China's reforms, Africa's opportunities

Rather than worry about economic slowdown, the continent's leaders need to consider how changes could benefit their nations

The curtain came down on the 2016 edition of the annual sessions of China's legislature and the top political advisory body in mid-March. After a marathon fortnight of debate and deliberations, the two apex bodies reached consensus on China's socio-political path for the next year.

Crucially, the two sessions also agreed on the framework of the 13th Five-Year Plan (2016-20). Among the various highlights, two stand out for me: the setting of 6.5 percent as the minimum rate of economic growth and the approval of the five pillars of China's economic trajectory till the end of the decade.

Talk of China's economic growth targets and medium-term plans may make sense to a handful of African government and corporate leaders as well as a wafer-thin number of academics. For the majority of Africans, however, one must try to demonstrate the inextricable connecting thread between China's five-year plan and the continent's economic interests.

A lot has been said about China being Africa's No 1 economic partner. Analysts have noted that a slowdown in the Chinese economy would have a domino effect on African economies. Despite repeated assurances by Chinese leaders about the Chinese economy, a number of Africans remain nervous. This is understandable. After all, the Chinese economy has in recent times registered some of the lowest growth rates in ages. Yet, the so-called new normal - a situation in which lower economic growth rates will be the norm for the foreseeable future - need not cause much anxiety.

As explained by Chinese Premier Li Keqiang during a press conference marking the conclusion of the National People's Congress session, the new normal should be seen as new economics. In turn, the new economics translates into the withering of the old ways of doing business in China as new pathways to development are sought and implemented. What the Chinese leaders are advising is that it should be well and fine for the economy to grow at an average rate of 6.5 percent. What matters in the new economy is the quality of growth. And this is where the connecting thread with Africa materializes.

As China climbs up the value chain, Africa will be looking to position itself for the kind of development that China experienced in the last three or so decades. The driving force for China was industrialization. It follows that a largely peasant-agrarian Africa needs to industrialize and industrialize fast. Indeed, the African Union's Agenda 2063 is big on industrialization across a wide range of sectors.

Under the Forum on China-Africa Cooperation, China has pledged to provide impetus for Africa's industrialization. The transfer of China's overcapacity manufacturing units to Africa is one such approach. At the Johannesburg FOCAC Summit in December, China pledged $10 billion for Africa-China industrial projects. It may be that the implementation phase is nigh. Significantly, this is one way in which China's new economics is a boon rather than a bane for Africa.

Industrialization is but one example in which China's new economics should be seen as an opportunity for and by African countries. China's overcapacity is not in the manufacturing sector alone. Chinese construction companies are legion and brimming with expertise but in some respects, China has largely completed most domestic infrastructure projects. Fortuitously, President Xi Jinping has made the Belt and Road Initiative (the 21st Century Silk Road Economic Belt and the Maritime Silk Road), the country's signature global strategy. The initiative comes with a dedicated fund, the Silk Road Fund. This is an area in which Africa, a continent in dire need of cross-border roads and railroads as well as seaports and airports, would greatly benefit.

In a nutshell, every seeming challenge that China faces, as well as the ameliorative strategies being put in place, should be read as an opportunity for Africa. The question: will African strategists step up to the plate to benefit from China's massive economic reform and transformation?

The author is a postdoctoral fellow at University of the Witwatersrand, South Africa. The views do not necessarily reflect those of China Daily.