China has emerged as the number one export destination for South African goods, surpassing the United States, according to figures received for trade for the first half of 2009. This is the culmination of the Asian giant’s efforts to scale up its trade links with all African countries. The biggest regional trading partner for South Africa is still the European Union. But South Africa’s exports alone to China touched an all time high of 27.6 billion rand for the first six months of 2008, as opposed to 35.8 billion for the 12-month period of 2007. In comparison the South African nation’s exports to the US were only 19.1 billion rand against 66.5 billion the year before. The overall trade figures indicate that China’s total trade with Africa amounted to $107 billion, a bit higher than the United States.
Economists find the Chinese footprint across the length and breadth of Africa. Though imports from China include machinery and equipment and a lot of finished goods, African exports are primarily comprised of minerals, oil and other precious natural resources. China has been lapping up every possible investment opportunity in Africa, with its largest bank acquiring a 20% stake in South Africa’s Standard Bank. Low interest loans, interest free loans, waiving of loans, are some of the ways that the Chinese have placed cash in the hands of African countries that have had natural resources in abundance but no cash for development. Over 800 Chinese state owned companies managed 900 projects in Africa, a substantial number of them involved in the oil sector.
China’s interest helped Africa pass the difficult period of recession that gripped the world with demand for its products continuing in much the same scale, especially at a time when western demand was suddenly withdrawn or drastically cut.
Source : Business Africa
