In the wake of a great explorer

Province looks to Africa for manufacturing opportunities, chance to help continent grow

The province of Fujian in southeastern China takes great pride in its historic business links with Africa, and it has ambitious plans to strengthen them as it builds factories on the continent.

Zheng Xiaosong, vice-governor of Fujian, a manufacturing leader, says the province is keen on more of its companies forming partnerships with African counterparts.

"As one of the pioneers in China in doing business with Africa, Fujian wants to take the current One Belt and One Road Initiative to build up a new Silk Road with Africa," Zheng told a seminar on Africa-Fujian collaboration in Fuzhou, the provincial capital, on Sept 19. "That is exactly what the Chinese navigator Zheng He did after he set out from Fujian in the 15th century."

The strength of Africa's economy is borne out by growth in its combined GDP, more than 5 percent in each of the past 10 years, he said, adding that it had also demonstrated its robustness during the international financial crisis.

"But most countries in the continent are still in the early stages of industrialization and they desperately need foreign capital, equipment and technology to bring this to fruition. Fujian is perfectly placed to collaborate with Africa in this regard because its companies, after 30 years of opening up to the world, have got to the point where they can export capital and technology."

Such collaboration needs to be based on infrastructure projects that have been critical to China's growth and hold out similar prospects to Africa, he said.

"Fujian has a wealth of experience and capacity in this field, as we have well-developed transport links, both within the province and to other provinces, and high-speed trains will be running in the province by the end of the year."

The construction company China Wuyi has worked on projects in Africa since 2000, investing more than $1 billion, he says, and Fujian is keen on building industrial zones or parks in which local economies can be developed more efficiently.

Industrial zones have played a vital role in China, making the most of local resources and bringing production elements together, resulting in fast economic growth.

"We are eager to collaborate with our partners in Africa to build industrial zones there based on local market demand," Zheng says. "The idea is to set up complete industry chains in these zones, which will create jobs."

George Manongi, Tanzania's ambassador to China, welcomed Fujian's proposed special economic zones in his country and says Tanzania has designated areas for export processing zones and special economic zones.

"Using the special economic zones, investors can establish industrial and commercial parks. Such projects entail building roads, utility systems, fencing and supporting administrative and service blocks."

Investors can apply for licences to set up manufacturing operations in the zones and enjoy "the lucrative incentives" provided, Manongi says.

"Among existing investment sectors in Tanzania, those that will benefit a lot in the special economic zones are agricultural processing, textiles and garments, lapidary, leather processing, fish processing, forestry and forestry products, information and communications technology industries and assembly."

Manufacturing in Tanzania has grown steadily in recent years, with annual growth of 4 percent, accounting for 8 percent of GDP, he says.

The government is particularly keen on attracting investment in the following areas: agriculture and agricultural products, metal products, machinery and transport equipment, electronics and electrical appliances, chemicals, paper and plastics, light industries, ceramics and gemstones.

Investors can apply for special economic zone licenses for projects such as hotels, museums, amusement parks and golf clubs, Manongi says.

Tanzania's economy has grown steadily over the past 10 years, the World Bank says. The government forecasts that GDP will grow 7.4 percent this year on the back of rapid expansion in sectors such as communications and increasing domestic demand due to rapid population growth.

Dai Bing, vice-director of the Africa department of the Ministry of Foreign Affairs of China, says this is a historic moment for industrial collaboration between China and Africa.

"Our development goals are highly complementary, as are our advantages and demands, and that is a good basis for us to work together.

"Africa's rich natural resources still have not been be translated into economic power to be enjoyed by the people, and the continent's population dividend has not been fully used. This partnership is about helping Africa establish an independent and sustainable industrial system."

In return, Africa can help China with its excess capacity so the country can transform and upgrade its economy smoothly, he says.

Kenya, Ethiopia and Tanzania play a special role as China helps Africa grow economically, he says.

"In Ethiopia we plan to focus on the Addis Ababa-Djibouti railway project and Eastern Industry Zone to support Chinese textiles, light industries, home electronics, construction materials and agro-products processing production in the country. In Kenya the Mombassa-Nairobi railway and Mombassa port construction will service industrial zones and Chinese goods logistic centers. And in Tanzania we hope to revitalize the Tazara railway and develop export-oriented labor intensive industries."

"This kind of collaboration covers many issues. ... But for sure China will never sacrifice Africa's environment and long-term interests as was done by others in the past."

Yang Jie contributed to this story.

Contact the writers through lilianxing@chinadaily.com.cn

(China Daily Africa Weekly 09/25/2015 page22)