Business
China will become Africa’s biggest export market in 2012
Already Africa’s single biggest trading partner, China is set to become the continent’s largest export destination in 2012 according to South African based Standard Bank.
The milestone would mark a significant turnaround since 2008, the bank says, when exports to China stood at half of those to the US.
In a research note, Standard Bank’s Beijing based economist Jeremy Stevens writes that “despite becoming marginally more expensive, China has managed to grow exports to Africa rapidly.”
The estimate is the latest sign of deepening ties between the two regions, and Mr Stevens goes on to say that “Chinese and African businesses are now more comfortable transacting with one another. Looking forward, China is well-positioned to participate in Africa’s next phase of development.”
China has been at the forefront of reshaping the continents external relations in recent years, and Mr Stevens notes that its “foresighted engagement with Africa back at the start of the past decade was a master stroke, allowing Beijing to steal a march on Africa’s other partnerships.”
Bilateral trade volumes now exceed US$160 billion per year, or almost a fifth of the continent’s overall trade, a 28 percent increase from 2011. Imports from China stood at US$73bn in 2011, up more than 23 percent on 2010, while Africa’s importance to overall Chinese trade is also increasing. The region now accounts for 3.8 percent of exports, up from 2 percent in 2002. The rapid growth in trade between the two regions is putting pressure on more established partners such as the EU and the US to strengthen their commercial ties with Africa.
Rapidly growing economic activity has gone hand in hand with political engagement. High profile visits by Chinese officials have become common place in Africa since 2000, including President Hu Jintao and Chinese Premier Wen Jiabao.
