China and Africa poised to enhance collaboration in digital infrastructure for economic growth

Zhou Fang(CGTN)

Over the past decade, digital technology cooperation has been an important part of China-Africa collaboration, with historic breakthroughs achieved in digital infrastructure construction. As China advances digital trade and makes greater progress in areas such as AI, big data, and the Internet of Things, both sides are expected to deepen cooperation in digital technology, expand cooperation in more fields in services trade and explore resilient infrastructure to further enhance regional connectivity and stability and promote economic growth.

In 2006, digital technology was included in the China-Africa Cooperation Forum Action Plan. The Dakar Action Plan (2022-2024) released in 2021 further highlighted cooperation in this area. The Action Plan for China-Africa Digital Cooperation and Development released this July indicates that promoting digital development is crucial for achieving inclusive growth and sustainable development, serving as an important pathway to realize the China-Africa Cooperation Vision 2035.

Thriving China-Africa Cross-border E-commerce Cooperation

In recent years, e-commerce has flourished in many African countries, bringing new momentum to local economic and social development. It has also become one of the key areas of China-Africa cooperation. Quite a few Chinese companies have been contributing to Africa’s digital infrastructure and e-commerce development through funding, technical support and talent cultivation, with multiple Chinese e-commerce platforms having entered the African market.

According to a report by digital economy consultancy TechCabal Insights, in 2022, the e-commerce turnover in Africa was approximately 32.5 billion U.S. dollars and the figure is expected to increase to nearly 60 billion U.S. dollars by 2027. The number of online shoppers across the continent is estimated to reach from 388 million in 2022 to 610 million by 2027.

The foundation laid by years of China-Africa cooperation in digital infrastructure has played a pivotal role. Chinese enterprises are actively involved in building digital infrastructure in Africa, including submarine cables and land cables, 5G networks and data centers, increasing investments in e-commerce and mobile internet services. So far, Chinese companies have built over half of Africa’s wireless stations and high-speed mobile broadband networks and laid more than 200,000 kilometers of fiber optic cables, serving over 900 million people across the continent. More than 1,500 enterprises in over 15 African countries have chosen Chinese firms as partners in digital transformation. China and Africa have jointly established public cloud services in South Africa, serving the entire African region and launched Africa’s first commercial 5G independent network.

Building on a strong foundation and fruitful collaboration, China-Africa digital trade currently led by cross-border e-commerce is poised to yield even greater benefits as China actively implements measures to enhance its digital trade initiatives. The enhancement primarily includes further advancing the construction of digital infrastructure, such as expanding 5G network coverage, building data centers, and developing the Internet of Things. This will not only facilitate the high-quality development of domestic digital trade but also benefit China-Africa digital trade cooperation. Enhanced digital infrastructure will provide a more solid technological foundation for both sides’ digital trade, promoting upgrades in areas such as cross-border supply chain management, smart logistics, and digital payments.

Expanding Cooperation in More Service Trade Fields

Approximately 70% of service trade exports from African countries are traditional services, including transport and tourism. The further development of China’s digital trade and digital infrastructure will greatly benefit these services by enhancing efficiency, optimizing user experience, and promoting sustainable development. More comprehensive digital infrastructure provides a faster, more stable, and secure network essential for the digitization of transport services, while larger data centers can store and process vast amounts of transport data.

Further improved digital infrastructure systems can help African countries develop smart tourism driven by the Internet of Things, AI, VR, and AR technologies, significantly enhancing user experience and management efficiency. More advanced digital infrastructure will also facilitate payments and settlements in the transport and tourism sectors, greatly increasing the efficiency and security of capital flow.

Providing Resilient Infrastructure for Financial Cooperation  

In recent years, China’s financial industry has been increasing its efforts to support the development of Africa in different fields, such as infrastructure construction, digital technology development, and green development. Chinese financial institutions have cooperated with local financial institutions to significantly improve the quality of life and convenience for families in urban and rural areas in many African countries. The cooperation has even opened up new business formats in some countries, such as the Internet economy, online education, and smart cities.

Emerging technologies like cloud computing, IoT, blockchain and artificial intelligence have continuously given rise to innovative financial service models. As fintech develops rapidly and digital transformation accelerates, resilience in digital financial infrastructure has become very crucial for ensuring the stable operation of financial systems, mitigating financial risks, and supporting financial innovation.

China’s 14th Five-Year Plan specifically emphasizes the need to promote the security of core information technologies in finance, safeguard financial infrastructure, and strengthen the application of key digital technology innovations, affirming the necessity of building resilience in financial infrastructure.

Therefore, China and Africa can collaborate to build resilient infrastructure that serves both financial and other purposes by leveraging the technological expertise and experience of Chinese enterprises, supported by favorable policies.

Opportunities for cooperation are abundant within frameworks like the Belt and Road Initiative and the Forum on China-Africa Cooperation, which have been committed to promoting digitization and green development.

Additionally, the Asian Infrastructure Investment Bank can also contribute significantly as it is prioritizing technology-driven infrastructure and regional connectivity, while emphasizing the need for robust security in the application of digital technologies.