Coronanomics (9) - China, US-Africa Bilateral Trade Data - Changing Partners

Monday, June 15, 2020 /  05:16 AM / by Proshare Content/ Header Image Credit:  EcoGraphics

China-Africa bilateral trade has steadily been on the increase for the past 16 years. However, weak commodity prices since 2014 have greatly impacted the value of African exports to China, even while Chinese exports to Africa remains steady.

The value of the China-Africa trade in 2018 was $185bn, up from $155bn in 2017 (see Chart 23). Due to the interconnection between the Chinese economy and the African economy, the economic slowdown brought about by the spread of the coronavirus can easily be transferred.

Chart 23: China-Africa Bilateral Trade Data Overview

Source: UN Comtrade, Proshare Research

Top African Destinations for Chinese Export

In 2018, South Africa, Nigeria and Egypt were the top three destinations of Chinese exports. South Africa, Nigeria and Egypt imported Chinese goods worth $16.34bn, $13.5bn and $12.02bn respectively.  The African economy is largely inter-related with the Chinese economy, therefore disruption in Chinese supply chains will have a significant effect on the African economy (see Chart 24).

Chart 24: Top African Destinations for Chinese Export

Source: UN Comtrade, Proshare Research 

Top African Sources for Chinese Imports

In 2018, the top three largest exporters to China from Africa were Angola, South Africa and Congo. Angola, South Africa and Congo exported goods worth $25.65 bn, $8.55 bn and $6.7bn respectively. Restrictions in China's movement as a result of the coronavirus will cause a decline in demand for African exports. Countries such as Angola, South Africa and Congo that trade with China will be adversely affected (see Chart 25).

Chart 25: Top African Sources for Chinese Imports

Source: UN Comtrade, Proshare Research 

US-Africa Bilateral Trade

The value of US-Africa bilateral trade was $61.48 bn in 2018, a significant reduction from $129.93 bn in 2013. Unlike the China-US trade, the US-Africa trade has declined overtime reducing the span of US influence on the African economy (see Chart 26).

Chart 26: US-Africa Bilateral Trade ($' bn) Data Overview

Source: UN Comtrade, Proshare Research

US Export to Africa

The top four export destinations of US goods in Africa in 2018 were South Africa, Egypt, Morocco and Nigeria. South Africa, Egypt, Morocco and Nigeria imported goods worth $5.52bn, $5.05bn, $3.01bn and $2.69bn respectively in 2018 from the US (see Chart 27).

Chart 27: US Export to Africa ($' bn)

Source: UN Comtrade, Proshare Research

US Imports to Africa

In 2018, US imported goods from Nigeria and South Africa worth $8.65bn and $5.77bn  respectively. If the spread of the coronavirus persists in the US and African economy, there will be a fall in demand from the US which will adversely affect African economies such as Nigeria, South Africa, Angola and Algeria that engage in trade with the US economy (see Chart 28).

Chart 28: US Imports to Africa ($' bn)

Source: UN Comtrade, Proshare Research

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