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Africa-China trade seen significant increase
Saturday, 23 April 2011 01:07
(JollofNews) - Trade between Africa and China has seen a rise from US $11 billion in 2000 to US $129 billion in 2010,
a new report reveals.The Russia based Renaissance Capital report shows that while Chinese trade with the world has risen by eightfold, its trade with Africa has jumped to tenfold. China's fast growing economy with its resource hungry manufacturing industry has earned Africa a great opportunity to plug it economy into the global economy.
In the early 1990s, China's gross domestic product (GDP) was US $390 billion and that of Africa was US $405 billion. Currently, on purchasing power parity, the Chinese economy is approximately five times that of Africa.
The report projects that by 2015 trade turnover may reach US $400 billion, with a US $40 surplus for Africa. China's efforts to improve its trading position in Africa are coming with tied loans to the African governments. The conditions for these loans give Chinese companies contractor rights and only Chinese made goods are used in the development projects.
How much is Chinese investment in Africa?
The figures are conflicting. According to figures of the Chinese Ministry of Commerce, China's foreign direct investment quadrupled between 2005 and 2009, reaching US $9.3 billion. But, according to the US Heritage Foundation data, Chinese investments were US$44 billion for the period 2005 and 2010.
Written by Bubacarr Sowe
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