FOCAC: Modernization of the Global South

The Kerry Hotel Beijing during the 2018 Beijing Summit of the FOCAC. Photo courtesy of The Commons
The Kerry Hotel Beijing during the 2018 Beijing Summit of the FOCAC. Photo courtesy of The Commons

The primary multilateral coordination mechanism connecting China and African nations is the Forum on China-Africa Cooperation (FOCAC). FOCAC was one of the first regional organizations established by China outside its territorial periphery. 

Since 2018, China and the African states have explicitly viewed FOCAC as a part of China’s Belt and Road Initiative. (The Belt and Road Initiative is a massive China-led infrastructure project that aims to stretch around the globe.) FOCAC meets every three years, alternating between an African country and China.

The Beijing Summit and Ninth Ministerial Conference of FOCAC was held in Beijing on Sept. 4–6. Attendees included 51 African heads of state and government, two presidential representatives, their foreign affairs ministers, the African Union Commission chair and the Secretary-General of the United Nations.

Africa and China’s political collaboration is emphasized by FOCAC. China adheres to the Five Principles of Peaceful Coexistence, which include equality and mutual benefit, nonaggression, respect for one another’s territory and sovereignty and peaceful coexistence. These are the fundamental political rules that China promotes within the FOCAC.

China hosted the 7th China-Africa Folk Forum and China-Africa Youth Leaders Forum in Changsha on July 24–26 and the China-Africa Media Cooperation Forum in Beijing on Aug. 21. Chinese and African leaders discussed and cooperated around “joining hands to promote modernization and build a high-level Chinese-African community of destiny.” 

This forum was China’s largest domestic diplomatic event in recent years and was attended by most foreign leaders. It has become an efficient platform for South-South cooperation and a shining example of catalyzing international cooperation with Africa.

The African side highly appreciates the essential measures to be implemented in the next three years announced by President Xi Jinping in the opening ceremony of the FOCAC Beijing Summit and agrees that these measures are forward-looking and strategic, corresponding to the needs of the future development of Africa, which will provide a strong impetus to the leapfrog development of the China-Africa cooperation.

Xi pledges to help the Global South by aiding Africa’s modernization. The 10-point proposal to promote modernization on the continent announced by Xi sees China’s influence go beyond the traditional scope of trade, infrastructure and healthcare.

Xi says China will not leave any African country behind on modernization. He blames Western countries for bringing pain to many countries and says that China and African nations are working together to rectify this “historical injustice.” China and Africa stand shoulder to shoulder and defend their legitimate rights as the world witnesses unseen changes, Xi says.

Xi also said Africa is experiencing a “new awakening” and making “steady progress” toward modernization. He adds that China’s commitment to deepening opening-up and reform following the Communist Party’s third plenum will inject new energy and opportunities into China’s and Africa’s path to modernization.

“We will gather the great power of 2.8 billion Chinese and African people to jointly move forward on our path to modernization, which will also propel that of the Global South,” he says.

The African side showed their readiness to work with China, strengthen the synergy of the development strategies and jointly promote the effective implementation of these measures.

Xi says that Africa-China relations are “at their best” in history, proposing to raise bilateral relations with all African countries with ties with China to a “strategic level.” Several political parties from African countries—including Burundi, the Republic of the Congo (DRC), Equatorial Guinea, Morocco and Uganda—have approached China’s Communist Party to help them build schools for training politicians.

Modernization

According to Xi, China will work with Africa in the next three years to implement 10 partnership initiatives for joining hands to advance modernization for China and Africa, which cover the areas of mutual learning between civilizations, trade prosperity, industrial chain cooperation, connectivity, development cooperation, healthcare, rural revitalization and people’s well-being, people-to-people exchanges, green development and common security, and promote theoretical innovation and the application of scientific research results.

To ensure the successful implementation of the 10 partnership initiatives, China will provide Africa with RMB360 billion (US$50 billion) of financial support in the next three years.

New Energy Vehicles

A new market for Chinese electric vehicle (EV) automakers is emerging in Africa amid charges of “overcapacity” and trade tensions between Beijing and the United States, Canada and Europe.

Chinese exports of new energy vehicles, lithium batteries and photovoltaic products to Africa rocketed in 2023. African governments welcome Chinese electric vehicle imports.

According to African Electric Vehicle Market research from Moldor Intelligence, the size of the African electric vehicle market is projected to be $15.8 billion in 2024 and is anticipated to rise at a 10.20% compound annual growth rate by 2029, reaching $25.40 billion. Companies manufacturing EVs are scrambling to open more plants in Africa. Africa’s wealth of raw materials has also lured China’s green energy sector. Since the Covid-19 pandemic, Chinese mining companies, from the DRC and Namibia to Zimbabwe and Mali, have been booming on the continent.

Debt and Its Controversy 

Debt remains one of the most controversial issues in China-African partnerships. From 2000 to 2022, Chinese financial institutions gave more than US$170 billion in grants, loans and credit to African countries, primarily to finance Belt and Road–related infrastructure projects.

Although the continent’s total debt to China has been shrinking since the mid-2010s, Chinese lending to Africa ticked up in 2023 to US$4.61 billion, marking the highest volume of credit extended since 2019.

China-Africa Trade Deficit 

Africa’s trade deficit with China widened to US$64 billion in 2023, and the growing trade imbalance is among the significant challenges facing ties between the two sides. China exports more than $173 billion to Africa, compared to the $109 billion it imports from the continent.

Due to rapidly increasing imports from Africa, which include raw materials for China’s new energy sector and agricultural items and metals, the deficit narrowed in the first half of 2024.

Many, however, fear that China’s growing sway over Africa could undermine international efforts to promote human rights and good governance because China does not require development assistance to be conditional on a commitment to these ideals.

Critics argue that Chinese economic help to these African countries has encouraged elitism, worsened social and class inequalities and spread corruption, despite many African leaders seeing this approach as beneficial and healthy.

Critics further contend that closer ties with Africa would expand China’s sphere of influence and support its efforts to reshape its interactions with the outside world. This would be a dramatic change in the traditional patterns of Western political and economic leverage over the continent, constituting a significant challenge to Western hegemony over the political, financial and development discourse in Africa and internationally.

Conclusion 

The dynamic China-African partnerships pose significant difficulties and opportunities for the continent. Africa should work to protect and advance its interests while seizing the opportunity presented by its strategic engagement with China. The need for Africans to understand China and its motive for engaging with Africa is now greater than ever.

To create a workable plan for addressing the opportunities and challenges brought about by China’s growing involvement in Africa, they must, at the very least, have greater knowledge about China as a nation and its goals.

Chinese ambitions in Africa changed from the previous stage to a more aggressive pursuit of economic interests. This indicates a new military, commercial, political and economic collaboration phase between China and Africa. With the constant expansion of the demand for minerals, oil, lumber, and other natural resources, China has become a significant player in the world economy.

A record $282.1 billion was traded between China and Africa in 2023, following a recent surge in trade.

Undoubtedly, Chinese investments in Africa could continue to have some positive impacts. China supports African countries in rebuilding their infrastructure and assists with agriculture, water, health, education and other sectors.

This could have positive spin-offs in addressing, for example, transaction costs, health services, the energy crisis and skills development. To be better equipped to maintain and sustain the current economic boom across the continent, African nations should take advantage of this windfall to invest heavily in education and training, diversify their economies and fortify their administrative and governance frameworks.

Africa’s role as a reliable supplier of resources will grow significantly for the global community. Initiatives for reform that lay the groundwork for new systems of accountability and transparency—like ending poverty—would benefit the African people more.

Author

  • Debay Tadesse

    Dr. Debay Tadesse has a Ph.D. in African Studies focusing on public policy and Development from Howard University in Washington, D.C., an M.A. in African History, and a B.A. in World History from Georgia State University in Atlanta, Georgia. He is an assistant professor and currently lectures at CSU Fresno and Fresno City College.

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