China aims to become Africa’s largest trading partner
The trade volume between Africa and China increased by 11 percent last year compared to 2021, reaching 282 billion dollars. China is on its way to become Africa’s first partner, leaving behind the EU, the USA and Russia in the coming years.
According to international reports, China aims to become Africa’s largest trading partner by 2030, surpassing the European Union (EU).
Organization for Economic Co-operation and Development (OECD), World According to the information compiled from the Bank, International Monetary Fund (IMF), China Exim Bank, China Development Bank, General Administration of China Customs, Economist Intelligence Unit (EIU) which provides research and consultancy services and Statista reports which provide statistical data, China will be in the EU, USA in the coming years. And RussiaIt is on its way to becoming Africa’s first partner, leaving behind .
At the “Third China-Africa Economic and Trade Fair” held in China in June, China-Africa trade volume and China’s investments in Africa were announced by the General Administration of Customs of China. At the fair, a total of 10.3 billion dollar 120 more projects worth more were signed.
EXPORT IS AT A RECORD LEVEL WITH 106 BILLION DOLLARS
Bilateral trade between China and Africa increased by 35 percent to 254 billion dollars in 2021 compared to 2020, while exports from the continent reached a record level of 106 billion dollars.
The trade volume between Africa and China increased by 11 percent last year compared to 2021, reaching 282 billion dollars.
It is stated that China’s trade volume with South Africa, its largest trade partner on the African continent, in 2022 reached 56.74 billion dollars.
According to the report published by the EIU on August 3, China aims to surpass the EU and become Africa’s largest trading partner by 2030.
The investment of Chinese companies in the continent in 2020-2021 is approximately 53.5 billion dollars. While China’s imports to Africa have been 1.2 trillion dollars since 2000, its exports have been 1.27 trillion dollars.
Over these years, more than 3,500 Chinese companies have invested in Africa. 70 percent of the companies investing in the continent are private sector and their investment stock in the continent is 43.4 billion dollars.
It is stated that, in addition to local workers, more than 200 thousand Chinese people are employed in companies in Africa.
COMPENSATING AFRICA’S TRADE DEFICIT THROUGH GRANTS
China has become the largest investor in construction, mining, transportation and energy on the continent and earned over $24 billion in revenue from infrastructure projects in Africa in 2020.
25 percent of highways, railways and electricity generation facility projects in Africa are being built with Chinese capital.
According to the IMF, China’s loans to the continent increased rapidly in the 2000s. China’s share of Sub-Saharan Africa’s external public debt increased from 2 percent before 2005 to 17 percent in 2021.
Africa has had a trade deficit with China of more than $200 billion in the last 20 years. China, on the other hand, is trying to compensate for this deficit through investments and grants in order to continue its trade with Africa.
China is involved in the infrastructure projects of 35 African countries, especially Kenya, Angola, Nigeria and Sudan. It is also planning some new projects related to the Democratic Republic of Congo (DRC) and South Africa.
Chinese companies have a significant share not only in large infrastructure constructions in Africa, but also in the import of oil, minerals, energy, natural stones and metals, copper, iron and agricultural products.
25 PERCENT OF THE ENERGY DEFICIT IS MEETED BY AFRICA
Energy is one of the prominent sectors in China-Africa foreign trade. China provides 25 percent of its energy needs from the region.
Chinese companies, financial institutions and the government are participating in the construction of large dams worth billions of dollars in Africa.
Merowe, Shereik, Kajbar and Dal in Sudan, Lower Kafue Gorge in Zambia, Tekeze in Ethiopia, Mphanda Nkuwa in Mozambique, Mambila in Nigeria, Bui in Ghana, Imboulou in Congo, Belinga in Gabon, Cameroon Most of the dams, such as Lom Pangar, are built by China Exim Bank in partnership with China and other countries.
Angola, Nigeria and Mozambique have important positions among the countries that are critical for China’s energy imports from Africa. China imports half of its energy resources, natural stones and minerals from these countries.
IT MAKE THE MOST INVESTMENTS IN 12 AFRICAN COUNTRIES
China makes the most investments in 12 resource-rich African countries. These countries are the Republic of South Africa, DRC, Zambia, Ethiopia, Angola, Nigeria, Kenya, Zimbabwe, Algeria, Ghana, Tanzania and Mozambique.
The countries that received the largest share of China’s investments in Africa are Nigeria with 38.3 billion dollars, Angola with 27.16 billion dollars, and Ethiopia with 25.33 billion dollars.
The countries that received the most loans from China are Angola with 42.62 billion dollars, Ethiopia with 13.72 billion dollars, Zambia with 9.84 billion dollars, Kenya with 9.17 billion dollars, Nigeria with 6.73 billion dollars and Cameroon with 6.20 billion dollars. .
CHINESE HAS THE MOST CAPITAL IN THE CONSTRUCTION OF DAMS IN AFRICA
On the African continent, dams worth billions of dollars are being built by the Chinese government and Chinese investment companies.
Most of the financing of the hydroelectric dams established in Sudan, Zambia, Ethiopia and DRC was covered by China.
BUILT 100 PORTS SINCE 2000
So far, China has invested in more than 10 thousand kilometers of railways and more than 100 thousand kilometers of road infrastructure in Africa.
According to data shared by the Washington-based Center for Global Development (CGD), 31 percent of construction projects worth more than $50 million in Africa in 2020 were also financed by China.
From Nairobi to Mombasa and from Addis Ababa to Djibouti, almost all railways are built, repaired and in some cases operated by China.
Chinese port companies have built 100 ports across Africa since 2000. The most important of these ports are Kribi in Cameroon, the construction of which started in 2014, and Lekki in Nigeria.
The total land area of China across the continent is approximately 465 thousand square kilometers. Since 2012, China has established agricultural cooperation mechanisms with 23 African countries and regional organizations and signed 72 bilateral or multilateral agricultural cooperation agreements.
It is stated that, as of the end of 2020, more than 200 Chinese companies have an investment stock of 1.11 billion dollars in the agricultural sector of 35 African countries. (AA)
