UN official says China could help Africa in continental free trade area

By:Xinhua
update:May 24,2018

He noted that relocation of industries to Africa lured by the free trade area will also result in technology transfer to the continent.

The UN official said Africa needs to attract capital inflows not just in one sector but in a wide array of sectors from the extractive, intermediate, value addition sectors, insurance and financial services sectors.

The Kenyan government data indicates that intra-Africa trade stands at approximately 15 percent compared to more than 50 percent for other continents due to trade barriers.

Karingi said Africa's proposal to have a single aviation market could also benefit from Chinese technologies.

"We are aware that China has new technology in the aviation sector which Africa can use to fully realize the benefit of open skies," he said.

He noted that Chinese technology in the aviation sector could open up the space for Africa to move beyond the reliance on western firms that have dominated the industry.

According to the UNECA, Africa's trade imbalance with China and the rest of the world is due to the fact that the continent primarily exports raw materials and imports finished goods.

Karingi said that for Africa to solve its trade deficit it will need to invest in manufacturing, research and development in order to move its trade up the global value chain.

"Africa has no option but to engage in value addition because it has everything that is required," he said.

He said the Chinese market would welcome value added commodities from Africa so long as they contribute to the welfare of its consumers.

The director also noted that intermediate imports from Africa will also find a place in Chinese industries if they are globally competitive.

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