Showing posts with label agricultural exports. Show all posts
Showing posts with label agricultural exports. Show all posts

Monday, April 6, 2026

China-Africa Trade Increases, but So Do African Trade Deficits

 The Institute for Security Studies published on 2 April 2026 a paper titled "FOCAC Recycled: Preferential Access, Same Old Problem" by Marvellous Ngundu.  

Since 2000, Africa-China trade has expanded dramatically from less than $10 billion to over $348 billion in 2025.  Yet beneath this growth lies a persistent structural imbalance.  Africa's trade deficit with China has widened from negligible levels in the early 2000s to over $100 billion in 2025.

Beginning on 1 May 2026 China is implementing a zero-tariff policy for all but one African country in an effort to rectify this imbalance.  But the change risks entrenching existing trade patterns in which value addition occurs elsewhere.  As a result, higher trade volumes may not translate into more inclusive or structurally transformative outcomes for African economies.

The core issue is not tariffs, but industrialization.  Africa's trade position will only shift when it exports more manufactured and semi-processed goods.  China's duty-free initiative presents both an opportunity and a test.  It expands market access but highlights the limitations without the capability.


Wednesday, July 5, 2023

Africa's Struggle to Increase Exports to China

 The Diplomat published on 29 June 2023 a commentary titled "Does the China-Africa Trade Expo Matter?" by Ovigwe Eguegu and Hannah Ryder.  

While African exports to China currently account for just 3 percent of Chinese global imports, China is becoming a relatively more important market for Africa.  The first China-Africa Economic and Trade Expo (CAETE)  took place in China's Hunan province in 2019 and is held every two years.  The third CAETE opened on 29 June with representatives from 53 African countries.  

The authors ask if any of this will make a difference in trade patterns between African countries and China.  They conclude the jury is out.  African countries still face significant challenges when it comes to tariffs on value-added goods entering China.