World
China’s Trade With Africa Reaches Record Highs
By Virusha Subban
According to China’s Ministry of Commerce, trade between China and Africa increased by 40.5 per cent year-on-year in the first seven months of 2021 and was valued at a record high of $139.1 billion.
The Ministry noted that African products were increasingly being recognised in the Chinese market and that imports from Africa into China increased by 46.3 per cent between January and July 2021.
Further, the import of agricultural products, such as rubber, cotton and coffee from Africa into China doubled when compared to the first seven months of 2020.
Data from the Ministry further revealed that over the last 20 years, China’s trade with Africa has risen 20-fold, showing that China is Africa’s biggest bilateral trading partner.
A recent report by Economist Corporate Network, supported by Baker McKenzie and Silk Road Associates, BRI Beyond 2020 (Economist report), showed how these strengthening trade links are, in part, a result of favourable financial incentives offered to African jurisdictions by China. According to the Economist report, 33 of the poorest jurisdictions in Africa export 97 per cent of their exports to China with no tariffs and no customs duties.
This report noted that bilateral trade was still heavily centred on China’s import of Africa’s natural resources. However, in recent years China had increased its import of manufacturing products from more diversified economies such as South Africa.
A Baker McKenzie report with Oxford Economics – AfCFTA: A Three Trillion Dollar Opportunity (AfCFTA report) – revealed that over three-quarters of African exports to the rest of the world were still heavily focused on natural resources, but that on the import side, manufactured goods accounted for more than half the total volume of imports into African jurisdictions.
Africa’s most important suppliers of manufactured goods were listed as Europe (35 per cent) China (16 per cent) and the rest of Asia, including India (14 per cent).
Africa’s strong reliance on foreign jurisdictions for its manufactured goods shows that for intra-regional trade under the African Continental Free Trade Area (AfCFTA) to fully succeed, more jurisdictions in the region must develop their manufacturing bases and reduce their reliance on natural resources.
As such, reliable transport infrastructure is vital for businesses in Africa to be able to scale up production for regional export. The continent also needs to redouble efforts to ensure that an adequate supply of water and electricity is available.
Additional investments in utility infrastructure will have the added benefit of incentivising foreign companies to set up production facilities on the continent.
To aid Africa with these massive infrastructure needs, China has provided significant capital for key infrastructure projects in Africa in the last few years.
A further Baker McKenzie’s report – New Dynamics: Shifting Patterns in Africa’s Infrastructure Funding (infrastructure report) – showed that lending by Chinese banks into energy and infrastructure projects in Sub-Saharan Africa saw a small uplift in 2020, despite the pandemic, although deal values were well below their 2017 peak.
In 2017, Chinese banks lent $11 billion to African infrastructure projects, which decreased to $4.5 billion in 2018, $2.8 billion in 2019 and $3.3 billion in 2020.
Overall, the numbers show that there has been a slowdown in the number of infrastructure deals from China, although they are by far still the biggest investors in the region. In the short term, the report noted that more targeted lending from China is expected.
Further, the Economist report pointed out that political and policy commitments between China and Africa have strengthened and expanded in their scope in recent years.
During the 2018 Forum on China Africa Cooperation, an official forum between China and all states in Africa, Chinese President Xi proposed eight major areas for nations to collaborate on: industrial promotion, facility connectivity, trade facilitation, green development, capacity building, health and hygiene, humanities exchanges, and peace and security.
Chinese companies recently supported the construction of three major economic zones in sub-Saharan Africa, including the Zambia-China Economic and Trade Cooperation Zone, the Eastern Industrial Zone in Ethiopia and the China-Nigeria free trade zone. Such investments have been helping to create jobs, develop local industries and facilitate trade.
However, as Africa reduces its over-dependence on natural resources and increases its manufacturing capacity, it must also ensure it develops other industries in a sustainable way.
To this end, the Economist report outlined how China and Africa have agreed to work together on improving Africa’s capacity for green, low-carbon and sustainable development, and to roll out more than 50 projects on clean energy, wildlife protection, environment-friendly agriculture and low-carbon development. The trade in sustainable goods and services is also expected to reap benefits for the African continent in future years.
Successful regional trade under AfCFTA will connect the region’s wealthier and poorer nations, promote the growth of value chains and lay the foundations for increased international trade in the process. As free trade under AfCFTA takes hold, the existing strong trade ties that African jurisdictions already enjoy with China and the continent’s other major trading partners, are expected to be further boosted.
Virusha Subban is a Partner and Head of Indirect Tax at Baker McKenzie in Johannesburg
By Kestér Kenn Klomegâh
Today, boosted by the Kremlin’s diplomatic push and support from the Ministry of Foreign Affairs’ Department of Partnership, Russian companies are moving with multitude of development projects and corporate entrepreneurial investments into Africa. St. Petersburg summit has also charted the roadmap cum well-designed strategies for boosting the entire bilateral economic cooperation with the continent whose endowed resources include the huge human capital.
The geography of Russia-African economic cooperation is steadily expanding. As previously reported, the Russian Industry and Trade Ministry, since the beginning of 2025, approximately 150 Russian companies have moved into Africa. And with Africa, ready to engage in priority partnerships, the Russian registered company called A7 African Cargo Lines LLC (A7 ACL, Moscow) has started its logistics and shipping services to West Africa. According to the Unified State Register of Legal Entities, A7 African Cargo Lines LLC (A7 ACL, Moscow), was registered on April 17, and has its primary activity listed as railway freight transportation.
“We intend to operate in West Africa,” the Board Chairman Andrei Severilov, told Interfax regarding the company’s establishment. “At the first stage, with the assistance of the Russian trade mission in Nigeria, we are implementing a project to establish a direct shipping line,” Severilov said. According to the news report, the launch of a maritime route between Novorossiysk and Nigeria’s port of Lagos is planned for mid-June, with two container ships chartered for the line’s inauguration, each with a capacity of 700 twenty-foot equivalent units (TEU). Future plans also include establishing maritime connections with Senegal (Dakar port).
Severilov previously owned a 23.8% stake in PJSC Far Eastern Shipping Company (FESCO, the parent company of FESCO Transportation Group). In September 2024, Severilov announced his intention to re-enter the transportation business and established the asset management company A7 African Cargo Lines LLC (A7 ACL, Moscow), with a focus on Africa and primarily targeting to get substantive returns, in terms of, profits. It’s unique decision to take up logistics connecting Africa’s transport market is poised for significant trade growth, by transporting goods across the region and for exports to Europe.
By building a new shipping line that would connect the West Africa, first through Nigeria promises raising trade. Nigeria is Africa’s most populous nation and its largest economy. Nigeria is a key member of the African Continental Free Trade Area (AfCFTA), which is fostering intra-African trade and economic integration. In addition to above factors, Russian companies are showing increased interest in Nigeria, for example in reviving the countries largest steel plant. There is also interest in investing in Nigeria’s energy sector.
Undoubtedly, establishing A7 African Cargo Lines LLC (A7 ACL, Moscow) could be an explicit opportunity for promoting trade by its logistics infrastructure. Reports indicate that Russia’s exports to Nigeria currently amount to about $1.51 billion, mainly consisting of refined petroleum, wheat, and malt, while Nigeria exports a small amount to Russia, primarily cut flowers, other oily seeds, and nuts.
Further to that, the overall Africa’s trade statistics at the end 2024, soared to a record of $24.5 billion from the previous figure, approximate $20 billion that came up during the special panel discussions in 2023 when the second Russia-Africa summit was held in St. Petersburg, the second largest city in the Russian Federation.
By the next Russia-Africa summit slated for 2026, with high anticipation of more Russian enterprises dominating the African landscape, in spite of the existing complexities and challenges would extend or broaden the sphere of economic influence in the context of geopolitical power shifts being capitulated by the Western powers and President Donald Trump of the United States.
By Adedapo Adesanya
The leadership of the Catholic church should announce a successor to the late Pope Francis on May 7.
A new Pope will be elected via a conclave, which involves a secret voting system.
This was initially supposed to hold on May 5 but was delayed for two days to help the cardinal electors get to know one another better and find consensus on a candidate before they are sequestered in the Sistine Chapel.
The cardinals set the date after arriving for the first day of informal meetings following Pope Francis’ funeral on Saturday.
The College of Cardinals that will elect a new pope includes members from far-flung corners of the globe whom Pope Francis named over his 12-year papacy to bring in new points of views of the Catholic Church hierarchy.
According to reports, 135 cardinal electors — 108 of whom were appointed by the late Pope Francis — don’t know each other very well.
The last 20 were appointed in early December.
Only cardinals under 80 are eligible to vote, and it is not clear how many of the 135 will participate.
Who Could Be The Next Pope?
Some candidates have emerged and Business Post has gathered from several sources of the possible candidates that could emerge as the new Pope.
Italian Cardinal Pietro Parolin, the Vatican’s Secretary of State, is recognized for his diplomatic skills and is viewed as a moderate who could continue Pope Francis’ policies, although his involvement in a €200 million investment scandal may affect his candidacy.
Cardinal Matteo Zuppi, also from Italy, serves as the Archbishop of Bologna and is known for his focus on inclusivity and social justice, aligning closely with Francis’ pastoral approach.
Cardinal Pierbattista Pizzaballa, the Latin Patriarch of Jerusalem, has demonstrated a commitment to interfaith dialogue and peace efforts in the Middle East, and his selection would make him the youngest pope since John Paul II.
From the Philippines, Cardinal Luis Antonio Tagle is considered a rising star within the Church, known for his humility and compassionate outreach, particularly towards marginalized communities.
Cardinal Robert Sarah of Guinea is a prominent conservative voice, advocating for traditional Catholic teachings and liturgical practices, appealing to those seeking a return to doctrinal orthodoxy.
Hungarian Cardinal Péter Erdő is another leading conservative candidate, noted for his strong doctrinal stance and experience within the Church’s hierarchy.
Swedish Cardinal Anders Arborelius, the Bishop of Stockholm, is the first cardinal from Scandinavia and is known for his ecumenical efforts and commitment to dialogue within the Church.
Cardinal Fridolin Ambongo Besungu of the Democratic Republic of the Congo is an outspoken critic of liberal teachings within the Church, representing a conservative perspective from the Global South.
Dutch Cardinal Wim Eijk, a former medical doctor, is known for his conservative views, particularly on issues related to marriage and family, and his opposition to Pope Francis’ liberal approach.
By Adedapo Adesanya
Pope Francis has died at the age of 88 after battling illness in the last couple of months.
The Vatican announced his demise on Monday morning, a day after Easter.
The pontiff, who was Bishop of Rome and head of the Catholic Church, became pope in 2013 after his predecessor, Benedict XVI resigned.
His death was announced by Cardinal Kevin Farrell in a statement released by the Vatican.
He said: “Dearest brothers and sisters, with deep sorrow I must announce the death of our Holy Father Francis.
“At 7.35am this morning, the Bishop of Rome, Francis, returned to the house of the Father. His entire life was dedicated to the service of the Lord and His Church.
“He taught us to live the values of the Gospel with fidelity, courage and universal love, especially in favour of the poorest and most marginalised.
“With immense gratitude for his example as a true disciple of the Lord Jesus, we commend the soul of Pope Francis to the infinite merciful love of the One and Triune God.”
The process for choosing a new pope – conclave – generally takes place between 15 and 20 days after the death of a pontiff.
Cardinals from around the world will gather in the Vatican and choose the new leader of the Catholic church.
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