Multiplier effect

China and African countries have a long-standing relationship based on mutual respect and equality. China supported African nations in their fight for independence from colonial powers, while African countries backed China's position in international forums, leading to its reinstatement in the United Nations Security Council in 1971.

China has emerged as Africa's largest trading partner, demonstrating its commitment to deepening ties with the continent. The Chinese government's dedication to this partnership is evident in its participation in the China-Africa cooperation forums. Recognizing the importance of trust in any partnership, China has aligned its initiatives with the African Union's Agenda 2063, a 50-year development plan. This alignment demonstrates China's commitment to supporting Africa's long-term goals. The China-Africa partnership serves as an exemplary model for global powers seeking to engage with Africa. China's approach prioritizes collaboration and mutual benefit, fostering a strong and sustainable relationship. Through its commitment to economic cooperation, alignment with African priorities, and emphasis on mutual respect, China has solidified its position as a true friend and partner of Africa.

China and African nations have established a solid foundation for cooperation in various fields, including economic, political, cultural, technological, educational, and other sectors. This collaboration is evident at both the bilateral and multilateral levels, with China consistently supporting developing countries in safeguarding their interests. Key initiatives such as South-South Cooperation, the Forum on China-Africa Cooperation and the Belt and Road Initiative facilitate partnerships and mutual benefits between China and Africa.

Africa now stands at a pivotal moment in its development journey. The continent faces significant challenges, from poverty and inequality to infrastructure deficits and climate change impacts. Yet, Africa also holds immense potential with its youthful, dynamic population, abundant natural resources and growing economic base.

To unlock this potential, Africa needs robust development partnerships, partnerships that mobilize finance, expertise and innovative approaches. Two key players in this effort are multilateral development banks and China.

Multilateral development banks, such as the World Bank, African Development Bank, and others, have long been central to Africa's development. They provide crucial financing for infrastructure, social services and private sector growth. Increasingly, they are also catalyzing private capital and supporting policy reforms. At the same time, China has emerged as a major development partner in Africa over the past two decades. Through initiatives such as the FOCAC and the BRI, Chinese investment has flowed into African countries, financing large-scale infrastructure projects, industrial parks and more. China has also provided significant volumes of development assistance, debt relief and concessional loans.

However, the evolving development landscape in Africa calls for a new era of more coordinated, transparent and sustainable development partnerships. We must find ways for multilateral development banks, China and other actors to collaborate effectively, leveraging their respective strengths and expertise. Multilateral banks, China and African countries must work together to identify shared development goals and align their strategies and investments accordingly. This will maximize impact and avoid duplication of efforts.

All partners must commit to greater transparency around financing terms, project selection, and implementation. Robust governance frameworks, inclusive of civil society, will therefore be critical.

Leveraging the expertise of multilateral banks, we must find innovative ways to crowd-in private investment for sustainable infrastructure, enterprise development and other priority areas.

Development partnerships should prioritize building local skills, institutions and technological capabilities in African countries. This will enable greater self-reliance and resilience.

As debt levels rise, new approaches are needed to ensure debt remains sustainable, including debt restructuring mechanisms and alternative financing models.

To better coordinate their development efforts in Africa, multilateral development banks and China can pursue several key strategies:

Joint coordination mechanisms, with representation from African governments, to create dedicated coordination platforms and to facilitate regular dialogue and information sharing between MDBs and China, should be established. These mechanisms could help align development strategies, coordinate investment plans, and resolve potential disputes. Establishing joint steering committees or technical working groups could provide structured forums for collaboration.

Harmonize standards and safeguards to align the environmental, social and governance standards used by MDBs and China for their overseas investments. Develop a shared set of high-quality safeguards that prioritize sustainability, transparency and local community engagement. This could involve policy reforms that mandate the use of these harmonized standards for all cofinanced initiatives.

Increase transparency around project selection, financing terms and implementation progress. Introduce joint disclosure requirements that provide comprehensive information on key project details, including debt terms and procurement processes. Establish joint monitoring and evaluation frameworks to track the outcomes and impacts of development initiatives.

Leverage comparative advantages to identify and capitalize on the unique strengths and capabilities of MDBs and China. MDBs possess deep expertise in areas such as policy reform, institutional capacity building and social development programming. China's strengths lie in its ability to mobilize large-scale infrastructure financing and its growing technical capabilities. Strategically combining these complementary capabilities can deliver more impactful, holistic development solutions.

Empower African agency and ownership to ensure that development priorities and strategies are driven by African countries themselves, reflecting their national development plans and local needs. Engage more deeply with African regional institutions, civil society and the private sector to enhance local ownership and participation. Build the capacity of African governments and communities to lead the design and implementation of development initiatives.

Mobilize diverse financing to leverage MDBs' convening power and financial expertise to catalyze private investment through innovative financing mechanisms, such as blended finance and risk-sharing facilities. Integrating China's development finance with these broader financing frameworks would enable it to achieve greater scale and impact. Explore cofinancing arrangements that pool resources and align investments toward common development goals.

By implementing these strategies, MDBs and China can forge more effective, sustainable, and impactful development partnerships in Africa. This will be crucial to unlocking the continent's vast potential, addressing its immense development challenges, and achieving the UN Sustainable Development Goals. It has to be recalled that the path forward will require strong political will, creative solutions and a genuine commitment to inclusive, country-led development from all parties involved. But the potential rewards are immense, both for Africa and the global community as a whole.

By addressing these priorities together, we can build a new era of global development transition partnerships in Africa, partnerships that are transparent, inclusive and focused on delivering lasting, equitable progress. Most importantly, African countries themselves must be empowered to shape these evolving partnerships according to their national development plans and local needs. Genuine country ownership and leadership will be critical.

Ethiopia's engagement with China dates back several decades and has evolved significantly over time. Recently, the China-Ethiopia relationship has transformed into an all-weather strategic partnership. Ethiopia is also an active member of the FOCAC and the BRI, which have helped to realize a number of connectivity projects and industrial parks; it has also recently joined BRICS. Reviewing the course of relations between Ethiopia and China so far, reflecting on the historical context of Ethiopia's relationship with China and the factors that have shaped it, as well as the development assistance we have enjoyed, and the growing economic cooperation between the two nations, will provide invaluable insights to help ensure utmost dividends for both nations.

Multilateral banks, China and African nations should work together to forge a new era of transition partnerships that deliver lasting, equitable progress for all. The future of Africa, and indeed, the world, depends on it.

The author is director-general of the Ethiopian Institute of Foreign Affairs. The author contributed this article to China Watch, a think tank powered by China Daily.

Contact the editor at editor@chinawatch.cn.