In Depth

The 2011 edition of this Outlook’s thematic chapter investigates the rise of Africa’s emerging partners. It analyses policy options for African policy-makers to make the best out of Africa’s rapid integration into the global economy. The decade that began at the onset of the new century saw emerging partners swiftly rise from a relatively marginal position to one of fully fledged partners. Africa’s trade volumes with its emerging partners have doubled in nominal value over the decade and now amount to 37% of Africa´s total trade. While China represents Africa’s leading emerging partner, having surpassed the United States in volume, the continent’s trade with its other emerging partners, taken together, is even larger than its trade with China alone. China represents more than a third of Africa’s trade with emerging partners.

The EU and the US remain the most important sources of Foreign Direct Investment (FDI) for African countries. When it comes to Official Development Assistance (ODA), traditional partners also dominate, although the share of emerging partners is growing fast. However, those are only the tip of the iceberg: emerging partners provide Africa with a range of alternative finance modalities that defy FDI and ODA definitions. They tend to adopt a more holistic approach to promoting their exports, supporting direct investment, and offering development assistance.