In this section, you may find new materials that have been published on the topic of “Emerging donors & rising powers in ACP agriculture”, since the date of the event. We continually select major new publications and articles that add up to the policy points discussed in this briefing.
The closest look yet at Chinese economic engagement in Africa
McKinsey & Company, June 2017
Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships. In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies. Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries that together make up approximately two-thirds of sub-Saharan Africa’s GDP.
This study was conducted in the context of the China–UK Cooperation on African Trade and Investment for Poverty Reduction. It focuses on the evolution of bilateral relations between China and the UK towards trilateral relations with Africa and on building a framework for future cooperation. Special attention is given to infrastructure, agriculture and trade facilitation. It analyses the current engagement of Kenya and South Africa with the UK and China. Main findings and recommendations are that South Africa and Kenya should be linked more to global value chains and to raise the awareness of it as a possible outsourcing destination. Reducing non-tariff barriers between the countries could generate positive impact for local livelihoods and welfare-enhancing effects. Sharing more information and enhancing transparency is recommended for further success in the trilateral cooperation.
Chinese actors are increasingly engaging in African agriculture. Despite China’s innovative approaches to aid and assertions of comparative advantage in agriculture technologies, experience shows that technologies that have worked well in China may not offer the same benefits when transferred to Africa. The perspective of the Chinese agronomists implementing these initiatives is largely missing from the literature on China-Africa agricultural engagements. This paper presents the reflections of more than 160 Chinese agronomists who have spent time implementing agriculture-aid projects in Africa. Although Chinese agricultural aid in Africa dates back to the 1950s, there has never been an attempt to systematically gather the perspectives of practitioners implementing these projects on the ground. This research, conducted by the a research division of the Chinese Ministry of Agriculture, can be seen as a first step to gain insight into their experiences, in order to allow productive dialogue among Chinese and international stakeholders on improving the design and management of Chinese agricultural aid programmes in Africa.
Over the past 15 years, China’s investments in Africa have increased rapidly and China has become Africa’s largest trading partner. There are continuing misperceptions about China-Africa economic relations, and little empirical evidence on the policy tools that underpin China’s economic diplomacy in Africa and how they affect the conduct of Chinese companies. China and several sub-Saharan African states have signed bilateral investment treaties. This report explores the content of the treaties, and whether they achieve their stated goal of promoting foreign investment as part of South-South foreign cooperation. It draws on a literature review, a legal analysis of the treaties and interviews with Chinese stakeholders. The findings provide a cautionary tale about whether the treaties fulfill their objective, as well as pointers for follow-on research and for policy and practice in China and Africa.
Good Practices in South-South and Triangular Cooperation for Sustainable Development, the first in its series, highlights Southern good practices that are relevant to the implementation of the Sustainable Development Goals. Policymakers and development practitioner seeking to understand better how South-South and triangular cooperation can contribute to the improvement of peoples’ lives will find ample answers in this book. Many of the good practices featured were recommended by member agencies of the United Nations Development Group Task Team on South-South and Triangular Cooperation and other development partners at the subregional, regional and global levels. Others were selected from among the good practices that had been nominated and showcased during the annual Global South-South Development Expos organized by the United Nations Office for South-South Cooperation since 2008.
South–South Cooperation, Agribusiness, and African Agricultural Development: Brazil and China in Ghana and Mozambique
Kojo S. Amanora, Sérgio Chichavab, 2016
The rise of new powers in development has generated much debate on the extent to which South–South Cooperation (SSC) constitutes a new paradigm of development more relevant to African needs or a disguise for a new form of imperialism. This paper critically examines the rise of Chinese and Brazilian technical and economic cooperation in African agriculture with two cases drawn from Ghana and Mozambique. Using a historical framework, policy documents, case studies, and an analysis of the political economy of agrarian development, we trace the role of agricultural development in the relations of China and Brazil in Africa, and the extents to which recent developments in agribusiness and structural neoliberal reforms of African economies have influenced Brazilian and Chinese contemporary engagements with African agriculture. We examine the extent to which the different policy frameworks, political interests in agriculture, and institutional frameworks influence and impede the outcomes of Chinese and Brazilian development intents. We find that China and Brazil have different histories of experience within African agriculture, which influences the nature of their technical and development cooperation. Although they have distinct agrarian structures, the development of agribusiness and commercial seed, input and machinery sectors in China and Brazil influence engagements within Africa. These are often variants of the same interests that underlie the programs of northern donors, and frequently the two rising powers engage in trilateral arrangements with other donors and international agencies, particularly in the case of Brazil.
Brazil, China roles in African farming explained
A special issue of World Development, examines the real roles that China and Brazil are playing in African agriculture, moving beyond what the authors consider as “simplistic narratives of South-South collaboration or neo-imperial expansion”. Eight papers culled from an input of 20 research collaborators detail how Brazil and China are impacting the African economy. The work, organised via the Future Agricultures Consortium, was supported with roughly US$ 934,000 in UK Economic and Social Research Council funding.
Agricultural Models and Best Practices from Brazil and the Southern Cone: Lessons for Africa
German Marshall Fund 15/01/2016
The last 15 years have seen remarkable transformations in farming practices, institutional frameworks, and policies for agriculture in the Southern Cone of South America. This policy brief provides an overview and discussion of these changes and includes considerations of their potential relevance for African agriculture. combination of dynamic international markets and the diffusion of bioinformatics technology — i.e., the application of computer technology to measure and analyze large amounts of raw biological data — are shifting large-scale farming toward a new organizational model. For their part, public research programs are looking beyond mono-cropping systems toward the integration of farming, cattle-raising, and forestry. At the other end of the spectrum, efforts have been made to reinsert family farming into institutional markets such as school meals and public crop purchases as well as special quality markets (whose quality derives from the methods and conditions under which they are produced such as geographical indications, organics, and fair trade). Access to Brazil’s national biodiesel market, which was created from scratch through compulsory blending, is via a public auction system whereby participating firms must guarantee that a specified percentage of their raw material comes from family farm organizations. At the same time, civil society entities and government policies have been promoting an agro-ecological farming model geared to increasing the autonomy of small farmers from the inputs industries and offering a low cost entry option into the potential of the organics market. Farmer networks such as Ecovida in Brazil’s southern states of Santa Catarina and Paraná organize hundreds of farmers along agro-ecological principles. Brazilian NGOs such as Kairos are coordinating a national network of community-supported agriculture initiatives.
China-Africa cooperation: a new dawn for African industry?
At the Forum on China Africa Cooperation (FOCAC) in Johannesburg last month, President Xi Jinping proposed a series of major initiatives designed to usher in a new era of ‘win-win cooperation’. 60 billion USD was pledged to support goals such as poverty reduction, agricultural modernisation, and public health – a 12-fold increase on 2006 commitments. Officials highlighted increased industrialisation in Africa as essential and advantageous for both parties, and in line with this China’s central bank announced yesterday a new China-Africa industrial capacity cooperation fund. So what’s in store for African manufacturing in 2016?
Global Players: Asian Giants Strengthen Positions in Africa
The new global players China, Japan and India are on course for the next ‘African campaign’. The continent is once again the object of attention of the world’s leading States, wrote Vladimir Terekhov. “The irony of historical process in this case is in the fact that some time ago the first two themselves were objects of severely ferocious colonial policy. Today, all three of them are quite successfully conquering hearts and souls of Africans with economic tools.” Recently China’s President Xi Jinping, made a trip to the African continent where he attended the Forum on China-Africa Cooperation, FOCAC. The Forum is held since every year since 2000, and this one took place in Johannesburg on December 4-5, 2015. During the forum, Xi Jinping announced that within the next three years China will allocate $60 billion in order to support the operation of ten programs intended for solution of a wide range of problems, preventing full development of African countries. As mentioned by Terekhov in his article, China had become the biggest competitor to the leading Western States in the sphere of economic relations with African countries. “The total volume of Sino-African trade in Year 2014 amounted to $222 billion. Republic of South Africa and Nigeria are the main trade partners of China at the continent. The turnover with each of them is close to 30 billion US Dollars,” Terekhov wrote for the New Eastern Outlook.
Partnering with Emerging Donors
The balance of international aid is shifting, with emerging donors contributing a growing proportion of the international development budget. The surge in investment needs careful handling to avoid gaps and overlaps, and to keep poverty reduction and lowering inequality at the heart of aid. Collaborative projects between the EU, emerging donors and beneficiary countries could be the way forward, according to a European Commission report, ‘The European Union, Africa and New Donors’. Understanding the two donor groups’ different styles, reporting methods and reception in beneficiary countries is the first step towards better coordination.“The importance of emerging donors has been increasing in recent years, and we wanted to understand better how they operate, what their impact is, and how they interact with traditional donors and partner countries,” says Jose A. Becerra, Policy Officer in DEVCO’s International Cooperation and Dialogue unit.
Mozambique prepares India-Africa Fund
At the Third India/Africa Summit, Mozambican Prime Minister Carlos Agostinho Rosário announced that the government of Mozambique will start preparing projects to be submitted to the US$10 billion fund for Africa launched by the government of India. The projects focus on agriculture, water supply and restructuring of the postal system. Rosário said that there was a lot of interest in strengthening bilateral cooperation in the agricultural sector. The Indian government pledged a credit line of US$10 billion and US$600 million dollars in aid over the next five years, indicating that it pledged to work with the continent to develop information technologies and reduce the digital divide. The President of Mozambique, Filipe Nyusi visited India with 60 businesspeople, and the two governments signed two MoUs in the economic area and decided to move on to military cooperation, especially in the field of maritime safety, taking advantage of the fact both countries have coastlines on the Indian Ocean.
African countries seek India’s cooperation in defence, agriculture
From assistance in defence to mining to agriculture, African countries have sought India’s cooperation in a variety of sectors as part of expansion of engagement between two sides. External Affairs Minister Sushma Swaraj held bilateral talks with her counterparts from nine countries and Industry Minister of Cote d’Ivoire yesterday during which possible areas for India’s assistance were discussed. A number of countries including Angola sought India’s help in the telecom and energy sectors while many others favoured deepening of cooperation in agriculture, healthcare and infrastructure development. Swaraj assured them all possible assistance.The ministers were here to participate in the third India Africa Forum Summit.Swaraj thanked Foreign Minister of Eritrea Osman Saleh Mohammed for helping India in evacuation of Indians from Yemen earlier this year. Currently there are 1,200 Indian teachers in Eritrea and Mohammed sought more teachers from India.
China-UK fund for African Development signed
There have been a raft of business deals signed between President Xi Jinping and the British government in the so-called new ‘golden era’ of economic co-operation. During the parallel discussions about China-UK cooperation in international development, deals were signed with the Secretary of State Justine Greening has signed agreement on a UK-China fund for African development and a UK-China development partnership between DFID and the Chinese State Council’s Development Research Centre (DRC). Additionally, with the recent launch of the Sustainable Development Goals, these are important development for international development.
China’s green fingers can help African farmers
China has shown that investment in agribusiness can lead to sustained economic growth, as opposed to heavy dependence on extractive industries. China’s modernisation has turned small-scale farms into larger production zones and can be an example of best practice for African countries. However, in terms of hi-tech farming machinery, China and Africa face a similar challenge: to transform farms through the use of foreign hi-tech machinery while also trying to stimulate domestic technological innovation. According to data from Beijing-based Zeefer Consulting, China’s agricultural industry has so far relied on domestically manufactured small-scale, low-end to mid-range machinery and still relies on the imports of the latest high technology. Africa offers may opportunities for Chinese agribusiness investments and partnerhisp, especially considering that 69% of all sub-Saharan Africans work in agriculture.
Cooperation between young Chinese and Lusophone entrepreneurs
The Young Entrepreneurs Forum of China and Portuguese Speaking Countries which took place in Macau, focused on Macau’s role as a trade platform for enhanced business cooperation . Stakeholders, including government officials from China, diplomats from Portuguese-speaking countries, municipalities and business associations of young business people gathered to discuss further cooperation and to gain a greater understanding of the potential of Macau as a privileged trading post in multilateral relations. Alberto Carvalho Neto, of the Portugal-China Association of Young Entrepreneurs (AJEPC), explained that his association “has worked as a triangular association, which organises monthly information sessions in Portugal, in the Portuguese-speaking countries of Africa and in China.”