Challenges of and opportunities from the commodity price slump

The Commodity price slump since 2014 continues to impact China-Africa economic relations, reducing Chinese FDI and loans to Africa, as well as shrinking African export values to China. Diversification can be observed in both trade and loan financing. Agricultural products and manufactured goods from Africa are playing an increasingly larger role in trade, while Chinese loans are moving beyond infrastructure projects to finance more industrial projects. The Commodity price slump may impede African governments from borrowing more Chinese loans despite the sweeping FOCAC pledges made in December 2015.