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Working with China best bet to boost intra-African trade, industrialisation
Kenya's President William Ruto shakes hands with his Chinese counterpart Xi Jinping during bilateral talks at the Great Hall of the People in Beijing, China on September 3, 2024.
During the Mjadala Afrika debate, candidates for the African Union Commission (AUC) chairmanship—Raila Odinga of Kenya, Mahmoud Ali Youssouf of Djibouti, and Richard James Randriamandrato of Madagascar—unanimously agreed that Africa must prioritise its domestic market to boost intra-African trade and industrialisation. This requires bold strategic decisions free from the interference of geopolitics that often hinder the continent’s progress.
Africa, home to 1.5 billion people, abundant natural resources, and the world’s largest youth population, has immense economic potential.
However, its over-reliance on external trade and lack of infrastructure continue to limit its growth. Despite the operationalisation of the African Continental Free Trade Area (AfCFTA), intra-African trade remains low at just 15 percent, compared to 50-75 percent in the European Union. For Africa to thrive, improved infrastructure and strategic partnerships are crucial.
China has emerged as Africa’s most significant development partner through initiatives like the Forum on China-Africa Cooperation (FOCAC) and the Belt and Road Initiative. Unlike Western nations, whose support often comes with stringent conditions, China has prioritised large-scale infrastructure projects with immediate, visible benefits.
Roads, railways, and ports financed by China have boosted regional connectivity, expanded markets, and supported local businesses.
With Africa facing an annual infrastructure funding gap of $100 billion, partnerships with China offer tangible solutions. For example, China’s commitment to funding 30 infrastructure projects will play a crucial role in bridging this gap.
Projects like the stalled Cairo-Dakar and Lagos-Mombasa highways can significantly enhance connectivity and trade, paving the way for industrialisation.
During the ninth FOCAC meeting, President Xi Jinping outlined 10 partnership action plans covering trade, industrial cooperation, connectivity, agriculture, health, and security.
If fully implemented, these initiatives will align with Africa’s goals under AfCFTA and Agenda 2063 to promote industrialisation, diversify economies, and develop regional value chains.
Improved infrastructure will facilitate the free movement of goods, people, and ideas, helping to increase intra-African trade to over 50 percent.
China’s role goes beyond infrastructure; its financial support combines credit, aid, and private investments tailored to Africa’s priorities.
However, for these partnerships to succeed, Africa must adopt a unified approach rather than fragmented, country-specific strategies.
A collective continental vision will maximise the benefits of China’s support while fostering industrialisation and economic growth.
Africa must also shift from exporting raw materials to building industries that add value to its resources. Currently, the continent exports raw minerals and agricultural products while importing electronics, machinery, and vehicles.
By leveraging strong ties with China, Africa can attract investments in manufacturing and technology, creating jobs and reducing trade deficits
Working with China presents Africa’s best opportunity to overcome its infrastructure deficit, enhance intra-African trade, and achieve industrialisation.
By prioritising strategic partnerships and implementing AfCFTA effectively, Africa can become a formidable player in the global economy.
The writer is a journalist and communication consultant.