The good news for 2014 was the continued recovery of the global economy, as forecast by the International Monetary Fund (IMF). The 3.3 percent growth rate was slightly up on 2013. Among developed economies, there were resurgences in the United States and United Kingdom while the Eurozone was plagued by slow growth and low inflation. Japan continued to struggle with recession.

The growth rate of emerging economies slowed down during the past year. While China's economy continued to grow, it did so at an estimated rate of 7 percent. Africa, however, remained a star performer with Sub-Saharan Africa's economy increasing by an expected 5.1 percent.

Against the backdrop of the world economy's subdued performance and the threat of the Ebola virus spreading, Sino-African trade ties remained unwaveringly close, contributing substantially to the growth of both partners.

Bilateral trade breakthroughs

According to China's General Administration of Customs, bilateral trade between China and Africa amounted to $180.5 billion in the first 10 months of 2014, up 4.4 percent year on year. It was higher than the overall growth rate of China's foreign trade in the same period. With this trend, the annual total is expected to surpass $220 billion. From January to October 2014, China's exports to Africa increased by 12.8 percent year on year to $85.9 billion. Bilateral trade with Mozambique, Ethiopia and Nigeria dramatically grew by 116.2, 52.8 and 37.8 percent respectively. This is a major achievement, considering that the world economy experienced a lethargic lack of momentum.

By contrast, China's imports from Africa declined by 2.2 percent to $94.6 billion. The prime reason for this was the Ebola pandemic in West Africa, China's shrinking demand for raw materials, and the falling price of major international commodities. However, the contraction doesn't jeopardize the overall rising trend in China-Africa economic cooperation. Trade with China was vital to the economic rise of Sub-Saharan African nations, whose exports to China in 2013 accounted for 6.6 percent of their GDP. China had an $8.7-billion trade deficit with Africa in the first 10 months of 2014, whereas it enjoyed a trade surplus with the United States and partners in the European and Asia-Pacific regions. This further illustrates that China attached importance to maximizing African interests in trade and economic cooperation. 

New opportunities

In 2014, China proposed a series of new initiatives to promote cooperation with developing nations. They include establishing a 21st Century Maritime Silk Road, the BRICS (Brazil, Russia, India, China and South Africa) New Development Bank (NDB), and Africa Growing Together Fund (AGTF). These mark China's exploring new ways to promote Sino-African economic cooperation.

Much of China's expansion in financing is being made via multilateral platforms. Previously, most of China's investment projects in Africa counted on the China Development Bank for financial support. In May 2014, the People's Bank of China and African Development Bank founded the $2-billion co-financing fund known as AGTF. It is open to investors not just from China and Africa, but around the world who are committed to the progress of African countries. On his visit to the continent the same month, Chinese Premier Li Keqiang pledged to increase China's credit line to African countries by $10 billion, bringing the total to $30 billion for 2013-15. The NDB founded in July 2014 is a multilateral financial institution established by developing nations, and will provide low-interest loans to emerging economies, including those in Africa.

Of significant importance is the Maritime Silk Road initiative, which is poised to bring new opportunities to Africa. With its southern end in Kenya, the road will connect six African countries in East and North Africa with Europe through the Gulf of Aden, Red Sea and the Suez Canal, and will radiate economic influence on the entire continent. In the past, China's investments in Africa were mostly made in specific countries and separate projects. This scenario will be changed by the initiative as it will make trans-regional cooperation possible by fostering trade, infrastructure construction and industrial transfer in the countries and regions along the road.

Specifically, the initiative will create three kinds of investment aspects. Africa will be a priority in China's foreign aid. According to China's Foreign Aid (2014), a white paper issued by China's State Council Information Office, from 2010 to 2012, China allocated 89.34 billion yuan ($14.41 billion) for foreign assistance, 51.8 percent of which was received by African countries. The figure is expected to increase in the next few years. Second, African countries' development capacity will be strengthened with new investment strategies. When investing in Africa, China seeks to fund projects which would be executed by the local governments based on their conditions and needs. Projects that could cultivate talented personnel for Africa are preferred. As the Maritime Silk Road initiative aims to enhance traffic connectivity and people-to-people exchanges, transportation and communication infrastructure in Africa would be improved. With better infrastructure, the continent will attract more foreign investment. 

2015 outlook

Security threats like terrorism and Ebola will continue to pose severe challenges to political stability and economic development in Africa in 2015. China and Africa should strengthen bilateral cooperation to cope with these challenges in a united front.

Trade with China will remain a major momentum for the economic growth in Africa. And a rising African economy would lead to increasingly greater demands for Chinese products and services. The IMF predicts Sub-Saharan Africa's economy will grow by 5.8 percent in 2015, one of the fastest rates worldwide. Stimulated by regional integration and the Maritime Silk Road initiative, Sino-African trade is expected to hit a record high of $230 billion in 2015.

China's investments in Africa are expected to rocket with increasingly greater demand for infrastructure construction in Africa and Chinese businesses' desire to go global. Poor infrastructure is the biggest bottleneck for the African economy. The governments on the continent have realized the problem and are welcoming foreign investment in infrastructure and making efforts to create a more liberal business environment, presenting unique opportunities for foreign investors. In 2007, China invested $4.5 billion in infrastructure construction in Sub-Saharan African countries. The figure tripled to $13.5 billion in 2012. In 2015, it is expected to be the sector with the brightest prospects for China-Africa cooperation.

(The author is a researcher on African studies with China Institutes of Contemporary International Relations)