NAIROBI (Reuters) – China’s zero-tariff access for Africa’s least developed countries kicked in this week, a senior Chinese diplomat said, just as U.S. President Joe Biden visits Angola.
WHY IT’S IMPORTANT
China and the United States have jostled for influence in Africa, with the former lending billions of dollars via its Belt and Road Initiative, before significantly scaling back in 2019, and the latter struggling to gain traction.
China announced a pivot from outright lending to trade and investments in 2021. Some countries it lent to have defaulted on debts, starting with Zambia in 2020.
Biden, meanwhile, promised the U.S. is “all in on Africa” during his first visit to the continent this week.
BY THE NUMBERS
China began implementing zero tariffs for a range of products from Africa’s LDCs in 2005.
But consultancy Development Reimagined said Beijing’s move expands this, removing tariffs from a further 140 products, including rice, wheat, sugar, cotton and paper and wood.
The European Union has no tariffs for LDCs, with the exception of arms and ammunition, while the United States has schemes to boost LDC trade, as well as duty-free access for certain African countries.
According to UNCTAD, in 2022, China was the main export destination for Africa’s developing economies, with $101 billion, followed by Italy with $46 billion, India with $42 billion and Spain with $39 billion.
CONTEXT
Critics say China’s relationship with Africa remains largely extractive – with African countries exporting oil, copper or cobalt and China selling back higher-value finished goods.
Development Reimagined Chief Executive Hannah Ryder, said Beijing’s zero-tariff implementation could boost its appeal.
“‘Follow through of promises’ is something the Chinese government is keen to emphasise that it does when it comes to Africa, in some cases, in comparison to other development partners,” Ryder said.
(Reporting by Duncan Miriri and Libby George; editing by Barbara Lewis)
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