The Econometer
Imports (LHS)
Growth Rate (RHS)
40% 30%
20%
10%
0%
-10% -20%
-30%
Feb 2021
220200
180160140
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100806040
20
Growth Rate (RHS)
口边60% 50%lockdownd
在线英汉40% 30% 20%
10%
0%
-10% -20%
-30%
Feb 2021
prizesThriving E-Commerce in China A Model for Africa
online retail is t to becom e larger than offline in China this year. What lessons can be learnt from China s e-com m erce success? How could Africa apply the lessons?
China has the world’s largest number of Internet urs - over 988 m illion as of D ecem ber 2020. Africa still has a long w ay to go, with only 28.2 percent of the continenfs population having access to Internet by the end of 2019. While this reprents just over a quarter of the continent, it is a large increa from the estim ated 2 percent in 2005. China s success in its massive e-commerce space is supported by the fact that most of the country is connected to the Internet, mostly via sm artphones. This, in turn, has affected how the urs
consume products and rvices, with many already using paym ent platform s that are integrated w ith the many e-com - m erce platforms.
While Africa does not have the sam e number of Internet urs as China, its growing number of e-commerce platforms are eing incread u in their home markets and other African countries that they have expanded to. Nigeria has major platforms Jumia and Konga, with the latter receiving millions of dollars in investm ent from Naspers, an early investor in Chine tech giant Tencent. Konga has also integrated its KongaPay system to facilitate electronic payments. Jumia, on the other hand, has successfully launched in other African countries, cementing its position as one of the continent’s
largest players, and has received investm ents from the likes of Mastercard and Pernod Ricard. In 2019, it was listed on the New York Stock Exchange. Takealot has grow n to becom e South Africa’s largest e-com m erce platform and has also received investm ent from the likes of Naspers.
W hile A frica is cu rren tly behind China in terms of num b er of Internet urs, in frastructure and platform s that can really scale to the degree China has, the number of companies currently working in this space is increasing. The growing interest and investment in the companies from abroad will quickly e new players enter the markets, benefiting the continent and e-commerce growth.
E
-c o m m e r c e s a w a n u n p re c e d e n te d boom in 2020 w ith m illions u n d er lockdow n look
ing for alternative w ays to get necessities to their homes, while adhering to strict m easures to cu rb the spread of the virus. China w as already well equipped to deal with this growth in online sales, with major platforms such as Taobao working am lessly with payment platform s W eChat and Alipay to decrea the hassle consumers had during this period of necessary confinement.
A frica has its ow n e -c o m m erce success stories, with rising sta rs Jum ia and Takealot benefitting from incread traffic during lockdown. However, Africa is still in the early stages of e-com m erce adoption, wfuie
China's GDP Growth, %, Q3 2017-Q3 2020
8
China's Monthly Retail Sales, $tln, % y-o-y, December 2017-December 2020China's CPI & PPI, February 2019-February 2021
-------------ppi --------------CPI
108106
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M
A
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J
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A
S
O
N
D
J
F
Note 1: Previous Year =100
China's Monthly Imports, $bln, % y-o-y, February 2018-February 2021
China’s Official PMI，February 2019-February 2021
35
F
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A
M
J
J
A
S
O
N
D
J
F
China’s Monthly Exports ，$bln ，％ y-o-y ， February 2018-February 2021
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April 2021
1/Rwanda February : Twenty-four more companies from China were registered in Rwanda last year, bringing in investments totaling $300 million, according to the government's investment arm. Most Chine investments in the central African nation are in the ctors of construction and real estate, mining, ICT, manufacturing and hospitality, according to the Rwanda Development Board (RDB).RD
B said it is currently encouraging more diversified investments beyond real estate and manufacturing, and more partnerships with local entrepreneurs who have innovative, promising projects.
2/Zambia February: Chine firm Zhongkai International Limited signed an agreement with a Zambian organization, Chifwani Concepts, aimed at commercializing the production of cassava grown for industrial u. Zhongkai International will be buying cassava from farmers in the northern part of the country for u in its production of various products. The agreement will initially benefit over 1,000 mainly smallholder farmers in northern Zambia's Kasama district before venturing into other parts of the country.
3/Zimbabwe February: Zimbabwe is t to sign a citrus export deal with China that will give local farmers direct access to a market worth $500 million annually. The citrus fruits to be exported to China include orange, mandarin, lemon, limes, tangelo and grapefruit. Zimbabwe is currently working on scaling up production in its horticulture ctor to meet a soaring demand for citrus fruits worldwide.China Sets 2021 GDP Growth Target
C
hine Premier Li Keqiang announced the grow th target of above 6 percent for 2021, m ore than twice the growth of the previous year. The target reflects a strong rebound in the Chine economy, one of the few economies in the world to have achieved a grow th in 2020 at 2.3 percent. According to the premier, the target will be driven by deepening reform, innovation and high-quality development.lo过去式
Key Economic Indicators
China’s Consumer Price Index (CPI) reached 99.8 in Febru-cent year on year. This is an increa from January's figure of 99.7, as ineread consum er dem and and transpor- tation costs occur during the Chine Lunar New Year. The Producer Price Index (PPI) shot up by 1.7 percent year on year, with a reading of 101.7, the fastest increa since November 2018. Besides growing export orders, this increa can also be attributed to a surge in dom estic dem and as well as a ri in international crude and com modity prices.
PM I February 2021
China’s Purchasing Manager’s
Index (PMI) slipped further to 50.6 in February 2021 from 51.3 in January 2021. The drop is a result of the Chine Lunar New Year holiday and a sudden increa in COVID-19 cas which led to a slowdown in economic activity. Labour shortages are en to have affected industrial activity and led to weak production. Softer demand caud a drop in imports and exports. However, production and new orders in ctors such as m edicine, electrical machinery and equipment ctors continued to remain strong.
China Holds Two Sessions
Two Sessions, the annual gatherings of the Chine People s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC), were held from March 4 to March 11. This year's meeting is particularly important as it m arks the start of the next five-year plan as well as the centenary year of the Communist Party of China (CPC). The ssions will address issues pertaining to economy, education, health, religion and foreign affairs of China and will asss past government performance while charting out plans for future growth and development through 2035. CA
The ChinAfrica Econometer is produced by Axis Group International, an international trading and advisory firm that solves complex global value chains - by driving *cost-down' in inbound supply chains,
enhancing international revenue growth and managing cross-border complexities.
For more information plea contact: Kobus van der Wath,
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www.chinafrica
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