'New start' expands scope of China-Africa trade(2)

"Today, China is without doubt Africa's most important and consequential commercial partner. (It is) a significant source of capital for Africa, laying the foundation for African economic growth, development and industrialization," said Jeremy Stevens, chief China economist at Standard Bank, Africa's largest bank that is headquartered in South Africa and operates in more than 20 economies.

"The most obvious and leading edge of China-Africa relations has been bidirectional trade, which has surged in the past decade," Stevens said.

"Recognizing the supportive diplomatic scaffolding and the robust and vibrant underlying opportunities across Africa, which complement China's own internal economic transformation and rebalancing, more and more Chinese and African firms have flourished in the corridor," he said.

Data from China's Ministry of Commerce showed China has remained Africa's largest trading partner for 12 consecutive years. Bilateral trade between China and African countries surged by 40.5 percent year-on-year to reach a record $139.1 billion during the first seven months of the year despite the pandemic.

Last year, Africa's trade with China reached $180 billion, accounting for about 21 percent of the continent's total foreign trade.

The flow of China's direct investment in Africa has grown by more than 25 percent annually on average over the past 20 years.

By the end of 2020, about 623 Chinese companies had operated in 25 economic and trade cooperation zones in Africa, with combined investments of more than $7.3 billion. They have contributed $1.47 billion in taxes to host countries and provided jobs to 42,000 locals, according to the Ministry of Commerce.

Copper and cobalt mining giant Sino-Congolaise des Mines, or Sicomines, a joint venture between enterprises of China and the Democratic Republic of the Congo, is just another example of the mutual benefits China-Africa cooperation brings about.

Jointly created by the Gecamines Group appointed by the DRC and a consortium of Chinese State-owned companies composed of China Railway Group Ltd, also known as CREC, and Power Construction Corp of China, or PowerChina, Sicomines is currently operated by China Railway Resources Group Co Ltd, a subsidiary of CREC.

As one of the most prominent Chinese projects in Africa, the Sicomines deal sets an innovative one-in-all cooperation model involving resources, investments and economic growth.

Chinese enterprises are obliged to provide $3 billion for the DRC's infrastructure. The two sides co-established the joint venture, for which Chinese enterprises will invest $3.66 billion. Mining revenues from the joint venture will be used to repay the infrastructure financing.

That is to say, the urgent needs of African countries for construction and infrastructure will be met to promote local economic development, without putting a burden on local governments.