China and India's growing trade and investment in Africa holds great potential for African economic growth, a World Bank report has said.
The study found that, led by China and India, Asia now gets 27% of Africa's exports, triple the amount in 1990. At the same time, Asian exports to Africa are now growing 18% per year, faster than any other global region.
Entitled Africa's Silk Road: China and India's New Economic Front, the report recommends the elimination of China's and India's tariffs on African exports.
Written by World Bank Africa Region Economic Advisor Harry Broadman, the study further calls for Africa to reform its economies to better "unleash competitive market forces, strengthen its basic market institutions, and improve governance". It also wants to see African countries improve their infrastructure and customs arrangements.
Taken together it said such changes were "not only in the best interests of Africa's economic development, but in China's and India's own economic fortunes".
[BBC]
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