By Han Chunlin

The Fifth Ministerial Conference of the Forum on China-Africa Co-operation (Focac) concluded this past week.

The past three years have witnessed the remarkable progress in China-Kenyan economic and trade co-operation. The Chinese government made great efforts in implementing the eight new measures announced by the Chinese government at the Fourth Ministerial Conference of Focac in 2009.

China has implemented the new measures in various sectors that include medical care, human resource development, education, credit and financing among other development sectors.

Medical equipment

In terms of co-operation in medical care and public health service, China has funded the construction of the Malaria Prevention and Treatment Centre and the Mama Lucy Kibaki Hospital in Nairobi. It has also provided 10 million RMB Yuan worth of medical supplies and equipment to the hospital. Another batch of medical equipment will be delivered soon.

In terms of co-operation in human resource development and education, China has gradually expanded the scale of the training programme for Kenyan officials and technicians and organised multilateral and bilateral training courses. Over the last three years, the number of trainees have increased steadily from 158 in 2009 to 398 last year. The training also covered a wide spectrum, including economy and trade, agriculture, medical service, communication and education, among others.

New energy

With regard to co-operation in development and use of new energy, China has agreed to provide Kenya with 490 sets of small scale solar energy equipment, constructed the Irati Small Hydropower Station and the Chemoisit Small Hydropower Stations; and drilled seven boreholes in the Eastern and Rift Valley provinces. The use of new energy is a key development strategy pursued by Kenya to drive the other major sectors of the economy.

With regard to credit and financing, China has offered concessional loans and preferential export buyer’s credit to support a large number of infrastructure projects and social development projects in Kenya with a total credit amounting to billions of RMB Yuan.

These include Nairobi Eastern and Northern Bypass, Nairobi Southern Bypass, Nairobi-Thika Highway (Lot 3), Kenya Power Distribution Upgrading and Strengthening Project, Kenya E-government Project, Technical Industrial Vocational Entrepreneurship Training Project, Olkaria Geothermal Field Production Well Drilling and Kenyatta University Teaching and Referral Hospital.

China has also offered Special Loan for the Development of African small and medium enterprises (SMEs) in Africa to support the Kenyan SMEs in the areas of tea production, power generation, rural power grids and regional aviation.

Chinese companies

In addition, China has made rapid progress in the engineering contracting market since 1985, and continuously expanded their market share. Chinese companies in compliance with internationally accepted standards built transport, communication and electricity infrastructure in Kenya to improve local conditions for economic growth and self-development capacity.

The projects include Nairobi-Thika Highway, Marsabit-Turbi (A2) Highway, the new Unit 4 Passenger Terminal at Jomo Kenyatta International Airport, and Berth No.19 at the port of Mombasa.

China has made investments in different areas, such as motorcycle and car manufacturing, energy development, building materials, real estate and tourism. China’s increased investment has seen it becomes the second-largest source of foreign direct investment in Kenya last year.The cumulative direct investment is about $280 million.

Last year, China-Kenya trade increased to $2.434 billion, a year-on-year growth of over 30 per cent or 17.8 times that in 2000. China’s exports and imports from Kenya reached $2.369 billion and $64.87 million.

With regard to development assistance, China has completed the construction of Moi International Sports Centre, JKIA-Uhuru Highway-Gigiri (Unep) Roads, Gambogi-Serem Road, and a number of rural primary schools, the projects are all aimed improving the Kenyan economy.

Last year, when Kenya suffered severe drought and famine, the worst in 60 years, the Chinese government donated rice, flour, cooking oil and other basic necessities worth Sh1.8 billion, which was a friendly gesture towards Kenya in appreciation of the closer ties and concern for each other’s welfare.

Effective mechanism

Focac was established 12 years ago and has become an important platform for collective dialogue and an effective mechanism for practical co-operation between China and Africa. It enhances political mutual trust and leads to economic and trade co-operation.

China is Africa’s largest trading partner. Meanwhile, Africa is now the second largest overseas project contracting market and fourth largest overseas investment destination for China.

Being the first ministerial conference in the second decade in this century of the Forum since its establishment, the Fifth Focac Ministerial Conference will serve as a major link between the past and future in developing China-Africa relations.

Both sides will make assessments on the implementation of the follow-up actions of the Fourth Ministerial Conference in 2009, map out China-Africa relations development and co-operation in various fields in the next three years and draft the outcome documents.

China will continue to propose the new economic and trade measures for strengthening China-Africa co-operation, further supporting Africa in developing economy, improving people’s livelihood, and raising the capacity building levels. China-Africa economic and trade co-operation will thus usher in new opportunities.

Tourism, manufacturing, clean energy, agriculture, construction, ICT and financial services are key drivers of Kenya’s development goals. We would like to share our experience and enhance our co-operation in these areas.

Under the impetus of the Fifth Ministerial Conference of Focac and through concerted efforts of both sides, the bilateral economic and trade co-operation is bound to reach a new high and benefit both countries.

The writer is the Economic and Commercial Counsellor at the Chinese Embassy in Kenya