Outlook and Objectives
If the rise of China is the greatest economic story of the past 20 years, its growing
presence in Africa (perhaps a foundational prerequisite for the former trend) is not
too far behind. Between 2000 and 2017, the People’s Republic of China’s role in
African economic activity evolved from negligible to elemental; essentially, very
few African governments and businesses can plan and envisage initiatives and
policies without factoring in Beijing.  By now the figures have become all too
familiar; China, since 2009, has become Africa’s number-one trading and
investment partner. Beginning in the year 2000, Africa-China trade has seen
consistent 20% growth per year. FDI has registered even greater growth, at 40%
per year. At the same time, 30% of all new loans to Africa in the past five years
have come from China.
China is the largest and fastest-growing source of aid and the largest source of
construction financing in Africa. Uniquely, China is among the top 4 partners for
Africa in 4 important areas: trade, investment stock, infrastructure financing, and
aid. By sector, 30% of African manufacturing, 25% of African services, while
20% of African construction/real estate is under Chinese management. In
manufacturing, 12% of African industrial production – at US$500-billion per year

– is already handled by Chinese firms, while Chinese firms claim nearly 50% of
Africa’s internationally contracted construction market.
In recent years, both entities have undertaken grand initiatives. For its part, the
African continent has pronounced its development plan in the form of the Agenda
2063, along with a myriad other regional and national plans of action, including
Djibouti’s Vision 2020, South Africa’s NDP. Under the auspices of the AU, the
African Continental Free Trade Area has been introduced and is in the process of
ratification across the capitals. Yet the success of this initiative relies not only on
actions on the continent, but also on how the continent interacts with the rest of
the world.
This program will also delve into issues that are at the heart of this relationship,
such as degrees of beneficiation, and the role of Chinese aid in Africa. Tested will
be the extent to which the relationships conform or diverge away from the
traditional models of economic relations between Africa and its powerful
interlocutors.