China and Africa continue to build stronger ties despite opposition from other groups with 2010 bilateral trade volume expected to surpass the record highs in 2008.
Although 2009 levels suffered after facing a slight decline from the beginning of the year, the China-Africa Trade and Economic Relationship Annual Report 2010 shows that 2010’s trade between Africa and China should exceed 2008’s $106.8 billion.
China surged when other leading countries faltered due to the economic crisis with the Asian country seeing an 11.1% economic growth in H1 2010 alone. And Africa is expected to reach an economic growth rate of 4.5% in 2010 and 5.2% in 2011, according to the African Development Bank – and part of that growth can be owed to China. The country became the largest trade partner of Africa for the first time in 2009, with direct investment reaching $1.44 billion in which non-financial direct investment swelling by 55.4% compared to the previous year’s figures.
China is eying key sectors including renewable energy and finance with the country thrusting $9.3 billion into the continent. The next five years could see substantial growth in Asian investments for the Sub-Saharan energy market, according to an analysis released by Frost & Sullivan. The consultancy estimates that the total value of Asian commitments in the sub-Saharan African electricity sector was $4.44 billion as of 2008. The Asian country has been touting its ventures into the Africa continent, and trumped the West by becoming South Africa’s largest trading partner in 2009, according to South Africa’s Department of Trade and Industry (DTI). Angola accounts for 24% of China-Africa trade, South Africa follows with 17%, Sudan 8%, Nigeria 7%, and Egypt 6%, these five countries alone receive a combined 62% of China’s overall trade with Africa.
And while many Western powers have criticized China for its political stances on Africa, many African nations welcome the investments made by the country. Seychelles Minister of Foreign Affairs Jean-Paul Adam said at the UN’s 65th session, “We believe that China and Africa have an ideal opportunity to work together to set an example for the world on best practices eco-friendly technology transfer, to enhance the development of renewable energy.”
“China’s involvement in Africa is sincere with no strings attached – it isn’t political,” echoed China’s Premier Wen Jiabao at the 3rd Conference of African and Chinese Entrepreneurs in 2009. Even if China’s intentions in Africa were insincere, China is more than capable of putting up the much needed capital required by African governments to get projects off the ground. The Asian superpower is here to stay, for awhile at least.
Get your subscription NOW to receive the latest issue that includes a regional scope of Western Africa, geopolitical strategies at the expense of Africa, solar PV and cookers, and much more.