III. Strengthening Cooperation in Agriculture and Food Security

Agriculture is crucial for stable development and poverty reduction efforts in Africa. It is a pillar industry and a priority field for development in most African countries. China and Africa see favorable conditions and broad prospects for future agricultural cooperation. The Chinese government attaches great importance to its mutually beneficial agricultural cooperation with Africa, and works hard to help African countries turn resource advantages into developmental ones and sustainably develop their agricultural capacities.

In recent years, Sino-African trade in agricultural products has grown quickly. From 2009 to 2012, China's agricultural exports to Africa grew from US$1.58 billion to US$2.49 billion, an increase of 57.6%. During the same period, China's agricultural imports from Africa grew from US$1.16 billion to US$2.86 billion, a 146% increase. Most imported agricultural products are non-food items, including cotton, hemp, silk, oilseeds and other such products.

A major reason for the rapid increase in Chinese imports of African agricultural products is the zero-tariff policy that the Chinese government adopted in 2005 for some African products. Agricultural products are a major category benefiting from this policy and, as a result, the export of specialty African agricultural products to China has grown rapidly. One example of the impact of this policy is provided by sesame. China started importing small amounts of sesame from Africa in 2002. After the zero-tariff policy was adopted, sesame imports grew rapidly, from US$97 million in 2005 to US$441 million in 2011, an annual increase of 28.7%. This rate of import increase is higher than the average growth rate of all products imported from Africa during the same period.

In recent years, Chinese enterprises have invested in Africa in such fields as breeding improved seeds, planting grain and cash crops, and processing agricultural products. From 2009 to 2012, China's direct investment in African agriculture grew from US$30 million to US$82.47 million, a 175% increase. Investment by Chinese enterprises in African agriculture has increased grain supplies in the countries concerned and enhanced the comprehensive agricultural productivity of those countries. In Mozambique, for example, 300 hectares of experimental paddy fields supported by Chinese investment yielded 9-10 tons per hectare for three successive years. With the help of Chinese rice experts, local farmers see their paddy fields yield five tons per hectare, two tons more than previous yields. In Malawi, Mozambique and Zambia, Chinese enterprises and the China-Africa Development Fund jointly invested in a cotton planting and processing project modeled on having enterprises work with farming households. The project was able to involve tens of thousands of local growers, effectively enhancing local capabilities in cotton processing.

Chinese enterprises have also worked to improve local farmland, water conservancy and conditions for agricultural production. Currently, the biggest agricultural project in Rwanda is a farmland improvement project supported by investment from the African Development Bank and contracted to Chinese enterprises. When completed, the project will effectively control major rivers and improve the utilization of water resources in Rwanda.

The Chinese government has tried to enhance Africa's self-reliance capacity to develop its agriculture by providing assistance in the construction of demonstration centers of agricultural technology, and sending senior agricultural experts and technicians to teach the locals managerial experience and practical techniques in agricultural production. Since 2006, China has helped set up 15 agricultural demonstration centers in Rwanda, the Republic of Congo, Mozambique and some other countries, and is planning to establish another seven. At the same time, China has sent technical groups and several hundred technicians to Africa to provide policy consulting, teach practical techniques and train local staff. With China's aid in a project to breed high-yield and high-quality crop varieties, Chad sees its yields grow by over 25% on over 500 hectares planted with improved varieties, and several thousand farmers trained.

In the future, China will advance agricultural cooperation with Africa in all respects while ensuring that this cooperation puts both parties on an equal footing, is mutually beneficial, and advances common development. It will work to establish and improve a mechanism for bilateral agricultural cooperation, and strengthen Sino-African cooperation in the sharing of agricultural technologies, resource varieties and agricultural information, the processing and trade of agricultural products, agricultural infrastructure construction, and human resource training. China will continue to encourage and support investment by established Chinese enterprises to put money into agriculture or technological cooperation in Africa. It will arrange and launch an appropriate number of agricultural demonstration centers in African countries, depending on their actual needs. China will also work to deepen Sino-African cooperation within the frameworks of the United Nations Food and Agriculture Organization (UNFAO) and the International Fund for Agricultural Development.

IV. Supporting African Infrastructure Construction

Infrastructure construction is a starting point for improving the investment environment and people's livelihoods in Africa, and is of great importance for poverty reduction and development on the continent. The Chinese government encourages enterprises and financial institutions to participate in African infrastructure construction, including transportation, communications and electric power projects, in a variety of different ways. In 2012, Chinese enterprises completed construction contracts worth US$40.83 billion in Africa, an increase of 45% over 2009, accounting for 35.02% of China's overseas contract work completed. Africa has been China's second largest overseas contract market for four successive years. Capital, equipment and technologies from China have effectively helped reduce construction costs for African countries and, as a result, their infrastructure situations have gradually improved. 

Chinese enterprises have built numerous city roads, expressways, flyovers, railways and ports in Africa, effectively improving traffic conditions there and enhancing economic and trade development and personnel exchanges between African countries. In Angola, Chinese enterprises undertook the contract for a project that involved repairing a railway running from east to west through the country.

Chinese communication enterprises have participated in the construction of communication facilities in Africa, such as backbone fiber-optic transmission networks, fixed-line telephone lines, mobile communication and Internet facilities, expanding the coverage of Africa's telecommunication network, raising the network's performance quality and reducing communication costs. A contract to build a fiber-optic transmission backbone network in Tanzania was also taken on by Chinese enterprises. The network will cover major provinces and cities in Tanzania, link it with six neighboring countries and connect it to seabed optical cables in East and Southern Africa. After the network is completed, there will be three backbone loops, one each in northern, southern and western Tanzania, and eight international transit links, making communications of East Africa more integrated.

China has also worked closely with African countries in building hydropower stations and power grids, alleviating power crises that have long plagued some African countries. In 2010, Chinese enterprises started to build the Malabo Gas Plant in Equatorial Guinea. After the plant is completed, the country will have a complete power supply system, from power generation to power transmission and power transformation. This will improve the power supply conditions of Malabo City and Bioko Island while promoting agricultural irrigation and ecological tourism in surrounding areas.

The Chinese government and Chinese financial institutions have offered a great number of concessional and commercial loans to Africa for its infrastructure construction. From 2010 to May 2012, China approved concessional loans worth a total of US$11.3 billion for 92 African projects. For example, the Addis Ababa-Adama Expressway of Ethiopia and the Kribi Deep-water Port of Cameroon were both funded by concessional loans from China. Some of China's main commercial banks have also started buyer's credit businesses in Africa, supporting the power grid in Ghana, hydropower stations in Ethiopia, a west-east expressway in Algeria, and other projects.

While undertaking infrastructure projects in Africa, Chinese enterprises have paid attention to localized operation and management styles, and taken an active part in programs benefiting local people. For example, large Chinese communication companies in Africa have raised their localization rate to above 65%. They have also cooperated with 1,200 local subcontractors, indirectly providing more than 10,000 job opportunities. In Zambia, Chinese enterprises have repaired roads, hospitals and houses of some mines, and donated sports facilities for communities and money for charity activities, making positive contributions to local development.

Infrastructure construction is a significant part of Africa's further economic and social development. China will deepen cooperation with Africa in transportation, communications and other infrastructure fields to improve people's livelihoods, steadily push forward Sino-African trans-national and trans-regional infrastructure construction partnerships, and enhance exchanges and cooperation in the field of regional integration so as to help Africa improve its capacity for integrated development.