Africa’s trade deficit shrinks as exports to China surge – but experts say it won’t last

During the same period, however, Chinese exports to the continent fell marginally by 2.3 per cent to US$84.85 billion, figures from the General Administration of Customs showed. Over the six months, total China-Africa trade grew by 3.9 per cent year on year to US$145 billion.

Observers attributed the boost in imports from Africa to the increased production of minerals, rising commodity prices and the depreciation of key African currencies. But, they said, while a shrinking trade deficit was good news for Africa, it was not likely to last.

Resource-rich African countries have seen heavy investment from Chinese companies as they ramp up mineral production amid the global push for green energy. One such country is Zimbabwe, a major source of lithium, which has had an influx of billions of dollars worth of investments and acquisitions from China in the Asian giant’s push to dominate the lithium-ion battery market.

Similarly, the Democratic Republic of the Congo (DRC), which is the world’s largest producer of cobalt and a major source of copper, remains a major source of materials for China’s electric vehicle battery industry. China also imports minerals such as bauxite from Guinea and oil from Nigeria, Angola, Gabon and Ghana.