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Africa beckoning to China, EU

Former Ethiopian prime minister says three-way partnership could change the world

The European Union and China are both seeking to boost connectivity between Asia and Europe, but Hailemariam Desalegn, former chairman of the African Union, says the two partners could also combine efforts on another big continent: Africa.

Hailemariam, who served as Ethiopian prime minister for six years, calls for trilateral cooperation, which he believes is the best way to stimulate economic development in Africa, reinforce the global order and benefit humanity as a whole.

He points out that both China and the EU have recently focused on connecting Asia and Europe, while at the same time expanding trade and investment ties with Africa.

 Africa beckoning to China, EU

Hailemariam Desalegn, former chairman of the African Union, talked to China Daily during his recent trip to Brussels. Liu Jia / For China Daily

On Oct 15, the EU’s foreign affairs ministers endorsed a comprehensive new strategy to better connect Europe and Asia.

The Connectivity Strategy was also on the agenda of the 12th Asia-Europe Meeting, held on Oct 18 and 19 in Brussels. At the EU headquarters, 53 ASEM partners from Asia and Europe vowed to strengthen collaboration on multilateralism and connectivity.

The Connectivity Strategy has been widely interpreted as the European version of the China-proposed Belt and Road Initiative. However, Hailemariam says there’s no need for Europe and China to “duplicate” their respective plans.

“China’s Belt and Road Initiative and the EU’s connectivity plan should be integrated,” he says. “They need cooperation and integration. If Europe and China combine their efforts, we can have a very strong partnership between Europe, China and Africa.”

Hailemariam made his remarks a month after leaders of more than 50 African countries gathered in Beijing for the summit of the Forum on China-Africa Cooperation, which rolled out major initiatives on industrial promotion, infrastructure connectivity, trade facilitation, green development, capacity building, healthcare, people-to-people exchanges, and peace and security.

China has also pledged to invest 52 billion euros ($60 billion; £46 billion) in projects in Africa, write off some debt for poorer African nations and set up a peace and security fund.

In September, European Commission President Jean-Claude Juncker also proposed a new alliance with Africa to deepen economic relations and boost investment and jobs.

According to the proposal, the EU would provide 40 billion euros in grants for Africa over seven years starting in 2021.

At the EU summit held in mid-October, European leaders welcomed the commission’s initiative and stressed that EU-Africa relations are of paramount importance in a rapidly changing global landscape.

Africa beckoning to China, EU

Hailemariam disagrees with some observers who say the EU’s new alliance proposal will rival China’s role in Africa. Instead, he thinks Europe and China will increasingly share a common approach toward Africa to deepen trade and investment ties, strengthen win-win partnerships and shape a better future for Africans.

He emphasizes that China and Europe should have equal relationships with Africa. “We have to optimize our global resources and maximize the benefits by making full use of each other’s strength,” he adds.

Hailemariam says his vision is to create opportunities in Africa, but that requires a structural transformation of the continent’s economy. “I think Africa is working toward this goal,” he says. “A tripartite cooperation between Africa, Europe and China as well as some other Asian countries is needed to push forward the next tide of economic development.”

Hailemariam has traveled to China a dozen times over the past few years in search of Chinese investors for Ethiopia. “We have set up a sustainable and eco-friendly special economic zone in Ethiopia. We have also set up industrial parks and attracted large amounts of Chinese investment, creating a number of facilities and jobs locally,” he says.

In 2017, China’s foreign direct investment in Africa reached $3.1 billion – nearly 40 times that of 2003. Chinese investment was traditionally focused on energy and infrastructure, but Hailemariam says it now covers all sectors, with a particular emphasis on services.

He says China’s middle class is increasingly visiting the continent, pulling up Africa’s tourism industry and service sectors.

“In my new role as founder of the Hailemariam and Roman Foundation, I plan to make the protection and sustainable management of our natural resources and biodiversity my top priority through the sustainable and community-led expansion of our tourism sector,” he says.

Data from China’s Ministry of Commerce shows that in 2017, China-Africa trade reached $170 billion. China has been Africa’s top trading partner for nine consecutive years.

In March, 44 of the 55 African Union member states signed the African Continental Free Trade Agreement. Once ratified, the continentwide agreement will create the largest free trade area in terms of participating countries since the formation of the World Trade Organization.

“Africa is now embarking on the African Continental Free Trade Area. This is a huge opportunity for China and Europe, even for the United States, which is very eager to invest in Africa,” he adds.

As part of the vision of the African Union Agenda 2063, the area is expected to create a single market encompassing 1.2 billion people and more than $2 trillion in combined GDP. In the meantime, a protocol on the free movement of people was adopted by 30 African countries.

Hailemariam says the deal will unleash trade between African countries, which he says is a crucial factor in the continent’s economic development, and will boost trade between Africa and its international trading partners.

Since stepping down as Ethiopian prime minister this year, Hailemariam has been advising on economic sustainability – in particular green growth and climate change issues – for the Brenthurst Foundation, an economic development think tank.

The mission of the Johannesburg-based foundation is to support initiatives and seek opportunities to facilitate African development and enhance the continent’s overall competitiveness.

Hailemariam says that with Africa’s booming population, it is crucial to explore opportunities for economic growth and job creation, especially for African youths.

At the United Nations General Assembly in New York in September, UN Secretary-General Antonio Guterres called for greater investment in jobs for young people in Africa, whom he described as the continent’s “greatest asset”.

Hailemariam agrees. “Agenda 2063 focuses on youth development and employment as well. Young people can embrace the new technologies very well. I think there’s going to be a better life for them,” he says.

Technology transfer and knowhow development will empower young people, Hailemariam says, adding that Europe could use its geographical proximity to Africa to help speed up the shift toward new energy, smart agriculture and digital economy.

The UN estimates that the African population is 1.29 billion and says the current median age of the population is under 20. A UN population report predicts that by 2050, more than half of all global population growth will occur in Africa.

“It’s a very young continent in terms of population structure,” Hailemariam says. “It’s younger than China and much younger than Europe. It’s also rising in population size. There’s a huge opportunity to use this young and big continent to shape the global order.”

While US President Donald Trump has pulled the United States out of multilateral cooperation on global issues like climate change, Hailemariam says the combined efforts of Africa, Asia and Europe can have a huge impact on humanity.

“China, India and Africa together account for more than half of the world’s population,” he says. “Together with Europe, I think we can change the global order.”

For China Daily

(China Daily European Weekly 10/26/2018 page32)


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