News / Africa

China's Manufacturing Slowdown to Hit African Suppliers

TEXT SIZE - +
Peter Heinlein
ADDIS ABABA - A senior World Bank official says a slowdown of manufacturing in China is likely to hurt Africa's economic growth. But, that risk could turn into an opportunity for Africa's emerging economies.

World Bank Vice President for Africa Makhtar Diop says his institution is keenly interested to see the consequences of China's economic slowdown on its commodity suppliers, many of which are in Africa.

News agencies this week have reported that a decline in Chinese manufacturing is adding to concerns about the global ripple effect of Europe's sovereign debt crisis.

Diop, a former Senegalese economy and finance minister, said a downturn in China's manufacturing a decade ago would have been meaningless to Africa. But today it is critically important.

"I don't have the numbers, but it's something new that we need to take into account, that was not, when we were doing the same exercise 10 years ago, we would not look at that aspect because China was not a big trading partner with Africa," said Diop. "Today China is a significant trade partner, and we need to take into account what is happening in that market."

World Bank Country Director for Ethiopia Guang Chen says Europe's debt turmoil and the subsequent Chinese manufacturing slowdown might turn out to be an opportunity for Africa's developing economies. He says manufacturers looking to save money are likely to give poorer countries like Ethiopia another look.

"This is a risk and also an opportunity in the sense that some of these manufacturing companies in China will be under more cost pressure in competing in this environment, and they may have a much stronger urge to diversify into locations that where the input costs may be lower," said Chen. "So this is also an opportunity for Africa, countries like Ethiopia, to perhaps tap into that kind of diversification of products [in the] industrial base."

Makhtar Diop said among his priorities as World Bank vice president for Africa will be promoting greater agricultural productivity across the continent.

The former Senegalese banker told reporters he sees no "silver bullet" (magic solution) to end low productivity in so many African countries. He said a mechanism is needed to allow small farmers to adopt new technologies, as well as a system that insulates them from market shocks and allows them to take risks that lead to greater profitability.

You May Like

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends More

Turkish Law Gives Spy Agency Controversial Powers

Parliament approves legislation to bolster powers of intelligence service, which government claims is necessary to modernize and deal with new threats Turkey faces More

Video Face of American Farmer Changing

Average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Face of American Farmer is Changingi
X
Mike Osborne
April 18, 2014
The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid