All is set for the ninth Forum on China-Africa Cooperation (FOCAC), which will run from September 4- 6 in Beijing, China.
Established in the year 2000, FOCAC is a uni-multilateral partnership platform between China and African States.
The FOCAC 2024 summit is taking place against the backdrop of general or presidential elections in 19 countries across Africa, as well as a wave of protests in different African countries against unpopular leadership and tough economic times.
ALSO READ:Kagame in Beijing for China-Africa cooperation summit
At the Eighth FOCAC summit held in Dakar, Senegal in November 2021, China committed to importing goods worth $300 billion from Africa between 2022 and 2024.
According to Gerald Mbanda, a researcher and publisher on China-Africa cooperation, trade volumes between China and Africa reached record highs in 2023.
"For the past fifteen years, China has remained Africa&039;s largest trading partner and last year (2023) the trade volume reached a record 282.1 billion US dollars, growing from US$261 billion in 2022," Mbanda told the New Times.
ALSO READ: How has Rwanda benefited from FOCAC?
He added that last year, China&039;s direct investment in Africa exceeded 40 billion dollars, and is expected to grow in 2024, demonstrating the strong resilience of China-Africa economic and trade cooperation.
China is the second largest economy in the world, accounting for 32 per cent of the total global manufacturing output. On the other hand, Africa's share of global manufacturing stands at a meagre 1.9 per cent.
Debt
Known for its infrastructure development loans, China has become a pivotal lender to African countries, having extended an estimated $170 billion in loans to sovereign borrowers on the continent between 2000 and 2024.
However, over the years, concerns have been raised over the unsustainability of Chinese lending, with suggestions that African countries could lose their sovereignty to China, for failing to meet their debt obligations.
For Mbanda, this 'debt trap' narrative is just that, a narrative.
"There is no truth to the 'debt trap' narrative, which is only aimed at spoiling the relationship between African countries and China, simply to maintain western influence and dominance," he said.
Mbanda added that research from China- Africa Research Initiative (CARI), at the Johns Hopkins University School of Advanced international studies, indicates that China’s lending to Africa compared to other lenders, constitutes only 13% of Africa’s total debt.
ALSO READ: Kagame: A stronger Africa is an opportunity, not a threat
According to Adhere Cavince, an independent analyst and International relations specialist with a focus on China-Africa relations, the focus should be on what sovereign borrowers in Africa do with the debt from China.
"The question is not about the sustainability of debt, but really about what African countries do with the debt they get from China. Do they invest in productive sectors or in manufacturing or the improvement of infrastructure? Those are the questions to be asked," Cavince told the New Times.
FOCAC Priorities
While the FOCAC summit provides a platform for China and Africa to engage in strategic dialogue on a number of cooperation domains, each side comes bearing different priorities.
"FOCAC 2024 is happening after elections in different African countries and China will be keen to engage with any new players that have come on board, to further strengthen political and economic ties with African countries," Cavince said.
He added that China will be looking forward to expanding markets for its new industrial products, while seeking access to some of the raw materials and more so, critical minerals, to serve Chinese industries.
Commitments for infrastructure development financing to Africa are also expected at this year&039;s summit.
Africa on the other hand will be keen to leverage China's vast green technologies to help with its green energy transition agenda. The continent faces a shortage of affordable and reliable electricity.
A report by Wood Mackenzie shows that after investing over $130 billion into the solar industry in 2023, China's solar component sector now represents 80% of the world supply.
Rwanda's case
What should Rwanda expect from this year's FOCAC summit?
According to Mediatrice Hatungimana, an independent analyst on China-Rwanda relations, Rwanda can expect increased investment in various sectors.
"China has been a major investor in Africa. This year's FOCAC could see new investment projects in Rwanda in different sectors such as agriculture, education, health, and infrastructure. This would boost the trade between Rwanda and China and create new opportunities for Rwandan businesses," Hatungimana told the New Times.
"FOCAC could also explore how China can assist in developing agricultural product value chains, improving postharvest handling, and opening up Chinese markets for Rwandan products, particularly those that have been enhanced through value addition," she added.
While FOCAC has emerged as a critical forum for both Africa and China, some critics have blamed Africa for lack of a comprehensive strategy for China, seeing the latter dominates much of the summit's agenda.