African Union leaders have concluded this year’s Summit with a rallying call to expedite the implementation of the African Continental Free Trade Area (AfCFTA). Themed, “Year of AfCFTA: Acceleration of the African Continental Free Trade Area Implementation,” the 36th AU Summit sought to generate requisite political commitments to turn Africa into the second largest trade area, after the WTO.
The ambitious plan to economically integrate Africa has made substantial progress since it was mooted. Fifty-four (54) member states have signed the agreement while 44 AU countries have ratified the instruments establishing AfCFTA. One practical outcome of the efforts was the development of the AfCFTA guided trade initiative which has seen Kenya export Exide batteries to Ghana while Rwanda has also exported coffee products to Ghana.
To effectively and sustainably implement AfCFTA, there remains serious need to boost infrastructure connectivity, industrial capacity building, educational foundations; health systems; and political stability. While the continental leadership have shown clear political will to must endogenous transformation processes, international partnership can inject impetus into the actualization of AfCFTA.
One of Africa’s enduring international partners in the economic development domain is China. During the AU Summit, Chinese leader Xi Jinping sent congratulatory message; reaffirming Beijing’s readiness to work with the Africa in generate enduring development. Already, China is Africa’s largest trading partner and third largest foreign direct investor. Chinese firms have been key in setting up the base to realize many of the AfCFTA aspirations; contributing over 20% to Africa’s economic development over the last decade.
Africa has long struggled with inadequate infrastructure, which has impeded its growth and development. China’s development experience, particularly in infrastructure development, could help Africa become more integrated, prosperous, and peaceful. As of 2021, China had invested over $150 billion in infrastructure projects in Africa, making it the continent’s largest infrastructure partner.
China has developed a robust system of project planning and execution that emphasizes efficiency, quality, and sustainability. African countries could learn from China’s project management experience, particularly in the areas of budgeting, procurement, construction, and evaluation. Chinese companies have also developed a strong capacity in engineering, procurement, and construction (EPC) of infrastructure projects. These skills could be transferred to African companies and institutions to help build their capacity in infrastructure development.
African countries face significant funding gaps in infrastructure development, with estimates suggesting that the continent needs up to $170 billion annually to meet its infrastructure needs. China’s approach to infrastructure financing, which emphasizes concessional loans, grants, and infrastructure investment funds, could help African countries mobilize the required resources for infrastructure development. China could also share its experience in public-private partnerships (PPPs) in infrastructure financing, which have been used extensively in China to leverage private sector resources for infrastructure development.
China’s development experience in regional integration could help Africa overcome its fragmentation and achieve greater economic integration. African countries could learn from China’s experience in regional integration and apply it to the AfCFTA. By investing in cross-border infrastructure projects, African countries could improve their connectivity and reduce their trade costs, thus promoting intra-African trade and economic integration.
China has become a global leader in e-commerce, with companies such as Alibaba and JD.com dominating the Chinese online retail market. African countries could learn from China’s experience in developing e-commerce platforms, logistics, and payment systems to promote cross-border trade and enable small and medium-sized enterprises (SMEs) to participate in the AfCFTA. Chinese e-commerce platforms could also help African SMEs to reach a wider customer base and reduce their transaction costs.
China has successfully developed industrial value chains in various sectors, including electronics, automotive, and textiles. African countries could learn from China’s experience in developing value chains to promote intra-African trade and value addition. China’s experience in developing special economic zones (SEZs) could also be useful for African countries in attracting foreign investment, promoting industrialization, and developing export-oriented industries.
Finally, people mobility is at the heart of AfCFTA implementation. China has also been successful in promoting people mobility, with millions of Chinese citizens traveling abroad for work, study, and tourism. African countries could learn from China’s experience in promoting people mobility to facilitate cross-border trade, investment, and cultural exchange. China’s experience in developing visa policies, immigration laws, and border management could be useful for African countries in promoting people mobility while maintaining security and public health.
Dr. Adhere is a scholar of international relations with a focus on China-Africa cooperation. Twitter: @Cavinceworld.
