AFRICA-CHINA THINK TANKS FORUM REPORT - PMRC€¦ · Key Speech by His Excellency Edgar Chagwa...

AFRICA-CHINA THINK TANKS FORUM

REPORT

LUSAKA. ZAMBIA MAY 2019

Sub-Theme: Re-Branding Africa as a Premiere Destination

AFRICA-CHINA ECONOMIC DEVELOPMENT AGENDA - OPPORTUNITIES FOR BELT AND ROAD INITIATIVE AND FOCAC

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AFRICA CHINA THINK TANKS FORUM REPORT

Sub-theme: Re-Branding Africa as a Premiere Destination

Africa-China Economic Development Agenda - Opportunities for Belt and Road Initiative and FOCAC

Africa China Think Tanks Forum - Report | 32 | Africa China Think Tanks Forum - Report

TA B L E O F C O N T E N T S

Introduction

Organization and Attendance

Overview

Forum Presentations and Discussions Topic 1: Role of African Think Tanks in Spearheading the African Development Agenda

Role of African Think Tanks

Panel Discussion

Topic 2: China-Africa Opportunities of the Belt and Road Initiative (BRI) and Forum on China-Africa Corporation (FOCAC)

Key Highlights from the Presentation

Plenary Highlights

Topic 3: Is Africa on the Rise or Falling? What Economic Opportunities and Challenges Exist and How to Overcome These?

Is Africa on the Rise or Falling

Are Africans Rising or Falling

Solutions

Panel Discussion Highlights

Topic 4: Opportunities and Challenges of Bilateral and Multilateral Relations Between African and Other Countries: A Case Of Africa – China Relations

Key Challenges

Opportunities

4

6

7

9

9

10

11

11

12 - 13

14

14

14

15

15

16

16

16

17

17

17

18 - 19

20

21

25

25

26

27 - 34

35

35 - 37

39

43 - 54

55 - 59

60


Topic 5: Impact of the Belt and Road Initiative (BRI) on African Manufacturing and Industrialization (Opportunities) for BRI

Highlights

Challenges

Solutions

Topic 6: Impact of the US-China Trade War on Africa’s Development Agenda

Topic 7: Re-Branding Africa in the New Global Order

Highlights of the presentation

Plenary Highlights

Photo Focus

Annex

Programme Day 1 & 2

Key Speech by His Excellency Edgar Chagwa Lungu, President of Zambia

Other Speeches

Lusaka Declaration

Links to Presentations


Introduction

The Zambian Government has in the recent past been pursuing the country’s aspirations as enshrined in its Seventh National Development Plan which is the country’s blue-print for development for the next five years, up to 2021, and broadly envisions and smartly articulates a prosperous middle-income economy that offers decent employment opportunities for all Zambians of different skills and background and will be achieved by harnessing opportunities for economic diversification and growth. It is a building block formulated to meet the goals contained in the Vision 2030. This effort requires periodic reviews of country and continental progress being made towards development plans and Africa’s aspirations as enshrined in the African Union Agenda 2063 respectively.

The Policy Monitoring and Research Centre in its efforts to champion economic development in Zambia and Africa recently partnered with the Embassy of the People’s Republic of China in Zambia to host the Africa- China Think Tanks Forum themed “Africa-China Economic Development Agenda-Opportunities for Belt and Road Initiative & FOCAC,” with the sub-theme of “Rebranding Africa as a Premiere Destination.” The objectives of the Forum were to promote Africa’s Global Economic Cooperation through sharing knowledge and research outcomes on infrastructure, economic development, trade facilitation and initiating the process to establish renewed networking among African think tanks network committed to building great cooperation with China and the rest of the world. “Rebranding Africa as a Premiere Destination” was the sub-theme of the Forum with emphasis on African continental branding as a tool to contribute materially to solidifying, combining, projecting, and in some cases, driving the positive elements that are bringing about the emerging and fast-growing optimistic outlook. This outlook if vigorously and smartly pursued is envisaged to produce and serve to improve dramatically the continent’s attractiveness to tourists and investors as well as its capabilities to compete effectively regionally and internationally.

The African Union adopted Agenda 2063 as a roadmap for continental development by aligning thinking from across the continent and distilling the vision in a set of aspirations.

“According to statistics provided by the Ministry of Commerce of the People’s Republic of China, in 2018, China’s total import and export volume with Africa was US$204.19 billion, a year-on-year increase of 19.7%, exceeding the overall growth rate of foreign trade in the same period by 7.1 percentage points. Among these, China’s exports to Africa were US$104.91 billion, up 10.8% and China’s imports from Africa were US$99.28 billion, up 30.8%; the surplus was US$5.63 billion, down 70.0% year on year.

By December 2018, China’s total imports and exports with Africa were US$18.27 billion, up 15.5% year on year and 2.1% month on month. Among these, China’s exports to Africa were US$9.55 billion, up 3.9% year on year and 3.0% month on month; China’s imports from Africa were US$8.72 billion, up 33.7% year on year and 2.2% month on month; the trade surplus was US$840 million, down 68.7% year on year and up 13.5% month on month.

China’s exports to Africa

China’s exports to Africa

China’s imports from Africa

China’s imports from Africa

China’s import and export volume

December 2018, China’s im-port and export with Africa

US$204.19 Billion

US$18.27Billion

US$104.91 Billion

US$9.55 Billion

US$99.28 Billion

US$8.71 Billion

In 2018, the growth rate of China’s trade with Africa was the highest in the world. The import growth rate was also the highest in the world, 15 percentage points higher than our import growth rate of foreign trade in the same period.”

It is evident that as a rising continent, Africa needs to be more deeply engaged with China’s grand vision of the Belt and Road Initiative (BRI) and the Forum on China-Africa Cooperation (FOCAC) which is viewed as a mini-version of multilateral cooperation that will aid implementation of BRI projects. For African countries, there are more reasons for China to share its development experiences considering the common shared history and development paths. It is therefore imperative that African countries develop their own “homegrown solutions that actively seek to shape their partnerships with China to achieve country and the African continent’s goals.

Imports& Exports

2018, China’s total import and export volume with Africa was

US$204.19 billion.

CHINA

AFRICA


Organization and Attendance

The forum was held on the 23rd and 24th May 2019 at the Intercontinental Hotel in Lusaka Zambia and attended by more than 120 delegates drawn from Think-Tanks, Academic institutions and Governments from several African countries and China. The format of the forum included the presentation and discussion of seven topics that included;

• Role of African Think Tanks in spearheading the African Development Agenda.

• China-Africa Opportunities of the Belt and Road Initiative (BRI) and forum On China-Africa Corporation (FOCAC).

• Is Africa on the Rise or Falling? What Economic Opportunities and Challenges exist and how to overcome these?

• Opportunities and Challenges Of Bilateral And Multilateral Relations Between African And Other Countries: A Case Of Africa – China Relations.

• Impact of The Belt and Road Initiative (BRI) On African Manufacturing And Industrialization (Opportunities) For BRI).

• Impacts of US-China Trade war on Africa’s Development Agenda.

• Re-branding Africa in the New Global World Order.

The depth and level of engagement was reflected in the rich mixture of presenters and panelists drawn from prominent think-tanks, academic institutions, Governments and industry that developed consensus from a range of voices all aimed at sharing challenges and identifying opportunities to attain medium and long-term economic objectives of Africa.

OverviewOpening remarks were delivered by the PMRC Executive Director Mrs. Bernadette Deka Zulu, H.E Mr. Li Jie, Chinese Ambassador to Zambia, Hon. Margaret Mwanakatwe, Minister of Finance H.E Dr. Kenneth Kaunda, 1st Republican President of Zambia and H.E Mr. Edgar Chagwa Lungu, President of Zambia who was represented by Hon. Alexander Chiteme, Minister of National Development Planning.

Dr. Kenneth Kaunda said that “Pan Africanism is a key driver to re-branding Africa to harness its resources for sustainable development. There is need for Africa to progressively unite towards cooperative relations for an evidently shared future between Africa, and China. History has demonstrated that ideas, if implemented effectively, have the power to transform nations, continents and the world at large. If sustainable development is to be achieved in Africa, there is need to rebrand Africa, and re-establish that all relations are based on shared and equitable benefit for human and economic development.”

His Excellency Edgar Chagwa Lungu’s keynote address noted the critical role that think-tanks play towards complimenting Government’s Socio-economic development objectives and hoped for enhanced development cooperation between China and Africa in all aspects. President Lungu noted the increase in Chinese investment in Zambia and Africa over the years as well as Zambia’s quest to become a manufacturing and industrialisation hub. The Head of State further noted that the Belt and Road Initiative was a global landmark venture that was poised to massively improve trade between China and its partners. The President hailed the initiatives under FOCAC that have spearheaded international cooperation and become significant reminder of the effectiveness of South-to-South cooperation. The creation of a single market for goods and services, with free movement of business people and investments will help bring closer the continental customs union and Africa’s common market that will expand intra-African trade. President Lungu urged African countries to consolidate development paths and pursue joint strategies in engaging China.

Hon. Margaret Mwanakatwe stated that “Africa has to rely on the strategic and influential role of public policy think tanks in order to adapt its development agenda to global and regional structural transformations. Africa needs to anchor on the realization of building an Africa- China community with a shared future to assume joint responsibility and pursue a win-win cooperation. African countries need to mutually uphold the common interests of Africa and China, and concurrently implement both the belt and road initiative vis-a-vis the African Union Agenda 2063 for sustainable development programmes.”


Forum Presentations and Discussions

The main presenter was Dr. Barassou Diawara who is Knowledge Management Expert & Coordinator of the Africa Think Tank Network at African Capacity Building Foundation (ACBF)

Key highlights of the presentation were as follows;

Role of African Think Tanks

• Successful implementation of Agendas 2063 and 2030 as well as the regional and national development plans must be supported by the think tanks and underpinned by evidenced-based policy-making.

• For think tanks to better play their role, they need to be politically and financially supported through unrestricted, periodic subvention to enable think tanks to deliver policy-relevant research. This can be achieved through the establishment of the Think Tanks Support Facility.

• Think tanks need to actively participate in policy discourse. They often need to be requested to participate, or lead, in policy discourse by key Government officials through the development of policy research and/or dissemination.

• Think tanks need to influence and impact policy. This can be done through rigorous policy analysis, publications and dissemination. Think tanks need to use different tactics to influence policy. Policy dialogues and workshops appear to have been utilized extensively and have had some impact on policy reform. Other advocacy tools such as television and radio can also be used.

The role of think tanks includes technical research, developing and training on methods of creating evidence, facilitating participatory methods, building alliances for better influence on policy, training critical masses of the various stakeholders involved in decision-making.

TOPIC 1: Role of African Think Tanks in Spearheading the African Development Agenda

DR. BARASSOU DIAWARA The African Capacity Building Foundation (ACBF) ZIMBABWE

PMRC Executive Director Mrs. Bernadette Zulu highlighted the importance of dialogue, brainstorming sessions and interaction of think-tanks to develop appropriate course of direction that guarantees successful economic trajectory for the people of Africa and China. She urged Africans to be more determined than ever before in developing the right strategies to respond to domestic and international challenges by harnessing the current optimistic outlook of Africa by constructing resolutions aimed at making Africa the most preferred Global Investment hub and envy of the world.

Ambassador Li Jie remarks focused on the major changes happening in the world including; economic globalization setbacks, the international situation and the need to having accurate insight of the situation before looking for new paths for development. Ambassador Li Jie echoed His Excellency Xi Jinping’s principles of extensive consultation, joint contribution and shared benefits, connectivity targets and the need to develop high-quality, sustainable, resilient, affordable, inclusive and accessible infrastructure projects, African integration with interconnection of transportation, energy and communication to promote regional industrial trade and investment cooperation as vital elements for Africa’s development. He further stated that great visions could only be realized through actions and that China stands ready to work with Zambia and other African countries to synergize construction of the BRI, implement the FOCAC Beijing Summit along with Zambia’s Seventh National Development Plan and the AU’s 2063 Agenda, and push forward China-Africa practical cooperation.


Panel discussion

The general consensus of the panel discussion was that, African Think Tanks needed to compliment the AU Development Agenda 2063, which is the strategic framework for delivering on Africa’s goal for inclusive and sustainable development and is a concrete manifestation of the Pan-African drive for unity, self-determination, freedom, progress and collective prosperity pursued under Pan-Africanism and African Renaissance. To this effect Thinks tanks were implored to spend time on building capacities of Civil Society Organizations who in turn would educate general citizenry in understanding the African Development Agenda 2063.

Much more, Think Tanks were tasked with the need to prioritize social economic development by emphasizing among other issues education, mortality, morbidity and malnutrition. China was identified as key partner for Africa in addressing some of these challenges because she had proved to be reliable.

China was implored to increase her FDI into Africa which stood around 4 percent of the total Chinese global FDI. The panelists also emphasized the need to encourage networking among the African based Think Tanks. Further, African Think Tanks were urged to increase collaborations with other global think tanks especially those from China to draw best practices in policy research and analysis. Particularly, Chinese Think Tanks were called upon to build capacity in African Think Tanks on how China has managed to grow her economy at an astronomical pace and became a global super power in a short time. Collaboration between Chinese and African Think Tanks was also sought in provision of evidence-based research to demystify myths surrounding the Africa China relationship, and if possible, the Chinese were requested to set up Chinese universities in Africa to transfer knowledge in industrialization and rural development.

It was also agreed that there was need to develop a support facility for Think Thanks in Africa and map them out, in order to promote networking, encourage joint efforts and avoid duplication of work. Through the panel discussion it was also resolved that Africa needs to develop a strategy on how engage with China, since China already had a strategy on how to engage with Africa.

Through the panel with discussion, it was also stressed that Thinks Tanks in Africa needed to strengthen their communication strategies to the policy makers and the general public by simplification of technical reports for easy understanding which in turn can lead to increased uptake of recommendations by Government and other policy makers.

TOPIC 2: China-Africa Opportunities of the Belt and Road Initiative (BRI) and Forum on China-Africa Corporation (FOCAC)

MR. CAO MIN - Head of Chinese Segment of Standard Bank Group, KENYA

Key Highlights from the Presentation

• The aim of Belt and Road Initiative (BRI) is to build a trade and infrastructure network connecting Asia with Europe to carry Africa along and beyond.

• The trade network will comprise dynamic economic corridors traversing Asia, Europe and Africa hence creating a regional production chain of advanced manufacturing and innovation furnished by first world infrastructure networks across the regions.

• The BRI is bold and ambitious with enorMOUs potential to reshape global trade and investment hence complimenting the development strategies of countries involved.

• In 2013, when President Xi announced the BRI he described it as a platform of international cooperation.

• Standard Bank group also believes in promoting trade to foster financial inclusion, facilitate people to people exchanges and bring the world close together.

• Unlocking economic growth in the spirit of development presents a complex equation involving numerous economic, social and political variables. These aspects are multifaceted and interlinked which means the strategy of growth will not be simple. Therefore, connecting people and communities to markets is a powerful step forward.

• Physical infrastructure is essential for economic diversification, propelling agriculture, manufacturing, service, trade and even human capital enhancements while elevating incomes

• Deficiencies of physical infrastructure impinge upon development leaving some countries in the periphery of global trade and investment making service provision costly.

• The SGR railway project in Kenya has largely changed economy structure of Kenya and also factories in Zambia have brought industrialization to the community.


• In Africa, rapid economic growth, demographic trends and urbanization suggests cities will rise. For example, by 2050, Lagos will bigger than any Chinese city and Africa will have a quarter of the world’s largest 100 cities. Recognizing this need, for a long period, China has been supporting the development of African infrastructure.

• About half of Chinese investment and loans to Africa to date are in transport, infrastructure and energy. Standard Bank together with its strategic partner ICBC given their years of experience in financing projects in complicated markets across Africa has developed considerable lessons and believes that have a lot to offer in terms of expertise to such discussions.

• BRI projects should be commercially viable and there’s need to plan and match funding to recipients to ensure that infrastructure development can be sustained over the long term. Banks and other financial institutions can come in during different stages of a projects life cycle.

• It has now been more than five years since President Xi Jinping first announced the BRI, which has delivered positive results for developing countries. China ought to be commended for shedding light on the need for increased investment in infrastructure and connectivity around the world.

• Financial institutions play a critical role in BRI because many of the envisioned projects often require large capital commitments at early stages and the pay-back period often is lengthy.

• BRI presents a humane way of globalization and can actually be looked at as an alternative to globalization.

Which value addition activities should then Zambia focus on in responding to BRI?

• The model China has made is good not just for China but also for Africa, particularly Zambia. However, Africa and Zambia still have to interrogate it.

• It is good to have a model that is promoting growth and still allows for employment and job creation, sustainability and leaving no one behind.

• No country has developed minus engaging the Think Tanks. Therefore, the Government should engage Think Tanks in interrogating this (Chinese) model.

• Zambia needs a model that is inclusive for everyone.

Are there any specific benefits that China can offer to maximize the capacities in different sectors?

• China has invested more than $3 million in Zambia for Agriculture and Industrial activities, thus the BRI comes at a very important time.

How can entrepreneurs be incorporated in Zambia-China relations? What are the policy prescriptions on what Zambia wants from China?

• Zambia needs to change its mindset.

• Zambia needs to approach Embassies and Chambers of Commerce to identify trade opportunities.

• Zambia has outlined what it wants in the 7NDP.

• Zambians should consider dealing directly with entrepreneurs and the media should give entrepreneurs a platform and highlight investment opportunities.

Plenary Highlights:

The following were the questions posed and responses given during the plenary sessions.

What does the BRI mean for Africa? How can it enhance the capacity for Africa?

• Research and Development is key. China-Africa should ensure that Research and Development (R&D) is promoted in order to allow for sustainability in the investments made in various sectors.

• Zambia needs to leverage on the private sector capacity to compliment Government efforts.

• Africa should have a structure of its needs from China and should propose the development of industrial structures.

How can Zambia position itself to maximize the benefits from the connectivity (Intra-Africa trade)?

• The Tanzania Zambia Railways (TAZARA) can play a critical role in BRI and it will promote growth and enhance Africa’s trade.


TOPIC 3: Is Africa on the Rise or Falling? What Economic Opportunities and Challenges Exist and How to Overcome these?

MR. JOAB OKANDA, Financing for Development and Inequality Advisor, Oxfam Pan African Programme, KENYA.

Is Africa on the Rise or Falling?

To begin with, African economies have in the last ten years recorded some positive growth in large infrastructure projects, democratic transitions, new technological innovations and increase in the number of actors with both economic and political interest from across the globe.

Secondly, African countries have been among the world ten fastest growing economies since the early 2000s. The countries whose GDP growth has been among the ten include: Nigeria, Ghana, Tanzania, Angola, Rwanda, Ethiopia and Zambia (Appendices) .

While the above indicates that Africa has been on the rise in GDP terms, the questions remains if Africans are on the Rise?

Are Africans Rising or falling?

The presentation highlighted that research suggest that while GDP has been growing in most African countries, poverty levels as a proportion of the population has declined more slowly than any other region. By 2012 there were 50 million more people living in extreme poverty in Sub-Saharan Africa than they were in 1990.

The presentation further highlighted the expected increase in poverty in Sub-Saharan Africa despite the continued growth. Data indicates that Africa’s share of the world’s extreme poor will rise to 80% or above by 2030 if current trends of illicit finance flows and decline in tax-to-GDP ratio are not reversed.

Lastly, the presentation highlighted that Africa is experiencing widening inequality across the continent.

SOLUTIONS

The question that arises is how does Africa consolidate the gains made to achieve sustainable development?

The presentation highlighted the following as some of the measures the continent can take to achieve growth both in economic terms and socially:

1. Firstly, the presentation recommended direct investment in Africa’s rural economy which constitutes 60% of the continent’s population. This investment should be in line with or exceed the Maputo declaration with timelines and monitoring mechanisms. The presentation emphasized that the investment should prioritise Research and Development (R&D), Extension services, Infrastructure, subsidies and fair prices for food.

2. Secondly, the presentation highlighted the need for Africa to invest in human economy as a way of strengthening human development and capacity. It is for this reason that the presenter urged Governments to increase the proportion of their spending on gender responsive public services that reduce the burden of care on women and strengthen skills and technological transfer.

3. The third recommendation highlighted by the presenter was the need for China to offer clarity on climate financing for policy makers under FOCAC especially regarding the South- South Fund and the South-South Cooperation Fund.

4. Africa should harness its population divided which is very youthful by investing in innovations that will ensure a dynamic and innovative population.


The following are some of the highlights of the panel of discussion:

• While GDP as a yardstick for measuring growth indicate that Africa is experiencing growth, other indices show otherwise because there is a rise in poverty and maternal mortality in Africa. Therefore, in order for Africa to get a true picture of its development achievements, there is need to develop development indices that apply to the African context.

• There is need for African Governments to ensure that the trade relations between Africa and China are complementary and supplementary with promotion for intra-Africa trade.

• Africa is on the rise because there are many opportunities and challenges, for example, there is an opportunity for Africa to access loans from China to fund projects that could otherwise not be accessed from the west.

• Africa should open up to FDI and just like China should harness their comparative advantages and open economic zones.


TOPIC 4: Opportunities and Challenges of Bilateral and Multilateral Relations Between African And Other Countries: A Case of Africa – China Relations

DR. LIU HAIFANG from Peking University, CHINA.

Key Highlights from The Presentation

China has had long term relations with Africa which dates back to the early 1940s. The coming of the Forum on China-Africa Cooperation (FOCAC) in the 1970s, which was requested by African economies for multilateral co-operations with China and gave China an important opportunity to learn about Africa. Africa-China relations have changed over the last ten years with emphasis on economic opportunities particularly in constructions. Africa should be seen as an able player in the development agenda. China looks at Africa as a positive, bright view and optimistic but still operate consciously because it understands that this is still a learning process for it. Africa is not just a receiver of aid but also a collaborator of development. FOCAC is an important experience for China and Africa therefore, the Belt and Road Initiative (BRI) presents an ever more learning opportunity for bilateral relations between Africa and China. In 2009, China replaced US as Africa’s main bilateral trading partner. Africa’s trade is increasingly diversifying. There is a growing confidence and optimism among Africans themselves about the continent’s progress and future.

1. KEY CHALLENGES • Inconsistencies and political changes

• Knowledge gap in countries

• Cross-cultural

• Cross-environment

• Lack of local ownership

• Social challenges

• Paying back of loans

2. OPPORTUNITIES

• Embedment of human capital training

• The diversity of partners is a tremendous opportunity for Africa

• Each wave of countries engaging with Africa brings with it new:

i. Productsii. Capital goodsiii. Technology

iv. Know-how and expertise

v. Development experience

• Job creation

• Source of revenue for related industries


• Panelists highlighted that China plays a key role in helping Africa achieve the Agenda 2063.

• The Forum on China-Africa Cooperation FOCAC provides a good platform to achieve a win-win situation.

• FOCAC is one organized avenue that African countries can use to break through and get the benefits it wants from China and influence its development agenda.

• Africa must be strategic enough to know what it wants from China, once Africa is very clear about it then we can start reconfiguring our development framework and development trajectory with a view of maximizing the benefits from China.

• African countries should give Chinese investors enough information on the interested sector especially the Labour Laws.

• There is need to move from Political dependency to Economic dependency which will help stakeholders to take advantage of the Africa-China relations.

TOPIC 5: Impact of the Belt and Road Initiative (BRI) on African Manufacturing and Industrialization (Opportunities) for BRI

DR. PAMELA NAKAMBA KABASO The Executive Director of the Zambia Institute for Policy Analysis and Research (ZIPAR), ZAMBIA

The Belt and Road Initiative (BRI) presents an opportunity for improved connectivity which may have a positive bearing on the advancement of African manufacturing and industrialization. The outcome of this discussion highlighted the following;

Highlights

• African countries can leverage the Belt and Road Initiative (BRI) for Foreign Direct Investment (FDI and investments in Research and Development (R&D) and manufacturing

• African industrialization and AFCFTA nexus

• Africa’s Industrialization challenge

• Leveraging the BRI for industrialization and increased Intra- Africa trade


CHALLENGES

1. Access to Finance

• African industries are constrained by limited access to financial resources which in-turn affects competitiveness of African businesses and therefore, making them low on competitiveness and getting credit parameters.

2. Infrastructure development

• This remains a significant hurdle and Africa Development Bank (AFDB) estimates Africa’s infrastructure needs at least $130- 170 billion a year.

3. Productive capacity and Foreign Direct Investment (FDI)

• Weak productive capacities are a characteristic of manufacturing in Africa and productive capacities also limited by quality of human capital and R&D.

4. The FDI from China is concentrated in the mining and construction sectors and a little in the social sector.

Productive Capacity and FDI

THE CHALLENGES

• Weak productive capacities are characteristics of manufacturing in Africa.

• Africa’s exports skewed towards low value-added products.

• Productive capacities also limited by quality of human capital and R&D.

• FDI can be used to build industrial productive capabilities in Africa.

Infrastructure Development

THE CHALLENGES

• Infrastructure development remains a significant hurdle.

• Africa’s poor connectivity estimated to increase cost of intra-Africa trade and FDI by 30-40%.

• The Trans-African Highway first conceptualised in 1971 by UNECA.

• AFDB estimates Africa’s infrastructure needs at $130-170 billion a year.

• Currently a financing gap of approx. $68-108 billion.

• Programme for Infrastructure Development in Africa (PIDA) launched in 2018.

• Additional funding sources required.


Solutions

• Broader sources of financing are required to bridge financing gap.

• BRI provides alternative options for access to finance for Africa.

• BRI will leverage on FOCAC which also provides various funding streams.

• BRI aims to improve global connectivity by facilitating establishment of trade corridors.

• Develop capacity for implementation of policies in order for Africa to tap into the BRI.

• Africa needs to understand the type of industrialization it requires in order for it to unpack. the BRI industrialization opportunities.

• Africa can leverage the BRI for FDI and investment in R&D.

• 2018 FOCAC summit pledge included $10 billion in support of FDI.

• People-to-people exchange under BRI provides an avenue for building human capital.

TOPIC 6: The Impact of the US-China Trade War on Africa’s Development Agenda: Evidence from African Agricultural Exports to China in 2018

MR. BHASO NDZENDZE- Research Director: Center for Africa- China Studies University of Johannesburg (UJ)

Introduction

The Africa-China relationship occurs in a global context. They are thus affected not just in bilateral settings, but also by third-party motivations, actions and perceptions. While this has been in the realm of ideas, recent developments have brought these into material terms as well. None more so, perhaps, than the 2018-initiated trade war between the two entities. This brief gives an account of the trade war, upon which it discusses the trade data for the African continent and China. It is argued that the trade war offers not only causes for pessimism, but also demonstrates the case for a cautious optimism, especially regarding agricultural exports to China in the advent of Chinese retaliatory tariffs on US agricultural goods. Finally, the last section discusses some policy recommendations for national governments as well as regional bodies and the African Union (AU) going forward.

Background on the trade war

On March 22, 2018 the Trump administration announced tariffs on Chinese imports, valued at around US$50-billion, in response to what the White House appraised to be Chinese theft of American technology and intellectual property. The measures targeted goods such as Chinese steel and aluminum imports, along with clothing, shoes, and electronics. Some Chinese investments in the United States were also restricted. There was an additional motive in imposing tariffs on Chinese-imported goods as part of Trump’s campaign promise-keeping; by making Chinese products more expensive, they would also help revive American industry and therefore create more jobs and further encourage China-based companies to relocate to the US.

In response to this, China imposed its own retaliatory tariffs. In early April of 2018, China imposed these on a range of American products. This stage was the beginning of a trade war between the two largest economies in the world. To date, the US has imposed three rounds of tariffs on Chinese goods, totalling some US$250-billion. Beijing on the other hand has hit back with tariffs of $110-billion worth of US goods, accusing the US of starting “the largest trade war in economic history.”


Trade in the African Development Agenda

Among its 7 aspirations, the AU’s Agenda 2063 envisions a “world-class infrastructure, accompanied by trade facilitation [which] will see intra-African trade growing from less than 12% in 2013 to approaching 50% by 2045” while also moving Africa’s share of global trade from 2% to 12% (AU, 2013: 6). For Africa, as the African Development Bank (AFDB) notes, “trade is the cornerstone of economic development by African countries.” Indeed, Botswana, Mauritius and Namibia have all transformed their statuses from low income into middle-income countries “by improving their ability to trade in regional and global markets.” At the same time, Africa accounts for just 3 per cent of global trade and has a lower proportion of intra-regional trade than any other part of the world. In this regard, it has been modelled that if Africa was to increase its share of world trade by just a single percent, that 1 percentage point increase generate about US$70-billion of additional income (for reference, this is about three times the total aMOUnt of development assistance the continent receives from the rest of the world each year).

But some obstacles stand in the way of the continent’s trade dividend. For one, the continent remains overly dependent on the export of raw materials, and as a result growth levels fluctuate in line with international commodity prices. Could this trade war yield adverse effects for the continent in this regard? So far, South Africa is the only Sub-Saharan African country the United States directly targeted with tariffs. South African companies are on a list of major exporters required to pay a 10 percent tariff on aluminum and 15 percent tariff on certain steel exports to the United States. Rwanda has also had its trade benefits removed due to its refusal to allow second-hand US clothes entry into its market. So far, these have been the outcomes.

But what of trade war-related benefits for Africa? With Chinese manufacturers anticipated to divert operations outside of China to avoid US tariffs, Africa stood an opportunity to be the new base of operations. However, African businesses have so far proven poorly positioned to benefit from commercial opportunities surfacing from the trade war, with Asia and Latin America, proving more ready since “they possess more developed manufacturing sectors than Sub-Saharan Africa, are poised to clinch most of these deals,” according to the Washington-based Center for Strategic and International Studies.

One area of opportunity, however, was agriculture.

The Agricultural Aspect

When China joined the World Trade Organization in 2001, US agricultural exports to the country were virtually non-existent. By 2017, they were worth $23.8 billion. In April 2018, as part of escalating the trade war with the United States, China announced plans to impose 25% higher tariffs on more than 100 U.S. products. The list includes several different tobacco products as well as soybeans. Earlier, China had announced tariffs on pork products from the US. Chinese tariffs on American unmanufactured tobacco also rose from 10 percent to 35 percent, while duties on cigarettes and cigars went from 25 percent to 50%. Africa therefore would appear to have an opportunity to situate itself as an alternative source of Chinese agricultural goods.

2018 findings

For 2018, South Africa’s edible fruits and nuts exports to China grew by 32.13%, while meat exports grew by 32.13% for the same period. Expanding this into the Southern African Customs Union (consisting of SA, Botswana, Lesotho, Namibia and eSwatini), we find consistent indicators of growth in exports to China. The customs union saw the following movements. Meat exports to China grew by some 240%, while fruits and nuts saw a lower but still impressive 104% year-on-year growth. Timber exports to China also saw a 151% year-on-year growth. These growth rates are similarly noticeable when the sample is further widened to include the broader 16-member SADC region that also saw fruits and nut exports to China grow by 40%, and tobacco totalling a 100.3% year-on-year growth.

250

200

150

100

50

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2016 2017

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Total SADC Agricultural Export to Chain 2016-2018

2018

Interestingly, these growths were mostly matched or exceeded throughout the regional groupings on the continent, with ECOWAS experiencing a growth in fruits and nuts exports of up to 143% year-on-year growth, and timber 270% year-on-year growth. The East African Community (EAC) also saw growth in tobacco exports reaching 35%. The only decline was in fruits and nuts, which shrank 45% in 2018. All the while American tobacco exporters were open about their declining agricultural exports to China, with North Carolina farmers, America’s principal exporter, “expected to plant the smallest tobacco crop since before World War II” (Eanes, May 21 2019). In 2017, the state exported some $162 million worth of tobacco to China. But last year, that number fell to $4 million, a 98% decline due in part to tariffs (and, admittedly, some bad weather).

Edible Fruits and Nuts

Tobacco


Considerations and dilemmas

Correlation is not causation. Thus growth in agricultural exports to China need not necessarily be a result of the trade war between the US and China. Nevertheless, the above findings are consistently exponential in various countries, and throughout regions. Other factors, among them a favourable season, do not by themselves explain the destination of the produce. In light of these patterns, it can be deduced somewhat that the trade war has been a major factor in the growth of Africa’s agricultural exports to China.

Above all, the US-China trade war is a reality, and Africa needs to think of it as such and put policy measures around it. On the one hand, this creates an impetus for increased intra-continental trade. Most pertinently and perhaps most practically, the findings indicate that African agriculture has a unique moment in history in which to flourish. It is worth recalling that African agriculture always struggled to break out despite Africa’s obvious natural niche because the EU and US had always put in place subsidies which have a crowding out effect for African agricultural produce. Worse still, the EU’s common tariff of between 30 and 60% towards African coffee produce for green and roasted coffee respectively, incentivized African producers away from enriching their produce. Now there are new sets of incentives to subsidize agriculture in Africa.

On the other hand, there is also a need for support for smallholder farmers. Particularly, in terms of policies geared towards limiting bio threats, as well as beneficiation and value adding to fruit- and vegetable-related products. African juice, syrup, and furniture producers therefore have an opportunity to penetrate the Chinese market as never before. The task lies with China desks in agricultural departments across the countries (and collectively through the AU Joint Conference of Ministers of Agriculture, Rural Development, Fisheries and Aquaculture) to facilitate harmonisation of standards to facilitate further entry into the Chinese market and prevent hurdles down the road, as well as obtain long-term commitments from their Chinese counterparts. Another end goal of this facilitation could be ensuring the initiation of African-led joint agricultural ventures and operations. This could be the best way to know what China wants and at the same time make China have a stake in the success of the agricultural sector and therefore prioritise it over other markets, which are eager to close the gap presently posed by the trade war.

Ultimately, the trade war is a window of opportunity in which Africa can bolster its agricultural industries, and use those to further diversify and enrich its export profile so that it can be able to think beyond China.

TOPIC 7: Re-Branding Africa in the New Global Order

Highlights of the presentation

• Africa does not have a brand to talk about, how then can we rebrand what has not been branded.

• The African Union Vision 2063 gives a vision of what Africa wants.

• Africa’s image is that of being a backward continent that was colonized and has failed to industrialize, agriculture oriented, corruption, wild animals, diseases, hunger and natural calamities.

• Africa has been characterized by coup d’états and violence.

• Most of the tourists in Africa are from the Western countries as opposed to Africans themselves.

• The African image has been tainted especially by the media in the Western world, the question is why can’t we use our media to report positive things about Africa? Is it because our media is compromised? These are some of the issues as Africans that we need to sort out.

• Branding came from cattle branding/marking.

• Branding can totally change the perception of a given product and helps in distinguishing the product from similar products which is called product differentiation

• With proper branding, a country can dictate the prices of its products which in turn brings in more revenue.

• Africa has unique properties that can be used to improve its branding such as location as it is centrally located with an abundance of natural resources and the second largest population in the world which can be used to its advantage.

• In order for Africa to re-brand itself, there is need for the development of human capital, availability of information, stable macroeconomic indicators and the eradication of corruption.

DR. CALEB FUNDANGAInstitute For Finance and Economics ZAMBIA


• Africa must be bold in its attempt to attain its objectives and innovations.

• Trade can be used as a way of African countries to improve and break out of poverty.

Plenary Highlights

• Africa must begin to give itself a positive brand and not allow the image portrayed by the Western world to taint its image. Africa must therefore, send out a positive message of what it wants to be known for.

• Given that the new global order is the technologically enhanced, Africa must reposition itself and must be accustomed to the advancement in technology

• The new brand should be that Africa is a premiere investment location, in order to attract more Foreign Direct Investment. In doing so, African countries should be able to dictate what investments should be made by focusing on priority areas

• Think tanks should help Governments in Africa to explain what should be harnessed in the trade with China.

• African countries can draw lessons from Rwanda, which has successfully managed to re-brand itself.

• Countries should understand that rebranding could come at a cost of backlash especially by the beneficiaries of the current state.

• Africa needs repositioning beyond rebranding.

• There is little to show for Africa’s manufacturing sector, going forward, there is need for African countries to improve their manufacturing sector if they are to re-brand.

• Africa has to put itself at the centre of the new global order if its to benefit from it.

PHOTO FOCUS


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PHOTO FOCUS ANNEXPROGRAMME

DAY 1 TOPIC PARTICIPANT TIMENational Anthem Zambia China AU

All 08:50

Prayer Ms. Chileshe Chaunga 08:55Opening Remarks

PMRC Executive DirectorChinese Ambassador

Mrs. Bernadette ZuluH.E. Li Jie

09:00-09:25

ENTERTAINMENT Amaombe Troupe & Confucious 09:25-09:50REMARKS 10:20-10:35

Remarks Keynote Speaker - Jack Ma Yun (Alibaba) - China 5-6 Mins

Arrival H.E. Rupiah Banda (Fourth President)- (Executive President Zambia-China Friendship Association)

RemarksKeynote Speaker - Pan African Icon - H.E. Dr. Kenneth Kaunda (First President) (Honorary President of Zambia - China Association)

5-6 mins

Opening Remarks Minister of Finance/PMRC Board Chairman Hon. Margaret Mwanakatwe MP 10:40-10:50

Opening Speech Guest of Honor

Minister of National Development Planning Hon. Alexander Chiteme 10:50-11:00

PHOTO SESSION (ALL)

TEA BREAK ALL 11:00-11-15

Topic 1: The Role of African Think Tanks in spearheading the African Development Agenda Speaker: Dr. Barassou Diawara - Zimbabwe 11:25-12:15

Panel Discussion/ Plenary Session

1. Mrs. Bernadette Deka Zulu - Zambia2. Mr. Francis Hale - South Africa3. Dr. Hamid El-Bashir Ibrahim - Sierra Leone4. Ms. Chenai Mukumba - Zambia

5-6 mins Each

Moderator Mr. Salim KaundaLUNCH BREAK ALL 12:30-13:45

Topic 2: China-Africa Opportunities of the Belt and Road Initiative (BRI) and Forum on China-Africa Cooperation (FOCAC)

Speaker: Cao Min - Kenya 14:00-14:30


1. Dr. Jerome Kawesha - PMRC Board Member - Zambia

2. Dr. Michael Mulikita- Zambia3. Dr. Lubinda Haabazoka - Zambia 4. School of Business Mulungushi University - Zambia5. China Civil

5-6 mins Each

Moderator Dr. Claudia PollenTEA BREAK ALL 15:20-15:30

Topic 3: Is Africa on the Rise or Falling? What Economic Opportunities and Challenges Exist and how to Overcome these.

Speaker: Joab Okanda 15:35-16:00


1. Professor Oliver Saasa - Zambia2. Professor Sumbye Kapena - Zambia3. Dr. Fanwell Kenala Bokosi - Zimbabwe4. Benedict Musengele - Zambia5. Eng. Kumbukilani Phiri - Zambia6. Bank of China

5-6 mins Each

Moderator Dr. Thomas MunthaliRecap of Day 1 Master of Ceremony 17:00

End of Day Remarks PMRC Executive Director 17:05

D AY O N E - 2 3 R D M AY , 2 0 1 9


PROGRAMME

TIME ACTIVITY PARTICIPANT

19:00 Entertainment Uncle Rex & The Band

19:10 National Anthems (Zambia, China, AU) All

19:15Remarks

Vote of Thanks

PMRC Executive Director - Bernadette Deka Zulu

African Think Tank Network - Dr Barassou Diawara

19:20 Remarks & Vote of Thanks Peking University China - Dr. Lui Haifang

19:25 Special Remarks Chinese Ambassador - H.E. Li Jie

19:30 Special Remarks PMRC Board Chairman - Hon. Margaret Mwanakatwe

19:35 - 20:00 Entertainment Uncle Rex & The Band

D AY O N E ( E V E N I N G ) - W E L C O M I N G C O C K TA I L

DAY TWO ON THE NEXT PAGE

DAY 2 TOPIC PARTICIPANT TIMENational Anthem Zambia China AU

All 08:00

Remarks (Vote of Thanks) Ms. Kayula Siame - Permanent Secretary, Ministry of Commerce, Trade and Industry. 08:30

PHOTO SESSION (ALL)

Recap of Day 1 Events Master of Ceremony 08:50-09:00

Keynote Speaker Professor Said Adejumobi (ECA) - Zambia 09:00-09:10

Topic 4: Opportunities and Challenges of Bilateral and Multilateral Relations Between Africa and other Countries: A Case of Africa-China Relations

Speaker: Dr. Lui Haifang - Peking University China 09:10-09:40


1. Dean Mulozi - African Union ECOSOCC2. P.S. Chola Chabala - Zambia3. P.S. Amb. Chalwe Lombe - Zambia4. Professor Pinalo Chifwanakeni - Zambia5. Dietrich Remmert - Namibia6. China Hydro

5-6 mins Each

Moderator Mr. Chibamba Kanyama

TEA BREAK ALL 10:30-10:45

Topic 5: Impact of the Belt and Road Initiative on African Manufacturing and Industrialization (Opportunities for CFTA)

Speaker: Dr. Pamela Nakamba-Kabaso - Zambia 10:50-11:20


1. Benedict Musengele - Zambia2. Ministry of Commerce - Zambia3. Mr. Ingómbe Lutangu - Zambia4. Kedibonye Sekakela - Botswana5. Sinoma

5-6 mins Each

Moderator Mr. Akabondo Kabechani

LUNCH BREAK ALL 12:30-13:40

Topic 6: Impact of China-US Trade War on Africa’s Development Agenda Speaker: Mr. Bhaso Ndzendze - South Africa 14:00-14:30


1. State House - Zambia2. Elizabeth Birabwa - Uganda3. Dr. Fanwell Kenala Bokosi - Zimbabwe4. Stacey Susa-Pinto - Namibia5. Huawei

5-6 mins Each

Moderator Dr. Michael Mulikita

TEA BREAK ALL 15:20-15:30

Topic 7: Re-Branding Africa in the New Global Order Speaker: Dr. Caleb Fundanga - Zambia 15:35-1600

Panel Discussion/ Plenary Session1. Joseph Ishaku - Nigeria2. Dr. Thomas Munthali - Malawi3. Ms. Chenai Mukumba - Zambia

5-6 mins Each

Moderator Mr. Dickson Jere

Recap/Way ForwardLusaka Declaration for the Africa-China Think Tanks Forum

Dr. Barassou Diawara - Zimbabwe 17:00

Closing Remarks PMRC Board Member Prof. Mutale Chanda 17:10

D AY T W O - 2 4 T H M AY , 2 0 1 9PROGRAMME


SPEECHES ON NEXT PAGES

KEY SPEECH BY HIS EXCELLENCY EDGAR CHAGWA LUNGU, PRESIDENT OF ZAMBIA

ON THE OCCASION OF THE AFRICA - CHINA THINK TANK FORUM

The Chinese Ambassador To Zambia, His Excellency Mr. Li Jie

The Honorable Minister Of Finance, Hon Margaret Mwanakatwe

Cabinet Ministers Present

Permanent Secretaries Present;

Cooperating Partners And Members Of The Diplomatic Corps Present;

The PMRC Executive Director, Mrs. Bernadette D Zulu

Senior Government Official’s Present

Distinguished Invited Keynote Speakers.

Distinguished Invited Speakers, Panelists And Delegates

The Media, Both Local And International

Distinguished Ladies And Gentlemen

Good Morning

May I Begin By Congratulating The Policy Monitoring And Research Centre (PMRC) And The Chinese Embassy, For Convening This Very Important Forum Dubbed: Africa- China Think Tanks Forum “Rebranding Africa As A Premiere Destinations”. This Landmark Event Could Not Have Come At A Better Time As This One, Considering The Critical Role That Think Tanks Now Play Towards Complimenting Government’s Socio-Economic Development Quest.

It Is My Sincere Hope That The Deliberations And Outcomes Of This Forum Will Lead To Enhanced Development Cooperation Between China And Africa In All Positive Aspects. More Importantly, It Will Also Complement The On-Going Processes Of Developing African Grown Development Paths In Addressing The Challenges That Our Continent Faces.

Ladies And Gentlemen;

For Four Consecutive Years From 2015 To 2018, Chinese Investments To Zambia Have Ranked Second Among African Countries. By The End Of 2018, China’s Direct Investment Stock In Zambia Accumulated To Over USD 3.6 Billion. Recent Statistics Indicate That Bilateral Trade Volume Between China And Zambia Has Increased Noticeably From USD 2.36 Billion In 2017 To USD 5.07 Billion In 2018. Our Bilateral And Economic Cooperation With China Remains Intact And Zambia Ranks Among The Leading Countries In The Implementation Of The Johannesburg Forum On China-Africa Cooperation Framework. In The Same Line, Chinese Investment Has Significantly Contributed To Zambia’s Industrialization Drive In Sectors Such As Mining, Manufacturing, Construction, Agriculture, Transportation And Tourism.

SPEECHES


As Zambia Continues On A Quest To Become A Manufacturing And Industrialization Hub, We Are Guaranteed That Due To Warm Relations With Countries Such As China, We Shall Be Able To Widen Our Export Market Of Non-Traditional Commodities.

Further, It Is My Hope To See The Emergence Of Joint Ventures Between Chinese Companies And Zambian Businesses, Particularly Enterprises That Will Lead To The Growth Of The Zambian Industry.

In Order To Strengthen Our Development Cooperation, I Recently Assigned My Minster Of Finance To China With A Team Of Technocrats To Discuss Zambia’s Contractual Agreements With Some Chinese Companies. In The Spirit Of Our All Weather Friend Tag, Zambia-China Relations Are Poised To Continue Getting Stronger. Having This, I Am Convinced Beyond Any Doubt That This Is The Same Story Shared By Several Other African Countries.

Ladies And Gentlemen,

May I Take This Time To Applaud The Strides That Our Partner China Has Made Over The Years. China Has Achieved Remarkable Development Progress In Recent Years, With An Unprecedented Reduction In Poverty, And I Commend Its Commitment To Sharing Its Successes With Africa, Through Different Initiatives And Namely The FOCAC As Well Belt And Road Initiative, Among Several Other Interventions.

The Astonishing Growth In The Last Few Decades Has Catapulted The Country To Become The World’s Second Largest Economy. Further, China Has Become The World’s Manufacturing Hub, Where The Secondary Sector (Comprising Industry And Construction) Represented The Largest Share Of GDP. China Has Experienced Uninterrupted Trade Surpluses Since 1993 And Total Trade Multiplied By Nearly 100 To USD 4.2 Trillion In Only Three Decades. China’s Economic Growth Has Soared In The Last Few Decades Mainly Due To The Country’s Increasing Integration Into The Global Economy And The Government’s Bold Support For Economic Activity.

Distinguished Ladies And Gentlemen,

Having Said This, It Suffices To Say That, Africa Too, Has Made Concerted Advances, And Hosts Some Of The World’s Most Dynamic Economies. It Is Important That Current And Future Development Cooperation Contributes To Peace, Security And To Building A “Community Of Shared Future For Mankind.

Distinguished Delegates, Ladies And Gentlemen,

We Are All Alive To Witness The Belt And Road Initiative Currently Being Implemented By China With Bearing On Global Trade. In Its First Five Years, The BRI Has Progressed Through An Evolutionary Process, And We Have Seen Its Conversion From An Initiative Solely Focused On Infrastructure To One, Which Now Also Incorporates Industry, Technology, And Cultural, Legal And Environmental Components. At The Same Time, The BRI Has Been Increasing Its Geographical Scope By Shifting Its Focus From The Historic Silk Road Region To The Entire Globe.

The Belt And Road Initiative Is A Global Landmark Venture That Is Poised To Massively Improve Trade Between China And Its Partners. Since Holding Its First Belt And Road Forum In 2017, The Plan’s Global Profile Has Risen Exponentially. I Am Aware That The Belt And Road Strategy Has Become An Umbrella For A Much Wider Programme Of Financial And Humanitarian Aid. It Is My Firm Hope And Belief That The BRI Will Be Strategically Aligned To Ensure That Africa Benefits Especially Under The Confines Of The Au Agenda 2063. Further, I Am Hopeful That There Will Be Synergies Between The BRI And The AU Continental Free Trade Area (AFCFTA).

Ladies And Gentlemen

Established 18 Years Ago, FOCAC Has Led In Spearheading International Cooperation With Africa And Has Become A Significant Marker Of South-To-South Cooperation. One Of The Major Deliverables Of The Last FOCAC Summit Held On

4Th September 2018; Was To Link The Belt And Road Initiative With The United Nations (UN) 2030 Agenda For Sustainable Development, The African Union’s Agenda 2063 And Individual Countries’ Development Plans To Explore New Territory For Africa’s Revival. This Therefore, Means That African Countries Are Positioned To Negotiate The Most Beneficial Trade And Economic Deals In Alignment With Their Individual Development Paths And Plans. The 2018 Summit Also Unveiled Two Key Outcome Documents, Namely; The Beijing Declaration And Beijing Action Plan That Outline The New Nature Of China-Africa Relations.

Major Initiatives Announced From The FOCAC Summit:

During The FOCAC Summit, 8 New Initiatives Were Announced Backed By A New Us$60 Billion Support To Africa For The Next 3 Years. These Are:

1. An Industrial Promotion Initiative.

2. An Infrastructure Connectivity Initiative.

3. A Trade Facilitation Initiative.

4. A Green Development Initiative.

5. A Capacity Building Initiative.

6. A Health Care Initiative.

7. A People-To-People Exchange Initiative.

8. A Peace And Security Initiative.


The Chinese Government Granted Zambia Thirty Million Dollars ($30 Million) For The Lusaka East Multi-Facility Economic Zone And Another $30 Million Interest Free Loan For Economic Cooperation To Facilitate The Reconstruction Of Mulungushi Conference Centre In Readiness For The African Union Heads Of State Summit In 2022.

I, Together With My Chinese Counterpart President Xi Further Facilitated The Signing Of Three Memoranda Of Understanding (MOUs). The MOUs Are On Economic And Technical Cooperation, Belt And Road Initiative And The Protocol For The Export Of Zambian Honey To China.

There Have Also Been Business Agreements Among Them The Assessments And Preparation Of The Bankable Feasibility Studies And Implementation Of Lusaka Mass Transit Railway Corridor Project, Which Will See The Construction Of A Transit Railway Link To Reduce Congestion On The Roads Of Lusaka.

In Recent Years, China-Africa People-To-People Exchanges Have Grown, But Still Lag Behind Economic And Trade Cooperation. China-Africa People-To-People Exchanges Should Pay Special Attention To The Needs Of Young Zambians Since They Account For A Large Percentage Of The Population And Face Challenges Such As Unemployment. FOCAC Presented A Platform To Discuss The Plight Of The Youth Unemployment And With Initiative Number Five (5) On Capacity Building, We Submit That More Innovation Hubs And Entrepreneur Centres Should Be Established To Promote Skills Development In The Country. Long-Term, Sustainable China-Africa Development Depends On Providing Socio-Economic Opportunities For The Young People From Both Sides And This Initiative Must Be Pursued Strongly By The Ministry Of Youth And Sports In Collaboration With The Ministry Of Labor.


The African Union Heads Of States And Governments Have Adopted And Are Pursuing Regional Integration As An Overarching Continental Development Strategy. The Vision At The Continental Level Is To Achieve An African Economic Community (AEC) As The Last Of Six Successive Stages That Involve The Strengthening Of Sectoral Cooperation And Establishment Of Regional Free Trade Areas (FTAS), A Continental Customs Union, A Common Market, And A Monetary And Economic Union.


The Creation Of A Single Continental Market For Goods And Services, With Free Movement Of Business People And Investments, Will Help BRIng Closer The Continental Customs Union And African Common Market. It Will Help Turn The 55 Single African Economies Into A More Coherent Large Market. Making Use Of Complementaries And Collectively Exploiting Africa’s Rich Reservoir Of Land And Natural Endowments, Creating Larger And More Viable Internal Economic Spaces Will Allow Africa’s Markets To Work More Efficiently. The Single Market Will Also Help Expand Intra-African Trade Through Better Harmonizing And Coordinating Trade Liberalization And Facilitating Regimes Among Recs And Throughout Africa.


As I Conclude, I Implore All African Countries To Consolidate A Collectively Owned Development Path And Pursue A Joint Strategy On How To Engage China Better. It Is A Matter Of Fact That China Remains Africa’s Number One (1) Trading Partner But The Question Remains; How Much More Are African Countries Also Looking To Strengthen Trade Within Themselves, In View Of This Massive Injection Of Funds From China? There Is, Therefore, Need For The Actualization Of The African Continental Free Trade Area To Enhance Trade And Economic Cooperation Among African Countries. This Will Place African Countries In A Better Position To Trade With China And The Rest Of The World.

There Is Also Need For Africa And Zambia In Particular, To Leverage On The Opportunity China Offers In Terms Of Technology Transfer And Skills Development. This Is Particularly Important For Employment Creation For The Majority Of The Youth In Africa. In This Regard, I Would Like To Take This Opportunity To Urge Chinese High-Tech Companies To Set Up Incubation Centres For Technology Development And Transfer To Zambia. My Government Is Providing An Enabling Environment For Chinese High-Tech Companies Set Up In Zambia.

Finally, My Government’s Focus In Our Relations With China, Will Be To Attract FDI, And Increase Exports To China. This Will Be Achieved By Improving The Competitiveness In The Domestic And Foreign Markets, Through Promoting The Uptake Of Quality Standards So That Local Products Can Compete Favourably Both On The Domestic And International Markets.

Let Me Now Urge All Of The Participants To This Forum To Actively Take Part In The Deliberations That Will Promote Africa’s Economic Cooperation With China And The Rest Of The World Through The Sharing Of Knowledge On Infrastructure, Economic Development And Trade Facilitation. The Forum Should Develop Practical Resolutions And Recommendations That Can Enhance The Africa China Relations As Well As The China-Zambia Relations.


It Is Now My Singular Honor And Pleasure To Declare The First Africa - China Think Tank Forum Officially Open. I Wish You All Fruitful Deliberations.

I Thank You.

His Excellency Edgar Chagwa Lungu, President Of Zambia

KEY NOTE SPEECH BY DR KENNETH DAVID KAUNDA- FIRST REPUBLICAN PRESIDENT OF THE REPUBLIC OF ZAMBIA

ON THE OCCASION OF THE AFRICA - China THINK TANK FORUM

His Excellency President Of The Republic Of Zambia Edgar Chagwa Lungu

Cabinet Ministers Present.

Your Excellency, The Chinese Ambassador To Zambia.

Permanent Secretaries Present

Cooperating Partners And Members Of The Diplomatic Corp

PMRC Executive Director Mrs. Bernadette Zulu

Senior Government Officials

Distinguished Guests

Ladies And Gentlemen.

I Was Honoured, When Asked To Speak On Behalf Of All Africans, To Advance The Pan African Agenda In Light Of Africa’s Relations, Specifically With China.

Through Fortune I Found Myself At The Helm Of The Liberation Movement Of My Country, And Later As The Head Of Government Of The Republic Of Zambia. So, I Speak To You From My Own Experience Of The Need To Keep The Pan African Dream Alive; It Has Been Long, But My Passion For Africa As A Continent, And Zambia As A Nation, Remains As Strong And Rooted As They Were Many Years Ago.

Although China- Africa Relations Got Off To A Slow Start, The Recent Past Has Seen An Increase In Sino-Africa Relations. The First African Country To Establish Diplomatic Relations With China Was Egypt, In May 1956, And By The Early 1960S- And Onwards, More African Countries, Including Zambia, Had Established Relations With China.

The 1990S Presented A Good Opportunity For China To Enhance Its Relations With Africa Because Of The Declining Involvement Of The Western Nations In Various African Countries. This Was Evident When President Jiang Zemin Paid A State Visit To Six African Countries, And Further Delivered An Address To The Organisation Of African Unity In 1996. The Main Aim Of These Efforts Was To Put Forward A Five Point Proposal For Long Term Development Which Would See A More Structured Approach To Cooperative Relationship Between China And African Countries, And This Resulted In The Creation Of The Forum On China- Africa Cooperation In Beijing In 2000.

China’s Support To Zambia Is Mostly Remembered In Monumental Projects Such As The Road, Railway And Pipeline To Re-Route Zambia’s Access To The Sea

OTHER SPEECHES


From Durban, Lobito Bay And Beira; To Dar-Es-Salaam. A Tarmac Road- The Great North Road Was Constructed, The Tanzania- Zambia Railways (TAZARA), A 2000 Kilometre Railway Line And A 2000 Kilometre Oil- Pipeline From The Port Of Dar-Es- Salaam To Ndola Known As The Tanzania- Zambia Mafuta (TAZAMA). Zambia’s Relationship With China Has Continued To Develop And Has Seen An Increase In Collaborative Support For A Shared Development Agenda. I Am Aware That Some Of The Recent Projects Supported By The Chinese Government Include Bridges, Airports, Hospitals, Stadiums, Hydro-Power Stations, Digital Migration, Housing Projects And Others.

Pan Africanism Is A Key Driver To Re-Branding Africa To Harness Its Resources For Sustainable Development On The Continent. The Concept Of This Gathering Is Progressive In Light Of The Need For Africa To Progressively Unite Towards Cooperative Relations For An Evidently Shared Future Between Africa, And China. History Has Demonstrated That Ideas, If Implemented Effectively, Have The Power To Transform Nations, Continents And The World At Large. If Sustainable Development Is To Be Achieved In Africa, There Is Need To Rebrand Africa, And Re-Establish That All Relations Must Be Based On Shared And Equitable Benefit For Human And Economic Development.

We Must Continuously Advance And Inculcate The Ideals Of Pan Africanism In All Africans, Both In The Continent And Around The World, Young And Old If We Are To Keep The Pan African Dream Alive, For All Africans.

I Thank You And God Bless You All.

Dr. Kenneth David JaundaFirst Republican

President Of The Republic Of Zambia

OTHER SPEECHESSPEECH BY THE BOARD CHAIRPERSON POLICY MONITORING AND RESEARCH CENTRE (PMRC) HON MARGARET MWANAKATWE, MINISTER OF FINANCE

ON THE OCCASION OF THE AFRICA - CHINA THINK TANK FORUM

The President Of The Republic Of Zambia, His Excellency Mr. Edgar Chagwa Lungu

The First Republican President, His Excellency Dr Kenneth Kaunda

Cabinet Ministers Present

The Chinese Ambassador To Zambia, His Excellency Mr. Li Jie

Permanent Secretaries Present


The PMRC Executive Director, Mrs. Bernadette D Zulu

Senior Government Official’s Present

Distinguished Invited Keynote Speakers.

Distinguished Invited Speakers, Panelists And Delegates

The Media, Both Local And International


Good Morning

To Our International Delegates, “Welcome To Zambia”

May I Begin By Welcoming You All To This Very Significant Event Dubbed The Africa-China Think-Tanks Forum Under The Theme “Africa-China Economic Agenda -Opportunities For The Belt And Road Initiative And FOCAC” And Sub-Theme “Rebranding Africa As A Premiere Destination”. This Forum Is Being Jointly Hosted By The Policy Monitoring And Research Centre (PMRC) And The Embassy Of The Peoples Republic Of China In Zambia To Pioneer A Strong Position Of Enhancing The Networks Of African Think Tanks.

The Objectives Of The Forum Are To Promote Africa’s Global Economic Cooperation Through Sharing Knowledge And Research Objectives On Infrastructure, Economic Development, Trade Facilitation And Initiating The Process To Establish Global Think Tanks Network Committed To Building Sustainable Cooperation With China And The Rest Of The World.

Your Excellencies And Distinguished Delegates, Ladies And Gentlemen

The African Union Adopted Agenda 2063 As A Roadmap For Continental Development By Aligning Thinking From Across The Continent And Distilling The Vision In A Set Of Aspirations. A Snapshot Of The 7 Aspirations Of Vision 2063 Includes;

1. A Prosperous Africa Based On Inclusive Growth And Sustainable Development,


2. An Integrated Continent, Politically United And Based On The Ideals Of Pan-Africanism And The Vision Of Africa’s Renaissance,

3. An Africa Of Good Governance, Democracy, Respect For Human Rights, Justice And The Rule Of Law,

4. A Peaceful And Secure Africa,

5. An Africa With A Strong Cultural Identity, Common Heritage, Shared Values And Ethics

6. An Africa Whose Development Is People-Driven, Relying On The Potential Of African People, Especially Its Women And Youth, And Caring For Children

7. Africa As A Strong, United And Influential Global Player And Partner

Suffice To Say, Africa’s General Economic Performance Continues To Improve Despite The Myriad Of Challenges, But It Remains Insufficient To Address The Structural Challenges Faced By The Continent. The Desire To Envision A Long-Term 50 Year Development Trajectory For Africa Is Vital As Africa Continues To Adapt Its Development Agenda To Global And Regional Structural Transformations. In Order To Achieve This, Nations Would Have To Rely On The Strategic And Influential Role Of Public Policy Think Tanks. Africa Requires Increased Unity Of Purpose Which Would Make It A Global Power To Be Reckoned With, Capable Of Rallying Support Around Its Own Common Agenda; And Emerging As The Number One Development And Investment Destination In Agri-Business, Infrastructure Development, Health And Education As Well As The Value Addition In Africa Vast Commodities.

Your Excellencies,


May I Now Provide A Synopsis Of The Current State Of Africa-China Trade And Cooperation.

China Has Been Africa’s Largest Trading Partner For Nine Years In A Row With Major Cooperation Programs Boosting Bilateral Trade. China-Africa Bilateral Trade Has Been Steadily Increasing For The Past 16 Years. However, Weak Commodity Prices Since 2014 Have Greatly Impacted The Value Of African Exports To China, Even While Chinese Exports To Africa Have Remained Steady. May I Categorically State That Africa Remains As A Continent Of Promise And The Time Has Come To Harness The Massive Human And Natural Resource, For The Economic Emancipation Of Africa.

China

According To Statistics From The General Administration Of Customs Of China, In 2018, China’S Total Import And Export Volume With Africa Was US$ 204.19 Billion, A Year-On-Year Increase Of 19.7%, Exceeding The Overall Growth Rate Of Foreign Trade In The Same Period By 7.1 Percentage Points. Among These, China’s Exports To Africa Were US$ 104.91 Billion, Up 10.8% And China’s Imports From Africa Were US$ 99.28 Billion, Up 30.8%; The Surplus Was US$ 5.63 Billion, Down 70.0% Year On Year. In 2018, The Growth Rate Of China’s Trade With Africa Was The Highest In The World. The Import Growth Rate Was Also The Highest In The World, 15 Percentage Points Higher Than Import Growth Rate Of Foreign Trade In The Same Period

Africa – Economic Performance

Africa’s General Economic Performance Continues To Improve, But It Remains Insufficient To Address The Structural Challenges. Africa’s General Economic Performance Continues To Recover And GDP Growth Is Projected To Accelerate To 4.0 Percent In 2019 And 4.1 Percent In 2020. But Improved Macroeconomic And Employment Outcomes Require Industry To Lead Growth.

Allow Me To Quote From The AFDB Report Africa Economic Outlook 2019

Significantly, The Report Identifies Five Key Trade Policy Actions That Could Potentially Bring Africa’s Total Gains To 4.5 Percent Of Its GDP, Or U$ 134 Billion A Year:

A) Eliminating All Applied Bilateral Tariffs In Africa;

B) Keeping Rules Of Origin Simple, Flexible, And Transparent;

C) Removing All Non-Tariff Barriers On Goods And Services;

D) Implementing The World Trade Organization’s Trade Facilitation Agreement To Reduce Cross Border Time And Transaction Costs Tied To Nontariff Measures And ;

E) Negotiating With Other Developing Countries To Reduce Their Tariffs And Nontariff Barriers, By 50%.

Your Excellences,


Since Initiating Market Reforms In 1978, China Has Shifted From A Centrally-Planned To A More Market-Based Economy And Has Experienced Rapid Economic And Social Development. GDP Growth Has Averaged Nearly 10% A Year—The Fastest Sustained Expansion By A Major Economy In History—And More Than 850 Million People Have Lifted Themselves Out Of Poverty. China Reached All The Millennium Development Goals (MDGS) By 2015 And Made A Major Contribution To The Achievement Of The MDGs Globally. Although China’s GDP Growth Has Gradually Slowed Since 2012, As Needed For A Transition To More Balanced And Sustainable Growth, It Is Still Relatively High By Current Global Standards. With A Population Of 1.3 Billion, China Is The World’s Second Largest Economy And The Largest If Measured In Purchasing Price Parity Terms. China Has Been The Largest Single Contributor To World Growth Since The Global Financial Crisis Of 2008.

Your Excellences,


As We Have Gathered Today For This Very Important Undertaking, It Is Very Critical That We Reflect On The Critical Roles That Think-Tanks Should Play In Ensuring That The Africa – China Partnership Doesn’t Leave Anyone Behind. It Is Very Critical That Africa Pursues A Development Path That Fits Into Its National Conditions Anchored On The AU Agenda 2063 And Deliver Key Milestones Such As The Continental Free Trade Area (CFTA) Among Others. Further, We Should Also Strategically Align Programmes And Infrastructure Plans To Complement The One Belt One Road Initiative; That Is Poised To Also Benefit The Continent And Enhance Trade.

Further, Africa Needs To Interrogate The Several Challenges That Our People Face And Henceforth Ensure That This Consortium Of Think Tanks Leads The Way With Evidence Based Solutions That Will Bring About An Improvement In The Lives Of Millions Across Africa. We Have To Develop Solutions For:

A) Trade Barriers Across The Continent

B) Inadequate Financing; Needed For Infrastructure Investments

C) Prevailing Poverty Situation In The Continent

D) Climate Change

E) The Issue Of Women And Youth Empowerment, Among Several Challenges


In Conclusion,


We Need To Anchor On The Realization Of Building Africa- China Community With A Shared Future To Assume Our Joint Responsibility And Pursue A Win-Win Cooperation. We Need To Mutually Uphold The Common Interests Of Africa And China, And Concurrently Implement Both The Belt And Road Initiative Vis-A-Vis The African AU Agenda 2063 For Sustainable Development Programmes. As We Begin These Deliberations, Let Us Base At The Core Of Our Discussions That; China, The World’s Largest Developing Country, And Africa, The Continent With The Largest Number Of Developing Countries, Have Long Formed A Community With A Shared Future. Indeed, We Share A Common Stake. China Will Work With Africa To Achieve Our Shared Goal Of Building A Closer Africa-China Community With A Shared Future And Turn It Into A Pacesetter For Building Such A Community For Mankind. Permit Me To Quote His Excellency President Xi Xiping Who Said; “No Matter How The International Situation Changes And To What Stage China Develops, China Will, As Always, Stand With All Developing Countries, Including African Countries, And Be A Sincere Friend And A Reliable Partner Of Africa.”

Nelson Mandela Once Said; “I Dream Of The Realization Of The Unity Of Africa, Whereby Its Leaders Combine In Their Efforts To Solve The Problems Of This Continent.”


Today We Are Living In This Reality, As Africa Is United Towards Common Interests That Will Benefit Our People And Also Ensure A Shared Future With China.

I Thank You All

And Wishing You All Very Open And Objective Deliberation

Hon Margaret MwanakatweMinister Of Finance

PMRC Board Chairman

AMBASSADOR LI’S KEYNOTE SPEECH DELIVERED AT THE CHINA-AFRICA THINK TANK FORUM: OPPORTUNITIES FOR BRI AND FOCAC

Your Excellency Dr Kenneth David Kaunda, First President Of The Republic Of Zambia,

Your Excellency Mr. Rupiah Banda, Fourth President Of The Republic Of Zambia And Executive President Of The Zambia China Friendship Association,

Your Honourable Ms. Margaret Mwanakatwe, Minister Of Finance,

Your Honourable Mr. Alexander Chiteme, Minister Of National Development And Planning,

Mrs. Bernadette Deka Zulu, Executive Director Of The Policy Monitoring And Research Centre (PMRC)

Professors And Scholars From China And African Countries,

Friends From The Media,

Distinguished Guests,


Good Morning!

The Chinese Embassy In Zambia Is Very Pleased To Co-Host The China-Africa Think Tank Forum With The Zambia’s Well-Known Think Tank PMRC. The BRI And FOCAC Are Now Becoming The Focus Of Global Attention And They Have Also Become Two Major Platforms For China-Africa And China-Zambia Practical Cooperation. China Has Signed MOUs With More Than 40 African Countries Including Zambia On The Joint-Construction Of The BRI. Last Month, The Second Belt And Road Forum For International Cooperation (BRF) Was Successfully Held In Beijing. World Leaders And Participants Reached Broad Consensus On High-Quality Cooperation Of The BRI. Next Month, A Conference On The Implementation Of The Outcomes Of FOCAC Beijing Summit Will Be Held In China To Follow Up With The Eight Major Initiatives. In This Regard, The Convening Of Today’s Forum Is At The Right Time.

The Forum Indeed Reflects The Importance That Zambia Attaches To The Development Of China-Zambia, China-Africa Relations And The Promotion Of Practical Cooperation. On Behalf Of The Chinese Embassy In Zambia, I Sincerely Thank You All For Coming.


The World Today Is Undergoing Major Changes Unseen In The Past Century. Economic Globalization Suffers Setbacks; World Economic Growth Remains Sluggish; And The International Situation Is Exposed To Prominent Unstable Factors. Faced With Profound And Huge Changes, Many People Feel Perplexed,

OTHER SPEECHES


And Some Countries Are Looking For New Paths For Development And Are Exploring The Way Of Global Economic Governance.

Having An Insight Into The Overall International Situation, His Excellency President Xi Jinping Of China, Put Forward The Belt And Road Initiative. It Is A Chinese Approach To Meet Common Challenges And Improve Global Economic Governance, With The Goal Of Pushing All Countries To Strengthen Synergies Between Their Development Strategies, Shed Light On Connectivity, Deepen Practical Cooperation And Achieve Common Development. The BRI Not Only Catalyzes China’s Reform And Opening Up, But Also Takes A Clear-Cut Stand In Upholding The Main Theme Of Building An Open World Economy.

Taking This Opportunity, I Would Like To Share With You Some Of Our Ideas.

First, The Principles Of Extensive Consultation, Joint Contribution And Shared Benefits Are In Line With Trend Of The Times. Maintaining The Common Interest And Destinies Of All Countries, Having Adequate Communication And Consultation On International Matters Are The Only Ways To Achieve Peace And Development In Today’s World. We Should Pull Together In Times Of Difficulty And Achieve Win-Win Results In The Face Of Opportunities.

President Xi Jinping Pointed Out That “High-Quality Development” Is The Goal And Direction Of The BRI Development. High Quality Means To Combine The Advantages Of All Parties Into A Joint Force Through Bilateral Cooperation, Tripartite Cooperation And Multilateral Cooperation. It Means To Adhere To The Principals Of Openness, Integrity And Promote Green Infrastructure Construction, Green Investment, And Green Finance. It Means To Ensure Economic, Social, Financial And Environmental Sustainability Of Projects Which Are Also In Line With International Rules And Standards. China Will Remain A Close Friend, Reliable Partner And Good Brother Of Africa.

President Xi Jinping Emphasized That China Follows A Five-No Approach In Our Relations With Africa: No Interference In African Countries’ Pursuit Of Development Paths That Fit Their National Conditions; No Interference In African Countries’ Internal Affairs; No Imposition Of Our Will On African Countries; No Attachment Of Political Strings To Assistance To Africa; And No Seeking Of Selfish Political Gains In Investment And Financing Cooperation With Africa. The BRI And FOCAC Are Not “Traps” But “Ties”. In China-Africa Cooperation, China Is Willing To Discuss With African Countries To Achieve Mutual Benefit And Win-Win Results.

Second, Connectivity Targets Meet The Needs Of All Countries And Regional Development Strategies. We Need To Develop High-Quality, Sustainable, Resilient, Affordable, Inclusive And Accessible Infrastructure Projects, As Infrastructure Plays As The Bedrock Of Connectivity. We Need To Promote Trade And Investment Liberalization And Facilitation, Say No To Protectionism. We Need To Seize Opportunities Created By Digital, Networked And Smart Development And Foster New Growth Drivers And Explore New Development Pathway. We Need To Build Bridges For Exchanges And Mutual Learning Among Different Cultures In Order To Facilitate Multi-Faceted People-To-People Exchanges.

African Integration Is A Long-Term Expectation And Desire Of African Countries And People. It Is Necessary To Realize The Interconnection Of Transportation, Energy And Communication, Promote Regional Industrial Trade And Investment Cooperation, And Integrate Into The Global Supply Chain, Industrial Chain And Value Chain, Which Are Of Vital Importance To Africa’s Development.

Third, During The FOCAC Beijing Summit, Nearly 150 Cooperation Agreements Were Signed Between China And Africa, And China Provided US$60 Billion Of Financial Support To Africa With “Eight Initiatives”. At The 2nd BRF, The Chinese Side Has Put Together A List Of 283 Concrete Deliverables Reached By The Participating Parties. The Business Forum Is The Innovative Arrangement Of The 2Nd BRF And The Usual Practice Of The FOCAC. In Addition, Local Cooperation Thematic Forums Were Also Held For The First Time During The 2Nd BRF This Year, Where Chinese Local Governments Conducted A Series Of Practical Cooperation With Local Governments And Enterprises Of Relevant Countries, Including Zambia. The First China Africa Economic And Trade Expo Will Be Held In Changsha, China Next Month. Senior Officials And Business Representative Will Participate InThis Event.


Zambia Is A Natural Extension Of The Belt And Road Initiative, It Is Also An Important Participant In The Forum Of China-Africa Cooperation. Under The Above Two Frameworks, The Chinese Side Has Always Insisted The Principles Of Sincerity, Practical Results, Affinity And Good Faith In The Cooperation Between China And Zambia, And Jointly Promote Zambia’s National Development And People’s Livelihood.

In 2018, The China-Zambia Bilateral Trade Volume Has Reached 5 Billion US Dollars For The First Time With A Year-On-Year Growth Of 33.9%. Zambia Has A Trade Surplus Of More Than 3 Billion US Dollars. China’s Direct Investment In Zambia Maintained A Constant Growth With An Increase Of 327 Million US Dollars, Once Again Ranking Second Among African Countries.

Looking Ahead, We Have Strong Expectations To Deepen Our Cooperation Under The Two Frameworks:

We Need To Further Enhance Mutual Understanding And Trust. Let Us Seek Common Development, Common Prosperity And Common Progress Among Peoples Of Different Regions, Different Historical And Cultural Backgrounds, Different Resources And Market Endowments. China And Zambia Should Continue To Carry Forward Traditional Friendship, Continuously Consolidate Political Mutual Trust, Strengthen Mutual Support On International And Regional Issues, So As To Provide A More Solid Political And Social Foundation For Cooperation.

We Need To Further Give Full Play To Each Other’s Respective Advantages And Potentials. Zambia Is Located In The Heart Of The Southern African Continent, With Huge Potential For Infrastructure Connectivity. It Is Rich In Mineral, Agricultural And Forest Resources And Its Human Resources Are Second To None Among Developing Countries. In The Coming 15 Years, China’s Import Of Goods And Services Are Expected To Exceed 30 Trillion US Dollars And 10 Trillion USD Dollars Respectively. These Will Bring New Opportunities For Cooperation Between Chinese And Zambian Enterprises. I Would Like To Mention Here That China Does Not Pursue A Trade Balance With Zambia, But Stands Ready To Better Support Zambia’s Economic And Social Development And People’s Livelihood Through Enhancing Bilateral Trade. For Example, Last Year China And Zambia Signed An Agreement On The Export Of Zambian Honey To China. As Long As It Is The Quality Goods Of Zambia, China Is Willing To Buy.

We Need To Further Build Cooperative Flagship Projects. At Present, A Number Of Key Projects Including CNMC South-East Ore Body, Zambia-Jiangxi Multi Facility Economic Zone, Kafulafuta Dam And Water Supply, Village Satellite Tv, Smart Zambia And Levy Mwanawasa Hospital Have Been Making Remarkable Progress. They Have Provided Strong Support For Zambia To Accelerate Its Industrialization Process And The Implementation Of 7NDP. In The Future, Based On The Existing Sound Cooperation, China And Zambia May, In Accordance With The Requirements Of The FOCAC Beijing Summit Outcomes, Promote A Number Of Key Projects To Accelerate Economic And Social Development And Improve The Living Standards Of The Zambian People.

We Need To Further Promote Exchanges And Mutual Learning. At The Conference On Dialogue Of Asian Civilizations Held Recently In Beijing, President Xi Jinping Pointed Out That: “Diversity Spurs Interaction Among Civilizations, Which In Turn Promotes Mutual Learning And Their Further Development.” We Are Willing To Work With Zambia To Continuously Expand Cooperation In The Fields Of Culture, Education, Tourism And Health And Maintain Close Exchanges Among Parliaments, Political Parties, Think Tanks, The Media And Civil Societies, To Lay A Foundation For Mutual Understanding And To Bridge Mutual Learning.


Great Visions Can Be Realized Only Through Actions. China Is Ready To Work With Zambia And Other African Countries To Synergize The Construction Of The BRI, Implement The FOCAC Beijing Summit Along With Zambia’s Seventh National Development Plan And The AU’S 2063 Agenda, And Push Forward China-Africa Practical Cooperation.

I Wish The Forum A Complete Success.

Thank You!

Ambassador Li Jie Chinese Ambassador


AFRICA-CHINA THINK TANKS FORUM SPEECH

PMRC EXECUTIVE DIRECTOR MRS BERNADETTE DEKA ZULU

The First Republican President, His Excellency Dr Kenneth Kaunda

The Fourth Republican President, His Excellency Mr Rupiah Bwezani Banda

PMRC Board Chairman Hon. Margaret Mwanakatwe, Mp.

Minister Of National Development Planning Hon. Alexander Chiteme, Mp.

Your Excellency, The Chinese Ambassador To Zambia.

Permanent Secretaries Present.


Senior Government Officials

Distinguished Guests

Ladies And Gentlemen.

I Sincerely Welcome You All To The 2019 Africa China Think Tanks Forum Whose Main Theme Is “Africa-China Economic Development Agenda- Opportunities For The Belt And Road Initiative And FOCAC” Aimed At “Rebranding Africa As A Premiere Destination” For Investment, Trade And Economic Development.

This Forum Presents An Opportunity For Think Tanks From Africa And China To Interact And Brainstorm On The Appropriate Course Of Direction That Will Guarantee A Successful Economic Trajectory For The People Of Africa And China.

Your Excellency

Allow Me To State That Our Expectations As An Institution Regarding The Outcomes Of This Forum With Reference To The Main Theme Which Is Dealing With Opportunities For The Belt And Road Initiative And FOCAC Are Hinged On The Aspirations Of Africans To Attain A Prosperous Africa Based On Inclusive Growth And Sustainable Development Without Forgetting The Ideals Of Pan-Africanism And The Vision Of Africa’s Renaissance.

The Belt And Road Initiative, As An Initiative Of The People’s Republic Of China, Offers Great Opportunities For Infrastructure Development And Investment Opportunities In Over Sixty Countries Across Europe, Asia And Africa. To This Effect,

Therefore ,A Forum Such As This One Presents A Grand Opportunity For Africans And Chinese To Agree On How Such Resources Could Be Exploited For The Mutual Benefit Of The People In Africa And China Who Share Similar Experiences Of Poverty And Development.

OTHER SPEECHESTo Address Our Expectations Regarding The Sub-Theme Dealing With The Rebranding Of Africa As A Premiere Destination For Investment And Trade, We Note That Africa Has For A Long Time Been Misrepresented With Dominant Images Largely Depicting Africa As Undeveloped, War Ravaged, Burdened With Disease And With Governence Systems Riddled With Corruption. The Commerce And Industry Aspects Of Africa Are Rarely Advanced In The International Media Space.

On The Contrary Africa Presents A Lot More Opportunities For Global Investment Owing To Its Unique Advantages Which Among Others Include The Following;

1. 1. Booming Internal Markets, With Africa’s Gross Domestic Product (Gdp) Per Capita Growth Rate Consistently Outperforming The Global Average For Years.

2. A Growing Number Of Global Companies Considering Africa As An Outsourcing Location Largely Driven By Marginal Infrastructure Improvements, Lower Bandwidth Costs, Lower Labour Costs And The Availability Of Resources Are Key Drivers In This Trend. Improved Manufacturing Capacity And Government Policies And Support Being The Other Factors.

3. Young Vibrant Population Ready To Harness This Demographic Dividend; Most Of Whom Have A Heightened Interest In Consumer Goods, Are Brand-Conscious And Demand The Highest Quality, With A Greater Propensity Towards Online Shopping And The Use Of Advanced Technology.

To This Effect, Africa As A Continent Should Be More Determined Than Ever Before To Monitor Its International Reputation And Develop The Right Strategy For Improvement. We Need To Rebrand Africa With A Sense Of Urgency And Passion That Signifies Belonging To A Rich Continent! This Forum Will Contribute To Making Resolutions On How Africa Should Rebrand Itself. Africa’s Branding Should Contribute Materially To Solidifying, Combining, Projecting, And Driving The Positive Elements That Are Bringing About The Current Optimistic Outlook And Attract The Much-Needed Foreign Direct Investment.

Your Excellency,

Allow Me To State That PMRC Has Since Inception Been Offering Guidance And Policy Support To Government, Ministries, Parliament And Government Agencies Based On High Quality Evidence Based Research. The Track Record Of Impact Of PMRC Works Speaks Volumes And Has Resulted In Implementation Of Important Policy Interventions For Economic And Social Development. PMRC Has Set The Framework For Success By Walking The Talk In The Agriculture, Energy And Socio-Economic Sectors Through The Following Interventions;

1. We Have Conducted Sensitization Programmes On The Seventh National Development Plan, And Its Implementation, Which Is An Ongoing Programme.

2. Regular Economic Review And Performance Updates To The Nation In Consultation With The Ministries Of Finance, Ministry Of Commerce And The Ministry Of National Development Planning.

3. Energy Sector Policy Reform Dating Back From 2014 To 2019 And Still Going.

Your Excellencies, Honorable Ministers And Distinguished Guests, Allow Me To State That PMRC Proudly Sits At The Pedestal Of Energy Policy Reform That Has Provided Valuable Evidence And Insight For Government And The Ministry Of Energy While Carefully Taking Cognizance Of The Plight Of The Poor In Our Country. We Have Been Advocating For A Renewable Energy Consolidated Strategy Among Others To Lead Towards The Promotion Of A Rich Energy Mix For Zambia.

4. Agriculture Policy Analysis And Valuable Guidance For Government Engagement In The Farmer Input Support Programme, Food Reserve Agency And Policy Options To Lead To Towards Economic Diversification.

5. Situational Analysis And Performance Of Parastatals To Inform Government Decisions Aimed At Promoting Principles Of Corporate Governance, Accountability And Transparency. There Is No Doubt That Parastatals Play A Critical Role In Revenue Collection And Their Performance Is A Vital Life For Domestic Resource Mobilisation. PMRC Will Continue To Review Audit Processes To Ensure Progress And Corrective Policy Formulation.


6. Structural And Legal Reforms To Maximise Trade, Tourism And Economic Development. PMRC Has Been A Permanent Voice In Public Sector Policy Reform Aimed At Ensuring Accountability And Good Governance In Government Through Revision To Legislation Such As The Public Finance And Management Act And Other Measures Targeted At Enhancing Domestic Resource Mobilisation.

Your Excellencies And Honorable Ministers, Despite The Myriad Of Challenges Faced By PMRC Which Include, A Lack Of Transport And Office Space We Have Demonstrated Ability, A Sense Of Patriotism And Strong Desire To Make Zambia Succeed. In Order To Enhance And Expand Capacity Of PMRC Operations And Broaden The Coverage And Scope Of The Institution To Support Government Policy Direction We Earnestly Appeal To Our Line Ministry, The Ministry Of National Development Planning To Support PMRC Work. Honorable Minister We Submit With Confidence That Our Request Will Meet Your Utmost Consideration. Your Excellencies, Honarable Ministers And Distinguished Guests, We Are In This Together

Your Excellencies, Honarable Ministers And Distinguished Guests, Unemployment Remains As One Of Major Challenges That Youths Face Throughout The African Continent. Sir, PMRC Has Been Working Tirelessly To Gather Practical Evidence And Generate Key Reform Proposals That Focus On Women And Youth Skills Development, Sustainable Business Models And Employments Creation. We Have Further Been Working On Strategies That Would Lead To The Enhancement And Efficiency Of Industrial Clusters As Well As Multi Facility Economic Zones. We Believe These Are Viable Models That Provide Huge Opportunities For Production, Manufacturing And Enhanced Trade Among The Women And Youth Of Africa. To This Effect, We Further Uphold That Entry And Any Tariffs Requirement To Operate In These Economic Zones And Industrial Clusters, Should Be Reviewed And Relaxed To Ensure A Massive Consortium Of Productive Activities Taking Place In These Economic Zones.

In Conclusion, I Would Like To Give Special Thanks To All Our Partners That Have Helped To Make This Event Possible And The Government Of The Republic Of Zambia Through Its Support Through The Ministries Finance, Commerce And Trade, Foreign Affairs And National Development Planning. The Chinese Embassy In Zambia Has Been An All-Weather Friend Of PMRC And We Are Happy To Partner In Our Efforts To Make This Event A Success.

Special Thanks Especially Goes To All National And International Delegates And Participants Who Spared Time From Your Busy Schedules To Be Here.

Allow Me To Urge Everyone To Take A Leading Role In The Different Discussions As Much As Possible Through The Various Presentations And ‘Panels Discussion’ As We Construct Resolutions That Will Effectively Actualize Benefits Of The Belt And Road Initiative (BRI) Vision Together With Resolutions Aimed At Making Africa The Most Preferred Global Investment Hub And An Envy Of The World.

Yes, Africa Is Alive As A Premiere Investment Destination For The World And Together We Will Succeed.

I Thank You All.

Mrs Bernadette Deka Zulu PMRC Executive Director

LUSAKA DECLARATION ON THE NEXT PAGES


THE LUSAKA (AFRICA – CHINA THINK TANKS) DECLARATIONTHE CONSENSUS ON AFRICA-CHINA COOPERATION; OUTCOME DECLARATION ARISING OUT OF DELIBERATIONS OF THE AFRICA-CHINA THINK TANKS FORUM HELD ON 23-24 MAY 2019

OUTCOME STATEMENT The Policy Monitoring Research Center (PMRC) in collaboration with the Embassy of

the People’s Republic of China in the Republic of Zambia hosted the Africa-China Think-

Tanks Forum from 23rd to 24thMay 2019 at the Intercontinental Hotel, Lusaka,Zambia.

A. The Forum was graced by:

1. His Excellency, the President of the Republic of Zambia, Mr. Edgar Chagwa

Lungu, through his delegated representative, Hon Alexander Chiteme (Minister

of National Development Planning)

2. The First President of the Republic of Zambia, Dr Kenneth Kaunda

3. The Fourth President of the Republic of Zambia, Mr. Rupiah Banda

4. The PMRC Board Chairman / Minister of Finance, Hon Margaret Mwanakatwe

5. His Excellency, The Ambassador of the People’s Republic of China, to Zambia;

H.E Li Jie

B. The Forum was attended by delegates from the following countries:

•• Botswana

•• China

•• Kenya

•• Malawi

•• Namibia

•• Nigeria

•• Sierra Leone

•• South Africa

•• Uganda

•• Zambia

•• Zimbabwe

C. It was highlighted that there are at least 3 major reasons why Africa’s engagement

with China is extremely important.

1. It is projected that by 2025, Peoples Republic of China would likely be the biggest

economy in the world;

2. Peoples Republic of China is currently the biggest investor in Africa; and

3. Peoples Republic of China is currently the biggest creditor to African countries.

D. What then is the key role of Think Tanks in Africa’s development?

Apart from analyzing, critiquing and promoting alternative policy options and

strategic directions for the continent, African Think Tanks should be agenda

setters that provide navigational tools for the key development priorities of the

continent in view of the African Union (AU) Agenda 2063, the United Nations 2030

Agenda for Sustainable Development and, in particular, the African Continental

Free Trade Area (AfCFTA).


The successful implementation of Agendas 2063 and 2030 as well as the national and

regional development plans can be supported by the Think Tanks and underpinned

by evidenced-based policymaking, sound monitoring and evaluation tools, effective

advocacy and well-target capacity building interventions.

E. Delegates/participants at AFRICA-CHINA THINK TANKS FORUM (ACTTF):

1. Took cognizance of the outcomes of previous China - Africa Think Tanks Forums,

since 2011 when the inaugural meeting of the Forum was held;

2. Noted with satisfaction outcomes of the 2018 Forum for China-Africa Cooperation

(FOCAC) Summit held in Beijing where the President of the People’s Republic of

China, His Excellency Xi JinPing and African leaders, resolved to further deepen

the bonds of solidarity and friendship for the mutual benefit of the peoples of

the Peoples Republic of China and peoples of Africa;

3. Enunciated faith in the Belt and Road Initiative (BRI) as a vision of a more inclusive

and humane paradigm of globalization which will ensure no one is left behind;

4. Reiterated faith in the capacity of African countries and the People’s Republic

of China to address challenges to their cooperation within the framework of the

FOCAC, a shining example of mutually advantageous South-South Cooperation;

5. Exhorted Think Tanks in the People’s Republic of China and Africa to explore

modalities and strategies to strengthen people to people cooperation as well

as offer practical and realizable solutions to their respective challenges for

an enhanced China-Africa Cooperation.

F. WHAT ARE THE IMMEDIATE ACTION ITEMS:

There is pressing need for African Think Tanks to immediately convene, reflect

and develop an African strategy for engaging Peoples Republic of China. This

should clearly highlight key strategies of what Africa needs from Peoples

Republic of China and how it can be implemented.

There needs to be a strategy to conduct a mapping of Think Tanks in Africa to

enhance networking and reduce duplication of works.

There is urgent need in the medium term for Think Tanks to cooperate with

Chinese Think Tanks by leveraging on the BRI and identifying opportunities for

the Continent.

African Think Tanks should spur “Development Agenda” setting on topics

relevant to Africa (namely AU & UN agendas as well as Regional Economic

Communities’ and National Development Plans).

Think Tanks are called upon to spearhead the promotion of regional integration

for Africa’s development through the pan-African spirit.

There is urgent need for key funders and supporters of Think Tanks to be

identified for the immediate setting-up of an African Think Tanks support facility.

There is need to work towards demystification of the myths surrounding the

China-African relations through evidence-based research.

Peoples Republic of China needs to be encouraged to build universities across

Africa to guarantee knowledge and skills transfer.

Solemnly Done at Lusaka, Republic of Zambia; Friday 24 May 2019


LINKS OF THE PRESENTATIONS

Opportunities and Challenges of Bilateral and Multilateral Relations Between Africa and other Countries: A Case of Africa China Relations

By. Dr. Liu Haifang Peking University China

Impact of the US-China Trade War on Africa’s Development Agenda

By: Mr. Bhaso Ndzendze Research Director: Centre for Africa-China Studies (UJ)Lecturer: Department of Politics and International Relations (UJ)

Leveraging the BRI for African Manufacturing and Industrialization

Opportunities for the AFCFTAby: Dr. Pamela Nakamba-Kabaso

Role of African Think Tanks in spearheading the African Development Agenda

By: Mr. Barassou DiawaraKnowledge Management Expert & Coordinator of the Africa Think Tank NetworkKnowledge and Learning Department

Is Africa On The Rise Or Falling? What Economic Opportunities & Challenges exist and how to overcome these?

By: Mr. Joab Okanda Advisor on Development Financing and Inequality Kenya

China-Africa Opportunities of the Belt and Road Initiative (BRI) , Forum on China Africa Cooperation (FOCAC) and Bear its Full Potential

By: Mr. Cao MinHead of Chinese Segment, Standard Bank Group

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https://pmrczambia.com/wp-content/uploads/2019/08/Opportunities-and-Challenges-of-Bilateral-and-Multilateral-Relations-Between-Africa-and-other-Countries-A-Case-of-Africa-China-Relations-compressed.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/Opportunities-and-Challenges-of-Bilateral-and-Multilateral-Relations-Between-Africa-and-other-Countries-A-Case-of-Africa-China-Relations-compressed.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/Impact-of-the-US-China-Trade-War-on-Africa’s-Development-Agenda-.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/Leveraging-the-BRI-for-African-Manufacturing-and-Industrialization-ZIPAR.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/Role-of-African-Think-Tanks-in-spearheading-the-African-Development-Agenda-2.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/IS-AFRICA-ON-THE-RISE-OR-FALLING-2.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/IS-AFRICA-ON-THE-RISE-OR-FALLING-2.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/China-China-Opportunities-of-the-Belt-Road-Initiative-BRI-Forum-on-China-Africa-Cooperation-FOCAC-and-bear-its-Full-Potential.pdf

https://pmrczambia.com/wp-content/uploads/2019/08/China-China-Opportunities-of-the-Belt-Road-Initiative-BRI-Forum-on-China-Africa-Cooperation-FOCAC-and-bear-its-Full-Potential.pdf

Unlocking Zambia's PotentialCorrespondence on this Report can be sent to:[email protected]

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JULY 2019

AFRICA-CHINA THINK TANKS FORUM REPORT

Sub-Theme: Re-Branding Africa as a Premiere Destination

AFRICA-CHINA ECONOMIC DEVELOPMENT AGENDA - OPPORTUNITIES FOR BELT AND ROAD INITIATIVE AND FOCAC

AFRICA-CHINA THINK TANKS FORUM REPORT - PMRC€¦ · Key Speech by His Excellency Edgar Chagwa...

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