Mapping China’s Trade with Sub Saharan, Africa: A Financing Mechanism
Ghirmai T. Kefela*
Abstract
Attempt has been made to examine China’s trade with
sub-Saharan countries and its impact on African‘s
development as a financing mechanism. To achieve this
main objective a systematic literature review is carried
out. Literature review reveals that China’s financing in
Africa is based on bilateral cooperation. China’s aid
makes the African continent more attractive: Firstly
because like any other western agencies China’s aid does
not impose political and economically conditional
requirements. Secondly China is investing in the areas
because western aid-giving agencies and private
investors have since long neglected to provide this
region with like physical infra-structure, industry and
agriculture. In 2006, China formulated its African
Policy Paper, wherein China-Africa bilateral cooperation
was focused on: (i) political and economical
development, which covers high level visits for trade,
investment, finance and natural resources, (ii) human
resource developments with focus on education, science,
and technology, and (iii) peace and security focusing on
military, and conflict settlement. Africa represents an
enormous market and urgently needs infrastructure
development, which is one of it’s main concentrated
objective in aid relations. As a result, their relation
is expected to achieve lasting impact on the continent’s
development and would transform the commercial
engagement between the region and the Asian economic
giant.
JEL Classification: A13, J24, F42, F02
Keywords: economic integration, trade policy, international migration, Africa, China
