Catalysing China–Africa Ties for Africa’s Structural Transformation

Abstract

Economic cooperation between China and Africa has deepened in scope and scale in recent times, and FOCAC has emerged as the largest South–South economic partnership platform. However, evidence suggests that the catalytic effect of China–Africa engagement on the economic transformation of African countries has been uneven, primarily shaped by the strategic response of the respective African countries. This chapter proposes that China–Africa economic ties should be examined from a structural transformation perspective to adequately evaluate the catalytic effect of Chinese engagement on the economic growth and diversification of African economies, the development of domestic capabilities, and lastly on Africa’s successful insertion into the globalized economy of the twenty-first century. Based on the experience of Ethiopia, the chapter unpacks the pathways to structural transformation in the African context, and the role of the state in guiding the economy through a proactive and strategic approach to economic transformation. The chapter concludes with pathways to the future.