China and Africa work together to build a new future of industrialization in Africa - Interview with Cheng Zhigang, Secretary General of the China Africa Industrial Forum
In 2013, President Xi Jinping proposed a major initiative to jointly build the Silk Road Economic Belt and the 21st Century Maritime Silk Road. Africa is a historical and natural extension of the joint construction of the "the Belt and Road" and an important participant. In the past 11 years, under the guidance of the joint construction of the "the Belt and Road", a number of major projects in Africa, such as transportation, energy and new infrastructure, have been implemented. The bilateral trade volume between China and Africa has accounted for more than 20% of Africa's overall foreign trade volume, and China's investment stock in Africa has exceeded 40 billion dollars. In 2023, the trade volume between China and Africa reached 282.1 billion US dollars, and China has been Africa's largest trading partner for 15 consecutive years.
As a collective dialogue and cooperation mechanism jointly established by China and African friendly countries in 2000, the China Africa Industrial Cooperation and Development Forum (CAIF) has made its own unique contribution to promoting and deepening China Africa strategic partnership, establishing an honest, safe and long-term China Africa industrial and trade cooperation relationship, and promoting China Africa cooperation in jointly building the "the Belt and Road". On the occasion of the 2024 FOCAC Summit, the reporter gave an exclusive interview to Cheng Zhigang, Secretary General of the Forum on China Africa Industry, and conducted in-depth interviews on how to further promote China Africa cooperation in jointly building the "the Belt and Road".
In June of this year, Cheng Zhigang, Secretary General of the China Africa Industrial Forum (the man shaking hands in the middle), visited Zimbabwe and held talks with officials such as the Deputy Minister of Infrastructure and Housing. China Africa Industrial Forum/Image provided
In the past 16 years, the Forum on China Africa Industrial Cooperation and Development has promoted more than 1000 Chinese enterprises to invest and develop in Africa, making their own contributions to the industrialization of Africa. 2024 marks the 16th anniversary of the Forum on China Africa Industrial Cooperation and Development, and when it comes to the arduous journey of these 16 years, Cheng Zhigang cannot help but sigh: "To do work related to Africa, one must have emotions
Cheng Zhigang told reporters that industrialization is the only way for Africa to achieve modernization, and China Africa industrial cooperation is of great significance in solving the problem of imbalanced economic development in Africa. Outdated infrastructure and poor connectivity have constrained Africa's industrialization process. However, China has played an active role in promoting infrastructure construction in Africa
Recently, the National Development and Reform Commission and relevant departments released the 2024 edition of the Blue Book of the Report on the Development of China African Countries Jointly Building the the Belt and Road, which pointed out that at present, Chinese enterprises have participated in the construction and transformation of more than 10000 kilometers of railways, nearly 100000 kilometers of roads, nearly 1000 bridges, nearly 100 ports, 66000 kilometers of power transmission and transformation lines, and 150000 kilometers of backbone communication networks in African countries.
On December 4, 2015, Chinese President Xi Jinping proposed in his speech at the opening ceremony of the Johannesburg Summit of the Forum on China Africa Cooperation the "Ten Major Cooperation Plans" to be implemented with Africa in the next three years, including the "China Africa Industrialization Cooperation Plan", which covers various core links of cooperation between the two sides in this field, including the creation of a soft environment and the construction of hardware facilities.
In August 2023, China released the "Initiative to Support Industrialization in Africa". China is willing to support the development of manufacturing, digital industries, and renewable energy in Africa, strengthen knowledge sharing and technology transfer with Africa, optimize trade facilitation measures with Africa, expand the import of high-quality industrial products from Africa, and call for accelerating the reform of the global financial system and providing financial support for industrialization in Africa. China said that it would combine the implementation of the "nine projects" of the Forum on China Africa Cooperation, the joint construction of the "the Belt and Road" and the global development initiative, and tilt the relevant cooperation resources to support Africa's industrialization projects.
Cheng Zhigang believes that Africa is the most promising market and important region for capacity cooperation in the future. Currently, China Africa cooperation is in a period of great development opportunities, and with the gradual implementation of China's plan to help Africa achieve industrialization, it will help to "regenerate" the industrialization process in Africa and make up for the limited natural conditions and insufficient resource endowments of African countries. Some investment cooperation projects in the industrial sector are increasing tax revenue, boosting employment, improving industrial structure, and extending the value-added chain of "Made in Africa" for these countries. The "the Belt and Road" construction is deeply linked to Africa, which will provide important opportunities for Africa to achieve common development.
Africa has abundant resources such as minerals, water resources, forestry, and agriculture, and possesses both cultural and natural advantages. However, due to outdated infrastructure, many energy and mineral resources have not been developed, and many lands have not been effectively used, resulting in most areas still being impoverished. However, with the continuous deepening of China Africa cooperation, this situation is undergoing earth shaking changes.
Cheng Zhigang told reporters that the establishment of the African Continental Free Trade Zone, rapid development of small and medium-sized enterprises, and industrial transformation and upgrading have brought more vitality to the African economy. The African Free Trade Zone will also become the regional free trade zone with the largest number of member countries since the establishment of the World Trade Organization, covering nearly 1.3 billion people and a gross domestic product of $2.5 trillion. It is expected to double again by 2050 and become a new growth pole for the world economy.
The best time to invest in Africa has already been formed, "Cheng Zhigang analyzed." As China's economy develops to a certain level, spillover effects are gradually emerging. The trend of gradually decreasing labor force also determines that some labor-intensive industries are no longer suitable for domestic development. And Africa itself has abundant labor force and requires capital investment, which provides a good place for Chinese capital and industrial transfer. Through such investments and transfers, Chinese and African companies can deepen their cooperation and open up a common source of economic growth.
More importantly, African countries themselves also have the willingness to develop industrialization and promote economic development, so many countries have formulated plans to promote industrial development. In recent years, African countries have carried out economic reforms, improved the business environment, and attracted foreign investment. Many governments have introduced a series of preferential policies to encourage investment, including tax reductions, land leasing incentives, etc., providing investors with a good investment environment. In short, investing in Africa has many advantages, such as abundant resources, demographic dividends, improved policy environment, low entrepreneurial costs, cultural diversity, and strengthened international cooperation, all of which provide investors with rare entrepreneurial opportunities and unlimited possibilities.
The China Africa Industrial Forum has done a lot of work in supporting enterprises, especially small and medium-sized enterprises, to enter Africa. We will recommend some African countries with relatively stable political situation, good business environment, and corresponding resources to visit according to the needs of enterprises. If enterprises decide to invest locally, we will also provide assistance in registration, site selection and other services. "Cheng Zhigang introduced that under the mechanism of the China Africa Industrial Forum, they have organized domestic enterprises to visit Africa multiple times, involving construction, medicine, industrial manufacturing, new energy and other fields. Moreover, there are corresponding enterprises planning to invest in Mozambique, Egypt, Rwanda, Zimbabwe and other countries.
Not only that, the first comprehensive modern industrial park in Africa (Zhongzan Hongtu Industrial Park) jointly built by the China Africa Industrial Forum and Zhonghai Hongtu Group will start planning and design in May 2023, and construction will commence in January 2024. The park covers an area of 7.5 square kilometers and is located in the Mombasa administrative district of Lusaka, the capital of Zambia.
Cheng Zhigang told reporters that Lusaka is the headquarters and secretariat of the Common Market for Eastern and Southern Africa (referred to as "Komesa"), which has 21 member countries. Thanks to its advantageous geographical location, Zhongzan Hongtu Industrial Park is committed to building a "three centers and one base" - Southeast Africa Commodity Trading Center, Southeast Africa Logistics Center, Southeast Africa Conference and Exhibition Center, and Southeast Africa Industrial Manufacturing base.
In the future, products, transactions, and logistics from Southeast Africa will converge here. The industrial park will provide one-stop services for enterprises investing and engaging in trade here, solving all their worries. We will even set up supporting funds to provide incubation and other support for enterprises, "said Cheng Zhigang.
At present, there is another very important factor restricting the industrialization process in Africa, which is the insufficient talent reserve. "Cheng Zhigang analyzed that talent is one of the necessary conditions for Africa's industrialization, especially a certain number of skilled talents.
China has always been committed to cultivating and importing talents for Africa. China and Africa have established a long-term cooperation mechanism for vocational skills education, implemented the "Future Africa China Africa Vocational Education Cooperation Plan", and established the China Africa Vocational Education Federation. China shares high-quality vocational education in China through the construction of vocational and technical training schools and the establishment of "Luban Workshop" with local universities, in order to cultivate applied skilled talents that serve the economic and social development of Africa. According to the data in the 2024 edition of the Blue Book of the Report on the Development of China African Countries Jointly Building the the Belt and Road, as of June 2024, China has built 17 "Luban Workshops" in Africa.
China also strongly supports the cultivation of urgently needed talents in Africa. Through the establishment of several scholarship projects, the establishment of South South Cooperation and Development Institute, the implementation of the "Touyan Plan", the organization of Africa aid training courses, and the organization of several "the Belt and Road" tax colleges for training, China has cultivated government management talents and experts in related fields for African countries. In addition to supporting outstanding African youth to study in China, we have also established the "African Student Employment Express" to support African students to find employment in Chinese enterprises after returning to their home countries.
The China Africa Industrial Forum plans to establish an Eastern Vocational and Technical Talent Training Center in Rwanda, "said Cheng Zhigang. Rwanda has a dense population, excellent natural conditions and business environment, and is known as the" Little Singapore of Africa ". The establishment of this center can not only help Rwanda solve technical and employment problems, but also export the trained talents to neighboring countries.
Moreover, due to years of dealing with African countries, Cheng Zhigang is extremely familiar with the situation in African countries. He believes that most African countries have stable political situations and are suitable for young people to start businesses and find employment. "Today, more and more Chinese people are beginning to understand Africa and enter Africa. Take Zimbabwe as an example. In just over a year from 2023 to now, more than 10000 Chinese have come to invest and start business in the local area. Roughly estimated, it has increased by more than 10%. The aforementioned Sino Zambia Hongtu Industrial Park will also solve the employment problem of 20000 people after completion."
Over the past 11 years, China Africa cooperation in jointly building the "the Belt and Road" has achieved the transformation from concept to action, from vision to reality, and has formed a good situation of smooth flow of goods, political harmony and people's harmony, mutual benefit and win-win, and common prosperity and development. It has injected new impetus and vitality into the economic and social development of African countries, and provided important support for accelerating the construction of a community of shared future between China and Africa.
Regarding the future outlook, Cheng Zhigang said, "In the future, with the rapid increase of the African population, a huge consumer market will be formed. Whether it is infrastructure construction, mass consumption, or talent education and training, there are huge development prospects. In the next 3-5 years, more enterprises and young people in China will go to Africa to start businesses, employment, and business, and more local governments in China will establish friendly relations with African cities. We need to be prepared and embrace opportunities
