KUNLE FALAYI


Portfolio Resume

China dominates global demand for Africa's mineral resources

Despite US' concern about China's increasing influence in Africa, China's position as the continent's largest trading partner, especially as a buyer of the continent's mineral resources continue to outstrip other countries'.

Experts say the recent visit to Africa by the US Secretary of State Antony Blinken and his promise that President Biden would host a US-Africa Leaders Summit is part of effort to curtail China's increasing influence on the continent.

From Ghana to Guinea and Zimbabwe to South Africa, China holds significant influence in mining and importing most of the continent's base metals and mineral resources.

China imports most of the chromium, nickel, iron ore and cobalt produced in Africa with significant share of global import of platinum from Africa.

China's import of Africa's chromium ballooned in the last few years

Global import value of chromium from Zimbabwe and South Africa

30m

68m

196m

1.4b

1.1b

1.1b

1b

1.1b

2.4b

1.8b

France

France

United Kingdom

Russia

Germany

US

China

China’s chromium import of

$941 in 2008

jumped to $2.5bn

a decade later

2016

2002

2008

2010

2012

2014

2020

2004

2006

2018

30m

68m

1.4b

1.1b

1.1b

1b

1.1b

2.4b

1.8b

196m

Russia

United Kingdom

France

France

Germany

US

China

China’s chromium import of

$941 in 2008 jumped to $2.5bn

in a decade

2012

2018

2020

2014

2016

2010

2002

2006

2008

2004

30m

68m

1.1b

2.4b

1.8b

196m

1.1b

1.4b

1b

1.1b

Russia

United Kingdom

France

France

Germany

US

China

China’s chromium import of

$941 in 2008 jumped to $2.5bn

in a decade

2016

2002

2008

2010

2012

2014

2020

2004

2006

2018

Data source: UN Comtrade | Kunle Falayi

Between 2008 and 2012, China and Germany were the main importers of Africa's chromium, a base metal used to manufacture stainless steel and mirror-finish coating on iron. However China gradually eclipsed all other countries in import value. The country imported $2.5 billion dollar worth of Chromium in 2017 alone, up from less than a billion dollars a decade earliers.

Almost all cobalt exports go to China where tech companies manufacture their products

Cobalt export from the main producing countries - DR Congo, South Africa, Zambia, Kenya

22m

1.5b

354m

415m

225m

480m

1.8b

389m

600m

112m

USA

China

2002

2004

2006

2012

2014

2016

2008

2010

2018

2020

354m

22m

225m

480m

1.8b

1.5b

389m

415m

600m

112m

USA

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

22m

225m

480m

1.8b

1.5b

354m

389m

415m

600m

112m

USA

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Data source: UN Comtrade | Kunle Falayi

More than 70 percent of the world's cobalt is produced in the Democratic Republic of Congo, a country dealing with over 70 percent poverty rate and a prolonged armed conflict.

Cobalt which is used in batteries, electric cars manufacturing of mobile phones and computers among others, is expected to see an upsurge in demand as electric car manufacturing expands globally.

China took over most of Africa's nickel import from Finland

Nickel export from Botswana, South Africa and Zimbabwe

170k

159m

650m

77m

98m

138m

921m

347m

530m

308m

Canada

Finland

Russia

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

170k

77m

98m

138m

159m

650m

921m

347m

530m

308m

Canada

Finland

Russia

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

170k

77m

98m

138m

159m

650m

921m

347m

530m

308m

Canada

Finland

Russia

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Data source: UN Comtrade | Kunle Falayi

Like Cobalt, nickel is also vital to manufacturing of stainless steel, mobile devices and EV batteries used in battery electric cars and hybrid electric cars.

Even though Finland is still a major importer, China which currently holds more than 60 percent share of global EV battery market, is taking the lead in nickel import from Africa.

China is a major player in platinum import but behind UK and Germany

Platinum import from mostly South Africa, small portion from Zimbabwe

3.1b

16b

16.5b

16b

5.2b

8.5b

18b

14b

20b

27b

$58b worth

of platinum

imported from

Africa in 2021

Switzerland

Japan

Italy

USA

United Kingdom

Germany

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

3.1b

16b

16.5b

5.2b

8.5b

18b

14b

16b

20b

27b

$58b worth

of platinum

imported from

Africa in 2021

Switzerland

Japan

Italy

United Kingdom

USA

Germany

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

3.1b

16b

16.5b

5.2b

8.5b

18b

14b

16b

20b

27b

$58b worth

of platinum

imported from

Africa in 2021

Switzerland

Japan

Italy

USA

United Kingdom

Germany

China

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Data source: UN Comtrade | Kunle Falayi

South Africa is the world's largest producer of platinum, a pure metal more valuable than gold

Its worth is the reason it is one of the most valuable metals imported from Africa annually. China may not be the highest importer but is certainly one of the largest destinations for Africa's platinum.