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AEC 2010 - A Path to Mutual Prosperity? The Trade and Investment between China and Africa
The explosion of commerce between emerging economies, most of them having achieved lower-middle income status, and the countries of sub-Saharan Africa is a striking hallmark of the new trend in South-South trade and investment. As recent as 1990, the trade between high income and Africa countries account for 90 percent of total Africa trade while lower-middle income countries accounted for only 5 percent. Today, the trade between lower-middle income and African countries account for more than a quarter of total Africa trade (Figure 1). If the current trend continues, it is possible that lowermiddle income countries will share equally the Africa market with high income countries. Indeed, this acceleration in exchange among developing countries is one of the most significant features of the current global economy.