China says it will remove all tariffs on African exports to boost trade
NAIROBI, June 12 (Reuters) - China will negotiate and sign a new economic pact with Africa that will get rid of all tariffs on the 53 African states it has diplomatic ties with, it said, a move that could benefit middle-income nations.
The Asian economic giant offers duty- and quota-free market access to least developed countries (LDCs), including many in Africa, but the new initiative will level the playing field by also offering middle-income countries similar market access.
"China is ready to... welcome quality products from Africa to the Chinese market", China's foreign ministry said after a meeting of senior Chinese officials with African foreign ministers in Changsha to review implementation of commitments made during a summit in Beijing last September.
In recognition of the significant disadvantages that businesses from LDCs like Tanzania or Mali could face from their more developed counterparts like South Africa once the market is fully opened, China pledged additional measures to support LDCs, including training and marketing promotion.
Beijing's move could help relatively advanced countries, with significant manufacturing bases for value added products, to take advantage of the vast Chinese market, analysts said.
"It enables middle-income countries like Kenya, South Africa, Nigeria, Egypt and Morocco... to be able to now enter the Chinese market duty-free," said Hannah Ryder, founder of Development Reimagined, an Africa-focused consultancy.
Trade between China and Africa has been growing in recent years, but it has been heavily skewed in favour of China, which had a surplus of $62 billion last year.
"Unless we have an equivalent increase of African exports to China, then trade deficits will continue to increase," Ryder said, adding that the initiative announced by Beijing could help to balance trade.
During last year's summit in Beijing, China pledged 360 billion yuan ($50 billion) to African economies over three years in credit lines and investments, marking its return to big-ticket funding deals for the continent after a pandemic-related hiatus.
($1 = 7.1747 Chinese yuan renminbi)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
18 minutes ago
- Reuters
EU to force companies to share details of Russian gas deals, document shows
BRUSSELS, June 13 (Reuters) - European Union companies will be required to disclose details of their Russian gas deals to the EU, under upcoming European Commission proposals to ban Russian gas imports by the end of 2027, an internal Commission document, seen by Reuters, showed. The Commission is preparing to propose legal measures to completely halt the EU's Russian gas imports by the end of 2027, and ban new Russian gas deals by the end of this year. The proposals are due to be published on June 17. An internal European Commission analysis of its upcoming proposals, seen by Reuters, said they will require companies to disclose information including the duration, annual contracted volumes, destination clause and date of conclusion of their Russian gas contracts.
Scotsman
an hour ago
- Scotsman
Collapsed luxury Glastonbury Festival glamping firm debts revealed
From fresh revelations over Glastonbury glamping firm Yurtel's collapse and EDF's takeover of Pod Point, to Octopus investing in African clean tech, Badenoch's business plea, rising jobseeker numbers, and FuelHub's funding push - here are today's top UK business stories. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Luxury Glastonbury glamping firm Yurtel racked up over £2 million in customer debts before collapsing in May. A new report shows some festivalgoers paid up to £16,500 for high-end packages. The Wiltshire-based company has told customers to seek refunds through third parties. Liquidators at Begbies Traynor have confirmed £2.2 million in unsecured claims. Luxury Glastonbury glamping firm Yurtel racked up over £2 million in customer debts before collapsing. | Getty Images EDF takes over Pod Point and Kemi Badenoch's rally cry: More Business in Brief EDF is taking full control of EV charging firm Pod Point in a £10.6 million deal. The move comes after weak EV sales and a falling share price left Pod Point struggling. EDF said the takeover was the only way to secure the company's future. Pod Point runs over 250,000 charging points across the UK. Octopus Energy has acquired Sheffield-based MOPO, a clean tech firm working in Sub-Saharan Africa. MOPO rents out solar-charged batteries, offering a greener alternative to petrol generators. The pay-per-use model helps bring affordable power to underserved communities. Octopus says the deal will accelerate access to clean energy across the region. Kemi Badenoch has urged businesses to 'get on the pitch' and oppose harmful policies. Speaking at a business conference, she said the Conservatives are still their best bet. Her comments came as GDP figures showed the economy shrinking more than expected. She also slammed Labour's planned tax rises, including on family farms. The number of people looking for jobs is rising at the fastest rate in over four years. A report from KPMG and REC says redundancies and fewer vacancies are driving the trend. Permanent job placements fell again in May as firms scaled back recruitment. The data comes from a survey of 400 recruitment agencies across the UK. Meal prep firm FuelHub, used by Man United, Team GB and England Rugby, is seeking new investment. Founded by ex-rugby pro James Laithwaite, it offers healthy, ready-to-go meals for elite athletes. The company has appointed Cortus Advisory to help drive its next phase of B2B growth. Backers already include AJ Bell founder Andy Bell and former director Fergus Lyons.
Powys County Times
an hour ago
- Powys County Times
Oil prices soar after Israel launches strikes on Iran's capital
Oil prices have surged after Israel launched an attack on Iran's nuclear programme with financial markets anxious over retaliatory action. The price of Brent crude jumped nearly 10% higher at one stage before easing back a little to stand 7% higher at 74 US dollars a barrel. London's FTSE 100 Index dropped 0.6%, down 56 points to 8828.6, in early morning trading on Friday after heavy overnight losses on Asian stock markets as the worries spooked investors, with the UK's top tier falling back from a record high set in the previous session. The strikes by Israel on Iran's capital Tehran early on Friday are said to be the most significant attack the country has faced since its 1980s war with Iraq and have led to concerns over an all-out conflict between the two Middle Eastern countries. In Washington, the Trump administration said it had not been involved in the attack and warned Iran not to retaliate against US interests or personnel. It threatens disruption to the supply of crude from the Middle East while some traders flagged concerns it could also impact the flow of liquified natural gas (LNG) if tensions escalate. Rising oil prices could threaten to push up inflation in the UK, possibly impacting the outlook for further interest rate cuts. The Bank of England has been cutting rates but, as inflation strays further from the 2% target, it has less leeway to bring down borrowing costs. Derren Nathan, head of equity research at Hargreaves Lansdown, said: 'It's not just the outlook for Iranian exports that's a concern but also the potential for disruption to shipping in the Persian Gulf's Strait of Hormuz, a key route for about 20% of global oil flows and an even higher proportion of liquified natural gas haulage.' He added: 'The escalation of military action adds another factor to consider for central bankers in an already complex world as they weigh up the inflationary impact of ever-changing tariff rates and a weakening outlook for jobs and growth.' On the London market, oil giants BP and Shell were among the biggest risers on the steep gains in the cost of crude, with shares up 2% for both firms. Aerospace giant BAE Systems was also moving higher as the threat of a full-scale war in the Middle East put defence stocks back in the spotlight, with the stock up 3%. But London-listed airlines were down sharply, hit by a double whammy as rising oil prices spell higher fuel costs for the sector and following the devastating air crash in India. British Airways owner International Consolidated Airlines fell more than 4% and easyJet was just under 4% lower in morning trading. Gold prices also leaped towards another fresh record as investors raced for safe haven assets, which could see it breach the 3,431 US dollars-an-ounce high set earlier this month. Kathleen Brooks, research director at XTB, said: 'If the oil price continues to climb towards 100 US dollars in the coming days, then we could see the interest rate futures market price out rate cuts from the US and Europe, which may add to downside pressure on stocks. 'However, if there is no nuclear escalation, then we think we could see oil prices settle back around 70 US dollars per barrel.'
