00:11Hello and welcome to this new edition of Business Africa.
00:15I'm Yasemin El-Bassire. Here are the headlines.
00:18Africa is now sending more money to China than it's receiving.
00:22Between declining loans and rising trade, Sino-African cooperation is shifting its focus towards the real economy.
00:30In Libya, the liquidity crisis is paralyzing the economy.
00:34Limited cash withdrawals, a shortage of banknotes and failing electronic payments are making daily life difficult for citizens.
00:42Abidjan is positioning itself as a regional hub for creativity.
00:46Its cultural and creative industries are generating jobs and boosting Cote d'Ivoire's attractiveness.
00:53According to Boston University, Africa is sending more money to China than it receives,
00:58reflecting a sharp decline in Chinese loans and an increase in trade flows.
01:03This shift marks the end of an era of massive financing and the beginning of a cooperation focused on the
01:08real economy and local development.
01:14Economic relations between China and Africa are changing.
01:18A recent report shows that the African continent now sends more money to China than it receives,
01:24a shift linked to a sharp decline in Chinese financing and the rise in trade flows.
01:30For more than a decade, China was a major financial partner for Africa.
01:34According to Boston University's database, Chinese lending to the continent exceeded $10 billion a year between 2012 and 2018,
01:45peaking at $28.8 billion in 2016.
01:50From 2019 onwards, the trend reversed.
01:54Lending fell by more than 60% to $6.8 billion,
01:58then averaged just over $2 billion a year from 2020.
02:03At the same time, financial flows between Africa and China have been reshaped.
02:09Debt repayments, African imports and profits repatriated to China now exceed new incoming financing.
02:17This shift reflects a change in strategy by Chinese lenders,
02:21who have become more cautious, as well as financing constraints on the African side
02:26linked to debt restructurings and post-pandemic economic shocks.
02:30But it also marks a phase of consolidation.
02:34Several African countries are reducing their reliance on external borrowing,
02:38renegotiating agreements and prioritizing more targeted projects.
02:44Overall, the data point to a Sino-African relationship that is less focused on loan volumes
02:49and more on economic exchange.
02:53We welcome Professor Yorodiallo,
02:56Senior Researcher and Director of the Francophone Studies Centre at Zhejiang University in China.
03:02Thank you for accepting our invitation.
03:05Recent reports show that Africa is sending more money to China than it receives.
03:10Do these flows, partly linked to debt repayment, hinder the continent's development?
03:17If taking on debt allows me to keep my head above water, I will not hesitate to encourage.
03:23In reality, when I speak about this shift, it is not only about China.
03:27These financial flows are, in fact, greater towards Western countries.
03:32Many media outlets, particularly in the West, focus on African debt to China,
03:37as though it were a bottomless pit blocking the continent's economic, social and cultural development.
03:44Yet, in its economic engagement, China does not impose its views, its system or its particular model.
03:51The decisions lie with African countries themselves,
03:55their political choices and social choices.
04:00But given these reversed flows,
04:03are African countries still making the right choice for their economies by cooperating with China?
04:10After 300 years of colonisation and domination,
04:14Africa was left in such a state that we were still searching for our own direction.
04:19In the 25 years since the establishment of the Forum on China-Africa cooperation,
04:25the face of Africa has changed.
04:28So have its capitals.
04:30Since Xi Jinping came to power,
04:32this cooperation has taken on a new dimension.
04:36The results over these 25 years are visible.
04:40China has built and helped Africa complete hundreds of thousands of kilometres of roads and highways,
04:46as well as ports and airports.
04:49Today, China is the leading country in terms of the number of scholarships and training and study opportunities
04:56it offers to the African continent.
04:59Its contribution to Africa's industrialisation represents concrete progress
05:04and practical initiatives that enable African countries to embark on their development.
05:09Without China-Africa cooperation,
05:12many African capitals will still be a little more than large villages.
05:17Finally, in your opinion,
05:19how can Sino-African economic relations become more balanced and more beneficial for Africa's economy?
05:28I believe we should not fixate on this imbalance,
05:32but instead turn it into a lever for Africa's development.
05:37As long as the current imbalance works in favour of Africa countries,
05:42because Africa needs capital,
05:45we should continue to support China-Africa cooperation.
05:48The aim is that on cultural, economic and social levels,
05:55this partnership, which has already proven itself and produced concrete and deniable results,
06:01continues and allows African countries to move further along the path of modernisation.
06:08China has granted duty-free access to goods from around 40 African countries.
06:14The Chinese market is open to many African products,
06:19Malian agricultural exports sold in China,
06:22as well as products from Kenya and Tanzania,
06:25and coffee from Cameroon.
06:27These are concrete measures that are, as the saying goes,
06:32small streams destined to form great rivers.
06:36And it is towards these great rivers
06:39that China-Africa cooperation is flowing
06:41in pursuit of shared development.
06:46Monsieur Diallo, thank you for joining us.
06:51In Libya, the liquidity crisis has plunged the country into financial paralysis.
06:56Cash withdrawals are limited, banknotes are scarce,
06:59and electronic payment systems meant to ease the shortage
07:02are also experiencing frequent failures.
07:07But to commercial bank in Tripoli, Ahmed Akoub did not come to withdraw cash.
07:14There's none available.
07:15But to file a complaint after an electronic payment was debited without being completed.
07:22I noticed that many shops, when you try to pay by card,
07:27claim that the terminal is out of order.
07:29I don't know whether it actually works or not,
07:32but everyone is complaining about this situation.
07:38Since the central bank of Libya withdrew 47 billion dinars,
07:42the country has been facing a severe cash shortage,
07:46pushing citizens toward electronic payments.
07:49High-denomination banknotes are scarce,
07:52and authorities are warning of an increase in counterfeit bills.
07:58With electronic payments, there is no counterfeit money.
08:01Everything is digital, secured by a code linked to the exact name,
08:05verified data, and the appropriate application.
08:09On the ground, malfunctions in electronic payment systems
08:13are disrupting commercial activity.
08:20Citizens face different exchange rates depending on the payment method.
08:25Cash withdrawals are often subject to unfavorable rates,
08:27while card payments usually incur additional fees.
08:31This situation, driven by the liquidity crisis and limited access to cash,
08:36particularly for few and essential goods,
08:39worsens daily hardships
08:40and makes access to basic necessities more difficult.
08:49Quarred between a cash shortage and failing systems,
08:53many Libyans still struggle to access their own money.
09:02In Abidjan, Côte d'Ivoire, cultural and creative industries
09:05are becoming a key driver of the economy.
09:08Music, cinema, fashion and visual arts are creating jobs,
09:13attracting investment and strengthening the city and the country's cultural influence.
09:20From music and cinema to fashion and visual arts,
09:23cultural and creative industries are emerging as key growth drivers in Abidjan's economy.
09:28In Côte d'Ivoire's largest city, culture is no longer confined to the arts.
09:32It is increasingly recognized as a strategic sector for jobs, investment and economic sovereignty.
09:38For us, sovereignty is this ability to project ourselves,
09:42to redefine the collective imagination about Africa with our own words, our own images.
09:50Backed by a young creative population and a new generation of committed entrepreneurs,
09:55these industries are helping to build a more assertive African soft power,
09:59with Abidjan positioning itself as a regional hub.
10:03We have all wanted to visit American or European cities
10:06because they have been fantasized in cities or films.
10:10It is time for us, young Africans and creators,
10:12to follow the same path in order to sell ourselves.
10:17Within this broad ecosystem, the music industry is standing out
10:21as a sector with strong economic potential in its own right.
10:26Today, music generates 50 million jobs for young people aged 15 to 29.
10:33It attracts young people all over the world.
10:38According to UNESCO, a creative industry school account for up to 10% of Côte d'Ivoire's GDP by 2030.
10:44In Abidjan, they are becoming an increasingly important engine of growth and competitiveness,
10:49both for the city and for the country as a whole.
10:54And that brings us to the end of this edition of Business Africa.
10:59For more information, stay tuned to African News or visit our website africanews.com.
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