Trade between China and Africa continued to expand in 2024, reaching a total value of $295.56 billion, a 4.8% increase compared to 2023, according to data from China’s General Administration of Customs. While this growth highlights the strengthening economic ties between the two partners, it also raises questions about the persistent structural imbalances in their trade relationship.
A narrower trade deficit, but challenges remain
China’s exports to Africa totaled $178.76 billion in 2024, an increase of 3.5%, while African exports to China reached $116.79 billion, up by 6.9% from the previous year. As a result, Africa’s trade deficit with China decreased slightly, from $64 billion in 2023 to $61.93 billion in 2024.
However, this reduction does not indicate a fundamental shift in the trade structure. It primarily reflects the rising prices of key commodities such as gold, copper, cocoa, and coffee, which are in high demand in China.
Structural trade imbalances persist
African exports to China remain largely dominated by raw materials (crude oil, copper, cobalt, iron ore), while China exports mostly finished goods (textiles, machinery, electronics) to Africa. This asymmetry continues to create a chronic trade surplus in favor of China, prompting calls for more balanced trade relations.
During the 9th Forum on China-Africa Cooperation (FOCAC), South African President Cyril Ramaphosa urged China to increase its imports of processed African goods, emphasizing the need to add more value to bilateral trade.
Tariff reforms to boost african exports
In response to these disparities, China has implemented a series of tariff reductions to encourage African exports. As of December 1, 2024, China eliminated tariffs on 98% of imports from 21 African countries, including Ethiopia, Rwanda, and Togo. Additionally, a 100% tariff-free regime now applies to imports from Least Developed Countries (LDCs) that maintain diplomatic ties with China, representing 33 African nations.
These efforts align with the goals announced by Chinese President Xi Jinping at the 8th FOCAC Ministerial Conference in Dakar in 2021. China aims to increase its imports from Africa to $100 billion annually starting in 2022, with a target of $300 billion per year by 2035.
Agricultural and commodity exports take center stage
In 2024, China increased its imports of African agricultural products, such as avocados, cashew nuts, sesame seeds, and spices, to meet growing domestic demand. Meanwhile, rising prices for key commodities like coffee contributed significantly to the value of African exports. For instance, coffee prices reached their highest levels since 1977 in 2023 due to increased demand and unfavorable weather conditions in Brazil and Vietnam.
An economic opportunity for Africa
Despite these positive trends, Africa faces significant challenges in fully leveraging its trade relationship with China. Regional integration, industrialization, and an expansion of processed goods exports are critical to enhancing the continent’s competitiveness.
China’s tariff reforms and its increasing demand for agricultural products reaffirm its position as a key economic partner for Africa. However, for this relationship to be more balanced, African economies must focus on diversifying exports and adding value to their raw materials.
The 2024 growth in China-Africa trade underscores the economic importance of their partnership. However, to foster a more equitable and mutually beneficial relationship, sustained efforts are required on both sides, particularly in industrial transformation and export diversification. Strengthening these areas could help Africa fully harness the potential of its trade with the world’s second-largest economy.
The Editor
