China-Africa Cooperation Through E-Commerce
As of 2020, there were about 465 million Internet users in Africa. The number is projected to reach about 500 million by 2025. In 2020, the market size of African e-commerce was capped at over US$18 billion, with a prediction that the value will rise to $34.66 billion by 2024. This shows an average annual growth rate of 17%.
Potential and Current Trade Volume between China and Africa
In 2019, the value of China’s stock of direct investment in Africa reached $49.1 billion U.S. In 2021, this value rose by 35.3% from $139.1 billion to $254 billion in 2022. The rise was undoubtedly a result of the increase in Chinese exports to the continent.
China’s top trading partner on the African continent is South Africa. This is as its value of imports and exports was estimated at $54 billion in 2021. Coming behind South Africa is Nigeria ($26 billion), Angola ($23 billion), Egypt ($19 billion), and the Democratic Republic of Congo ($14 billion).
The value of imports from China in 2021 was estimated to be $23 billion (Nigeria), $21 billion (South Africa), $18 billion (Egypt), $8 billion (Ghana), and $7 billion (Kenya).
Also, the value of exports to China from Africa in 2021 was estimated to be around $105.9 billion, from which $33 billion was from South Africa, $21 billion from Angola, $12 billion from DRC, $5 billion from the Republic of the Congo, and $4 billion from Zambia.
Source: http://www.sais-cari.org/data-china-africa-trade
China’s exports to Africa increased to about $149 billion in 2021 and this was as a result of the former’s export of essential pandemic goods such as pharmaceuticals, PPEs, masks, hazmat suits, chemicals, and digital hardware.
Commodities Imported/Exported between China and Africa
Africa’s main exports to China include minerals (such as oil, copper, and iron), metals, crude oil, and agricultural products (such as rubber, cotton, and coffee). Commodities imported/exported between China and Africa are further broken down thus:
Table: Sub Saharan Africa Exports and Imports from China over the period 2007-2017.
FOCAC 2021/ Belt and Road Initiative/ AfCFTA
China, under the frameworks of the Forum on China-Africa Cooperation (FOCAC) and the Belt and Road Initiative (BRI), continues to play a significant role in helping Africa develop its region. This is as it continues to invest in modern infrastructure projects such as railways, roads, ports, dams, airports, industries, etc. in the region.
For instance, China has helped Zimbabwe with infrastructures such as the expansion of Hwange Thermal Power Station, the expansion of Robert Gabriel Mugabe International Airport, and the construction of a new parliament building.
Similarly, it helped Kenya in constructing a modern Standard Gauge Railway (SGR) that connects Mombasa’s port and Naivasha’s inland (dry) port. Other projects in Africa include African Union Conference Center, the Addis Ababa-Djibouti Railway, the Mombasa-Nairobi Railway, among others.
It is pertinent to note that Africa still relies heavily on China to fully realize its potential as regards to economic development, trade promotion, human capacity development, construction of infrastructures, among others. However, as a way of showing seriousness in promoting intra- and inter-regional trade, it needs to establish manufacturing bases so it can rely less on natural resources and create more material resources.
Similarly, it needs to invest heavily in reliable transport infrastructure so it can increase production for export. This restates AfCFTA’s vision to promote successful regional and international trade by connecting nations within the region together.
China, in its bid to help the region with infrastructure deficit, has, in the past few years, provided it with significant capital for key infrastructure projects. In addition, it has availed its expertise and experience to Africa to meet its developmental goals.
References
https://www.statista.com/outlook/dmo/ecommerce/china
https://qz.com/africa/2123474/china-africa-trade-reached-an-all-time-high-in-2021/
http://www.xinhuanet.com/english/20220228/f640902f8ba647be9dab9837c035420d/c.html https://www.scirp.org/journal/paperinformation.aspx?paperid=94000#:~:text=The%20observation%20of%20Table%203,%25)%2C%20Chemicals%20(6.84%25)
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