Chinese Central SOEs: A Main Force for China-Africa Economic, Trade Cooperation

The First China-Africa Economic and Trade Expo (CAETE) opened in Changsha, capital of Hunan province on June 27.

Themed "Win-win Cooperation for Closer China-Africa Economic and Trade Partnership", the event focuses on trade and investment promotion and cooperation in key fields like agricultural technologies, energy and power, cooperative parks and infrastructure construction as well as financing.

A total of 12 Chinese central SOEs participated in the exhibition.

They were State Grid Corporation of China (State Grid), China Telecommunications Corporation (China Telecom), China National Machinery Industry Corporation Ltd (Sinomach), China General Technology (Group) Holding Co., Ltd (Genertec Group), China State Construction Engineering Corporation (CSCEC), China Merchants Group (CMG), China National Building Materials Group Co., Ltd (CNBM), China Nonferrous Metal Mining (Group) Co., Ltd (CNMC), CRRC Corporation Limited (CRRC), China Railway Group Limited (CREC), China Railway Construction Corporation Limited (CRCC) and China Communications Construction Company Limited (CCCC).

Chinese central SOEs under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) are a main force in the construction of the Belt and Road and promotion of China-Africa economic and trade cooperation.

To date, 47 Chinese central SOEs have participated in more than 1,800 projects in 51 African countries in areas like infrastructure construction, energy resource development and international capacity cooperation.

They have also contracted many demonstration key projects which have contributed to economic growth, livelihood improvement and industrial promotion in the affected countries.

Chinese central SOEs also played significant roles in the implementation of the African Union's 2063 Agenda and United Nations' 2030 Agenda for Sustainable Development.

The First China-Africa Economic and Trade Expo (CAETE) opens in Changsha, capital of Hunan province on June 27. [Photo/sasac.gov.cn]

Adhering to innovation-driven development

The new technologies, industrial forms and modes highlighted by Chinese central SOEs to accelerate Africa's technology revolution and industrial transformation will promote the continent's economic development.

China Telecom participated in construction of Africa's information highway and contracted several national optical cable projects as well as construction of smart schools, intelligent hospitals and informationalized police stations.

CNBM launched a joint laboratory with Egyptian and Ethiopian partners to develop and research new materials like high-performance glass fiber to drive development of all of Africa.

Development, a priority of cooperation

Chinese central SOEs have taken full advantage of their experience in infrastructure construction to participate in main projects promoting mutual connection, industrialization and urbanization in African countries.

CREC and CRCC constructed the Addis Ababa-Djibouti Railway which became a transportation artery between Ethiopia and the Gulf of Aden. The bridges, roads and airports that built by the companies become new supports for local economic growth.

The Addis Ababa-Djibouti Railway, jointly constructed by CREC and CRCC, has become a transportation artery between Ethiopia and the Gulf of Aden. [Photo/sasac.gov.cn]

In addition to infrastructure construction and investment, CREC has been engaged in fulfilling social responsibilities, devoting itself to basic livelihood projects and providing training lectures to build a community with a shared future for China and Africa.

For instance, a modernization project of the Abuja-Kaduna railway in Nigeria was contracted and later operated by CRCC. The total distance of the section is 186.5 kilometers and the designed speed can reach 150 kilometers per hour. It is the first modern overseas railway in service built to Chinese standards.

The Mombasa-Nairobi Standard Gauge Railway, contracted by CCCC, is currently a main part of East Africa's railway network and is hailed as "the Century Railway" by Nigerians.

An overview of the Mombasa-Nairobi Standard Gauge Railway [Photo/sasac.gov.cn]

CCCC has also participated in many projects such as roads, bridges, ports, railways, airports and housing in Africa.

State Grid contracted the EETC500 kV power transmission project in Egypt which realized a complete restructuring of the old electricity transmission facilities in the affected area. The project largely improved power transmission capacity and safety, which promoted regional economic development.

The electricity transmission lines involved in the EETC500 kV power transmission project in Egypt [Photo/sasac.gov.cn]

Responsibility, a base of construction

During the construction, Chinese central SOEs adhered to principals of localization, ecological environment protection and devotion to public welfare, which played an active part in improving local living standards, promoting harmonious development and increasing cultural exchanges.

The garbage power project in Ethiopia contracted by Sinomach is a livelihood project that meets the demands of local people's daily lives and at the same time accords with the idea of green development.

Genertec Group constructed the Akossado-Bohicon Road in Benin and then built primary schools and bookstores for young people along the road.

Meanwhile, Genertec Group also contracted the photovoltaic project in Algeria, a typical clean energy project, which provides local people with clean and green energy and avoids 34,491.7 tons of carbon dioxide emissions.

It is worth mentioning that there was no gas, liquid or solid waste or sound pollution produced during the construction, which protected and improved the local ecological environment.

The Akossado-Bohicon Road in Benin [Photo/sasac.gov.cn]

A China-Benin Friendship School [Photo/sasac.gov.cn]

Integration, a lasting pursuing

Chinese central SOEs have built communities with shared profit in Africa through strategic cooperation in projects, joint ventures and industrial chains.

For example, CMG's Djibouti International Free Trade Zone project and CNMC's Zambia-China Economic and Trade Cooperation Zone project brought in industries that can make full use of local advantageous industries and promote local industrialization to realize mutual development of governments, enterprises and communities.

CRRC's locomotive project in the Republic of South Africa not only contributed to the country's tax revenue, improved its employment rate and trained talents, but also supported the development of middle and small-sized enterprises along the upstream and downstream of the country's industrial chains.

SASAC and Chinese central SOEs will continue to invest in and contribute to Africa and will keep promoting China-Africa economic and trade cooperation to build a community with a shared future for the two countries.

CNMC's Zambia-China Economic and Trade Cooperation Zone [Photo/sasac.gov.cn]

Staff members of the Mombasa-Nairobi Standard Gauge Railway project undergo training. [Photo/sasac.gov.cn]

(Executive editor: Hao Wen)