China’s expanded zero-tariff policy is already helping several African exporters reduce landed costs and explore new markets, while renminbi settlement technology could further reduce transaction friction along the Africa-China trade corridor.
African exporters are using lower import duties and improved market access to diversify into new international markets, according to Standard Bank Group’s Commercial Banking division.
China’s expanded zero-tariff treatment for African countries with which it has diplomatic relations, took effect on May 1, 2026.
Bill Blackie, chief executive of Business and Commercial Banking at Standard Bank Group, said early shipments from South Africa, Kenya, Zimbabwe and Nigeria had already been processed under the framework.
“For many businesses, the emerging opportunity is not only to reduce landed costs, but also to broaden export destinations, improve route-to-market resilience and reduce reliance on a narrow set of trading partners,” Blackie said.
Early shipments show potential savings
Blackie said the first shipments entering China under the framework had generated tariff savings and prompted importers to project significant annual cost reductions across several product categories.
- South African apples: The first shipment to clear Shenzhen Bay Port under the framework benefited from the removal of a previous 10% tariff. The importer estimated savings of approximately RMB20,000 on the shipment and projected annual savings of more than $1.47 million, or approximately R23.74m, based on historical import volumes.
- South African wine: More than 6,000 bottles cleared customs under the framework, generating estimated tariff savings of approximately $3,090, or R49,904, on the shipment. The importer projected annual savings of about $735,300, or R11.88m.
- Kenyan coffee: Coffee that was previously subject to an 8% tariff has begun entering China under the framework. One importer projected annual savings of more than $1.47m, or approximately R23.74m.
- South African cut flowers: A shipment of more than 7,000 stems generated estimated duty savings of more than $1,176, or R18,992.
- Nigerian bovine bone products: A logistics company representing a large importer projected annual savings of nearly $441,180, or approximately R7.13m, following the removal of applicable import duties.
Blackie said Zimbabwean tobacco, Kenyan avocado oil and West African cocoa were also moving under the same regime.
“Cost is the immediate story. The more significant development is what this signals about the reliability of the corridor and the direction in which it is steering supply chains,” he said.
“China-Africa trade reached $348bn (R5.62 trillion) in 2025, Standard Bank’s Africa Trade Barometer found that Asian countries were the preferred trading partners of 35% of businesses surveyed across 10 African markets, up from 24% in 2024. China was cited by 67% of respondents as a source of imported inputs,” added Blackie.
Blackie said that for businesses managing exposure to disruption elsewhere,, a more competitive and predictable route to China could become “a genuine hedge, rather than merely a discount”.
Exporters seek alternative markets
Charl Rudman, international sales manager at Carmién Tea, said the company was seeking alternative export destinations amid uncertainty over market access, shipping-route disruptions and higher tariffs on South African goods in some traditional markets.
“The Chinese market opened up for us exactly when we needed it most,” Rudman said.
He said formal retailers were considering rooibos, while bulk tea buyers were exploring opportunities to package the product locally in China.
Carmién expects China to become one of its most important export markets, potentially rivaling established destinations such as Japan across e-commerce, retail, tea-packaging and hospitality channels, Rudman said.
Renminbi settlement could reduce transaction costs
Blackie said the benefits of lower tariffs could be weakened by the continued use of US dollars for much Africa-China trade.
“For this reason, renminbi settlement capability is now as strategically significant as the tariff policy itself,” Blackie said.
Standard Bank has developed services covering payments, foreign exchange, trade finance and risk management for clients trading with China. These services are supported by a strategic partnership with the Industrial and Commercial Bank of China.
New shipping routes between China and Southern Africa, along with continued investment in rail corridors, could further improve connectivity, Blackie said.
Blackie said renminbi clearing might become available to other financial institutions from April 2027, allowing banks in Nairobi, Lusaka and Lagos to offer renminbi accounts and payments without establishing their own relationships in China.
yogashen.pillay@nationalmg.co.za