China-Africa trade hits record US$282 billion with boost from Beijing and soaring commodity prices

Name: China-funded infrastructure across Africa force difficult decisions for its leaders
Uploaded: 2023-01-19T12:00:11.000Z
Duration: 1 min 25 s
Description: China-funded infrastructure across Africa force difficult decisions for its leaders

Chinese initiatives to address imbalance and import more African agricultural goods help grow trade by 11 per cent in 2022

Surges in oil, copper and cobalt prices bolster value of exports from resource-rich continent

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Crude oil prices spiked in 2022, boosting export values for petroleum-rich countries such as Nigeria. Photo: AFP

Jevans Nyabiage

Published: 8:00pm, 19 Jan 2023

Trade between China and Africa surged last year to a record US$282 billion – an 11 per cent year-on-year increase bolstered by soaring commodity prices, China’s reopening and Beijing’s recent push to boost imports from Africa.

According to Chinese customs authorities, exports to Africa totalled US$164.49 billion for the 12 months to December, an increase of 11.2 per cent year on year. Imports from the continent rose at a similar rate to reach US$117.51 billion in the same period.

It was the second consecutive year of growth after the Covid-19 pandemic had a devastating effect on trade in 2020.

Analysts attributed last year’s numbers in part to higher prices for commodities, as natural resources such as crude oil, copper, cobalt and iron ore account for a large share of Africa’s exports to China.

Brent crude oil prices were elevated for much of 2022. After starting the year at around US$79.65 per barrel, prices jumped to US$133.18 per barrel in early March – just weeks after Russia invaded Ukraine – and rose even higher in June before beginning a gradual decline.

Charles Robertson, global chief economist at investment bank Renaissance Capital, said rising oil prices in 2022 would have boosted the value of African exports. He added that China’s reopening was positive for trade but needed to be considered alongside continued problems in the real estate sector, which has ceased to be a long-term growth driver for imports.

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China-funded infrastructure across Africa force difficult decisions for its leaders

Copper reached its highest price ever in March 2022, trading above US$10,400 per tonne, but retreated in the second half to about US$8,400 per tonne by the end of 2022.

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