10 African Countries That Need A Break From Falling Chinese Imports In 2016
China imported nearly 40 percent less from Africa in 2015 than the previous year, but Chinese exports to Africa rose by about 4 percent in the same period, Chinese officials said Wednesday, according to a report in Mail&GuardianAfrica.
To withstand global volatility, Africa needs to develop its domestic capacity by increasing manufacturing and growing intra-African trade, U.S.-based World Bank said.
Natural resources from Africa such as oil and iron ore helped fuel China’s economic boom, and China became Africa’s No. 1 trade partner in 2009, giving it increasing political influence.
But growth has slowed in the world’s second-largest economy, and world prices for commodities have taken a beating. African exports have relied on commodities to boost the Africa-rising narrative.
China’s growth is becoming less dependent on heavy industry, further lowering demand for raw materials, economists say.
African oil exporters are expected to be especially hard hit. China said its imports from Nigeria slumped more than 50 percent by value last year. China’s President Xi Jinping announced In December $60 billion in loans for Africa, a sign of its continued commitment to the continent despite less investment.
China’s slowdown likely contributed to the economic slowdown in sub-Saharan Africa, where growth fell from 4.6 percent in 2014 to 3.4 percent in 2015, according to a new World Bank report.
Analysts are increasingly urging stronger trade with India.
China’s slowdown—China calls it a rebalancing— has helped depress global demand. It could be a bumpy ride in 2016 with the worst effects still ahead for Africa.
These are 10 African countries expected to be hit hard by falling Chinese imports in 2016.