Africa to become world's manufacturing hub through China cooperation

The government has also identified industrial cooperation as the top priority for its engagement with Africa this year. Chinese investment to the continent reached $21.2 billion in 2012, a figure aimed to be raised to $100 billion by 2020.

Turning to the recently launched TFTA by Africa's three regional economic blocs, Kaberuka said the TFTA was a "major turning point" in Africa's quest to boost intra-Africa trade.

"This region coming together has already made huge progress on the issue of tariff reduction and tariff harmonization," he said.

The TFTA encompassing 26 countries of the Common Market for East and Southern Africa (COMESA), East African Community (EAC) and the Southern African Development Community (SADC) was launched on June 10 with the aim of boosting intra-Africa trade.

The 26 countries, with a combined population of 625 million people, and Gross Domestic Product of $1.3 trillion, present close to 60 percent of the AU's GDP and population.

Kaberuka said while intra-Africa trade was generally put at 12 percent and true for the whole of Africa, the actual levels of intra-trade within the TFTA was about 20 percent.

But for the TFTA to become successful, Kaberuka said all non- tariff barriers must be removed while free movement of business people and bona fide travellers must be ensured.

"So for the free trade zone to become free, tariff agreement is important," he said.

The AfDB president said the TFTA presented an immense investment opportunity for China to boost industrial cooperation with Africa.

"For Chinese companies coming to this region, they have access to a whole bigger market from Cape Town to Alexander and that's a huge advantage it offers to Chinese manufactures," he said.

Kaberuka also hailed cooperation in the financial sector where he noted that the AfDB and the Chinese were cooperating in co- financing of infrastructure development projects on the continent.

One such project that had been co-financed by the $2 billion Africa Growing Together Chinese Fund being managed by AfDB was the Sharm-el-Sheik International Airport in Egypt, he said.