China’s tariff-free access for African exports sparks hopes (and warnings)

China’s recent decision to remove all tariffs on exports from 53 African countries could reshape the continent’s trade future.

For the first time, countries like South Africa, Nigeria, Kenya, Egypt and Morocco can send a range of goods to China with no duty added.

Supporters say this could boost African industries, create jobs and open new markets – but critics worry it could mean Africa exporting raw materials and then importing finished goods at higher prices.

Research Director at the Centre for Africa-China Studies at University of Johannesburg, Dr Emmanuel Matambo says the policy offers relief, but not transformation.

"As long as Africa's industrial capacity remains as limited as it is, these tariff removals will just give us an outlet, an alternative to supress some of the adverse impacts that have been coming from the imposition of the White House tariffs."

Matambo says since 1978, China has done two things that have proven very helpful for its own development that countries on the continent could learn from.

The first was to make use of its competitive advantage, which in the 1970s was a very big labour base.

"[This] saw the importation and exportation of a lot of industries from the West to China, where costs for labour were considerably less."

The second thing, says Matambo, was to upskill its citizens.

"In the 1980s China was sending hundreds of thousands of its students to the United States, Europe and Japan to learn tech skills, that is what we need to be doing as Africa."

Africa's failure to follow in China's footsteps and upskill its young population is creating a 'ticking time-bomb', says Matambo.

To listen to Dr Emmanuel Matambo in conversation with 702's Bongani Bingwa, click the audio below: