China has intensified its trade with Africa in the last decade and half under China’s global export leadership. This has seen China trade with the continent rising from US$198.49 billion in 2012 and reaching $295.5 billion in 2024, marking a 48.87%. the 2024 figure also marked a 6% increase from the previous year, per Chinese customs data.
Though trade with Africa has consistently increased, analysts have continued to fault the lopsided kind of trade with high export to Africa and less of import leading to a high trade deficit. In 2023, this imbalance resulted in Africa’s trade deficit with China reaching $64 billion, an increase from $46.9 billion the previous year.
On total trade volume, South Africa, Nigeria, Democratic Republic of Congo and Egypt stay atop other Africa countries with the quattro’s volume reaching $111.6 billion in 2024
South Africa leads in both export and import trade with China. Import from China to South Africa in 2024 was US$21.81 Billion a decline from US$23.7 billion. Nigeria follows with US$18.9 billion during 2024 and US$20.2 billion in 2023.
Its export to China stays ahead other countries’ export to China. The country’s export to China stood at US$12.41 Billion during 2024, a slight decline from the US$12.5 billion exported in 2023
On the side of export to China, South Africa still leads with US$30.60 billion exported in 2024, followed by Congo with $21.59 worth of Export. Nigeria appeared 6th with US$3.00 far behind countries like Angola, Guinea and Zambia.
Why does China import more from South Africa?
It must be understood that choice of import destination depends on several factors outside availability or abundance. Sector development, political climate and regulatory disposition play major role.
South Africa operates a more stable, mature, industrialized mining sector with a long history and advanced infrastructure. Against these, Nigeria grapples with unstable, undeveloped and poorly regulated mining sector plagued with poor infrastructure.
While Nigeria is rich in oil and concentrates on the commodity majorly, South Africa has a diverse developed minerals such as Platinum Group Metals (PGMs), gold, coal, iron ore, chromium, manganese, copper, and uranium. South Africa is recognized as a major producer of gold, with a long history of large-scale gold mining. China imported gold worth US$9.03 Billion from South Africa in 2024.
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Nigeria gold reserve is approximately 21.37 metric tons or over 687,000 ounces as of late 2024, valued at over $2.77 trillion. Though far less that South African’s 125.44 tonnes, a concerted attention on the resource would boost export value for the country.
A more serious challenge is corruption. Corruption in Nigeria significantly hampers imports as it increases costs, create arbitrary trade barriers and procedural hurdles. While corruption exist also in South Africa, its import costs are lower than in Nigeria.
