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Home Opinion

Hunan, the Powerhouse Tasked with China’s Africa Trade Strategy

by SAT Reporter
August 6, 2025
in Opinion
0
Hunan, the Powerhouse Tasked with China’s Africa Trade Strategy

Philip Myburgh, Group Head of Trade at Standard Bank Business and Commercial Banking.

When most people think of Africa-China trade, their minds jump to Beijing, Shanghai or Shenzhen. However, one of the biggest drivers of this relationship is not a coastal megacity, it is a landlocked province you have likely never heard of before.

Hunan Province, in central China, has emerged as the country’s strategic hub for expanding trade with Africa. Tasked by the Chinese central government and the Communist Party of China to lead on this front, Hunan is quietly transforming how African goods reach Chinese markets, and how Chinese businesses expand into Africa. Yet it remains largely absent from mainstream media narratives on Africa-China trade.

This is surprising given Hunan’s economic scale. If it were a country, Hunan’s 2023 gross domestic product (GDP) of approximately US$670 billion would place it around 20th globally, ahead of economies like Switzerland and Poland. In contrast, South Africa’s GDP sits at around US$399 billion, ranking between 33rd and 35th, depending on exchange rates (World Bank, 2024).

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It also carries symbolic weight as the birthplace of Chairman Mao Zedong, the founding father of People’s Republic of China, adding political gravitas to its current mandate.

Hunan’s approach is not just strategic, it is structured. The province has issued a focused 11-point policy to deepen economic ties with Africa. This plan, reaffirmed during the recently held China–Africa Economic and Trade Expo (CAETE), outlines practical initiatives, several of which Standard Bank Business and Commercial Banking (BCB) is actively supporting through a collaboration with the Hunan Department of Commerce and the Industrial and Commercial Bank of China (ICBC).

The 11-point policy includes:

  1. Supporting the Construction and Operation of Inspection and Testing Laboratories for African Exports to China
  2. Supporting the Construction and Operation of Public Overseas Warehouses in Africa
  3. Encouraging the Expansion of Imports from Africa
  4. Encouraging In-Depth Production Capacity Cooperation with Africa
  5. Promoting New Barter Trade with Africa
  6. Establishing the China-Africa Economic and Trade In-Depth Cooperation Service Fund
  7. Increasing Financing and Credit Insurance Support
  8. Enhancing the Influence of the China-Africa Economic and Trade Expo (CAETE) Platform
  9. Establish a long-term trade and cooperation mechanism
  10. Expand legal and arbitration services for China-Africa trade
  11. Support talent and institutional development

CAETE is an initiative the bank has actively supported since its inception in 2019 and recently a Standard Bank delegation, comprising nearly 50 export-focused clients, returned from Hunan, where they participated at the expo. During the visit, the delegation engaged in trade matchmaking sessions and visited the Hongxing Fresh Produce Market, the fourth-largest wholesale market in China. This further strengthened the commercial ties between African exporters and Chinese buyers.

Strategically, Hunan is also known for its agricultural innovation and food systems development, offering valuable insights and partnerships that align seamlessly with Africa’s own growth ambitions in agro-processing, food security, and sustainable farming.

The numbers do not lie, and the trade metrics speak for themselves. In 2024, Hunan’s trade with Africa exceeded 50 billion yuan (approximately US$6.97 billion as at 29 July 2025) for the third consecutive year, the highest among inland Chinese provinces. Africa is now Hunan’s third-largest trading partner.

Trade between Hunan and Africa grew at an average annual rate of 14.3% between 2021 and 2024. In the first four months of 2025 alone, bilateral trade reached 16.66 billion yuan (approximately US$2.31 billion), with 8.65 billion yuan (approximately US$1.20 billion) in exports, a 6.3% increase year-on-year.

Changsha, the provincial capital, accounts for more than half of all Hunan-Africa trade.

South Africa is Hunan’s top African partner, followed by Nigeria, Mozambique, Côte d’Ivoire and Morocco. Trade spans diverse sectors, from agriculture and marine products to electric vehicles (EVs) and high-tech electronics. China’s evolving tariff regime has further accelerated momentum.

In late 2024, China began implementing a zero-tariff policy that initially applied to 98% of taxable products from 33 least-developed African countries. As announced by President Xi Jinping during the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC), this has since evolved to 100% of exports from those countries. Then in June 2025, the Chinese government expanded this policy to include 53 African countries, effectively extending zero-tariff treatment across nearly the entire continent. This marks a bold step in the right direction for exporters and has helped provinces like Hunan emerge as key entry points for African products.

In Hunan alone, imports from eligible African countries under the 33-nation policy rose by 27.1%, reaching 3.68 billion yuan in early 2025. That figure is expected to rise further following the recent policy expansion.

Africa’s exporters, policymakers and financiers must pay close attention to what is unfolding in Hunan. The province is implementing a bold agenda, while also building practical, enabling infrastructure that puts African businesses in touch with real Chinese demand.

Trade with China is changing. It is no longer just about Beijing or Shanghai. The future of Africa-China trade may very well be written in places like Hunan, where ambition meets execution.

This is not just opportunity on paper. It is real. And it is already underway.

Annexure: Overview of the 11-Point Policy – Pilot Zone for China-Africa In-depth Economic and Trade Cooperation

As presented by the Hunan Provincial Government at the 4th China-Africa Economic and Trade Expo (CAETE) that took place from the 12th to 15th June this year, the 11-point policy supports the strategic development of The Pilot Zone for China-Africa In-depth Economic and Trade Cooperation. This initiative, driven by the Hunan government to deepen economic collaboration and facilitate trade innovation between China and Africa. The policy framework outlines practical measures designed to bolster two-way trade, industrial integration, and shared development.

 

By Philip Myburgh, Group Head of Trade: Business and Commercial Banking, Standard Bank Group. The article reflects the author’s opinions and not necessarily those of The Southern African Times.

Tags: Africa China exportsAfrican exports to ChinaBelt and Road AfricaCAETE 2025Changsha Africa tradeChina Africa economic tiesChina trade strategyChina-Africa relationselectric vehicles Africa Chinafood security Africa ChinaHunan Africa tradeHunan economic policyHunan trade hubStandard Bank Africa Chinazero tariff Africa China
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