China poses threat to intra-Africa trade

While it is one of southern Africa’s strongest trade partners, China is also the region’s strongest competitor for increased intra-Africa trade, according to Standard Bank Group head of Africa research, Phumelelo Mbiya. He told FTW that China not only planned its growth strategies over a century ahead, it made a “huge effort” to fully understand the markets with which it traded. Organisational consultant Dr Mongezi Makhalima agreed, pointing out that the Chinese government did extensive on-theground research about African cultures, customs, government and other social and financial leaders and used that knowledge to forge the right trade relationships. “China knows Africa extremely well – better than many African countries know each other – and they know how to exploit opportunities,” he said. Mbiya added that China, while investing a lot in other projects in emerging economies, was careful to fund its own development deals. “That is very telling and shows they understand the advantages of not being beholden to another government.” Africa House director Duncan Bonnett noted that South Africa should take a page from China’s book and enhance its knowledge of the continent beyond the Southern African Customs Union (Sacu) region. “The time is ripe for SA-based companies to adopt a new way of interacting with the region, especially at a time when global integration is paving the way for competitors,” he said, adding that they should look at that relationship beyond the of a single project opportunity to that of a longterm vision.