Vol. 42, No. 2 (Summer 2017)
Enter China: Towards Africa’s Growth and Development
Bertha Z. Osei-Hwedie and Napoleon Kurantin
Professor, Ghana Institute of Management and Public Administration
International trade has offered Africa an opportunity to promote growth and development. Bilateral trade with China has been the biggest source of economic progress since China became the major trading partner for the continent. The article analyzes the nature of trade, especially, the exports of large quantities of raw materials to China, with favourable prices, that have contributed to high growth rates and rejuvenated African economies. However, large volumes of trade with China and high growth rates have not culminated in significant development of Africa in terms of poverty reduction and industrial development. This is because growth and trade based on raw materials do not benefit the poor much as demonstrated by copper and oil exporters; asymmetrical trade prevents the fostering of development; growth without diversification does not contribute to poverty reduction due to little employment creation; lack of leaders’ commitment prevents meaningful development; and high population growth impedes development. Thus, China-Africa trade in the context of weak political leadership and poor governance, also contribute to minimal progress with poverty reduction and industrial development.