China–Africa cooperation: Struggling commodities and the silver-lining in the innovation economy

Abstract

Recently, African economies that withstood the global economic crisis out of increased cooperation with China are reeling from the country’s declining demand for primary commodities, as it shifts to a domestic-driven growth model. Consequently, Sino-scepticism has rebounded on the premise that the downturn in major African markets is an aftermath of the indentured capitalism fuelling ‘China in Africa’. However, China and Africa can instrumentalise (inter)dependency in their economic engagement, particularly as they undergo unique economic transformations. These changes reveal more diverse avenues for productive investment and beneficial economic cooperation, and demand that both sides place a great deal on appropriate responses to internal and externalist adjustments of their economies. In light of China’s strategic pivot to innovation, it is useful to recommend the exploration of the digital innovation economy where Africa is fast gaining global recognition. With the promise of cross-cultural cooperation in business and technology, the adoption, building and implementation of strategies placing innovation as an integral part of China–Africa cooperation, will ensure China’s investments support Africa’s diversification from commodities trading more constructively, and in a manner that neatly keys into the former’s multipolar vision for technological governance.

The Forum on China–Africa Cooperation (FOCAC) and knowledge transfer in Sino-Nigerian development cooperation

“…Nigeria on the other hand, a mono-cultured economy dependent on oil as the dominant source of its revenue, seeks to also shed its dependence on commodity business and become a global economic player by 2020, of course with the technological and human capacity to drive industrialization at home and extend the transformation region-wide. The country hopes to leverage its considerable share of African human capital producing radical innovations that are disrupting traditional markets, and addressing broad socio-economic challenges, sometimes without science, technology, engineering and maths (STEM) education (Ibonye, 2017: 171–172), in leapfrogging its current development path. However, the national knowledge base necessary to galvanize industrialization towards a knowledge-driven economy, as quickly as possible, is deficient at this time.…”