‘Uneven’ trade between China and Africa could shift

The United Nations Conference on Trade and Development (Unctad) reported last month that that developing economies' exports now accounted for 45% of the world total and that this rise was evident between Asia and Africa.

For example, trade between China and Africa has grown from $10bn in 2000 to more than $200bn in 2013, making China Africa's largest trading partner.
However, notes Ti, almost 80% of Chinese imports from Africa are mineral products. On the other hand, African imports from China include machinery, textiles, chemicals and plastics and rubber.

This may soon shift to a more equal trade, says Ti, as investments and projects are on the rise despite risks such as political unrest. Foreign direct investment (FDI) into Africa has increased dramatically in the last decade and a half, and continues to grow. In 2013, FDI to Africa increased by 9.6% to about $56.6bn, representing 5.7% of global FDI. FDI is forecast to exceed $60bn in 2014.

“A growing number of logistics providers such as Agility and DHL provide services within and between the two locations. Other providers such as FedEx are expanding into Africa to take advantage of not only the potential domestic African opportunity but its expanding international reach as well,” says Ti.