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China and Africa discuss strategies to unlock private participation

By Lucie Morangi in Addis Ababa, Ethiopia | chinadaily.com.cn | Updated: 2019-05-31 15:50
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Liu Yuxi, head of the Chinese Mission to the African Union, says Africa is an indispensable part of the international cooperation under the BRI. [Photo by Liu Hongjie/for China Daily]

A little more than a month after the second Belt and Road Forum for International Cooperation held in Beijing, China and Africa have hit the road running and are looking at how to enhance effective cooperation between the public and the private sectors in the implementation of projects under the Belt and Road Initiative and Vision 2063.

The move aims at harnessing private capital to fast track delivery of projects while also easing government investment when undertaking mega infrastructure projects in the continent.

More than 50 delegates converged in the capital city of Addis Ababa, Ethiopia, on Thursday to identify lucrative opportunities created by the two approaches and how they converge to meet the needs of 2.5 billion Chinese and African people.

"This dialogue focuses on trade, infrastructure, energy and cooperation between Chinese and African businesses. It is to implement the achievements adopted at the second BRI Beijing Forum and seek synergies between the BRI, Agenda 2063 and the development strategies of African countries," said Liu Yuxi, the head of Chinese Mission to the African Union based in Ethiopia

Present were Hailemariam Desalegn, the former prime minister of Ethiopia, Raila Odinga, high representative of the African Union Commission chairperson for infrastructure development, as well as diplomats, policy makers and scholars among others.

Liu said the largest beneficiaries of the convergence are entrepreneurs. "I hope Chinese and African businesses will take the policy dividends and investment opportunities unleashed by the BRI and devote themselves to Africa's economic and social development and uplift China-Africa cooperation to a higher level."

He reiterated China's commitment to multilateralism saying free trade and regional economic integration are in line with the prevailing historical trend. "Trade protectionism and economic hegemony, which advocate for beggar-thy-neighbor policies that benefit oneself at the expense of others will send the human race back to isolated islands which will eventually dry up the ocean of the world economy."

Raila Odinga, high representative of the AUC chairperson for Infrastructure Development in Africa, says BRI is an idea whose time has come. [Photo by Lui Hongjie/for China Daily]

Liu said China will continue cooperating with Africa through the BRI and help the continent integrate into the global value and industrial chain. "Africa is an indispensable part of the international cooperation under the BRI," he said.

Odinga said the yawning infrastructure deficit hampers Africa's economic development. "At the BRI forum in April, we all agreed that Africa's progress and prosperity, including trade, is deeply tied to our infrastructure development and connectivity. BRI is an idea whose time has come. The initiative strongly supports globalization especially in driving linkages between farms and markets."

Odinga, the former Kenyan prime minister, emphasized that Africa urgently needed energy to drive economic take off. "To fire our economies, Africa needs to interconnect many energy sources over large geographical areas through a deliberate policy of energy interconnectedness."

He said focus should be on the Inga Dams, which are expected to produce 110 megawatt capacity. "It is even more urgent now that Africa is set to begin implementing the Continental Free Trade Area, signed last year." The dams are located at the Democratic Republic of Congo.

He noted that trade and investment growth is intricately tied on access to connectivity and called on African governments to single mindedly approach the challenge to avoid being left behind.

Desalegn said that for Africa to harness the existing political goodwill, cooperation with China needed to be strengthened and agreements moved from bilateral to multilateral mechanisms.

The International Forum in Beijing called for stronger collaboration and the need to move from commitments to implementation. Over 100 bilateral and multilateral cooperation documents were attained, 283 practical results and cooperation projects valued at more than $64 billion.

The dialogue platform is expected to be held annually where monitoring and evaluation of progress between China and Africa will be reviewed.

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