the International Monetary Fund has revealed that trade between in the sub-Saharan Africa and China has grown by more than 400 percent in 20 years.
The global lender confirmed that China’s share of African exports jumped significantly to 16.5 percent in 2015, from 1.6 percent in 1995. Imports have also appreciated from 2.5 percent to 23.2 percent over the same period.
However, trade slowed in 2015, when the value of African exports to China stood at $48 billion, having fallen from $105 billion in 2014, representing a slump of 54.29 percent.
“A recent analysis prepared by the IMF shows that this shift had a particularly big impact on commodity exporters, many of which are in Africa: in 2015, the value of African exports to China fell to $48 billion from $105 billion in 2014, putting pressure on exchange rates and foreign exchange reserves,” the IMF revealed.
“Sharply lower government revenue in commodity-intensive countries has forced them to cut public spending, including on badly needed infrastructure and social services. The short-term pain is acute.”