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‘Angola‐mode’ Trade Deals and the Awakening of African Lion Economies

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  • Alexis Habiyaremye

Abstract

After decades of continuous flows of mineral exports to rich Western countries and a failed development in Africa, the arrival of China on the African resource market with large infrastructure projects in exchange for access to resources has created completely new growth dynamics for oil‐rich African economies. The Chinese strategy of swapping infrastructure projects for mineral resources, known as an ‘Angola‐mode’ trade arrangement, has brought an army of Chinese infrastructure workers to Africa and contributed to the awakening of fast‐growing African ‘lion economies’. This article examines the role played by Sino‐African resource‐for‐infrastructure swap projects in Africa's new development dynamics. Using panel data of African countries over the period 2001–10, we find that by contributing to easing the infrastructural bottlenecks, Sino‐African trade has played a key role in the fast growth of oil‐rich African countries.

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  • Alexis Habiyaremye, 2013. "‘Angola‐mode’ Trade Deals and the Awakening of African Lion Economies," African Development Review, African Development Bank, vol. 25(4), pages 636-647, December.
    • Handle: RePEc:bla:afrdev:v:25:y:2013:i:4:p:636-647
    DOI: 10.1111/1467-8268.12057
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    2. Tom Ogwang & Frank Vanclay, 2021. "Resource-Financed Infrastructure: Thoughts on Four Chinese-Financed Projects in Uganda," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    3. Xu, Jiajun & Ru, Xinshun & Song, Pengcheng, 2021. "Can a new model of infrastructure financing mitigate credit rationing in poorly governed countries?," Economic Modelling, Elsevier, vol. 95(C), pages 111-120.
    4. Liu, Ailan & Tang, Bo, 2018. "US and China aid to Africa: Impact on the donor-recipient trade relations," China Economic Review, Elsevier, vol. 48(C), pages 46-65.
    5. Godwin Olasehinde‐Williams & Ayodele Folorunso Oshodi, 2021. "Can Africa raise export competitiveness through economic complexity? Evidence from (non)‐parametric panel techniques," African Development Review, African Development Bank, vol. 33(3), pages 426-438, September.
    6. Baumgartner Boris, 2016. "Angola - an Oil Dependant Country in Sub-Saharan Africa," Studia Commercialia Bratislavensia, Sciendo, vol. 9(35), pages 233-242, December.

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