BEIJING: In the first half of this year, trade between China and Africa rose 16.6 percent to US$137.4 billion, boosted by a correction in commodity prices, especially oil.
According to the most recent data from the General Administration of Customs of China, China imported goods worth $60.6 billion from Africa, an increase of 19.1% compared to the same period in 2021. Meanwhile, exports to Africa rose 14.7% to US$76.8 billion.
Although growth was the strongest in the first half of the year, analysts attributed the decline to supply chain disruptions related to the pandemic, such as the Shanghai lockdown and port closures. A flood-related closure at the port of Durban in South Africa, through which about a fifth of Afro-China trade passes, may have also hindered the flow of some goods.
According to Charles Robertson, global chief economist at investment bank Renaissance Capital, the increase in China's imports from Africa will be due to a correction in commodity prices. "China's slow import growth in June suggests that the second half may see slower growth," he cautioned.
Last year, total trade between Africa and China grew 35.3 percent year-on-year to US$254.3 billion, while African exports grew 43.7 percent year-on-year to US$105.9 billion.
Imports from major countries such as South Africa fell 11.7 per cent to US$14.3 billion in the first six months of the year, while Chinese exports rose 17.8 per cent to US$11.1 billion.
Imports from Nigeria and Egypt declined by 17.7% and 22.5 percent, respectively.
However, imports from other countries such as Ghana, Djibouti, Democratic Republic of the Congo, Ivory Coast, Equatorial Guinea, Zambia, Angola and the Republic of the Congo increased dramatically during the same period.
Most of these countries are resource-rich and provide important commodities to China. Angola sells most of its oil to China, while the DRC is where China gets most of its cobalt, which is used in batteries for electric vehicles, smartphones, tablets and laptop computers.
Meanwhile, Zambia is the continent's second largest copper producer, and has attracted a large number of Chinese investors.
In May, Tommy Wu, Hong Kong-based chief China economist at Oxford Economics, said a recent lockdown in the Chinese city was unlikely to affect demand for African agricultural products as Beijing had prioritized food security.
"Demand for items used in electric vehicles and batteries, as well as those for building green energy facilities, is unlikely to be affected," he said, adding that China prioritizes the development of these areas.
Despite the recent slowdown, overall trade between China and Africa is growing at a healthy rate, according to Virag Fories, emerging market economist at Capital Economics. "Rising commodity prices, especially for oil and metals, are supporting Chinese commodity imports from major African producers," she explained.
While Forries believes that further commodity price gains are likely to be limited, "we believe that China's economic recovery will become more difficult, placing more weight on demand for imported goods." In addition, China's exports are likely to shift from tailwind to headwind."
The majority of sugar exports to Africa are finished goods ranging from textiles to electronics,
While African exports are dominated by raw materials and unprocessed goods, resulting in a trade surplus in favor of China.
To help balance the trade, Chinese President Xi Jinping in November promised to increase African imports to $300 billion over the next three years.
He told the Forum on China-Africa Cooperation that Beijing would open "green lanes" for African agricultural exports and provide US$10 billion in trade finance to help them succeed.
Ethiopian Airlines last month launched a new cargo route between Addis Abeba, the capital of Hunan province, and Changsha, hoping to make the city a major Sino-Africa trade and logistics hub.
The route between Changsha and Addis Abeba is expected to carry 17,000 tonnes of cargo annually, according to Wu Peng, director general of the Chinese Foreign Ministry's Department of African Affairs.
Deals that would allow African countries to export more agricultural products such as coffee, avocados, chili peppers, cashews, sesame and spices have also benefited them.
According to Chen Mingjian, China's ambassador to Tanzania, China imported nearly 100 million tonnes of soybeans last year, including 263,300 tonnes from Africa, a five-fold increase year over year.
Tanzania only began exporting soybeans to China in 2021 and thus contributed only a small part of the total, but Chen said, "China's market is huge; we welcome more Tanzanian soybeans."
Similar agreements have been made for Kenyan avocado, tea, coffee and rose, Ethiopian coffee and soybeans, Namibian and Botswana beef products, South African fruit and Rwandan coffee.
In January, Chinese Foreign Minister Wang Yi signed an agreement with Kenya to allow fresh avocado and aquatic products in the Chinese market, which previously only accepted frozen fruit, effectively deterring many East African traders. used to shut down those who could not provide the facility of cold.
After being cleared by Customs and the National Plant Protection Organization, the first batch of avocados from Kenya arrived in Shanghai in late July.
“I am told that Chinese importers are very interested in these high quality avocados and intend to import them on a larger scale.” "I look forward to hearing more good news about African agricultural product imports," Wu tweeted.
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