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China Takes Part in Accelerating the AfCFTA by Strengthening Africa's Development Capacity

The 36th summit of the African Union (AU) was held from 18 to 19 February at its headquarters in Addis Ababa. Participants called for the accelerated implementation of the African Continental Free Trade Area (AfCFTA) and the promotion of continental integration.

Two years after the AfCFTA came into force, Africa has made considerable progress in reducing intra-continental trade barriers and promoting economic integration. However, inadequate infrastructure connectivity between African countries continues to hamper continental trade and the movement of people.

Over the years, China has steadily deepened its infrastructure cooperation with Africa to enhance connectivity between African countries and help them strengthen their development capacity.

"We see connectivity, we see the transformation of airports and ports," said Charles Onunaiju, Director of the Nigeria-based Centre for Chinese Studies. He highlighted the clear direction of Chinese support for Africa in this area.

The Mombasa-Nairobi Standard Gauge Railway (SGR), built by a Chinese company, is now in its sixth year of operation. According to Philip Mainga, Managing Director of Kenya Railways Corporation, the SGR has enhanced Kenya's trade with its neighbours and provided an economic lifeline to member states of the East African Community.

Last December, two Chinese companies signed a contract with Tanzania to build the second phase of the 506-kilometre SGR between Tabora and Kigoma in the west of the country. This project aims to complete the rail link between the port of Dar es Salaam and neighbouring countries such as Burundi and the Democratic Republic of Congo (DRC). Once completed, this rail network is expected to accelerate connectivity in East Africa, promoting the economic integration of the riparian countries.

With Africa's abundant natural resources and labour force, the AfCFTA holds potential to boost the continent's value-added manufacturing sector. China is also working with African governments to build industrial parks, attracting businesses and investments to foster local industrialisation.

Sandokan Debebe, Managing Director of the Ethiopian Industrial Parks Development Corporation (IPDC), stated that Chinese companies are key players in Ethiopia’s ambition to build state-of-the-art industrial parks. He added that Ethiopian government representatives have visited China to learn from its experience in developing industrial parks and special economic zones.

Currently, the IPDC manages thirteen industrial parks, most of which were built by Chinese manufacturers using Chinese technologies and standards. One example, the Chinese-built Dire Dawa Industrial Park, generated approximately $14.5 million in export earnings during the 2021/22 financial year, which ended on 7 July 2022.

In Nigeria, the Lekki Free Zone, located south-east of Lagos, is a product of Sino-Nigerian cooperation. The recently commissioned deepwater port of Lekki, one of the largest in West Africa, complements the Lekki Free Zone. Together, they form a cohesive development hub, integrating the port, the free zone, and the surrounding city.

According to China’s Institute for South-South Cooperation and Development, African countries had 237 industrial parks of various types by 2021, nearly 60 of which were built and operated by Chinese companies.

Credit: alome