Recently, 53 African leaders descended upon Beijing for one of the most significant events to highlight China’s leadership of the global south.
Being in Beijing during the summit can be frustrating (with huge amounts of traffic restrictions and controls meaning a half an hour journey could take two hours) to fascinating (bumping into South Africa’s popular minister for agriculture in the local Irish bar).
While the media and commentary were gushing – imagery of China’s president flanked by African leaders were front and centre, the numbers and activities tell a more nuanced picture.
When reading commentary on the China-Africa relationship of late, there is certainly a more nuanced approach at play.
The headiness of the 2010s has been replaced with more targeted investments and through the meeting, China pledged US$50bn over the next three years, more than 2021 (virtual meeting due to COVID-19), but less than previous years.
Most of the traditional investments in China are related to either resource extraction or infrastructure, but agriculture and food will continue to play an important role in the relationship.
China is a huge exporter of agricultural equipment to Africa; particularly Chinese tractors are popular as the modernisation of Africa’s agricultural sector continues at a pace.
African countries are also keen to export their agricultural wares to China, not least nuts and fruit, but now also moving into animal protein.
African produce
Chinese investors are scouring Africa for opportunities.
One such company is based in Kenya, called the Jinzai Food Group, which is processing anchovies and exporting them directly to China.
The products tend to be well-priced and of good quality
On the Alibaba supermarket platform, there are a wide range of African fruits and vegetables available all year round.
The products tend to be well-priced and of good quality – ticking important boxes for price-sensitive consumers.
Interestingly, Madagascar has become the first African country to export mutton to China, with a one tonne shipment air-freighted to a central province in China.
Whether this was done on the back of the meeting, or it will lead to a sustainable herd expansion or trading opportunity, remains to be seen.
On the fringes of the China-Africa meeting, a dairy protocol was announced between South Africa and China, allowing South Africa’s embattled dairy farmers access to a high-value market. This is another sign of China looking to diversify from traditional suppliers.
For China, trade with Africa only makes up 5% of its total trade, yet with US$280bn of trade, China is Africa’s largest trading partner.
In many ways, the China-Africa story is not a new one, but these latest trends should offer a moment for reflection and opportunity for us. Africa will be home to a quarter of the world’s population by 2050.
Feeding and nourishing this population is something where Irish farmers and Irish agriculture has and can continue to play a role. Are there areas where our approach is complementary to China?
Can we leverage a good bilateral relationship to create partnerships that serve our business and trading interests long into the future? That’s certainly what the aforementioned African minister mentioned over a pint of Guinness at our local in Beijing.
Ian Lahiffe.
Recently, 53 African leaders descended upon Beijing for one of the most significant events to highlight China’s leadership of the global south.
Being in Beijing during the summit can be frustrating (with huge amounts of traffic restrictions and controls meaning a half an hour journey could take two hours) to fascinating (bumping into South Africa’s popular minister for agriculture in the local Irish bar).
While the media and commentary were gushing – imagery of China’s president flanked by African leaders were front and centre, the numbers and activities tell a more nuanced picture.
When reading commentary on the China-Africa relationship of late, there is certainly a more nuanced approach at play.
The headiness of the 2010s has been replaced with more targeted investments and through the meeting, China pledged US$50bn over the next three years, more than 2021 (virtual meeting due to COVID-19), but less than previous years.
Most of the traditional investments in China are related to either resource extraction or infrastructure, but agriculture and food will continue to play an important role in the relationship.
China is a huge exporter of agricultural equipment to Africa; particularly Chinese tractors are popular as the modernisation of Africa’s agricultural sector continues at a pace.
African countries are also keen to export their agricultural wares to China, not least nuts and fruit, but now also moving into animal protein.
African produce
Chinese investors are scouring Africa for opportunities.
One such company is based in Kenya, called the Jinzai Food Group, which is processing anchovies and exporting them directly to China.
The products tend to be well-priced and of good quality
On the Alibaba supermarket platform, there are a wide range of African fruits and vegetables available all year round.
The products tend to be well-priced and of good quality – ticking important boxes for price-sensitive consumers.
Interestingly, Madagascar has become the first African country to export mutton to China, with a one tonne shipment air-freighted to a central province in China.
Whether this was done on the back of the meeting, or it will lead to a sustainable herd expansion or trading opportunity, remains to be seen.
On the fringes of the China-Africa meeting, a dairy protocol was announced between South Africa and China, allowing South Africa’s embattled dairy farmers access to a high-value market. This is another sign of China looking to diversify from traditional suppliers.
For China, trade with Africa only makes up 5% of its total trade, yet with US$280bn of trade, China is Africa’s largest trading partner.
In many ways, the China-Africa story is not a new one, but these latest trends should offer a moment for reflection and opportunity for us. Africa will be home to a quarter of the world’s population by 2050.
Feeding and nourishing this population is something where Irish farmers and Irish agriculture has and can continue to play a role. Are there areas where our approach is complementary to China?
Can we leverage a good bilateral relationship to create partnerships that serve our business and trading interests long into the future? That’s certainly what the aforementioned African minister mentioned over a pint of Guinness at our local in Beijing.
Ian Lahiffe.
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