https://www.engineeringnews.co.za
Africa|Business|Financial|Manufacturing|Resources|SECURITY|Manufacturing |Products
Africa|Business|Financial|Manufacturing|Resources|SECURITY|Manufacturing |Products
africa|business|financial|manufacturing|resources|security|manufacturing-industry-term|products

China to deepen Africa ties over next decade with focus on trade

4th August 2022

By: Bloomberg

  

Font size: - +

China will deepen its ties with Africa over the next decade by focusing on trade and is unlikely to be dislodged by US and European Union attempts to re-engage with the continent, the Economist Intelligence Unit said.

The Asian country is likely to keep investing in Africa’s natural resources and may look to the continent as a source of food, boosting its expenditure on agriculture, the EIU said in a report released Thursday. Asia may see Africa’s youthful population as a source of labor for its manufacturing companies and as a market for its consumer goods, the research organization said.

China plans to surpass the EU as Africa’s biggest trade partner by 2030, and while western powers are trying to boost relations with the continent, they will struggle to catch up, the EIU said. Their relations with the continent are complicated by Europe’s colonial history with Africa and distrust of their intentions due to erratic engagement over the last few decades.

“Question marks are also being raised in Africa over the motives behind the re-engagement of the EU and US,” the EIU said. These “raise memories of past failed commitments and are viewed merely as a desire to counter Chinese influence rather than work with African business partners,” the organization said.

China has held annual meetings with African heads of state and that is now being emulated by its geopolitical rivals, while Russia, Turkey, Brazil and Saudi Arabia are also trying to build relations with the continent.

The EU and African Union held a summit in February, and US President Joe Biden has called for a meeting with African leaders in December.

These “to an extent will help to counter, but not dislodge, Chinese influence across the continent,” the EIU said.

China has spent two decades cultivating its political and economic relations with Africa and stronger ties could now benefit its economy even as slowing growth may restrain investment in the continent.

FOOD SECURITY
“Food security issues and enormous food import requirements in China could drive large trade and investment flows in African agricultural products and production,” the EIU said. “Africa has an enormous, young and low-cost pool of labor that presents a potential outlet for China’s labor-intensive manufacturing sector -- something that will become increasingly attractive as China’s labor force grows older and becomes more costly.”

Ties are already significant.

Bilateral trade between China and Africa rose 35% in 2021 from the year earlier to $254-billion, with African exports hitting a record $106-billion, the EIU said, citing Chinese government statistics. Nigeria is Africa’s biggest importer from China while South Africa is the biggest exporter.

“Afro-Chinese relations are clearly moving into a new phase,” Pat Thaker, the EIU’s editorial director for the Middle East and Africa, said in a statement. “Latest policy initiatives, development strategies and financial pledges point to a deeper and broader engagement.”

Edited by Bloomberg

Comments

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.065 0.124s - 139pq - 2rq
Subscribe Now