The Changing Africa-China Economic Relations and African Development

Slide 1: The Changing Africa-China Economic Relations and African Development Jian-Ye Wang International Monetary Fund

Slide 2: • The Africa-China economic ties are changing • The recent developments reflect a structural shift in international trade and finance • Growth in Africa has picked up, owing importantly to expanded trade and foreign investment • China’s rural development experience and African development.

Slide 3: Africa’s exports to China are soaring as its terms of trade improve (billions of US dollars) 35 Exports 200 30 Imports Terms of trade index (2000=100, right scale) 25 150 20 15 100 10 50 5 0 0 2000 2001 2002 2003 2004 2005 2006

Slide 4: China is increasingly contributing to Africa’s export growth (percent of Africa’s total annual export growth) 50 China Asia (excl. China) 40 Unites States EU-15 30 20 10 0 2000 2006

Slide 5: Africa: Composition of exports (percent of total exports to selected markets) Exports 120 100 80 60 40 20 0 China U.S EU-15 Other Crude material (excl. fuel) Fuel

Slide 6: Africa: Composition of imports (percent of total imports from selected countries) Imports China U.S EU-15 Other Manufactured goods Machinery & transport equip.

Slide 7: Other two-ways flows 1.5 400 African FDI to China (billions of U.S. dollars) 350 Chinese tourists to Africa (thousands, right scale) 300 African tourists to China (thousands, right scale) 1.0 250 200 150 0.5 100 50 0.0 0 2000 2001 2002 2003 2004 2005

Slide 8: Africa - China Trade, Aid Flows, and FDI (Billions of U.S. dollars) 2001 2006 Total Trade1 10.8 55.5 African exports 4.8 28.8 African imports 6.0 26.7 ODA and Debt Relief … 2.3 2 Chinese ODA … 1.0 Chinese debt relief 1.3 1.3 Foreign Direct Investment 3 Chinese FDI to Africa … 0.9 4 African FDI to China 0.3 1.1 Contracted Projects Chinese projects in Africa 1.8 9.5