China will overtake Europe to become Africa's largest trading partner

Early 15th century, Zheng He led a fleet of seven voyages, a legend has arrived in the Arabian Peninsula and the east coast of Africa region, the achievements of maritime history. And as early as this before, China and Africa have been carried out for centuries in the trade, but it is known.

China-Africa trade can be traced back to 200 BC, followed by African, Arab and Asian scholars and travelers who have repeatedly described the prosperity of China and Africa porcelain, silk, cotton, gold, ivory and iron trade. These transactions benefit both China and Africa, after the Tang, Song, Yuan and Ming dynasties, the sixteenth century has flourished.

In the following four centuries, China stopped with the rest of the world trade, until the founding of New China, began to develop relations with other developing countries, and restart the Indian Ocean routes. However, it is still relatively slow start, China-Africa trade until the 1980s was more than one billion US dollars. In 2000, after the establishment of China-Africa Cooperation Forum, China-Africa trade developed rapidly, the total trade volume in 2013 increased by 29 times to 2,102 billion US dollars.

Although the impressive growth of China-Africa trade, but still huge room for improvement. Based Amanbo 16 years, China and Africa while trade in services and commercial success, they think China-Africa trade will take on three mutually reinforcing trends:

First, as the two sides to enhance the economic value chain and trade of raw materials and low-priced products will expand to high value-added products and services; secondly, the rise of the African consumer class will make China-Africa trade and investment cover more African countries; third, the end of 2020, we expect the yuan will become the core of the African currency payment, investment and reserves. Below, we discuss in detail these three trends.

Expand high value-added products and services

According to the current trends, China will overtake Europe to become Africa's largest trading partner in a few years. However, in recent years China-Africa trade remains confined to a large extent, the export of oil and other mineral resources in Africa, China's exports of textiles, clothing and low-cost machines, such cases in recent years appear until changed.

China-Africa trade and variety of products is undergoing rapid change. In recent years, Chinese high-end machines to African exports, communications equipment, electronic and electrical equipment, and motor vehicles increased rapidly, these high-end products has become a major part of China's exports to Africa. With these products, China can be more involved in infrastructure across Africa, Chinese investment in Africa's energy and mineral exploration industry is also increasing.

On the other hand, due to strong Chinese demand for energy, we are also actively seeking energy sources outside the Middle East and mineral resources in the next few years will continue to dominate Africa's exports to China. Currently, about a third of China's oil imports from Africa. Resource exports to Africa has brought much-needed funds, but also African governments to take measures to try to reduce over-reliance on raw materials exports.

African governments are rushing to Somalia from South Africa to open their economies to foreign direct investment in order to enhance the position in the value chain. Chinese enterprises to cooperate with the local government on African roads, railways, ports, airports and power plants has made billions of dollars in investment, partly to make up for about $ 93 billion per year in Africa's infrastructure funding gap. Infrastructure development will enhance the attractiveness of Africa to global enterprises, and thus help Africa rid of dependence on resource exports.

Providing high value-added export products, food processing and has tremendous opportunities. Africa has 60 percent of the world's uncultivated arable land, of which only 10% of the arable land can be used tractors, four percent have irrigation facilities. Improve productivity by promoting scientific farming techniques, the production and then transported to food processing enterprises, and then sold throughout Africa and globally, we can create millions of African jobs. On the other hand, China is facing rapid urbanization brought pressure on arable land. China has begun to import agricultural products from the United States and Latin America, Africa could become its next major sources of imports.

Rising consumer class create market demand

The rise of African consumers is another trend emerged in recent years. According to the research unit expects consumer spending in sub-Saharan Africa increased from $ 600 million in 2010 2020 $ 1 trillion. This is precisely meet the needs of China's exports, because China is its high-value goods and services, find new markets.

Chinese enterprises have begun to enter the untapped consumer market. Traveling in Africa, you will see more innovative, lower-priced "Made in China" car, which is working with manufacturers from Japan and Europe to compete. Similarly, China's high-tech electronic products and home appliances brand with South Korea and Japan are also products for the market.

In addition, Chinese companies are also further integration of African countries, they not only established the China-Africa trade network, as well as between African countries, as well as African and global trade network provides. Many companies are also considering manufacturing base moved to Africa, to close to the local market. At present, China has invested in Ethiopia, Nigeria, Zambia, Mauritius and Egypt to establish export zones.

Three regional free trade zones on the African continent: Southern African Development Community, the Common Market for Eastern and Southern Africa and the East African Community, also contributed to this convergence. These regional free trade area in the implementation of trade within the continent also played a key role in the next step, they will merge into a "free trade zone in Africa", from Cape Town to Cairo covering the entire African continent.

The free trade zone will have more than 630 million people, most of them young people, the total GDP of $ 1.2 trillion, is the world's most abundant natural resources, the most uncultivated land areas. With the increasing number of Africa's middle class, as well as improve the political and financial stability, free trade zones in Africa and the world can compete with other economic union, while allowing the African and equality can negotiate free trade agreements with other trade zone. This is similar to the ASEAN economies hope useful gained from economic integration to be implemented in.

Shopping online system gradually grow

   African online shopping giants from China: Amanbo platform, support online retail and wholesale,let the Chinese factories and African importers seamlessly connected, eventually forming a complete one-stop shopping system, they have launched offices and exhibition room in seven African countries (including Kenya, Sierra Leone, Cameroon, Egypt, etc.), successfully created a new route in Africa and China's import and export,nearly 16 years of Africa's import and export trade basis, rich experience in development and operation of the network platform, innovative OSO (online + social + offline) three-dimensional marketing model of their biggest bright spot.

Kenya's largest news website KNCCI official had expressed strong support to Amanbo, Amanbo resolved high cost of procurement, both credit and trading risk-Africa trade and other issues,Amanbo is the main backbone links to face the future of China

   The future, as the globalization of trade promotion. Apparently, China-Africa trade will be more closely, more convenient online shopping will also secure, and Amanbo  platform is undoubtedly an important hub for China-Africa cross-border trade.