The growing relationship between China and Sub-Saharan Africa : macroeconomic, trade, investment, and aid links

  title={The growing relationship between China and Sub-Saharan Africa : macroeconomic, trade, investment, and aid links},
  author={Ali Zafar},
  journal={World Bank Research Observer},
  • A. Zafar
  • Published 20 April 2007
  • Economics
  • World Bank Research Observer
China’s economic ascendance over the past two decades has generated ripple effects in the world economy. Its search for natural resources to satisfy the demands of industrialization has led it to Sub-Saharan Africa. Trade between China and Africa in 2006 totaled more than $50 billion, with Chinese companies importing oil from Angola and Sudan, timber from Central Africa, and copper from Zambia. Demand from China has contributed to an upward swing in prices, particularly for oil and metals from… 

Figures and Tables from this paper

Growth of Chinese trade and investment flows in DR Congo – blessing or curse?
China’s increased presence in Africa has generated considerable interest among researchers in recent years. Traditionally, the United States (US) and the European Union (EU) were the only major
Impact of China's Economic Cooperation and OFDI on its Trade with Africa *
China’s increasing engagement in Africa since 2000 is often seen as driven by market potential and natural resources endowments with however an absence of empirical studies. To complete this absence,
The impact of China, the EU and the US on Africa’s economic growth through trade linkages.
China, the EU and the US are the top 3 destinations for exports from Africa. The implication for this relationship is that economic growth in these economic giants will have an effect on the
China and Africa : expanding economic ties in an evolving global context
Economic growth in Sub-Saharan Africa (SSA) has averaged roughly 5 percent per year over the past decade, improving living standards and bolstering human development indicators across the continent.
Investing in Sub-Saharan Africa: The Growing Presence of China Investment in Sub-Saharan Africa
In the paper we review Chinese foreign direct investment in Africa, which have increased significantly in the last decade. The pattern and magnitude of China’s outward foreign direct investment (FDI)
Trade and Industrial Policy in Africa: the Impact of China's Growing Influence in the Region
In recent years, China-Africa trade and economic relationship, fueled by China’s economic demand for oil and raw materials, has been on the increase. This has raised several questions which include:
Africa: blessed or cursed by Chinese FDI?
In the last three decades China has transformed itself from a subordinate economy into the second largest economy in the world. To support its growth it needs an enormous amount of commodities. China
China's Growth and the Agricultural Exports of Sub-Saharan Southern Africa
The implications of China's growth for the development prospects of sub-Saharan Africa have been the subject of recent attention. Interest in this topic is motivated by the increasing presence of
Economic Growth and Convergence: How Far is China from Africa ?
This paper focuses on the distances in time and economic space between China and Sub-Saharan Africa, which are today quite the reverse of the 1960’s. It analyses income gaps between China and Africa,
Chinese Exports to Africa: Competition, Complementarity and Cooperation between Micro-Level Actors
China's trade relations with Africa have displayed a striking dynamism in the past decade. The spatial distribution of these trade flows is highly uneven: Chinese imports are mainly sourced from a


Trade Liberalization and Its Role in Chinese Economic Growth
In terms of their participation in the international economy it would be difficult to envision two more contrasting cases than China and India. Whether the base line is the time of independence for
Macroeconomic Policies: New Issues of Interdependence
Three novel macroeconomic policy challenges are discussed in this paper: the macroeconomic implications of China’s emergence; the implications of intensifying financial integration; and the
Regional integration in Central Africa : key issues
The CEMAC, (Communaut conomique et Monire de l'Afrique Centrale ), is one of the oldest regional arrangements in Africa, consisting of Cameroon, Central African Republic, Chad, the Republic of Congo,
The Rise of China and India: What's in it for Africa?
China’s and India’s strong appetite for energy and metal has boosted international prices and the volume and value of African exports. China in particular has become the main trade partner for a
China's Global Hunt for Energy
AN UNPRECEDENTED need for resources is now driving China's foreign policy. A booming domestic economy, rapid urbanization, increased export processing, and the Chinese people's voracious appetite for
The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?
The African Growth and Opportunity Act (AGOA), signed into American law on May 18, 2000, is a major plank of U.S. initiatives toward the African continent. The Act aims broadly at improving economic
Patterns of Africa-Asia trade and investment: potential for ownership and partnership
The main objective of this report is to build a basic understanding of the potential of Africa-Asia trade and investment relations. The importance of South-South trade has been recognized for some
China's Role in the Revived Bretton Woods System: A Case of Mistaken Identity
This paper argues that the way in which China is portrayed in the revived Bretton Woods thesis (BW2) is not consistent with several important trends in, and features of, the Chinese economy; nor does
The Impact of the Strong Euro on the Real Effective Exchange Rates of the Two Francophone African Cfa Zones
The author estimates the degree of misalignment of the CFA franc since the introduction of the euro in 1999. Using a relative purchasing power parity-based methodology, he develops a monthly panel
The Africa Growth and Opportunity Act and Its Rules of Origin: Generosity Undermined?
This paper describes the United States recently enacted Africa Growth and Opportunity Act (AGOA) and assesses its quantitative impact on African exports. The AGOA expands the scope of preferential