Hunan, the powerhouse tasked with China’s Africa trade strategy

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Philip Myburgh | Group Head | Trade: Business & Commercial Banking | Standard Bank Group | mail me |


When most people think of Africa-China trade, they often picture cities like 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, located in central China, has emerged as the country’s strategic hub for expanding trade with Africa.

The province is leading implementation efforts

The Chinese central government and the Communist Party of China assigned Hunan this role. As a result, the province is quietly transforming how African goods reach Chinese markets and how Chinese businesses expand into Africa. Yet despite this pivotal role, Hunan remains largely absent from mainstream media narratives on China’s Africa trade strategy.

This limited visibility is surprising, especially 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. That would rank it ahead of economies like Switzerland and Poland. In contrast, South Africa’s GDP stands at around US$399 billion, ranking between 33rd and 35th, depending on the exchange rates (World Bank, 2024).

In addition to its economic size, Hunan holds symbolic weight as the birthplace of Chairman Mao Zedong, the founding father of the People’s Republic of China. This legacy lends political gravitas to the province’s current role in China’s African trade strategy.

Hunan’s approach is not just strategic, it is also structured. The province has issued a focused 11-point policy aimed at deepening economic ties with Africa. This plan, reaffirmed during the recently held China-Africa Economic and Trade Expo (CAETE), outlines several practical initiatives.

Collaborations with Hunan

We are actively supporting many of these through 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 CAETE platform.
  9. Establishing a long-term trade and cooperation mechanism.
  10. Expanding legal and arbitration services for China-Africa trade.
  11. Supporting talent and institutional development.

CAETE is an initiative that we have actively supported since its inception in 2019. Recently, our delegation comprising nearly 50 export-focused clients returned from Hunan. They had participated in the expo, engaged in trade matchmaking sessions, and visited the Hongxing Fresh Produce Market, the fourth-largest wholesale market in China. This visit further strengthened commercial ties between African exporters and Chinese buyers.

The momentum behind China’s Africa trade strategy

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

The numbers underscore the momentum behind China’s Africa trade strategy. In 2024, Hunan’s trade with Africa exceeded 50 billion yuan (approximately US$6.97 billion as of 29 July 2025) for the third consecutive year. This made it 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 just the first four months of 2025, bilateral trade reached 16.66 billion yuan (approximately US$2.31 billion). Of this, exports accounted for 8.65 billion yuan (approximately US$1.20 billion), marking 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. The trade spans diverse sectors, including agriculture, marine products, electric vehicles (EVs) and high-tech electronics.

The evolving tariff regime

China’s evolving tariff regime has further boosted trade momentum. In late 2024, China began implementing a zero-tariff policy. Initially, this applied to 98% of taxable products from 33 least-developed African countries. President Xi Jinping announced this shift during the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC). Since then, the policy has evolved to cover 100% of exports from those countries.

In June 2025, the Chinese government expanded the policy to include 53 African countries. This extension effectively granted zero-tariff treatment to nearly the entire continent. It marks a bold step forward in China’s Africa trade strategy and has helped provinces like Hunan emerge as vital entry points for African products.

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

In conclusion

Africa’s exporters, policymakers, and financiers must pay close attention to what is unfolding in Hunan. The province is implementing a bold agenda. At the same time, it is building practical, enabling infrastructure that connects African businesses to genuine Chinese demand.

Trade with China is changing. It is no longer centred only on 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 an opportunity on paper. It is real. And it is already underway.




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