CHINA and Africa will see their bilateral trade becoming more diversified in the next 10 years, with higher Chinese exports of manufactured goods, a senior executive with British bank Standard Chartered has said.
The China-Africa trade has been growing at 28 percent annually over the past 10 years. Customs data showed the bilateral trade hit a historical high at US$126.9 billion in 2010.
There are high hopes that the trade value may set a new record this year as the bilateral trade has already hit US$122.2 billion, or an annual jump of 30 percent, in the first nine months, according to China's Ministry of Commerce.
Speaking to Shanghai Daily in an interview, Stephen Priestley, managing director and regional head for Africa of the bank's Origination and Client Coverage group, said that even as China import natural resources from Africa it will also increase export of capital goods to the continent.
"We estimate there will be increasing exports of Chinese manufactured products to Africa, such as construction and transport equipment. China will also export more value-added and processed agricultural goods to Africa," he said.
To attract Chinese investment, some African countries are trying to smoothen trade procedures with China. "For example, it took months to open a business in Rwanda but now it only takes five days," Priestley said.
By the end of 2010, more than 2,000 Chinese companies have invested in the continent and Priestley urged Chinese companies to take advantage of the European debt crisis to tap the trading opportunities available as trade flow between Europe and Africa slows.
China is also promoting the international use of the yuan to settle cross-border trade, and Nigeria has decided to use the yuan as part of its reserve currency in December 2010.
Priestley said he believes more African countries will follow Nigeria's move gradually.
In May, Standard Chartered conducted the first trade settlement in the yuan for a South African steel company, he said.
"It is totally realistic that 40 percent of (China-Africa) bilateral trade will be conducted in RMB (yuan) by 2015," Priestley said.