China is dedicated to strengthening its economic and trade relationships with Africa at the FOCAC 2024 summit. Multi-million dollar agreements were signed, and the annual trade volume between China and Africa is projectedto reach 300 billion USD by 2035.
Major Chinese groups to invest in Africa
The recent Forum on China-Africa Cooperation (FOCAC) summit has opened up new opportunities for Tanzania and the broader African industry. Held in Beijing, the summit brought together 53 African heads of state or their representatives under the leadership of Chinese President Xi Jinping.
During the summit, Xi pledged over 50 billion USD in aid and loans to support Africa’s modernization efforts. Key areas for funding include infrastructure and agricultural development over the next three years. This commitment complements China’s earlier zero-tariff policy, aimed at boosting trade between Africa and China.
Several leading Chinese companies, including the China Academy of Space Corporation (CASC), China Electronics Corporation, Transsion Group, Weihua Group, China Railway Construction Corporation (CRCC), and Acme Consultant Engineers PTE Limited, signed agreements with various African countries.
Strengthening Tanzania-China relations
Tanzanian President Samia Suluhu Hassan took the opportunity to encourage Chinese investment in Tanzania. She oversaw the signing of a memorandum of understanding for the renovation of the TAZARA railway link. TAZARA is a vital transport system connecting mineral-rich, landlocked Zambia to the port of Dar es Salaam, facilitating international shipping of its mineral cargoes.
Professor Wetengere supported China’s advice to Tanzania, emphasizing the need for value-added exports. « Value-added exports will allow local producers to earn higher profits and create more jobs compared to raw material trade, which is less profitable », he said.
International relations analyst Medard Wilfred also advocated for collaboration between universities in both countries to « create a database of Tanzanian labor and its specific skills, helping Chinese technology investors find local employees ».
According to the UN COMTRADE database, China’s exports to Tanzania amounted to 8.09 billion USD in 2023, while Tanzania’s exports to China were only 427.89 million USD.
China wishes to strengthen its ties with Africa within the ASCF
As suggested by its theme, « Uniting Our Strengths to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future », the FOCAC 2024 summit was presented as a win-win advancement for both Africa and China. At this summit, which is held every three years, the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) called for « broad prospects for China’s modernization through even deeper reforms that will benefit all parties ».
In a press briefing, Chinese officials acknowledged that Africa’s development is progressing at an accelerated pace as envisioned by its Agenda 2063, and working together will serve the interests of both parties. The Chinese Ministry of Foreign Affairs describes the summit as the largest diplomatic event the country has hosted in recent years.
« China will never waver in its determination to pursue greater solidarity and cooperation with Africa », the Ministry stated in its press release.
Beijing sets its sights on Africa and the rest of the world
The summit also highlighted the Chinese Belt and Road initiative, which aims to connect China with multiple continents, with Africa as a priority. This initiative comes as Beijing faces increasing competition from the United States and Europe, which have also been actively courting African leaders.
« Although the United States, Japan, India, and Russia also hold summits to engage African leaders, China remains an unparalleled economic partner for the continent », notes Jana de Kluiver, a researcher at the Institute for Security Studies in South Africa. Africa’s strong voting power in the UN General Assembly makes it a strategic partner for China.
China is likely to push for more exports of its Made in China products, particularly in renewable energy technologies which it has heavily invested in. The summit saw participation from at least 53 heads of state and ministerial delegates from African countries, as well as UN Secretary-General Antonio Guterres and several international and regional organizations.
China is already Africa’s largest trading partner, with about a quarter of the continent’s exports going to China annually,and approximately 16 % of Africa’s imports coming from China. The annual trade volume between China and Africa could reach 300 billion USD by 2035.
