Africa summit kicked-off on Wednesday, September 4, with leaders of African countries meeting and discussing policies and cooperation agreements with the Chinese government.
The agreements, according to China's Ministry of Foreign Affairs, will set the tone for the two side's burgeoning relations for the next few years.
China is Africa's biggest trade partner.
ALSO READ:Kagame in Beijing for China-Africa cooperation summit
Available statistics indicate that around a quarter of Africa's exports- fuels, metals, minerals- go to China, and about 16 percent of imports come from China. China also says annual trade volume could reach $300bn by 2035.
Beijing is also Africa's biggest creditor. Between 2006 and 2021, it committed to investing $191bn in African countries.
ALSO READ What to expect at upcoming China-Africa cooperation summit
For the most part, these investments take the form of grants, credit, and loans to finance major infrastructural projects.
"China shall never waver in its determination to pursue greater solidarity and cooperation with Africa," reads part of China's foreign ministry statement.
The New Times spoke to several Chinese investors in Rwanda on the likely impact of the China-Africa summit, and prevailing challenges in the business community.
ALSO READ: Kagame: A stronger Africa is an opportunity, not a threat
Here are the seven major proposed contract talks from the investors;
Infrastructure connectivity
Speaking to The New Times in an exclusive interview, Chen LiSheng, the East African Region Managing Director of China Star maintained that infrastructure in many parts of Africa is still incomplete, especially logistics and transportation networks.
The challenge, he argued, leads to high transportation costs and low trade efficiency.
"The Forum (FOCAC) should promote more infrastructure investment, especially in the fields of transportation, energy, and communications, to improve trade circulation."
China Star is one of the major contractors in the Rwandan and regional market, with previous major projects including the construction of Kigali International Airport (KIA), among others.
Lisheng shared similar sentiments with Guo Meng, the Director General of China Road and Bridge Corporation Rwanda Office.
"In terms of China-Africa cooperation, infrastructure construction, and transportation issues are at the forefront. While there has been significant progress in improving Africa's infrastructure, there is still a noticeable gap compared to more developed regions globally."
Currently, Meng argued that investments in infrastructure primarily focus on coastal areas and plains, while mountainous regions, densely forested areas, and the vast African interior still lack adequate infrastructure.
"Moreover, heavy reliance on roads, even those of lower quality, has significantly hindered economic growth in certain areas," he added.
Trade barriers and procedures
According to Lisheng, complex tariff policies and non-tariff barriers (such as customs procedures, product standards, etc.) remain the main obstacles to China-Africa trade.
"The Forum should strive to promote policy coordination, simplify procedures, reduce trade costs, and eliminate unnecessary barriers."
Strengthen financial support and trade financing
African companies, especially small and medium-sized enterprises, often face financing difficulties and have difficulty in obtaining funds to support international trade, Lisheng added.
"The Forum should discuss how to provide more financial tools and financing channels, such as export credit insurance, concessional loans, and China-Africa Joint Fund, to support the trade activities of these companies."
For Edward Yin, Chairman of the Rwanda Chinese Association, China is the biggest developing country and Africa is the continent consisting of the most developing countries.
"We need to help each other out and support each other, as we are friends, we are brothers, and we are partners. FOCAC from 2006 up to 2024, almost 20 years have passed. Our cooperation scope is getting wider, scale becomes bigger, communication deepens, and the coming FOCAC causes the China and Africa relationship to elevate to a higher level, l am sure both sides will benefit from it."
Market access and information acquisition
The China-Africa summit underway should negotiate a win-win scenario that comes in to solve prevailing challenges of access to markets and information acquisition, Lisheng said.
He pointed out that African companies have an insufficient understanding of the Chinese market and lack effective channels to enter the market.
"The Forum should work to establish an information-sharing platform to help African companies better understand the Chinese market and provide them with market access support and promotion resources."
Through FOCAC, he said, Rwandan companies can gain more opportunities to enter the Chinese market. The forum should promote the establishment of a more convenient market access mechanism to help Rwandan products get better promotion in the Chinese market.
"This will bring new opportunities for Rwandan exporters, especially in the fields of agriculture, handicrafts, and tourism."
Promote industrial diversification
According to industry experts, diversification helps to manage volatility and provides a more stable path for equitable growth and development.
Successful diversification is all the more important now in the wake of slowing global growth and the imperative in many developing countries to increase the number and quality of jobs.
Lisheng said that the main commodities in China-Africa trade are still concentrated on primary products, lacking diversity.
"The forum should encourage Chinese companies to carry out technical cooperation with African companies, help African countries develop manufacturing and high value-added industries, and enhance the diversity and added value of their export products."
On the side of Rwanda, he maintained that through technical cooperation and capacity building, the country can use FOCAC to improve its industrialization level.
The move, he said, could reduce dependence on primary product exports and increase exports of high-value-added products.
"This shift will help diversify Rwanda's economy and enhance its competitiveness in the international market."
Promote sustainable development and corporate social responsibility
China-Africa trade and investment projects need to pay more attention to sustainable development to avoid negative impacts on the environment and society, according to Lisheng.
The forum should discuss how to incorporate sustainable development principles into trade and investment, and promote corporate social responsibility to ensure that projects have a positive impact on the local economy, society, and environment, he asserted.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"FOCAC is promoting China-Africa trade relations to pay more attention to sustainable development and promote green economic development. As a country that attaches great importance to environmental protection, Rwanda can cooperate with China in this field to jointly develop projects that comply with the principles of sustainable development and enhance the environmental friendliness of its trade and investment projects."
Enhancing trade
For Guo Meng, the China-Africa forum holds historical significance in improving trade relations.
"In recent years, China Road and Bridge, along with our partner companies in Rwanda, have faced challenges due to the impact of the COVID-19 pandemic, the Russia-Ukraine war, trade protectionism, and unilateralism. Today, the Forum signifies a fresh start, a new direction, and a renewed path for cooperation."
Over the past decade since the Belt and Road Initiative was introduced, Meng said that the firm has witnessed positive outcomes and vast potential for cooperation.
"As a new beginning for the "One Belt, One Road" initiative, this Forum is historically important for enhancing trade and fostering deeper collaboration."
CRBC is a large-scale, international contractor owned by the Chinese government, serving as a flagship and platform for the overseas operations of China Communications Construction Company Ltd.
The firm's scope covers roads, bridges, housing, and large structures, with the total completed roads accounting for more than 70 percent of Rwanda's feeder roads.
"In the future, we will continue to work on Rwanda's infrastructure construction, especially the improvement of road grades. We also plan to promote the Rwanda railway project."
