With more than $126 billion in trade with Africa, China has surpassed the United States to become the continent’s largest trade partner.
The rank is reflected in the annual meeting of shareholders of the African Export-Import Bank now under way in Beijing.
Jean-Louis Ekra, chairman and president of Afreximbank, told a press conference on Monday that the meeting will review the bank’s operations over the past year and look for new opportunities for the continent.
“This year, like many other years, we will have exhibitions, which is an opportunity for both Chinese and African partners to show what they produce and what they can export,” said Ekra. “Other activities usually include a forum, but this year we have an innovation.
“In addition to a bank advisory group that usually meets, we also give an opportunity for China-Africa cooperation in development that is open dialog.”
He said the forum will look at how China has developed its trade sectors over the past two or three decades “so that African exporters and traders can learn from that experience”.
Ekra said the rise of China as Africa’s top trade partner has been “quite beneficial” because the continent is now looking for equipment to diversify its exports by producing more finished goods.
“With the financial cooperation with China, our continent will be able to not only learn, but also develop actual goods,” he said.
Despite the economic crisis in many places in the world, the chairman said 2011 was successful for the bank as it had a net income of $15 million for the year.
The world economy has been growing “at a limited pace” over the past two years, and the traditional partners of Africa, including Europe and the Americas, are experiencing some financial difficulties, for example the euro crisis, Ekra said, adding it sends a “strong signal for Africa to have more diverse partners”.
“It’s no secret to anybody that over the past 30 years, China has become stronger and stronger as a player in the international economic arena,” he said. “From our perspective, it is a good thing that the world is diversifying.”
China Eximbank is a major shareholder in Afreximbank as one of the non-African institutions, but Ekra said that is only “to a limited extent”.
He expects more Chinese banks to take a share of African financial institutions. “We believe that it would be beneficial for both if that cooperation could be further expanded to other financial institutions,” he said.
Apart from government-level cooperation, the chairman also noted that it is now “the time for the private sector in Africa and China to get together”.
“There is a strong affinity between China and Africa that needs to be taken into account,” he said.
Afreximbank has planned a program for the private sector in both countries, which “will bring a win-win solution to solve difficulties and seek opportunities”, said Benedict Oramah, executive vice-president of the bank.
The program aims to find Chinese companies that are potential export sources and can work with African entrepreneurs. It also encourages African companies to export their goods to China.
The bank will provide not only financing services to the African companies, but also risk coverage for Chinese companies “that don’t have the expertise to understand the commercial risks in Africa”, according to Oramah.