Expectations are high on the forthcoming China-Africa Cooperation scheduled in Beijing on 3-4 September to be inaugurated by the Chinese President Xi Jinping and attended by several heads of states from Africa . African nations are busy finalising a “wish list” to be presented to the Chinese side particularly in the infrastructure sector to accelerate Africa’s economic transition. The Mombasa-Nairobi, Addis Ababa, Djibouti railway lines are some of the flagship projects in Africa. Chinese partnership is expected to support these projects and many others in the pipeline.
Yet, before judging the mood, one has to give a close look at the current global context in which the Forum is taking place. The recent trade war between US and China has considerably affected China. US has come down heavily on imports from China with high tariff restrictions. On transfer of technology also it has taken an equally stiff position on the ground that there has been intellectual property violations in China relating to US technologies.Results are there to see. Chinese currency Yuan has lost its sheen against dollar and is one of the worst performing currencies among the emerging economies. The Chinese stock market is taking heavy hits. These onslaughts on the chinese economy will considerably shape Chinese investment policy abroad if not in the short run, definitely in the long run.
Every adverse condition presents itself a silver lining. It is time for Africa to explore other partnerships in other developing countries in BRICS, Japan and South Korea. They have presence in Africa but not as significant as the China. The approach to woe these countries has to be different since decision making in China is relatively faster because of its distinct nature of its political apparatus.
Importantly, African growth saga should be scripted by Africans .External agencies including multilateral organizations have only a limited role. The reluctance of IMF and World Bank in clearing the bailout packages of countries like Angola, Zambia etc should be a wake up call for most of the states which have a higher GDP-debt ratio, much beyond the safe limit prescribed by the lending agencies.
Africa’s budding entrepreneurial and innovative spirit also should be nurtured to take over a bigger role. Many young African innovators have demonstrated a sharp and sensitive mind developing solutions to suit local needs . At this juncture, these promising young and bright entrepreneurs in Africa need strong backing. A South African black entrepreneur has promised to incubate more than 300 entrepreneurs in the continent sounds more like apocalyptical but possible. From Kenya to Nigeria and South Africa to Gabon, the focus is on small and medium enterprises. Proliferation of such business entities can rewrite the development story of Africa.
