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When Wang Xiaoyang looks back at the success of the China-Africa Business Council， he feels justifiably proud. As the council’s secretary general， he has watched as fledgling startups have gone on to blossom into companies providing much needed jobs and economic injections into Africa’s business sector.
Prime examples are Chinese shoemaker Huajian Group in Ethiopia and agriculture powerhouse ChinaAfrica Cotton， both supremely successful businesses that have benefited from the council’s bridging assistance. The longer Wang works in connecting Chinese businesses to their African counterparts， the clearer one fact becomes to him： Successful businesses all have things in common， which are credibility， social responsibility， strategic planning， and dedication to a specific area. Companies with these qualities are what the China-Africa Business Council wants to bring to Africa.
“Good businesses make in-depth research on local market needs and the development vision of targeted African countries. Based on this and their previously accumulated experiences in specific areas of trade， they roll out a long-term operation strategy，” Wang told ChinAfrica.
The China-Africa Business Council originated from a proposal by Kofi Annan， then Secretary General of the United Nations， in 2004. Annan suggested China set up a non-governmental organization （NGO） to scale up poverty alleviation and development efforts in Africa under the South-South cooperation mechanism. After more than a year’s preparation， the China Society for Promotion of the Guangcai Program， an anti-poverty NGO， the China International Center for Economic and Technical Exchanges under China’s Ministry of Commerce， and the United Nations Development Programme jointly made the proposal a reality in November 2006.
Over the past 11 years， the China-Africa Business Council has helped around 600 Chinese companies expand their operations or invest in 51 African countries， with total investment exceeding $9 billion. In the process， 102，000 direct jobs and 1.5 million indirect jobs have been created in 38 African countries.
“Africa’s growth has become a highlight of the world economy， and the trade and investment Chinese enterprises are involved in play an increasingly important role in the continent’s growth，” said Zheng Yuewen， Chairman of China-Africa Business Council.“Growing prosperity in Africa is an earnest desire not only of Africans but also of Chinese， too. The CABC looks forward to continuing to work with Chinese business to jointly create a better future for all of our peoples.” Valuing investment
More and more African countries are actively participating in the China-proposed Belt and Road Initiative， which， consisting of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road， aims to build a trade and infrastructure network connecting Asia with Europe and Africa along and beyond the ancient Silk Road trade routes. Meanwhile， China’s commitment at the Johannesburg Summit of the Forum on China-Africa Cooperation to bolstering African industrialization is being implemented in practice. Against this background， Chinese companies， especially those from the private sector， are increasing their investment in Africa.
These burgeoning businesses are shaping a new form of China-Africa economic ties featuring investment as the driver instead of being dominated by trade， according to a report on Chinese businesses in Africa released by McKinsey & Company in June this year. The report said trade between China and Africa increased at an annual growth rate of 20 percent， whereas China’s direct investment in Africa jumped 40 percent annually on average over the past 10 years. The figure could be 15 percent more if the non-official capital inflow were counted， according to the report.
McKinsey & Company estimated that the number of Chinese businesses in Africa has exceeded 10，000， a four-fold increase than previously anticipated. About 90 percent of them are private companies， one third of which are in the manufacturing sector.
“It is positive change for Africa and will bring opportunities for the continent to accelerate its industrialization process，” said Wang. He explained that Africa’s current situation is similar to that in China in the 1980s and 90s when China was opening up to foreign businesses so as to boost industries， especially those in the manufacturing sector.
“Through learning from advanced foreign technology and management expertise， as well as opening up to overseas markets， China achieved an economic miracle. If China can do so， why cannot Africa？” he said， adding that the key is how host countries use the foreign investments for their own development. In response to a growing role of investment in Sino-African economic ties， the China-Africa Business Council values Chinese companies with sufficient funding and a sense of sustainability， rather than those looking to make quick money， and regularly hosts forums and conferences to connect them with African opportunities. Considering the demands of African countries， the selected businesses focus on infrastructure construction and maintenance， manufacturing， agriculture， service and financial sectors. Charity begins at home
Besides being a facilitator， the China-Africa Business Council has also committed itself to charity work in Africa in recent years. In March 2015， it launched the Increasing Love for Decreasing AIDS Fund aimed at combating the killer epidemic， specifically among women and children. Donations raised by the fund are given to anti-AIDS programs initiated by UNAIDS in Africa.
According to figures on the fund’s website， more than 3.24 million yuan （$490，139） had been raised as of October 31， 2017， 50 percent of which is from youths and 30 percent from businesses. The fund has contributed $230，000 to AIDS-affected women and children in Africa.
“Ending the AIDS epidemic is one of the priorities of poverty alleviation and development efforts， which is also our original vision，” said Wang， explaining why the council also devotes itself to charity. In Wang’s eyes， charity is not just about donating money， but also a call for the Chinese society as a whole to know and care about Africa and its people. Besides cash donations， the fund has also involved 300，000 people in its anti-AIDS efforts in Africa.
During June to August 2017， the fund invited youths across the world to participate in the first Public Benefit International Challenge for Youth 2017， where participants were encouraged to enhance the life of their African peers through innovation. The program involved 40 teams representing more than 80 schools from China and other countries and 240，000 Internet users registered to vote for the best innovation. In addition to raising $57，000 for a football pitch and six music classrooms， the participating teams programmed online courses and designed water purifiers for African children.
“It is amazing that these students are so creative and ready to know and care about young Africans. For African people， what they received is also beyond a donation. Such exchanges are important and touching，” said Wang.
Prime examples are Chinese shoemaker Huajian Group in Ethiopia and agriculture powerhouse ChinaAfrica Cotton， both supremely successful businesses that have benefited from the council’s bridging assistance. The longer Wang works in connecting Chinese businesses to their African counterparts， the clearer one fact becomes to him： Successful businesses all have things in common， which are credibility， social responsibility， strategic planning， and dedication to a specific area. Companies with these qualities are what the China-Africa Business Council wants to bring to Africa.
“Good businesses make in-depth research on local market needs and the development vision of targeted African countries. Based on this and their previously accumulated experiences in specific areas of trade， they roll out a long-term operation strategy，” Wang told ChinAfrica.
The China-Africa Business Council originated from a proposal by Kofi Annan， then Secretary General of the United Nations， in 2004. Annan suggested China set up a non-governmental organization （NGO） to scale up poverty alleviation and development efforts in Africa under the South-South cooperation mechanism. After more than a year’s preparation， the China Society for Promotion of the Guangcai Program， an anti-poverty NGO， the China International Center for Economic and Technical Exchanges under China’s Ministry of Commerce， and the United Nations Development Programme jointly made the proposal a reality in November 2006.
Over the past 11 years， the China-Africa Business Council has helped around 600 Chinese companies expand their operations or invest in 51 African countries， with total investment exceeding $9 billion. In the process， 102，000 direct jobs and 1.5 million indirect jobs have been created in 38 African countries.
“Africa’s growth has become a highlight of the world economy， and the trade and investment Chinese enterprises are involved in play an increasingly important role in the continent’s growth，” said Zheng Yuewen， Chairman of China-Africa Business Council.“Growing prosperity in Africa is an earnest desire not only of Africans but also of Chinese， too. The CABC looks forward to continuing to work with Chinese business to jointly create a better future for all of our peoples.” Valuing investment
More and more African countries are actively participating in the China-proposed Belt and Road Initiative， which， consisting of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road， aims to build a trade and infrastructure network connecting Asia with Europe and Africa along and beyond the ancient Silk Road trade routes. Meanwhile， China’s commitment at the Johannesburg Summit of the Forum on China-Africa Cooperation to bolstering African industrialization is being implemented in practice. Against this background， Chinese companies， especially those from the private sector， are increasing their investment in Africa.
These burgeoning businesses are shaping a new form of China-Africa economic ties featuring investment as the driver instead of being dominated by trade， according to a report on Chinese businesses in Africa released by McKinsey & Company in June this year. The report said trade between China and Africa increased at an annual growth rate of 20 percent， whereas China’s direct investment in Africa jumped 40 percent annually on average over the past 10 years. The figure could be 15 percent more if the non-official capital inflow were counted， according to the report.
McKinsey & Company estimated that the number of Chinese businesses in Africa has exceeded 10，000， a four-fold increase than previously anticipated. About 90 percent of them are private companies， one third of which are in the manufacturing sector.
“It is positive change for Africa and will bring opportunities for the continent to accelerate its industrialization process，” said Wang. He explained that Africa’s current situation is similar to that in China in the 1980s and 90s when China was opening up to foreign businesses so as to boost industries， especially those in the manufacturing sector.
“Through learning from advanced foreign technology and management expertise， as well as opening up to overseas markets， China achieved an economic miracle. If China can do so， why cannot Africa？” he said， adding that the key is how host countries use the foreign investments for their own development. In response to a growing role of investment in Sino-African economic ties， the China-Africa Business Council values Chinese companies with sufficient funding and a sense of sustainability， rather than those looking to make quick money， and regularly hosts forums and conferences to connect them with African opportunities. Considering the demands of African countries， the selected businesses focus on infrastructure construction and maintenance， manufacturing， agriculture， service and financial sectors. Charity begins at home
Besides being a facilitator， the China-Africa Business Council has also committed itself to charity work in Africa in recent years. In March 2015， it launched the Increasing Love for Decreasing AIDS Fund aimed at combating the killer epidemic， specifically among women and children. Donations raised by the fund are given to anti-AIDS programs initiated by UNAIDS in Africa.
According to figures on the fund’s website， more than 3.24 million yuan （$490，139） had been raised as of October 31， 2017， 50 percent of which is from youths and 30 percent from businesses. The fund has contributed $230，000 to AIDS-affected women and children in Africa.
“Ending the AIDS epidemic is one of the priorities of poverty alleviation and development efforts， which is also our original vision，” said Wang， explaining why the council also devotes itself to charity. In Wang’s eyes， charity is not just about donating money， but also a call for the Chinese society as a whole to know and care about Africa and its people. Besides cash donations， the fund has also involved 300，000 people in its anti-AIDS efforts in Africa.
During June to August 2017， the fund invited youths across the world to participate in the first Public Benefit International Challenge for Youth 2017， where participants were encouraged to enhance the life of their African peers through innovation. The program involved 40 teams representing more than 80 schools from China and other countries and 240，000 Internet users registered to vote for the best innovation. In addition to raising $57，000 for a football pitch and six music classrooms， the participating teams programmed online courses and designed water purifiers for African children.
“It is amazing that these students are so creative and ready to know and care about young Africans. For African people， what they received is also beyond a donation. Such exchanges are important and touching，” said Wang.