China-Africa Joint Development: Beyond Slogans

By Moshi Israel

To understand the drive behind the concept of China-Africa joint development, one needs to know exactly what China wants from Africa and what Africa wants from its relationship with China. The cooperation between Africa and China aims to be a symbiotic relationship where benefits are shared fairly and at times equally.

The key objectives for forming alliances and partnerships among nation-states are for security and trade. Through joint development partnership, China and Africa can ensure their respective economic security because the concepts of trade and security within the framework of international partnerships and relationships often intersect. One way they intersect is through the correlation between trade and economic security. Good trade policies and practices can lead to economic security which is at a larger scale is a form of national security. A rich and successful country is secure in many ways. Joint economic partnerships ensure and insure the national security of all involved.

During the China-Africa Leader’s Dialogue in August of this year, in Johannesburg South Africa, President Xi Jinping highlighted the fact that China was steadily marching towards achieving its second centenary goal of becoming a ‘great modern socialist country in all respects that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful. He reiterated that China was pursuing its rejuvenation on all fronts through a Chinese path to modernization. This is China’s vision for itself and by analyzing this vision, we can deduce exactly what China wants with Africa. In short, China needs a stable, developed, independent, and reliable Africa to conduct business and foster civilizational exchanges for a shared future of prosperity. China can help Africa achieve its development ambitions and Africa can help China realize its ambitions for its people and vision for a world of harmonious coexistence.

China intends to expand the global market and make it diverse and less dependent on the core countries of the Western bloc. China, itself a developing country has decided to look south for developing markets, where it can trade its products and in turn assist the development process of countries in the global south. Through BRICs+, BRI, FOCAC and other initiatives, China has consistently courted Africa and made its intentions clear. Symbolic of the deep ties between China and Africa is the elevation of relations to a Comprehensive Strategic Cooperative Partnership in 2018 during the Beijing FOCAC summit.

For this relationship to work smoothly, Africa needs to know what it wants from China and fortunately, this is increasingly clear as stipulated through Agenda 2063. It is an agenda that seeks to transform the continent into a global powerhouse of the future. Through Agenda 2063, Africa aims to deliver on its objectives for sustainable and inclusive development. The agenda is driven by the Pan-African spirit rooted in the desire for unity, self-determination, freedom, progress, and collective prosperity. Agenda 2063 is an affirmation of pan-Africanism and the African Renaissance.  This pan-African vision was assented to by African leaders through the 50th Anniversary Solemn Declaration during the golden jubilee celebrations of the formation of the OAU/AU in May 2013. The vision imagines an integrated, prosperous, and peaceful Africa, driven by its citizens, representing a dynamic force in the international arena.

Under the current global political climate, Africa and China need each other. President Xi recognizes this with precise clarity and therefore has spearheaded efforts and a renewed drive by China to rejuvenate, reinvigorate, and redefine its relationship with Africa. The result should be a limitless friendship that is much more integrated and equal where both party’s interests are protected through joint efforts.

Proposed areas of collaboration include; working to safeguard a peaceful and secure global environment, building an open and inclusive world economy, and promoting an equitable and just international order. Also, China through the assurances of its president seeks to cooperate with Africa to enhance the synergy of both party’s development strategies, support Africa’s voice in the international arena, support Africa’s industrialization and Agricultural modernization, and implement a plan on China-Africa talent development.

The joint development of Africa and China will mostly rely on the initiatives proposed by the latter. These initiatives include the GDI, GSI and GCI, (Global Development Initiative, Global Security initiative, and Global Civilization Initiative) all respectively addressing the key problem areas of development deficit, security challenges and a gap in mutual learning between civilizations.

By analysing these initiatives, we can decipher that China’s partnership with Africa is not solely based on economic gains. It goes further and beyond the limitations of realpolitik. China is not focused only on practical considerations when it comes to partnership with Africa, the rationale of cooperation is also rooted in moral and ideological concepts. China and Africa consider themselves family with a bond forged through history. A past of shared suffering under colonialism, imperialism and racism binds Africa and China. The latter’s lessons of wisdom through the ‘miracle’ of unprecedented development can be an inspiration to Africa’s own renaissance.

The African Union has embraced the idea of an integrated continent through the African Continental Free Trade Area (AFCFTA). A more integrated Africa is a powerful one and Beijing supports this process. It is a popular view both in Africa and China that Africa’s own path to modernisation should be an African idea with African characteristics. By pushing its own modernisation path, China indirectly shows Africa the way and it is up to the giant continent to map its own path by learning what is practical from China’s experience.

For so long, the African continent has been underestimated and under looked. Africa has experienced its own centuries of humiliation and has forever struggled to raise its head above water. However, the continent, with the help of China has changed the narrative and is back floating and ready to swim. Africa is projected to have a population of over 2.7 billion people by 2060, well above the combined populations of both India and China. In the same year the continent is projected to have a combined output of $16 trillion and a vibrant middle-class market. China on the other hand is the second largest economy in the world and has a lot of potential to be the world’s leading economy with time.

It is therefore, this potential that makes China-Africa joint development an interesting prospect. Together, a better multilateral world is a reality and a shared future for all humanity is guaranteed.

The Writer is a Senior Research Fellow with Development Watch Center.

Authorized Economic Operator (AEO) Arrangement Between China and Uganda Will Improve Trade and Help URA in Revenue Collections

By Alan Collins Mpewo

 Technology has been prioritized by many countries allover the world because of the advantages and potential hacks that can be exploited. Often times the exploitation has been used to wage war, spying and propaganda. Other nations to the contrary have taken a distant trajectory from the usual, and used technology to outlive the blocks that avail themselves. Much as technology keeps improving and it still gets so much threat from people’s perception, it should be underscored that technology is the future.

Recently, China together with the Uganda Revenue Authority, a public body in charge of Revenue collection in Uganda, had a commemoration of a memorandum of understanding, that the two parties entered into in 2021. The spirit of the memorandum of understanding was the Authorized Economic Operator (AEO) Mutual recognition arrangement and this was signed at the 5th AEO Global Conference that was held in Dubai.

Uganda would be able to benefit from the arrangement in terms of streamlining trade finance and revenue collection which is aligned to China’s Revenue collection practices and enhancement of trade framework. If critically analyzed, the main informing aspect for Uganda to enter this mutual arrangement was on a basis of China’s stand on the global floor of trade. The arrangement was also meant to further the corporation between Uganda and China on the basis of the Forum on China-Africa Cooperation (FOCAC). This way, Preferential treatment will be accorded to the goods coming from China to Uganda and vice versa. Therefore, this will be a wake-up call for companies that engaged in supply of goods, works, and services to and from Uganda and this can be confirmed to thus far have been achieved on great strides.

Numerous companies have taken part in registration and confirming participation in this great initiative and it can safely be said that there have been more than 5,000 Chinese companies and over 150 from Uganda adapting to this new trade arrangement. The good news with this is that over 230 companies from both countries have since engaged and participated in trade together using the arrangement and about 130 billion have been collected by the Uganda Revenue Authority for the trading done by those companies along the border and within the boundaries of Uganda. The value of the trade between the companies in both countries has also increased in the recent financial year to over 750 billion Ugandan shillings. This goes back to the objectives set out in the various Corporation agreements that two countries have been engaged in, in the recent years.

The most known modern way the countries worldwide are able to facilitate state activities and governments is through revenue collection and this is the main basis for engaging into this kind of arrangement by the two players. Therefore, each country twice as much to simplify not only ways of generating more revenue but also without inconveniencing the taxpayer while maintaining stable means of putting such finances to productive use. As far as application of the revenue is concerned, Uganda still grapples with all possible forms of corruption and should therefore seek as much of lessons from China to make sure that their education of the vice is also a major objective if it wants to make proper realization of the revenue’s benefits.

The two countries also realized the adverse effects of delay in transportation of goods and services across boundaries and therefore since data is one of the most important resources in a government can have grip on, since this arrangement is also meant to enable easy data sharing on various cargo that would be transported to and from the two countries.

However, with multi border trade comes risks and therefore imperative to come up with risk assessment to measures. In this case, the arrangement was also meant to provide for better grip on the control of the Trade Practices between all key players during transportation and find a delivery of the goods to the consumers. On another bright side, the arrangement has since helped to increase competitiveness among the companies involved in the platform in as far as manufacturing, packaging, delivery, and response to consumer feedback. With clearance now eased, goods and services will be able to reach their final destination in the shortest possible time and also enable the companies involved to compete and set up themselves for better and bigger deals in the trade sector. Presently, more than 20% is being benefited from only the companies that are participating in this arrangement which is a great side and commendable initiative by the two countries. The figures from China are equally promising and therefore an indicator of why good international relations is important and a stable means of achieving much of the goals amongst various nations.

Tax evasion is a crime that many countries grew up with fighting to the nail to make sure that its effects are greatly eradicated. Otherwise, failure to combat such vices undermines efforts that would have been invested. Therefore, this calls for possible forms of compliance with the day’s tax laws, regulations, and practices. The benefits of this arrangement can not be overemphasized, but ultimately, with furthered sensitization, there will be more players joining along the way.

Alan Collins Mpewo, is a Senior Research Fellow, Development Watch Centre.