African firms favor China for business deals

African businesses increasingly prefer trading with China and other Asian partners over North America, citing favorable terms, competitive pricing and responsive suppliers, says a new survey by Standard Bank.

Following the release of the Africa Trade Barometer, Philip Myburgh, head of trade at Standard Bank's business and commercial banking unit, said the findings reflect a shift in the global trade preferences of African companies.

The survey covered more than 2,000 companies in 10 African countries, accounting for about 68 percent of sub-Saharan Africa's GDP. The countries include South Africa, Kenya, Nigeria, Tanzania and Namibia.

According to the report, Asia emerged as the most preferred trading partner for 35 percent of surveyed businesses, while China remained the leading source of inputs.

"The 2025 edition of the barometer shows that more African businesses prefer China and Asia more broadly as trading partners," Myburgh said."That is not a surprise as they cite competitive pricing, product variety and responsiveness from suppliers."

China maintained its position as the leading source of inputs for 67 percent of respondents. Businesses said their preference for Chinese suppliers was driven by product quality, quick response time and the wide range of available goods.

North America ranked as the least preferred trading partner, with only 4 percent of respondents selecting it. Myburgh said this is partly because of high shipping costs and policy changes affecting trade relations.

The expiration of the United States' African Growth and Opportunity Act in September last year, along with new US tariffs ranging from 10 percent to 30 percent, has also contributed to the shift in preferences, he said.

Despite these developments, trade between China and Africa is expected to continue expanding, as African economies rely on Chinese inputs to support industrialization, he said.

China recently announced that, starting May 1, it will fully implement zero tariffs on goods from 53 African countries with which it has diplomatic relations.

Myburgh said the policy could significantly benefit African exporters, but urged governments to address nontariff barriers, such as phytosanitary standards.

Grace Mutembo, high commissioner of Zambia to South Africa, welcomed the zero-tariff policy, describing it as a chance to grow African exports.

"That is a great opportunity for African countries, and for Zambia in particular, because we are looking at expanding our exports," she said.

Zambia has maintained longstanding economic ties with China, she said, including infrastructure cooperation like the refurbishment of the Tanzania-Zambia Railway.

Zambia and other African countries are seeking to increase value addition in sectors such as agriculture and mining before exporting products to China, she added.

Sandile Swana, a former business lecturer at the University of the Witwatersrand in South Africa, said African exporters should focus on production capacity and compliance with market standards to fully benefit from access to the Chinese market.

Exporters must understand the technical requirements, such as health standards, supply chains, delivery timelines, as well as financial and insurance arrangements, he said.

The writer is a freelance journalist for China Daily.