November (AMSP/CGTN) – – Strengthening trade ties between China and Africa has been a major highlight at the ongoing China International Supply Chain Expo. Both regions are committed to enhancing their bilateral trade relationship, facilitating the exchange of high-quality products, and diversifying their imports and exports. CGTN’s Ramah Nyang, Nairobi, has more insights on the evolving partnership.
Total bilateral trade stood at $ 166.6 billion in the first 7 months of the year, up 5.5%, year-on-year. Collectively, China still runs a trade surplus with the continent, having exported goods worth $ 97.7 billion, while importing goods worth $ 68.7 billion, between January & July
Imports of nuts, vegetables, flowers and fruits rose by between 7% and 130%, compared to a year earlier, according to data from China’s General Administration of Customs. Those numbers are important for two reasons – first China’s imports from the continent fell by 6.7% year-on-year in 2023, so we’re seeing a reversal in that trend so far in 2024.
More importantly, they represent efforts to diversify imports away from primary commodities like metals, minerals and fuels, which account for 60% of exports from Africa, to China.
In the 2021 edition of FOCAC, plans were announced to simplify & speed up inspection & quarantine procedures for agricultural exports from African states – think of coffee from Ethiopia and Uganda or pepper from Rwanda – into the Chinese market. You’ll hear those being referred to as “green lanes”.
Agricultural exports rose by 35% between 2021 and 2023 to $ 9.35 billion, but even at those levels, agricultural goods made up less than 10% of total exports. China’s coffee imports last year rose by 23% to nearly 154 000 tons. If that growth rate is maintained, China could absorb virtually all of Ethiopia’s coffee exports within 5 years.
So, what needs to happen next to enable more produce to flow? Well, logistics is one part of the equation, but a more critical issue is trade facilitation. Most SMEs & small scale farmers here, who produce the bulk of agricultural produce on the continent, aren’t familiar with the Chinese market, or its rules on product quality standards and how to meet them. There’s work being done to fix that with the International Trade Center and the China Development Bank, among others.
Finally, we’re seeing interesting debates on what rules should govern Sino-African trade in future. Rather than just giving duty free access to exports from the least developed economies, should that be extended to all African states? Or should China and regional economic blocs like EAC/ECOWAS/SADC sit down & negotiate preferential trade deals?
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