China’s Hunan Province has called for increased cooperation with Kenya to bolster economic and political ties between the two regions. This move comes as part of a broader strategy by China to enhance its influence in Africa, particularly through initiatives that align with the Forum on China-Africa Cooperation (FOCAC).

Background of Hunan-Kenya Relations

China’s governance model allows its provinces a certain degree of autonomy, particularly in economic activities, which enables them to pursue their interests as long as they align with national policies set by Beijing. Hunan Province, located in the central part of China, has been leveraging this autonomy to foster closer ties with African nations, with Kenya being a key focus.

The relationship between Hunan and Kenya has been steadily growing, marked by a series of high-level exchanges and economic collaborations. In May 2024, a delegation from Kenya’s United Democratic Alliance (UDA) visited Hunan on a 10-day working engagement. This visit was facilitated by the Communist Party of China (CPC), underlining the political dimension of the relationship. The UDA is seeking support from the CPC to the tune of KSh 1 billion to build its new party headquarters and establish a leadership school, modeled after the CPC’s successful party machinery.

Economic Cooperation and Trade

Hunan has emerged as a significant player in China-Africa economic relations, with its trade with Africa totaling 55.67 billion yuan (approximately KSh 1.1 billion) in 2023. This trade volume ranks Hunan eighth among China’s 34 provinces and first among the central and western regions of China. The province has recorded an impressive annual growth rate of 23.1% in its trade with African nations, reflecting the increasing importance of these economic ties.

Kenya has been a major beneficiary of this burgeoning relationship. Kenyan tea and roses, in particular, have found new markets in Hunan, where they have become increasingly popular. The Tea Board of Kenya has urged farmers to meet the leaf quality standards set by the board as they prepare to expand exports to China. A joint trade mission to China is planned for later this year, with the aim of further boosting Kenyan tea exports.

In addition to agricultural products, Hunan has also been importing a significant amount of goods from Kenya and other African countries. As of July 2024, imports from Africa to Hunan had increased by over 90% year-on-year. These imports include equipment for manufacturing, energy, mining, road and bridge construction, and agricultural development. This influx of goods is part of a broader strategy to integrate African products into the Chinese market and diversify the sources of raw materials and finished goods for Hunan’s industries.

Educational and Cultural Exchanges

Education and cultural exchange have also been central to the growing relationship between Hunan and African countries. Hunan’s universities have accepted over 3,000 students from more than 40 African countries, a move that underscores the importance of people-to-people exchanges in strengthening bilateral ties. These students not only receive education and training but also contribute to the cultural diversity and mutual understanding between China and Africa.

The province has also been proactive in promoting cultural exchanges through various initiatives. For instance, the establishment of direct flights between Changsha, the capital of Hunan Province, and Nairobi in 2019 has facilitated the movement of people and goods between the two regions. More than 150,000 passengers have traveled between Changsha and Nairobi since the inception of the direct flights, enhancing tourism, business travel, and cultural interactions.

The China-Africa Economic and Trade Expo

One of the most significant platforms for economic cooperation between Hunan and Africa is the China-Africa Economic and Trade Expo. Organized by Hunan Province every two years, this expo has become a key event for promoting trade and investment between China and African countries. The expo has been held three times so far, with the most recent event being the first of its kind to be held outside of Africa, in Kenya in May 2024.

The expo has been instrumental in securing 336 cooperation projects worth $53.32 billion (approximately KSh 6.8 trillion) between China and Africa. These projects span various sectors, including infrastructure, manufacturing, agriculture, and technology. The expo also serves as a platform for African businesses to showcase their products and services to the Chinese market, thereby creating new opportunities for trade and investment.

Hunan’s Role in China’s Africa Strategy

Hunan Province’s proactive engagement with Kenya and other African countries is part of China’s broader strategy to strengthen its ties with the continent. The province has set up more than 100 African brands and over 10 industrial chains through its cooperation with African countries. These include industries in sectors such as construction machinery, automobiles, electronics, household appliances, and biomedicine, all of which are critical to both China and Africa’s economic development.

Moreover, Hunan has established its first overseas warehouses of Chinese e-commerce in Kenya, making Chinese products like shoes, hats, and small household appliances more accessible to African consumers. These warehouses have improved logistics efficiency, reducing the time and cost of transporting goods from China to Africa. This development is particularly significant in the context of China’s Belt and Road Initiative (BRI), which aims to enhance global trade connectivity.

The cooperation between Hunan and Kenya has also extended to the coffee industry. Following the first expo held in Africa, a Hunan enterprise ventured into Kenya and Ethiopia to explore the coffee market. The company’s discovery of high-quality coffee in these countries has led to increased interest in African coffee in China, particularly among the middle class and young people. This has opened up new avenues for African coffee producers to tap into the lucrative Chinese market.

Future Prospects

Looking ahead, the relationship between Hunan Province and Kenya is expected to continue growing, driven by mutual economic interests and a shared commitment to development. The two regions are likely to explore new areas of cooperation, particularly in technology, innovation, and sustainable development. Hunan’s expertise in industrial manufacturing and Kenya’s strategic position as an economic hub in East Africa make them natural partners in these endeavors.

Furthermore, the success of the China-Africa Economic and Trade Expo and the increasing trade volumes between Hunan and Africa suggest that there is significant potential for further expansion of economic ties. As Hunan continues to play a leading role in China’s engagement with Africa, Kenya stands to benefit from increased investment, technology transfer, and market access.

In conclusion, the strengthening of ties between Hunan Province and Kenya reflects the broader trend of deepening China-Africa relations. Through strategic economic partnerships, educational exchanges, and cultural interactions, Hunan and Kenya are building a relationship that is not only beneficial to their economies but also contributes to the overall development and stability of Africa. As this partnership evolves, it will likely serve as a model for other provinces in China and regions in Africa to follow, further solidifying the bonds between the two continents.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

6th September, 2024