North-South cooperation has been extensively documented in the socioeconomic literature in which developed countries provide aid and multifaceted assistance to developing countries. However, the concept of South-South cooperation is relatively new.
The concept of South-South cooperation was established in 1974 by the United Nations General Assembly to encourage developing countries to work together.
The countries of the Global South have similar economic conditions and share the common goal of policies based on respect for national sovereignty and free from any conditionalities. Practically, developing countries will share their development objectives through knowledge, skills and technical know-how exchanges. The common ground is their determination to engage in development without bending under pressure from Western countries or international financial institutions. However, two main ingredients are lacking in the development process of developing countries: limited capital resources and technology.
South-South cooperation is a manifestation of solidarity among peoples and countries of the Global South guided by the principles of respect for national sovereignty, national ownership and independence, equality, nonconditionality, non-interference in domestic affairs and mutual benefit. China-Africa cooperation has set an excellent example for developing countries to carry out South-South cooperation.
China began to engage with Africa in the spirit of friendship and solidarity. In addition, China's discourse on development aid and commitment to non-interference found particular resonance with African countries as they emerged from colonization.
As for trade between China and Africa, the data indicates that it reached $140.88 billion in the first six months of 2023, up 3.1 percent from the same period in 2022.
It should also be noted that China is outclassing Western powers in infrastructure projects in Africa. Since the launch of the Belt and Road Initiative in 2013, China has made considerable investments in many countries in various sectors. Thanks to investment in infrastructure and the accelerated progress in establishing the African Continental Free Trade Area, connectivity has been boosting trade and promoting economic development in Africa.
In 2022, Chinese foreign direct investment in Africa totaled $3.4 billion. This volume of direct investment fully demonstrates the strength of economic and trade cooperation between China and Africa and the confidence of Chinese enterprises in the African market.
Beijing is now the fourth-largest source of foreign direct investment in Africa; more than 3,000 Chinese companies are already on the continent. Private companies now account for 70 percent of Chinese companies investing in Africa. The sectors in which these companies invest have expanded beyond natural resources, construction and mining to include manufacturing, technology, agriculture, real estate, finance and e-commerce, where China's investment in Africa promotes sustainable development and modernization.
China-Algeria cooperation is an example of successful cooperation between China and Africa, injecting vitality into South-South cooperation.
During his visit in July 2023, the Algerian president signed with his Chinese counterpart 19 agreements and memoranda in various sectors of activities for a Chinese investment volume of $36 billion.
Among significant Chinese investments in Algeria is the exploitation of the Gara Djebilet mine, which aims to extract two million metric tons of iron ore annually by 2026. The annual extraction capacity is expected to increase to 50 million tons by 2040. This will give play to Algeria's resource advantages and enrich China's import channel.
Another major project being carried out within the Belt and Road Initiative framework is that of an expansive 6,000 kilometers of railway lines, which will facilitate the exploitation of mines, promote trade, and create economic vitality in Algeria.
China and Algeria have been linked by a comprehensive strategic partnership since 2004.Since then, China has gradually become one of Algeria's main trade partners. In 2019, China became Algeria's number one trade financing country. Trade between China and Algeria increased from $1 billion in 2003 to over $7 billion in 2022. The potential for trade will be even more remarkable when all aspects of the comprehensive strategic partnership are set in motion in the coming years. Such fruitful cooperation is only a microcosm of China-Algeria and China-Africa cooperation.
In conclusion, it can be said that the role and place of Africa-China cooperation is bound to develop in the future as the need to stimulate economic and social development in Africa is great. Capital and technology lacking in African countries are now being secured step by step through their partnership with China. And China, as a country of the Global South, sensitive to the concerns of African countries, is called upon to assume a more proper role, thanks to these diverse potentialities, to enable African countries to initiate a development policy far from the external constraints that they were once subjected to by colonizing countries.
UCLG-ASPAC Committee on the Belt and Road Local Cooperation
CONTACT US
Secretariat of UCLG-ASPAC Committee on the Belt and Road Local Cooperation
Floor 18, Building C, Civic Center, 18 East Jiefang Road, Jianggan District, Hangzhou
secretariat-brlc@hzfao.gov.cn
Zip code: 310026
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North-South cooperation has been extensively documented in the socioeconomic literature in which developed countries provide aid and multifaceted assistance to developing countries. However, the concept of South-South cooperation is relatively new.
The concept of South-South cooperation was established in 1974 by the United Nations General Assembly to encourage developing countries to work together.
The countries of the Global South have similar economic conditions and share the common goal of policies based on respect for national sovereignty and free from any conditionalities. Practically, developing countries will share their development objectives through knowledge, skills and technical know-how exchanges. The common ground is their determination to engage in development without bending under pressure from Western countries or international financial institutions. However, two main ingredients are lacking in the development process of developing countries: limited capital resources and technology.
South-South cooperation is a manifestation of solidarity among peoples and countries of the Global South guided by the principles of respect for national sovereignty, national ownership and independence, equality, nonconditionality, non-interference in domestic affairs and mutual benefit. China-Africa cooperation has set an excellent example for developing countries to carry out South-South cooperation.
China began to engage with Africa in the spirit of friendship and solidarity. In addition, China's discourse on development aid and commitment to non-interference found particular resonance with African countries as they emerged from colonization.
As for trade between China and Africa, the data indicates that it reached $140.88 billion in the first six months of 2023, up 3.1 percent from the same period in 2022.
It should also be noted that China is outclassing Western powers in infrastructure projects in Africa. Since the launch of the Belt and Road Initiative in 2013, China has made considerable investments in many countries in various sectors. Thanks to investment in infrastructure and the accelerated progress in establishing the African Continental Free Trade Area, connectivity has been boosting trade and promoting economic development in Africa.
In 2022, Chinese foreign direct investment in Africa totaled $3.4 billion. This volume of direct investment fully demonstrates the strength of economic and trade cooperation between China and Africa and the confidence of Chinese enterprises in the African market.
Beijing is now the fourth-largest source of foreign direct investment in Africa; more than 3,000 Chinese companies are already on the continent. Private companies now account for 70 percent of Chinese companies investing in Africa. The sectors in which these companies invest have expanded beyond natural resources, construction and mining to include manufacturing, technology, agriculture, real estate, finance and e-commerce, where China's investment in Africa promotes sustainable development and modernization.
China-Algeria cooperation is an example of successful cooperation between China and Africa, injecting vitality into South-South cooperation.
During his visit in July 2023, the Algerian president signed with his Chinese counterpart 19 agreements and memoranda in various sectors of activities for a Chinese investment volume of $36 billion.
Among significant Chinese investments in Algeria is the exploitation of the Gara Djebilet mine, which aims to extract two million metric tons of iron ore annually by 2026. The annual extraction capacity is expected to increase to 50 million tons by 2040. This will give play to Algeria's resource advantages and enrich China's import channel.
Another major project being carried out within the Belt and Road Initiative framework is that of an expansive 6,000 kilometers of railway lines, which will facilitate the exploitation of mines, promote trade, and create economic vitality in Algeria.
China and Algeria have been linked by a comprehensive strategic partnership since 2004.Since then, China has gradually become one of Algeria's main trade partners. In 2019, China became Algeria's number one trade financing country. Trade between China and Algeria increased from $1 billion in 2003 to over $7 billion in 2022. The potential for trade will be even more remarkable when all aspects of the comprehensive strategic partnership are set in motion in the coming years. Such fruitful cooperation is only a microcosm of China-Algeria and China-Africa cooperation.
In conclusion, it can be said that the role and place of Africa-China cooperation is bound to develop in the future as the need to stimulate economic and social development in Africa is great. Capital and technology lacking in African countries are now being secured step by step through their partnership with China. And China, as a country of the Global South, sensitive to the concerns of African countries, is called upon to assume a more proper role, thanks to these diverse potentialities, to enable African countries to initiate a development policy far from the external constraints that they were once subjected to by colonizing countries.
