China and Africa

Pigato, Miria; Tang, Wenxia

China and Africa

Autores

Pigato, Miria

Tang, Wenxia

Editor

World Bank, Washington, DC

Descripción

Economic growth in Sub-Saharan Africa (SSA) has averaged roughly 5 percent per year over the past decade, improving living standards and bolstering human development indicators across the continent. Stronger public institutions, a supportive, private sector focused policy environment, responsible macroeconomic management, and a sustained commitment to structural reforms have greatly expanded opportunities for countries in SSA to participate in global markets. In recent years, many countries in the region have benefited from an increasingly favorable external environment, high commodity prices, and an especially strong demand for natural resources by emerging economies, particularly China. Over the longer term, leveraging Chinese investment to support broad-based growth will require policies designed to boost the competitiveness of sectors in which China s economic rebalancing may create a comparative advantage for SSA. To date, few African countries have been able to benefit from large-scale Chinese investment outside the resource sector. However, as China s growth slows and its economy shifts toward a more consumption-driven model, it is likely that global demand for resource imports will slow as well. Countries with the most heavily concentrated export mix, particularly in the mineral and oil sectors are the most vulnerable to China s economic rebalancing and should be ready to adopt measures to mitigate the impact of negative terms-of-trade shocks. By contrast, as wage rates in China continue to rise and firms refocus their attention on domestic demand, countries in SSA will be well positioned to exploit emerging opportunities for investment in export-oriented manufacturing. Ethiopia provides an instructive example, as its inexpensive yet relatively skilled labor force, coupled with the government s proactive efforts to court Chinese investors, have enabled Ethiopia to attract substantial investments in labor-intensive industries. Infrastructure enhancement, workforce development, and good-governance reforms offer a promising strategy for many countries in the region. Although the establishment of industrial zones has yielded mixed results, several salient success stories warrant careful attention. This report discusses how Africa could take advantage of the untapped opportunities offered by China s progressively intensifying investment and trade ties with SSA. It is hoped that this analysis will enrich the ongoing dialogue between policy makers, private firms, and civil society regarding China s increasingly important role in the growth and development of Sub-Saharan Africa.

Palabras clave

ACCOUNTING, AGRICULTURAL COMMODITIES, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTORS, AGRICULTURE, AMOUNT OF CAPITAL, APPROVAL PROCESS, BACKED FINANCING, BACKED LOANS, BANK FINANCING, BANKING LAWS, BASE YEAR, BENCHMARK, BILATERAL TRANSACTIONS, BUSINESS ENVIRONMENT, BUSINESS OPPORTUNITIES, CAPITAL FORMATION, CAPITAL INVESTMENT, CAPITAL REQUIREMENT, CAPITAL STOCK, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIAL LENDING, COMMERCIAL LOANS, COMMODITIES, COMMODITY, COMMODITY PRICE, COMMODITY PRICES, COMMUNICATIONS TECHNOLOGY, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPETITION POLICIES, COMPETITIVE ADVANTAGES, CONSUMER GOODS, CONSUMERS, CONSUMPTION RATES, COUNTRY MARKETS, CREDIT ACCESS, CREDIT LINE, CREDIT LINES, CREDIT PROGRAMS, CRITICAL INFRASTRUCTURE, CURRENCY, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANK, DEVELOPMENT BANKS, DEVELOPMENT FINANCE, DEVELOPMENT PROJECTS, DIRECT ACCESS, DIVERSIFICATION, DIVIDENDS, DOMESTIC MARKET, DOUBLE TAXATION, ECONOMIC COOPERATION, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC POWERS, ECONOMIC RESEARCH, ECONOMIES OF SCALE, EMERGING ECONOMIES, EQUIPMENT, EXCHANGE RATE, EXCHANGE RATES, EXPORT COMPETITIVENESS, EXPORT CREDITS, EXPORT GROWTH, EXPORT PROCESSING ZONE, EXPORTER, EXPORTERS, EXPOSURE, FINANCES, FINANCIAL ASSISTANCE, FINANCIAL BENEFITS, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL MARKETS, FINANCIAL NETWORK, FINANCIAL SERVICES, FINANCIAL SUPPORT, FINANCING ARRANGEMENTS, FIXED CAPITAL, FIXED INVESTMENT, FORECASTS, FOREIGN CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN OWNERSHIP, FOREIGN TRADE, FREE LOANS, FREE TRADE, GDP, GLOBAL EXPORTS, GLOBAL INVESTMENT, GLOBAL MARKETS, GLOBALIZATION, GROSS DOMESTIC PRODUCT, GROSS FIXED CAPITAL FORMATION, GROWTH RATE, GROWTH RATES, HOLDING, HOME COUNTRY, HUMAN DEVELOPMENT, INCOME, INCOME TAX, INDUSTRIAL ECONOMY, INDUSTRIALIZATION, INFLATION, INFRASTRUCTURE FINANCING, INFRASTRUCTURE PROJECTS, INITIAL INVESTMENT, INSURANCE, INTEREST RATES, INTERNATIONAL DEVELOPMENT, INTERNATIONAL ECONOMICS, INTERNATIONAL MARKETS, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTING, INVESTMENT CLIMATE, INVESTMENT CONTRACTS, INVESTMENT FLOWS, INVESTMENT OPPORTUNITIES, INVESTMENT POLICY, INVESTMENT PROJECTS, JOB CREATION, JOINT VENTURES, LABOR MARKETS, LARGE-SCALE INVESTMENT, LARGE-SCALE INVESTMENTS, LESS DEVELOPED COUNTRY, LIBERALIZATION, LINE OF CREDIT, LIVING STANDARDS, LOAN, LOAN PROGRAMS, LOAN SIZE, LOCAL GOVERNMENTS, LOCAL MARKET, LOW-INCOME COUNTRIES, MACROECONOMIC MANAGEMENT, MACROECONOMICS, MANUFACTURING INDUSTRIES, MANUFACTURING INDUSTRY, MERGERS, MIDDLE-INCOME COUNTRY, MONETARY FUND, MULTILATERAL DEVELOPMENT, MULTINATIONALS, NATIONAL DEVELOPMENT, NATURAL RESOURCE, NATURAL RESOURCES, NEW BUSINESS, OFFSHORE FINANCIAL CENTER, OFFSHORE FINANCIAL CENTERS, OIL RESERVES, OPERATING COSTS, OUTPUT, OUTSOURCING, PENSIONS, POLICY ENVIRONMENT, PORTFOLIO, PRICE INCREASES, PRIVATE ENTERPRISE, PRIVATE ENTERPRISES, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRIVATE INVESTORS, PRIVATE MARKETS, PRODUCTION CAPACITY, PRODUCTION COSTS, PROFIT MARGIN, PUBLIC SPENDING, RAPID INDUSTRIALIZATION, RATE OF RETURN, RATE OF RETURN ON CAPITAL, REAL ESTATE, REAL EXCHANGE RATE, REAL EXCHANGE RATES, REGIONAL INTEGRATION, REGISTRATION PROCESS, REGISTRATION SYSTEM, RENEWABLE ENERGY, SCHOLARSHIPS, SECURITIES, STABILIZATION POLICIES, TAX RATE, TAX SYSTEM, TECHNICAL ASSISTANCE, TECHNOLOGY TRANSFER, TRADE BALANCE, TRADE BARRIERS, TRADE LIBERALIZATION, TRADE PROTECTIONS, TRADING, TRANSACTION, TRANSACTION COSTS, TRANSFER PAYMENTS, TRANSITION ECONOMIES, TRANSPARENCY, TRUST FUND, UNION, URBANIZATION, VOLATILITY, WAGE RATES, WAGES, WORLD DEVELOPMENT INDICATORS, WORLD ECONOMY, WORLD INVESTMENT REPORT, WORLD TRADE