Guangdong at heart of growing interaction between nations

While China has cemented its standing as Africa's largest trading partner, Guangdong is at the heart of the relationship, with the province's capital Guangzhou one of the best-known Chinese cities among Africans eager to do business.

Yang Tao, founder and CEO of Kilimall, the largest e-commerce platform in Kenya, said Guangdong's supply chain advantages are unparalleled and more than one-third of his platform's suppliers come from the southern province, a major global production base.

"Now, almost every African has a relative in Guangzhou, making the city known as a commercial capital that has become the most well-known Chinese city in Africa," Yang said in a vivid description of the important role Guangzhou is playing in Sino-Africa trade.

In recent years, business representatives from Africa have been among the biggest international buyers in more than 100 wholesale malls in Guangzhou's Taojin, Xiaobei and Sanyuanli areas, he said.

Guangdong-made motorcycles, lamps, cellphones, furniture and other electronic products have been in strong demand across the vast African market, according to the Guangdong Provincial Commerce Department. Motorcycles made in Foshan are seen every few minutes on the streets of Cairo, Egypt, one official said.

According to customs statistics, Guangdong's exports of mechanical and electrical products to Africa reached 60.71 billion yuan ($8.34 billion) in the first five months of this year, a year-on-year increase of 34.5 percent. The sector accounted for 61.1 percent of the province's total exports to Africa over that period.

The province's overall trade with Africa saw year-on-year growth of 24.8 percent to hit 123.77 billion yuan in the first five months.

According to Guangdong Customs statistics, the province's import and export volume with Africa from January to May represented 15.1 percent of the country's total trade volume with Africa.

The amount for last year was 265.26 billion yuan, which accounted for 14.1 percent of China's total, customs statistics revealed.

China has maintained its position as Africa's largest trading partner over the past decade, with total trade volume of more than $2 trillion and accumulated direct investment in the continent of more than $30 billion.

The province's commerce department has spared no effort in recent years to develop and increase Guangdong companies' presence in Africa.

Guangdong has established 380 nonfinancial companies and institutions in Africa, with actual investment of $779 million. "The companies Guangdong has set up in Africa have helped empower Africa's development with high-quality products and also bring talent and technologies to the African continent, helping to improve local industrialization," a commerce bureau official said.

"The bureau supports the export of products with independent intellectual property rights and independent brands, including light industrial appliances, complete sets of equipment, construction machinery and high-tech products, to Africa."

Guangdong companies are also being encouraged to use e-commerce platforms to promote trade in high-quality and distinctive products between Guangdong and Africa.

In the African telecommunications market, Guangdong companies, led by Huawei and ZTE, have introduced a new cooperation model with local operators to develop and build information and communication technology infrastructure.

Huawei has collaborated with Ugandan universities to establish an information and communication technology college, which trains more than 2,000 technicians annually, the commerce bureau official said.

Chinese enterprises, especially those from Guangdong, have also shared digital technology with African countries, greatly lifting the development of digitalization on the continent.

By the end of May, Guangdong companies had invested more than $1.17 billion in economic and trade cooperation zones in Africa, with a production value of $2.54 billion. The zones have contributed $970 million in import and export volume and delivered $42.29 million in taxes to African countries.

Of the seven economic and trade cooperation zones Guangdong has established overseas, two are in Nigeria, one in Uganda and one in Ethiopia.

Arkebe Oqubay, a special adviser to the prime minister of Ethiopia, said manufacturing is an excellent way for Africa to create employment, increase the number of value-added products, and transform and upgrade its economy.

"The manufacturing industry is Guangdong's strength, therefore Africa is expecting to see more manufacturing enterprises from Guangdong make direct investments in Africa in the coming months," he said.

Pan Jianyue, chief operating officer of Guangzhou-based lifestyle brand platform Onion Global, said African agricultural products and foods — including red wine from South Africa, coffee from Ethiopia and chocolates from Ghana — have entered the mainland market through new trade methods, including cross-border e-commerce platforms. The products are growing in popularity with Chinese consumers.

"The vast market in the Guangdong-Hong Kong-Macao Greater Bay Area, convenient logistics and close communication with Africa have helped make Guangdong an excellent entrance point for African products to explore the vast Chinese market," he said.