Africa sees benefit in China's trade policy

During the recently concluded two sessions of the top legislature and political advisory body, China pledged to stabilize foreign trade while upgrading its structure, which analysts say presents an opportunity for African exporters.

China will "keep the volume of foreign trade stable and refine its mix", expand cross-border use of the renminbi, promote cross-border e-commerce, expand trade in intermediate goods, and "advance digital trade and green trade" this year, said the Government Work Report presented on March 5.

Stephen Nduvi, a research fellow at the Global Centre for Policy and Strategy in Nairobi, said China's approach signals a move toward quality-over-volume trade, with more predictable market conditions.

African exporters in agribusiness, green products and processed commodities stand to benefit, but they must enhance quality, traceability and competitiveness to maintain market access, Nduvi said.

With China-Africa trade reaching $348 billion last year, he said that while demand for raw materials from China remains strong, the focus is increasingly on higher-value and semi-processed goods. This shift could incentivize African nations to invest in local processing and industrial capacity, moving up the value chain, he added.

African countries have the potential to diversify exports to China, Nduvi said, pointing to sectors such as horticulture, textiles, cocoa derivatives and eco-friendly products.

Small and medium enterprises across Africa with digital readiness, traceable supply chains and strong branding are best positioned to scale in these markets, he said.

The expansion of cross-border e-commerce and overseas warehouse networks in China could further empower African businesses, he added.

"Platforms such as Tmall, JD Worldwide and Alibaba cross-border channels let (small and medium enterprises) showcase products, test consumer demand and scale efficiently," he said. "Overseas warehouses reduce delivery times and logistics costs, improving price competitiveness and service."

Barriers limiting those companies from accessing China's e-commerce market remain, including regulatory compliance, digital literacy gaps and integration with Chinese payment systems, he added.

Job creation

Maged Refaat Aboulmagd, an Egyptian diplomat and member of the Egypt-China Friendship Association, emphasized the opportunities arising from China's focus on digital and green trade.

"The services sector, which digital trade and green trade belong to, is considered the fastest sector to create jobs with relatively limited capital," Aboulmagd said. "Services represent more than 50 percent of new jobs in African societies. Most suited people to take these jobs are the youth."

African countries should invest in infrastructure to support green trade and sustainable supply chains, he said.

Partnerships with Chinese companies and engagement with United Nations agencies and financial institutions could help secure the capital and expertise needed to process exports locally and integrate into global supply chains, he added.

To take advantage of the evolving trade dynamics, he said governments must prioritize industrialization, agro-processing, rural vitalization, green energy, technical education, banking and financial integration, and regulatory reforms that facilitate partnerships with Chinese companies.

The African Continental Free Trade Area could be further strengthened through harmonized financial systems and improved infrastructure, he added.

Humphrey Moshi, a professor of economics and director of the Center for Chinese Studies at the University of Dar es Salaam in Tanzania, said Africa remains the least industrialized region in the world, heavily reliant on raw material exports while importing manufactured goods.

This phenomenon, he said, places Africa in a disadvantaged position against its trade — low value or price of exports, higher prices of imports, loss of jobs and missed technological opportunities — undermining Africa's development efforts and perpetuating the situation.

"China's intent to expand trade in intermediate goods fits quite well in fulfilling Africa's industrialization aspirations," Moshi said.

"It will go a long way in adding value to Africa's exports, diversifying the economic structures, creating jobs and promoting technological transfer."

He also underscored the significance of China's push for wider use of the renminbi in trade.

"China's initiative to de-dollarize trade transactions becomes a long-awaited blessing for African countries and beyond," he said.

The use of renminbi will not only promote trade among partners — because of reduced costs or exchange risk for African traders — but also provide African countries with an alternative payment system to the weaponized dollar, he said.

The scarcity of dollar and its ever-rising value against domestic currencies have not only fueled inflation but also increased the cost of living for ordinary people, he added.