The Future of China–Africa Economic Ties

Abstract

The chapter pulls together the underlying themes, analytical perspectives, and pathways to Africa’s economic transformation, and the catalytic role of Chinese investment and trade for Africa’s industrialization and long-term growth. It also reviews FOCAC VII (September 2018) as signalling latest directions in China–Africa economic ties for the coming years. Economic ties between China and Africa have made a significant contribution to the economic transformation of Africa; however, the outcomes of these engagements are characterized by unevenness and shifting dynamics across different countries. Hence there is a need for evidence-based productive discourse that puts Africa’s transformation at the heart of the dialogue on China–Africa economic ties in the context of a changing international environment. Variations in proactive strategic approach, policy ownership, and implementation capacity are major drivers of this disparity. This chapter highlights China as a source of learning and argues that deepening the economic ties (Chinese FDI towards building productive capacity, trade imbalances, debt sustainability and alternative mechanisms, and strengthening of FOCAC) can have an important role in the economic transformation of Africa.