China grants full duty-free access to 33 African countries

Thirty-three African least-developed countries (LDCs) can now export goods duty-free to China under an expanded zero-tariff policy. This initiative grants zero tariffs on 100% of products for all LDCs that maintain diplomatic relations with Beijing. The measure, which took effect last month, fulfils a pledge made by President Xi Jinping at the 9th Forum on China-Africa Cooperation (FOCAC) summit in September.

This is not the first time China has offered such trade benefits. At the second FOCAC meeting in 2003, China announced that over two dozen African LDCs would qualify for duty-free access on 190 products. Over the years, China gradually expanded the range of products eligible for zero-tariff treatment and re-evaluated the list of participating countries. The latest move adds 140 products, covering items such as rice, wheat, sugar, cotton, soya bean oil, cigarettes, cigars, wood products, wool, and paper goods. Some African countries are expected to benefit from the newly added products. For instance, Benin and Tanzania export cotton, Uganda supplies processed cereals, and Djibouti trades in wheat.

While previous zero-tariff policies have driven export growth, the benefits have largely been concentrated in low-value, unprocessed commodities. Between 2005 and 2022, Angola’s duty-free exports to China increased by an annual average of US$21bn, the Democratic Republic of Congo (DRC) by US$4bn, Zambia by US$2bn, and Mauritania by nearly US$1bn. However, these exports predominantly consisted of primary commodities such as minerals and crude oil.

Between 2005 and 2022, African LDCs eligible for zero-tariffs shipped US$578bn worth of products to China. Yet, during the same period, African countries not covered by the scheme exported US$771bn to China, suggesting that factors beyond tariffs play a critical role in trade growth.

To maximise the benefits of China’s zero-tariff policy, African LDCs must develop greater processing and manufacturing capacity to export value-added goods. Without such efforts, the advantages of zero tariffs will remain limited.

Other challenges also hamper Africa’s ability to capitalise on the new measures. Unlike Bangladesh or Vietnam, very few African countries are strategically integrated into Asian production value chains. Structural bottlenecks and weak strategic positioning make it difficult for African exporters to compete in global markets.

Over the past two decades China has cemented its position as sub-Saharan Africa’s largest bilateral trading partner. In 2023 China accounted for 20% of the region’s exports and 16% of its imports in 2023, amounting to a record US$282bn in total trade volume. However, the composition of trade remains skewed. Primary commodities – such as metals, minerals, and fuel – make up about three-fifths of Africa’s exports to China. Meanwhile, manufactured goods dominate imports from China. 

 

References

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'China to open markets to African countries, Xi Jinping says – FOCAC summit as it happened', South China Morning Post, 05 September 2024

‘Analysts skeptical about African impact of China’s zero-tariff offer’, VOA, 14 November 2024

'Infographic: Is China’s new 100% duty-free trade pledge for African LDCs a big deal?', Development Reimagined, 27 November 2024

'African countries applaud China's zero-tariff treatment for least developed countries', Xinhua, 02 December 2024

'China's duty-free access for poor African states kicks in as Biden tours Angola', Reuters, 04 December 2024

'Can China’s zero-tariff market access boost African economic fortunes?', South China Morning Post, 09 December 2024

'Stronger roots, global reach: China securing agricultural and manufacturing pathways with LDCs', Modern Diplomacy, 26 January 2025