China International Import Expo opens the door to China’s domestic economy
The Standard Bank Group is currently showcasing products of over 40 African businesses at the China International Import Expo (CIIE), taking place in Shanghai from 5-10 November 2022.
As the largest global import promotion event, the 5th CIIE is exhibiting products from over 100 countries, including 280 of the world’s top 500 enterprises. Over the last four years, the CIIE has successfully introduced more than 1 500 new products, technologies, and services, with an accumulated turnover exceeding USD 270 billion, to the Chinese domestic market.
Since travel to China is currently restricted due to COVID-19, the format of this year’s CIIE includes a physical exhibition of products, with clients participating remotely. As such, the Standard Bank Group has assisted clients from Ghana, Kenya, Mozambique, Namibia, South Africa, Tanzania, Uganda and Zambia in sending their products to Shanghai, unaccompanied.
The physical exhibition of products, supported by the remote participation of African exporters, has been made possible by Standard Bank Group’s Africa-China Export Solution. This year, the bank’s equity partner, the Industrial and Commercial Bank of China (ICBC) as well as Standard Bank Group’s China office, are actively exhibiting and marketing products on behalf of African clients who are unable to attend in person.
Client products and produce on display at CIIE 2022 include avocado, beef, cassava, citrus, chocolate, cocoa, coffee, cosmetics, dried mango, fertilizer, ginger, honey, medicinal plants, non-GM yellow maize, nuts, popcorn, sesame seeds, soyabean, Indian and rooibos tea, and wine.
“2022 represents the broadest array of African produce and products taken to CIIE by the Standard Bank Group to date; attesting to China’s growing demand for African exports,” says Philip Myburgh, Standard Bank Group’s Head of Africa-China and Trade.
Having experienced local marketers present African products to pre-approved Chinese off-takers in Mandarin, while assisting in the negotiation of terms, “provides our African business clients direct access to the heart of China’s domestic economy,” he adds.
Standard Bank Group’s well-established Africa-China Export Solution is adept at connecting export-ready clients from across the bank’s African markets with suitable importers in China, fast-tracking the process by helping clients navigate the entire export and import value chain.
African product and producer introductions made at the 2021 CIIE as well as during Standard Bank Group’s ongoing Africa-China Virtual Export/Import Matchmaking sessions have, to date, delivered several notable relationships and business transactions. These are actively rebalancing the Africa-China trade narrative.
A Kenyan coffee trader, for example, recently secured a USD 1 million contract to supply a Chinese importer. Similarly, a Mozambican macadamia exporter and a Namibian meat producer currently supply clients in China; thanks to the efforts and effectiveness of Standard Bank Group’s Africa-China Export Solution.
Myburgh reports that most of the Standard Bank Group’s African clients soon find that, “demand in China is so high that once contracts are secured, African suppliers are challenged to keep up with orders.” In other words, landing a properly negotiated contract to supply China’s burgeoning domestic market “presents African producers with a unique opportunity – through significantly expanded earnings – to take their businesses to scale as global suppliers,” says Myburgh.
With the world’s largest population and second largest economy, China is also the world’s second largest importer. As the Chinese economy advances from rapid infrastructure development to deepening industrial and commercial growth characterized by improving living standards and increased consumption, the country’s domestic economy presents enormous import potential.
From establishing market access to navigating regulatory requirements, managing quality, preparing products for export, and then transporting goods, clearing customs and managing delivery, Standard Bank Group’s Africa-China Export Solution assists African clients in successfully accessing opportunities in China’s domestic market.
China’s President Xi, speaking at the 2021 Forum on China-Africa Cooperation, detailed his country’s ambition to increase the value of African imports to USD 300 billion by 2024. More generally, over the next five years, China is expected to import products and services valued more than USD 10 trillion. These commitments present an “historic opportunity for enterprises across the world to engage and supply this import need,” says Myburgh.
This year’s CIIE marks a significant milestone in the ever-expanding ability of Standard Bank Group’s Africa-China Export Solution to drive Africa’s growth by building sustainable commercial relationships between African suppliers, and an expanding network of Chinese domestic off-takers.