Surge in Africa’s China imports prompts calls to tackle trade deficit

African imports of Chinese goods surged 25% year-on-year to $122bn in the first seven months of 2025, according to an analysis of China Customs data by Bloomberg. Nigeria led the continent’s purchases of Chinese products, accounting for 11% of total imports. It was followed by South Africa (10%), Egypt (9%), Liberia (8%), and Algeria (6%).

The spike in Chinese exports to Africa was primarily fuelled by elevated demand for construction machinery, passenger cars, and steel. A sharp increase in orders for solar panels also helped boost the value of Chinese exports to the continent, with imports of Chinese solar panels rising 60% in the 12 months to June 2025.

Although Africa represents only 6% of China’s total exports—roughly half the share of the United States—the value of Chinese shipments to the continent has steadily risen in recent years. Bloomberg projects that Chinese exports to Africa are on track to exceed $200bn for the first time this year.

However, critics charge that China’s trade relationship with Africa is lopsided, pointing to the continent’s significant trade deficit with China. In 2024, Africa spent $178.76bn on Chinese imports but earned $116.79bn from its exports to China, resulting in a $61.93 billion trade deficit.

Narrowing the trade deficit

Peter Kagwanja, president and chief executive of the Africa Policy Institute, tells African Business that narrowing this trade deficit will demand structural adjustments on Africa’s part.

“As long as Africa remains a consumer of over-priced finished goods like electronics and machinery from China and a supplier of under-priced raw materials, this deficit will continue to widen,” he says.

In June this year, China’s President Xi Jinping announced that all African nations that maintain diplomatic ties with Beijing will be accorded “zero-tariff treatment for 100% tariff lines.”

eSwatini is the only country excluded from this deal due to its diplomatic recognition of Taiwan, which China views as a separatist province.

“China’s decision to remove tariffs on imports from 53 African countries is a significant step towards balancing trade in the long term. But Africa also needs to hasten industrialisation and increase value addition to gain fully from China’s zero-tariff policy,” Kagwanja notes.

Cavince Adhere, a Nairobi-based international relations specialist focused on China-Africa relations, tells African Business that trade in services is an underexploited area that could help Africa remedy its trade imbalance with China.

“Trade in services is an area that has been neglected for far too long. Services open a frontier for Africa to modernise its trade relations with China in a manner that is beneficial to both sides,” Adhere says.

He offers the example of how Kenya’s tourism sector has benefited from an uptick in Chinese visitors.

“Last year about 50,000 Chinese tourists visited Kenya. This year the number is projected to hit 100,000. Those are statistics from Kenya’s tourism promotion agency as well as the Chinese Tourism Association. This demonstrates the potential of trade in services,” he notes.

Navigating US tariffs

With US president Donald Trump adopting more hostile trade policies towards Africa, Adhere says that Africa must “diversify its trading relationships” and strengthen its ties with key partners such as China.

“It is not about allowing China more influence in Africa. It is about allowing Africa more autonomy in deciding which trade partners are more responsive.”

Kagwanja concurs.

“The US tariff shocks are forcing Africa to explore ways of deepening trade with the economic powerhouses in the global south, including China,” he argues. “The tariffs might come as a blessing in disguise for Africa to expand internal trade between countries and regions, which has hitherto remained very low.”