September stories from our CEO Hafedh Cherif

Dear R&C Desk Family and Clients,

As I write this article for our "September Stories", a significant event that will reshape African commercial trade and economic prosperity over the coming years is taking place in China: the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC). This summit is set to redefine the dynamics between China and Africa for the foreseeable future. Over the past 24 years, China has established itself as an indispensable partner for Africa, becoming the continent's top trade partner, investor, and creditor. In 2022, trade between China and Africa exceeded $250 billion, reflecting the growing importance of this bilateral relationship*.

On Thursday, Chinese President Xi Jinping delivered a keynote address at the opening ceremony of the 2024 FOCAC Summit. He unveiled an ambitious 10-point partnership program aimed at deepening cooperation between China and Africa. This program covers various areas, including trade prosperity, industrial cooperation, health, agriculture, and green development. Notably, China has committed to granting zero-tariff treatment to 33 African countries, expanding market access for African agricultural products, and launching infrastructure projects to enhance connectivity across the continent.

With RMB 360 billion in financial support pledged over the next three years, China aims to solidify its role as a key ally in Africa's modernization journey. This summit reflects a shared vision of growth and development for the Global South, positioning Africa as a central player in global economic modernization alongside China. By fostering this partnership, China seeks to turn its vast market into a significant opportunity for Africa, creating a new era of mutual growth and cooperation.

In the short term, the opportunities that China presents to African countries may seem like an ideal solution to their current economic challenges. However, it is crucial for each country to approach these proposals thoughtfully and consider the long-term implications. As the African proverb goes: "He who feeds your crocodile wants to cross the river.".

Dear R&C readers, enjoy your reading and have a great time!