5 African countries that clear more goods from China

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5 African countries that clear more goods from China
African countries that clear more goods from China

5 African countries that clear more goods from China

The economic relationship between China and Africa has been in existence for a very long time. China has been Africa’s largest trading partner.

In 2020, the value of trade between Africa and China rose by 35% to $254 billion last year. This is mainly due to an increase in Chinese exports to the continent.

WHAT IS THE TRADE GROWTH BETWEEN CHINA AND AFRICA?

China’s export growth to Africa can be linked to essential pandemic goods such as pharmaceuticals, PPEs, masks, hazmat suits, chemicals, and digital hardware. These products were in high demand because China is the largest producer of these.

DEFICIT PROBLEM

Although there is an increase in trade, China’s export to Africa continually exceeds what the continent exports to China.

Due to this deficit, countries such as Rwanda and Ethiopia, are using creative marketing strategies to increase their export to the country. On the other hand, Kenya is also creating an online platform to sell its agricultural products. That’s because the Chinese have a high demand for agricultural products from Africa.

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In order to reduce this deficit, some trade experts say that policymakers in China need to relax their strict trade barriers in order for African countries to be able to export to China.

WHAT DO AFRICAN COUNTRIES IMPORT FROM CHINA

Chinese goods are gaining much popularity in most African countries due to the availability of less expensive products. Most traders and businesses have seized the opportunity to increase their profits by sourcing directly from these Chinese companies.

Mostly, China exports machinery and electronics, textile and apparel, hi-tech products, and finished goods. China has waived import tariffs on some goods in order for Africans to expand their export.

About 25 African countries enjoy zero-tariff treatment and special preferential tariff rates for exports of some 190 products to China, these products range from food, mineral product, and textile, to machinery and electronics.

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WHAT DOES CHINA IMPORT FROM AFRICA?

Africa’s main exports to China include minerals, metals, agricultural products, crude oil, and agricultural products.

AFRICAN COUNTRIES THAT IMPORT MORE FROM CHINA

  • Nigeria imports 16% of goods from China
  • South AFRICA SPENDS $21 billion on goods from China, they have 14% of its goods are imported from China
  • Egypt spends $18 billion importing goods from China and is set at 12%
  • Ghana spends $8 billion importing from China and their percentage is 5%
  • Kenya spends $7 billion and is set at 5%.

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