China's grand lesson in pragmatism

Relationship with africa has paved the way to a dynamic economy that is rich in promise

The evolution of Africa into a competitive player in the global economy is a remarkable story.

Middle-class consumers now constitute more than a third of the African population. The number of households with disposable income is projected to grow by 50 percent in the next 10 years. Not only is Africa rich in natural resources with 60 percent of the world's arable land alone but its people, young and increasingly more affluent, are becoming a powerful economic force. Africa's sustained rise is inspiring.

As a Moroccan-born entrepreneur, I have followed Africa's trajectory for decades but I have never been as excited as I am today about opportunities to develop relationships in the region.

China has played a significant role in Africa's development, and with trade ties expected to surge by as much as 25 percent this year, the relationship is destined to continue prospering. In 2009, China overtook the United States as Africa's biggest trading partner. Last year, trade between China and Africa was worth $200 billion.

South Africa's enlistment in the ranks of the BRICS countries represented a significant shift in the perception of Africa's role as a global player in the 21st century and further solidifies an already thriving relationship between China and Africa.

Apart from attending the BRICS summit in Durban in March, China's President Xi Jinping paid state visits to Tanzania and the Republic of Congo, where he cemented several economic agreements.

Partnerships between Africa and China have stimulated the continent's already vibrant entrepreneurial and technology scene.

Last year, a Congolese entrepreneur, Verone Mankou, designed, produced and brought to market the first ever tablet computer to specifically target African consumers. His products are designed in Africa and assembled in China.

China has invested in 49 African countries in sectors ranging from mining to drilling, transport, telecommunications, entertainment and real estate. This dynamic exchange of capital, labor and ideas is difficult to categorize and creates a complex and diverse investment environment.

State-owned Chinese firms are active alongside private companies and Chinese private-equity firms. An estimated 1 million Chinese now live in Africa, and visits by Chinese tourists to the continent are growing, pointing to further potential growth sectors for African countries. China's approach to Africa, with a focus on trade (not aid), is helping to move African economies in an exciting direction. The US, Europe and other traditional trading partners now have an opportunity to recalibrate their policies to a new investment climate in Africa.

Africa's people are its greatest story. More than half of Africa's population is less than 20 years of age, half a billion people are of working age and by 2040 Africa's labor force will be larger than China's. African governments must invest in education and vocational training to maximize productivity. They must create employment opportunities to ensure that Africans can enjoy a higher standard of living. These transitions will pose challenges for governments and businesses but will also present exciting new possibilities for those who stand ready to seize them.

Many lessons can be learned from China's pragmatic, goal-oriented approach, and from my vantage as founder of the New York Forum AFRICA, I endeavor to share them.

At the inaugural New York Forum AFRICA, held in Gabon last year, we addressed the relationship between China and Africa and the potential trajectories of their relationship. This year we will continue to explore the Sino-African link, inviting business leaders and other expert authorities and stakeholders from across the world to join the conversation. We will examine Chinese foreign direct investment in African countries and will analyze South Africa's new role as a member of the BRICS bloc. What benefits will this new status bring to South Africa and what broader effects will it have on the region?

Our agenda will examine the implications of urbanization across Africa and feature a discussion about policies that are needed in response to urbanization. More specifically we will consider how to turn opportunities for the continent into reality, by examining how African nations can maximize gains through both inter-African investment flows, and via links with global sources of capital, from China and beyond.

In this regard, the New York Forum AFRICA is a platform for meaningful discussions on critical business topics and for a call to action for all stakeholders to work together to ensure prosperity for Africa and maximum benefits for all who have a stake in the present and the future of the continent.

The author is founder and chairman of the New York Forum, and executive chairman of Richard Attias and Associates. The views do not necessarily reflect those of China Daily.

(China Daily Africa Weekly 07/12/2013 page12)