China-Africa Corporation Forum (Southern African Transport Conference) POTENTIAL OPPORTUNITIES ON R&D AND INNOVATION LINKING TO THE BELT AND ROAD INITIATVE Professor Baojin Zhao (PhD.) (UNISA/Rhodes/WorleyParsons) 12 July 2017

Outline Introduction Background (OBOR) OBOR: The Chinese Dream Concept 1 Introduction Background (OBOR) OBOR: The Chinese Dream Concept Leadership and Management Finance and Economics How does it fit to Africa R&D and Innovation Opportunities Closing Remarks

2. Background: The One Belt, One Road (OBOR) Xi Jinping – The Chinese Dream How did it start? 2008 - Neville Mars, Adrian Hornsby, and the Dynamic City Foundation published "The Chinese Dream – a society under construction” 2010 - Helen Wang published her first book “The Chinese Dream” 2012 – President Xi became the Chinese Leader, formally become the policy of his leadership 2x 100yrs A "moderately well-off society" by 2021, the 100th anniversary of the Chinese Communist Party, China becoming a fully developed nation by about 2049, the 100th anniversary of the founding of the People’s Republic Thomas Frieman, New York Times

3. OBOR: The Chinese Dream The strong supplement of the government’s diplomacy “Resonance” of the initiatives among related countries can be strengthened through regional cooperation Enhance: Policy communication Road links Trade ties Currency circulation People-to-people exchanges Infrastructure New media techniques Cultural exchange All in all, pushing forward the construction of “One Belt and One Road” is of great significance for building a moderately prosperous society and realising the “Chinese Dream” of great national rejuvenation. Public diplomacy will play an indispensable role in the implementation of the initiatives

4. Concept: One belt, one road One Belt, One Road (OBOR)- Development strategy and framework Background Silk Road Economic Belt (SREB), through Central Asia, West Asia, the Middle East, and Europe, Africa 21st Century Maritime Silk Road (MSR), Southeast Asia, Oceania, and North Africa, through several contiguous bodies of water – the South China Sea, the South Pacific Ocean, and Indian Ocean, Africa Also known as The Belt and Road (B&R), One Belt, One Road (OBOR) or the Belt and Road Initiative + 1 continent

3. Leadership and management: Steering Committee Advancing the Development of OBOR in late 2014. Directly report to the State Council of the PR China Composed of Vice-Premier Zhang Gaoli, Wang Huning Wang Yang Yang Jing Yang Jiechi

4. Economic and Finance: OBOR Support by financial institutions 1. Silk Road Fund: USD$40 billion State backed investment fund Headquarters: Beijing Karot hydropower project-USD$1.65 billion; 9.9% Yamal LNG project 2. AIIB - Asian Infrastructure Investment Bank $8 trillion 3. BRICS bank - New Development Bank: Headquarters: Shanghai USD$100 billion 4. Cadfund: $5 billion, initiated from USD$1 billion 5. ChinaLLatAm Production Capacity Fund: USD$30 billion 6. China-Africa Industrial Capacity Cooperation Fund Co Ltd (CAICCF): 30 billion by People’s Bank and China Foreign Exchange Reserves and Import-Export Bank: USD$10 billlion 7. China commercial banks

4. (Cont.) Economic and Finance: Further Support Further supported by and through parastals and Chinese companies 1. Mining 2. Infrastructure such as railway, habour 4. Power 5. Manufacture 6. Agriculture 6. Export and import Provide up to 15% funding Help raising funding from banks Bring business partner

5. How does Africa fit? 1. Africa is considered to be part of the framework of the OBOR+ (One Continent) As strategic partnership with China Important to each other MOU signed between African Union (54 countries) and China Three network, one industrilisation Railway network Roads Regional airports Health and Medicine 2. China can not forget and avoid Africa (54 countries, historic links, political support, wealthy mineral resources and lacking of infrastructure)

6. China Africa Exchange: Summit and Programs 1 1. The Forum on China–Africa Cooperation (FOCAC) 2. BRICS summit 3. China South Africa bilateral research program (NRFs) 4. Confucius Institutes 5. Africa-China Business Association 6. Many informal exchange!!! 2 3 4

7. R&D Opp.: Human Capital & Science Science, Technical and education (continued) 1. Science parks like silicon valley type 2. African Talent Training Progamme (30 000 personnel) 3. 18 000 Bursaries 4. 40 Confucius Institutes 5. African studies 6. Training Workshops Highlights: Human Resource and Skills Development People to people exchanges, e.g. cultural tourism

8. (cont.) R&D opp.: Critical Areas 1. Industrialisation 2. Infrastructure development such as road, railway etc. 3. Development of SEZ’s and Industrial Parks 4. Developing the Energy sector 5. The Green and Blue Economies 6. Development Finance 7. Peace and security as a prerequisite for sustainable development Zhang Huarong with Prime Minister

9. Closing Remarks Chinese has the money to invest in Africa for R&D Easy to get funding though the OBOR such as 15% funding and raising funding capability SEZ/Science parks will create a lot of job opportunities and innovation technology Training and cultural exchange is important to Africa Take the language opportunity, English, French etc. IT Tourism (safety and Security) and student host Exchange for scholars and technologists Africa has become a hot spot for research and development!!!

? Questions?