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Africa’s trade pivot: Why businesses are looking to China and Asia

By Charles Mkoka

A growing number of African businesses are turning to China and other Asian markets as preferred trading partners, reflecting a deeper transformation in the continent’s economic relationships and its place in the global trading system.

A recent Africa Trade Barometer survey by Standard Bank, which covered more than 2,000 companies across ten African economies representing about 68 percent of sub-Saharan Africa’s GDP, found that 35 percent of firms now prefer trading with Asia, while China remains the leading supplier of industrial inputs for most respondents.

The findings highlight a broader shift in Africa’s economic orientation as businesses increasingly prioritize cost efficiency, supply reliability, and access to large consumer markets over traditional trade ties with Western economies.

African firms say the reasons for turning to China are largely practical.

According to the survey, 67 percent of respondents identified China as their primary source of inputs, citing competitive pricing, product variety, and faster response times from suppliers.

These factors have become particularly important for African economies attempting to industrialize and expand manufacturing capacity.

For many businesses, Chinese suppliers provide machinery, intermediate goods, and industrial components that support domestic production. As African countries attempt to diversify away from raw commodity exports, access to affordable industrial inputs has become a critical requirement.

“The 2025 edition of the barometer shows that more African businesses prefer China and Asia more broadly as trading partners,” said Philip Myburgh, head of trade at Standard Bank’s business and commercial banking division.

The shift reflects what many analysts describe as economic pragmatism rather than geopolitical alignment.

African companies are choosing partners who can deliver goods quickly, reliably, and at competitive prices. At the same time, the survey highlights declining enthusiasm for North American trade partnerships.

Only 4 percent of respondents identified North America as their preferred trading partner, making it the least favored region among African firms surveyed.

Several factors explain this decline.

Shipping costs between Africa and North America remain relatively high compared with routes to Asia. In addition, changes in trade policy have created uncertainty.

The expiration of the African Growth and Opportunity Act (AGOA) in September 2025, a key pillar of US-Africa trade, has raised concerns among exporters who relied on preferential access to American markets.

Recently, additional tariffs introduced by the United States, ranging between 10 percent and 30 percent, have further complicated trade flows.

Although some policy frameworks continue to support African exports, uncertainty surrounding trade rules and market access has encouraged companies to diversify their partnerships.

China has been Africa’s largest trading partner for more than a decade, and its influence continues to expand through infrastructure investment and development financing.

One of the most visible channels for this engagement has been the Belt and Road Initiative (BRI), a global infrastructure program launched in 2013.

More than 53 African countries participate in BRI projects, which include railways, ports, roads, and energy facilities designed to improve regional connectivity and trade logistics.

These investments are widely seen as addressing one of Africa’s most persistent economic challenges: the infrastructure deficit that increases the cost of moving goods across the continent.

Projects such as the Tanzania–Zambia Railway, originally built with Chinese support in the 1970s and now undergoing refurbishment, symbolize the longstanding cooperation between China and African nations.

According to scholars of international relations, the relationship also has deep historical roots.

During the anti-colonial struggles of the 1950s and 1960s, China offered diplomatic and material support to several African liberation movements and newly independent states.

This legacy has helped shape the political trust that continues to underpin China–Africa relations today.

China has recently moved to deepen these ties further.

Beijing announced that from May 1, it will implement zero tariffs on goods from 53 African countries with which it maintains diplomatic relations.

The policy effectively provides duty-free access for all African exports entering the Chinese market.

African diplomats and policymakers have welcomed the decision, viewing it as an opportunity to expand exports beyond traditional commodity sectors.

Grace Mutembo, Zambia’s High Commissioner to South Africa, described the policy as a significant opportunity for African economies seeking to expand trade.

However, experts caution that tariff access alone does not guarantee export growth.

African producers must also meet technical standards, supply chain requirements, and delivery timelines to compete effectively in international markets.

One of the key challenges facing African economies is how to move beyond exporting raw materials toward higher-value manufacturing and processed goods.

Despite the continent’s abundant natural resources — including oil, copper, gold, uranium, and agricultural commodities — Africa still accounts for less than 3 percent of global GDP.

This gap reflects the limited industrial capacity in many countries and their continued dependence on commodity exports.

Economists argue that stronger trade relationships with China could help accelerate industrialization if African governments focus on value addition and local manufacturing.

This means that processing minerals, refining agricultural products, and building supply chains within Africa, before exporting goods abroad, must be essential.

Such strategies could help African economies capture a greater share of global value chains.

The shift toward Asia also reflects broader changes in the global economy.

The international system is increasingly described as multipolar, with economic influence distributed among multiple major powers rather than dominated by a single global center.

For African countries, this environment presents both opportunities and challenges.

Rather than relying exclusively on Western markets, many governments are pursuing diversified partnerships with countries across Asia, the Middle East, and other parts of the Global South.

This strategy reduces dependence on any single trading partner and expands diplomatic and economic options.

Political analysts say this approach aligns with a long-standing principle of African diplomacy: non-alignment and strategic autonomy.

The evolving trade relationship between Africa and China highlights a broader question about the future of the continent’s development model.

If managed carefully, expanded trade and investment could support industrial growth, job creation, and infrastructure development.

However, success will depend on whether African economies can strengthen production capacity, improve logistics systems, and develop competitive industries.

Institutions such as the Forum on China–Africa Cooperation (FOCAC) have attempted to provide structured frameworks for cooperation, including agreements on infrastructure financing, technology transfer, and training.

At the same time, global trade institutions such as the World Trade Organization are under pressure to update their rules to reflect modern supply chains and digital commerce.

As the international trading system evolves, Africa’s ability to navigate these changes will shape its economic future.

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