security by 2030.
3.1.3 China will work with Africa to formulate and implement a program of action to promote China-Africa cooperation on agricultural modernization, implement 50 agricultural assistance programs, provide RMB 1 billion of emergency humanitarian food assistance to African countries affected by natural disasters, send 500 senior agriculture experts to Africa, and train entrepreneurs in agri-business.
3.1.4 In view of the challenges in Africa on food security and the need for increase in food production, China supports Africa in enhancing productive capacity in agriculture which comprises promotion of high-tech food production and agro-processing. The two sides will encourage sustainable agriculture and organic farming through enhanced food safety and food security, environment friendly production techniques and efficient management of natural resources which include the use of renewable energy and water savings system to reduce production cost and increase resilience to climate change.
3.1.5 The two sides will work together to improve food security risk management systems and establish an emergency response mechanism and China will support its operationalization. Africa appreciates China’s efforts in carrying out agricultural technology capacity services, implementing senior agriculture technician exchange programs, training young leaders in agricultural development, carrying out cooperation in such areas as scientific research, technical training, and technology transfer, and supporting Africa in building a whole agricultural value chain from production, processing to marketing. China will continue to enhance consultation and cooperation on the planning and designing of agricultural policy with Africa, and support its implementation of the Comprehensive African Agriculture Development Program (CAADP), including AU-led programmes and activities on food safety.
3.1.6 China will provide assistance in terms of capacity building, technology transfer through exchange of scientists and development of new research thrusts in the crops, including molecular detection and identification of plant diseases, pest risk analysis, seed health testing/certification, and management of quarantine containment facilities for high risk materials with biosecurity levels.
3.1.7 The two sides will work together to institutionalize China-Africa agricultural cooperation. The two sides will set up a China-AU Agriculture Cooperation Commission, hold China-Africa Agriculture Cooperation Forum regularly, enhance human resources cooperation, improve the “10+10” cooperation mechanism between Chinese and African agricultural research institutes, and train young researchers in agri-science for Africa.
3.1.8 The two sides will establish a China-Africa Research Center for the Development of Green Agriculture, and actively advance cooperation between Chinese and African agribusinesses and social organizations. The two sides will undertake wide-ranging activities such as investment promotion, technical exchanges, joint research and strengthening of extension services.
3.1.9 The Chinese side will strengthen cooperation with cotton-producing African countries to help establish high quality standards and enhance their capacity for industrial planning, production, processing, storage, transportation and trade, move them up the cotton production value chain, and expand Africa’s market share in the international cotton market.
3.1.10 In addition, China will foster and further develop the China-Africa cooperation with regard to the sugar cane sector. China will explore possibilities to facilitate trade of sugar products with high potentials.
3.1.11 Both sides will work together in the agro-industrial sector to increase the capacity of agri-entrepreneurs to export their products on the regional market and enhance skills of farmers at grass root level in modern farm management techniques. China and Africa will also explore avenues of collaboration with regard to livestock in terms of technical cooperation in waste treatment system.
3.2 Industry Partnering and Industrial Capacity Cooperation
3.2.1 China and Africa have mutual needs and complementary advantages in industry partnering and industrial capacity cooperation. The two sides will fully tap into China’s strengths in equipment and technology, draw on the complementarity of the industrial supply and development needs of the two sides, and promote the growth of real economies.
3.2.2 China encourages policy-based financial institutions, developmental financial institutions, the China-Africa Development Fund, the China-Africa Fund for Industrial Cooperation and the Special Loan for the Development of African SMEs to scale up support for China-Africa industrial capacity cooperation to boost the industrialization of Africa.
3.2.3 The two sides will advance industrial capacity cooperation along with the implementation of the Belt and Road Initiative and in line with the Agenda 2063, make best use of industrial capacity cooperation mechanisms, work for tangible results from various projects, and leverage the exemplary role of large projects in strengthening such industrial capacity cooperation. China has decided to open a China-Africa economic and trade expo in China.
3.2.4 China will step up support in the development of industries in Africa including processing and manufacturing and the development of special economic zones and industrial parks, and support Chinese private enterprises in setting up industrial parks in Africa and carrying out technology transfer, to help African countries build more diversified economies and stronger capabilities for self-driven development.
3.2.5 African countries will continue to improve the legal framework and infrastructure, and provide efficient and results-oriented government services wherever possible to create a more enabling environment for attracting investment from Chinese enterprises and for industrial capacity cooperation.
3.3 Infrastructure Development
3.3.1 China and Africa applaud the joint implementation of the China-Africa infrastructure cooperation plan. The two sides will aim to pursue efficient and high-quality development, focus on the economic and social benefits of projects, step up mutually beneficial cooperation for the planning, design, construction, operation, maintenance and good governance of infrastructure projects and maintain the sustainability of the debt of relevant African countries. China supports Chinese enterprises in utilizing their advanced equipment and technology, and their expertise in standards and service to help African countries improve infrastructure and connectivity.
3.3.2 The two sides will, in view of the cross-border and trans-regional infrastructure development plans of Africa, and by taking into consideration the real needs of African countries and economic and social returns of relevant projects, explore and advance cooperation on projects promoting continental, regional and sub-regional connectivity. China has decided to jointly formulate a China-Africa infrastructure cooperation plan with the African Union. China will support Chinese companies in participating in Africa’s infrastructure development by way of investment-construction-operation or through other models, with focus on enhancing cooperation on energy, transport, information, telecommunications and cross-border water resources. China will work with Africa to undertake a number of key connectivity projects.
3.3.3 China will, under the China-Africa Regional Aviation Cooperation Program, provide regional aircraft for civilian use, train aviation professionals for Africa, provide capacity building to enable compliance with ICAO standards and recommended practices and support Chinese companies in setting up joint ventures with African airlines and African businesses and participating in the building of airports and other auxiliary infrastructure to advance Africa’s regional aviation .
3.3.4 China will support Africa in developing the Single African Air Transport Market. The two sides will support each other in the goal of aviation market access, the realization of the Single African Air Transport Market, a flagship project of AU Agenda 2063 and the opening of more air routes and sea lanes connecting China and Africa by Chinese and African airlines and shipping companies as appropriate. The two sides will actively study the feasibility of signing a more liberal and flexible agreement in order to enhance cooperation in aviation market access. China encourages and supports investment by competent Chinese enterprises in sea ports, airports and aviation companies of Africa, and the African side welcomes such investment. The two sides will continue the cooperation in communication, remote sensing satellite and their application.
3.3.5 The two sides will, in recognition of the strategic and far-reaching impact of information and communication technology (ICT) on economic and social development, enhance exchanges and cooperation between competent authorities, share good practice in each other’s ICT development, seize the opportunity presented by the digital economy, and encourage companies to carry out cooperation in ICT infrastructure, the internet and the digital economy.
3.3.6 The two sides will actively explore and advance cooperation in the application of new technologies including cloud computing, big data, and the mobile internet. China will support African countries in building “smart cities” and enhancing the role of ICT in safeguarding public security, counter terrorism and fighting crime and work with the African side to uphold information security.
3.3.7 Both sides encourage and support their companies to participate and partner in the building of ICT infrastructure of African countries, including optical fiber cable backbone networks, cross-border connectivity, international undersea cable, new-generation mobile network, and data center and cooperate in a mutually beneficial way in the construction, operation and service of relevant infrastructures.
3.3.8 The two sides will enhance cooperation at the International Telecommunication Union (ITU) and other international organizations, and step up coordination on training, Internet connectivity and the building of innovation centers. Both sides are ready to cooperate on strategic consultations on ICT policy-making and development, and to work together to narrow the digital divide and promote the building of an information society in Africa.
3.4 Energy and Natural Resources
3.4.1 China and Africa will enhance policy dialogue and technological exchanges on energy and resources, coordinate each other’s energy and resource strategies, conduct joint research, and formulate energy development plans that are operable and based on local conditions. The two sides will work together for the establishment of a China-Africa Energy Cooperation Center in Africa to further advance energy exchanges and cooperation.
3.4.2 The two sides encourage and support Chinese and African companies, while upholding the principle of mutual benefits, to work together in energy trade and the investment, development and operation of energy projects, carry out demonstration projects in green energy financing, and explore green and sustainable ways of energy cooperation. China will support the development of renewable energy, mainly solar energy in Africa as well as the use of battery storage and strengthening of the electricity grid.
3.4.3 The Chinese side supports Africa’s capacity-building in the energy sector, and will provide professional training for personnel from competent authorities, research institutions and key companies of relevant countries to improve Africa’s capabilities in developing and managing their own energy systems.
3.4.4 The Chinese side will, on the basis of respecting the will of African countries, explore third-party cooperation with Africa in the energy sector, where each side can leverage their strengths, provide policy recommendation for Africa’s energy development, and work for progress of relevant projects.
3.4.5 The two sides will actively consider the joint establishment of a China-Africa Geoscience Cooperation Center for joint research on national resources sustainability and environment, in order to gain greater ability for the sustainable development and utilization of national resources by the respective countries.
3.5 Ocean Economy
3.5.1 The two sides recognize the enormous potential of maritime economic cooperation and will work to promote blue economy cooperation for mutual benefits.
3.5.2 China will continue to provide funds and technical support under the framework of technical cooperation of the International Maritime Organization, and work with African countries to train shipping professionals and strengthen capacity-building to promote the sustainable development of maritime shipping.
3.5.3 The two sides will strengthen exchanges and cooperation between sea ports. China will provide technical assistance to African countries in the drawing-up of plans for building coastal and special marine economic zones, the development of sea ports and adjacent industrial parks, and the planning of marine industries, and support IT development and application in African sea ports. China will step up cooperation with Africa to promote the blue economy, and carry out closer investment and financing cooperation with Africa.
3.5.4 The two sides will actively consider jointly building a China-Africa Cooperation Center for Ocean Science and Blue Economy. The two sides will continue to enhance cooperation and exchanges in offshore aquaculture, maritime transportation, shipbuilding and repair, offshore wind power, maritime information services, maritime security, marine resources development, the protection and management of islands, scientific research, ocean monitoring and polar research, among others.
3.5.5 The two sides encourage more exchanges and cooperation among Chinese and African maritime institutes and marine research institutes. China will support African countries in their marine capacity building by providing technical support and training programs.
3.5.6 China supports Africa in the capacity-building of maritime law-enforcement and environment protection to ensure the security of maritime resources and promote maritime development and cooperation and the promotion of sustainable approaches that are environmentally, socially and economically effective through the Blue Economy.
3.6 Tourism
3.6.1 China welcomes more African countries to become destinations for Chinese tour groups. The two sides will roll out visa facilitation policies as appropriate and streamline customs procedures to enable easier traveling so that mutual tourist visits could steadily increase.
3.6.2 The two sides will continue to invite one another to attend tourism exhibitions and hold promotion events to build platforms for experience sharing, business negotiations and products promotion for Chinese and African government agencies and tourism businesses.
3.6.3 The two sides encourage local governments and travel and tourism trade companies to enhance dialogue, cooperation and mutual visits, expand two-way investment and step up the sharing of information and experience through various channels with a view to improving connectivity and exchange of tourists.
3.6.4 The two sides encourage capacity building and training exchange programs for employees of the tourism industry and industry partners to improve quality of service. The two sides will collaborate in enhancing infrastructure relevant to development of the tourism industry in Africa including promotion of cruise tourism and stop overs in African countries.
3.7 Investment and Economic Cooperation
3.7.1 Africa appreciates China’s efforts in implementing the China-Africa industrialization plan, promoting industrial partnering and production capacity cooperation, building or upgrading industrial parks and other economic and trade cooperation zones, and providing effective and sustainable basic vocational training for African workforce to help Africa translate its population dividends into development strength. China will continue to support Africa’s efforts in advancing economic transformation, improving industrial competitiveness, and generating more jobs.
3.7.2 The two sides will continue to encourage and support mutual investment, reduce investment barriers, and cooperate towards the negotiation, signing, renewal and implementation of Bilateral Investment Treaty, to put in place a more enabling environment for mutual investment. China will encourage Chinese companies to increase investment in Africa, build and upgrade a number of economic and trade cooperation zones in Africa. China will encourage Chinese companies to make at least US$10 billion of investment in Africa in the next three years, support Chinese companies in Africa to forge alliance of corporate social responsibilities and support Africa’s efforts to harmonize policies, laws and regulations pertaining to private sector investment in regional projects.
3.7.3 The two sides will make good use of the Chinese initiative towards Africa and all its relevant tools, make good use of the CADFUND and the China-Africa Fund for Industrial Cooperation to encourage Chinese companies to invest in Africa, and make good use of the Investing in Africa Forum to enhance the sharing of development experience and step up cooperation in production capacity, trade and investment. The two sides will share information about investment policies, opportunities and regulations, recent economic developments and mutual fields of cooperation. The two sides will give full play to the role of the Investing in Africa Think Tank Union in providing intellectual support to improve Africa’s investment environment and attract more investment in sectors with mutual interest.
3.7.4 The two sides will continue to carry out practical tax cooperation. China will support African countries to improve tax collection and administration capabilities through technical assistance and personnel training. The two sides will negotiate, sign, and implement agreements on the avoidance of double taxation and resolve cross-border tax disputes to create a favorable taxation environment for China-Africa trade and investment.
3.8 Trade
3.8.1 The African side appreciates China’s efforts in implementing the China-Africa trade and investment facilitation plan to promote trade connectivity in Africa by strengthening African countries’ customs and taxation law enforcement capabilities and upgrading customs and transportation facilities. China will continue to work with Africa in such areas as market access, personnel training and customs.
3.8.2 China supports the building of the African Continental Free Trade Area, will continue to hold free trade negotiations with interested African countries and regions, and will actively explore cooperation possibilities with the African side following the principle of mutual benefits and openness.
3.8.3 China supports Africa in boosting its export and has decided to increase imports, particularly non-resource products, from Africa, with a focus on value added agricultural produce and industrial products. China supports Chinese local governments and business councils and associations in organizing companies to carry out trade promotion activities in Africa and will hold, on a regular basis, marketing activities for Chinese and African brand products. China supports African countries in participating in the China International Import Expo. The least developed African countries participating in it will be exempted from paying exhibition stand fees. China welcomes participation of African companies in the China Import and Export Fair, the China International Agricultural Trade Fair and other important trade fairs, and will provide preferential and facilitating measures where necessary.
3.8.4 China will continue to materialize its pledge of zero-tariff treatment for 97% of tax items from African LDCs having diplomatic relations with China, deliver on this policy upon the bilateral exchange of notes, and take effective measures to make it easier for the recipient countries to benefit from this policy.
3.8.5 China supports Chinese companies’ mutually beneficial cooperation with the African side, encourages financial institutions to provide export credit and export credit insurance to key projects such as railway, telecommunications and power projects undertaken by Chinese companies on the premise that risks are under control and supports the setting up of a US$5 billion special fund for financing imports from Africa. The two sides welcome and support the establishment of the China-Africa Private Sector Forum.
3.8.6 China will actively expand trade in services cooperation with Africa, enhance information sharing and capacity-building, help Africa train more professionals in the service trade and outsourcing, and enhance cooperation, exchanges and training in relevant areas.
3.8.7 China will continue to strengthen exchanges and cooperation on market regulation and between customs authorities. China will support African countries to improve their customs management and modernization, expand cooperation with Africa on customs clearance facilitation, law enforcement and capacity-building, jointly fight the smuggling of endangered species and their products, counterfeit products, commercial fraud and other crimes and implement 50 trade facilitation programs for Africa, to promote a healthy and growing China-Africa trade.
3.8.8 China will set up relevant mechanisms to promote e-commerce cooperation with Africa, including helping improve export management, establishing an internet-visa system (where appropriate), and advancing trade facilitation via the use of electronic certificates.
3.8.9 China will step up exchanges and cooperation with African countries on standards and measurement, and support Africa’s capacity-building in this area.
3.8.10 To promote mutually beneficial cooperation, the Chinese side will continue to facilitate the opening of businesses by African countries in China and protect the legitimate rights and interests of companies in China invested by African countries.
3.9 Finance
3.9.1 China will extend loans of concessional nature, export credit line and export credit insurance to African countries, make the loans reasonably more concessional, create new financing models and improve the terms and conditions of the credit to support China-Africa Belt and Road cooperation and industrial capacity cooperation, and the infrastructure construction, development of energy and resources, agriculture, manufacturing and the comprehensive development of the whole industrial chain of Africa. China will extend US$20 billion of credit lines and support the setting up of a US$10 billion special fund for development financing.
3.9.2 In its investment and financing cooperation with Africa, China is committed to the principles of no political strings, mutual benefits and efficient development, supports Africa’s pursuit of diversified and sustainable development, and will make active efforts to help African countries improve debt sustainability and achieve internally-driven development and mutually-reinforcing economic and social development.
3.9.3 Africa welcomes the Guiding Principles on Financing the Development of the Belt and Road. China will strengthen cooperation with the African Development Bank and other multilateral development banks in Africa, and properly manage the follow-up investment of the Africa Growing Together Fund (AGTF).
3.9.4 China supports stronger cooperation between the policy banks, developmental financial institutions, commercial banks, multilateral financial institutions, equity investment funds and export credit insurance institutions of the two sides, and supports the establishment of China-Africa Developmental Financing Forum and China-Africa Financial Cooperation Consortium to provide more diversified financing packages for African countries. The two sides will step up efforts to unlock investments from institutional investors that tend to make long-term investments such as insurers and sovereign wealth funds.
3.9.5 On the basis of following multilateral rules and procedures, the two sides will enhance cooperation under the framework of the Asian Infrastructure Investment Bank, the New Development Bank, the Silk Road Fund, the World Bank, the African Development Bank (AfDB) and other multilateral developmental organizations, and jointly contribute to promoting infrastructure building and sustainable development.
3.9.6 China will continue to strengthen cooperation with African countries in local currency settlement. The two sides will expand the use of local currencies in bilateral trade, investment and financing, and support RMB settlement in Africa. China welcomes and will facilitate the issuance of panda bond by Africa’s sovereign, multilateral and financial institutions in the Chinese bond market to diversify the financing channels of African market entities. China will work to facilitate holding of RMB by African countries as a reserve currency.
3.9.7 The two sides will encourage and support their financial institutions to open more branches in each other’s country and expand business exchanges in accordance with domestic laws and regulations and the rules of prudential regulation of the host country. China’s financial regulatory authority will step up cooperation with African counterparts to jointly maintain the smooth operation and sound development of China and Africa’s financial systems.
4. Social Development Cooperation
4.1 Development Cooperation
4.1.1 The African side appreciates the long-standing assistance that China has provided without any political attachment to African countries and their people to the best of its abilities. China will enhance assistance to African countries, LDCs in particular, to deepen South-South cooperation and promote common development.
4.1.2 The African side applauds China’s efforts in helping African countries reduce poverty, improve people’s livelihood and implement the 2030 Agenda for Sustainable Development under the Assistance Fund for South-South Cooperation. China will share more of its development practices with Africa, support cooperation with Africa on economic and social development planning, and continue its support through the Fund to African countries for achieving the SDGs and Agenda 2063 of the African Union.
4.1.3 The African side appreciates China’s support to the African Union and sub-regional organizations in upgrading public service facilities, improving government working conditions and their capabilities of providing public services.
4.1.4 China will extend US$15 billion of grants, interest-free loans and concessional loans to Africa. For those of Africa’s least developed countries, heavily indebted and poor countries, landlocked developing countries and small island developing countries that have diplomatic relations with China, the debt they have incurred in the form of interest-free Chinese government loans due to mature by the end of 2018 will be exempted.
7. International Cooperation
The world is undergoing major developments, transformation and adjustment. The trend toward multi-polarity, economic globalization, IT application and cultural diversity is surging. Changes in the global governance system and the international order are accelerating. Countries have become increasingly interconnected and interdependent. It is in line with the trend of the times and serves the interests of Chinese and African people to build a community with a shared future for mankind, an open, inclusive, clean, and beautiful world that enjoys durable peace, universal security, and common prosperity, and a new type of international relations featuring mutual respect, equity, justice and win-win cooperation.
China and Africa reaffirm their commitment to mutual support in international affairs, and to the purposes and principles of the UN Charter, multilateralism, the authority of the United Nations, and the important role of the UN in international affairs. The two sides will strengthen coordination and collaboration in the United Nations and other multilateral organizations, and enhance cooperation in trade, finance, environmental protection, peace and security, cultural and people-to-people exchanges, economic and social development and human rights. The two sides will work to make the international order more just and equitable, make economic globalization more open, inclusive, balanced and beneficial to all, and uphold the common interests of developing countries.
8. FOCAC Institutional Development
8.1 The two sides are satisfied to see the efficient and smooth operation of the political consultations between Chinese and African Foreign Ministers on the sidelines of UNGA, the Senior Officials Meetings (SOMs), and consultations between the Chinese Follow-up Committee of FOCAC and the African diplomatic corps in China since the FOCAC Johannesburg Summit.
8.2 The two sides will continue to leverage the role of existing sub-forums under FOCAC, and jointly advance the establishment or institutionalization of new sub-forums to substantiate FOCAC and China-Africa cooperation across all areas.
Please note: Only extracts from the Beijing Action Plan (2019-2021) are provided above. The official PDF version will be published as soon as it becomes available.
Related News
China Development Bank, Afreximbank in $500m agreement to support Africa’s trade infrastructure
China Development Bank (CDB) on 6 September 2018 in Changsha, China, signed an agreement providing a $500-million facility to the African Export-Import Bank (Afreximbank) to enable the African trade finance bank support trade enabling infrastructure projects across the continent.
The facility will also be used to support Afreximbank’s trade finance intermediaries to provide medium to long term financing for sub-projects in various sectors, including energy, telecommunication, transportation, agriculture, medical sector, industrial park or any related trade finance transactions. The facility carries a 10-year tenor.
Zheng Zhijie Liu, Vice Chairman and President of CDB, and Prof. Benedict Oramah, President of Afreximbank, signed the facility agreement on behalf of their two institutions during a ceremony held on the sidelines of the “4th Investing in Africa Forum” which took place in Changsha.
“This facility strengthens our capacity to realize our mandate and makes it possible for Afreximbank and CDB to achieve important development outcomes in Africa,” said President Oramah. “We are actively seeking to drive Africa’s development by working with partners to support employment creation, increased economic activities, and increased tax earnings for governments arising from increased commercial activities resulting in increased earnings and profitability”.
Prof. Oramah said that the facility would contribute to the promotion of South-South trade, particularly between China and Africa, while providing long-term funding which Afreximbank would transfer to its clients.
Also speaking, Mr. Zheng Zhijie said that, as a development finance institution of the Chinese government, CDB had always promoted China-Africa cooperation as the focus of its international business.
Since 2006, the bank had provided more than $50 billion for nearly 500 projects in 43 countries, he said. Those funds had been used to support a large number of key projects in infrastructure, energy and minerals, telecommunications, agriculture, etc.
Several other agreements involving other institutions were also signed during the ceremony.
The Fourth Investing in Africa Forum: Deepening Investment Cooperation and Harnessing Innovation for Sustainable Development and Shared Prosperity
Turning constraints into opportunities to attract and mobilize private sector investments, both domestic and foreign, is the guiding spirit of the fourth IAF. Forum participants reflected on what it would take to mobilize adequate private investment needed to transform African economies and generate much-needed jobs, through a focus on five central themes:
-
Agriculture and agro-processing
-
Education and skills development
-
Energy and climate change
-
Health, and
-
Digital economy and innovation
As Africa’s top trading partner and one of its largest investors, China-Africa engagement has expanded rapidly in recent years, reflecting China’s support for African development. Previous IAFs demonstrated that deepened China-Africa cooperation is mutually beneficial, and supports development strategies based on the comparative advantages of Africa countries.
During the first two Forums – held in Addis Ababa, Ethiopia and Guangzhou, China, respectively – participants addressed a set of topics grounded in Africa’s development priorities. The third IAF, held in Dakar, Senegal, addressed six thematic pillars and set the stage to catalyze a new generation of investment opportunities by leveraging technology and innovation to unlock Africa’s potential for accelerated and inclusive growth.
The Investing in Africa Think Tank Alliance also launched its first publication, Leapfrogging: The Key to Africa’s Development?, which identifies knowledge gaps and proposes practical guidance on how to spur leapfrogging in African countries.
Related News
tralac’s Daily News Selection
Just released: Africa Agriculture Trade Monitor 2018 (ReSAKSS, AGRODEP, CTA)
The report notes the European Union as the continent’s dominant trading partner, accounting for 40% of exports and 30% of imports, but Asia is catching up rapidly. There are promising signs for export performance from many countries, with African exporters increasing their competitiveness in global markets for three-quarters of commodities studied. Moreover, many new export commodities, such as wool, soybeans, soybean oil, live trees and plants, and cocoa preparations, showed strong gains in competitiveness, suggesting the potential for diversifying exports by expanding trade in these areas. The study highlights the benefits of intra-regional trade to stability and resilience of markets and food supplies.
Key factors limiting Africa’s trade in agricultural products include the poor quality of physical infrastructure, inefficient customs processes and high harassment costs, inconsistent regional standards and regulations, and non-tariff trade barriers including stringent food safety and traceability requirements in importing countries. Support to domestic agricultural producers in OECD countries also reduces Africa’s trade. African countries have limited control over trade policy in other countries, the study notes, but they should continue to take part in global efforts to lower trade barriers. In addition, much can be accomplished by addressing the domestic constraints to expanding trade. Download: pdf Africa Agriculture Trade Monitor 2018 (3.70 MB)
Africa Agriculture Status Report 2018: Catalyzing state capacity to drive agriculture trans-formation (AGRA)
Most African countries are struggling to follow the lead of Asian countries in using agriculture to spark widespread economic growth because they have yet to marshal strong political support for agriculture – and then pair it with compelling visions, strategies and related implementation capacity for transforming their poorly performing farms, according to a major new study released by the Alliance for Green Revolution in Africa. The assessment was released on the opening day of this week’s African Green Revolution Forum in Kigali. Download: pdf Africa Agriculture Status Report 2018 (13.66 MB)
Nigeria’s foreign trade statistics Q2 2018: merchandise trade declines by 8.89% (NBS)
The total value of Nigeria’s merchandise trade was N6,569.98bn in the second quarter of 2018, which was a -8.89% contraction from the figure recorded in Q1, 2018 and a 14.56% growth from Q2, 2017. In the second quarter, the top five import destinations for Nigeria were China, Netherlands, Belgium, India and United States which, respectively, accounted for 25.2%, 8.6%, 8.1%, 6.9% and 6.7% of imports. Import trade from African countries stood at N109.1 billion, or 5.2%, while imports from the region of ECOWAS amounted to N14.2 billion, or 0.4%, of total imports. Exports by country of destination showed that Nigeria exported goods in Q2 2018 mainly to India, Netherlands, Spain, South Africa and United States. These five countries accounted for 50.9% of the total exports in Q2, 2018. [Download the NBS report]
Botswana: 2018 Article IV Consultation (IMF)
Public sector reforms to lift growth potential and increase equity: Public sector reforms are needed to enable the expansion of the private sector, create jobs, diversify exports, and reduce income inequality. In an environment of constrained mineral and SACU revenues, a gradual reduction in the size of the public sector over time would allow the state to focus on providing high-quality services more efficiently. At the same time, expenditure and tax policy reforms could help reduce income inequality.
Making the public sector more efficient and effective: In the short term, there is a need to rationalize parastatals and privatize key enterprises. At end-2017, there were 61 parastatals, comprising 24 commercial enterprises. Many are inefficient, with overlapping mandates, unclear value-addition, and contribute to fiscal costs and contingent liabilities. The staff underscored the importance of avoiding the creation of new parastatals and supported the authorities’ plans to strengthen financial oversight, improve transparency, and make public reports on meeting standards. It also noted the need to adopt a private management model for parastatals by professionalizing their boards. Lastly, the staff urged the authorities to proceed with the privatization of key enterprises, notably Air Botswana, the Botswana Meat Commission, and the National Development Bank.
Appendix VI: Economic diversification. Diversification remains a key goal and the authorities aim at developing sectors with perceived comparative advantage. After a comprehensive consultation process with stakeholders including the private sector, a new approach based on a cluster-based plan was adopted as part of the 11th National Development Plan that commenced in 2017. The authorities also based their approach on a study prepared by an external consultant that identified beef, tourism, and financial services as strategic sectors with potential comparative advantage. This appendix assesses the constraints that have kept these sectors from reaping the intended benefits and recommends policy actions to eliminate restrictive and costly government’s interventions while leveling the playing field to achieve greater competition and private sector participation.
Lesotho: Statement issued as IMF mission concludes visit (IMF)
The mission discussed with the authorities a number of options for containing the deficit to a level that can be fully financed. The mission noted that the adjustment should be focused on expenditure measures, including efforts to address the public sector wage bill, which is one of the largest in the world compared to the size of the economy, while making efforts to ensure that the most vulnerable are protected. The mission also discussed other possible areas for savings, including on government travel, foreign embassies, and procurement. Discussions also considered measures to modernize tax policy and improve the revenue system. The mission noted the need to address long-standing PFM issues to ensure the provision of reliable fiscal data and ensure sound use of public resources. Significant progress was made during the visit, and discussions will continue in the coming weeks. If agreement is reached on policy measures in support of the reform program, an arrangement to support Lesotho’s economic program could be proposed for the IMF Executive Board’s consideration.
Kenya calls for speedy passage of EAC laws on integration to resolve trade barriers (EABF)
Kenya’s EAC and Regional development Ministry has called for a speedy enactment of regional integration laws to address the issue toxic trade barriers given numerous emerging challenges faced by Kenyan products in accessing the regional market. According to EAC and Regional development Cabinet Secretary Adan Mohamed, the National Assembly should redirect legislative focus towards harmonizing EAC laws in the context of various domestic laws to ensure they strengthen regional integration efforts. “We must guard against the constantly changing regional dynamics in the East and Horn of Africa which greatly impact on strategic regional interests,” said Mohamed, who urged the legislators to probe the various Bills, Reports and Protocols in the context of emerging regional dynamics.
Mombasa Port: New charter outlines key port reforms (Business Daily)
A team spearheading a charter signed in 2014 to enhance cargo clearance at the Port of Mombasa has submitted its reviewed report to the government. The Mombasa Port Corridor Charter report was presented during last week’s validation workshop in Mombasa, an event attended by Maritime Principal Secretary Nancy Karigithu. The Charter Steering Committee chairperson Gilbert Langat said for the last four years since the first charter was signed, government agencies and private sector players have supported efforts to make the port more efficient. About 25 organisations drawn from the government, private sector, civil society and other interest groups are signatories to the charter.
Thursday’s Quick Links: Declaration of the 2018 Beijing Summit of the Forum on China-Africa Cooperation Yun Sun: China’s 2018 financial commitments to Africa – adjustment and recalibration Dr Joseph Okpaku: Time for smart, more ambitious China-Africa partnership Ghana: Akufo-Addo woos Chinese investors with juicy incentives Chinese heavy-duty truck manufacturer Sinotruck to set up in Ghana South Africa: US confirms it’s not using AGOA as leverage over land expropriation Global Trade Review: Kenyan trade financiers “losing the battle” with Chinese banks International Centre for Settlement of Investment Disputes: Tanzania loses appeal, now Tanesco to pay $148m UNCTAD training manual: Building the capacities of Least Developed Countries to upgrade and diversify fish exports |
New report highlights promising signs of export diversification in African agricultural trade
A new report highlights the role agricultural trade plays in Africa and draws out important policy measures that African governments will need to take to benefit fully from intra-African trade as well as global trade in agricultural products.
Key findings of the Africa Agriculture Trade Monitor 2018 include that, despite recent growth in agricultural trade deficits, there are promising signs of export diversification, both in commodities traded and trade partners, as well as increasing intra-African trade in agricultural commodities.
Intra-regional trade in Africa is increasing rapidly the report notes, by 12% a year between 1998 and 2013, but is still low compared with other regions such as Europe and Asia.
The report identifies the need for governments to act to raise productivity along the value chain, reduce trade costs, and eliminate barriers to trade in order to boost both global and intra-regional trade. Actions recommended include allocating greater public expenditures to agriculture and to agricultural research and development in particular, harmonising regulations and decreasing barriers to intra-regional trade, and providing an enabling environment for value chain development by strengthening market institutions and investing in infrastructure. At the global level, efforts are needed to meet strict food safety and traceability requirements.
“The Africa Agriculture Trade Monitor 2018 highlights how increasing the volumes of intra-African trade in agricultural products has the potential to boost industrialization and enhance competitiveness. Enabling policies that enhance intra-regional trade such as the Continental Free Trade Area (CFTA) will be crucial to open up the continent to new investors and better opportunities for its entrepreneurs,” said Michael Hailu, CTA Director.
Shenggen Fan, Director General, IFPRI, states: “This report provides a vital source of evidence and analysis that can inform policy discussions on how best to enhance Africa’s trade performance at the global and regional levels.”
The report notes the European Union as the continent’s dominant trading partner, accounting for 40% of exports and 30% of imports, but Asia is catching up rapidly. There are promising signs for export performance from many countries, with African exporters increasing their competitiveness in global markets for three-quarters of commodities studied. Moreover, many new export commodities, such as wool, soybeans, soybean oil, live trees and plants, and cocoa preparations, showed strong gains in competitiveness, suggesting the potential for diversifying exports by expanding trade in these areas.
The study highlights the benefits of intra-regional trade to stability and resilience of markets and food supplies. For example, the report found that in nearly all West African countries national production was more volatile than regional production during the 1980-2010 period, implying that intra-regional trade would be able to reduce the volatility of food supplies at the regional level.
“Increasing the ability of African countries to participate in regional and global trade helps to improve well-being of consumers, raise incomes of farmers, build resilience of food markets, and ultimately it also helps to boost economic growth and reduce poverty,” said Ousmane Badiane, IFPRI Africa Director.
Key factors limiting Africa’s trade in agricultural products include the poor quality of physical infrastructure, inefficient customs processes and high harassment costs, inconsistent regional standards and regulations, and non-tariff trade barriers including stringent food safety and traceability requirements in importing countries. Support to domestic agricultural producers in OECD countries also reduces Africa’s trade.
African countries have limited control over trade policy in other countries, the study notes, but they should continue to take part in global efforts to lower trade barriers. In addition, much can be accomplished by addressing the domestic constraints to expanding trade.
Africa Agriculture Trade Monitor 2018 is the fruit of a collaborative endeavour between the International Food Policy Research Institute (IFPRI) and the Technical Centre for Agricultural and Rural Cooperation (CTA). It builds on the work of the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) and the African Growth and Development Policy Modelling Consortium (AGRODEP) on trade, both facilitated by IFPRI as part of its work in support of the Comprehensive Africa Agriculture Development Programme.
Related News
Declaration of the 2018 Beijing Summit of the Forum on China-Africa Cooperation
Towards an Even Stronger China-Africa Community with a Shared Future
1.1 We, the Heads of State, Government and Delegations of the People’s Republic of China and 53 African countries, and the Chairperson of the African Union Commission (AUC), gathered in China on the 3rd and 4th of September for the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC). Under the theme “China and Africa: Toward an Even Stronger Community with a Shared Future through Win-Win Cooperation” and committed to the development of FOCAC and to deepening China-Africa comprehensive strategic and cooperative partnership, we adopted by consensus the Beijing Declaration – Toward an Even Stronger China-Africa Community with a Shared Future.
1.2 We extend warm congratulations to the Republic of the Gambia, the Democratic Republic of Sao Tome and Principe, and Burkina Faso on becoming new members of FOCAC following the Johannesburg Summit.
2. In a world of major development, transformation and adjustments, peace and development remain our common aspirations. Growing interconnection and inter-dependence among countries has made collaboration the only viable way to effectively address terrorism, conflicts, wealth gaps, poverty, climate change, land degradation, food insecurity, major communicable diseases, protectionism and other global challenges.
3.1 Recalling and fully endorsing the vision of “a community with a shared future for mankind” and “China-Africa community with a shared future”, which has been articulated by leaders of China and Africa on both bilateral and multilateral occasions in recent years, we call on all countries to work in concert toward a community with a shared future for mankind, an open, inclusive, clean, and beautiful world that enjoys lasting peace, universal security, and common prosperity, and a new type of international relations featuring mutual respect, fairness, justice, and win-win cooperation, with a view to upholding and advancing world peace and development.
3.2 We believe that China and Africa are a community with a shared future. China is the largest developing country. Africa is the continent with the most developing countries. Sharing weal and woe, the Chinese and African peoples have forged a deep friendship rooted in our similar historical experiences, development tasks and political aspirations. We agree to strengthen collective dialogue, enhance traditional friendship, deepen practical cooperation, and work together toward an even stronger China-Africa community with a shared future.
4.1 We applaud that, under the Belt and Road Initiative, the principle of extensive consultation, joint contribution and shared benefits is observed; market principles and international norms are followed; openness, transparency, and win-win results are advocated and practiced; efforts are made to develop inclusive, accessible and reasonably priced infrastructure that delivers extensive benefits and are consistent with the national conditions and laws and regulations of related countries, with a view to promoting high-quality and sustainable development for all. The Belt and Road development responds to the call of the times and brings benefits to all peoples.
4.2 Africa, being part of the historical and natural extension of the Belt and Road, has been an important participant in this initiative. The cooperation between China and Africa under the Belt and Road Initiative will generate more resources and means, expand the market and space for African development, and broaden its development prospects. We agree to form a strong synergy between the Belt and Road Initiative and the 2030 Agenda for Sustainable Development of the United Nations, Agenda 2063 of the African Union (AU), as well as the development strategies of African countries. The closer connectivity in policy, infrastructure, trade, finance and people-to-people ties, strengthened industrial capacity cooperation under the Belt and Road Initiative, and greater cooperation in the planning of African infrastructure and industrial development will lend new impetus to the win-win cooperation and common development between China and Africa.
4.3 African countries support China in hosting the second Belt and Road Forum for International Cooperation in 2019. China welcomes African countries’ active participation in the Forum.
5.1 We applaud the role FOCAC has played over the past 18 years to promote China-Africa relations. The follow-up actions and the implementation of the outcomes of the Johannesburg Summit, including the “ten cooperation plans” and the pdf FOCAC Johannesburg Action Plan (2016-2018) (1.99 MB) , have produced fruitful results.
5.2 We recognize that the FOCAC mechanism is increasingly efficient and has become a leading player in international cooperation with Africa. We agree to uphold the existing mechanism and preserve its uniqueness and strengths to further advance China-Africa relations and cooperation in the new era. We also agree to make the Forum a major platform for China-Africa cooperation under the Belt and Road Initiative.
6. China will continue to strengthen solidarity and cooperation with African countries in keeping with the principle of upholding justice while pursuing shared interests and the principle of sincerity, real results, affinity and good faith, as proposed by H.E. President Xi Jinping. We are committed to working together to leverage our respective strengths, accommodating each other’s concerns, and developing and enriching the China-Africa comprehensive strategic and cooperative partnership to the benefit of the Chinese and African peoples.
7.1 China commends the African integration process, and pledges its continued support for Africa’s efforts in seeking strength through unity, accelerating integration, upholding peace and stability, and achieving even faster economic growth. China takes note of the encouraging progress achieved in these areas at the AU Summits in recent years.
7.2 We welcome China’s stronger cooperation with the AU, its agencies and African regional economic organizations, and support the AUC in playing a constructive role in promoting China-Africa transnational and trans-regional cooperation. China welcomes a representational office of the AU in Beijing, and supports AU reform to enhance its capacity building and efficiency.
8. We agree to continue to give each other firm support in upholding territorial integrity, sovereignty, security and development interests. African members of FOCAC reaffirm their commitment to the one-China principle, and their support for China’s reunification and China’s efforts in resolving territorial and maritime disputes peacefully through friendly consultation and negotiation. China reaffirms its commitment, on the basis of the one-China principle, to growing friendship and cooperation with all African countries and sharing with them its development opportunities. China reiterates its firm commitment to the principle of non-interference in others’ internal affairs and supports African countries in independently exploring development paths suited to their national conditions.
9. China pledges to work with African countries to synergize development strategies and increase experience-sharing on governance, poverty reduction and development, particularly on rural socio-economic development, gender equality and women and youth empowerment. China supports African countries in working for development and rejuvenation and acting on Agenda 2063 and its first ten-year implementation plan, with a view to achieving independent and sustainable development.
10. We applaud the remarkable progress and positive results achieved by China and Africa in anti-corruption cooperation. We will continue to bear zero tolerance toward corruption and strengthen the institutions and mechanisms for anti-corruption cooperation. We welcome the launching of the African Anti-Corruption Year, and will take it as an opportunity to further enhance South-South cooperation and experience-sharing in a joint effort to fight corruption and promote integrity.
11. We commend the principle of common, intensive, green, safe and open development agreed by both sides to enhance mutually beneficial cooperation under the new circumstances, and applaud the fruitful China-Africa economic and trade cooperation, particularly the remarkable results of cooperation in such areas as trade, investment, financing and infrastructure. We believe that economic and trade cooperation remains the anchor and the propeller for China-Africa relations. China will continue to, in keeping with the principle of mutual benefit and win-win cooperation, help enhance Africa’s production capacity in the secondary and tertiary industries, and promote the transformation and upgrading of China-Africa economic and trade cooperation focusing on improving Africa’s internally driven growth that reduces reliance on export of raw materials. China will, as always, offer assistance and support to Africa’s development with no political strings attached. Africa reaffirms its commitment to sustainable, diversified and coordinated socio-economic development to ensure mutually beneficial outcomes.
12. We call on the international community to join efforts in promoting trade and investment for development and making economic globalization more open, inclusive, balanced and beneficial to all. Faced with the current severe situation, we firmly uphold multilateralism and oppose all forms of unilateralism and protectionism, support a WTO-centered, rules-based multilateral trading regime that is transparent, non-discriminatory, open and inclusive, and support the efforts for an open and inclusive world economy. We will work for the normal operation of the WTO dispute settlement mechanism and continue to implement the outcomes of previous ministerial meetings. We resolve to enhance cooperation within such mechanisms as the G77+China, and take concrete actions to uphold the multilateral trading regime and support development across the world.
13.1 The African leaders welcome the major measures for further opening-up announced by H.E. President Xi Jinping at the opening ceremony of the Boao Forum for Asia Annual Conference 2018, and commend the concrete and targeted efforts made by China in such areas as capacity building. They believe that such measures and efforts will benefit African countries and beyond, and that China’s development has brought important opportunities and impetus to an open world economy. The African leaders welcome the first China International Import Expo to be held in Shanghai in November, 2018 and would like to take an active part in it.
13.2 China commends the important outcomes of the African Union Extraordinary Summit, held in Kigali, Rwanda in March 2018, on the African Continental Free Trade Area, and welcomes the launching of the Single African Air Transport Market and the decisions supporting the free movement of people and goods. China supports early progress in developing African Continental Free Trade Area and the Single African Air Transport Market. China will strengthen cooperation with Africa in trade and investment facilitation, and step up related policy communication, information sharing and capacity building. China supports African countries in enhancing connectivity, infrastructure development and industrialization. China encourages companies from both sides to explore more ways of mutually beneficial cooperation based on the law of the market.
13.3 Africa appreciates the support that China has rendered to its railway development, particularly the related goals set forth by the AU Agenda 2063, and welcomes China as a strategic partner in its railway development. Africa welcomes more investment from China in its tourism industry and looks to further expand China-Africa aviation cooperation.
14. We welcome the G20 Initiative on Supporting Industrialization in Africa and Least Developed Countries and urge developed countries to honor their official development assistance commitments to developing countries, especially those in Africa, on time and in full, and to provide more support in terms of funding, technology and capacity building for the full implementation of the 2030 Agenda for Sustainable Development.
15. We call on all countries to respect the diversity of civilizations and stress that people-to-people and cultural exchanges are of great significance for increasing mutual understanding, friendship and cooperation between the Chinese and African peoples. We encourage further exchanges, mutual learning, and cooperation in culture, education, science, technology, sports, health, tourism, media and at sub-national levels, to further consolidate the public support for China-Africa relations.
16.1 We underscore the importance of advocating common, comprehensive, cooperative and sustainable security. We commit ourselves to addressing disputes and differences through dialogue and consultation, making coordinated efforts to deal with both traditional and non-traditional security threats and opposing terrorism in whatever form, for whatever cause, and wherever it occurs.
16.2 China firmly supports African countries and regional organizations such as the AU in their efforts to independently resolve African problems in the African way. China supports the building of the African Standby Force and the African Capacity for the Immediate Response to Crisis, and other active measures by regional countries in countering terrorist threats. China supports predictable and sustainable UN funding for Africa’s independent peace operations and the initiative to “Silence the Guns in Africa by Year 2020”. In light of the need of Africa, China will continue to play a constructive role in providing good offices and mediation of African hotspot issues. We welcome closer communication and coordination between China and Africa in the UN Security Council. We will enhance coordination and cooperation on affairs related to African peace and security to uphold our common interests through the meetings and consultations between China and Africa’s non-permanent members of the Security Council. We welcome closer cooperation between China and the African Union Peace and Security Council (AUPSC) through meetings and consultations, as it serves our common interests.
16.3 We note the serious challenges of displacement and migration in Africa, and the efforts by the African Union, sub-regional organizations and African countries in addressing the issues within the framework of Agenda 2063 and through other related channels. China and Africa will discuss ways to strengthen cooperation in such areas as humanitarian response, early warning, climate change, drought and desertification and disaster management and response.
17. We emphasize the importance of upholding the purposes and principles of the UN Charter and supporting the active role of the UN in international affairs. We advocate mutual respect and equal consultation, firmly reject Cold-War mentality and power politics, and embrace the new approach to state-to-state relations that favors dialogue over confrontation, partnership over alliance. We follow the principle of achieving shared benefits through consultation and collaboration in global governance, advocate multilateralism and democracy in international relations, and believe that all countries are equal, irrespective of their size, strength or wealth. We oppose interference in others’ internal affairs and arbitrary use or threat of force in international affairs, and reaffirm the need to deepen mutual understanding and enhance coordination and collaboration with each other at the UN and other fora.
18. We call for necessary reforms of the UN including its Security Council to better fulfill their responsibilities prescribed in the UN Charter and enhance the UN’s capacity to deal with global threats and challenges and strengthen global governance. We emphasize that the historical injustice endured by African countries should be corrected, that priority should be given to increasing the representation of African countries at the UN Security Council and other agencies, and that concerted efforts should be made to steer the reform of the international governance system toward better serving the common interests of developing countries. China will enhance communication and coordination with Africa’s non-permanent members of the Security Council to jointly uphold the common interests of the two sides and developing countries as a whole. We also call for reforms of international financial institutions including the Bretton Woods institutions.
19.1 We call for the conclusion of the work program under the Paris Agreement by the 24th Session of the Conference of the Parties (COP 24) of the United Nations Framework Convention on Climate Change (UNFCCC), and reaffirm our unwavering commitment to jointly tackling climate change in accordance with the Marrakech Action Proclamation for Our Climate and Sustainable Development adopted at COP22 of the UNFCCC. We are determined to take environment-friendly approaches, work together to respond to climate change, protect marine biodiversity, strengthen marine research, develop blue economy, and foster a global ecosystem for green development to protect our common home for human survival and create an environment conducive to the development of small island countries. We call on developed countries to honor their commitments at an early date and to support African countries with funding, technology transfer and capacity building to deal with climate change and protect the environment.
19.2 China speaks highly of Africa’s efforts in protecting wildlife, takes note of the challenges confronting Africa, and will work with Africa to fight illegal trade in wildlife and provide necessary support in this field.
20. We congratulate South Africa on successfully hosting the 10th BRICS Summit and the BRICS Outreach which is comprised of the BRICS Plus Initiative and the BRICS Leaders-Africa Outreach Dialogue Forum. The Leaders applaud the outcome documents and measures adopted at the BRICS Summit as being fruitful and laying a solid foundation for the second “Golden Decade” of BRICS Cooperation. The Summit will strengthen collaboration among countries concerned and help them benefit from the fourth industrial revolution.
21. We commend the Ministers participating in the seventh FOCAC Ministerial Conference for their dedicated efforts and outstanding work in formulating the Beijing Action Plan (2019-2021) of the Forum on China-Africa Cooperation in the spirit of this Declaration. With the Action Plan adopted, both sides will now work closely for its timely and full implementation.
22.1 We express gratitude to H.E. President Xi Jinping of the People’s Republic of China and H.E. President Cyril Ramaphosa of the Republic of South Africa for co-chairing the 2018 Beijing Summit of FOCAC.
22.2 We express gratitude to South Africa for the contribution it has made to FOCAC’s development and China-Africa relations during its co-chairmanship from 2012 to 2018.
23. We express gratitude to the government and people of the People’s Republic of China for the warm hospitality and excellent facilitation during the 2018 Beijing Summit of FOCAC.
24. We welcome the Republic of Senegal as the next co-chair of FOCAC. The Eighth FOCAC Ministerial Conference will be held in the Republic of Senegal in 2021.
Related News
Political support more important than seeds, weather and soil in Africa’s agriculture progress, says new report
Ethiopia and Rwanda are emerging as models for pairing political will with government action to transform small, family farms into poverty-fighting powerhouses
Most African countries are struggling to follow the lead of Asian countries in using agriculture to spark widespread economic growth because they have yet to marshal strong political support for agriculture – and then pair it with compelling visions, strategies and related implementation capacity for transforming their poorly performing farms, according to a major new study released on Wednesday by the Alliance for Green Revolution in Africa (AGRA).
“Our experience and lessons have shown that impact can be achieved faster by supporting countries to deliver on their own transformation; driving scale through a well-planned and coordinated approach to resources in the public domain to build systems and institutions,” said AGRA President Dr. Agnes Kalibata, commenting on the 2018 African Agriculture Status Report (AASR).
“Governments are definitely central to driving an inclusive agriculture transformation agenda. This body of work recognizes their role and aims to highlight the value of strengthening country planning, coordination and implementation capacity while supporting the development of an effective private sector and enabling regulatory environment.”
The report, “Catalyzing State Capacity to Drive Agriculture Transformation,” is the most comprehensive assessment to date of the role of state capacity and political will in achieving that “transformation,” a catch-all term for work required to boost production and incomes on the millions of small, family farms that grow most of Africa’s food – but where output often lags far below global averages.
The assessment was released on the opening day of this week’s African Green Revolution Forum (AGRF) in Kigali, a meeting that is attracting influential leaders from across the continent and around the world who are eager to see farming and food production take center stage in African economic development efforts. The event’s theme – Lead, Measure, Grow – is spotlighting the importance of political leadership and accountability in delivering on the economic promise of agriculture.
The 2018 AASR notes that if one looks at countries like China or South Korea or, closer to home, at Ethiopia, Rwanda or Morocco, it’s clear that intensifying commercial production on small, family farms packs a powerful economic punch.
For example, China’s agriculture transformation is credited with kick-starting a rapid decline in rural poverty, from 53 percent in 1981 to 8 percent in 2001. The same is true for Vietnam, where rural poverty declined from 56 percent in 1986 to percent in 2018. In Ethiopia, 25 years of steady growth in the farm sector has cut rural poverty rates in half and in Rwanda, over the same period, poverty has reduced by 25 percent.
The AASR finds that a consistent feature in each of these success stories is rock solid political support – led by heads of state, senior government ministers, private sector leaders and farmer organizations – for the “institutions, investments and policies” that can unleash the economic potential of smallholder agriculture and local agribusinesses.
Equally important: the report finds political capital is typically invested in a detailed plan of action that is carried out by a strong cadre of skilled professionals. And not just from the agriculture sector. The report notes that successful agriculture transformation is a national agenda that involves significant contributions from other sectors, including finance, transportation, environment, energy and water. Together, they implement policies that create fertile ground for cultivating a new crop of local agriculture businesses.
But the AASR assessment reveals that this vital constellation of political energy, targeted policy reforms, government capacity and an enabling environment for agribusiness is precisely what is missing from the agriculture sector of many African countries.
It examined data from other independent research – such as those that compare government taxation of farm inputs to support the sector or that monitor public spending on agriculture including research and extension services – and noted that stronger policies and regulatory reforms are central in attracting private sector investments.
They all pointed to the same conclusion: that the government and state is key to leading and driving agriculture transformation. Otherwise, the report notes, the pace of development will never grow economies the same way it did in Asia.
“Existing data suggest that the political will to support agriculture transformation is likely lower in Africa than in other regions of the developing world,” the report states, adding that it “has not substantially increased during the past decade.”
Below is a list of seven key recommendations to African governments that could help unleash the potential of African farmers and agribusinesses.
The tide may be turning: Signs of commitment to progress
The report finds key exceptions that can help blaze a path for other African countries to follow. In addition to Ethiopia, Rwanda is cited for marshalling political support for agriculture and then integrating detailed action plans within its broader economic development strategies. Progress in the sector is credited with lifting over one million Rwandans out of extreme poverty in a relatively short period.
Economic output in Ghana’s agriculture sector – driven in part by the government’s new “Planting for Food and Jobs” program – grew 8.4 percent in 2017 (after posting only 3 percent growth in 2016). Similarly, AGRA experts point to countries such as Kenya, Burkina Faso, Mali, and Zambia as places where political momentum and government capabilities are growing.
Others also see reason for optimism in the increasing willingness of African governments to openly discuss where they are advancing in agriculture and where they are struggling. For example, 47 countries have signed on to the African Union’s Comprehensive Africa Agriculture Development Program (CAADP). And they recently submitted detailed reports outlining their progress to date in achieving a range of commitments made through the AU’s Maputo and Malabo accords. The report, dubbed the pdf Biennial Review of the Malabo Declaration (4.18 MB) , re-enforced the link between government action on agriculture and reductions in poverty, with Rwanda posting the highest “agriculture transformation” score.
With farmers poised for progress, report reveals a way forward
Another bright point in the report is the growing number of smallholder farmers in sub-Saharan Africa who have moved beyond subsistence farming to become commercial growers. The report finds that 85 percent of Africa’s food is currently produced by smallholder farming households that generate a big enough surplus to sell 30 percent or more of their harvests for income.
“That means governments that are ready to step up their commitment to agriculture transformation likely have a core group of smallholder farmers who have the means and motivation to adopt new crop varieties and better farming practices,” said Boaz Keizire, AGRA’s Head of Policy and Advocacy. “And when their wealth increases, so does the wealth of their neighbors as these farmers tend to spend most of what they earn in their local communities.”
The report notes that it is “the increased spending of small commercial farmers” in rural communities that accounts for the powerful economic domino effect numerous studies have linked to agriculture growth in low-income countries. The World Bank concludes that growth in the agriculture sector is at least twice as effective at reducing poverty as growth in any other sector.
“We hope people will be coming to this year’s AGRF ready to build the coalitions that can take advantage of the unique power of agriculture as the surest path to growing economies and jobs,” said Dr. Kalibata.
Seven key recommendations for African governments to unleash the potential of agriculture
The AASR offers a detailed exploration of the different levers governments must pull to unleash the potential of their smallholder farmers to deliver both food security and economic growth. They include:
-
Communicate a clear and convincing vision of agriculture’s potential. The report finds that the work starts with political leaders who can make a compelling case that boosting productivity and incomes on smallholder farms can rapidly deliver food security and equitable economic development, all the while – putting the country on a path to industrialization. Leaders in Ethiopia and Rwanda were credited with building a broad coalition of public and private sector support for farmers, along with donors and international aid institutions. The report also notes the importance of ensuring professionals or “technocrats” across government understand their roles in the transformation process and are ready to be held accountable for their performance.
-
Approach agriculture as a long-term relationship, not a brief affair. Like a good marriage, the report finds political will to support agriculture involves not just the readiness to embrace its potential, but also the ability to maintain a steadfast commitment for the long-term – and in the face of multiple challenges. For governments, the report observes that these challenges inevitably will include “poor civil service salaries and limited funding for operational expenses” that require fortitude to resolve. Headaches can involve a range of issues, like a backlog of seed certifications, funding from donors that goes unspent, land disputes that remain unsettled and poorly administered subsidy payments. The report notes that the inability to maintain an ardor for agriculture may explain why the success of past efforts in the region, like the “hybrid maize” revolution of the 1980s that was supposed to dramatically boost maize production or the “cassava transformation” promised for Western and Southern Africa, “were often not maintained over time.”
-
Link policies and investments to clear commercial opportunities for smallholder farmers. The report finds that agriculture investments achieve their best results when they are attached to specific “agriculture value chains” – a reference to all of the links involved in boosting production of an agriculture commodity and moving it from farm to fork. For example, maize is a commodity increasingly in demand in East and Southern Africa in part because government policies and investments have supported multiple areas – including research, extension services, land rights, financing, storage and trade pacts – with a focus on how they can work in concert to help boost production and sales of maize. Elsewhere in Africa, similar government efforts are focused on coordinating a suite of activities around commercial value chains for rice, cassava, coca, potato and livestock products. The report notes that evidence from other countries indicates that the most effective agriculture transformation efforts concentrate on three or four commodities where smallholders can be the lead producers and where there is an opportunity to add value to the produce at it moves along the value chain, like processing maize into flour or even cassava into beer.
-
Foster an enabling business environment for agriculture. The report finds that most countries in sub-Saharan Africa lagged behind those in East Asia and Latin America in the World Bank’s 2017 “enabling the business of agriculture” or EBA score. That assessment looks at investments, policies and regulatory practices that can affect production and availability of things like improved seeds, fertilizer, farm machinery, and financing and impede or facilitate access to commercial markets. A survey of agriculture businesses in 11 African countries revealed a number of actions governments can take to attract more private sector investments. They include policies that encourage financing for agriculture-focused start-ups; better oversight of seed and fertilizer markets, where quality concerns and counterfeit products remain a problem; land reforms, particularly those that address challenges affecting women farmers; and increased investments in roads, power grids, irrigation and digital infrastructure serving farming communities.
-
Create farmer-focused institutions and initiatives empowered to work across government. The study laments aid policies of the 1980s and 1990s that promoted austerity in government spending and led to significant reductions in public sector extension services and research programs that continue to be felt today. In looking for approaches to jump start the agriculture transformation process, the report advises governments to look to Ethiopia and its decision in 2010 to set up its Agricultural Transformation Agency (ATA). The independent agency has the political clout to move quickly to address anything impeding progress in the agriculture sector. Rwanda is lauded for its comprehensive Crop Intensification Program and for a willingness to experiment with different approaches to supporting farmers and revisit what’s not working. The report recommends that when creating an agriculture transformation coordinating body, make sure it maintains authority by reporting to the head of state.
-
‘Team agriculture’ needs to expand its roster of players. The report emphasizes that success on the farm requires assistance far beyond the agriculture sector. For example, it requires reliable access to electrical power, roads, water, and ports and strong trade pacts. Almost all of the work to make this happen occurs outside of the agriculture ministry, pointing to the need for efforts that ensure everyone in government is prepared to play for ‘team agriculture’. The report points to examples where countries have created the necessary structures for this type of collaboration but neglected to secure the political support and operational budgets required to make them work. And it finds this aspect of the agriculture transformation process, perhaps more than any other, is where “political support at the Presidential or Prime Minister level is critical.”
-
Governments need to be accountable. The report takes a close look at the AU Biennial Review process for gauging governments’ progress toward meeting their CAADP commitments, which include increased spending on agriculture, boosting regional trade in agriculture commodities and helping farmers adapt to climate change. According to the review, there are currently 20 countries (out of 47) that are on track to achieve their commitments by 2025. The AASR notes that the Biennial Review could benefit from improving the consistency and quality of agriculture-related data and measures that can boost confidence in a system pegged to self-assessments. But overall, it lauds the reports as a significant advance toward transparency.
“It is a huge plus for African development,” the report concludes, “and a prime example of national and international cooperation.”
Related News
tralac’s Daily News Selection
Next week, in Lusaka: World Export Develop-ment Forum 2018:
ITC will launch several publications throughout the conference (11-12 September, Lusaka), including the Business Guide to the African Continental Free Trade Agreement; Promoting SME Competitiveness in Africa – Data for De-Risking Investment; a guide on the WTO trade facilitation and technology agreements, as well as regional approaches to trade facilitation. [Download: Programme (pdf)]
Next week, in Kigali: 2018 Development Finance Forum:
This month’s Development Finance Forum (11-12 September, Kigali) brings together public and private sector leaders to talk about how they can drive more private finance in three sectors that are key to development in East Africa: agribusiness, housing finance and tourism. This new financing model is letting IDA reach an unprecedented level of resources - $75bn for this three-year period. We expect to commit about $45bn of this to Africa by the end of the cycle in June 2020. And our first year of IDA18, which recently ended, shows we are on track. In the year ending June 30, we committed $15.4bn for Africa out of a global total of $24bn in IDA resources. In total, the East African countries have access to over $7bn of allocations over the three-year period, and they can also leverage additional funds through regional and other special windows. [The author, Axel van Trotsenburg, is the World Bank VP of Development Finance]
pdf
Zambia: 2019-2021 Medium Term Expenditure Framework and 2019 Budget
(2.24 MB)
In the external sector, preliminary data shows that in the first half of 2018, the country recorded a balance of payments deficit of $142.5m from a surplus of $181.4m in the first half of 2017. The deficit was largely explained by deterioration in the current account which widened to $756.5m compared to $340m in the first half of 2017. The deterioration in the current account was due to a higher growth in imports relative to that in export earnings. Imports registered growth of 27.17%, while exports grew by 20.7%. The major imports were copper ore, chemicals and iron, food, petroleum, rubber and vehicles.
Implementation of customs valuation database: Over the medium term, the Government will establish and regularly update a Customs Valuation Database in order to curb under-declarations of the value for duty purposes of selected imports and, therefore, safeguard Government revenues.
Debt management: The Government will, over the medium term, act decisively to reduce the risk of debt distress. In this regard, Government has undertaken the following measures to ensure debt sustainability: (a) Indefinitely postpone the contraction of some pipeline debt until the debt is brought back to moderate risk of distress; (b) Cancel some of the current contracted loans that are yet to be disbursed to reduce the debt service outlays; (c) Undertake refinancing of selected bilateral loans, both local and external, to extend the maturity profile and attain lower costs on debt; (d) Carry out an asset liability management exercise on the debt to ensure sustainability of cash flows; (e) Cease issuance of guarantees to commercially viable projects; and (f) Cease the issuance of letters of credit and guarantees to state owned enterprises that are technically insolvent until their balance sheet challenges are resolved.
Ethiopia: Investment board lifts restrictions on logistics industry reserved exclusively for Ethiopians (Addis Standard)
China-Africa updates
Chinese yuan should be steady for wider use in Africa as reserve currency and in trade (Global Times)
The Chinese government should keep the yuan steady and increase investment channels in Africa for the yuan to become a widely used currency in that continent, experts said on Wednesday. “The yuan’s use in Africa still does not match China’s increasing business interaction with African countries,” Sang Baichuan, director of the Institute of International Business at the University of International Business and Economics, told the Global Times on Wednesday. A trader from Guangzhou, capital of South China’s Guangdong Province, surnamed Dai who does business in the African country of Togo, said that the yuan is rarely used there.
Ghana: IMF unsure if $2bn China deal is loan or barter (GhanaWeb)
The Akufo-Addo government has left the International Monetary Fund confused about whether a $2bn China deal constitutes a loan. The classification is important because Ghana’s debt stock of at least 120bn cedis will shoot up if the China deal is classified as a loan. It would also raise questions about Ghana’s debt sustainability. The government has insisted the deal, in which China will provide $2bn worth of infrastructure in exchange for equal worth of bauxite, is barter, not a loan. The Minority has insisted this is a loan. Dissatisfied with government’s explanation, the Minority petitioned Ghana’s economic policy supervisor, the IMF and asked for clarification. The IMF Country Representative Natalia A. Koliadina has replied the petition from Haruna Iddrisu and Minority spokesperson for Finance Ato Forson. “Given the complexity of the transaction, I am unable to answer your questions immediately”, the response dated August 30, 2018, reads. The IMF Resident Director said the Fund will be discussing the financial agreement at its next meeting where Ghana’s IMF deal will also be reviewed. [IMF asks for time to decide on $2bn Sinohydro deal]
FOCAC: Kagame backs new China-Africa development framework (New Times)
The President said that increased private sector investment in the continent in key sectors of production will further drive growth in Africa. “Higher levels of long-term, private sector-led investment in key sectors of production in Africa is essential. The concrete targets offered by President Xi Jinping in this domain are very much welcome and appreciated,” he said. He called on parties to focus on implementation as well as continuous engagement. “Our focus now should be implementation. This will require continuous engagement and attention from leaders at the highest level in between Summits.” [Corrupt government? You voted for them – China pushes back at Africa summit]
Nigeria: NNPC, Chinese firms to build 10 biofuels complexes nationwide (Leadership)
The Nigerian National Petroleum Corporation yesterday said it has signed two MoUs in China with Nigerian-Chinese consortia to build not less than ten large biofuels complexes across the country. “The aspiration for the exploitation of renewable fuel resources in Nigeria is to implement our nationally determined contributions to the Paris Agreement; part of which requires the blending of 10% by volume of fuel-ethanol in gasoline and 20% by volume of biodiesel in automotive gas oil (diesel) for use in the transportation sector,” Baru stated.
Nigeria-China partnership yields over $5bn in projects – Buhari (Premium Times)
Nigeria: Customs collects N140b in August (The Nation)
The Nigeria Customs Service yesterday said it recorded the highest monthly revenue collection of N140,415,355,659.97 in the month of August this year. The Comptroller-General of Customs, Col. Hameed Ibrahim Ali (rtd) said it was a result of the dogged pursuit of the organisation’s reform programmes. The programmes include: strategic deployment of manpower; upgrade on the electronic systems from Nigeria Integrated Customs Information System (NICIS I) to NICIS II which has blocked leakages; and strict enforcement of extant guidelines by the Tariff and Trade Department. He also attributed the feat to the robust stakeholder engagements resulting in higher compliance and increased disposition of officers and men to change the way of doing things for the better.
Connections beyond trade crucial for economic growth in Europe, Central Asia (World Bank)
International connectivity through trade, investment, migration, communications, and transport is critical to economic development in Europe and Central Asia. These connections work together to help firms become more productive through knowledge and technology transfers, says a new World Bank report, Critical connections: promoting economic growth and resilience in Europe and Central Asia. The new World Bank report measures connectivity by creating a new indicator, the Multidimensional Connectivity index, that combines several channels of international connections, including: trade, FDI, migration, ICT, and transport links. According to the report, the best connected sub-regions of Europe and Central Asia are Western Europe followed by Northern, Central, and Southern Europe. The Western Balkans, Central Asia, and the South Caucasus have the lowest levels of overall connectivity.
2018 Business and Finance Outlook (OECD)
The risks to financial stability in China arising from elevated corporate indebtedness make it all the more important to ensure that China’s Belt and Road Initiative results in economically viable projects. The Outlook recognises the important contribution that the BRI can make to filling the global infrastructure gap, but emphasises that all international infrastructure efforts should be mutually reinforcing and respect global standards. Five areas that could benefit cross-border infrastructure investments from greater alignment with international standards stand out:
Wednesday’s Quick Links: Ghana: Government to impose 5% fiscal deficit capping on state – Senior Minister Nana Addo lobbies for Alibaba Africa headquarters in Ghana Mozambique: Baseline survey on the school-to-work transitions of university graduates Mozambique: 40% spike in tourism earnings in 2017 Kenya: Private sector expansion rebounds in August – PMI South Africa: Private sector activity falls to 2-1/2 year low in August – PMI From rupee to rupiah, emerging market currencies feel the heat WEF: What do the economic woes of Turkey, Argentina and Indonesia have in common? |
Related News
2018 Development Finance Forum: Unlocking investment opportunities in the East African Community
Trillions of dollars of under-invested capital in the developed world are seeking higher returns at the same time as developing countries seek capital as well as expertise, knowledge and implementation capacity to grow.
What can we do now to accelerate these linkages in housing, agribusiness and tourism in East African Community (EAC) countries, three sectors with significant growth and job creation potential? This year’s Development Finance Forum (DFF) in Kigali will bring together business leaders, policy makers, thought leaders and financiers from private and public sectors in the EAC and beyond to drill down together on what can be done to start to address some of the biggest challenges to scaling up private investment in these areas.
The DFF aims to bring together the stakeholders that can change the risk-return landscape in developing countries – both to achieve clarity on the roles each has to play, and to explore promising ideas, initiatives, and partnerships that need extra impetus to become successful. Through its focus on action and the identification of specific constraints and opportunities in Africa, the DFF aims to offer a pre-investment platform for the public and private sector to explore market-building alliances and opportunities in Africa.
Focus Themes
Unlocking Large Scale Housing Supply to Provide Housing for All
Every country in East Africa suffers from a shortage of affordable housing. Eliminating the housing shortage would create hundreds of thousands of jobs, many of them suitable for young workers, boost economic growth, and improve the lives of millions. This event will bring together thought leaders and executives from both public and private sectors to look at regulatory, supply, construction, and financing issues across the housing value chain. The event will explore solutions being taken within and outside East Africa that encourage private investment. The role of public-private partnerships and new and/or green technologies may also be featured.
Agribusiness: Increasing Competitiveness with Private investment
Agribusiness is one of the largest sectors in the region with great potential to contribute even more to growth, jobs, and food security. This forum will build on past regional initiatives to catalyze public and private sector collaboration in agricultural value chains to unlock opportunities for effective investment, increase competitiveness and achieve development objectives.
Using the World Bank Group’s “Maximizing Finance for Development” approach as a framework, these sessions will dig into areas such as Regulation/Policy, Infrastructure, and Financing to share lessons of what has worked, what has not, and what can be done better when aligning interests in the agribusiness sector. Technology and regional cooperation will be cross-cutting issues.
Growing Tourism Through Destination Development
Tourism is a powerful vehicle for economic growth and job creation. What are the keys to building a stronger and more resilient tourism sector across the sub-region? The Forum will bring together international experts, private sector operators and policy makers to look at successful experiences from the region and beyond in destination development, and keeping destinations competitive over their lifecycle.
Related News
tralac’s Daily News Selection
Profiled call for papers: Fourth African Interna-tional Economic Law Network Biennial Conference:
The AfIELN 4th Biennial Conference (18-20 July 2019, Strathmore University, Nairobi) invites academics, practitioners, and government officials to submit papers that examine the recent crop of African trade, investment and economic partnership agreements as well as the AfCFTA and their impacts on Africa’s economic development. The conference committee invites submissions that address Africa’s participation in international economic law in the 21st Century in the following 21 areas (pdf):
2018 FOCAC Beijing Summit: selected speeches, commentaries
(i) President Xi Jinping’s speech at the opening ceremony. To build an even closer China-Africa community with a shared future in the new era, China will, on the basis of the ten cooperation plans already adopted, launch eight major initiatives in close collaboration with African countries in the next three years and beyond. Extracts:
First, China will launch an industrial promotion initiative. We have decided to open a China-Africa economic and trade expo in China; we encourage Chinese companies to increase investment in Africa, and will build and upgrade a number of economic and trade cooperation zones in Africa. We will support Africa in achieving general food security by 2030, work with Africa to formulate and implement a program of action to promote China-Africa cooperation on agricultural modernization.
Second, China will launch an infrastructure connectivity initiative. We have decided to jointly formulate a China-Africa infrastructure cooperation plan with the African Union. On the basis of following multilateral rules and procedures, we will support African countries in making better use of financing resources of the Asian Infrastructure Investment Bank, the New Development Bank, and the Silk Road Fund.
Third, China will launch a trade facilitation initiative. We have decided to increase imports, particularly non-resource products, from Africa. We support the building of the African Continental Free Trade Area and will continue to hold free trade negotiations with interested African countries and regions. And we will set up relevant mechanisms to promote e-commerce cooperation with Africa.
Fourth, we will launch a green development initiative. We have decided to undertake 50 projects for green development and ecological and environmental protection in Africa to expand exchanges and cooperation with Africa on climate change, ocean, desertification prevention and control, and wildlife protection. A China-Africa environmental cooperation center will be set up, and more policy dialogue and joint research on environmental issues will be conducted.
(ii) Remarks by South Africa’s President Cyril Ramaphosa. There has been rapid growth in Sino-African trade, with China now being Africa’s largest trade partner. Much of what is exported from Africa are raw materials and primary products; much of what is imported from China are finished goods. We export to China what we extract from the earth; China exports to us what it makes in its factories. This obviously limits the ability of African countries to extract the full value for their abundant natural resources and to create work for their people. It is through platforms like FOCAC that we should work to balance the structure of trade between Africa and China. We welcome the fact that, in addition to trade, China has become a major investor in the continent. As we look to expand Chinese investment in Africa, we need to encourage more local partnerships between Chinese and African entrepreneurs. Through the transfer of knowledge and technology, such partnerships can contribute to the development and sustainability of African businesses. [Ramaphosa: International trading order must be upheld]
(iii) Remarks by Somalia’s President Mohamed Abdullahi Farmaajo. Somalia’s coastline has historically been key to facilitating trade between China, Africa and the Arabian Peninsula. Now, with the implementation of the Belt and Road Initiative, and our reserves of untapped resources, Somalia has the potential of becoming a driving force for regional connectivity and prosperity. By seizing these potential economic opportunities, Somalia can contribute to regional and global stability and prosperity.
(iv) Remarks by UN SG, António Guterres. Fourth, promoting sustainable fiscal policies. UN country teams are fully committed to supporting African nations to seize their full potential of their cooperation with China. At the same time, we all need to work together to guarantee the financial sustainability of African development. Sound fiscal policies are an essential pillar for sustainable development. It is imperative that we support Africa to both preserve and create fiscal space for investments. That includes a concerted global effort to combat tax evasion, money laundering and illicit financial flows allowing to contribute to the success to the strong African commitment to fight corruption as agreed at the African Union Summit in early January 2018.
(v) CARI’s Deborah Brautigam: China’s FOCAC financial package for Africa 2018 - my quick analysis in “four facts”
South Africa: Economy shrinks by 0,7% in Q2: 2018 (Stats SA)
The South African economy slipped into recession during the second quarter of 2018, shrinking by 0,7% quarter-on-quarter (seasonally adjusted and annualised). This followed a revised 2,6% contraction in the first quarter of 2018. The widely recognised indicator of recession is two (or more) consecutive quarters of negative growth (real GDP quarter-on-quarter). South Africa experienced its last recession during the 2008–2009 global financial crisis with three consecutive quarters of economic decline. The 0,7% downturn in the second quarter of 2018 was a result of a fall-off in activity in the agriculture, transport, trade, government and manufacturing industries. [Downloads: latest GDP report, data, media presentation]
Mauritius: Second Quarter trade deficit (Statistics Mauritius)
The trade deficit for the second quarter of 2018 works out to Rs 27,789m, 15.8% higher than the deficit of Rs 23,999m for the corresponding quarter of 2017. Compared to the previous quarter, the deficit was higher by 32.0%. Total exports for the second quarter of 2018 amounted to Rs 20,238m, 0.5% lower compared to the corresponding quarter of 2017. Total imports increased by 8.3% from Rs 44,347m in the second quarter of 2017 to Rs 48,027m in the second quarter of 2018. Forecast 2018 (pdf): Based on recent past trends and information from various sources, the forecast of total exports and imports for the year 2018 is maintained at around Rs 84,000m and Rs 193,000m respectively. Trade deficit for 2018 is therefore expected to remain at Rs 109,000m.
Egypt: Africa Forum 2018 dates confirmed
The Ministry of Investment and International Cooperation of Egypt and COMESA Regional Investment Agency today confirmed dates for the Africa 2018 forum (8-9 December, Sharm El Sheikh). This year’s edition takes place against an important backdrop with Egypt taking over the chairmanship of the African Union in 2019, making it a platform to help shape private sector priorities for the coming year. The theme for this year, ‘Bold leadership and collective commitment: advancing intra-African investments’, reflects the need for policy makers and the private sector to collaborate more closely and take tough decisions to advance and fast-track development across the continent. The organisers have confirmed that five African heads of state have already confirmed their participation, including the newly-elected Zimbabwean President, Emmerson Mnangagwa, and President Mahamadou Issoufou of Niger, who has been leading the drive to get commitment from other African heads of State to sign the AfCFTA. This year, the Forum will have a day focusing on the role of women in helping them define the continental priorities in a gathering called Women Empowering Africa.
Afreximbank presents trade facilitation programme to Egyptian banks
The Afreximbank Trade Finance Facilitation Programme, which compromises a Trade Confirmation Programme and a Trade Confirmation Guarantee Programme, is being offered in response to the increasingly stringent compliance and regulatory requirements being imposed by international banks on African banks for trade confirmation lines. Those requirements have resulted in the international banks reducing or withdrawing trade lines to African banks and in confirming banks having risk capital and capacity constraints to support trade finance transactions. Participating in the session, which took place on 27 August, were executives from 24 banks. The participants were informed that Afreximbank will be undertaking a roadshow to 10 African countries (Senegal, Guinea, Ghana, Sierra Leone, Rwanda, Tanzania, Cameroon, DRC, Mali and Burkina Faso) to promote the programme.
Related: An interview with Egypt’s Industry Minister. Egypt’s exports to Africa represent 0.007% of Egypt’s total non-oil exports annually and account for only 1% of Africa’s imports from the world. Consequently, through our export plan, we seek to increase Egypt’s exports to Africa to 2% of its imports from the world. The ministry focuses on a number of export industries that are most popular and capable of doubling exports and have added value, namely engineering, food, chemical, pharmaceutical, building materials, and ready-made garments.
Mozambique: Chinese partner invests $3bn in Chongoene port, railway system (Club of Mozambique)
Just over $3bn could be invested in establishing a cabotage port at Chongoene and rail links to the Limpopo Corridor in Macarretane, together with extensions to projects such as Chibuto’s heavy sands industry areas in Gaza and Jangamo in Inhambane. Taking part in the China-Mozambique Business Forum in Beijing, Muyaque chairman Leonardo Simão said that there was already a partnership with China Railways International Group to materialise the project. After a preliminary assessment, parties were discussing how to move forward to detailed studies to determine costs, the time required for implementation and the return on investment. The idea is that, in addition to the port, a railway line and branch lines linking Inharrime and Chibuto will be built for the heavy sands projects, which on their own make the initiative viable.
Dar, Kampala now strike deal over sugar row (Business Daily)
Tanzania and Uganda have reached an agreement on how to conduct cross-border sugar trading between the two EAC partner states. This comes after Tanzania recently slapped a 25% import duty on 12,000 bags (600 tonnes) of Ugandan sugar. The permanent secretary in the ministry of Industry, Trade and Investment, Prof Joseph Buchweishaija, told The Citizen that, following their recent meeting in Kampala, the two countries agreed to sort out their differences on how Tanzania should import sugar from Uganda. “We agreed that when there is a sugar deficit in Tanzania, our Ugandan colleagues will fill the gap, and that will happen only when there’s a surplus there.”
According to Prof Buchweishaija, sugar was just one of the many subjects that the top leaders from the two countries deliberated upon during their Second Session of the Joint Permanent Commission meeting in Kampala last week. Prof Buchweishaija’s Ugandan counterpart, Mr Julius Onen, said in Kampala that Uganda plans to propose a quota system that would allow the EAC member countries to enjoy “first option” status in the event that there is commodity scarcity within the community. With the quota system in place, he said, the EAC member states would automatically be given the first shot in case of scarcity.
High-Level Conference on the Lake Chad Region (3-4 September, Berlin): Opening statement by UNDP’s Achim Steiner
Needs identified by governments to strengthen resilience in the region amount to $2.3bn for a medium timeframe of three years. While the number might seem high at first, I recall that we are addressing root causes of a large-scale crisis with a need to tackle multiple issues simultaneously. To reduce the dependence on humanitarian assistance and to put the region on the path of sustainable development, humanitarian, stabilization and development agents must work in sync. Scaling-up development interventions in the Lake Chad Basin Region while humanitarian assistance continues will be key to reduce vulnerabilities and strengthen resilience with a long-term perspective. We are convinced that despite operational challenges, it is possible to invest now to strengthen the resilience of individuals, communities and institutions and make the 2030 Sustainable Development Agenda a reality for them. Relevant frameworks for action do exist, nationally and regionally: [Remarks by Mark Lowcock, Under-Secretary-General for Humanitarian Affairs and Emergency Relief, pdf]
Tuesday’s Quick Links: Zimbabwe: Manufacturing Firm Survey 2015-2016 data is available for download from the DataFirst Open Data Portal Lesotho’s textile and apparel sector: This week’s African Cotton, Textiles & Apparel Monitor contains a special feature on the implications of the new minimum wage increase in Lesotho. South Africa’s coal exports slump to 1-year low |
Related News
South Africa: Economy shrinks by 0,7% in the second quarter of 2018
The South African economy slipped into recession during the second quarter of 2018, shrinking by 0,7% (seasonally adjusted and annualised). This followed a revised 2,6% contraction quarter-on-quarter in the first quarter of 2018.
The widely recognised indicator of recession is two (or more) consecutive quarters of negative growth (real GDP quarter-on-quarter). South Africa experienced its last recession during the 2008-2009 global financial crisis with three consecutive quarters of economic decline.
The 0,7% downturn in the second quarter of 2018 was a result of a fall-off in activity in the agriculture, transport, trade, government and manufacturing industries.
Agriculture production fell by 29,2% in the second quarter of 2018, following a 33,6% slump in the first quarter. This was largely driven by a decline in the production of field crops and horticultural products. Continued drought conditions in Western Cape and a severe hailstorm in Mpumalanga, resulting in extensive crop damage, also placed additional pressure on production in the second quarter.
The transport industry contracted by 4,9%, largely a result of decreased activity in both land and air transport. Industrial action within the industry, combined with a decline in freight transport, contributed to the slowdown.
The trade industry experienced its second consecutive quarter of negative growth, falling by 1,9%. Subdued sales in both motor and retail trade contributed to the decline. South African household consumption expenditure fell in the second quarter of 2018 compared with the first quarter of 2018, in line with the fall in retail trade sales. Households spent less on products such as transport, food, beverages and clothing.
Government activity decreased by 0,5%, largely as a result of falling employment numbers in the civil service.
Manufacturing was the third industry to record a second consecutive quarter of negative growth, following in the footsteps of agriculture and trade. Manufacturing activity fell by 0,3%, driven by a fall in the production of electrical machinery, transport equipment (including motor vehicles), and products within the furniture and ‘other’ manufacturing division.
Mining, construction, electricity, finance and personal services experienced positive growth, but not enough to lift overall economic growth out of negative territory. Mining’s growth rate of 4,9% was largely spurred on by a rise in the production of platinum group metals, copper and nickel. Construction activity increased by 2,3%, driven by a rise in non-residential buildings and construction work activities.
Related News
2018 FOCAC Beijing Summit: Chinese President Xi Jinping’s speech at the opening ceremony
Chinese President H.E. Xi Jinping delivered a keynote speech at the opening ceremony of the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) on Monday. The full text of his speech is available below.
Work Together for Common Development and a Shared Future
September has just set in Beijing, bringing with it refreshing breeze and picturesque autumn scenery. And we are so delighted to have all of you with us, friends both old and new, in this lovely season for the reunion of the China-Africa big family at the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC).
I wish to extend, on behalf of the Chinese government and people and in my own name, a very warm welcome to all of you, dear colleagues and guests. I also wish to extend, through you, the best regards and cordial greetings of the Chinese people to the brotherly people of Africa.
I wish to mention in particular that since the Johannesburg Summit, FOCAC has had three new members, namely, the Gambia, Sao Tome and Principe and Burkina Faso. Today, we are joined by President Barrow, Prime Minister Trovoada and President Kabore and their delegations. Let us welcome them with a warm round of applause!
Over a month ago, I paid my fourth visit to Africa as the Chinese President, which was also my ninth visit to this land of great promise. During the last visit, I once again saw an Africa that is beautiful and richly endowed, that is full of dynamism in development, and I learned about first-hand the African people’s ardent hope for a better future. I concluded the visit even more convinced that Africa’s development has great potential, that this great continent is full of hope, that China-Africa friendship and cooperation have broad vistas, and that China and Africa can forge an even stronger comprehensive strategic and cooperative partnership!
As an ancient Chinese scholar once observed, “Only with deep roots can a tree yield rich fruit; only filled with oil can a lamp burn brightly.” History follows its own rules and logic. With similar fate in the past and a common mission, China and Africa have extended sympathy to and helped each other throughout all the years. Together, we have embarked on a distinctive path of win-win cooperation.
Marching on this path, China has followed the principle of sincerity, real results, amity and good faith and the principle of pursuing the greater good and shared interests. China has stood with African countries. Together, we have worked in unity and forged ahead.
-
China values sincerity, friendship and equality in pursuing cooperation. The over 1.3 billion Chinese people have been with the over 1.2 billion African people in pursuing a shared future. We respect Africa, love Africa and support Africa. We follow a “five-no” approach in our relations with Africa: no interference in African countries’ pursuit of development paths that fit their national conditions; no interference in African countries’ internal affairs; no imposition of our will on African countries; no attachment of political strings to assistance to Africa; and no seeking of selfish political gains in investment and financing cooperation with Africa. We hope this “five-no” approach could apply to other countries as they deal with matters regarding Africa. For China, we are always Africa’s good friend, good partner and good brother. No one could undermine the great unity between the Chinese people and the African people.
-
China pursues common interests and puts friendship first in pursuing cooperation. China believes that the sure way to boost China-Africa cooperation is for both sides to leverage its respective strength; it is for China to complement Africa’s development through its own growth, and it is for both China and Africa to pursue win-win cooperation and common development. In doing so, China follows the principle of giving more and taking less, giving before taking and giving without asking for return. With open arms, we welcome African countries aboard the express train of China’s development. No one could hold back the Chinese people or the African people as we march toward rejuvenation.
-
China takes a people-oriented approach in pursuing practical cooperation with efficiency. With top priority given to the interests of Chinese and African peoples, China advances its cooperation with Africa to improve the well-being of Chinese and African peoples and deliver more benefits to them. We will fully honor the promises we have made to our African brothers. Faced with new developments and challenges, China will continue to improve institution building, develop new ideas and expand areas of cooperation with Africa to bring our cooperation to greater heights. Ultimately, it is for the peoples of China and Africa to judge the performance of China-Africa cooperation. No one could deny the remarkable achievements made in China-Africa cooperation, not with their assumption or imagination.
-
China takes an open and inclusive approach to cooperation. China is fully aware that long-term stability, security, development and invigoration for Africa is not only the longing of the African people; it is also the responsibility of the international community. China stands ready to work with other international partners to support Africa in pursuing peace and development. China welcomes and supports all initiatives that meet Africa’s interests, and believes that it should be the same with the wider international community. No one could stand in the way or obstruct international efforts to support Africa’s development.
Our world is undergoing profound changes unseen in a century: the surging trend toward multi-polarity, economic globalization, IT application and cultural diversity, accelerated transformation of the global governance system and international order, rapid rise of emerging markets and developing countries, and greater balance in global power configuration. The well-being of people in all countries has never been so closely intertwined as it is today.
On the other hand, we also face challenges unseen before. Hegemony and power politics persist; protectionism and unilateralism are mounting; war, conflicts, terrorism, famine and epidemics continue to plague us; security challenges, both traditional and non-traditional, remain as complex and interwoven as ever.
However, we are firm in our conviction that peace and development remain the underlying trend of our times. Indeed, they are the call of the times. The international community should take our historical responsibility and respond to the call of our times with solidarity, vision, courage and a sense of mission.
-
To respond to the call of the times, China takes it its mission to make new and even greater contribution to mankind. China will work with other countries to build a community with a shared future for mankind, forge partnerships across the world, enhance friendship and cooperation, and explore a new path of growing state-to-state relations based on mutual respect, fairness, justice and win-win cooperation. Our goal is to make the world a place of peace and stability and life happier and more fulfilling for all.
-
To respond to the call of the times, China is ready to jointly promote the Belt and Road Initiative with international partners. We hope to create new drivers to power common development through this new platform of international cooperation; and we hope to turn it into a road of peace, prosperity, openness, green development and innovation and a road that brings together different civilizations.
-
To respond to the call of the times, China will get actively involved in global governance and stay committed to the vision of consultation, cooperation and benefit for all in global governance. China has all along played its part in promoting world peace and development and upholding the international order. We call for increasing the representation and voice of developing countries in international affairs and support efforts to strengthen the South, a weak link in the global governance system, as well as efforts to create synergy in South-South cooperation. We will continue the efforts to make the global governance system better represent the will and interests of the majority of countries, especially developing countries.
-
To respond to the call of the times, China will remain committed to opening-up. Facing uncertainty and unpredictability in global growth, China will continue to grow an open economy for win-win cooperation, and it will embrace an open world economy and the multilateral trading system and reject protectionism and unilateralism. No one who keeps himself in isolation on a single island will have a future.
To quote a Chinese saying, “The ocean is vast because it rejects no rivers.” China, the world’s largest developing country, and Africa, the continent with the largest number of developing countries, have long formed a community with a shared future. Indeed, we share a common stake. China will work with Africa to achieve our shared goal of building a closer China-Africa community with a shared future and turn it into a pacesetter for building such a community for mankind.
First, let us build a China-Africa community with a shared future to assume our joint responsibility. We could increase political and policy dialogue at various levels, enhance mutual understanding and support on issues involving each other’s core interests and major concerns, and boost coordination on major international and regional issues. Such efforts will enable us to uphold the common interests of China and Africa as well as other developing countries.
Second, let us build a China-Africa community with a shared future that pursues win-win cooperation. We could both seize the opportunity created by the complementarity between our respective development strategies and the major opportunities presented by the Belt and Road Initiative. We need to see to it that the Belt and Road Initiative and the AU Agenda 2063, the UN 2030 Agenda for Sustainable Development and the development programs of African countries better complement each other. With these efforts, we could expand areas of cooperation, unlock new cooperation potential, consolidate our traditional areas of cooperation, and foster new highlights of cooperation in the new economy.
Third, let us build a China-Africa community with a shared future that delivers happiness for all of us. Making lives better for our people is what we aim to achieve in growing China-Africa relations; so we need to make sure our cooperation delivers real benefits to us both in China and in Africa. Mutual help and solidarity is what has defined China-Africa relations over the years. Going forward, China will do more to help Africa alleviate poverty, pursue development, increase employment and income, and better the lives of its people.
Fourth, let us build a China-Africa community with a shared future that enjoys cultural prosperity. Both China and Africa are proud of our splendid civilizations, and we are both ready to make greater contributions to promoting cultural diversity in the world. By enhancing exchanges, mutual learning and harmonious co-existence of our civilizations, we will inject lasting impetus into invigorating our civilizations and cultures, enriching our artistic creations, and provide rich cultural nourishment for China-Africa cooperation. With more people-to-people exchanges in culture and art, education, sports, and between our think tanks, the media, and women and young people, we will strengthen the bond between the people of China and Africa.
Fifth, let us build a China-Africa community with a shared future that enjoys common security. People that have gone through adversity value peace most. China champions a new vision of security featuring common, comprehensive, cooperative and sustainable security. We firmly support African countries and the African Union as well as other regional organizations in Africa in solving African issues in the African way, and we support the African initiative of “Silence the Guns in Africa”. China is ready to play a constructive role in promoting peace and stability in Africa and will support African countries to strengthen their independent capacity for safeguarding stability and peace.
Sixth, let us build a China-Africa community with a shared future that promotes harmony between man and nature. The Earth is the only place which we mankind call home. China will work with Africa to pursue green, low-carbon, circular and sustainable development and protect our lush mountains and lucid waters and all living beings on our planet. We will strengthen exchange and cooperation with Africa on climate change, clean energy, prevention and control of desertification and soil erosion, protection of wildlife and other areas of ecological and environmental preservation. Together, we could make China and Africa beautiful places for people to live in harmony with nature.
Since the 2015 FOCAC Johannesburg Summit, China has fully implemented the ten cooperation plans adopted at the Summit. A large number of railway, highway, airport, port and other infrastructure projects as well as a number of economic and trade cooperation zones have been built or are under construction. Our cooperation on peace and security, science, education, culture, health, poverty reduction, and people-to-people interactions has deepened. The US$60 billion financing pledged by China has been either delivered or arranged. These ten cooperation plans have brought huge benefits to the African and Chinese peoples. They have fully demonstrated the creativity, rallying power and efficiency of China-Africa cooperation, and lifted China-Africa comprehensive strategic and cooperative partnership to new heights.
To build an even closer China-Africa community with a shared future in the new era, China will, on the basis of the ten cooperation plans already adopted, launch eight major initiatives in close collaboration with African countries in the next three years and beyond.
First, China will launch an industrial promotion initiative. We have decided to open a China-Africa economic and trade expo in China; we encourage Chinese companies to increase investment in Africa, and will build and upgrade a number of economic and trade cooperation zones in Africa. We will support Africa in achieving general food security by 2030, work with Africa to formulate and implement a program of action to promote China-Africa cooperation on agricultural modernization. We will implement 50 agricultural assistance programs, provide RMB 1 billion of emergency humanitarian food assistance to African countries affected by natural disasters, send 500 senior agriculture experts to Africa, and train young researchers in agri-science and entrepreneurs in agri-business. We will support Chinese companies in Africa to forge alliance of corporate social responsibilities. We will continue to strengthen cooperation with African countries in local currency settlement and make good use of the China-Africa Development Fund, the China-Africa Fund for Industrial Cooperation and the Special Loan for the Development of African SMEs.
Second, China will launch an infrastructure connectivity initiative. We have decided to jointly formulate a China-Africa infrastructure cooperation plan with the African Union. We will support Chinese companies in participating in Africa’s infrastructure development by way of investment-construction-operation or through other models, with focus on enhancing cooperation on energy, transport, information, telecommunications and cross-border water resources. We will work with Africa to undertake a number of key connectivity projects. We will support Africa in developing the Single African Air Transport Market and open more direct flights between China and Africa. We will facilitate bond issuance by African countries and their financial institutions in China. On the basis of following multilateral rules and procedures, we will support African countries in making better use of financing resources of the Asian Infrastructure Investment Bank, the New Development Bank, and the Silk Road Fund.
Third, China will launch a trade facilitation initiative. We have decided to increase imports, particularly non-resource products, from Africa. We support African countries in participating in the China International Import Expo. The least developed African countries participating in it will be exempted from paying exhibition stand fees. We will continue to strengthen exchanges and cooperation on market regulation and between customs authorities, and implement 50 trade facilitation programs for Africa. We will hold, on a regular basis, marketing activities for Chinese and African brand products. We support the building of the African Continental Free Trade Area and will continue to hold free trade negotiations with interested African countries and regions. And we will set up relevant mechanisms to promote e-commerce cooperation with Africa.
Fourth, we will launch a green development initiative. We have decided to undertake 50 projects for green development and ecological and environmental protection in Africa to expand exchanges and cooperation with Africa on climate change, ocean, desertification prevention and control, and wildlife protection. A China-Africa environmental cooperation center will be set up, and more policy dialogue and joint research on environmental issues will be conducted. The China-Africa Green Envoys Program will be implemented to strengthen Africa’s human capacity for environmental management, pollution prevention and control, and green development. A China-Africa bamboo center will be established to help Africa make bamboo and rattan products. China will also work with Africa to raise public awareness of environmental protection.
Fifth, we will launch a capacity building initiative. China will share more of its development practices with Africa and support cooperation with Africa on economic and social development planning. Ten Luban Workshops will be set up in Africa to provide vocational training for young Africans. China will support opening of a China-Africa innovation cooperation center to promote youth innovation and entrepreneurship. A tailor-made program will be carried out to train 1,000 high-caliber Africans. China will provide Africa with 50,000 government scholarships and 50,000 training opportunities for seminars and workshops, and will invite 2,000 young Africans to visit China for exchanges.
Sixth, we will launch a health care initiative. China has decided to upgrade 50 medical and health aid programs for Africa, particularly flagship projects such as the headquarters of the African Center for Disease Control and Prevention and China-Africa Friendship Hospitals. Exchange and information cooperation will be carried out on public health. Cooperation programs will be launched on the prevention and control of emerging and re-emerging communicable diseases, schistosomiasis, HIV/AIDS and malaria. China will train more medical specialists for Africa and continue to send medical teams that better meet Africa’s needs. More mobile medical services will be provided to patients for the treatment of cataract, heart disease and dental defects. And targeted health care services will be provided to women and children of vulnerable groups in Africa.
Seventh, we will launch a people-to-people exchange initiative. China decided to establish an institute of African studies to enhance exchanges with Africa on civilization. The China-Africa Joint Research and Exchange Plan will be upgraded. Fifty joint cultural, sports and tourism events will be organized. China welcomes Africa’s participation in the Silk Road International League of Theaters, the Silk Road International Museum Alliance and the Network of Silk Road Art Festivals. A China-Africa media cooperation network will be established. More African culture centers will be opened in China and more Chinese culture centers in Africa. Qualified African educational institutes are welcome to host Confucius Institutes. More African countries are welcome to become destinations for Chinese tour groups.
Eighth, we will launch a peace and security initiative. China decided to set up a China-Africa peace and security fund to boost our cooperation on peace, security, peacekeeping, and law and order. China will continue to provide military aid to the AU, and will support countries in the Sahel region and those bordering the Gulf of Aden and the Gulf of Guinea in upholding security and combating terrorism in their regions. A China-Africa peace and security forum will be established as a platform for conducting more exchanges in this area. Fifty security assistance programs will be launched to advance China-Africa cooperation under the Belt and Road Initiative, and in areas of law and order, UN peacekeeping missions, fighting piracy and combating terrorism.
To make sure that these eight initiatives are implemented on the ground, China will extend US$60 billion of financing to Africa in the form of government assistance as well as investment and financing by financial institutions and companies. This will include US$15 billion of grants, interest-free loans and concessional loans, US$20 billion of credit lines, the setting up of a US$10 billion special fund for development financing and a US$5 billion special fund for financing imports from Africa. We encourage Chinese companies to make at least US$10 billion of investment in Africa in the next three years. In addition, for those of Africa’s least developed countries, heavily indebted and poor countries, landlocked developing countries and small island developing countries that have diplomatic relations with China, the debt they have incurred in the form of interest-free Chinese government loans due to mature by the end of 2018 will be exempted.
The future of China-Africa relations lies in our young people. Many of the measures in the eight initiatives I just outlined are designed to help young people in Africa. These measures will provide young Africans with more training and job opportunities and open up more space for their development. Last October, I wrote back to the exchange students of the Institute of South-South Cooperation and Development. Most of them were from Africa. I encouraged them to make the best of what they have learned, aim high, and keep working hard to promote China-Africa cooperation and South-South cooperation. I believe they have new roles to play and new accomplishments to make in this regard.
“The red rising sun will light up the road ahead.” I am confident that the baton of China-Africa friendship will be passed from one generation to the next and that China and Africa, working together, will build an even more vibrant community with a shared future. The day will surely come when the Chinese nation realizes its dream of national renewal and Africa realizes its dream of unity and invigoration!
Thank you.
Related News
2018 Forum on China-Africa Cooperation (FOCAC): Remarks by President Cyril Ramaphosa
Remarks by South African President Cyril Ramaphosa during the 2018 FOCAC Opening Ceremony in Beijing, China
At the outset, allow me to express our profound gratitude for the generous hospitality accorded to all of us since our arrival in the ancient city of Beijing.
Africa and China enjoy a rich history characterised by friendship and solidarity.
We recall the historical visit of Chinese Premier Zhou Enlai to Africa in the 1960s, where he articulated the key principles underpinning our comprehensive strategic and cooperative partnership.
He spoke of a relationship founded on equality, trust, mutual respect and mutual benefit.
Now, more than 50 years later, these principles remain at the centre of cooperation between the continent of Africa and China.
These are the principles that underpin the Forum on China-Africa Cooperation; they inform our decisions and guide our actions.
Since its launch in 2000, FOCAC has grown both in extent and scope.
It serves as an effective platform for south-south cooperation focused on the tangible improvement of the quality of lives of all the people of Africa.
In the values that it promotes, in the manner that it operates and in the impact that it has on African countries, FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe.
The progress that has been made over the last 18 years demonstrates the tangible and lasting benefit of FOCAC to the people of Africa and to the people of China.
The relationship that we have forged through FOCAC is premised on the fundamental and inalienable right of the African people to determine their own future.
It is premised on the African Union’s Agenda 2063, a vision that has been crafted in Africa, by Africans.
It is a vision of an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the international arena.
It is a vision of a continent where commerce, trade, investment, skills and knowledge move freely across the borders that were imposed on us by our colonial rulers.
We are working to build an Africa that is defined by good governance, democracy, respect for human rights, justice and the rule of law.
It is an Africa where the guns have been silenced, and where all its people live in peace and security.
It is an Africa with a strong cultural identity, common heritage, shared values and ethics.
Importantly, it is an Africa whose development is people-driven, relying on the capability and potential of its people.
We look to China as a valuable and committed partner in advancing Agenda 2063.
It is in pursuit of this vision that we embrace China’s ‘Belt and Road’ initiative.
We are confident that this initiative, which effectively compliments the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China.
It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.
Yesterday, our Ministers of Foreign Affairs and Trade deliberated on the implementation of the pdf Johannesburg Action Plan (1.99 MB) .
We are greatly encouraged by their assessment that the ten cooperation plans announced in 2015 have been fully implemented, for it shows a partnership that is hard at work to advance the mutual interests of Africa and China.
The China-Africa industrialisation plan has driven industrial development in many parts of the continent and contributed to economic transformation.
The agricultural modernisation plan has promoted greater agricultural productivity and the infrastructure plan has boosted African connectivity and integration.
These plans have also contributed to environmental conservation, sustainable development, improved public health services, and peace and security.
Through FOCAC and other forums, China has worked to ensure that Africa’s development is prominent on the international agenda.
Building on these remarkable achievements, we welcome the announcement today by President Xi of new FOCAC initiatives that will have a significant and lasting impact on peace, stability and sustainable development on the African continent.
We appreciate the decision to provide new funding to African countries to the value of $60 billion and to invest in initiatives in areas such as industrial development, infrastructure, human resource development, health care, the green economy, and peace and security, among others.
Through this partnership, we are working together to advance growth and development on the African continent.
We have observed with interest and admiration China’s remarkable economic ascendance, making it the world’s second largest economy and third largest foreign investor.
We applaud its achievements in social development, lifting millions of people out of poverty and meeting almost all of the Millennium Development Goals.
There are many valuable lessons that Africa can learn from China’s impressive growth model and its approach to meeting the needs of its people.
Significantly, China has used its substantial capacity and resources as a catalyst for development in other markets.
As a result, the Forum on China-Africa Cooperation has become an essential platform to contribute to Africa’s social and economic advancement.
There has been rapid growth in Sino-African trade, with China now being Africa’s largest trade partner.
Much of what is exported from Africa are raw materials and primary products; much of what is imported from China are finished goods.
We export to China what we extract from the earth; China exports to us what it makes in its factories.
This obviously limits the ability of African countries to extract the full value for their abundant natural resources and to create work for their people.
It is through platforms like FOCAC that we should work to balance the structure of trade between Africa and China.
We welcome the fact that, in addition to trade, China has become a major investor in the continent.
As we look to expand Chinese investment in Africa, we need to encourage more local partnerships between Chinese and African entrepreneurs.
Through the transfer of knowledge and technology, such partnerships can contribute to the development and sustainability of African businesses.
They will be contributing to the expansion of Africa’s productive capacity and the creation of new industries.
It is important also that we promote investment-led trade between Africa and China, which addresses the nature and quality of investment in Africa.
We should seek inward investment that enables industrial development and the export of more value-added products.
Developments on the African continent are further expanding the potential benefits of cooperation.
We urge Chinese investors to take advantage of the great opportunities that will be created through the establishment of the African Continental Free Trade Area.
It will establish a single market of more than a billion people with considerable economic potential.
It will promote the industrialisation of African economies and position the continent as a global competitor.
Chinese companies that invest in Africa’s productive capacity will be able to reap the benefits of a massive continental market.
The economic value of FOCAC – to both Africa and China – is particularly important in the context of an increasingly uncertain global environment.
Global economic volatility and heightened concerns about peace and stability render developing countries particularly vulnerable.
There is a renewed threat to the rules-based multilateral global trading system, which although imperfect, does provide stability, predictability and a greater degree of fairness.
We should be using platforms such as FOCAC to reaffirm our shared commitment to multilateralism, a fair and transparent system of international trade and a global economic architecture that promotes the interests of the developing world.
Africa is the next frontier growth market in the world.
In the coming decades, it will create many opportunities not only for its people, but also for economic partners such as China.
China’s investment in Africa, its strengthening trade ties and its consistent support for Africa’s development will benefit the people of Africa and the people of China well into the future.
As we strengthen political and economic ties, we need to place greater emphasis on people-to-people cooperation.
We need, through such cooperation, to nurture and empower the youth of China and Africa.
This is a forward-looking partnership, concerned not only with the challenges of the present, but preparing for the opportunities of the future.
We should be using FOCAC as an instrument for youth development, to invest in building their capabilities and exposing them to the great possibilities that the world has to offer.
Our objectives extend beyond the peoples of Africa and China.
Together, we are working to build a community of shared future for all humankind.
This requires leadership, vision and partnership.
It requires dedication to building the capabilities of our peoples and a resolute commitment to the cause of development and progress.
With the foundation we have built through FOCAC, with the relationships we have established between our governments, leaders and people, I am certain that we will succeed.
I thank you.
Related News
In Beijing, UN chief urges China, Africa for a win-win collaboration for ‘the future we want’
Highlighting the economic and development progress made in China and Africa, United Nations Secretary-General António Guterres urged them to unite their combined potential for peaceful, sustainable and equitable progress to the benefit of all humankind.
Speaking at the Forum on China-Africa Cooperation in Beijing, Secretary-General Guterres underscored that it is vital that current and future development cooperation contributes to peace, security and to building a “community of shared future for mankind.”
“China and Africa have strengthened their relationship in recent years, enjoying growing mutual trust and exchanges at all levels,” he said.
“I commend this engagement. Cooperation, based on the principles of the UN Charter, can benefit your peoples and can benefit the international community as a whole.”
In his remarks, the UN chief also noted that development cooperation between them is increasing, based on the two mutually compatible roadmaps: the UN 2030 Agenda for Sustainable Development and the African Union’s (AU) Agenda 2063.
In that context, he highlighted five areas, explaining that these will be crucial for the success of the partnership between China and Africa. These included reinforcing the foundations of Africa’s progress given that stronger cooperation can help achieve sustainable and resilient development in the continent that is inclusive, reaching first those people that are furthest behind.
The Secretary-General also called for ensuring national ownership and African-led sustainable development. He noted the frameworks agreed between the UN and the AU on peace and security, as well as supporting Agenda 2063.
“These frameworks are based on our commitment to be a steadfast and trusted partner of Africa, with full respect for Africa’s stewardship of its own future,” said Mr. Guterres.
Noting the importance of South-South cooperation as “fundamental for fair globalization,” the Secretary-General also highlighted the need to implement North-South commitments, including those assumed in the context of the Addis Ababa Action Agenda on financing for development.
Mr. Guterres also called for promoting sustainable fiscal policies, underscoring that it is critical that Africa is supported to both preserve and create fiscal space for investments.
Climate change ‘an existential threat’
Further in his remarks, the UN chief also highlighted the existential threat posed by climate change.
“A sustainable future for China, Africa and the world means climate-friendly and climate-resilient development as it was underlined today by President Xi Jinping,” he said noting that the world is getting increasingly aware that climate change and environmental degradation are risk multipliers, especially for fragile states and vulnerable regions.
“China is today a global leader in climate solutions,” he added, urging the country to share its advances with Africa to enable the continent to leapfrog traditional polluting development in favour of green growth.
Concluding his remarks, the Secretary-General said that the Forum on China-Africa Cooperation Summit “exemplifies the win-win collaboration that is necessary for the future we want.”
“The UN will continue to support the China-Africa Partnership and more broadly, South-South cooperation, so that all nations – in Africa and beyond – may enjoy sustainable and inclusive development,” he said.
Secretary-General’s remarks to the China-Africa Cooperation Summit
I am honoured to be with all of you today.
This Forum on China-Africa Cooperation is an embodiment of two major priorities of the United Nations: to pursue fair globalization and to promote development that leaves no one behind in the context of a rules-based system of international relations supported by strong multilateral institutions.
China has achieved remarkable development progress in recent years, with an unprecedented reduction in poverty, and I commend its commitment to sharing its successes through different initiatives and namely the Belt and Road.
Africa, too, has made dramatic advances, and hosts some of the world’s most dynamic economies.
Together, China and Africa can unite their combined potential for peaceful, durable, equitable progress to the benefit of all humankind.
It is important that current and future development cooperation contributes to peace, security and to building a “community of shared future for mankind.”
China and Africa have strengthened their relationship in recent years, enjoying growing mutual trust and exchanges at all levels.
Development cooperation is increasing, based on the two mutually compatible roadmaps: the United Nations 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063.
I commend this engagement. Cooperation, based on the principles of the UN Charter, can benefit your peoples and can benefit the international community as a whole.
And allow me to mention five areas that will be crucial for the success of this very important partnership.
First, reinforcing the foundations of Africa’s progress.
Stronger cooperation between China and Africa can lead to sustainable, environmentally-friendly and resilient development in Africa that is inclusive, reaching first those people that are furthest behind.
Financial and technological support for infrastructure development is critical.
So is building capacity on trade as African countries start to realize the potential of the landmark Continental Free Trade Area.
And they’re also ready to support the strengthening national data systems to help African countries formulate policy and drive decision-making.
Second, ensuring national ownership and African-led sustainable development.
In the past year, the United Nations has agreed joint frameworks with the African Union on Peace and Security and on supporting Agenda 2063.
These frameworks are based on our commitment to be a steadfast and trusted partner of Africa, with full respect for Africa’s stewardship of its own future.
The China-Africa partnership echoes this collaborative approach to create not just immediate gains but long-lasting value.
And we are ready to support the strengthening of governance and institutional capacities in African countries to ensure country ownership and leadership that fully responds to the needs and aspirations of Africa’s people.
Of particular concern are education and job opportunities for young people, and equality and empowerment for the continent’s women and girls.
Third, deepening South-South cooperation.
I believe this Summit will contribute to preparations for the United Nations Conference on South-South Cooperation in Buenos Aires next year.
South-South cooperation is fundamental for fair globalization.
But the dramatic increase in South-South cooperation does not eliminate the need to implement North-South commitments, including those assumed in the context of the Addis Ababa Action Agenda.
We need to ensure that cooperation paves the way for Africa's economic vitality and greater trade, both at regional and global levels.
Partnership for sustainable development must also give more space for African voices, innovations and perspectives in global development discourse around the world.
Fourth, promoting sustainable fiscal policies.
United Nations Country Teams are fully committed to supporting African nations to seize their full potential of their cooperation with China.
At the same time, we all need to work together to guarantee the financial sustainability of African development.
Sound fiscal policies are an essential pillar for sustainable development.
It is imperative that we support Africa to both preserve and create fiscal space for investments.
That includes a concerted global effort to combat tax evasion, money laundering and illicit financial flows allowing to contribute to the success to the strong African commitment to fight corruption as agreed at the African Union Summit in early January 2018.
Fifth, climate change.
Climate change is an existential threat.
A sustainable future for China, Africa and the world means climate-friendly and climate-resilient development as it was underlined today by President Xi Jinping.
As we are increasingly aware, climate change and environmental degradation are risk multipliers, especially for fragile states and vulnerable regions.
China is today a global leader in climate solutions.
It is important that it shares its advances with Africa to enable the continent to leapfrog traditional polluting development in favour of green growth.
And also, to support Africa in adapting to climate change and in building resilience to the impacts that Africans have done so little to cause.
This Summit exemplifies the win-win collaboration that is necessary for the future we want.
The United Nations will continue to support the China-Africa Partnership and more broadly, South-South cooperation, so that all nations – in Africa and beyond – may enjoy sustainable and inclusive development.
Thank you, and I wish you a very productive summit.