A win-win synergy

The Focac gathering will bring together leaders from Africa and China to discuss co-operation in advancing Africa’s growth, says Maite Nkoana-Mashabane.

#Focac: South Africa will host the Johannesburg Summit of the Forum on China-Africa Cooperation from 4-5 December 2015.

This historic conference will bring together the leadership of Africa and China to jointly discuss our shared cooperation in advancing Africa’s growth, development and prosperity under the theme: “Africa-China Progressing Together: Win-Win Cooperation for Common Development.”

One of the issues to be discussed during the Focac Summit is infrastructure development. The relationship between China and Africa has grown exponentially over the last decade. China has become Africa’s largest trading partner, and Africa is now one of China’s major import sources.

Africa is rapidly changing. The prevailing positive trade, economic and development opportunities linked to the emerging One Belt One Road (OBOR) Strategy proposed by China - combined with Africa’s blueprint outlined in Agenda 2063 - can serve to trigger a new and enhanced framework for China - Africa Cooperation.

Although not directly, or formally linked at this stage, the strategic intents of the two initiatives complement each other and this congruency, if properly articulated, can prove to be of great benefit for both Africa and China.

The idea of the One Belt One Road (OBOR) was announced by President Xi Jinping of the People’s Republic of China, during his visits to Central Asia and Southeast Asia in 2013. He seized the attention of the world when he announced the development of the Silk Road Economic Belt (overland) and the 21st-Century Maritime Silk Road.

President Xi Jinping’s plan to connect Asia and Europe by borrowing the concept of the historical Silk Road, has developed into the concept of the One Belt One Road initiative.

The OBOR is essentially made up of the Silk Road Economic Belt which is the ancient overland route connecting China, via Central and Western Asia to Europe.

This, therefore, opens up the discussion on how Africa as a continent can be fully engaged bearing in mind the 21st century context.

The synergies between Africa’s developmental priorities and the One Belt One Road (OBOR) initiative are being disseminated into actionable projects and programmes. The major focus of the OBOR initiative is focussed on connectivity that also goes beyond the physical infrastructure to include the sharing of philosophy, culture, people-to-people interaction, as well as spiritual values, which are all inherent within the framework of the OBOR initiative.

The significance of the initiative becomes increasingly clear based on the Asia Development Bank report that Asia will require $8 trillion in infrastructure financing over the next decade. When this is further linked to the current rates of development, it is envisaged that Africa requires an additional investment of USD 93 billion per year until 2025.

The African Union’s Programme for Infrastructure Development for Africa (PIDA), identifies priority regional infrastructure projects to be built by 2040 designed to sync with the Regional Economic Communities (RECs) own infrastructure master plans.

For example, SADC developed its Regional Infrastructure Development Master Plan Vision 2027.

These plans require major investments into road corridor upgrades, airports and rail development to connect key cities to ports and airports, complimented by urban transit systems and improved ICT connectivity which are also needed for Africa’s growing urbanisation.

We have also begun to consolidate infrastructure projects for high impact and results, namely the Infrastructure Strategic Action Plan (ISAP), the NEPAD Spatial Development Programme (SPD) and information and communication technologies (ICTs).

With a renewed emphasis on improved infrastructure, enhanced trade facilitation, reduced costs, greater efficiency and investment, there is significant scope for greater intra-African manufacturing trade as well.

Based on this reality, Africa has been driving, among others, the re-industrialisation of the continental economy, improved connectivity and infrastructure, diversification of energy sources, technology transfer and skills development underpinned by regional integration. Furthermore, the African Union has embarked on an ambitious program to tap the ocean and seas as a new horizon of development.

The synergy between the intentions of the OBOR and Africa’s developmental agenda thus presents a compelling case for Africa to have a coordinated approach towards the OBOR strategy.

China has consistently doubled its financing commitment to Africa during the past three Focac meetings- from $5 billion in 2006 to $10 billion in 2009 and $20 billion in 2012.

The visit of Premier LI Keqiang to Africa during 2014 served to further expand China - Africa Cooperation especially in the infrastructure domain.

This focus on infrastructure development was further consolidated by the signing of an MoU between China and the African Union on 27 January 2015. The ambitious agreement plans to connect all 54 African countries through transportation infrastructure projects, including modern highways, airports, and high speed railways.

These developments also align with President Xi Jinping’s articulation of a new “Maritime Silk Road between China, the Indian Ocean Rim and the African eastern seaboard countries.

According to reported Chinese statistics the OBOR will benefit 4.4 billion people, 63% of the global population, a collective GDP of $2.1 trillion and 29% of the world’s productive output.

We hope that these plans will materialise and expand during the Focac Summit and that African companies have the opportunity to partner with Chinese companies on the delivery of these projects.

The Focac Summit would further define the One Belt and One Road initiative by finding ways to include and incorporate Africa’s developmental agenda into the broader initiative.

* Ms Maite Nkoana-Mashabane is South Africa’s Minister of International Relations and Co-operation.

* The views expressed here do not necessarily reflect those of Independent Media.

THE STAR