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Zawya
an hour ago
- Zawya
Boom in China exports gives EAC first-ever trade surplus
A surge in exports to China helped the East African Community (EAC) post its first-ever trade surplus with the rest of the world in the quarter to March 2025, signalling a potential turning point in the region's global trade position. The eight-member bloc recorded a joint trade surplus of $840 million with global trading partners, its first positive balance in recent history, largely driven by a sharp rise in exports to China, its largest trade partner. The shift may have been partly influenced by the escalating US-China tariff wars, which some economists say could be pushing Beijing to diversify its sourcing of key commodities like minerals and agricultural products. EAC countries cumulatively exported commodities worth $17.7 billion to the rest of the world during the three-month period, a 47 percent increase from $12 billion in the same quarter last year, according to data from the EAC Secretariat. Imports from countries outside the region fell short of exports for the first, despite posting a 5 percent rise to $16.8 billion in March from $16.1 billion a year ago. This resulted in a net inflow of foreign currency into the region, easing foreign exchange pressures and helping stabilise the East African currencies that have long endured significant volatility from global economic shocks over the past five years. Read: Pain of Trump's tariffs on African economiesComing in the wake of record tariffs imposed on imports from several African countries by US President Donald Trump, which have since been paused to August1 at least, economists interpret the jump as a rush to beat a potential return of the levies.'The fact that it comes from exports is very positive. It could be that some exports were brought forward ahead of the tariff impositions,' said Phyllis Papadavid, an economist and senior research fellow at London-based think tank Overseas Development Institute. Indeed, exports to the US saw a steep 35 percent or $73 million jump during the year to March, hitting $280 million. But this accounted for just 1.3 percent of the total rise in EAC exports, suggesting other factors were at play. Deepening trade disputeOne such factor could be the deepening trade dispute between the US and China, which may have prompted Beijing to seek alternative suppliers, especially for minerals and agricultural products –two of its key imports from Washington. Exports to China from the region jumped to $5.8 billion in the period, a 66 percent increase from $3.5 billion last year, while imports from the Asian economic giant rose by a measly 7.6 percent to $4 billion, from $3.7 billion in March 2024. This marks the first time the EAC has recorded a trade surplus with China, reversing a historically lopsided relationship dominated by high-value machinery and electronics imports from Beijing. At the same time, EAC exports to four of its other top trading partners – United Arab Emirates (UAE), Hong Kong, South Africa, and India – also surged, further supporting the trade surplus. Hong Kong, for instance, recorded a triple growth in exports from the region in the year to March, from $561.9 million in 2024 to $1.58 billion this year, making it the third leading export source for East Africa after China and the UAE. EAC also saw a notable drop in the total value of imports from some of its leading trading partners, including the UAE, India, Russia, and Germany, also contributing to the surplus.'The EAC's total trade with the world has been increasing, with exports growing faster than imports,' notes Benard Wabukala, an economist and lecturer at the Makerere University Business School. Dr Wabukala agrees that the rise in demand for East African goods from the Chinese market has been behind the surging exports, and the trade surplus has been a long way coming.'Exports to China surged significantly, reflecting the strong demand from that market, and improvement in value and diversification of export products particularly agriculture and minerals,' he told The EastAfrican.'This trend has been coming and is likely to be sustained in the medium term, with current rains favouring agricultural production.'The EAC data shows that the export commodity that saw the largest increment over the period is copper and its articles, which nearly doubled to $6.6 billion, from $3.9 billion in March 2024, indicating a surge in exports from the Democratic Republic of Congo. Other exports that increased significantly include pearls, precious metals and stones, which rose by 77 percent to $2.95 billion from $1.67 billion. These are also largely exported by the DRC, and partly Tanzania and Uganda. Read: China's delight as Uncle Sam's once-favourite Ruto comes callingCoffee, tea and spices, which are exported largely from Kenya, Uganda, and Tanzania, also recorded a jump of $364.4 million, or 30 percent, to hit $1.2 billion over the period. While China remains the EAC's largest trade partner, intra-African trade is also gaining momentum. Trade with other African countries now accounts for 27 percent of the bloc's total merchandise trade, up from 22 percent last year. Intra-EAC trade has grown from 12.1 percent to 15.2 percent over the same period. Conversely, trade with the European Union and the Association of Southeast Asian Nations (Asean) has declined—from 8.1 percent and 6.7 percent of total EAC trade, respectively, to 6.9 percent and 6 percent. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
an hour ago
- Zawya
China, US in battle for Congo minerals as bid to end war gains momentum
The Democratic Republic of Congo is a wealthy but needy country. And so, when the US offered to boost the country's security in exchange for minerals, some in Kinshasa viewed it as a smaller bill to pay. So far, the US has led the Congo and Rwanda to sign a peace deal and has backed Qatar-led mediation talks between Kinshasa and the M23 rebels. Yet, beyond the search for peace is an ongoing battle for supremacy and control of minerals. In the face of global geopolitical changes, China has flung the transparency card and increasing its investments in the Democratic Republic of Congo. On July 14, Beijing published a White Paper on community development and the responsibility of Chinese mining companies in the DRC, signalling attachment to corporate social responsibility. The document covers 15 mining companies belonging to eight Chinese conglomerates located in the provinces of Haut-Katanga and Lualaba in the DRC. These firms are all involved in the exploitation of copper and cobalt mines as well as the production, smelting and sale of mining products. The White Paper on Community Development and the Responsibility of Chinese Mining Companies in the Democratic Republic of Congo was presented by the Association of Chinese Mining Companies in the DRC. Over the years, Chinese investment has exceeded the $10 billion mark. For China, the leading destination for Congolese mining exports, it is important to demonstrate the transparency of Chinese companies in the Congo at a time when the US is clearly showing its interest in Congolese mines. Data from the Central Bank of Congo shows that DRC exports up to 57.3 percent of its mining products. This figure is growing. In 2019, the Congo exported only 33 percent of its mining products to China. Chen Zhimin, president of the Association of Chinese Mining Companies in the DRC, said the firms have built 1,250 kilometres of roads for DRC, built power stations with a total installed capacity of 480 megawatts, built 21 hospitals that treat 800,000 patients a year, built 54 schools that accommodate 32,000 students, and reclaimed 6,700 hectares of land that reduce CO₂ emissions by 420,000 tonnes per year. He added that a total of $380 million has been invested in community development, $120 million has been invested in livelihood projects, 470 wells have been dug to solve the drinking water problem for 230,000 people, and 18,742 technicians have been trained. These details were provided at a time American companies are preparing to come or return to the Congo to invest in the mining sector and thus challenge Chinese hegemony in the DRC. Recently, American company KoBold Metals signed an agreement with the DRC for the exploitation of lithium. This agreement will be implemented in three key areas: The company is committed to investing in the Congo in the digitisation of geological data, mining using advanced technologies, including artificial intelligence, and the development of a lithium mining project located in Manono in the province of Tanganyika, in the southeast of the DRC. Benjamin Katabuka said that KoBold Metals' goal is to hire more Congolese people, train them, pay them and participate in the construction of infrastructure for the well-being of the population. The DRC and KoBold Metals are committed to 'cooperating to provide free public access to historical geoscientific data through the National Geological Service of Congo (SGNC) for the benefit of all,' said to a dispatch.'KoBold Metals will launch a large-scale mining exploration programme in the DRC, using the world's most advanced technologies to find critical mineral deposits that will be developed into world-class mines,' the partnership agreement states.'The economic partnership between the United States of America and the Democratic Republic of the Congo promises sustainable growth, innovation and tangible benefits for Congolese communities,' said Lucy Tamlyn, US Ambassador to the DRC. During the publishing of the White paper the China Mining Association made commitments to the people of the DRC and the international community: Firstly, mining companies pledged to create a 'transparent mining industry' with all their efforts, by continuously deepening technological investments and management innovations, and improving the transparency and credibility of the global supply chain. Thirdly, they are committed to working together to develop a 'responsibility standard' and to study and formulate the 'Guide to Social Responsibility in the Mining Industry in the Democratic Republic of Congo.' This, Beijing said, will not be imposed on the country but will be based on local realities, and 'national conditions of the Democratic Republic of Congo and in line with international development trends,' in order to raise the level of responsibility of the entire industry to a higher level. China and the US have an established diet for minerals and a competition could benefit the DRC, if well managed. Yet, a few years ago, this increasingly visible competition led to heated exchanges and statements between the Chinese ambassador to the DRC and Mike Hammer, the US ambassador to the DRC until 2022. Today, the debate between American and Chinese preferences is taking place among the Congolese. Against the backdrop of war in eastern DRC, punctuated by peace negotiations led by the United States and a forthcoming agreement between the DRC and the United States on mining in Congo, the public here believes that that Washington is helping Congo more than Beijing in this time of crisis. This criticism prompted a response from Zhao Bin, China's ambassador to the DRC: 'The DRC and Rwanda have signed a peace agreement in Washington. This de-escalation is a good thing in itself. However, discordant voices are being raised in public opinion, with some going so far as to say that China is ignoring the DRC while the United States of America is supporting the DRC.'Is this really the case? Our support for the DRC is unwavering. Our position has never been volatile or changed overnight,' said China's ambassador to the DRC, before adding: 'We have neither used the DRC as a bargaining chip for our own ends nor introduced any discriminatory measures against it. China adheres to its own diplomatic principles, such as non-interference in the internal affairs of the DRC, but it has always provided concrete and effective assistance to the DRC in its own way.'Zhao recalled that, as President of the Security Council, China succeeded in getting Resolution 2773 in favour of the DRC unanimously adopted. Although the debate rages on, for the DRC, the issue will be one of diversifying its partners. This is why, in September 2024, the DRC signed a military cooperation agreement with China aimed at strengthening the capabilities of the DRC Armed Forces. In 2024, the DRC and China renegotiated the 2008 'contract of the century' which had given Chinese firms extensive copper and cobalt mines in exchange for infrastructure development. Officials in the DRC said the renegotiated deal would yield some $4 billion in additional benefits for the Congolese per year. Previously, the Chinese had agreed to a $6 billion funding for infrastructure in areas they operate but was heavily criticised after Beijing fell behind the pledge and claims of lack of transparency ensued. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc.
Zawya
3 hours ago
- Zawya
Egypt: Red Sea Petrochemicals, CNCEC sign framework deal for SCZone Project
Arab Finance: Red Sea National Petrochemicals Company and China National Chemical Engineering Co., Ltd. (CNCEC) signed a non-binding framework agreement to implement a petrochemicals project in the Suez Canal Economic Zone (SCZone), according to a statement. The signing ceremony took place in Beijing, reflecting the strategic partnership between Egypt and China. The project is one of Egypt's most prominent future projects in the chemical industry. Ibrahim Abdelkader Mekky, Chairman of Egyptian Petrochemicals Holding Company (ECHEM), highlighted that the deal marks a milestone on the road to executing a promising project that will enhance Egypt's export capacity and create broad development opportunities. He noted that CNCEC is willing to contribute to the project's capital by arranging financing covering up to 85% of the value of the engineering, procurement, and construction (EPC) contract. The Red Sea project enjoys significant competitive advantages, most notably its strategic location near the Suez Canal and the availability of production unit licenses, according to Mekky. The chairman indicated that these advantages make it highly attractive for investment, especially in light of the increasing global demand for products such as polyethylene and polypropylene. He added that cooperation with CNCEC is witnessing rapid development, as three major contracts were signed this year with TCC, a subsidiary of the Chinese group, at a combined value of nearly $1 billion. These agreements include projects to produce soda ash, silicon, and bioethanol, as part of Egypt's efforts to reduce dependence on imports and localize strategic industries. © 2025 All Rights Reserved Arab Finance For Information Technology Provided by SyndiGate Media Inc. (
