China’s trade with Africa gets boost from rising commodity prices despite impact of Covid controls

The increase was fastest in the early part of the year before the Shanghai lockdown and supply chain disruptions hit

Analysts say the rise in the price of oil and other commodities helped African countries, but warn the rest of the year may see slower growth

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A China-Africa Economic and Trade Expo in Changsha, the capital of Hunan province, which the authorities plan to make a major hub for trade with the continent. Photo: Xinhua

Published: 12:00pm, 6 Aug 2022

Trade between China and Africa grew by 16.6 per cent to US$137.4 billion in the first half of this year, boosted by a recovery in commodity prices, especially oil.

China imported goods worth US$60.6 billion from Africa, a 19.1 per cent increase compared with the same period in 2021, according to the latest figures from China’s General Administration of Customs. Meanwhile, exports to the continent increased by 14.7 per cent to US$76.8 billion.

However, growth was fastest in the earlier part of the year, with analysts attributing the drop-off to pandemic-related supply chain disruptions including the Shanghai lockdown and port closures.

A shutdown at the port of Durban in South Africa, through which nearly a fifth of Africa-China trade passes, as a result of floods may also have affected the flow of some commodities.

Charles Robertson, the global chief economist at investment bank Renaissance Capital, said a recovery in commodity prices will have fuelled the rise in China’s imports from Africa. But he warned: “China’s slow imports growth in June suggests the second half may see slower growth.”

Last year total trade between Africa and China rose by 35.3 per cent year on year to US$254.3 billion, while African exports surpassed pre-Covid figures by rising 43.7 per cent to US$105.9 billion.

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