South africa

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Structural Transformation

Is China bad for Africa’s industrialisation?

Is the world’s second largest economy hindering Africa’s ability to follow a manufacturing-led growth path in order to industrialise?

With China already a major contributor to Africa’s infrastructure stock and a key financier of the continent’s development, African policymakers should be actively seeking to attract Chinese factors of production in sectors, such as industry, assembly and agro-processing by drawing Chinese capital, skills and technology, either through joint ventures or partnerships. Chinese partners have already financially supported such ventures. Also, as domestic structural changes in China accelerate—with the country moving away from being a leading exporter to becoming a key consumer and an important source of investment—this could bolster the industrialisation prospects of African countries that recognise this opportunity and position themselves accordingly.

Is the world’s second largest economy hindering Africa’s ability to follow a manufacturing-led growth path
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