Bilateral trade with China will exceed $10.8bn this year

In almost every corner of Africa there is something that interests China, writes BBC journalist Adam Blenford. “There is copper to mine in Zambia, iron ore to extract in Gabon and oil to refine in Angola. In other countries less blessed by natural resources, Chinese companies have spied trading and investment opportunities.” Trade between China and African countries is expected to exceed $100 billion in 2010 with bilateral trade in some instances having risen by up to 65%. According to the Chinese Trade Ministry, more than 1600 Chinese companies are currently investing in Africa in the mining, trade, agriculture, construction and industrial sectors. While China has a long involvement with Africa going back to the early days of independence movements in the 1960s and before, the role of the East in Africa is on the rise. “With China growing at 12% per annum the rise of the East has been phenomenal,” says Nicky Weimair, senior Nedbank economist. “Africa’s growth is definitely tracking what is happening in the East, and therefore exports and production on the continent is increasing due to the investment and development that is happening.” In South Africa, seen by the East as the gateway into Africa, bilateral trade with China will exceed $10.8bn this year, officially becoming the country’s largest trading partner. Africa’s need for infrastructure, communications and power is well met by China, whose interest in the continent’s mineral resources cannot be under-estimated. Increasingly, the strategic interests of China and Africa are inextricably linked, says the World Economic Forum. Africa must, however, prove it is a reliable, predictable trade partner and attractive destination for investment, while China must listen to what Africa wants. “The challenge is to define clearly with China what we want and the direction of investment. Africa now needs to set the agenda much more energetically,” said Rob Davies, Minister of Trade and Industry of South Africa earlier this year. “China wants raw materials, but for Africa to benefit we must grow beyond suppliers of dirt out of the ground that goes somewhere else to be processed.” Research shows that Africa’s growth is tracking that of China. Chinese demand – either real or perceived – and relatively buoyant commodity prices are underpinning growth in sub-Saharan Africa, says the World Economic Forum. Part of China’s growth will depend on Africa’s ability to supply commodities. As a result, China and Africa’s relationship is changing from one where contracts were drafted and signed by African leaders to a true partnership, reflecting a strategic relationship in which Africa is increasingly engaged. “We have to understand China’s priorities and use them to our advantage. Structuring mutually beneficial economic relations is what it is about. It is in the interests of both parties to move forward,” says Davies.