Africa’s
Economy Has Bright Outlook- Expert
A
leading economic expert in Africa has said that all African
economies, except South Africa, will grow this year because of
China's demand for their raw materials.
Martyn Davies,
Executive Director of the Centre for Chinese Studies,
Stellenbosch University, told a conference that out of 53
African states only the continent's biggest economy, South
Africa, will not grow this year.
According to him,
’’Chinese demand is underpinning African growth."
Davies, who is
also the chief executive of emerging market investment
strategist Frontier Advisory said, Africa is already exporting 1
million barrels per day of oil to China, accounting for 25
percent of China's foreign energy supplies, these links are
based on strong support by African leaders for Chinese
investment in extractive industries, in contrast to objections
raised to Chinese investment in sensitive sectors in developed
countries.
’’China's
engagement in Africa, where it is the biggest trading partner,
reflects both state enterprises benefiting from preferential
capital from state banks, and private entrepreneurs, of whom
around 1 million may now be in Africa,’’
he said.
China's export
prowess has so far failed to provoke much protectionism in
Africa, except, again, in South Africa, where sensitive
labour-intensive sectors such as textiles and light industry
compete with Chinese firms, he said.
Chinese imports
from Africa come in at an average tariff of 0.64 percent,
almost the duty-free level sought by developing countries in
rich markets, because of China's eagerness to facilitate imports
of African energy and commodities.
The conference
on China was organised by the International Centre for Trade and
Sustainable Development (ICTSD).
REUTERS/Yinka
