Dr Jean Marie Cishahayo's presentation at Green Drinks China Monthly Sustainability Forum in May 2013

1. China Capabilities and Limitations
in Investment & Technology Trade
With Africa:
How the two markets are forging a more
Sustainable Partnership
Prof. Dr Jean Marie CISHAHAYO
Senior Advisor for China Africa Capacity Training Project – United Nations Institute
for Training and Research – UNITAR/CIFAL Shanghai www.unitar.org
Professor at ESSCA French Business School and Shanghai Jiaotong University.
Shanghai April 11, 2013

2. 1. Content.
1. Global economic downturn: Opportunities for China-
Africa strategic Cooperation.
2. Why Africa became an attractive market for China
and other during last decade?
3. Understanding the framework and mechanisms of
China - Africa Economic Cooperation.
4. China Limitations in Investment and Trade with
Africa and impact on sustainable Development.
5. Where are other business opportunities for Western
Companies in Africa?

3. Africa Map

4. 1. Global economy downturn: An
opportunity for China - Africa?
China access into the WTO: Weak Chinese
companies competition with western
companies especially the SMEs.
China “Going out policy” and weak
internationalization of Chinese enterprises.
China Pressure on foreign currency reserve
($3.2 Trillion) an opportunity for technology
trade and investment to Africa.
Weak economic recovery in USA and EU :
China Trade expansion in emerging markets
such Africa.

5. 非洲地图

6. African oil reserves
非洲石油储备

7. Africa coal reserves
非洲煤炭储量

8. African natural gas reserves

9. - In 2013, Both economies are showing muscle
and growth around 8% for China and around
6% for Africa.
-The two matching economies based on supply
and demands, both products and services.
-Trade volume reached around $ 220 Billion in
2012 expect to reach 300 Billion in 2015
( Mofcom)
- From 2010, China became Africa largest Trade
Partner surpassing USA and EU countries.
- Africa is China largest overseas market
for contracted projects (Infrastructure)
- More than 2000 Chinese call Africa Home.
The two matching economies.

10. 4. China and Africa trade: The
Global Impact
Africa is likely to surpass EU & USA to become
China largest trade partner in the nest 3 to 5 years
China Export to Africa is growing 25% year on year
while import jumped 21,5% last year.
EU is China largest trade partner with trade volume
of $ 567 Billion in 2011. . USA is 2nd largest trade
partner with 446 Billion trade volume in 2011.
China – Africa trade volume is expected to close the
gap quickly to reach 500 Billion
Investment to Africa is expected to grow 30-40% in
2013.(WB).

11. 2. Why Africa Became an attractive
markets for China?
1980 – 1990 : First decade of Opening policies and
Economics reforms in China
Hard Political transitions in Africa and Instability .
1990 – 2010 : Regional economic Blocs: EAC,
SADC, ECOWAS, ECCA, COMESA
AGOA : Africa Growth Opportunity Act is a trade
cooperation with USA.
Cotonnou ACT : is trade between EU and Africa.
EU : Africa Union and its new mission.
NEPAD : The New Partnership for Africa
Development.
1 Billion Population and consumers.

12. 3. Understanding the framework
and guidelines for China Africa
FOCAC : Forum on China Africa Cooperation.
CADF : China Africa Development Funds :
Investment in projects of national development
interest such : Infrastructure, Energy, Minerals,
Telecommunication, ICT, Ports , Airports, Roads,
Agriculture productivity etc..
EXIM Bank : Concessional Loans and Equipment
purchasing for development.

13. 4. Challenges on sustainable
investment from China.
Investment and Technologies by SOEs at more than
60% in Africa (FDI, Concessional Loans, Credits etc)
Weak participation of private sector capable
companies , lack of information and strategies.
Lack of good policies to support Chinese SME and
small business expansion to Africa.
Imports of row materials and resources to China.
Infrastructure and buildings broken after few years
and weak maintenance capability.

14. 5. What are other opportunities for western
companies? Help on sustainability.
AGOA Opportunities : Manufacturing in Africa and
reach USA Market duty free , No quota.
Cotonnou Opportunities: Manufacturing in Africa
and reach EU markets duty free no quota.
Renew the traditional advantage on communication
and relationship with Africa.
Innovative and competitive products in good quality
are still imported in western countries.
Follow UN and World Bank requirements on Africa
sustainable development with Innovative plans for
climate change and new technologies applications.
Opportunities in services industries : Tourism,
education, Banking, creative economy etc..

15. 6. Some Challenges on China
Africa cooperation.
Despite 50 years China Africa Cooperation, Relations
still dominated by Government to Government,
people to people relations still very low
Problem on human resources ( Africans graduates in
China) are not engaged.
Private Chinese Companies new interest in Africa,
low vision and lack of appropriate information and
strategies.
Media report on China and Africa cooperation ,
positive and negative feed back.
The cross culture and communication: Less than
10% Chinese know Africa, Less than 10% of Africans
know China.

16. 6. Conclusions and
recommendations.
- Can china development model work for Africa? Yes if
Africa work on a strong state management and Good
Governance but only lessons to learn.
- It is time for African countries to rethink new
strategies to work with China.
- Private sector and self employment has to take lead.
- China and Africa cooperation is in good shape and is
going to be even one of the best model in South –
South sustainable partnership.
- Is the partnership sustainable and win-win?

17. Thanks you for your attention !
Prof. Dr Jean Marie CISHAHAYO
Email : cishachina@gmail.com
Mobile: 13901823065
Skype: cishahayo1.