In 2017, the Ministry of Commerce initiated the ‘Look Africa’ policy to enhance trade ties with Africa, which was later merged into the “Engage Africa” policy.
This initiative was designed to deepen, revive and reinforce relations with African nations.
Pakistan has historical ties with many African countries, stemming from its contributions to UN peacekeeping missions across various regions of Africa.
Despite this, these relations remained underdeveloped due to limited focus and geographical distance.
The aim of the policy was to build upon existing relations for mutually beneficial collaboration.
It sought to capitalize on Africa’s growing markets by fostering economic partnerships, joint ventures, trade linkages and improving connectivity.
Under the policy, the top 10 African economies—such as South Africa, Egypt, Morocco, Sudan, Algeria, Angola, Tanzania and Ethiopia—were identified for trade enhancement, with the goal of doubling trade by 2025.
Another key aspect was negotiating Preferential Trade Agreements (PTAs) with African trading blocs like ECOWAS, SACU and EAC.
Africa, with its vast population, expanding middle class and vibrant economy, offers a significant market for investment and trade.
Over the past two decades, China has become Africa’s largest bilateral trading partner, with around 20% of the region’s exports heading to China and 16% of its imports coming from the country.
In 2023, trade between China and sub-Saharan Africa reached a record $282 billion.
Africa primarily exports raw materials like fuel, metals and minerals, while importing Chinese manufactured goods, including machinery and electronics.
China has also emerged as Africa’s biggest creditor, offering financing for energy and mining projects.
This has significantly increased its share of Africa’s external debt, which rose from less than 2% in 2005 to 17% ($134 billion) in 2021.
Through the Belt and Road Initiative (BRI) and the Forum on China-Africa Cooperation (FOCAC), China and Africa deepened their economic cooperation, aligning the BRI with the African Union’s Agenda 2063, a strategic plan for the continent’s transformation over the next 50 years.
China has rapidly expanded its presence in Africa, establishing a network of 53 embassies and becoming the region’s largest trading partner.
Pakistan could leverage the China-Pakistan Economic Corridor (CPEC) to collaborate with China on initiatives targeting Africa.
Pakistan might consider setting up a trilateral special economic zone with China and African countries to enhance economic cooperation.
Additionally, with China’s assistance, Pakistan could prioritize agreements with countries affiliated with the BRI.
Africa views the BRI more positively than any other region outside China.
Pakistan’s engagement in regional organizations like the African Development Bank and the African Union demonstrates its commitment to cooperation on sustainable development.
In 2022-2023, trade between Africa and Pakistan reached $4.44 billion, with key exports including pharmaceuticals, rice and textiles, while imports included tea, coal, cotton, and petroleum.
China’s presence in Africa could ease the entry for Pakistani companies, reducing the risks associated with exploring new markets.
Moreover, China’s technical and financial expertise could help Pakistan secure better investment and trade deals.
Five years ago, it took at least three months for African coffee beans to be shipped to China; now, the process can take a month or less.
The faster shipping times for African coffee reflect the growing momentum of China-Africa trade, with China remaining Africa’s largest trading partner for 15 consecutive years.
The 2024 FOCAC Summit outlines that, in the next three years, China will collaborate with Africa to implement 10 partnership actions for modernization, including enhancing trade prosperity, which is expected to increase demand for goods from countries like Pakistan and open new avenues for export expansion.
In conclusion, China’s involvement in African infrastructure development could help Pakistan reduce logistical costs for its exports.
Pakistan could also explore key sectors—such as agriculture, pharmaceuticals, and textiles—where its products and services are in demand, benefiting from Chinese companies’ presence in the African market.
By engaging China in its “Engage Africa Policy,” Pakistan could learn from China’s reform model to address its geopolitical and economic challenges.
By opening itself to the world, attracting global investment, improving economic governance, reforming state institutions, and creating a conducive environment for the private sector, Pakistan can pave the way for sustainable growth.
These efforts would not only foster bilateral trade with African nations but also strengthen Pakistan’s long-standing relationships with them.
Moreover, Pakistan can explore potential synergies with China’s vast network of infrastructure projects across Africa.
With China’s expertise in building critical infrastructure, such as roads, ports, and railways, Pakistan can partner in the development of similar projects that benefit both Pakistani and African businesses.
This could significantly enhance trade connectivity, reducing transportation costs and improving logistics for Pakistani exports.
By actively participating in these infrastructure developments, Pakistan can also open new channels for economic diplomacy, positioning itself as a key player in facilitating African access to international markets.
This would not only boost Pakistan’s economic influence in Africa but also solidify its role in the broader geopolitical landscape.
