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Working Paper 125 - China and Africa: An Emerging Partnership for Development? - An Overview of Issues
China’s phenomenal growth offers an opportunity to boost development in African countries. In 2008, trade between Africa and China reached $100 billion and FDI flows from China to Africa amounted to $5.4 billion. Moreover, China’s loans and concessional assistance financed a wide range of development projects. China also is reaping significant benefits from this relationship, through access to raw materials, expanded markets for exports of manufactures, the establishment of investment relationships which could generate significant profits over time and diplomatic influence. But leadership from African governments, particularly to strengthen domestic policies and governance and to harmonize regional policies so as to improve the continent’s bargaining position with China, are required to ensure that the China-Africa relationship contributes to sustainable growth and poverty reduction. The twin goals of this book are to analyze the economic exchange between China and Africa, and to outline policy recommendations to improve the benefits to both parties.