By Dumbani Mzale, contributor, in Changsha, China:
The third China-Africa Economic and Trade Expo took place in Changsha, the sprawling capital of central China’s Hunan Province.
The expo had one major aim and that is to welcome more “Made in Africa” products into China and boost business links between the two sides.
Themed ‘Common Development for a Shared Future’, the four-day event was attended by representatives from 53 African countries and multiple international organisations.
From the Malawi perspective, the expo chalked a historical chapter as the global showpiece was graced by her leader Lazarus Chakwera who courageously spoke on behalf of Africa, and did not mince words as he pushed for a leveling playing field between Africa and the Asian giant.
- Advertisement -
At the event, the number of exhibitors reached 1,500, up 70 percent from the previous expo held in 2021, symbolising growing interests by both China and Africa to trade together in a win-win fashion.
Myriad African products, including those from Malawi, were on display, in a seemingly quest to fulfil Chakwera’s dreams of implanting a buoyant trade route for Malawi while uprooting the aid route.
Strategically, at the expo, Malawi capitalised on tourism, agro-processing mining, arts and crafts, agriculture and tobacco.
From the continental perspective, it was an affair that brought in bulk Kenyan roses and Egyptian fragrances, as traders used the expo to explore the vast Chinese market
- Advertisement -
- Advertisement -
According to Minister of Trade Simplex Chithyola Banda, an unspecified number of deals has been struck by Malawi exhibitors and the rest of the world, a move he describes as a milestone and breakthrough for the $12 billion Malawi economy.
Tobacco industry boost
Following bilateral talks by President Chakwera and China Tobacco Monopoly Company, on the sidelines of the expo, it also pleased the latter to grant a “no objection” to its tobacco companies wishing to buy tobacco from Malawi, raising hopes of a potential surge in tobacco exports from Malawi to the Asia giant.
China Tobacco Monopoly Company is essentially a regulatory authority of the tobacco industry in China and as such, all tobacco imports are regulated by the company.
Following this new policy thrust, any Chinese firm wishing to buy tobacco from Malawi will have an opportunity to but any quantity without any restriction.
On this one, Chithyola Banda is over the moon.
“This is one of the key successes or highlights during this 2023 China-Africa Expo,” he says.
According to Chithyola Banda, so far, Malawi has already signed a Memorandum of Understanding (Mou) with one Chinese company which has committed to buying 10 million kilogrammes (kg) per year.
He said the expected 10 million kg shall include both burley and Flue Cured Tobacco in the next 2023-2024 tobacco marketing season.
Strengthened digital transformation agenda
Of special interest is another counted gain for Malawi reaped from the foreign trip, which culminated into the signing of an MoU on strengthening digital transformation between Huawei Technologies and two Malawian Ministries; the Ministry of Energy and the Ministry of Information and Digitalisation at the headquarters of Huawei in Shenzhen, China on Saturday.
Flipping through the MoU, the parties involved have unanimously agreed to cooperate in fields such as renewable energy, broadband connectivity, e-government, smart education, and ICT talent training.
By signing the MoU, the parties also expressed their willingness to collaborate in building off-grid solar power stations in rural areas of Malawi improving rural electrification.
The overall expectation is that this will improve the quality of life for rural residents and support agricultural, industrial and economically productive activities in rural areas which will create jobs and stimulate economic development.
Minister of Energy Ibrahim Matola believes the deal reflects some of the mega-trends of our time – digitalisation, decarbonisation, digital inclusion, and sustainable development, stressing that it will help Malawi to fulfil its potential in a more intelligent and sustainable way.
Chipping in, Minister of Information and Digitalisation Moses Kunkuyu assures that Malawi is committed to embark on the fast track of the digital economy, adding that by signing the MoU, Malawi believes that her co-operation with Huawei will be enhanced and enable the two parties work together for even greater achievements in the future.
Preaching Africa-China impartiality
As a special guest at the event, President Chakwera deemed it fit to candidly relay a strong message of hope and fairness between Africa and China.
To him, African countries must catch up their economic growth rates with that of China to ensure a win-win situation in-terms of trade and investment.
Amid strong disparities in growth rate by Africa and China, Chakwera implored that it is necessary for the economic growth of China and Africa to be exponential going forward “because we have a lot of catching up to do.”
And so, if we are ever going to catch up economically, we must reject any formula for economic growth that was designed to keep our progress and prosperity at a snail’s pace.”
He also described the 2023 edition of the Expo as a defining moment for the global economy, stressing that the event it puts on display a fact that China and Africa are not only indispensable players in the global economy, but are also partners in the shared and common pursuit of prosperity against many structural odds stacked against them.
According to statistics, China and Africa represent one-third of the global population, which translates to one-third of the world’s consumers of goods and services that are traded anywhere in the world.
On the other hand, China and Africa represent one-fifth of the world’s Gross Domestic Product.
“Those of us from Africa have gathered here with dignity, not as beggars, but as traders, for our desire in our relationship with any country is to come as partners seeking our rightful stake in the prosperous future that partnerships like this will create for the world in the coming years and decades,” Chakwera added.
