China International Import Expo Expanding African Opportunities

China hosted its First China International Import Expo (CIIE) in November 2018. As an internationally attended event, Africa was well represented at the first expo. Trade between China and Africa already sees China as the number one trade partner for many African countries, and a look into the already impressive figures of 2019 sees a continuation of this trend.

With the second iteration of the event occurring in November this year, and early 2019 growth figures being positive, how has this event served to highlight the strength of Sino-african relations?

The total trade value between

China and Africa in the first half of 2019 grew 2.9 percent year on year to $101.86 billion. Considering that 2018 total trade came to $204.2 billion, this is already impressive growth from only $87 billion 10 years prior. While China is still seen as a dominant force in the global manufacturing space, with many African countries importing various high-end machineries.

China’s shift to also increase the volume of their imports serves as an opportunity for Africa to alter this dynamic by initiating and expanding more exports of their own value-driven products. Chinese President Xi Jinping announced the concept of CIIE in 2017 at the

Belt and Road Forum for International Cooperation, with the aim of furthering China’s position as a major player in global trade, and opening China up as an export destination. The event also provides African countries a platform to showcase their products to more buyers than what can be accessed in their domestic networks.

African countries received unique benefits at the event, with countries such as Egypt and South Africa sharing guest of honor status at the inaugural event with 10 other countries, such as Mexico and Pakistan, while other less developed African nations were exempt from exhibition stand fees.

The success of the Second CIIE will only be seen weeks after the event, as buyers release the first tranche of their various commitments inked at the event. Africa, however, is already benefiting from these events, as more platforms have been provided to show that the continent is no longer just a source raw materials, but has also developed itself as a manufacturer in sectors and industries with products that can compete on the global stage.

Being well into the final quarter of 2019, it is a short wait until we can see what many expect to be ever increasing trade figures between China and developing economies of Africa.

1/Niger September:

Niger and China announced an agreement to build a 2,000-km pipeline to carry crude oil from southeastern part of Niger to Seme in Benin, costing an estimated $4.5 billion. The announcement came from Niger’s President Mahamadou Issoufou, with Chinese partner, China National Oil and Gas Exploration and Development Corp., a subsidiary of China National Petroleum Corp.

2/Ethiopia 3/Kenya 4/Namibia September:

A 433-km Chinese-built electrical transmission line was commissioned in September by Ethiopian authorities. The line is part of a 1,055km Ethiopian-kenyan transmission line being built by China Electric Power Equipment and Technology Corp. The project is funded by the World Bank and the African Development Bank at an expected total cost of $1.2 billion.

September:

SBM Bank Kenya announced a partnership with Chinese global payment network Unionpay for the rollout of prepaid cards in Kenya. Kee Chong Li Kwong Wing, Chairman of SBM Bank Group, said that the collaboration allows cardholders to utilize the global footprint of Unionpay for online, as well as real-time purchases. Unionpay is currently active in over 50 African markets.

September:

Huawei provided a sponsorship of $7,500 for the hosting of the Namibian Information and Communication Technology (ICT) Annual Summit. Huawei presented this sponsorship to Namibian ICT Minister Stanley Simataa.