Standard Chartered claims trade increase between China and Africa following US tariffs
The London-based financial services firm, Standard Chartered, has announced an expected rise in trade between Africa and China.
According to a senior executive at Standard Chartered Bank in China, the Asian country is expected to increase its imports from African nations.
The trade growth is expected to be the result of the tit-for-tat trade war between the US and China.
Trade between China and Africa has been continuously growing over recent years, but nations such as Kenya and Nigeria are expected benefit as China aims to find a new source of commodities.
“We believe that countries like Kenya and Nigeria will benefit because China will look to import more from Africa; some agricultural products from Kenya, some oil products from Nigeria,” Carmen Ling, Global Head of internationalisation of the Chinese currency renminbi (RMB) at Standard Chartered, informed Reuters.
“Trade flow patterns will change because China will need to look for new trade partners.” Kenya’s trade with China grew 59 per cent in the four years to 2017, to a total of $5.2 billion, Standard Chartered said, boosting the bank’s business from Chinese clients operating in Kenya by “double digits”.
“We see more and more Chinese clients coming to Kenya, we have seen Kenya grow in importance to become a belt and road hub. This is the gateway.”