Editor's note: Sun Hong is an associate research fellow at the Institute of African Studies of the China Institutes of Contemporary International Relations. The article reflects the author's views, and not necessarily those of CGTN.

The first China-Africa Economic and Trade Expo (CAETE) kicked off on June 27 in Changsha, the capital city of Hunan Province. Business delegations from 53 African countries have met their Chinese partners to ink more deals. Over 10,000 guests and traders are registered for this three-day event.

CAETE is part of the eight major initiatives announced by President Xi during the Beijing Summit of Forum on China-Africa Cooperation (FOCAC) last September. It will be held every two years and serve as a platform for business-to-business dialogues between China and Africa. During the three-day event, major topics like agriculture, infrastructure and financing will be touched upon, which are exactly the imminent concerns for African countries. It’s also estimated that along with the deals that have already inked at the coordinators' meeting days ago, the total deals will be at least 200.

The inauguration of the Expo coincides with the coming into effect of the African Continental Free Trade Agreement (AfCFTA), which aims to reduce intra-Africa trade tariffs on 90 percent of goods and to create a single market for 1.2 billion people. If fully implemented, the AfCFTA will significantly boost intra-continental trade by 15 percent to 25 percent. External trading partners, including China will definitely benefit from this historical agreement.

In this regard, China should grasp this opportunity to upgrade its current economic cooperation with the continent. 

Take agriculture for example. More than 350 agricultural products, including stevia and avocado from Kenya, South Africa’s Alfalfa Hayare, etc, could be purchased now by Chinese consumers. Agriculture employs approximately 80 percent of the workforce in Africa. So it plays a central role in job creation and poverty alleviation.

China has contributed a lot by setting up over 20 Agricultural Technology Demonstration Centers (ATDCs) in Africa to train local farmers. To further promote cooperation in this sector, one way is to import more African farm products. Coffee bean from Ethiopia, beef from South Africa, pineapple from Togo, to just name a few, will be popular among Chinese consumers. If imported in large volume, the average transportation cost could be reduced significantly.

Another way is to invest in agribusiness. Stabilizing production and then setting up small factories could be a choice for the small medium enterprises (SME), aiming at domestic market first and then expanding to neighboring countries. For larger investments, regional hubs with relatively mature business environment, especially good transport, such as Ethiopia, Kenya, Senegal, etc, could be a good location to run business.

The digital economy is another area where efforts could be made. To the surprise of many, Africa has a digitally connected population of 400 million, second only to China. Internet coverage in some countries surpasses 50 percent and reaches 70 percent in Kenya. So it's quite common for Africans to use mobile applications in daily life. Take e-commerce, for example. This booming sector gives local consumers an access to unlimited choice of products, which is in sharp contrast with the traditional retailing channels, especially for those who live in remote areas. According to a research, online shopping in Africa could reach 75 billion U.S. dollars by 2025. Chinese investors could be a part of this change by offering experience, technical support, big data service, and most importantly, more varieties of product. For better local adaptation, Chinese investors may find it easier to work with local digital giant, Jumia in Nigeria, Takealot in South Africa, etc.

China has been and will always be a committed partner for Africa. CAETE is just another witness of the bilateral win-win cooperation. With a united Africa, the two could achieve a much closer partnership no matter how the world changes.

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