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The Impact of China and India on Sub-Saharan Africa

Opportunities, Challenges and Policies

image of The Impact of China and India on Sub-Saharan Africa
China and India’s demand for oil and other raw materials to fuel their recent economic development has led to significant trading partnerships with Africa, especially sub-Saharan Africa (SSA). China in particular is becoming a major player on the continent, not only in exports but also in terms of investment and aid flows to SSA countries.



Through detailed country-level analysis, this study offers unique contributions to the understanding of the relationship between China, India and SSA. The authors review and assess the economic impacts, identify the challenges involved and provide recommendations to assist policy-makers enhance the ability of SSA countries, individually and regionally, to derive benefits and to take advantage of new opportunities.



For academics, policy-makers and anyone interested in understanding the detailed dynamics that underpin the promises and challenges associated with South–South development.

English

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Summary

China and India have become major trading partners for countries in sub-Saharan Africa (SSA) in the past decade and are becoming important sources of foreign investment (especially China). While SSA provides minerals and oil needed to meet rapidly growing demand for industrial inputs, benefiting exporters, China and India are also increasing their import penetration in the region, with some adverse effects on competing local labour-intensive industries in both domestic markets and third-country export markets. Thus increased trade with China and India represents opportunities and challenges, the balance of which varies across SSA countries. This report provides an assessment of the impacts and puts forward some recommendations.

English

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