Over the past two decades, China has emerged as one of the largest business partners for sub-Saharan Africa, purchasing over a fifth of the region's exports, ranging from metals and minerals to fuel. However, China’s recovery from the pandemic has recently slowed, hindered by a property downturn and decreased demand for its manufactured goods amid a global slowdown.
This development is concerning for Africa: a one percent decrease in China's growth could lower Africa's growth by 0.25 percent annually, as highlighted in the IMF's Regional Economic Outlook. Particularly for oil-exporting countries like Angola and Nigeria, this impact could mean a 0.5 percent loss.
To navigate China's slowing economy, sub-Saharan African countries need to adapt through strategies such as enhancing inter-African trade with favorable tax policies, diversifying economies by leveraging their rich mineral resources to forge new trade relationships, and creating more business-friendly environments.
Source: IMF
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