Will Africa-China trade priorities align?

As China urges Africa to increase imports of its goods in exchange for more loans and investments before Western export restrictions take effect, the focus of bilateral talks between Nigeria and China is expected to center on loans and Foreign Direct Investments (FDI), particularly for infrastructure projects. On a recent CNBC Africa interview, Esili Aigbe, Director of Escap Management, highlighted the importance of Nigeria leveraging favorable terms in these negotiations. Aigbe emphasized that Nigeria must address key reforms to attract foreign investments effectively, such as judicial reforms to enhance contract enforceability and privatization of entities like the NNPC to improve efficiency. Additionally, critical infrastructure areas like power generation need significant attention to create a conducive environment for foreign investors. Notably, China is shifting its investment strategy to focus on smaller but high-impact sectors like technology, agriculture, and renewable energy. Aigbe emphasized the necessity for Nigeria to align its local policy framework to attract investments in these areas effectively. Particularly, in the renewable energy sector, Aigbe suggested that Nigeria should leverage Chinese expertise and resources to develop capacities locally for solar panel production and energy storage solutions. By collaborating with Chinese companies and promoting knowledge transfer, Nigeria can accelerate its transition to cleaner and more sustainable energy sources. In terms of gaining knowledge and investment flows, Aigbe recommended signing Memorandums of Understanding (MOUs) with China to facilitate the export and production of energy-efficient products in Nigeria. By removing import taxes and providing incentives for local production, Nigeria can drive the adoption of renewable energy technologies like solar panels and compressed natural gas (CNG) vehicles. However, Aigbe stressed the critical role of robust policies to support these initiatives and ensure their long-term sustainability. While Nigeria has made strides in the past through partnerships like the China Civil Engineering Construction Corporation (CCECC) for rail infrastructure development, there are still areas that require attention and progress. With ongoing geopolitical shifts and evolving trade dynamics, Nigeria must seize the opportunities presented by China's changing investment priorities to foster economic growth and development. By prioritizing key reforms, aligning with global trends in sustainable development, and pursuing strategic collaborations with Chinese partners, Nigeria can position itself as a competitive destination for foreign investments and technological advancements.