3 minutes read
- Cargo ships with supplies from China have not turned up for the second consecutive month at Mombasa port
- China is a major source of imports for East African Countries
Mombasa Port is the gateway for imports for many African countries including Kenya, Uganda, South Sudan, Rwanda, parts of Tanzania, Ethiopia and the Democratic Republic of Congo. Ships carrying Cargo from various parts of the world dock at Mombasa for further distribution to other parts of Africa particularly East Africa. The four big cargo ships with supplies from China have not turned up for the second consecutive month at Mombasa port following the coronavirus outbreak. The consequent scarcity in the supply of commodities is sure to cause a surge in prices of consumer goods in the region.
China is a major source of imports for East African Countries including consumables, electronics, construction materials, vehicle spare parts, clothing, furniture, kitchenware, raw materials and machinery. During the last two months, eight shipments from China have failed to turn up.
According to a study by the UK-based independent think tank, Overseas Development Institute (ODI), Kenya, Tanzania, Rwanda, Burundi and Uganda are among the world’s 97 economies with the highest exposure to a Chinese slowdown. The report released in February estimates, Kenya’s foreign direct investments (FDI) inflows from China at 1.85 per cent of the gross domestic Product (GDP) and exports at 13.18 per cent of GDP. Personal remittances from China are estimated at 3.09 per cent of GDP. Tourism receipts from China as a percentage of Kenya’s total exports are estimated at 14.98 per cent. In January, Kenya’s exports to china declined by 11.3 per cent compared with the same period last year, largely due to fall in sales of Titanium and Soda ash.
Other African countries that are bound to be disrupted due to coronavirus include Angola, Congo, Sierra Leone, Lesotho and Zambia. China accounts for almost 60 per cent of Angola’s total exports and 10 per cent of tourists.
China’s trade with Africa stood at $208 billion, in 2019 with exports estimated at $113.2 billion. The report, projects sub-Saharan Africa losses in exports of goods at $4 billion and $600 million in tourism. Some African countries have started looking at alternate sources for imports. Rwanda’s Private Sector Federation has identified countries such as Turkey, India, Dubai and Egypt as alternative sources of goods imported from China.
The ODI report also points out that African airlines will also be hit by the fall in air travel between China and Africa. Many African carriers including RwandAir, Kenya Airways, Royal Air Maroc, Egypt Air, Air Madagascar and Air Mauritius have cancelled flights to China. Kenya Airways has reported a loss of more than $8 million in revenues after the loss-making national carrier suspended all flights to and from Guangzhou, China, with effect from January 31.
